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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1530 Engrossed in House (EH)]

104th CONGRESS

  1st Session

                               H. R. 1530

_______________________________________________________________________

                                 AN ACT

     To authorize appropriations for fiscal year 1996 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.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
104th CONGRESS
  1st Session
                                H. R. 1530

_______________________________________________________________________

                                 AN ACT

 
     To authorize appropriations for fiscal year 1996 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 1996''.

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. Chemical demilitarization program.
                       Subtitle B--Army Programs

Sec. 111. Procurement of helicopters.
Sec. 112. Repeal of requirements for armored vehicle upgrades.
                       Subtitle C--Navy Programs

Sec. 131. Repeal of prohibition on backfit of Trident submarines.
Sec. 132. Repeal of limitation on total cost for SSN-21 and SSN-22 
                            Seawolf submarines.
Sec. 133. Competition required for selection of shipyards for 
                            construction of vessels for next generation 
                            attack submarine program.
Sec. 134. Sonobuoy programs.
                     Subtitle D--Air Force Programs

Sec. 141. Repeal of limitations.
             Subtitle E--Chemical Demilitarization Program

Sec. 151. Repeal of requirement to proceed expeditiously with 
                            development of chemical demilitarization 
                            cryofracture facility at Tooele Army Depot, 
                            Utah.
Sec. 152. Sense of Congress regarding cost growth in program for 
                            destruction of the existing stockpile of 
                            lethal chemical agents and munitions.
Sec. 153. Assistance for chemical weapons stockpile communities 
                            affected by base closure.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic research and exploratory development.
Sec. 203. Modifications to Strategic Environmental Research and 
                            Development Program.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Maneuver variant unmanned aerial vehicle.
Sec. 213. Tactical manned reconnaissance.
Sec. 214. Advanced lithography program.
Sec. 215. Enhanced fiber optic guided missile system.
Sec. 216. Joint Advanced Strike Technology (JAST) program.
Sec. 217. Development of laser program.
           Subtitle C--Ballistic Missile Defense Act of 1995

Sec. 231. Short title.
Sec. 232. Ballistic missile defense policy of the United States.
Sec. 233. Implementation of policy.
Sec. 234. Follow-on technologies research and development.
Sec. 235. Policy on compliance with the ABM Treaty.
Sec. 236. Ballistic missile defense program accountability.
Sec. 237. ABM Treaty defined.
Sec. 238. Repeal of Missile Defense Act of 1991.
         Subtitle D--Other Ballistic Missile Defense Provisions

Sec. 241. Ballistic missile defense funding for fiscal year 1996.
Sec. 242. Policy concerning ballistic missile defense.
Sec. 243. Testing of theater missile defense interceptors.
Sec. 244. Repeal of missile defense provisions.
                       Subtitle E--Other Matters

Sec. 251. Allocation of funds for medical countermeasures against 
                            biowarfare threats.
Sec. 252. Analysis of consolidation of basic research accounts of 
                            military departments.
Sec. 253. Change in reporting period from calendar year to fiscal year 
                            for annual report on certain contracts to 
                            colleges and universities.
Sec. 254. Modification to University Research Initiative Support 
                            Program.
Sec. 255. Advanced Field Artillery System (Crusader).
Sec. 256. Review of C<SUP>4I by National Research Council.
Sec. 257. Five-year plan for federally funded research and development 
                            centers (FFRDCs).
Sec. 258. Manufacturing technology program.
Sec. 259. Five-year plan for consolidation of defense laboratories and 
                            test and evaluation centers.
Sec. 260. Aeronautical research and test capabilities assessment.
Sec. 261. Limitation on T-38 Avionics Upgrade Program.
Sec. 262. Cross reference to congressional defense policy concerning 
                            national technology and industrial base, 
                            reinvestment, and conversion in operation 
                            of defense research and development 
                            programs.
Sec. 263. Demilitarization of conventional munitions, rockets, and 
                            explosives.
Sec. 264. Fiber optic acoustic sensor system.
Sec. 265. Joint targeting support system testbed.
                  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. Office of Economic Adjustment.
              Subtitle B--Defense Business Operations Fund

Sec. 311. Codification of Defense Business Operations Fund.
Sec. 312. Retention of centralized management of Defense Business 
                            Operations Fund and prohibition on further 
                            expansion of Fund.
Sec. 313. Charges for goods and services provided through Defense 
                            Business Operations Fund and termination of 
                            advance billing practices.
Sec. 314. Annual proposed budget for operation of Defense Business 
                            Operations Fund.
Sec. 315. Reduction in requests for transportation funded through 
                            Defense Business Operations Fund.
                  Subtitle C--Environmental Provisions

Sec. 321. Clarification of services and property that may be exchanged 
                            to benefit the historical collection of the 
                            Armed Forces.
Sec. 322. Addition of amounts creditable to Defense Environmental 
                            Restoration Account.
Sec. 323. Repeal of certain environmental education programs.
Sec. 324. Repeal of limitation on obligation of amounts transferred 
                            from environmental restoration transfer 
                            account.
Sec. 325. Elimination of authority to transfer amounts for 
                            toxicological profiles.
Sec. 326. Sense of Congress on use of Defense Environmental Restoration 
                            Account.
Subtitle D--Civilian Employees and Nonappropriated Fund Instrumentality 
                               Employees

Sec. 331. Management of Department of Defense civilian personnel.
Sec. 332. Management of depot employees.
Sec. 333. Conversion to performance by civilian employees of active-
                            duty positions.
Sec. 334. Personnel actions involving employees of nonappropriated fund 
                            instrumentalities.
Sec. 335. Limitation on provision of overseas living quarters 
                            allowances for nonappropriated fund 
                            instrumentality employees.
Sec. 336. Overtime exemption for nonappropriated fund employees.
Sec. 337. Continued health insurance coverage.
Sec. 338. Creditability of certain NAFI service under the Federal 
                            Employees' Retirement System.
  Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Operation of commissary store system.
Sec. 342. Pricing policies for commissary store merchandise.
Sec. 343. Limited release of commissary stores sales information to 
                            manufacturers, distributors, and other 
                            vendors doing business with Defense 
                            Commissary Agency.
Sec. 344. Economical distribution of distilled spirits by 
                            nonappropriated fund instrumentalities.
Sec. 345. Transportation by commissaries and exchanges to overseas 
                            locations.
Sec. 346. Demonstration program for uniform funding of morale, welfare, 
                            and recreation activities at certain 
                            military installations.
Sec. 347. Continued operation of base exchange mart at Fort Worth Naval 
                            Air Station and authority to expand base 
                            exchange mart program.
Sec. 348. Uniform deferred payments program for military exchanges.
Sec. 349. Availability of funds to offset expenses incurred by Army and 
                            Air Force Exchange Service on account of 
                            troop reductions in Europe.
Sec. 350. Study regarding improving efficiencies in operation of 
                            military exchanges and other morale, 
                            welfare, and recreation activities and 
                            commissary stores.
Sec. 351. Extension of deadline for conversion of Navy ships' stores to 
                            operation as nonappropriated fund 
                            instrumentalities.
                      Subtitle F--Contracting Out

Sec. 357. Procurement of electricity from most economical source.
Sec. 358. Procurement of certain commodities from most economical 
                            source.
Sec. 359. Commercial procurement of printing and duplication services.
Sec. 360. Direct delivery of assorted consumable inventory items of 
                            Department of Defense.
Sec. 361. Private operation of functions of Defense Reutilization and 
                            Marketing Service.
Sec. 362. Private operation of payroll functions of Department of 
                            Defense for payment of civilian employees.
Sec. 363. Demonstration program to identify underdeductions and 
                            overpayments made to vendors.
Sec. 364. Pilot program to evaluate potential for private operation of 
                            overseas dependents' schools.
Sec. 365. Pilot program for evaluation of improved defense travel 
                            processing prototypes.
Sec. 366. Pilot program for private operation of consolidated 
                            information technology functions of 
                            Department of Defense.
Sec. 367. Increased reliance on the private sector.
Sec. 368. Pilot program for private operation of payroll and accounting 
                            functions of nonappropriated fund 
                            instrumentalities.
        Subtitle G--Miscellaneous Reviews, Studies, and Reports

Sec. 371. Quarterly readiness reports.
Sec. 372. Reports required regarding expenditures for emergency and 
                            extraordinary expenses.
Sec. 373. Restatement of requirement for semiannual reports to Congress 
                            on transfers from high-priority readiness 
                            appropriations.
Sec. 374. Modification of notification requirement regarding use of 
                            core logistics functions waiver.
Sec. 375. Limitation on development or modernization of automated 
                            information systems of Department of 
                            Defense pending report.
Sec. 376. Report regarding reduction of costs associated with contract 
                            management oversight.
                       Subtitle H--Other Matters

Sec. 381. Prohibition on capital lease for Defense Business Management 
                            University.
Sec. 382. Authority of Inspector General over investigations of 
                            procurement fraud.
Sec. 383. Provision of equipment and facilities to assist in emergency 
                            response actions.
Sec. 384. Conversion of the Civilian Marksmanship Program to a 
                            federally chartered nonprofit corporation.
Sec. 385. Personnel services and logistical support for certain 
                            activities held on military installations.
Sec. 386. Retention of monetary awards.
Sec. 387. Civil Reserve Air Fleet.
Sec. 388. Permanent authority regarding use of proceeds from sale of 
                            lost, abandoned, and unclaimed personal 
                            property at certain installations.
Sec. 389. Transfer of excess personal property to support law 
                            enforcement activities.
Sec. 390. Development and implementation of innovative processes to 
                            improve operation and maintenance.
Sec. 391. Review of use of Defense Logistics Agency to manage inventory 
                            control points.
Sec. 392. Sale of 50 percent of current war reserve fuel stocks.
Sec. 393. Military clothing sales stores, replacement sales.
Sec. 394. Assistance to local educational agencies that benefit 
                            dependents of members of the Armed Forces 
                            and Department of Defense civilian 
                            employees.
Sec. 395. Core logistics capabilities of the Department of Defense.
Sec. 396. Expansion of Southwest Border States Anti-Drug Information 
                            System.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Temporary variations in DOPMA authorized end strength 
                            limitations for active duty Navy and Air 
                            Force officers in certain grades.
                       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. Counting of certain active component personnel assigned in 
                            support of Reserve component training.
              Subtitle C--Military Training Student Loads

Sec. 421. Authorization of training student loads.
              Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.
Sec. 432. Authorization for increase in active-duty end strengths.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Authority to extend transition period for officers selected 
                            for early retirement.
           Subtitle B--Matters Relating to Reserve Components

Sec. 511. Military technician full-time support program for Army and 
                            Air Force reserve components.
Sec. 512. Military leave for military reserve technicians for certain 
                            duty overseas.
Sec. 513. Revisions to Army Guard combat reform initiative to include 
                            Army reserve under certain provisions and 
                            make certain revisions.
Sec. 514. ROTC scholarships for the National Guard.
Sec. 515. Report on feasibility of providing education benefits 
                            protection insurance for service academy 
                            and ROTC scholarship students who become 
                            medically unable to serve.
Sec. 516. Active duty officers detailed to ROTC duty at senior military 
                            colleges to serve as Commandant and 
                            Assistant Commandant of Cadets and as 
                            tactical officers.
Sec. 517. Mobilization income insurance program for members of Ready 
                            Reserve.
Sec. 518. Delay in reorganization of Army ROTC regional headquarters 
                            structure.
Sec. 519. Active duty associaate unit responsibility.
              Subtitle C--Matters Relating to Force Levels

Sec. 521. Floor on end strengths.
Sec. 522. Army officer manning levels.
Sec. 523. Comptroller General review of proposed Army end strength 
                            allocations.
Sec. 524. Manning status of highly deployable support units.
Sec. 525. Sense of Congress concerning personnel tempo rates.
     Subtitle D--Amendments to the Uniform Code of Military Justice

Sec. 541. References to Uniform Code of Military Justice.
Sec. 542. Forfeiture of pay and allowances during confinement by 
                            sentence of court-martial.
Sec. 543. Refusal to testify before court-martial.
Sec. 544. Flight from apprehension.
Sec. 545. Carnal knowledge.
Sec. 546. Time after accession for initial instruction in the Uniform 
                            Code of Military Justice.
Sec. 547. Persons who may appear before the United States Court of 
                            Appeals for the Armed Forces.
Sec. 548. Discretionary representation by Government appellate defense 
                            counsel in petitioning Supreme Court for 
                            writ of certiorari.
Sec. 549. Repeal of termination of authority for Chief Justice of 
                            United States to designate Article III 
                            judges for temporary service on Court of 
                            Appeals for the Armed Forces.
Sec. 550. Technical amendment.
                       Subtitle E--Other Matters

Sec. 551. Equalization of accrual of service credit for officers and 
                            enlisted members.
Sec. 552. Extension of expiring personnel authorities.
Sec. 553. Increase in educational assistance allowance with respect to 
                            skills or specialties for which there is a 
                            critical shortage of personnel.
Sec. 554. Amendments to education loan repayment programs.
Sec. 555. Recognition by States of living wills of members, certain 
                            former members, and their dependents.
Sec. 556. Transitional compensation for dependents of members of the 
                            Armed Forces separated for dependent abuse.
Sec. 557. Army ranger training.
Sec. 558. Repeal of certain civil-military programs.
Sec. 559. Eligibility for Armed Forces Expeditionary Medal based upon 
                            service in El Salvador.
Sec. 560. Revision and codification of Military Family Act and Military 
                            Child Care Act.
Sec. 561. Discharge of members of the Armed Forces who have the HIV-1 
                            virus.
Sec. 562. Authority to appoint Brigadier General Charles E. Yeager, 
                            United States Air Forces (retired) to the 
                            grade of major general on the retired list.
Sec. 563. Determination of whereabouts and status of missing persons.
Sec. 564. Nominations to service academies from Commonwealth of the 
                            Northern Marianas Islands.
Sec. 565. Report on the consistency of reporting of fingerprint cards 
                            and final disposition forms to the Federal 
                            Bureau of Investigation.
Sec. 566. Separation benefits during force reduction for officers of 
                            commissioned corps of National Oceanic and 
                            Atmospheric Administration.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1996.
Sec. 602. Limitation on basic allowance for subsistence for members 
                            without dependents residing in Government 
                            quarters.
Sec. 603. Authorization of payment of basic allowance for quarters to 
                            additional members assigned to sea duty.
Sec. 604. Establishment of minimum amounts of variable housing 
                            allowance for high housing cost areas and 
                            additional limitation on reduction of 
                            allowance for certain members.
Sec. 605. Clarification of limitation on receipt of family separation 
                            allowance.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonuses for reserve forces.
Sec. 612. Extension of certain bonuses and special pay for nurse 
                            officer candidates, registered nurses, and 
                            nurse anesthetists.
Sec. 613. Extension of authority relating to payment of other bonuses 
                            and special pays.
Sec. 614. Codification and extension of special pay for critically 
                            short wartime health specialists in the 
                            Selected Reserves.
Sec. 615. Change in eligibility requirements for continuous monthly 
                            aviation incentive pay.
Sec. 616. Continuous entitlement to career sea pay for crewmembers of 
                            ships designated as tenders.
Sec. 617. Increase in maximum rate of special duty assignment pay for 
                            enlisted members serving as recruiters.
            Subtitle C--Travel and Transportation Allowances

Sec. 621. Authorization of return to United States of formerly 
                            dependent children of members.
Sec. 622. Authorization of dislocation allowance for moves in 
                            connection with base realignments and 
                            closures.
.Sec. 623. Repeal of prohibition on payment of lodging expenses when 
                            adequate Government quarters are available.
                       Subtitle D--Other Matters

Sec. 631. Elimination of unnecessary annual reporting requirements 
                            regarding compensation matters.
Sec. 632. Study regarding joint process for determining location of 
                            recruiting stations.
Sec. 633. Elimination of disparity between effective dates for military 
                            and civilian retiree cost-of-living 
                            adjustments for fiscal year 1996.
                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

Sec. 701. Modification of requirements regarding routine physical 
                            examinations and immunizations under 
                            CHAMPUS.
Sec. 702. Correction of inequities in medical and dental care and death 
                            and disability benefits for certain 
                            Reservists.
Sec. 703. Medical and dental care for members of the Selected Reserve.
                      Subtitle B--TRICARE Program

Sec. 711. Priority use of military treatment facilities for persons 
                            enrolled in managed care initiatives.
Sec. 712. Staggered payment of enrollment fees for TRICARE.
Sec. 713. Requirement of budget neutrality for TRICARE to be based on 
                            entire program.
Sec. 714. Training in health care management and administration for 
                            TRICARE lead agents.
Sec. 715. Evaluation and report on TRICARE effectiveness.
          Subtitle C--Uniformed Services Treatment Facilities

Sec. 721. Limitation on expenditures to support Uniformed Services 
                            Treatment Facilities and limitation on 
                            number of participants in USTF managed care 
                            plans.
Sec. 722. Application of Federal acquisition regulation to 
                            participation agreements with Uniformed 
                            Services Treatment Facilities.
Sec. 723. Development of plan for integrating Uniformed Services 
                            Treatment Facilities in managed care 
                            programs of Department of Defense.
Sec. 724. Equitable implementation of uniform cost sharing requirements 
                            for Uniformed Services Treatment 
                            Facilities.
   Subtitle D--Other Changes to Existing Laws Regarding Health Care 
                               Management

Sec. 731. Maximum allowable payments to individual health-care 
                            providers under CHAMPUS.
Sec. 732. Expansion of existing restriction on use of defense funds for 
                            abortions.
Sec. 733. Identification of third-party payer situations.
Sec. 734. Redesignation of Military Health Care Account as Defense 
                            Health Program Account and two-year 
                            availability of certain Account funds.
Sec. 735. Expansion of financial assistance program for health-care 
                            professionals in reserve components to 
                            include dental specialties.
Sec. 736. Elimination of unnecessary annual reporting requirements 
                            regarding military health care.
                       Subtitle E--Other Matters

Sec. 741. Termination of program to train and utilize military 
                            psychologists to prescribe psychotropic 
                            medications.
Sec. 742. Waiver of collection of payments due from certain persons 
                            unaware of loss of CHAMPUS eligibility.
Sec. 743. Notification of certain CHAMPUS covered beneficiaries of loss 
                            of CHAMPUS eligibility.
Sec. 744. Demonstration program to train military medical personnel in 
                            civilian shock trauma units.
Sec. 745. Study regarding Department of Defense efforts to determine 
                            appropriate force levels of wartime medical 
                            personnel.
Sec. 746. Study regarding expanded mental health services for certain 
                            covered beneficiaries.
Sec. 747. Report on improved access to military health care for covered 
                            beneficiaries entitled to Medicare.
Sec. 748. Sense of Congress on continuity of health care services for 
                            covered beneficiaries adversely affected by 
                            closures of military medical treatment 
                            facilities.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

                        Subtitle A--Competition

Sec. 801. Competition provisions.
Sec. 802. Preaward debriefings.
Sec. 803. Contract types.
                      Subtitle B--Commercial Items

Sec. 811. Commercial item exception to requirement for cost or pricing 
                            data and information limitations.
Sec. 812. Application of simplified procedures to commercial items.
Sec. 813. Amendment to definition of commercial items.
Sec. 814. Inapplicability of cost accounting standards to contracts and 
                            subcontracts for commercial items.
                Subtitle C--Additional Reform Provisions

Sec. 821. Repeals of certain procurement provisions.
Sec. 822. Fees for certain testing services.
Sec. 823. Testing of defense acquisition programs.
Sec. 824. Coordination and communication of defense research 
                            activities.
Sec. 825. Addition of certain items to domestic source limitation.
Sec. 826. Revisions to procurement notice provisions.
Sec. 827. Encouragement of use of leasing authority.
Sec. 828. Government reliance on the private sector.
Sec. 829. Elimination of certain certification requirements.
Sec. 830. Amendment to commencement and expiration of authority to 
                            conduct certain tests of procurement 
                            procedures.
Sec. 831. Procurement integrity.
Sec. 832. Further acquisition streamlining provisions.
Sec. 833. Justification of major defense acquisition programs not 
                            meeting goals.
Sec. 834. Enhanced performance incentives for acquisition workforce.
Sec. 835. Results oriented acquisition program cycle.
Sec. 836. Rapid contracting goal.
Sec. 837. Encouragement of multiyear contracting.
Sec. 838. Contractor share of gains and losses from cost, schedule, and 
                            performance experience.
Sec. 839. Phase funding of defense acquisition programs.
Sec. 840. Improved Department of Defense contract payment procedures.
Sec. 841. Consideration of past performance in assignment to 
                            acquisition positions.
Sec. 842. Value engineering for Federal agencies.
Sec. 843. Acquisition workforce.
Sec. 844. Cost reimbursement rules for indirect costs attributable to 
                            private sector work of defense contractors.
             Subtitle D--Streamlining of Dispute Resolution
                       Part I--General Provisions
Sec. 850. Definitions.
 Part II--Establishment of the United States Board of Contract Appeals
Sec. 851. Establishment.
Sec. 852. Membership.
Sec. 853. Chairman.
Sec. 854. Rulemaking authority.
Sec. 855. Litigation authority.
Sec. 856. Seal of Board.
Sec. 857. Authorization of appropriations.
     Part III--Functions of United States Board of Contract Appeals
Sec. 861. Alternative dispute resolution services.
Sec. 862. Alternative dispute resolution of disputes and protests 
                            submitted to Board.
Sec. 863. Contract disputes.
Sec. 864. Protests.
Sec. 865. Applicability to contracts for commercial items.
 Part IV--Repeal of Other Statutes Authorizing Administrative Protests
Sec. 871. Repeals.
 Part V--Transfers and Transitional, Savings, and Conforming Provisions
Sec. 881. Transfer and allocation of appropriations and personnel.
Sec. 882. Terminations and savings provisions.
Sec. 883. Contract dispute authority of Board.
Sec. 884. References to agency boards of contract appeals.
Sec. 885. Conforming amendments.
         Part VI--Effective Date; Interim Appointment and Rules
Sec. 891. Effective date.
Sec. 892. Interim appointment.
Sec. 893. Interim rules.
             Subtitle E--Effective Dates and Implementation

Sec. 895. Effective date and applicability.
Sec. 896. Implementing regulations.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Reorganization of Office of the Secretary of Defense.
Sec. 902. Restructuring of Department of Defense acquisition 
                            organization and workforce.
Sec. 903. Plan for incorporation of Department of Energy national 
                            security functions in Department of 
                            Defense.
Sec. 904. Change in titles of certain Marine Corps general officer 
                            billets resulting from reorganization of 
                            the Headquarters, Marine Corps.
Sec. 905. Inclusion of Information Resources Management College in the 
                            National Defense University.
Sec. 906. Employment of civilians at the Asia-Pacific Center for 
                            Security Studies.
Sec. 907. Continued operation of Uniformed Services University of the 
                            Health Sciences.
Sec. 908. Redesignation of Advanced Research Projects Agency.
Sec. 909. Naval Nuclear Propulsion Program.
Sec. 910. Aviation testing consolidation.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of Classified Annex.
Sec. 1003. Improved funding mechanisms for unbudgeted operations.
Sec. 1004. Designation and liability of disbursing and certifying 
                            officials.
Sec. 1005. Authority for obligation of certain unauthorized fiscal year 
                            1995 defense appropriations.
Sec. 1006. Authorization of prior emergency supplemental appropriations 
                            for fiscal year 1995.
Sec. 1007. Prohibition of incremental funding of procurement items.
                Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Contract options for LMSR vessels.
Sec. 1022. Vessels subject to repair under phased maintenance 
                            contracts.
Sec. 1023. Clarification of requirements relating to repairs of 
                            vessels.
Sec. 1024. Naming of naval vessel.
Sec. 1025. Transfer of riverine patrol craft.
                       Subtitle C--Other Matters

Sec. 1031. Termination and modification of authorities regarding 
                            national defense technology and industrial 
                            base, defense reinvestment, and defense 
                            conversion programs.
Sec. 1032. Repeal of miscellaneous provisions of law.
Sec. 1033. Policy concerning excess defense industrial capacity.
Sec. 1034. ROTC access to campuses.
Sec. 1035. Application of Buy American Act principles.
  TITLE XI--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET 
                                 UNION

Sec. 1101. Specification of Cooperative Threat Reduction programs.
Sec. 1102. Fiscal year 1996 authorization.
Sec. 1103. Repeal of demilitarization enterprise fund authority.
Sec. 1104. Prohibition on use of funds for peacekeeping exercises and 
                            related activities with Russia.
Sec. 1105. Revision to authority for assistance for weapons 
                            destruction.
Sec. 1106. Prior notice to Congress of obligation of funds.
Sec. 1107. Report on accounting for United States assistance.
Sec. 1108. Limitation on Cooperative Threat Reduction program relating 
                            to offensive biological weapons program in 
                            Russia.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                  Subtitle A--Peacekeeping Provisions

Sec. 1201. Limitation on expenditure of Department of Defense funds for 
                            United States forces placed under United 
                            Nations command or control.
Sec. 1202. Limitation on use of Department of Defense funds for United 
                            States share of costs of United Nations 
                            peacekeeping activities.
              Subtitle B--Humanitarian Assistance Programs

Sec. 1211. Overseas Humanitarian, Disaster, and Civic Aid programs.
Sec. 1212. Humanitarian assistance.
Sec. 1213. Landmine clearance program.
                       Subtitle C--Other Matters

Sec. 1221. Revision of definition of landmine for purposes of landmine 
                            export moratorium.
Sec. 1222. Extension and amendment of counterproliferation authorities.
Sec. 1223. Prohibition on use of funds for activities associated with 
                            the United States-People's Republic of 
                            China Joint Defense Conversion Commission.
Sec. 1224. Defense export loan guarantees.
Sec. 1225. Accounting for burdensharing contributions.
Sec. 1226. Authority to accept contributions for expenses of relocation 
                            within host nation of United States Armed 
                            Forces overseas.
Sec. 1227. Sense of Congress on ABM treaty violations.
Sec. 1228. Reduction of United States military forces in Europe.
Sec. 1229. Sense of Congress concerning unilateral implementation of 
                            Start II Treaty.
Sec. 1230. Sense of the Congress regarding the Chemical Weapons 
                            Convention.
            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.
                            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.
                         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. Retention of accrued interest on funds deposited for 
                            construction of family housing, Scott Air 
                            Force Base, Illinois.
                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
                            acquisition projects.
Sec. 2402. Family housing private investment.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Modification of authority to carry out fiscal year 1995 
                            projects.
Sec. 2407. Limitation on expenditures for construction project at 
                            Umatilla Army Depot, Oregon.
      TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

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. Correction in authorized uses of funds for Army National 
                            Guard projects in Mississippi.
        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 1993 
                            projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1992 
                            projects.
Sec. 2704. Effective date.
                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Alternative means of acquiring and improving military family 
                            housing and supporting facilities for the 
                            Armed Forces.
Sec. 2802. Inclusion of other Armed Forces in Navy program of limited 
                            partnerships with private developers for 
                            military housing.
Sec. 2803. Special unspecified minor construction thresholds for 
                            projects to correct life, health, and 
                            safety deficiencies and clarification of 
                            unspecified minor construction authority.
Sec. 2804. Disposition of amounts recovered as a result of damage to 
                            real property.
Sec. 2805. Rental of family housing in foreign countries.
Sec. 2806. Pilot program to provide interest rate buy down authority on 
                            loans for housing within housing shortage 
                            areas at military installations.
                Subtitle B--Base Closure and Realignment

Sec. 2811. Authority to transfer property at military installations to 
                            be closed to persons who construct or 
                            provide military family housing.
Sec. 2812. Deposit of proceeds from leases of property located at 
                            installations being closed or realigned.
Sec. 2813. Agreements for certain services at installations being 
                            closed.
Sec. 2814. Removal of base closure properties from application of 
                            section 501 of the Stewart B. McKinney 
                            Homeless Assistance Act.
                 Subtitle C--Land Conveyances Generally

Sec. 2821. Transfer of jurisdiction, Fort Sam Houston, Texas.
Sec. 2822. Land acquisition or exchange, Shaw Air Force Base, Sumter, 
                            South Carolina.
Sec. 2823. Transfer of certain real property at Naval Weapons 
                            Industrial Reserve Plant, Calverton, New 
                            York, for use as national cemetery.
Sec. 2824. Land conveyance, Fort Ord, California.
Sec. 2825. Land conveyance, Indiana Army Ammunition Plant, Charlestown, 
                            Indiana.
Sec. 2826. Land conveyance, Naval Air Station, Pensacola, Florida.
Sec. 2827. Land conveyance, Avon Park Air Force Range, Sebring, 
                            Florida.
Sec. 2828. Land conveyance, Parks Reserve Forces Training Area, Dublin, 
                            California.
Sec. 2829. Land conveyance, Holston Army Ammunition Plant, Mount 
                            Carmel, Tennessee.
Sec. 2830. Land conveyance, Naval Weapons Industrial Reserve Plant, 
                            McGregor, Texas.
Sec. 2831. Transfer of jurisdiction and land conveyance, Fort Devens 
                            Military Reservation, Massachusetts.
Sec. 2832. Land conveyance, Elmendorf Air Force Base, Alaska.
Sec. 2833. Land conveyance alternative to existing lease authority, 
                            Naval Supply Center, Oakland, California.
Sec. 2834. Land conveyance, Army Reserve Center, Youngstown, Ohio.
Sec. 2835. Modification of land conveyance, Naval Weapons Industrial 
                            Reserve Plant, Calverton, New York.
Sec. 2836. Land exchange, Fort Lewis, Washington.
Sec. 2837. Modification of existing land conveyance, Hamilton Air Force 
                            Base.
Sec. 2838. Transfer of jurisdiction, Fort Bliss, Texas.
            Subtitle D--Land Conveyances Involving Utilities

Sec. 2841. Conveyance of resource recovery facility, Fort Dix, New 
                            Jersey.
Sec. 2842. Conveyance of water and wastewater treatment plants, Fort 
                            Gordon, Georgia.
Sec. 2843. Conveyance of electrical distribution system, Fort Irwin, 
                            California.
                       Subtitle E--Other Matters

Sec. 2851. Expansion of authority to sell electricity.
Sec. 2852. Authority for Mississippi State Port Authority to use Navy 
                            property at Naval Construction Battalion 
                            Center, Gulfport, Mississippi.
Sec. 2853. Prohibition on joint civil aviation use of Naval Air Station 
                            Miramar, California.
Sec. 2854. Report regarding Army water craft support facilities and 
                            activities.
 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. Payment of penalties.
Sec. 3104. Other defense activities.
Sec. 3105. Defense nuclear waste disposal.
                Subtitle B--Recurring General Provisions

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

Sec. 3131. Authority to conduct program relating to fissile materials.
Sec. 3132. National Ignition Facility.
Sec. 3133. Tritium production.
                       Subtitle D--Other Matters

Sec. 3141. Report on foreign tritium purchases.
Sec. 3142. Study on nuclear test readiness postures.
Sec. 3143. Master plan on warheads in the enduring stockpile.
Sec. 3144. Prohibition on international inspections of Department of 
                            Energy facilities unless protection of 
                            restricted data is certified.
Sec. 3145. Accelerated schedule for environmental management 
                            activities.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Fiscal year 1996 authorized uses of stockpile funds.
Sec. 3302. Preference for domestic upgraders in disposal of chromite 
                            and manganese ores and chromium ferro and 
                            manganese metal electrolytic.
Sec. 3303. Restrictions on disposal of manganese ferro.
Sec. 3304. Titanium initiative to support battle tank upgrade program.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
Sec. 3402. Price requirement on sale of certain petroleum during fiscal 
                            year 1996.
Sec. 3403. Sale of Naval Petroleum Reserve Numbered 1 (Elk Hills).
Sec. 3404. Study regarding future of naval petroleum reserves (other 
                            than Naval Petroleum Reserve Numbered 1).
                  TITLE XXXV--PANAMA CANAL COMMISSION

              Subtitle A--Authorization of Appropriations

Sec. 3501. Short title.
Sec. 3502. Authorization of expenditures.
Sec. 3503. Expenditures in accordance with other laws.
   Subtitle B--Reconstitution of Commission as Government Corporation

Sec. 3521. Short title.
Sec. 3522. Reconstitution of commission as government corporation.
Sec. 3523. Supervisory board.
Sec. 3524. International advisors.
Sec. 3525. General and specific powers of commission.
Sec. 3526. Congressional review of budget.
Sec. 3527. Audits.
Sec. 3528. Prescription of measurement rules and rates of tolls.
Sec. 3529. Procedures for changes in rules of measurement and rates of 
                            tolls.
Sec. 3530. Miscellaneous technical amendments.
Sec. 3531. Conforming amendment to title 31, United States Code.
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 1996 
for procurement for the Army as follows:
            (1) For aircraft, $1,423,067,000.
            (2) For missiles, $862,830,000.
            (3) For weapons and tracked combat vehicles, 
        $1,359,664,000.
            (4) For ammunition, $1,062,715,000.
            (5) For other procurement, $2,545,587,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 1996 for procurement for the Navy as follows:
            (1) For aircraft, $4,106,488,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,626,411,000.
            (3) For shipbuilding and conversion, $6,227,958,000.
            (4) For other procurement, $2,461,472,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1996 for procurement for the Marine Corps in the amount 
of $399,247,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for procurement of ammunition for Navy and the 
Marine Corps in the amount of $461,779,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 1996 
for procurement for the Air Force as follows:
            (1) For aircraft, $7,031,952,000.
            (2) For missiles, $3,430,083,000.
            (3) For ammunition, $321,328,000.
            (4) For other procurement, $6,784,801,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1996 
for Defense-wide procurement in the amount of $2,205,917,000.

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal year 1996 
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, $150,000,000.
            (2) For the Air National Guard, $227,800,000.
            (3) For the Army Reserve, $84,300,000.
            (4) For the Naval Reserve, $86,000,000.
            (5) For the Air Force Reserve, $171,200,000.
            (6) For the Marine Corps Reserve, $50,700,000.
SEC. 106. CHEMICAL DEMILITARIZATION PROGRAM.

    (a) Authorization.--There is hereby authorized to be appropriated 
for fiscal year 1996 the amount of $746,698,000 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.
    (b) Allocation.--Of the funds specified in subsection (a)--
            (1) $393,850,000 is for operations and maintenance;
            (2) $299,448,000 is for procurement; and
            (3) $53,400,000 is for research and development.

                       Subtitle B--Army Programs

SEC. 111. PROCUREMENT OF HELICOPTERS.

    The prohibition in section 133(a)(2) of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 
103 Stat. 1383) does not apply to the obligation of funds in amounts 
not to exceed $125,000,000 for the procurement of not more than 20 OH-
58D AHIP Scout aircraft from funds appropriated for fiscal year 1996 
pursuant to section 101.
SEC. 112. REPEAL OF REQUIREMENTS FOR ARMORED VEHICLE UPGRADES.

    Subsection (j) of section 21 of the Arms Export Control Act (22 
U.S.C. 2761) is repealed.
                       Subtitle C--Navy Programs
SEC. 131. REPEAL OF PROHIBITION ON BACKFIT OF TRIDENT SUBMARINES.

    Section 124 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2683) is repealed.
SEC. 132. REPEAL OF LIMITATION ON TOTAL COST FOR SSN-21 AND SSN-22 
              SEAWOLF SUBMARINES.

    Section 122 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2682) is repealed.

SEC. 133. COMPETITION REQUIRED FOR SELECTION OF SHIPYARDS FOR 
              CONSTRUCTION OF VESSELS FOR NEXT GENERATION ATTACK 
              SUBMARINE PROGRAM.

    (a) Competition Required.--The Secretary of the Navy shall select 
on a competitive basis the shipyard for construction of each vessel for 
the next generation attack submarine program.
    (b) Program Identified.--The next generation attack submarine 
program shall begin with the first submarine for which the Secretary of 
the Navy enters into a contract for construction after the submarine 
that is programmed to be constructed using funds appropriated for 
fiscal year 1998.
SEC. 134. SONOBUOY PROGRAMS.

    Of the amount provided in section 102(a)(4)--
            (1) none of such amount shall be available for the AN/SSQ-
        53 (DIFAR) program; and
            (2) $8,902,000 shall be available for the AN/SSQ-110 (EER) 
        program.

                     Subtitle D--Air Force Programs
SEC. 141. REPEAL OF LIMITATIONS.

    The following provisions of law are repealed:
            (1) Section 112 of the National Defense Authorization Act 
        for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 
        1373).
            (2) Section 151(c) of the National Defense Authorization 
        Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2339).
            (3) Sections 131(c) and 131(d) of the National Defense 
        Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 
        Stat. 1569).
            (4) Section 133(e) of the National Defense Authorization 
        Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2688).

             Subtitle E--Chemical Demilitarization Program

SEC. 151. REPEAL OF REQUIREMENT TO PROCEED EXPEDITIOUSLY WITH 
              DEVELOPMENT OF CHEMICAL DEMILITARIZATION CRYOFRACTURE 
              FACILITY AT TOOELE ARMY DEPOT, UTAH.

    Subsection (a) of section 173 of the National Defense Authorization 
Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1393) 
is repealed.
SEC. 152. SENSE OF CONGRESS REGARDING COST GROWTH IN PROGRAM FOR 
              DESTRUCTION OF THE EXISTING STOCKPILE OF LETHAL CHEMICAL 
              AGENTS AND MUNITIONS.

    The Congress is concerned that growth in the estimated cost of the 
program to demilitarize the United States' stockpile of lethal chemical 
agents and munitions raises serious questions regarding that program. 
Accordingly, it is the sense of Congress that the Secretary of Defense 
should consider measures to reduce the overall cost of the chemical 
stockpile demilitarization program, while minimizing total risk and 
ensuring the maximum protection for the environment, the general 
public, and the personnel involved in the destruction of lethal 
chemical agents and munitions.
SEC. 153. ASSISTANCE FOR CHEMICAL WEAPONS STOCKPILE COMMUNITIES 
              AFFECTED BY BASE CLOSURE.

    The Secretary of Defense shall review and evaluate issues 
associated with closure and reutilization of Department of Defense 
facilities co-located with continuing chemical stockpile and chemical 
demilitarization operations. The review shall include analysis of the 
economic impacts on these communities and the unique reuse problems 
facing local communities associated with ongoing chemical weapons 
programs. The review should also include recommendations from the 
Secretary on methods for expeditious and cost-effective transfer of 
these facilities to local communities for base reuse or privatization. 
The Secretary shall submit to Congress a report on the review and 
evaluation not later than 90 days after the date of the enactment of 
this Act.
         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 1996 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $4,774,947,000.
            (2) For the Navy, $8,516,509,000.
            (3) For the Air Force, $13,184,102,000.
            (4) For Defense-wide activities, $9,548,986,000, of which 
        $239,341,000 is authorized for the activities of the Director, 
        Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC RESEARCH AND EXPLORATORY DEVELOPMENT.

    (a) Fiscal Year 1996.--Of the amounts authorized to be appropriated 
by section 201, $4,181,076,000 shall be available for basic research 
and exploratory development projects.
    (b) Basic Research and Exploratory Development Defined.--For 
purposes of this section, the term ``basic research and exploratory 
development'' means work funded in program elements for defense 
research and development under Department of Defense category 6.1 or 
6.2.

SEC. 203. MODIFICATIONS TO STRATEGIC ENVIRONMENTAL RESEARCH AND 
              DEVELOPMENT PROGRAM.

    (a) Purposes of Program.--Section 2901(b) of title 10, United 
States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking out ``and the Department of 
                Energy''; and
                    (B) by striking out ``their'' and inserting in lieu 
                thereof ``its'';
            (2) by striking out paragraph (3); and
            (3) by redesignating paragraph (4) as paragraph (3).
    (b) Council.--Section 2902 of such title is amended--
            (1) in subsection (b)--
                    (A) by striking out ``thirteen'' and inserting in 
                lieu thereof ``12'';
                    (B) by striking out paragraph (3);
                    (C) by redesignating paragraphs (4), (5), (6), (7), 
                (8), (9), and (10) as paragraphs (3), (4), (5), (6), 
                (7), (8), and (9), respectively; and
                    (D) in paragraph (8), as redesignated, by striking 
                out ``, who shall be nonvoting members'';
            (2) in subsection (d)--
                    (A) by striking out paragraph (3);
                    (B) by redesignating paragraph (4) as paragraph (3) 
                and in that paragraph by striking out ``Federal 
                Coordinating Council on Science, Engineering, and 
                Technology'' and inserting in lieu thereof ``National 
                Science and Technology Council''; and
                    (C) by redesignating paragraphs (5) and (6) as 
                paragraphs (4) and (5), respectively;
            (3) in subsection (e)--
                    (A) by striking out paragraphs (1), (2), and (3);
                    (B) by redesignating paragraphs (4), (5), (6), (7), 
                (8), (9), and (10) as paragraphs (1), (2), (3), (4), 
                (5), (6), and (7) respectively;
                    (C) in paragraph (2), as redesignated, by striking 
                out ``such national and international environmental 
                problems as climate change and ozone depletion'' and 
                inserting in lieu thereof ``national and international 
                environmental problems''; and
                    (D) in paragraph (4), as redesignated, by striking 
                out ``clauses (2) through (6)'' and inserting in lieu 
                thereof ``paragraphs (1) through (3)'';
            (4) by striking out subsections (f) and (h); and
            (5) by redesignating subsection (g) as subsection (f).
    (c) Competitive Procedures.--Section 2903(c) of such title is 
amended--
            (1) by striking out ``or'' after ``contracts'' and 
        inserting in lieu thereof ``using competitive procedures. The 
        Executive Director may enter into''; and
            (2) by striking out ``law, except that'' and inserting in 
        lieu thereof ``law. In either case,''.
    (d) Scientific Advisory Board.--Section 2904 of such title is 
amended--
            (1) in subsection (a)--
                    (A) by striking out ``and the Secretary of 
                Energy''; and
                    (B) by inserting after ``in consultation with'' the 
                following: ``the Secretary of Energy and'';
            (2) in subsection (b)--
                    (A) by striking out paragraph (3); and
                    (B) by redesignating paragraph (4) as paragraph (3) 
                and in that paragraph by striking out ``three'' and 
                inserting in lieu thereof ``not less than two years and 
                not more than six'';
            (3) by striking out subsections (g) and (h); and
            (4) by redesignating subsection (i) as subsection (g).

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

    (a) Allocation of Funds.--Of the amount appropriated pursuant to 
the authorization in section 201(3)--
            (1) $100,000,000 shall be available for a competitive 
        reusable rocket technology program (PE 63401F); and
            (2) $7,500,000 shall be available for evaluation of 
        prototype hardware of low-cost expendable launch vehicles (PE 
        63401F).
    (b) Limitation.--Funds made available pursuant to subsection (a)(1) 
may be obligated only to the extent that the fiscal year 1996 current 
operating plan of the National Aeronautics and Space Administration 
allocates at least an equal amount for its Reusable Space Launch 
program.

SEC. 212. MANEUVER VARIANT UNMANNED AERIAL VEHICLE.

    None of the amounts appropriated or otherwise made available 
pursuant to the authorizations in section 201 may be obligated for the 
Maneuver Variant Unmanned Aerial Vehicle.
SEC. 213. TACTICAL MANNED RECONNAISSANCE.

    None of the amounts appropriated or otherwise made available 
pursuant to an authorization in this Act may be used by the Secretary 
of the Air Force to conduct research, development, test, or evaluation 
for a replacement aircraft, pod, or sensor payload for the tactical 
manned reconnaissance mission.
SEC. 214. ADVANCED LITHOGRAPHY PROGRAM.

    Section 216 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2693) is amended--
            (1) in subsection (a), by striking out ``to help achieve'' 
        and all that follows through the end of the subsection and 
        inserting in lieu thereof ``to ensure that lithographic 
        processes being developed by American-owned manufacturers 
        operating in the United States will lead to superior 
        performance electronics systems for the Department of Defense. 
        For purposes of the preceding sentence, the term `American-
        owned manufacturers' means a manufacturing company or other 
        business entity the majority ownership or control of which is 
        by United States citizens.''; and
            (2) in subsection (b), by adding at the end the following 
        new paragraph:
    ``(3) The Director of the Defense Advanced Research Projects Agency 
may set priorities and funding levels for various technologies being 
developed for the ALP and shall consider funding recommendations by the 
SIA as advisory.''.

SEC. 215. ENHANCED FIBER OPTIC GUIDED MISSILE SYSTEM.

    (a) Certification.--Not later than December 1, 1995, the Secretary 
of the Army shall certify to the congressional defense committees 
whether there is a requirement for the enhanced fiber optic guided 
missile (EFOG-M) system and whether there is a cost and effectiveness 
analysis supporting such requirement.
    (b) Limitations.--(1) The Secretary of the Army may not obligate 
more than $280,000,000 (based on fiscal year 1995 constant dollars) to 
develop and deliver for test and evaluation by the Army the following 
items:
            (A) 44 EFOG-M test missiles.
            (B) 256 fully operational EFOG-M missiles.
            (C) 12 fully operational fire units.
    (2) The Secretary of the Army may not spend funds for the EFOG-M 
system after September 30, 1998, if the items described in paragraph 
(1) have not been delivered to the Army by that date at the cost 
estimated for such system as of the date of the enactment of this Act.
    (c) Government-Furnished Equipment.--The Secretary of the Army 
shall assure that all Government-furnished equipment that the Army 
agrees to provide under the contract for the EFOG-M system is provided 
to the prime contractor in accordance with the terms of the contract.
SEC. 216. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM.

    (a) Allocation of Funds.--Of the amount appropriated pursuant to 
the authorizations in section 201, $280,156,000 shall be available for 
the Joint Advanced Strike Technology (JAST) program. Of that amount--
            (1) $123,795,000 shall be available for PE 63800N;
            (2) $125,686,000 shall be available for PE 63800F; and
            (3) $30,675,000 shall be available for PE 63800E.
    (b) Limitation.--Not more than 75 percent of the amount 
appropriated for such program pursuant to the authorizations in section 
201 may be obligated until a period of 30 days has expired after the 
report specified in subsection (c) is submitted to the congressional 
defense committees.
    (c) Report.--The Secretary of Defense shall submit to the 
congressional defense committees a report, in unclassified and 
classified form, not later than March 1, 1996, that sets forth in 
detail the following information for the period 1997 through 2005:
            (1) What the total joint requirement, under two major 
        regional contingency (MRC) assumptions, is for the following:
                    (A) Numbers of tactical combat aircraft and the 
                characteristics required of those aircraft in terms of 
                capabilities, range, and observability-stealthiness.
                    (B) Surface- and air-launched standoff precision 
                guided munitions.
                    (C) Cruise missiles.
                    (D) Ground-based systems, such as Extended Range-
                Multiple Launch Rocket System and the Army Tactical 
                Missile System (ATACMS), for joint warfighting 
                capability.
            (2) What the major regional contingency warning time 
        assumptions are, and what the effect on future tactical 
        fighter/attack aircraft requirements are using other warning 
        time assumptions.
            (3) What requirements exist for the Joint Advanced Strike 
        Technology program that cannot be met by existing aircraft or 
        by those in development.
SEC. 217. DEVELOPMENT OF LASER PROGRAM.

    (a) Laser Program.--The amount authorized for appropriation by 
section 201 is hereby increased by $9,000,000, to be used for the 
development by the Naval High Energy Laser Office of a continuous wave, 
superconducting radio frequency free electron laser program.
    (b) Offset.--The amount authorized by section 201 is hereby reduced 
by $9,000,000, of which--
            (1) $7,000,000 shall be derived from amounts authorized for 
        experimental evaluation of major innovative technologies (PE 
        63226E); and
            (2) $2,000,000 shall be derived from amounts authorized for 
        the space test program (PE 63402F).

           Subtitle C--Ballistic Missile Defense Act of 1995

SEC. 231. SHORT TITLE.

    This subtitle may be cited as the ``Ballistic Missile Defense Act 
of 1995''.

SEC. 232. BALLISTIC MISSILE DEFENSE POLICY OF THE UNITED STATES.

    It is the policy of the United States--
            (1) to deploy at the earliest practical date highly 
        effective theater missile defenses (TMDs) to protect forward-
        deployed and expeditionary elements of the Armed Forces of the 
        United States and to complement and support the missile defense 
        capabilities of friendly forces and of allies of the United 
        States; and
            (2) to deploy at the earliest practical date a national 
        missile defense (NMD) system that is capable of providing a 
        highly effective defense of the United States against limited 
        ballistic missile attacks.

SEC. 233. IMPLEMENTATION OF POLICY.

    (a) TMD Deployment.--To implement the policy established in section 
232(1), the Secretary of Defense shall develop and deploy at the 
earliest practical date advanced theater missile defense (TMD) systems.
    (b) NMD System Architecture.--To implement the policy established 
in section 232(2), the Secretary of Defense shall develop for 
deployment at the earliest practical date an affordable, operationally-
effective National Missile Defense (NMD) system designed to protect the 
United States against limited ballistic missile attacks. The system to 
be developed for deployment shall include the following:
            (1) Up to 100 ground-based interceptors at a single site or 
        a greater number of interceptors at a number of sites, as 
        determined necessary by the Secretary.
            (2) Fixed, ground-based radars.
            (3) Space-based sensors, including, within the type of 
        space-based sensors known as ABM-adjunct sensors (such sensors 
        not being prohibited by the ABM Treaty), those sensor systems 
        (such as the Space and Missile Tracking System) that are 
        capable of cuing ground-based anti-ballistic missile 
        interceptors and of providing initial targeting vectors.
            (4) Battle management, command, control, and 
        communications.
    (c) Report on Plan for Deployment.--Not later than 90 days after 
the date of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a report setting forth 
the Secretary's plan for--
            (1) the deployment of advanced theater missile defense 
        (TMD) systems pursuant to subsection (a); and
            (2) the deployment of a national missile defense system 
        which meets the requirements specified in subsection (b).

SEC. 234. FOLLOW-ON TECHNOLOGIES RESEARCH AND DEVELOPMENT.

    (a) Follow-on National and Theater Missile Defense Technology.--The 
Secretary shall pursue research and development of technologies and 
systems related to national missile defense and theater missile defense 
in order to provide future options for--
            (1) protecting the United States against limited ballistic 
        missile attacks; and
            (2) defending forward-deployed and expeditionary elements 
        of the Armed Forces of the United States and complementing and 
        supporting the missile defense capabilities of friendly forces 
        and allies of the United States.
    (b) Exclusion of Certain Systems From Initial Deployment.--The 
initial National Missile Defense system architecture developed for 
deployment pursuant to section 233(b) may not include--
            (1) ground-based or space-based directed energy weapons; or
            (2) space-based interceptors.

SEC. 235. POLICY ON COMPLIANCE WITH THE ABM TREATY.

    (a) Policy Concerning Systems Subject to ABM Treaty.--Congress 
finds that, unless and until a missile defense system, system upgrade, 
or system component is flight tested in an ABM-qualifying flight test 
(as defined in subsection (c)), such system, system upgrade, or system 
component--
            (1) has not, for purposes of the ABM Treaty, been tested in 
        an ABM mode nor been given capabilities to counter strategic 
        ballistic missiles; and
            (2) therefore is not subject to any application, 
        limitation, or obligation under the ABM Treaty.
    (b) Prohibitions.--(1) Funds appropriated to the Department of 
Defense may not be obligated or expended for the purpose of--
            (A) prescribing, enforcing, or implementing any Executive 
        order, regulation, or policy that would apply the ABM Treaty 
        (or any limitation or obligation under such Treaty) to 
        research, development, testing, or deployment of a theater 
        missile defense system, a theater missile defense system 
        upgrade, or a theater missile defense system component; or
            (B) taking any other action to provide for the ABM Treaty 
        (or any limitation or obligation under such Treaty) to be 
        applied to research, development, testing, or deployment of a 
        theater missile defense system, a theater missile defense 
        system upgrade, or a theater missile defense system component.
    (2) This subsection applies with respect to each missile defense 
system, missile defense system upgrade, or missile defense system 
component that is capable of countering modern theater ballistic 
missiles.
    (3) This subsection shall cease to apply with respect to a missile 
defense system, missile defense system upgrade, or missile defense 
system component when that system, system upgrade, or system component 
has been flight tested in an ABM-qualifying flight test.
    (c) ABM-Qualifying Flight Test Defined.--For purposes of this 
section, an ABM-qualifying flight test is a flight test against a 
ballistic missile which, in that flight test, exceeds (1) a range of 
3,500 kilometers, or (2) a velocity of 5 kilometers per second.

SEC. 236. BALLISTIC MISSILE DEFENSE PROGRAM ACCOUNTABILITY.

    (a) Annual BMD Programs Report.--The Secretary of Defense shall 
submit to the congressional defense committees an annual report 
describing the technical milestones, schedule, and cost of each 
ballistic missile defense program specified in subsection (c).
    (b) Matters To Be Included.--Each report under subsection (a) shall 
list all technical milestones, program schedule milestones, and costs 
of each phase of development and acquisition, together with total 
estimated program costs, covering the entire life of each program 
specified in subsection (c).
    (c) Covered Programs.--The reports under this section shall cover 
the following programs:
            (1) Theater High Altitude Area Defense (THAAD).
            (2) Patriot Advanced Capability-3.
            (3) Navy Lower Tier.
            (4) Navy Upper Tier.
            (5) Corps Surface-to-Air Missile.
            (6) Hawk.
            (7) Boost Phase Intercept.
            (8) National Missile Defense.
            (9) Arrow.
            (10) Medium Extended Air Defense.
            (11) Any theater missile defense program or national 
        missile defense program which the Department of Defense 
        initiates after the date of the enactment of this Act.
    (d) Variance Reporting Requirements.--(1) In the annual report 
under this section, the Secretary shall describe, with respect to each 
program covered in the report, any difference in the technical 
milestones, program schedule milestones, and costs for that program--
            (A) compared with the information relating to that program 
        in the report submitted in the previous year; and
            (B) compared with the information relating to that program 
        in the first report submitted under this section in which that 
        program is covered.
    (2) Paragraph (1)(A) shall not apply to the first report submitted 
under this section.
    (e) Date of Submission.--The report required by this section for 
any year shall be submitted not later than 30 days after the date on 
which the President's budget for the next fiscal year is submitted, 
except that the first report shall be submitted not later than 90 days 
after the date of the enactment of this Act.

SEC. 237. ABM TREATY DEFINED.

    For purposes of this subtitle and subtitle D, the term ``ABM 
Treaty'' means the Treaty Between the United States and the Union of 
Soviet Socialist Republics on the Limitation of Anti-Ballistic Missile 
Systems, and signed at Moscow on May 26, 1972, and includes Protocols 
to that Treaty, signed at Moscow on July 3, 1974.

SEC. 238. REPEAL OF MISSILE DEFENSE ACT OF 1991.

    The Missile Defense Act of 1991 is repealed.

         Subtitle D--Other Ballistic Missile Defense Provisions

SEC. 241. BALLISTIC MISSILE DEFENSE FUNDING FOR FISCAL YEAR 1996.

    Of the amounts authorized to be appropriated pursuant to section 
201 for fiscal year 1996 or otherwise made available to the Department 
of Defense for fiscal year 1996, not more than $3,070,199,000 may be 
obligated for Ballistic Missile Defense programs.
SEC. 242. POLICY CONCERNING BALLISTIC MISSILE DEFENSE.

    (a) Ballistic Missile Defense and Other Counterproliferation 
Efforts.--The Congress views the deployment of ballistic missile 
defenses as a necessary, but not sufficient, element of a broader 
strategy to discourage both the proliferation of weapons of mass 
destruction and the proliferation of means of their delivery and to 
defend against the consequences of such proliferation. The Congress, 
therefore, endorses and supports measures designed to slow or halt the 
proliferation of advanced technologies that pose a threat to the safety 
and security of the United States and to international stability.
    (b) Ballistic Missile Defense and Strategic Stability.--(1) The 
Congress views the deployment of ballistic missile defenses as a 
strategically stabilizing measure.
    (2) The deployment of Theater Missile Defense systems at the 
earliest practical date pursuant to section 232(a)(1) will deny 
potential adversaries the option of escalating a conflict by 
threatening or attacking United States forces, coalition partners of 
the United States, or allies of the United States with ballistic 
missiles armed with weapons of mass destruction to offset the 
operational and technical advantages of the United States and its 
coalition partners and allies.
    (3) The deployment of a National Missile Defense system at the 
earliest practical date pursuant to section 232(a)(2) against the 
threat of limited ballistic missile attacks--
            (A) will strengthen deterrence at the levels of forces 
        agreed to by the United States and Russia under the Strategic 
        Arms Reduction Talks Treaties (START-I and START-II); and
            (B) would further strengthen deterrence if reductions below 
        the levels permitted under START-II should be agreed to in the 
        future.
    (c) Presidential Discussions With Other Nations.--(1) The 
Congress--
            (A) notes that on the basis of section 235 it is no longer 
        necessary for the United States to continue discussions with 
        Russia to clarify the distinction between ABM and TMD systems 
        and, therefore, urges the President to discontinue any such 
        discussions;
            (B) notes that the ABM Treaty prohibits deployment of 
        ground-based interceptors in a number that would be sufficient 
        to assure that the entire continental United States, Alaska, 
        and Hawaii are defended against limited ballistic missile 
        attacks; and
            (C) notes that past discussions with Russia, based on 
        Russian President Yeltsin's proposal for a Global Protection 
        System, held promise of an agreement to amend the ABM Treaty to 
        allow defense against a limited ballistic missile attack that 
        would have included (among other measures) permitted deployment 
        of as many as four ground-based interceptor sites in addition 
        to the one site currently permitted under the ABM Treaty and 
        unrestricted exploitation of ground-based and space-based 
        sensors.
    (2) In light of the findings in paragraph (1), Congress urges the 
President to pursue high-level discussions with Russia to amend the ABM 
Treaty to permit--
            (A) deployment of the number of ground-based ABM sites 
        necessary to provide effective defense of the entire territory 
        of the United States against limited ballistic missile attack; 
        and
            (B) the unrestricted exploitation of sensors based within 
        the atmosphere and in space.
    (3) It is in the interest of the United States to develop its own 
missile defense capabilities in a manner that will permit the United 
States to complement and support the missile defense capabilities 
developed and deployed by its allies and possible coalition partners. 
Therefore, the Congress urges the President--
            (A) to pursue high-level discussions with allies and 
        selected other states on the means and methods by which the 
        parties on a bilateral basis can cooperate in the development, 
        deployment, and operation of ballistic missile defenses;
            (B) to take the initiative within the North Atlantic Treaty 
        Organization to develop consensus in the Alliance for a timely 
        deployment of effective ballistic missile defenses by the 
        Alliance; and
            (C) in the interim, to seek agreement with allies and 
        selected other states on steps the parties should take, 
        consistent with their national interests, to reduce the risks 
        posed by the threat of limited ballistic missile attacks, such 
        steps to include--
                    (i) the sharing of early warning information 
                derived from sensors deployed by the United States and 
                other states;
                    (ii) the exchange on a reciprocal basis of 
                technical data and technology to support both joint 
                development programs and the sale and purchase of 
                missile defense systems and components; and
                    (iii) operational level planning to exploit current 
                missile defense capabilities and to help define future 
                requirements.
SEC. 243. TESTING OF THEATER MISSILE DEFENSE INTERCEPTORS.

    Subsection (a) of section 237 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1600) is 
amended to read as follows:
    ``(a) Testing of Theater Missile Defense Interceptors.--(1) The 
Secretary of Defense may not approve a theater missile defense 
interceptor program proceeding beyond the low-rate initial production 
acquisition stage until the Secretary certifies to the congressional 
defense committees that such program has successfully completed initial 
operational test and evaluation.
    ``(2) In order to be certified under paragraph (1) as having been 
successfully completed, the initial operational test and evaluation 
conducted with respect to an interceptors program must have included 
flight tests--
            ``(A) that were conducted with multiple interceptors and 
        multiple targets in the presence of realistic countermeasures; 
        and
            ``(B) the results of which demonstrate the achievement by 
        the interceptors of the baseline performance thresholds.
    ``(3) For purposes of this subsection, the baseline performance 
thresholds with respect to a program are the weapons systems 
performance thresholds specified in the baseline description for the 
system established (pursuant to section 2435(a)(1) of title 10, United 
States Code) before the program entered the engineering and 
manufacturing development stage.
    ``(4) The number of flight tests described in paragraph (2) that 
are required in order to make the certification under paragraph (1) 
shall be a number determined by the Secretary of Defense to be 
sufficient for the purposes of this section.
    ``(5) The Secretary may augment live-fire testing to demonstrate 
weapons system performance goals for purposes of the certification 
under paragraph (1) through the use of modeling and simulation that is 
validated by ground and flight testing.''.
SEC. 244. REPEAL OF MISSILE DEFENSE PROVISIONS.

    The following provisions of law are repealed:
            (1) Section 222 of the Department of Defense Authorization 
        Act, 1986 (Public Law 99-145; 99 Stat. 613; 10 U.S.C. 2431 
        note).
            (2) Section 225 of the Department of Defense Authorization 
        Act, 1986 (Public Law 99-145; 99 Stat. 614).
            (3) Section 226 of the National Defense Authorization Act 
        for Fiscal Years 1988 and 1989 (Public Law 100-180; 101 Stat. 
        1057; 10 U.S.C. 2431 note).
            (4) Section 8123 of the Department of Defense 
        Appropriations Act, 1989 (Public Law 100-463; 102 Stat. 2270-
        40).
            (5) Section 8133 of the Department of Defense 
        Appropriations Act, 1992 (Public Law 102-172; 105 Stat. 1211).
            (6) Section 234 of the National Defense Authorization Act 
        for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1595; 10 
        U.S.C. 2431 note).
                       Subtitle E--Other Matters

SEC. 251. ALLOCATION OF FUNDS FOR MEDICAL COUNTERMEASURES AGAINST 
              BIOWARFARE THREATS.

    Section 2370a of title 10, United States Code, is amended--
            (1) in subsection (a), by striking out ``Department of 
        Defense--'' and all that follows through ``not more than 20 
        percent'' and inserting in lieu thereof ``Department of 
        Defense, not more than 50 percent''; and
            (2) in subsection (b), by striking out paragraph (2) and 
        redesignating paragraphs (3), (4), and (5) as paragraphs (2), 
        (3), and (4), respectively.

SEC. 252. ANALYSIS OF CONSOLIDATION OF BASIC RESEARCH ACCOUNTS OF 
              MILITARY DEPARTMENTS.

    (a) Analysis Required.--The Secretary of Defense shall conduct an 
analysis of the cost and effectiveness of consolidating the basic 
research accounts of the military departments. The analysis shall 
determine potential infrastructure savings and other benefits of co-
locating and consolidating the management of basic research.
    (b) Deadline.--On or before March 1, 1996, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
on the analysis conducted under subsection (a).

SEC. 253. CHANGE IN REPORTING PERIOD FROM CALENDAR YEAR TO FISCAL YEAR 
              FOR ANNUAL REPORT ON CERTAIN CONTRACTS TO COLLEGES AND 
              UNIVERSITIES.

    Section 2361(c)(2) of title 10, United States Code, is amended--
            (1) by striking out ``calendar year'' and inserting in lieu 
        thereof ``fiscal year''; and
            (2) by striking out ``after the year'' and inserting in 
        lieu thereof ``after the fiscal year''.
SEC. 254. MODIFICATION TO UNIVERSITY RESEARCH INITIATIVE SUPPORT 
              PROGRAM.

    Section 802 of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 107 Stat. 1701) is amended--
            (1) in subsections (a) and (b), by striking out ``shall'' 
        both places it appears and inserting in lieu thereof ``may''; 
        and
            (2) in subsection (e), by striking out the sentence 
        beginning with ``Such selection process''.
SEC. 255. ADVANCED FIELD ARTILLERY SYSTEM (CRUSADER).

    (a) Authority to Use Funds for Alternative Propellant 
Technologies.--During fiscal year 1996, the Secretary of the Army may 
use funds appropriated for the liquid propellant portion of the 
Advanced Field Artillery System (Crusader) program for fiscal year 1996 
for alternative propellant technologies and integration of those 
technologies into the design of the Crusader system if--
            (1) the Secretary determines that the technical risk 
        associated with liquid propellant will increase costs and delay 
        the initial operational capability of the Crusader system; and
            (2) the Secretary notifies the congressional defense 
        committees of the proposed use of the funds and the reasons for 
        the proposed use of the funds.
    (b) Limitation.--The Secretary of the Army may not spend funds for 
the liquid propellant portion of the Crusader system after August 1, 
1996, unless significant progress has been made toward meeting the 
objectives set forth in subsection (c) and the statement described in 
subsection (d) has been submitted to the congressional defense 
committees.
    (c) Objectives.--The objectives referred to in subsection (b) are 
the following:
            (1) Breech and ignition design criteria for rate of fire 
        for the cannon of the Crusader system have been met.
            (2) The final ignition concept has been designed and 
        successfully bench tested for the next prototype of the cannon 
        of the Crusader system.
            (3) Designs to prevent chamber piston reversals have been 
        tested in a fixed weapons test stand.
            (4) The chemistry and physics of propellant burn resulting 
        from the firing of liquid propellant into any target zone are 
        fully understood, and predictable firings have been 
        demonstrated.
            (5) An analysis of the management of heat dissipation has 
        been made for the full range of performance requirements for 
        the cannon, and concept designs supported by that analysis are 
        completed and proposed for engineering.
            (6) Engineering designs to control pressure oscillations in 
        the chamber during firing are proven and planned for 
        integration into the next prototype of the cannon.
            (7) Fill designs for the cannon chamber that focus on 
        preventing future chamber explosions have been electronically 
        simulated and bench tested.
            (8) An assessment of the sensitivity of liquid propellant 
        to contamination by various materials to which it may be 
        exposed throughout the handling and operation of the cannon is 
        completed.
    (d) Statement.--The statement referred to in subsection (b) is a 
statement submitted to the congressional defense committees not later 
than March 30, 1996, that contains the following:
            (1) An assertion that all the hazards associated with 
        liquid propellent have been identified and are controllable to 
        acceptable levels.
            (2) An assessment of the technology for each component of 
        the Crusader system (the cannon, vehicle, and crew module). The 
        technology assessment shall include, for each performance goal 
        of the Crusader system (including total system weight), 
        information about the maturity of the technology to achieve 
        that goal, the maturity of the design of the technology, and 
        the manner in which the design has been proven (for example, 
        through simulation, bench testing, or weapon firing).
            (3) An assessment of the cost of continued development of 
        the Crusader system after August 1, 1996, the cost of each unit 
        of the Crusader system in the year the Crusader system will be 
        completed, and the cost of each unit of the Future Armored 
        Resupply Vehicle (FARV) in the year that vehicle will be 
        completed.
SEC. 256. REVIEW OF C<SUP>4I BY NATIONAL RESEARCH COUNCIL.

    (a) Review by National Research Council.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall enter into a contract with the National Research Council of the 
National Academy of Sciences to conduct a comprehensive review of 
current and planned service and defense-wide programs for command, 
control, communications, computers, and intelligence (C<SUP>4I) with a 
special focus on cross-service and inter-service issues.
    (b) Matters To Be Assessed in Review.--The review shall address the 
following:
            (1) The match between the capabilities provided by current 
        service and defense-wide C<SUP>4I programs and the actual needs 
        of users of these programs.
            (2) The interoperability of service and defense-wide 
        C<SUP>4I systems that are planned to be operational in the 
        future.
            (3) The need for an overall defense-wide architecture for 
        C<SUP>4I.
            (4) Proposed strategies for ensuring that future C<SUP>4I 
        acquisitions are compatible and interoperable with an overall 
        architecture.
            (5) Technological and administrative aspects of the 
        C<SUP>4I modernization effort to determine the soundness of the 
        underlying plan and the extent to which it is consistent with 
        concepts for joint military operations in the future.
    (c) Two-Year Period for Conducting Review.--The National Research 
Council shall conduct the review over the two-year period beginning 
upon completion of the performance of the contract described in 
subsection (a).
    (d) Reports.--(1) The National Research Council shall submit to the 
Department of Defense and Congress interim reports and progress updates 
on a regular basis as the review proceeds. A final report on the review 
shall set forth the findings, conclusions, and recommendations of the 
Council for defense-wide and service C<SUP>4I programs and shall be 
submitted to the Committee on Armed Services of the Senate, the 
Committee on National Security of the House of Representatives, and the 
Secretary of Defense.
    (2) To the maximum degree possible, the final report shall be 
submitted in unclassified form with classified annexes as necessary.
    (e) Interagency Cooperation With Study.--All military departments, 
defense agencies, and other components of the Department of Defense 
shall cooperate fully with the National Research Council in its 
activities in carrying out the review under this section.
    (f) Expedited Processing of Security Clearances for Study.--For the 
purpose of facilitating the commencement of the study under this 
section, the Secretary of Defense shall expedite to the fullest degree 
possible the processing of security clearances that are necessary for 
the National Research Council to conduct the study.
    (g) Funding.--Of the amount authorized to be appropriated in 
section 201 for defense-wide activities, $900,000 shall be available 
for the study under this section.

SEC. 257. FIVE-YEAR PLAN FOR FEDERALLY FUNDED RESEARCH AND DEVELOPMENT 
              CENTERS (FFRDCS).

    (a) Five-Year Plan.--The Secretary of Defense, in consultation with 
the Secretaries of the military departments, shall develop a five-year 
plan to reduce and consolidate the activities performed by federally 
funded research and development centers (FFRDCs) and establish a 
framework for the future workload of such centers.
    (b) Objectives.--The plan shall set forth the manner in which the 
Secretary of Defense could achieve by October 1, 2000, the following:
            (1) Implementation by federally funded research and 
        development centers of only those core activities, as defined 
        by the Secretary, that require the unique capabilities and 
        arrangements afforded by such centers.
            (2) Consolidation of such core level activities into as few 
        federally funded research and development centers as is 
        practical and possible.
            (3) Acquisition of systems engineering and systems 
        integration activities currently performed by federally funded 
        research and development centers through the use of competitive 
        procedures.
            (4) Transfer of the management of the Software Engineering 
        Institute activities to the Defense Information Systems Agency 
        for purposes of supporting command, control, communications, 
        computing, and intelligence (C<SUP>4I) programs.
            (5) Transfer of the management of the core activities of 
        Lincoln Laboratory to the Office of the Secretary of Defense.
            (6) Acquisition of services provided to the Department of 
        Defense by university-affiliated research centers (that operate 
        like federally funded research and development centers) through 
        the use of competitive procedures.
    (c) Other Matters.--The plan also shall include the following:
            (1) An assessment of the number of staff needed in each 
        federally funded research and development center during each 
        year over the five years covered by the plan.
            (2) A specific timetable for phasing in the objectives set 
        forth in subsection (b).
    (d) Report.--Not later than February 1, 1996, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on the plan.
    (e) Undistributed Reduction.--The total amount authorized to be 
appropriated for research, development, test, and evaluation in section 
201 for federally funded research and development centers and 
university-affiliated research centers is hereby reduced by 
$90,097,000.

SEC. 258. MANUFACTURING TECHNOLOGY PROGRAM.

    (a) In General.--Section 2525 of title 10, United States Code, is 
amended as follows:
            (1) The heading is amended by striking out the second and 
        third words.
            (2) Subsection (a) is amended by striking out ``Science 
        and''.
            (3) Subsection (d) is amended--
                    (A) in paragraph (2)--
                            (i) by striking out ``or'' at the end of 
                        subparagraph (A);
                            (ii) by striking out the period at the end 
                        of subparagraph (B) and inserting in lieu 
                        thereof ``; or''; and
                            (iii) by adding at the end the following 
                        new subparagraph:
            ``(C) will be carried out by an institution of higher 
        education.''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(3) At least 25 percent of the funds available for the program 
each fiscal year shall be used for awarding grants and entering into 
contracts, cooperative agreements, and other transactions on a cost-
share basis under which the ratio of recipient costs to Government 
costs is two to one.''.
    (b) Clerical Amendment.--The item relating to section 2525 in the 
table of sections at the beginning of chapter 148 of title 10, United 
States Code, is amended to read as follows:

``2525. Manufacturing technology program.''.
SEC. 259. FIVE-YEAR PLAN FOR CONSOLIDATION OF DEFENSE LABORATORIES AND 
              TEST AND EVALUATION CENTERS.

    (a) Five-Year Plan.--The Secretary of Defense shall develop a five-
year plan to consolidate and restructure the laboratories and test and 
evaluation centers of the Department of Defense.
    (b) Objective.--The plan shall set forth the specific actions 
needed to consolidate the laboratories and test and evaluation centers 
into as few laboratories and centers as is practical and possible, in 
the judgment of the Secretary, by October 1, 2005.
    (c) Matters To Be Considered.--In developing the plan, the 
Secretary shall consider the following:
            (1) Consolidation of common support functions, including 
        the following:
                    (A) Aircraft (fixed wing and rotary).
                    (B) Weapons.
                    (C) Space systems.
                    (D) Command, control, communications, computers, 
                and intelligence.
            (2) The extent to which any military construction is 
        planned at the laboratories and centers.
            (3) The encroachment on the laboratories and centers by 
        residential and industrial expansion.
            (4) The cost of operations and maintenance at the 
        laboratories and centers.
            (5) The cost of environmental remediation at the 
        laboratories and centers.
    (d) Report.--Not later than May 1, 1996, the Secretary of Defense 
shall submit to the congressional defense committees a report on the 
plan.
    (e) Limitation.--Of the amounts appropriated or otherwise made 
available pursuant to an authorization in section 201 for the central 
test and evaluation investment development program, not more than 40 
percent may be obligated before the report required by subsection (d) 
is submitted to Congress.

SEC. 260. AERONAUTICAL RESEARCH AND TEST CAPABILITIES ASSESSMENT.

    (a) Policy.--(1) It is in the Nation's long-term national security 
interests to maintain preeminence in the area of aeronautical research 
and test capabilities.
    (2) Continued advances in aeronautical science and engineering are 
critical to sustaining the strategic and tactical air superiority of 
the United States and coalition forces, as well as United States 
economic security and international aerospace leadership.
    (3) Encouragement of active Department of Defense partnership with 
other Government agencies, academic institutions, and private industry 
to develop, maintain, and enhance aeronautical research and test 
capabilities is in the national security and economic interest of the 
Department and the United States.
    (b) Review.--(1) In pursuit of the aeronautical research and test 
capabilities policy set forth in subsection (a), the Secretary of 
Defense shall conduct a comprehensive review of the aeronautical 
research and test facilities and capabilities of the United States in 
order to assess the current condition of such facilities and 
capabilities.
    (2) The review shall identify options for providing affordable, 
operable, reliable, and responsive long-term aeronautical research and 
test capabilities for military and civilian purposes and for the 
organization and conduct of such capabilities within the Department or 
through shared operations with other Government agencies, academic 
institutions, and private industry. The review also shall set forth in 
detail the projected costs of such options, including costs of 
acquisition and technical and financial arrangements (including the use 
of Government facilities for reimbursable private use).
    (c) Report.--Not later than March 1, 1996, the Secretary of Defense 
shall submit to the congressional defense committees a report setting 
forth in detail the findings of the review required by subsection (b). 
The report shall include recommendations on the most efficient and 
economic means of developing, maintaining, and continually modernizing 
aeronautical research and test capabilities to meet current, planned, 
and prospective military and civilian needs.
SEC. 261. LIMITATION ON T-38 AVIONICS UPGRADE PROGRAM.

    (a) Requirement.--The Secretary of Defense shall ensure that, in 
evaluating proposals submitted in response to a solicitation issued for 
a contract for the T-38 Avionics Upgrade Program, the proposal of an 
entity may not be considered unless--
            (1) in the case of an entity that conducts substantially 
        all of its business in a foreign country, the foreign country 
        provides equal access to similar contract solicitations in that 
        country to United States entities; and
            (2) in the case of an entity that conducts business in the 
        United States but that is owned or controlled by a foreign 
        government or by an entity incorporated in a foreign country, 
        the foreign government or foreign country of incorporation 
        provides equal access to similar contract solicitations in that 
        country to United States entities.
    (b) Definition.--In this section, the term ``United States entity'' 
means an entity that is owned or controlled by persons a majority of 
whom are United States citizens.
SEC. 262. CROSS REFERENCE TO CONGRESSIONAL DEFENSE POLICY CONCERNING 
              NATIONAL TECHNOLOGY AND INDUSTRIAL BASE, REINVESTMENT, 
              AND CONVERSION IN OPERATION OF DEFENSE RESEARCH AND 
              DEVELOPMENT PROGRAMS.

    (a) Section 2358 Projects.--Section 2358(a)(2)(B) of title 10, 
United States Code, is amended by inserting before the period the 
following: ``and advance the defense policies and objectives specified 
in section 2501 of this title''.
    (b) Section 2371 Projects.--Section 2371(a) of such title is 
amended by inserting before the period in the first sentence the 
following: ``for the purpose of advancing the defense policies and 
objectives specified in section 2501 of this title''.
SEC. 263. DEMILITARIZATION OF CONVENTIONAL MUNITIONS, ROCKETS, AND 
              EXPLOSIVES.

    Of the amount appropriated pursuant to the authorization in section 
201 for the joint Department of Defense-Department of Energy munitions 
technology development program (PE 63225D), $15,000,000 shall be 
available for cooperative development and demonstration of processes 
that comply with applicable environmental laws for the demilitarization 
and disposal of unserviceable, obsolete, or nontreaty compliant 
munitions, rocket motors, and explosives. In carrying out such 
development and demonstration, the Secretary of Defense and the 
Secretary of Energy should consider a number of potential technologies, 
including super-critical water oxidation, molten metal pyrolisis, 
plasma arc, catalytic fluidized-bed oxidation, molten salt oxidation, 
incineration, critical fluid extraction and ingredient recovery, and 
underground contained burning.
SEC. 264. FIBER OPTIC ACOUSTIC SENSOR SYSTEM.

    (a) Fiber Optic Acoustic Sensor System.--Of the amount appropriated 
pursuant to the authorization in section 201, $28,181,000 shall be 
available for fiscal year 1996 for the advanced submarine combat 
systems development program (PE 63504N). Of that amount, $6,900,000 
shall be available for research and development of a fiber optic 
acoustic sensor system, including the development of common optical 
towed arrays.
    (b) Offset.--The amount authorized in section 201 for the advanced 
submarine systems development program (PE 63561N) is hereby reduced by 
$6,900,000.
SEC. 265. JOINT TARGETING SUPPORT SYSTEM TESTBED.

    (a) Joint Targeting Support System Testbed.--The amount authorized 
in section 201(2) for theater mission planning (project A1784) is 
hereby increased by $10,000,000, to be used to establish a joint 
targeting support system testbed (in PE 0204229N).
    (b) Offset.--The amount authorized in section 201(2) for the 
Tomahawk (project A0545) is hereby reduced by $10,000,000.
                  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 1996 
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, $19,339,936,000.
            (2) For the Navy, $21,677,510,000.
            (3) For the Marine Corps, $2,603,622,000.
            (4) For the Air Force, $18,984,162,000.
            (5) For Defense-wide activities, $10,680,371,000.
            (6) For the Army Reserve, $1,139,591,000.
            (7) For the Naval Reserve, $838,042,000.
            (8) For the Marine Corps Reserve, $91,783,000.
            (9) For the Air Force Reserve, $1,507,447,000.
            (10) For the Army National Guard, $2,394,108,000.
            (11) For the Air National Guard, $2,734,221,000.
            (12) For the Defense Inspector General, $177,226,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $6,521,000.
            (14) For Environmental Restoration, Defense, 
        $1,422,200,000.
            (15) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $680,432,000.
            (16) For Medical Programs, Defense, $9,876,525,000.
            (17) For Summer Olympics, $15,000,000.
            (18) For Cooperative Threat Reduction programs, 
        $200,000,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $50,000,000.
SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 1996 
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 Business Operations Fund, $878,700,000.
            (2) For the National Defense Sealift Fund, $1,574,220,000.
SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 1996 
from the Armed Forces Retirement Home Trust Fund the sum of $59,120,000 
for the operation of the Armed Forces Retirement Home, including the 
United States Soldiers' and Airmen's Home and the Naval Home.
SEC. 304. OFFICE OF ECONOMIC ADJUSTMENT.

    Of the amount authorized in section 301(5) for Defense-wide 
activities, $60,578,000 is for the Office of Economic Adjustment of the 
Department of Defense.
              Subtitle B--Defense Business Operations Fund

SEC. 311. CODIFICATION OF DEFENSE BUSINESS OPERATIONS FUND.

    (a) Management of Working-Capital Funds.--(1) Chapter 131 of title 
10, United States Code, is amended by inserting after section 2215 the 
following new section:
``Sec. 2216. Defense Business Operations Fund
    ``(a) Management of Working-Capital Funds and Certain Activities.--
The Secretary of Defense may manage the performance of the working-
capital funds and industrial, commercial, and support type activities 
described in subsection (b) through the fund known as the Defense 
Business Operations Fund, which is established on the books of the 
Treasury. Except for the funds and activities specified in subsection 
(b), no other functions, activities, funds, or accounts of the 
Department of Defense may be managed through the Fund.
    ``(b) Funds and Activities Included.--The funds and activities 
referred to in subsection (a) are the following:
            ``(1) Working-capital funds established under section 2208 
        of this title and in existence on December 5, 1991.
            ``(2) Those activities that, on December 5, 1991, were 
        funded through the use of a working-capital fund established 
        under that section.
            ``(3) The Defense Finance and Accounting Service.
            ``(4) The Defense Industrial Plant Equipment Center.
            ``(5) The Defense Commissary Agency.
            ``(6) The Defense Technical Information Service.
            ``(7) The Defense Reutilization and Marketing Service.
    ``(c) Separate Accounting, Reporting, and Auditing of Funds and 
Activities.--(1) The Secretary of Defense shall provide in accordance 
with this subsection for separate accounting, reporting, and auditing 
of funds and activities managed through the Fund.
    ``(2) The Secretary shall maintain the separate identity of each 
fund and activity managed through the Fund that (before the 
establishment of the Fund) was managed as a separate fund or activity.
    ``(3) The Secretary shall maintain separate records for each 
function for which payment is made through the Fund and which (before 
the establishment of the Fund) was paid directly through 
appropriations, including the separate identity of the appropriation 
account used to pay for the performance of the function.
    ``(d) Charges for Goods and Services Provided Through the Fund.--
(1) Charges for goods and services provided through the Fund shall 
include the following amounts:
            ``(A) Amounts necessary to recover the full costs of--
                    ``(i) the development, implementation, operation, 
                and maintenance of systems supporting the wholesale 
                supply and maintenance activities of the Department of 
                Defense; and
                    ``(ii) the use of members of the armed forces in 
                the provision of the goods and services, computed by 
                calculating, to the maximum extent practicable, such 
                costs as if employees of the Department of Defense were 
                used in the provision of the goods and services.
            ``(B) Amounts for depreciation of capital assets, set in 
        accordance with generally accepted accounting principles.
            ``(C) Amounts necessary to recover the full cost of the 
        operation of the Defense Finance Accounting Service.
    ``(2) Charges for goods and services provided through the Fund may 
not include the following amounts:
            ``(A) Amounts necessary to recover the costs of a military 
        construction project (as defined in section 2801(b) of this 
        title), other than a minor construction project financed by the 
        Fund pursuant to section 2805(c)(1) of this title.
            ``(B) Amounts necessary to cover costs incurred in 
        connection with the closure or realignment of a military 
        installation.
    ``(e) Capital Asset Subaccount.--(1) Amounts charged for 
depreciation of capital assets pursuant to subsection (d)(1)(B) shall 
be credited to a separate capital asset subaccount established within 
the Fund.
    ``(2) The Secretary of Defense may award contracts for capital 
assets of the Fund in advance of the availability of funds in the 
subaccount.
    ``(f) Procedures For Accumulation of Funds.--The Secretary of 
Defense shall establish billing procedures to ensure that the balance 
in the Fund does not exceed the amount necessary to provide for the 
working capital requirements of the Fund, as determined by the 
Secretary.
    ``(g) Purchase From Other Sources.--The Secretary of Defense or the 
Secretary of a military department may purchase goods and services that 
are available for purchase from the Fund from a source other than the 
Fund if the Secretary determines that such source offers a more 
competitive rate for the goods and services than the Fund offers.
    ``(h) Annual Reports and Budget.--The Secretary of Defense shall 
annually submit to Congress, at the same time that the President 
submits the budget under section 1105 of title 31, the following:
            ``(1) A detailed report that contains a statement of all 
        receipts and disbursements of the Fund (including such a 
        statement for each subaccount of the Fund) for the year for 
        which the report is submitted.
            ``(2) A detailed proposed budget for the operation of the 
        Fund for the fiscal year for which the budget is submitted.
            ``(3) A comparison of the amounts actually expended for the 
        operation of the Fund for the previous fiscal year with the 
        amount proposed for the operation of the Fund for that fiscal 
        year in the President's budget.
            ``(4) A report on the capital asset subaccount of the Fund 
        that contains the following information:
                    ``(A) The opening balance of the subaccount as of 
                the beginning of the fiscal year in which the report is 
                submitted.
                    ``(B) The estimated amounts to be credited to the 
                subaccount in the fiscal year in which the report is 
                submitted.
                    ``(C) The estimated amounts of outlays to be paid 
                out of the subaccount in the fiscal year in which the 
                report is submitted.
                    ``(D) The estimated balance of the subaccount at 
                the end of the fiscal year in which the report is 
                submitted.
                    ``(E) A statement of how much of the estimated 
                balance at the end of the fiscal year in which the 
                report is submitted will be needed to pay outlays in 
                the immediately following fiscal year that are in 
                excess of the amount to be credited to the subaccount 
                in the immediately following fiscal year.
    ``(i) Definitions.--In this section:
            ``(1) The term `capital assets' means the following capital 
        assets that have a development or acquisition cost of not less 
        than $15,000:
                    ``(A) Minor construction projects financed by the 
                Fund pursuant to section 2805(c)(1) of this title.
                    ``(B) Automatic data processing equipment, 
                software, other equipment, and other capital 
                improvements.
            ``(2) The term `Fund' means the Defense Business Operations 
        Fund.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2215 the 
following new item:

``2216. Defense Business Operations Fund.''.
    (b) Conforming Repeals.--The following provisions of law are hereby 
repealed:
            (1) Subsections (b), (c), (d), and (e) of section 311 of 
        the National Defense Authorization Act for Fiscal Year 1995 
        (Public Law 103-337; 10 U.S.C. 2208 note).
            (2) Subsections (a) and (b) of section 333 of the National 
        Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
        160; 10 U.S.C. 2208 note).
            (3) Section 342 of the National Defense Authorization Act 
        for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 2208 note).
            (4) Section 316 of the National Defense Authorization Act 
        for Fiscal Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 
        2208 note).
            (5) Section 8121 of the Department of Defense 
        Appropriations Act, 1992 (Public Law 102-172; 10 U.S.C. 2208 
        note).
SEC. 312. RETENTION OF CENTRALIZED MANAGEMENT OF DEFENSE BUSINESS 
              OPERATIONS FUND AND PROHIBITION ON FURTHER EXPANSION OF 
              FUND.

    (a) Centralized Management.--Subsection (a) of section 2216 of 
title 10, United States Code, as added by section 311(a), is amended--
            (1) by inserting ``(1)'' before ``The Secretary of 
        Defense''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Management of the Fund, including management of cash balances 
in the Fund, shall be exercised in the Office of the Secretary of 
Defense under the immediate authority of the Under Secretary of Defense 
(Comptroller). The Fund shall be treated as a single account for 
purposes of subchapter III of chapter 13 and subchapter II of chapter 
15 of title 31.''.
    (b) Expansion of Fund.--Such subsection is further amended by 
adding at the end of paragraph (1) the following new sentence: ``The 
Secretary may not convert to management through the Fund any function, 
activity, fund, or account of the Department of Defense that is not 
managed through the Fund as of the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 1996.''.
SEC. 313. CHARGES FOR GOODS AND SERVICES PROVIDED THROUGH DEFENSE 
              BUSINESS OPERATIONS FUND AND TERMINATION OF ADVANCE 
              BILLING PRACTICES.

    (a) Charges Included.--Paragraph (1)(A)(ii) of subsection (d) of 
section 2216 of title 10, United States Code, as added by section 
311(a), is amended by striking out ``as if employees of the Department 
of Defense were used in the provision of the goods and services'' and 
inserting in lieu thereof ``using the pay and allowances of the 
members''.
    (b) Charges Excluded.--Paragraph (2) of such subsection is amended 
by adding at the end the following new subparagraph:
            ``(C) Amounts necessary to recover the costs of functions 
        designated by the Secretary of Defense as mission critical, 
        such as ammunition handling safety, and amounts for ancillary 
        tasks not directly related to the mission of the function or 
        activity managed through the Fund.''.
    (c) Termination of Advance Billing Practices.--Such subsection is 
further amended by adding at the end the following new paragraph:
    ``(3) After September 30, 1996, functions and activities managed 
through the Fund may not use advance billing in the provision of goods 
and services to customers.''.
SEC. 314. ANNUAL PROPOSED BUDGET FOR OPERATION OF DEFENSE BUSINESS 
              OPERATIONS FUND.

    Subsection (h)(2) of section 2216 of title 10, United States Code, 
as added by section 311(a), is amended by adding at the end the 
following new sentence: ``The proposed budget shall include the amount 
necessary to cover the operating losses, if any, of the Fund for the 
previous fiscal year.''.

SEC. 315. REDUCTION IN REQUESTS FOR TRANSPORTATION FUNDED THROUGH 
              DEFENSE BUSINESS OPERATIONS FUND.

    (a) Reduction.--The Secretary of Defense shall direct the heads of 
Defense-wide activities and the Secretaries of the military departments 
to reduce requests during fiscal year 1996 for purchasing 
transportation from the transportation accounts of the Defense Business 
Operations Fund by $70,000,000 below the level of such requests during 
fiscal year 1995. The rates charged for transportation funded through 
the Defense Business Operations Fund shall be reduced to reflect the 
effect of the reduced requests on overhead costs.
    (b) Report Required.--Not later than March 1, 1996, the Secretary 
of Defense shall submit to Congress a report regarding--
            (1) the effect on the Defense transportation organization 
        of implementing certain consolidation proposals, such as the 
        elimination of duplication in the component command structure; 
        and
            (2) the extent that transportation overhead, the cost of 
        which is passed on to customers, can be significantly reduced 
        without adversely affecting mobilization requirements.
                  Subtitle C--Environmental Provisions

SEC. 321. CLARIFICATION OF SERVICES AND PROPERTY THAT MAY BE EXCHANGED 
              TO BENEFIT THE HISTORICAL COLLECTION OF THE ARMED FORCES.

    Section 2572(b) of title 10, United States Code, is amended in 
paragraph (1) by striking out ``not needed by the armed forces'' and 
all that follows through the end of the paragraph and inserting in lieu 
thereof the following: ``not needed by the armed forces for any of the 
following items or services if they directly benefit the historical 
collection of the armed forces:
            ``(A) Similar items held by any individual, organization, 
        institution, agency, or nation.
            ``(B) Conservation supplies, equipment, facilities, or 
        systems.
            ``(C) Search, salvage, or transportation services.
            ``(D) Restoration, conservation, or preservation services.
            ``(E) Educational programs.''.

SEC. 322. ADDITION OF AMOUNTS CREDITABLE TO DEFENSE ENVIRONMENTAL 
              RESTORATION ACCOUNT.

    Section 2703(e) of title 10, United States Code is amended to read 
as follows:
    ``(e) Amounts Recovered.--The following amounts shall be credited 
to the transfer account:
            ``(1) Amounts recovered under section 107 of CERCLA for 
        response actions of the Secretary.
            ``(2) Any other amounts recovered by the Secretary or the 
        Secretary of the military department concerned from a 
        contractor, insurer, surety, or other person to reimburse the 
        Department of Defense for any expenditure for environmental 
        response activities.''.

SEC. 323. REPEAL OF CERTAIN ENVIRONMENTAL EDUCATION PROGRAMS.

    Sections 1333 and 1334 of the National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2701 note) are 
repealed.

SEC. 324. REPEAL OF LIMITATION ON OBLIGATION OF AMOUNTS TRANSFERRED 
              FROM ENVIRONMENTAL RESTORATION TRANSFER ACCOUNT.

    (a) Repeal of Limitation.--Section 2703 of title 10, United States 
Code, is further amended--
            (1) by striking out subsection (c); and
            (2) by redesignating subsection (d), subsection (e) (as 
        amended by section 322), and subsection (f) as subsections (c), 
        (d), and (e), respectively.
    (b) Effect on Contracts.--Nothing in the amendment made by 
subsection (a) shall be considered to negate or invalidate any legal 
protection or legal defense available to the Department of Defense 
under ``force majeure'' clauses in environmental restoration contracts 
or agreements existing on the date of the enactment of this Act.
SEC. 325. ELIMINATION OF AUTHORITY TO TRANSFER AMOUNTS FOR 
              TOXICOLOGICAL PROFILES.

    Section 2704 of title 10, United States Code, is amended in 
subsections (c) and (d)(3)--
            (1) by striking out ``, such sums from amounts appropriated 
        to the Department of Defense,''; and
            (2) by striking out ``, including the manner for 
        transferring funds and personnel and for coordination of 
        activities under this section''.

SEC. 326. SENSE OF CONGRESS ON USE OF DEFENSE ENVIRONMENTAL RESTORATION 
              ACCOUNT.

    It is the sense of Congress that the Secretary of Defense should 
make every effort to limit, by the end of fiscal year 1997, spending 
for administration, support, studies, and investigations associated 
with the Defense Environmental Restoration Account to 20 percent of the 
total funding for that account.
Subtitle D--Civilian Employees and Nonappropriated Fund Instrumentality 
                               Employees
SEC. 331. MANAGEMENT OF DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL.

    Section 129 of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by inserting ``(including any limitation on 
                full-time equivalent positions)'' before the period at 
                the end of the second sentence; and
                    (B) by adding at the end the following new 
                sentence: ``The Secretary shall not be required to make 
                a reduction in the number of full-time equivalent 
                positions in the Department of Defense unless such 
                reduction is necessary due to a reduction in funds 
                available to the Department or is required under a law 
                that is enacted after the date of the enactment of the 
                National Defense Authorization Act for Fiscal Year 1996 
                and that refers specifically to this subsection.''; and
            (2) by adding at the end the following new subsection:
    ``(d) With respect to each budget activity within an appropriation 
for any fiscal year for operations and maintenance, the Secretary of 
Defense shall ensure that there are employed during that fiscal year 
employees in the number, and of the type and with the skill mix, that 
are necessary to carry out the functions within that budget activity 
for which funds are provided for that fiscal year.''.

SEC. 332. MANAGEMENT OF DEPOT EMPLOYEES.

    (a) Depot Employees.--Chapter 146 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 2472. Management of depot employees
    ``(a) Prohibition on Management by End Strength.--The civilian 
employees of the Department of Defense involved in the depot-level 
maintenance and repair of materiel may not be managed on the basis of 
any end-strength constraint or limitation on the number of such 
employees who may be employed on the last day of a fiscal year. Such 
employees shall be managed solely on the basis of the available 
workload and the funds made available for such depot-level maintenance 
and repair.
    ``(b) Annual Report.--Not later than 60 days after the beginning of 
each fiscal year, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report on the number of 
employees employed and expected to be employed by the Department of 
Defense during that fiscal year to perform depot-level maintenance and 
repair of materiel. The report shall indicate whether that number is 
sufficient to perform the depot-level maintenance and repair functions 
for which funds have been appropriated for that fiscal year for 
performance by Department of Defense employees.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 146 of such title is amended by adding at the end the following 
new item:

``2472. Management of depot employees.''.
SEC. 333. CONVERSION TO PERFORMANCE BY CIVILIAN EMPLOYEES OF ACTIVE-
              DUTY POSITIONS.

    (a) Conversion to Civilian Performance.--During fiscal year 1996, 
the Secretary of Defense shall change to performance by employees of 
the Department of Defense the performance of not less than 10,000 
positions in the Department of Defense that, as of September 30, 1995, 
were designated to be performed by members of the Armed Forces on 
active duty.
    (b) Implementation Plan.--Not later than March 31, 1996, 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 plan for the implementation of subsection (a).
SEC. 334. PERSONNEL ACTIONS INVOLVING EMPLOYEES OF NONAPPROPRIATED FUND 
              INSTRUMENTALITIES.

    (a) Clarification of Definition of Nonappropriated Fund 
Instrumentality Employee.--Subsection (a)(1) of section 1587 of title 
10, United States Code, is amended by adding at the end the following 
new sentence: ``Such term includes a civilian employee of a support 
organization within the Department of Defense or a military department, 
such as the Defense Finance and Accounting Service, who is paid from 
nonappropriated funds on account of the nature of the employee's 
duties.''.
    (b) Direct Reporting of Violations.--Subsection (e) of such section 
is amended in the second sentence by inserting before the period the 
following: ``and to permit the direct reporting of alleged violations 
of subsection (b) to the Inspector General of the Department of 
Defense''.
    (c) Technical Amendment.--Subsection (a)(1) of such section is 
further amended by striking out ``Navy Resale and Services Support 
Office'' and inserting in lieu thereof ``Navy Exchange Service 
Command''.
    (d) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 1587. Employees of nonappropriated fund instrumentalities: 
              personnel actions''.
    (2) The item relating to section 1587 in the table of sections at 
the beginning of chapter 81 of such title is amended to read as 
follows:

``1587. Employees of nonappropriated fund instrumentalities: personnel 
                            actions.''.
SEC. 335. LIMITATION ON PROVISION OF OVERSEAS LIVING QUARTERS 
              ALLOWANCES FOR NONAPPROPRIATED FUND INSTRUMENTALITY 
              EMPLOYEES.

    (a) Conforming Allowance to Allowances for Other Civilian 
Employees.--Subject to subsection (b), any overseas living quarters 
allowance paid from nonappropriated funds and provided to a 
nonappropriated fund instrumentality employee after the date of the 
enactment of this Act may not exceed the amount of a quarters allowance 
provided under subchapter III of chapter 59 of title 5 to a similarly 
situated civilian employee of the Department of Defense paid from 
appropriated funds.
    (b) Application to Certain Current Employees.--In the case of a 
nonappropriated fund instrumentality employee who, as of the date of 
the enactment of this Act, receives an overseas living quarters 
allowance under any other authority, subsection (a) shall apply to such 
employee only after the earlier of--
            (1) September 30, 1998; or
            (2) the date on which the employee otherwise ceases to be 
        eligible for such an allowance under such other authority.
    (c) Nonappropriated Fund Instrumentality Employee Defined.--For 
purposes of this section, the term ``nonappropriated fund 
instrumentality employee'' has the meaning given such term in section 
1587(a)(1) of title 10, United States Code.

SEC. 336. OVERTIME EXEMPTION FOR NONAPPROPRIATED FUND EMPLOYEES.

    Section 6121(2) of title 5, United States Code, is amended to read 
as follows:
            ``(2) `employee' has the meaning given it by section 
        2105(a) and also includes those paid from nonappropriated funds 
        of the Army and Air Force Exchange Service, Navy Ship's Stores 
        Ashore, Navy exchanges, Marine Corps exchanges, Coast Guard 
        exchanges, and other instrumentalities of the United States 
        under the jurisdiction of the armed forces conducted for the 
        comfort, pleasure, contentment, and mental and physical 
        improvement of personnel of the armed forces;''.

SEC. 337. CONTINUED HEALTH INSURANCE COVERAGE.

    Section 8905a(d)(4) of title 5, United States Code, is amended--
            (1) in subparagraph (A), by inserting ``, or a voluntary 
        separation from a surplus position,'' after ``an involuntary 
        separation from a position''; and
            (2) by adding at the end the following new subparagraph:
    ``(C) For the purpose of this paragraph, `surplus position' means a 
position which is identified in pre-reduction in force planning as no 
longer required, and which is expected to be eliminated under formal 
reduction-in-force procedures.''.

SEC. 338. CREDITABILITY OF CERTAIN NAFI SERVICE UNDER THE FEDERAL 
              EMPLOYEES' RETIREMENT SYSTEM.

    (a) In General.--Subject to subsections (b) and (c), upon 
application to the Office of Personnel Management, any individual who, 
on the date of making such application, is an employee within the 
Department of Defense or the legislative branch of the Government shall 
be allowed credit under chapter 84 of title 5, United States Code (for 
purposes of benefits payable out of the Fund) for any service if--
            (1) such service was performed by such individual as an 
        employee of a nonappropriated fund instrumentality of the 
        Department of Defense or the Coast Guard, described in section 
        2105(c) of such title; and
            (2) such individual has served continuously, since moving 
        (after December 31, 1986, and without a break in service of 
        more than 3 days) from a nonappropriated fund instrumentality 
        referred to in paragraph (1), in--
                    (A) the Department of Defense; or
                    (B) the legislative branch of the Government.
    (b) Conditions.--An individual may not be allowed credit for 
service under this section unless--
            (1) an application is filed before the deadline under 
        subsection (c);
            (2) such individual has been subject to chapter 84 of title 
        5, United States Code, since moving in the manner described in 
        subsection (a)(2); and
            (3) such individual deposits to the credit of the Fund an 
        amount equal to 1.3 percent of the basic pay paid to such 
        individual for such service, with interest (computed in 
        accordance with paragraphs (2) and (3) of section 8334(e) of 
        title 5, United States Code).
    (c) Deadline.--An application under this section may not be filed 
after--
            (1) the end of the 6-month period beginning on the date of 
        the enactment of this Act; or
            (2) if earlier, the date on which a written determination 
        is made by the Office of Personnel Management that the 
        actuarial present value of all benefits payable as a result of 
        the enactment of this section has reached $50,000,000.
    (d) Regulations.--The Office of Personnel Management shall 
prescribe any regulations necessary to carry out this section.
    (e) Definition.--For purposes of this section, the term ``Fund'' 
means the Civil Service Retirement and Disability Fund under section 
8348 of title 5, United States Code.
  Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities
SEC. 341. OPERATION OF COMMISSARY STORE SYSTEM.

    (a) Cooperation With Other Entities.--Section 2482 of title 10, 
United States Code, is amended--
            (1) in the section heading, by striking out ``private'';
            (2) by inserting ``(a) Private Operation.--'' before 
        ``Private persons''; and
            (3) by adding at the end the following new subsection:
    ``(b) Contracts With Other Agencies and Instrumentalities.--(1) The 
Defense Commissary Agency, and other agencies of the Department of 
Defense that support the operation of the commissary store system, may 
enter into contracts or other agreements with other appropriated fund 
or nonappropriated fund instrumentalities of the Department of Defense 
or other departments or agencies of the United States to facilitate 
efficiency in the management and operation of the commissary store 
system.
    ``(2) A commissary store operated by a nonappropriated fund 
instrumentality shall be operated in accordance with section 2484 of 
this title. Subject to such section, the Secretary of Defense may 
authorize a transfer of goods, supplies, and facilities of, and funds 
appropriated for, the Defense Commissary Agency to a nonappropriated 
fund instrumentality operating a commissary store.''.
    (b) Authorization for Distributors to Serve as Vendor Agents.--Such 
section is further amended by adding after subsection (b), as added by 
subsection (a), the following new subsection:
    ``(c) Payments to Vendor Agents.--If a distributor for a vendor of 
resale products under contract to the Defense Commissary Agency is 
designated as an agent by and for the vendor, the distributor may 
invoice the agency and accept payments from the agency under the 
vendor's contract. A distributor designated as a agent for purposes of 
this subsection may request payment for more than one product of the 
vendor on the same invoice. All payments made by the agency to a 
distributor designated by a vendor as the vendor's agent shall be 
considered payments under the vendor's contract, and the payments shall 
fulfill the payment obligations of the United States in the same manner 
as if the payments had been made directly to the vendor.''.
    (c) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 147 of such title is 
amended to read as follows:

``2482. Commissary stores: operation.''.
SEC. 342. PRICING POLICIES FOR COMMISSARY STORE MERCHANDISE.

    Section 2486(d)(1) of title 10, United States Code, is amended--
            (1) by striking out ``each item'' and inserting in lieu 
        thereof ``items''; and
            (2) by striking out ``actual product cost of the item'' and 
        inserting in lieu thereof ``total average product cost of 
        merchandise sold''.
SEC. 343. LIMITED RELEASE OF COMMISSARY STORES SALES INFORMATION TO 
              MANUFACTURERS, DISTRIBUTORS, AND OTHER VENDORS DOING 
              BUSINESS WITH DEFENSE COMMISSARY AGENCY.

    Section 2487(b) of title 10, United States Code, is amended in the 
second sentence by inserting before the period the following: ``unless 
the agreement is between the Defense Commissary Agency and a 
manufacturer, distributor, or other vendor doing business with the 
Agency and is restricted to information directly related to merchandise 
provided by that manufacturer, distributor, or vendor''.
SEC. 344. ECONOMICAL DISTRIBUTION OF DISTILLED SPIRITS BY 
              NONAPPROPRIATED FUND INSTRUMENTALITIES.

    (a) Economical Distribution.--Subsection (a)(1) of section 2488 of 
title 10, United States Code, is amended by inserting after ``most 
competitive source'' the following: ``and distributed in the most 
economical manner''.
    (b) Determination of Most Economical Distribution Method.--Such 
section is further amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c)(1) In the case of covered alcoholic beverage purchases of 
distilled spirits, to determine whether a nonappropriated fund 
instrumentality of the Department of Defense represents the most 
economical method of distribution to package stores, the Secretary of 
Defense shall consider all components of the distribution costs 
incurred by the nonappropriated fund instrumentality, such as overhead 
costs (including management, logistics, administration, depreciation, 
and utilities), the costs of carrying inventory, and handling and 
distribution costs.
    ``(2) If the use of a private distributor would subject covered 
alcoholic beverage purchases of distilled spirits to direct or indirect 
State taxation, a nonappropriated fund instrumentality shall be 
considered to be the most economical method of distribution regardless 
the results of the determination under paragraph (1).
    ``(3) The Secretary shall use the agencies performing audit 
functions on behalf of the armed forces and the Inspector General of 
the Department of Defense to make determinations under this 
subsection.''.
SEC. 345. TRANSPORTATION BY COMMISSARIES AND EXCHANGES TO OVERSEAS 
              LOCATIONS.

    (a) In General.--Chapter 157 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2643. Commissary and exchange services: transportation overseas
    ``The Secretary of Defense shall give the officials responsible for 
operation of commissaries and military exchanges the authority to 
negotiate directly with private carriers for the most cost-effective 
transportation of commissary and exchange supplies by sea without 
relying on the Military Sealift Command or the Military Traffic 
Management Command. Section 2631 of this title, regarding the 
preference for vessels of the United States or belonging to the United 
States in the transportation of supplies by sea, shall apply to the 
negotiation of transportation contracts under the authority of this 
section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2643. Commissary and exchange services: transportation overseas.''.
SEC. 346. DEMONSTRATION PROGRAM FOR UNIFORM FUNDING OF MORALE, WELFARE, 
              AND RECREATION ACTIVITIES AT CERTAIN MILITARY 
              INSTALLATIONS.

    (a) Demonstration Program Required.--The Secretary of Defense shall 
conduct a demonstration program at six military installations, under 
which funds appropriated for the support of morale, welfare, and 
recreation programs at the installations are combined with 
nonappropriated funds available for such programs and treated as 
nonappropriated funds. Under this demonstration program, the combined 
appropriated funds shall be expended pursuant to the laws and 
regulations that apply to nonappropriated funds.
    (b) Covered Military Installations.--The Secretary of Defense shall 
select two military installations from each military department to 
participate in the demonstration program.
    (c) Effect on Civilian Employees.--Civilian employees of the 
Department of Defense who are normally paid using the appropriated 
funds that are combined under subsection (a) shall be considered to be 
nonappropriated fund instrumentality employees unless they continue to 
be paid using other appropriated funds. Any converted employee shall 
automatically revert to the employee's former status at the end of the 
program or upon any action by management to terminate the employee, 
whichever occurs first. Any converted employee shall retain retirement 
and medical benefits under the employee's former status.
    (d) Period of Demonstration Program.--The demonstration program 
shall terminate at the end of the first full fiscal year beginning on 
or after the date of the enactment of this Act.
    (e) Report.--Not later than 90 days after the end of the 
demonstration program, the Secretary of Defense shall submit to 
Congress a report describing the results of the demonstration program.
SEC. 347. CONTINUED OPERATION OF BASE EXCHANGE MART AT FORT WORTH NAVAL 
              AIR STATION AND AUTHORITY TO EXPAND BASE EXCHANGE MART 
              PROGRAM.

    (a) Continued Operation of Base Exchange Mart.--Section 375 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public Law 
103-337; 108 Stat. 2736) is amended by striking out ``, until December 
31, 1995,''.
    (b) Expansion of Base Exchange Mart Program.--(1) Subject to 
paragraph (2), the Secretary of Defense may provide for the operation 
by a nonappropriated fund instrumentality of not more than ten combined 
exchange and commissary stores, in which groceries are sold at five 
percent above cost and other items are sold at the typical military 
exchange markup.
    (2) The Secretary may select a military installation as the 
location for a combined exchange and commissary store only if--
            (A) the installation has been or is selected for closure or 
        realignment; or
            (B) the continued operation of a separate military exchange 
        and commissary store at the installation is not economically 
        feasible.
    (3) If a nonappropriated fund instrumentality incurs a loss in 
operating a commissary store as a result of the pricing requirements 
specified in paragraph (1), the Secretary may authorize a transfer of 
funds appropriated for the Defense Commissary Agency to the 
nonappropriated fund instrumentality to offset the loss. However, the 
total amount of appropriated funds transferred during a fiscal year to 
support the operation of a commissary store may not exceed an amount 
equal to 25 percent of the appropriated funds provided during the last 
full year of operation of the commissary store by the Defense 
Commissary Agency.
    (4) The combined military exchange and commissary stores authorized 
under this subsection shall include the combined military exchange and 
commissary store operated at the Naval Air Station Fort Worth, Joint 
Reserve Center, Carswell Field, Texas.
    (5) For purposes of 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.
SEC. 348. UNIFORM DEFERRED PAYMENTS PROGRAM FOR MILITARY EXCHANGES.

    (a) Use of Commercial Banking Institutions.--As soon as possible 
after the date of the enactment of this Act, the Secretary of Defense 
shall endeavor to enter into an agreement with a commercial banking 
institution under which the commercial banking institution will fund 
and operate the deferred payment programs of the Army and Air Force 
Exchange Service and Navy Exchange Service Command. To ease the 
transition to commercial operation, the Secretary may initially limit 
the agreement to one of the two military exchange services.
    (b) Uniform Exchange Credit Program.--Not later than January 1, 
1997, the Secretary shall establish a uniform deferred payment program 
for use in all military exchanges to replace the separate deferred 
payment programs currently operated by the Army and Air Force Exchange 
Service and Navy Exchange Service Command.
    (c) Report.--Not later than December 31, 1995, the Secretary of 
Defense shall submit to Congress a report describing the implementation 
of this section.
SEC. 349. AVAILABILITY OF FUNDS TO OFFSET EXPENSES INCURRED BY ARMY AND 
              AIR FORCE EXCHANGE SERVICE ON ACCOUNT OF TROOP REDUCTIONS 
              IN EUROPE.

    Of funds authorized to be appropriated under section 301(5), not 
more than $70,000,000 shall be available to the Secretary of Defense 
for transfer to the Army and Air Force Exchange Service to offset 
expenses incurred by the Army and Air Force Exchange Service on account 
of reductions in the number of members of the United States Armed 
Forces assigned to permanent duty ashore in Europe.
SEC. 350. STUDY REGARDING IMPROVING EFFICIENCIES IN OPERATION OF 
              MILITARY EXCHANGES AND OTHER MORALE, WELFARE, AND 
              RECREATION ACTIVITIES AND COMMISSARY STORES.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
regarding the manner in which greater efficiencies can be achieved in 
the operation of--
            (1) military exchanges;
            (2) other instrumentalities of the United States under the 
        jurisdiction of the Armed Forces which are conducted for the 
        comfort, pleasure, contentment, or physical or mental 
        improvement of members of the Armed Forces; and
            (3) commissary stores.
    (b) Report of Study.--Not later than March 1, 1996, the Secretary 
of Defense shall submit to Congress a report describing the results of 
the study and containing such recommendations as the Secretary 
considers appropriate to implement efficiency-building options 
identified in the study.
SEC. 351. EXTENSION OF DEADLINE FOR CONVERSION OF NAVY SHIPS' STORES TO 
              OPERATION AS NONAPPROPRIATED FUND INSTRUMENTALITIES.

    (a) Extension.--Section 371(a) of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 
7604 note) is amended by striking out ``December 31, 1995'' and 
inserting in lieu thereof ``December 31, 1996''.
    (b) Inspector General Review.--Not later than April 1, 1996, the 
Inspector General of the Department of Defense shall submit to Congress 
a report--
            (1) evaluating the costs and benefits of converting the 
        operation of all Navy ships' stores to operation by the Navy 
        Exchange Service Command, as required by section 371(a) of the 
        National Defense Authorization Act for Fiscal Year 1994 (Public 
        Law 103-160; 10 U.S.C. 7604 note); and
            (2) reviewing the Navy Audit Agency report regarding such 
        conversion prepared pursuant to section 374 of the National 
        Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
        337; 108 Stat. 2736).
                      Subtitle F--Contracting Out
SEC. 357. PROCUREMENT OF ELECTRICITY FROM MOST ECONOMICAL SOURCE.

    (a) Procurement of Electricity.--(1) Chapter 147 of title 10, 
United States Code, is amended by inserting after section 2483 the 
following new section:
``Sec. 2483a. Procurement of electricity from most economical source
    ``The Secretary of Defense shall procure electricity for use on 
military installations and by other activities and functions of the 
Department of Defense from the most economical source, as determined by 
the Secretary. The Secretary shall make the determination required by 
this section in the manner provided in section 2462 of this title.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2483 the 
following new item:

``2483a. Procurement of electricity from most economical source.''.
    (b) Effective Date; Rule of Construction.--The amendment made by 
subsection (a) shall take effect on March 1, 1996, except that the 
amendment shall not be construed to require the termination of any 
contract for the purchase of electricity for the Department of Defense 
entered into before that date.
SEC. 358. PROCUREMENT OF CERTAIN COMMODITIES FROM MOST ECONOMICAL 
              SOURCE.

    (a) Procurement of Supplies.--In the case of supplies for the 
Department of Defense procured through the General Services 
Administration as of the date of the enactment of this Act, the 
Secretary of Defense shall procure such supplies from another source if 
the Secretary determines that the source can provide the supplies at a 
lower cost. The Secretary shall make the determinations required by 
this section in the manner provided in section 2462 of title 10, United 
States Code.
    (b) Effective Date; Rule of Construction.--The amendment made by 
subsection (a) shall take effect on March 1, 1996, except that the 
amendment shall not be construed to require the termination of any 
contract between the Secretary of Defense and the General Services 
Administration entered into before that date.
SEC. 359. COMMERCIAL PROCUREMENT OF PRINTING AND DUPLICATION SERVICES.

    Consistent with the requirements of title 44, United States Code, 
during fiscal year 1996, the Defense Printing Service shall 
competitively procure a minimum of 70 percent of its printing and 
duplication services.
SEC. 360. DIRECT DELIVERY OF ASSORTED CONSUMABLE INVENTORY ITEMS OF 
              DEPARTMENT OF DEFENSE.

    To reduce the expense and necessity of maintaining extensive 
warehouses for consumable inventory items of the Department of Defense, 
the Secretary of Defense shall arrange for direct vendor delivery of 
food, clothing, medical and pharmaceutical supplies, automotive, 
electrical, fuel, and construction supplies, and other consumable 
inventory items for military installations throughout the United 
States. The Secretary shall complete implementation of this direct 
vendor delivery system not later than September 30, 1996.
SEC. 361. PRIVATE OPERATION OF FUNCTIONS OF DEFENSE REUTILIZATION AND 
              MARKETING SERVICE.

    (a) Solicitation of Proposals.--(1) Not later than March 15, 1996, 
the Secretary of Defense shall solicit for the selected performance by 
commercial entities of those functions of the Defense Reutilization and 
Marketing Service, a unit of the Defense Logistics Agency, for which 
the Secretary determines that privatization would result in cost 
savings for the United States and the generation of additional revenues 
for the United States.
    (b) Report on Retention of Functions.--Not later than January 15, 
1996, the Secretary shall submit a report to the Congress describing 
those functions of the Defense Reutilization and Marketing Service that 
the Secretary believes should be currently retained for exclusive 
performance by civilian employees of the Department of Defense or 
military personnel and the reasons why such functions should be so 
retained.
SEC. 362. PRIVATE OPERATION OF PAYROLL FUNCTIONS OF DEPARTMENT OF 
              DEFENSE FOR PAYMENT OF CIVILIAN EMPLOYEES.

    (a) Plan on Contracting Out.--Not later than March 1, 1996, the 
Secretary of Defense shall submit to Congress a plan regarding private 
operation of payroll functions for civilian employees of the Department 
of Defense.
    (b) Implementation.--Not later than October 1, 1996, the Secretary 
shall implement the plan developed under subsection (a).
SEC. 363. DEMONSTRATION PROGRAM TO IDENTIFY UNDERDEDUCTIONS AND 
              OVERPAYMENTS MADE TO VENDORS.
    (a) Demonstration Program Required.--The Secretary of Defense shall 
conduct a demonstration program at the Defense Personnel Support 
Center, Philadelphia, Pennsylvania, to evaluate the feasibility of 
using private contractors to audit accounting and procurement records 
of the Department of Defense to identify moneys due the United States 
because of underdeductions and overpayments made to vendors. Pursuant 
to an agreement between the Secretary and one or more private 
contractors selected by the Secretary, the contractors shall perform an 
audit of accounting and procurement records of the Department for at 
least fiscal years 1993, 1994, and 1995 using commercial sector data 
processing techniques, which would compare purchase documents and 
agreements with vendor invoices to discover discrepancies in 
allowances, pricing, discounts, billback allowances, backhaul 
allowances, and freight routing instructions. The audit shall also 
attempt to identify duplicate payments and unauthorized invoice 
charges.
    (b) Bonus Payment.--From amounts made available to conduct the 
demonstration program, the Secretary may pay the contractors a 
negotiated amount not to exceed 25 percent of all amounts recovered as 
a result of the audit.
    (c) Availability of Funds.--From amounts authorized to be 
appropriated pursuant to section 301(5), not more than $5,000,000 shall 
be available to cover the costs of the demonstration program, including 
the cost of any bonus payment under subsection (b).
SEC. 364. PILOT PROGRAM TO EVALUATE POTENTIAL FOR PRIVATE OPERATION OF 
              OVERSEAS DEPENDENTS' SCHOOLS.

    (a) Pilot Program.--The Secretary of Defense may conduct a pilot 
program to assess the feasibility of using private contractors to 
operate schools of the defense dependents' education system established 
under section 1402(a) of the Defense Dependents' Education Act of 1978 
(20 U.S.C. 921(a)).
    (b) Selection of School for Program.--If the Secretary of Defense 
conducts the pilot program, the Secretary shall select one school of 
the defense dependents' education system for participation in the 
program. Under the pilot program, the Secretary shall provide for the 
operation of the school by an appropriate private contractor for not 
less than one complete school year.
    (c) Report.--Not later than 30 days after the end of the first 
school year in which the pilot program is conducted, the Secretary of 
Defense shall submit to Congress a report on the results of the 
program. The report shall include the recommendation of the Secretary 
with respect to the extent to which other schools of the defense 
dependents' education system should be operated by private contractors.
SEC. 365. PILOT PROGRAM FOR EVALUATION OF IMPROVED DEFENSE TRAVEL 
              PROCESSING PROTOTYPES.

    (a) Pilot Program Required; Location.--(1) The Secretary of 
Defense, acting through the Under Secretary of Defense (Comptroller), 
shall conduct a pilot program regarding two prototype tests of 
commercial travel applications to determine the best approach for the 
Department of Defense Travel System.
    (2) The Secretary shall conduct the pilot program at six military 
installations containing approximately equal numbers of members of the 
Armed Forces. Two installations shall be selected from each military 
department.
    (b) Description of Prototype Tests.--The two respective tests shall 
be as follows:
            (1) In this test, three installations (one for each 
        military department), with the Department of Defense acting as 
        its own integrator, will implement the travel processes 
        proposed by the task force on travel management chartered by 
        the Secretary of Defense in July 1994, and will offer specific 
        business opportunities in the services areas currently 
        utilized, namely reservations and credit card technologies.
            (2) In this test, three installations (one for each 
        military department), will contract out their entire travel 
        process, reserving only essential elements, such as travel 
        authorization, for performance by employees of the Department 
        of Defense. Particular attention will be focused on the ability 
        of the vendor to integrate all processes into a responsive, 
        reasonably priced, uniform travel system.
    (c) Conduct of Tests.--The two prototype tests shall be conducted 
as follows:
            (1) Each test must accommodate the guidelines for travel 
        management issued by the Under Secretary of Defense 
        (Comptroller).
            (2) The tests must take no more than 60 days to set up and 
        be operational for one year.
    (d) Evaluation Criteria.--The Secretary of Defense shall establish 
evaluation criteria that include, at a minimum--
            (1) aligning travel policy and cost estimates with mission 
        at the point of reservation;
            (2) using fully integrated solutions envisioned by the 
        Department of Defense travel reengineering report of January 
        1995;
            (3) matching credit card data and reservation data with 
        cost estimate data;
            (4) matching data with a trip pro forma plan to eliminate 
        the need for further approvals; and
            (5) a responsive and flexible management information system 
        for managers at all levels to monitor travel expenses 
        throughout the year, budget accurately for any future year, and 
        assess cost and value relationship regarding temporary duty 
        travel for each mission.
    (e) Plan for Program.--Before conducting the pilot program, the 
Secretary of Defense shall develop a plan for the program that 
addresses the following:
            (1) The purposes of the prototype test, including the 
        objective of reducing the total costs of managing travel by at 
        least one-half.
            (2) The methodology, duration, and anticipated costs, 
        including an arrangement whereby the contractor would receive 
        its agreed upon contract payment plus an additional negotiated 
        amount not to exceed 50 percent of the dollar savings achieved 
        in excess of the objective specified in paragraph (1).
            (3) A specific citation to any provision or law, rule, or 
        regulation that, if not waived, would prohibit the conduct of 
        the program or any part of the program.
            (4) The evaluation mechanism required by subsection (d).
            (5) A provision for implementing the most successful 
        prototype Department-wide, based upon final assessment of 
        results.
SEC. 366. PILOT PROGRAM FOR PRIVATE OPERATION OF CONSOLIDATED 
              INFORMATION TECHNOLOGY FUNCTIONS OF DEPARTMENT OF 
              DEFENSE.

    (a) Pilot Program Required.--(1) The Secretary of Defense shall 
enter into discussions with private sector entities for the purpose of 
issuing a request for proposal to establish a pilot program to test and 
evaluate the cost savings and efficiencies of private operation of all 
information technology services for the Department of Defense currently 
being consolidated in Defense MegaCenters. The negotiations shall be 
conducted so that the request for proposal may be issued within 60 days 
after the date of the enactment of this Act.
    (2) The minimum workload to be contracted out in the pilot program 
shall be equivalent to the workload of at least three Defense 
MegaCenters.
    (b) Establishment and Duration.--The Secretary of Defense shall 
implement private operations under the pilot program within one year 
after the date of the enactment of this Act. The pilot program shall 
operate for not more than a three-year period after implementation.
    (c) Goal of Program.--The goal of the pilot program is to receive 
proposals from private sector entities that, if implemented, would 
reduce operating costs to the Department of Defense for information 
technology functions by at least 35 percent in comparison to annual 
operating cost as of the date of the enactment of this Act.
    (d) Plan of Program.--Before conducting the pilot program, the 
Secretary of Defense shall develop a plan for the program that 
addresses the following:
            (1) The purposes of the program.
            (2) The methodology, duration, and anticipated costs of the 
        program, including the cost of an arrangement whereby the 
        private contractor would receive the agreed upon contract 
        payment plus an additional negotiated amount not to exceed 50 
        percent of the dollar savings achieved in excess of the goal 
        specified in subsection (c).
            (3) A specific citation to any provisions of law, rule, or 
        regulation that, if not waived, would prohibit the conduct of 
        the program or any part of the program.
            (4) An evaluation mechanism for the program.
            (5) A provision for expanding the program to all 
        information technology functions of the Department of Defense, 
        based upon final assessment of the results of the program.
    (e) Suspension of Further Consolidation.--Until the completion of 
the pilot program and submission of the final report required under 
subsection (f)(2), none of the funds appropriated to the Department of 
Defense for a fiscal year after fiscal year 1995 may be used to reduce 
the number of data centers of the Department of Defense to fewer than 
the 16 Defense MegaCenters identified as of the date of the enactment 
of this Act.
    (f) Reporting Requirements.--(1) Not later than six months after 
commencing contracting out activities under the pilot program, the 
Secretary of Defense shall submit to Congress an initial assessment 
report regarding the implementation of the pilot program.
    (2) The Secretary shall submit to Congress a final assessment 
report, including a recommendation for expanding the program as 
appropriate, not later than one year after commencing contracting out 
activities under the pilot program.
SEC. 367. INCREASED RELIANCE ON THE PRIVATE SECTOR.

    (a) General Rule.--The Secretary of Defense shall endeavor to carry 
out through an entity in the private sector any activity to provide a 
commercial product or service for the Department of Defense if--
            (1) the product or service can be provided through a source 
        in the private sector; and
            (2) an adequate competitive environment exists to provide 
        for economical accomplishment of the function by the private 
        sector.
    (b) Applicability.--(1) Subsection (a) shall not be construed to 
apply to any commercial product or service with respect to which the 
Secretary of Defense determines that--
            (A) production, manufacture, or provision of that product 
        or service by the Government is necessary for reasons of 
        national security; or
            (B) the product or service is so inherently governmental in 
        nature that it is in the public interest to require production 
        or performance, respectively, by the Department of Defense.
    (2) A determination under paragraph (1) shall be made in accordance 
with regulations prescribed under subsection (c).
    (c) Regulations.--The Secretary of Defense shall prescribe 
regulations for the purposes of this section. Such regulations shall be 
prescribed in consultation with the Director of the Office of 
Management and Budget.
    (d) Report.--(1) The Secretary of Defense shall identify all 
activities of the Department of Defense that are carried out to provide 
commercial products or services for the Department of Defense and that 
are carried out by personnel of the Department of Defense (other than 
activities specified by the Secretary pursuant to subsection (b)).
    (2) The Secretary shall transmit to Congress, not later than April 
15, 1996, a report on matters relating to increased use of the private 
sector for the performance of commercial functions for the Department 
of Defense. The report shall include a list of all activities 
identified under paragraph (1) and indicate, for each activity, whether 
the Secretary proposes to convert the performance of such activity to 
performance by the private sector and, if not, the reasons why.
    (3) The report shall include--
            (A) a description of the advantages and disadvantages of 
        using contractor personnel, rather than employees of the 
        Department of Defense, to perform functions of the Department 
        that are not essential to the warfighting mission of the Armed 
        Forces;
            (B) specification of all legislative and regulatory 
        impediments to contracting those functions for private 
        performance; and
            (C) the views of the Secretary of Defense on the 
        desirability of terminating the applicability of OMB Circular 
        A-76 to the Department of Defense.
    (4) The Secretary shall carry out paragraph (1) in consultation 
with the Director of the Office of Management and Budget and the 
Comptroller General of the United States. In carrying out that 
paragraph, the Secretary shall consult with, and seek the views of, 
representatives of the private sector, including organizations 
representing small businesses.
SEC. 368. PILOT PROGRAM FOR PRIVATE OPERATION OF PAYROLL AND ACCOUNTING 
              FUNCTIONS OF NONAPPROPRIATED FUND INSTRUMENTALITIES.

    (a) Pilot Program Required; Location.--(1) The Secretary of 
Defense, acting through the Under Secretary of Defense (Comptroller), 
shall enter into discussions with private sector entities for the 
purpose of issuing a request for proposal to establish a pilot program 
to test and evaluate the cost savings and efficiencies of private 
operation of accounting and payroll function of nonappropriated fund 
instrumentalities of the Department of Defense. The negotiations shall 
be conducted so that the request for proposal may be issued within 60 
days after the date of the enactment of this Act.
    (2) The pilot program shall consist of a major Department of 
Defense Nonappropriated Fund Accounting and Payroll function.
    (b) Goal of Program.--The goal of the pilot program is to receive 
proposals from private sector entities that, if implemented, would 
reduce by at least 25 percent the total costs to the Government for 
each pay event.
    (c) Plan of Program.--Before conducting the pilot program, the 
Secretary of Defense shall develop a plan for the program that 
addresses the following:
            (1) The purposes of the program.
            (2) The methodology, duration, and anticipated costs of the 
        program, including the cost of an arrangement whereby the 
        private contractor would receive the agreed upon contract 
        payment plus an additional negotiated amount not to exceed 50 
        percent of the dollar savings achieved in excess of the goal 
        specified in subsection (b).
            (3) A specific citation to any provisions of law, rule, or 
        regulation that, if not waived, would prohibit the conduct of 
        the program or any part of the program.
            (4) An evaluation mechanism for the program.
            (5) A provision for expanding the program to all accounting 
        and payroll functions of nonappropriated fund instrumentalities 
        of the Department of Defense, based upon final assessment of 
        the results of the program.
        Subtitle G--Miscellaneous Reviews, Studies, and Reports
SEC. 371. QUARTERLY READINESS REPORTS.

    (a) In General.--(1) Chapter 22 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 452. Quarterly readiness reports
    ``(a) Requirement.--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 any quarter shall be based on 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) the membership of which 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.
    ``(b) Matters To Be Included.--Each such report--
            ``(1) shall specifically describe identified readiness 
        problems or deficiencies and planned remedial actions; and
            ``(2) shall include the key indicators and other relevant 
        data related to the identified problem area or deficiency.
    ``(c) Classification of Reports.--Reports under this section shall 
be submitted in unclassified form and may, as the Secretary determines 
necessary, also be submitted in classified form.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``452. Quarterly readiness reports.''.
  (b) Effective Date.--Section 452 of title 10, United States Code, as 
added by subsection (a), shall take effect with the calendar-year 
quarter during which this Act is enacted.
SEC. 372. REPORTS REQUIRED REGARDING EXPENDITURES FOR EMERGENCY AND 
              EXTRAORDINARY EXPENSES.

    Subsection (c) of section 127 of title 10, United States Code, is 
amended to read as follows:
    ``(c)(1) In any fiscal year in which funds are expended under the 
authority of this section, the Secretary of Defense shall submit a 
report of such expenditures on a quarterly basis to the committees 
specified in paragraph (3).
    ``(2) An obligation or expenditure in an amount of $1,000,000 or 
more may not be made under the authority of this section for any single 
transaction until the Secretary of Defense has notified the committees 
specified in paragraph (3).
    ``(3) The committees referred to in paragraphs (1) and (2) are--
            ``(A) the Committee on Armed Services and the Committee on 
        Appropriations of the Senate; and
            ``(B) the Committee on National Security and the Committee 
        on Appropriations of the House of Representatives.''.
SEC. 373. RESTATEMENT OF REQUIREMENT FOR SEMIANNUAL REPORTS TO CONGRESS 
              ON TRANSFERS FROM HIGH-PRIORITY READINESS APPROPRIATIONS.

    Section 361 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2732) is amended to read as 
follows:

``SEC. 361. SEMIANNUAL REPORTS TO CONGRESS ON TRANSFERS FROM HIGH-
              PRIORITY READINESS APPROPRIATIONS.

    ``(a) Annual Reports.--(1) During 1996 and 1997, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on transfers during the preceding fiscal year from funds available for 
the budget activities specified in subsection (d) (hereinafter in this 
section referred to as `covered budget activities'). The report each 
year shall be submitted not later than the date in that year on which 
the President submits the budget for the next fiscal year to Congress 
pursuant to section 1105 of title 31, United States Code.
    ``(2) Each such report shall include--
            ``(A) specific identification of each transfer during the 
        preceding fiscal year of funds available for any covered budget 
        activity, showing the amount of the transfer, the covered 
        budget activity from which the transfer was made, and the 
        budget activity to which the transfer was made; and
            ``(B) with respect to each such transfer, a statement of 
        whether that transfer was made to a budget activity within a 
        different appropriation than the appropriation containing the 
        covered budget activity from which the transfer was made or to 
        a budget activity within the same appropriation.
    ``(b) Midyear Reports.--On May 1 of each year specified in 
subsection (a), the Secretary of Defense shall submit to the 
congressional defense committees a report providing the same 
information, with respect to the first six months of the fiscal year in 
which the report is submitted, that is provided in reports under 
subsection (a) with respect to the preceding fiscal year.
    ``(c) Matters To Be Included.--In each report under this section, 
the Secretary shall include the following:
            ``(1) With respect to each transfer of funds identified in 
        the report, a statement of the specific reason for the 
        transfer.
            ``(2) For each covered budget activity--
                    ``(A) a statement, for the period covered by the 
                report, of--
                            ``(i) the total amount of transfers into 
                        funds available for that activity;
                            ``(ii) the total amount of transfers from 
                        funds available for that activity; and
                            ``(iii) the net amount of transfers into, 
                        or out of, funds available for that activity; 
                        and
                    ``(B) 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 Activities.--The budget activities to which 
this section applies are 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) Combat Units.
                    ``(B) Tactical Support.
                    ``(C) Force-Related Training/Special Activities.
                    ``(D) Depot Maintenance.
                    ``(E) JCS Exercises.
            ``(2) The 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) Mission and Other Ship Operations.
                    ``(C) Fleet Air Training.
                    ``(D) Ship Operational Support and Training.
                    ``(E) Aircraft Depot Maintenance.
                    ``(F) Ship Depot Maintenance.
            ``(3) The budget activity groups (known as 
        `subactivities'), or other activity, within the Operating 
        Forces budget activity of the annual Operation and Maintenance, 
        Air Force, appropriation that are designated or otherwise 
        identified as follows:
                    ``(A) Primary Combat Forces.
                    ``(B) Primary Combat Weapons.
                    ``(C) Global and Early Warning.
                    ``(D) Air Operations Training.
                    ``(E) Depot Maintenance.
                    ``(F) JCS Exercises.''.
SEC. 374. MODIFICATION OF NOTIFICATION REQUIREMENT REGARDING USE OF 
              CORE LOGISTICS FUNCTIONS WAIVER.

    Section 2464(b) of title 10, United States Code, is amended by 
striking out paragraphs (3) and (4) and inserting in lieu thereof the 
following new paragraph:
    ``(3) A waiver under paragraph (2) may not take effect until the 
end of the 30-day period beginning on the date on which the Secretary 
submits a report on the waiver to the Committee on Armed Services and 
the Committee on Appropriations of the Senate and the Committee on 
National Security and the Committee on Appropriations of the House of 
Representatives.''.
SEC. 375. LIMITATION ON DEVELOPMENT OR MODERNIZATION OF AUTOMATED 
              INFORMATION SYSTEMS OF DEPARTMENT OF DEFENSE PENDING 
              REPORT.

    (a) Obligations and Expenditures Subject to Report.--Of the amounts 
appropriated pursuant to the authorization of appropriations in section 
301, the Secretary of Defense may not obligate or expend amounts in 
excess of $2,411,947,000 for the development and modernization of 
automated data processing programs of the Department of Defense until 
after the end of the 30-day period beginning on the date on which the 
Inspector General of the Department of Defense submits to Congress a 
report that--
            (1) addresses the ongoing concerns about performance 
        measures and management controls regarding automated 
        information systems;
            (2) certifies that the Inspector General has completed 
        review of the Base Level System Modernization and the 
        Sustaining Base Information System;
            (3) certifies that the Inspector General has completed the 
        tasks identified in the review of Standard Installation/
        Division Personnel System-3;
            (4) provides complete functional economic analyses for 
        Automated System for Transportation Data, Electronic Data 
        Interchange, Flexible Computer Integrated Manufacturing, Navy 
        Tactical Command Support System, and Defense Information System 
        Network;
            (5) contains the resolution of the existing problems with 
        the Defense Information System Network, Continuous Acquisition 
        and Life-Cycle Support, and the Joint Computer-Aided 
        Acquisition and Logistics Support;
            (6) provides the necessary waivers regarding compelling 
        military value, or provides complete functional economic 
        analyses, regarding Air Force Wargaming Center Air Force 
        Command Exercise System, Cheyenne Mountain Upgrade, 
        Transportation Coordinator Automated Command and Control 
        Information Systems, and Wing Command and Control System; and
            (7) certifies the termination of the Personnel Electronic 
        Record Management System or provides justification for the 
        continued need for the program.
    (b) Automated Information System Defined.--For purposes of this 
section, the term ``automated information system'' means an automated 
information system of the Department of Defense subject to section 381 
of the National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 108 Stat. 2738; 10 U.S.C. 113 note).
SEC. 376. REPORT REGARDING REDUCTION OF COSTS ASSOCIATED WITH CONTRACT 
              MANAGEMENT OVERSIGHT.

    (a) Report Required.--Not later than April 1, 1996, the Comptroller 
General of the United States shall submit to Congress a report 
identifying methods to reduce the cost to the Department of Defense of 
management oversight of contracts in connection with major defense 
acquisition programs.
    (b) Major Defense Acquisition Programs Defined.--For purposes of 
this section, the term ``major defense acquisition programs'' has the 
meaning given that term in section 2430(a) of title 10, United States 
Code.
                       Subtitle H--Other Matters
SEC. 381. PROHIBITION ON CAPITAL LEASE FOR DEFENSE BUSINESS MANAGEMENT 
              UNIVERSITY.

    None of the funds appropriated to the Department of Defense for 
fiscal year 1996 may be used to enter into any lease with respect to 
the Center for Financial Management Education and Training of the 
Defense Business Management University if the lease would be treated as 
a capital lease for budgetary purposes.
SEC. 382. AUTHORITY OF INSPECTOR GENERAL OVER INVESTIGATIONS OF 
              PROCUREMENT FRAUD.

    (a) Authority.--Section 141 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c) The Inspector General shall be responsible for and shall 
oversee all investigations of procurement fraud within the Department 
of Defense.''.
    (b) Implementation.--The Secretary of Defense shall take such 
action as may be necessary to implement the amendment made by 
subsection (a).
SEC. 383. PROVISION OF EQUIPMENT AND FACILITIES TO ASSIST IN EMERGENCY 
              RESPONSE ACTIONS.
    Section 372 of title 10, United States Code, is amended by adding 
at the end the following new sentence: ``Assistance provided under this 
section may include training facilities, sensors, protective clothing, 
antidotes, and other materials and expertise of the Department of 
Defense appropriate for use by a Federal, State, or local law 
enforcement or emergency response agency in preparing for or responding 
to an emergency involving chemical or biological agents if the 
Secretary determines that the materials or services to be provided are 
not reasonably available from another source.''.
SEC. 384. CONVERSION OF THE CIVILIAN MARKSMANSHIP PROGRAM TO A 
              FEDERALLY CHARTERED NONPROFIT CORPORATION.

    (a) Corporation.--
            (1) Establishment.--There is hereby established a private 
        nonprofit corporation, to be known as the Corporation for the 
        Promotion of Rifle Practice and Firearms Safety (in this 
        section referred to as the ``Corporation''), for the promotion 
        of rifle practice and firearms safety.
            (2) Duties.--The Corporation shall be responsible for the 
        supervision, oversight, and control of the Civilian 
        Marksmanship Program.
            (3) Membership.--The Corporation shall have a board of 
        directors consisting of nine members. Each member shall serve 
        for a two-year term, except for four members of the initial 
        board of directors, who shall serve a one-year term, and shall 
        be eligible for reappointment. The private members of the 
        National Board for the Promotion of Rifle Practice, as in 
        existence on the day before the date of the enactment of this 
        Act, shall forward nominations for membership on the initial 
        board of directors of the Corporation to the governing body 
        designated by the United States Olympic Committee for 
        international rifle and pistol competition (in this section 
        referred to as the ``USOC designee'') not later than 10 days 
        after the date of the enactment of this Act. Unless the 
        nomination is rejected by the USOC designee by written 
        notification to the existing members of the National Board 
        within 30 days of the nomination, the nominee shall be seated 
        as a member of the board of directors of the Corporation. 
        Members of the board of directors shall nominate individuals to 
        fill subsequent vacancies within 10 days of the vacancy, with a 
        right of rejection reserved to the USOC designee by written 
        notification to the Corporation within 30 days of each 
        nomination.
            (4) Director of civilian marksmanship and staff.--The 
        Corporation shall appoint a person to serve as the Director of 
        Civilian Marksmanship, who shall be responsible for the day to 
        day operations of the Corporation and the Civilian Marksmanship 
        Program. Subject to the approval of the Corporation, the 
        Director and civilian employees of the Corporation may enroll 
        or remain enrolled without penalty or loss of credit in all 
        pension and benefits programs available to civilian employees 
        of the Department of Defense, the employer's contribution to be 
        paid by the Corporation.
    (b) Solicitation and Receipt of Funds.--
            (1) In general.--The Corporation and the Director may 
        solicit, accept, hold, use, and dispose of, in furtherance of 
        the activities of the Civilian Marksmanship Program, donations 
        of money, property, and services received by gift, devise, 
        bequest, or otherwise.
            (2) Use of proceeds.--Amounts collected by the Civilian 
        Marksmanship Program, including the proceeds from the sale of 
        arms, ammunition, targets and other supplies and appliances, 
        shall be used to carry out the Civilian Marksmanship Program.
            (3) Transfer of funds.--Amounts available to the National 
        Board for the Promotion of Rifle Practice as of the date of 
        enactment of this Act from rifle sales programs and from fees 
        in connection with competitions sponsored by that board shall 
        be transferred to the Corporation to carry out the Civilian 
        Marksmanship Program.
            (4) Fees charged.--The Corporation may impose such 
        reasonable fees as are necessary to cover the direct and 
        indirect costs to the Corporation, for persons and gun clubs 
        participating in any program or competition conducted under the 
        Civilian Marksmanship Program for the promotion of rifle 
        practice and firearms safety among civilians.
    (c) Responsibilities.--The Corporation, through the Civilian 
Marksmanship Program, shall provide for--
            (1) the operation and maintenance of indoor and outdoor 
        rifle ranges and their accessories and appliances;
            (2) the instruction of citizens of the United States in 
        marksmanship, and the employment of trained instructors for the 
        purpose;
            (3) the promotion of practice in the use of rifled arms and 
        the maintenance and management of matches and competitions in 
        the use of those arms; and
            (4) the award to competitors of trophies, prizes, badges, 
        and other insignia.
    (d) Youth Activities.--The Corporation, through the Civilian 
Marksmanship Program, shall give priority to activities that benefit 
firearms safety training and competition for youth and reach as many 
youth participants as possible.
    (e) Eligibility.--
            (1) Affidavit.--Before a person may participate in any 
        activity sponsored or supported by the Civilian Marksmanship 
        Program, the person shall be required to certify by affidavit 
        the following:
                    (A) The person has not been convicted of any 
                violation of section 922 of title 18, United States 
                Code. The Director may require any person to attach 
                certification from the appropriate State or Federal law 
                enforcement agency to the person's affidavit.
                    (B) The person is not a member of any organization 
                that advocates the violent overthrow of the United 
                States Government.
            (2) Effect of conviction.--A person who has been convicted 
        of a violation of section 922 of title 18, United States Code, 
        shall not be eligible to participate in any activity sponsored 
        or supported by the Corporation through the Civilian 
        Marksmanship Program.
            (3) Further limitations on participation.--The Director may 
        limit participation as necessary to ensure quality instruction 
        in the rifled arms, participant safety, and firearms security.
    (f) Arms and Ammunition.--
            (1) Issuance.--The Corporation may issue, without cost, the 
        arms, ammunition (including caliber .22 and caliber .30 
        ammunition), targets, and other supplies and appliances 
        necessary for activities related to the Civilian Marksmanship 
        Program. Issuance shall be made only to gun clubs under the 
        direction of the Corporation that provide training in the use 
        of rifled arms to youth, the Boy Scouts of America, 4-H Clubs, 
        Future Farmers of America, and other youth-oriented 
        organizations for training and competition. The Corporation 
        shall be responsible for ensuring adequate oversight and 
        accountability for these arms and ammunition.
            (2) Sale to clubs.--The Corporation may sell at fair market 
        value caliber .30 rifles and ammunition for caliber .30 rifles, 
        .22 rifles, and air rifles to gun clubs that are under the 
        direction of the Corporation and provide training in the use of 
        rifled arms. In lieu of sales, the Civilian Marksmanship 
        Program may loan caliber .30 rifles, .22 rifles, and air rifles 
        to such clubs, but the Corporation is responsible for ensuring 
        the oversight and accountability of such rifles.
            (3) Sale to individuals.--The Corporation may sell at fair 
        market value caliber .30 rifles, ammunition, targets, and other 
        supplies and appliances necessary for target practice to 
        citizens of the United States over 18 years of age who are 
        members of a gun club under the direction of the Corporation. 
        Such sales are subject to applicable Federal, State, and local 
        laws. In addition to any other requirement, the Corporation 
        shall provide for a criminal records check of the person with 
        appropriate Federal and State law enforcement agencies, and the 
        Corporation shall not sell weapons or ammunition to a person 
        who has been convicted of a felony or Federal or State firearms 
        violation.
    (g) Other Duties.--The Corporation shall provide for or assist in 
providing for--
            (1) the procurement of necessary supplies, appliances, 
        trophies, prizes, badges, and other insignia, clerical and 
        other services, and labor to carry out the Civilian 
        Marksmanship Program; and
            (2) transportation of employees, instructors, and civilians 
        to give or receive instruction or to assist or engage in 
        practice in the use of rifled arms, and the transportation and 
        subsistence, or an allowance in lieu of subsistence, of members 
        of teams authorized by the Corporation to participate in 
        matches or competitions in the use of rifled arms.
    (h) Authority of Secretary of Defense to Sell Surplus Arms and 
Ammunition.--Subject to section 1208 of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 
10 U.S.C. 372 note), relating to the transfer of excess small arms and 
ammunition to support Government counter-drug activities, the Secretary 
of the Army shall reserve for the Civilian Marksmanship Program all 
remaining M-1 Garand rifles, and ammunition for such rifles, held by 
the Army on the date of the enactment of this Act. After such date, the 
Secretary of the Army shall cease demilitarization of remaining M-1 
Garand rifles in the Army inventory unless such rifles are determined 
to be irreparable by the Defense Logistics Agency. Any transfers of 
arms and ammunition to the Corporation under this section shall be made 
without cost to the Civilian Marksmanship Program, except that the 
Corporation shall assume the cost of preparation and transportation of 
the transferred rifles.
    (i) Logistical Support to Civilian Marksmanship Program.--The 
Secretary of Defense, under such regulations as the Secretary may 
prescribe, may provide logistical support to the Civilian Marksmanship 
Program, for competitions and other activities conducted by the 
Corporation. The Secretary shall recoup only the incremental cost for 
this support from the Corporation. The National Matches may continue to 
be held at the current Department of Defense facilities as part of the 
support authorized under this section.
    (j) Repeal.--(1) Sections 4307, 4308, 4310, and 4311 of title 10, 
United States Code, are repealed.
    (2) The table of sections at the beginning of chapter 401 of such 
title is amended by striking out the items relating to sections 4307, 
4308, 4310, and 4311.
SEC. 385. PERSONNEL SERVICES AND LOGISTICAL SUPPORT FOR CERTAIN 
              ACTIVITIES HELD ON MILITARY INSTALLATIONS.

    Section 2544 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) In the case of a Boy Scout Jamboree held on a United States 
military installation, the Secretary of Defense may provide personnel 
services and logistical support at the military installation in 
addition to the support authorized under subsections (a) and (d).''.
SEC. 386. RETENTION OF MONETARY AWARDS.
    (a) Monetary Awards.--Chapter 155 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 2610. Acceptance of monetary awards from competition for 
              excellence
    ``(a) Acceptance Authorized.--The Secretary of Defense may accept 
any monetary award given to the Department of Defense by a 
nongovernmental entity as an award in competition recognizing 
excellence or innovation in providing services or administering 
programs.
    ``(b) Disposition of Awards.--(1) Subject to paragraph (2), a 
monetary award accepted under subsection (a) shall be credited to the 
appropriation supporting the operation of the command, installation, or 
other activity that is recognized for the award and, in such amount as 
is provided in advance in appropriation Acts, shall be available for 
the same purposes as the underlying appropriation.
    ``(2) Subject to such limitations as may be provided in 
appropriation Acts, the Secretary of Defense may disburse an amount not 
to exceed 50 percent of the monetary award to persons who are 
responsible for the excellence or innovation recognized by the award. A 
person may not receive more than $10,000 under the authority of this 
paragraph from any monetary reward.
    ``(c) Incidental Expenses.--Subject to such limitations as may be 
provided in appropriation Acts, appropriations available to the 
Department of Defense may be used to pay incidental expenses incurred 
to compete in a competition described in subsection (a) or to accept a 
monetary award under this section.
    ``(d) Regulations and Reporting.--(1) The Secretary of Defense 
shall prescribe regulations to determine the disposition of any 
monetary awards accepted under this section and the payment of 
incidental expenses under subsection (c).
    ``(2) The Secretary of Defense shall submit to Congress an annual 
report describing the disposition of any monetary awards accepted under 
this section and the payment of any incidental expenses under this 
subsection (c).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2610. Acceptance of monetary awards from competition for 
                            excellence.''.
SEC. 387. CIVIL RESERVE AIR FLEET.

    Section 9512 of title 10, United States Code, is amended by 
striking out ``full'' before ``Civil Reserve Air Fleet'' in subsections 
(b)(2) and (e).
SEC. 388. PERMANENT AUTHORITY REGARDING USE OF PROCEEDS FROM SALE OF 
              LOST, ABANDONED, AND UNCLAIMED PERSONAL PROPERTY AT 
              CERTAIN INSTALLATIONS.

    (a) Conversion of Existing Demonstration Project.--Section 343 the 
National Defense Authorization Act for Fiscal Years 1992 and 1993 
(Public Law 102-190; 105 Stat. 1343) is amended by striking out 
subsections (d) and (e) and inserting in lieu thereof the following new 
subsection:
    ``(d) Application of Special Rule.--The special rule provided by 
subsection (a) shall apply with respect to the disposal under section 
2575 of title 10, United States Code, of property found on the military 
installations referred to in subsection (b).''.
    (b) Conforming Amendments.--Subsection (a) of such section is 
amended--
            (1) by striking out ``Demonstration Project'' in the 
        subsection heading and inserting in lieu thereof ``Special Rule 
        Regarding Proceeds''; and
            (2) by striking out ``demonstration project'' and inserting 
        in lieu thereof ``permanent program''.
SEC. 389. TRANSFER OF EXCESS PERSONAL PROPERTY TO SUPPORT LAW 
              ENFORCEMENT ACTIVITIES.

    Section 1208(a)(1)(A) of the National Defense Authorization Act for 
Fiscal Years 1990 and 1991 (P.L. 101-189; 10 U.S.C. 372 note) is 
amended by striking out ``counter-drug activities'' and inserting in 
lieu thereof ``law enforcement activities, including counter-drug 
activities''.
SEC. 390. DEVELOPMENT AND IMPLEMENTATION OF INNOVATIVE PROCESSES TO 
              IMPROVE OPERATION AND MAINTENANCE.

    Of the amounts authorized to be appropriated under section 301(5), 
$350,000,000 shall be available to the Secretary of Defense for the 
development or acquisition of information technologies and reengineered 
functional processes, such as in the areas of personnel management, 
finance, and depot-level maintenance, for implementation within the 
Department of Defense. Before obligating or expending funds under this 
section for an information technology or reengineered functional 
process, the Secretary shall certify to Congress that the information 
technology or reengineered functional process--
            (1) demonstrates a rate of return, within three years, of 
        300 percent compared to the investment made under this section; 
        or
            (2) would have a measurable effect upon the effectiveness 
        of the readiness of the Armed Forces or the operation and 
        management of the Department of Defense.
SEC. 391. REVIEW OF USE OF DEFENSE LOGISTICS AGENCY TO MANAGE INVENTORY 
              CONTROL POINTS.

    (a) Review of Consolidation of Inventory Control Points.--The 
Secretary of Defense shall conduct a review regarding the consolidation 
under the Defense Logistics Agency of all inventory control points, 
including the inventory management and acquisition of depot-level 
repairables.
    (b) Submission of Results.--Not later than March 31, 1996, the 
Secretary shall complete the review and submit a report to the 
congressional defense committees describing the results the review.
    (c) Limitation on Implementation of Materiel Management Standard 
System.--Pending the submission of the report, the Secretary of Defense 
may not proceed with the implementation of the automated data 
processing program of the Department of Defense known as the Materiel 
Management Standard System.
SEC. 392. SALE OF 50 PERCENT OF CURRENT WAR RESERVE FUEL STOCKS.

    (a) Sale Required.--Notwithstanding section 2390(a) of title 10, 
United States Code, the Secretary of Defense shall reduce war reserve 
fuel stocks of the Department of Defense to a level equal to 50 percent 
of the level of such stocks on January 1, 1995. The Secretary shall 
achieve the reduction through consumption of fuel in the Department of 
Defense and, if necessary, sales of fuel outside the Department to the 
highest qualified bidders.
    (b) Subsequent Fuel Purchases.--After the date of the enactment of 
this Act, fuel purchases for the Department of Defense shall be made on 
the basis of the actual fuel needs of the Department.
    (c) Report.--Not later than March 1, 1996, the Secretary of Defense 
shall submit to Congress a report describing the manner in which the 
reduction of war reserve fuel stocks is to be made and the time period 
within which the reduction is to be achieved.
    (d) Suspension of Reduction; Increases.--The Secretary of Defense 
may suspend the reduction of war reserve fuel stocks, and in fact 
increase such stocks as otherwise authorized by law, in the event of a 
national emergency or to advance the national security interests of the 
United States.
SEC. 393. MILITARY CLOTHING SALES STORES, REPLACEMENT SALES.

    (a) In General.--(1) Chapter 651 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 7606. Subsistence and other supplies: members of armed forces; 
              veterans; executive or military departments and 
              employees; prices
    ``(a) The branch, office, or officer designated by the Secretary of 
the Navy shall procure and sell, for cash or credit--
            ``(1) articles specified by the Secretary of the Navy or a 
        person designated by the Secretary, to members of the Navy and 
        Marine Corps; and
            ``(2) items of individual clothing and equipment to members 
        of the Navy and Marine Corps, under such restrictions as the 
        Secretary may prescribe.
An account of sales on credit shall be kept and the amount due reported 
to any branch office, or officer designated by the Secretary. Except 
for articles and items acquired through the use of working capital 
funds under section 2208 of this title, sales of articles shall be at 
cost, and sales of individual clothing and equipment shall be at 
average current prices, including overhead, as determined by the 
Secretary.
    ``(b) The branch, office, or officer designated by the Secretary 
shall sell subsistence supplies to members of other armed forces at the 
prices at which like property is sold to members of the Navy and Marine 
Corps.
    ``(c) The branch, office, or officer designated by the Secretary 
may sell serviceable supplies, other than subsistence supplies, to 
members of other armed forces at the prices at which like property is 
sold to members of the Navy and Marine Corps.
    ``(d) A person who has been discharged honorably or under honorable 
conditions from the Army, Navy, Air Force, or Marine Corps and who is 
receiving care and medical treatment from the Public Health Service or 
the Department of Veterans Affairs may buy subsistence supplies and 
other supplies, except articles of uniform, at the prices at which like 
property is sold to members of the Navy and Marine Corps.
    ``(e) Under such conditions as the Secretary may prescribe, 
exterior articles of uniform may be sold to a person who has been 
discharged from the Navy or Marine Corps honorably or under honorable 
conditions at the prices at which like articles are sold to members of 
the Navy or Marine Corps. This subsection does not modify section 772 
or 773 of this title.
    ``(f) Under regulations prescribed by the Secretary, payment for 
subsistence supplies shall be made in cash or by commercial credit.
    ``(g) The Secretary may provide for the procurement and sale of 
stores designated by him to such civilian officers and employees of the 
United States, and such other persons, as he considers proper--
            ``(1) at military installations outside the United States 
        (provided such sales conform with host nation support 
        agreements); and
            ``(2) at military installations inside the United States 
        where the Secretary determines that it is impracticable for 
        those civilian officers, employees, and persons to obtain those 
        stores from commercial enterprises without impairing the 
        efficient operation of military activities.
However, sales to such civilian officers and employees inside the 
United States may be only to those who reside within military 
installations.
    ``(h) Appropriations for subsistence of the Navy or Marine Corps 
may be applied to the purchase of subsistence supplies for sale to 
members of the Navy and Marine Corps on active duty for the use of 
themselves and their families.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``7606. Subsistence and other supplies: members of armed forces; 
                            veterans; executive or military departments 
                            and employees; prices.''.
    (b) Conforming Amendments for Other Armed Forces.--(1) Section 
4621(f) of such title is amended by inserting before the period at the 
end the following: ``or by commercial credit''.
    (2) Section 9621(f) of such title is amended by inserting before 
the period at the end the following: ``or by commercial credit''.
SEC. 394. 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.--Of the amounts 
authorized to be appropriated in section 301(5)--
            (1) $50,000,000 shall be available for providing 
        educational agencies assistance (as defined in subsection 
        (d)(1)) to local educational agencies; and
            (2) $8,000,000 shall be available for making educational 
        agencies payments (as defined in subsection (d)(2)) to local 
        educational agencies.
    (b) Notification of Availability of Funds.--Not later than June 30, 
1996--
            (1) the Secretary of Defense shall notify each local 
        educational agency that is eligible for educational agencies 
        assistance for fiscal year 1996 of that agency's eligibility 
        for such assistance and the amount of such assistance for which 
        that agency is eligible; and
            (2) the Secretary of Education shall notify each local 
        educational agency that is eligible for an educational agencies 
        payment for fiscal year 1996 of that agency's eligibility for 
        such payment and the amount of the payment for which that 
        agency is eligible.
    (c) Disbursement.--The Secretary of Defense (with respect to funds 
made available under subsection (a)(1)) and the Secretary of Education 
(with respect to funds made available under subsection (a)(2)) shall 
disburse such funds not later than 30 days after the date on which 
notification to the eligible local education agencies is provided 
pursuant to subsection (b).
    (d) Definitions.--For purposes of this section:
            (1) The term ``educational agencies assistance'' means 
        assistance authorized under subsection (b) of section 386 of 
        the National Defense Authorization Act for Fiscal Year 1993 
        (Public Law 102-484; 20 U.S.C. 238 note).
            (2) The term ``educational agencies payments'' means 
        payments authorized under subsection (d) of that section.
    (e) Reduction in Impact Threshold.--Subsection (c)(1) of section 
386 of the National Defense Authorization Act for Fiscal Year 1993 
(Public Law 102-484; 20 U.S.C. 238 note) is amended--
            (1) by striking out ``30 percent'' and inserting in lieu 
        thereof ``20 percent''; and
            (2) by striking out ``counted under subsection (a) or (b) 
        of section 3 of the Act of September 30, 1950 (Public Law 874, 
        Eighty-first Congress; 20 U.S.C. 238)''.
    (f) Extension of Reporting Requirement.--Subsection (e)(1) of 
section 386 of the National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484; 20 U.S.C. 238 note) is amended by striking 
out ``and 1995'' and inserting in lieu thereof ``1995, and 1996''.
    (g) Technical Amendments To Correct References to Repealed Law.--
Section 386 of the National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484; 20 U.S.C. 238 note) is amended--
            (1) in subsection (d), by striking out ``under section 3'' 
        and all that follows through ``of such subsection that result 
        from'' and inserting in lieu thereof ``payments under section 
        8003(e) of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 7703(e)) as a result of'';
            (2) in subsection (e)(2)(C), by inserting after ``et 
        seq.),'' the following: ``title VIII of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7701 et seq.),'';
            (3) in subsection (e)(2)(D), by striking out ``under 
        subsections (a) and (b) of section 3 of such Act (20 U.S.C. 
        238)''; and
            (4) in subsection (h)--
                    (A) in paragraph (1), by striking out ``section 
                1471(12) of the Elementary and Secondary Education Act 
                of 1965 (20 U.S.C. 2891(12))'' and inserting in lieu 
                thereof ``section 8013(9) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 7713(9))''; 
                and
                    (B) by striking out paragraph (3) and inserting in 
                lieu thereof the following new paragraph:
            ``(3) The term `State' does not include Puerto Rico, Wake 
        Island, Guam, American Samoa, the Northern Mariana Islands, or 
        the Virgin Islands.''.
SEC. 395. CORE LOGISTICS CAPABILITIES OF THE DEPARTMENT OF DEFENSE.

    (a) In General.--Chapter 146 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2473. Depot-level maintenance and repair workload
    ``(a) Importance of Depot-Level Maintenance and Repair Core 
Capabilities.--It is essential for the national defense that the United 
States maintain a core depot-level maintenance and repair capability 
(including skilled personnel, equipment, and facilities) within 
facilities owned and operated by the Department of Defense that--
            ``(1) is of the proper size (A) to ensure a ready and 
        controlled source of technical competence and repair and 
        maintenance capability necessary to meet the requirements of 
        the National Military Strategy and other requirements for 
        responding to military contingencies, and (B) to provide for 
        rapid augmentation in time of emergency; and
            ``(2) is assigned sufficient workload to ensure cost 
        efficiency and proficiency in time of peace.
    ``(b) Determination of Core Depot Maintenance Activities.--(1) The 
Secretary of each military department shall identify those depot-level 
maintenance and repair activities under that Secretary's jurisdiction 
that are necessary to ensure for that military department the depot-
level maintenance and repair capability described in subsection (a) and 
as required by section 2464 of this title.
    ``(2) The Secretary of each military department shall prescribe the 
procedures to be used to quantify the requirements necessary to support 
the capability described in subsection (a).
    ``(c) Performance of Workload That Supports Depot-Level Maintenance 
and Repair Core Capabilities.--The Secretary of each military 
department shall require the performance of depot-level maintenance and 
repair of activities identified under subsection (b) at organic 
Department of Defense maintenance depots at levels sufficient to ensure 
that the Department of Defense maintains the core depot-level 
maintenance and repair capability described in subsection (a).
    ``(d) Interservicing of Workload.--The Secretary of Defense, after 
consultation with the Secretaries of the military departments, may 
transfer workload that supports the core capability described in 
subsection (a) from one military department to another. The Secretary 
of Defense shall use merit-based criteria in evaluating such transfers.
    ``(e) Source of Repair for Other Depot-Level Workloads.--In the 
case of depot-level maintenance and repair workloads in excess of the 
workload required pursuant to subsection (c) to be performed at organic 
Department of Defense depots, the Secretary of Defense, after 
consultation with the Secretaries of the military departments, may 
provide for the performance of those workloads through sources selected 
by competition. The Secretary of Defense shall use competition between 
private firms and organic Department of Defense depots for any such 
workload when the Secretary determines there are less than two 
qualified sources of supply among private firms for the performance of 
that specific depot-level maintenance workload.
    ``(f) Depot-Level Workload Competitions.--In any competition under 
this section for a depot-level workload (whether among private firms or 
between Department of Defense activities and private firms), bids from 
any entity participating in the competition shall accurately disclose 
all costs properly and consistently derived from accounting systems and 
practices that comply with laws, policies, and standards applicable to 
that entity. In any competition between Department of Defense 
activities and private firms, the Government calculation for the cost 
of performance of the function by Department of Defense civilian 
employees shall be based on an estimate using the most efficient and 
cost effective manner for performance of such function by Department of 
Defense civilian employees.
    ``(g) Annual Report.--Not later than March 1 of each year, the 
Secretary of Defense shall submit to Congress a report specifying depot 
maintenance core capability requirements determined in accordance with 
the procedures established to comply with subsection (b)(2) and the 
planned amount of workload to be accomplished in the organic depots of 
each military department in support of those requirements for the 
following fiscal year. The report shall identify the planned amount of 
workload measured by direct labor hours and by amounts expended and 
shall be shown separately for each commodity group.''.
    (b) Repeal of 60/40 Requirement and Requirement Relating to 
Competition.--Effective December 31, 1996--
            (1) section 2466 of title 10, United States Code, is 
        repealed unless Congress takes further action regarding such 
        repeal; and
            (2) section 2469 of title 10, United States Code, is 
        repealed unless Congress takes further action regarding such 
        repeal.
    (c) Interim Exclusion of Large Maintenance and Repair Projects From 
60/40 Requirement.--Effective on the date of the enactment of this Act, 
section 2466(d) of title 10, United States Code, is amended--
            (1) by striking out ``Exception.--'' and inserting in lieu 
        thereof ``Exceptions.--(1)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) If a maintenance or repair project for a single item that is 
contracted for performance by non-Federal Government personnel accounts 
for 5 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.''.
    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 146 of such title is amended--
            (1) effective December 31, 1996, by striking out the items 
        relating to sections 2466 and 2469; and
            (2) by adding at the end the following new item:

``2473. Depot-level maintenance and repair workload.''.
    (e) Report on Depot-Level Maintenance and Repair Workload.--Not 
later than March 1, 1996, the Secretary of Defense shall submit to 
Congress a report on the depot-level maintenance and repair workload of 
the Department of Defense. The report shall include the following:
            (1) The analysis required by subsection (f) of the effect 
        on that workload of the so-called 60/40 requirement.
            (2) The analysis required by subsection (g) of the 
        projected effect on that workload using a definition of core 
        capability consistent with the description in section 2473(a) 
        of title 10, United States Code, as added by subsection (a).
            (3) The comparison of those analyses required by subsection 
        (h).
            (4) Identification and analysis of significant issues that 
        arise if organic Department of Defense depots are allowed to 
        participate in a full and open competition with private firms 
        for repair workloads in excess of work that supports core 
        capabilities.
    (f) 60/40 Requirement.--(1) The report under subsection (e) shall 
include an analysis of the requirement under section 2466 of title 10, 
United States Code, that no more than 40 percent of the depot-level 
maintenance and repair work of the Department of Defense be contracted 
for performance by non-Government personnel. That analysis shall 
include the following:
            (A) A description of the effect on military readiness and 
        the national security resulting from that requirement, 
        including a description of any specific difficulties 
        experienced by the Department of Defense as a result of that 
        requirement.
            (B) A determination of the depot-level maintenance and 
        repair workload of the Department of Defense allocated for 
        performance by organic Department of Defense depots for any 
        fiscal year during which the requirement has been in effect, 
        the percentage of funds for that workload that were obligated 
        to private sector entities, shown for each such fiscal year and 
        for the entire period during which the requirement has been in 
        effect.
    (2) That analysis shall be made with respect to--
            (A) the distribution during the five fiscal years ending 
        with fiscal year 1995 of the depot-level maintenance and repair 
        workload of the Department of Defense between organic 
        Department of Defense depots and non-Government personnel, 
        measured by direct labor hours and by amounts expended, and 
        displayed, for that five-year period and for each year of that 
        period, so as to show (for each military department (and 
        separately for the Navy and Marine Corps)) such distribution 
        for each commodity group (such as naval vessels, aircraft, 
        tracked combat vehicles); and
            (B) the projected distribution during the five fiscal years 
        beginning with fiscal year 1996 of the depot-level maintenance 
        and repair workload of the Department of Defense between 
        organic Department of Defense depots and non-Government 
        personnel, set forth in the same manner as described in 
        subparagraph (A).
    (g) Core Workload Analysis.--The report under subsection (e) shall 
include an analysis of the depot-level maintenance and repair workload 
of the Department of Defense in which the Secretary uses the capability 
described in section 2473(a) of title 10, United States Code, as added 
by subsection (a), as the standard for determining that portion of such 
workload that is required to be performed in organic Department of 
Defense facilities. That analysis shall be made with respect to--
            (1) the distribution that would (using that standard) have 
        been made during the five fiscal years ending with fiscal year 
        1995 of the depot-level maintenance and repair workload of the 
        Department of Defense between organic Department of Defense 
        depots and non-Government personnel, measured by direct labor 
        hours and by amounts expended, and displayed, for that five-
        year period and for each year of that period, so as to show 
        (for each military department (and separately for the Navy and 
        Marine Corps)) such distribution for each commodity group (such 
        as naval vessels, aircraft, tracked combat vehicles); and
            (2) the projected distribution (using that standard) during 
        the five fiscal years beginning with fiscal year 1996 of the 
        depot-level maintenance and repair workload of the Department 
        of Defense between organic Department of Defense depots and 
        non-Government personnel, set forth in the same manner as 
        described in paragraph (1).
    (h) Comparison.--The report under subsection (e) shall include a 
comparison of the results of the analysis of the depot-level 
maintenance and repair workload of the Department of Defense under 
subsection (f) with the results of the analysis of that workload under 
subsection (g). The comparison shall include a comparison of the two 
analyses by service and commodity group with respect to each of the 
following:
            (1) Identification, based on each analysis, of core 
        workloads and of the capabilities and equipment needed to 
        perform depot-level maintenance and repair for those core 
        workloads.
            (2) Identification, based on each analysis, of depot-level 
        maintenance and repair work performed (or that would be 
        performed) at organic Department of Defense depots and of 
        depot-level maintenance and repair work performed (or that 
        would be performed) by non-Government personnel.
            (3) Readiness.
            (4) The Department of Defense budget.
            (5) The depot-level maintenance and repair workload 
        distribution, under each analysis, by direct labor hours 
        performed and by dollars expended.
            (6) Projected level, for each analysis, of Government 
        capital investment in public and private depot-level 
        maintenance and repair facilities.
    (i) Review by GAO.--(1) The Comptroller General of the United 
States shall conduct an independent audit of the findings of the 
Secretary of Defense in the report under subsection (e). The Secretary 
of Defense shall provide to the Comptroller General for such purpose 
all information used by the Secretary in preparing such report.
    (2) Not later than April 1, 1996, the Comptroller General shall 
submit to the congressional defense committees a report on the analysis 
by the Comptroller General of the report submitted by the Secretary of 
Defense under this section.
SEC. 396. EXPANSION OF SOUTHWEST BORDER STATES ANTI-DRUG INFORMATION 
              SYSTEM.

    Congress finds that the Southwest Border States Anti-Drug 
Information Systems program is an important element in the effort of 
the Department of Defense to support law enforcement agencies in the 
fight against illegal trafficking of narcotics.
              TITLE IV--MILITARY 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, 1996 , as follows:
            (1) The Army, 495,000.
            (2) The Navy, 428,000.
            (3) The Marine Corps, 174,000.
            (4) The Air Force, 388,200.

SEC. 402. TEMPORARY VARIATIONS IN DOPMA AUTHORIZED END STRENGTH 
              LIMITATIONS FOR ACTIVE DUTY NAVY AND AIR FORCE OFFICERS 
              IN CERTAIN GRADES.

    (a) Air Force Officers in Grade of Major.--Notwithstanding section 
523(a)(1) of title 10, United States Code, and except as provided in 
section 523(c) of such title, of the total number of commissioned 
officers serving on active duty in the Air Force at the end of any 
fiscal year through fiscal year 1997 (excluding officers in categories 
specified in section 523(b) of title 10, United States Code), the 
number of officers who may be serving on active duty in the grade of 
major may not, as of the end of such fiscal year, exceed the number 
determined in accordance with the following table:

      

------------------------------------------------------------------------
                                    Number of                           
    Total number of Air Force        officers                           
 commissioned officers (excluding   who may be                          
 officers in categories specified   serving on                          
  in section 523(b) of title 10,   active duty                          
  United States Code) on active    in grade of                          
               duty                   major                             
------------------------------------------------------------------------
   70,000........................       14,612                          
   75,000........................       15,407                          
   80,000........................       16,202                          
   85,000........................       16,997                          
   90,000........................       17,792                          
   95,000........................       18,587                          
  100,000........................       19,382                          
  105,000........................       20,177                          
  110,000........................       20,971                          
  115,000........................       21,766                          
  120,000........................       22,561                          
  125,000........................       23,356                          
------------------------------------------------------------------------

    (b) Navy Officers in Grades of Lieutenant Commander, Commander, and 
Captain.--Notwithstanding section 523(a)(2) of title 10, United States 
Code, and except as provided in section 523(c) of such title, of the 
total number of commissioned officers serving on active duty in the 
Navy at the end of any fiscal year through fiscal year 1997 (excluding 
officers in categories specified in section 523(b) of title 10, United 
States Code), the number of officers who may be serving on active duty 
in each of the grades of lieutenant commander, commander, and captain 
may not, as of the end of such fiscal year, exceed a number determined 
in accordance with the following table:

      

------------------------------------------------------------------------
Total number of Navy commissioned  Number of officers who may be serving
 officers (excluding officers in         on active duty in grade of     
 categories specified in section  --------------------------------------
523(b) of title 10, United States   Lieutenant                          
       Code) on active duty         Commander    Commander     Captain  
------------------------------------------------------------------------
  45,000.........................       10,034        6,498        2,801
  48,000.........................       10,475        6,706        2,902
  51,000.........................       10,916        6,912        3,002
  54,000.........................       11,357        7,120        3,103
  57,000.........................       11,798        7,328        3,204
  60,000.........................       12,239        7,535        3,305
  63,000.........................       12,680        7,742        3,406
  66,000.........................       13,121        7,949        3,506
  70,000.........................       13,709        8,226        3,641
  90,000.........................       16,649        9,608        4,313
------------------------------------------------------------------------

                       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, 1996, as follows:
            (1) The Army National Guard of the United States, 373,000.
            (2) The Army Reserve, 230,000.
            (3) The Naval Reserve, 98,608.
            (4) The Marine Corps Reserve, 42,000.
            (5) The Air National Guard of the United States, 109,458.
            (6) The Air Force Reserve, 73,969.
            (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, 1996 
, 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, 23,390.
            (2) The Army Reserve, 11,575.
            (3) The Naval Reserve, 17,490.
            (4) The Marine Corps Reserve, 2,285.
            (5) The Air National Guard of the United States, 9,817.
            (6) The Air Force Reserve, 628.

SEC. 413. COUNTING OF CERTAIN ACTIVE COMPONENT PERSONNEL ASSIGNED IN 
              SUPPORT OF RESERVE COMPONENT TRAINING.

    Section 414(c) of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 10 U.S.C. 12001 note) is 
amended--
            (1) by inserting ``(1)'' before ``The Secretary''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Secretary of Defense may count toward the number of 
active component personnel required under paragraph (1) to be assigned 
to serve as advisers under the program under this section any active 
component personnel who are assigned to an active component unit (A) 
that was established principally for the purpose of providing dedicated 
training support to reserve component units, and (B) the primary 
mission of which is to provide such dedicated training support.''.

              Subtitle C--Military Training Student Loads

SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.

    (a) In General.--For fiscal year 1996, the components of the Armed 
Forces are authorized average military training loads as follows:
            (1) The Army, 75,013.
            (2) The Navy, 44,238.
            (3) The Marine Corps, 26,095.
            (4) The Air Force, 33,232.
    (b) Scope.--The average military training student loads authorized 
for an armed force under subsection (a) apply to the active and reserve 
components of that armed force.
    (c) Adjustments.--The average military student loads authorized in 
subsection (a) shall be adjusted consistent with the end strengths 
authorized in subtitles A and B. The Secretary of Defense shall 
prescribe the manner in which such adjustments shall be apportioned.
              Subtitle D--Authorization of Appropriations

SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 1996 a total of 
$68,951,663,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 1996.
SEC. 432. AUTHORIZATION FOR INCREASE IN ACTIVE-DUTY END STRENGTHS.

    (a) Authorization.--There is hereby authorized to be appropriated 
to the Department of Defense for fiscal year 1996 for military 
personnel the sum of $112,000,000. Any amount appropriated pursuant to 
this section shall be allocated, in such manner as the Secretary of 
Defense prescribes, among appropriations for active-component military 
personnel for that fiscal year and shall be available only to increase 
the number of members of the Armed Forces on active duty during that 
fiscal year (compared to the number of members that would be on active 
duty but for such appropriation).
    (b) Effect on End Strengths.--The end-strength authorizations in 
section 401 shall each be deemed to be increased by such number as 
necessary to take account of additional members of the Armed Forces 
authorized by the Secretary of Defense pursuant to subsection (a).
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy
 SEC. 501. AUTHORITY TO EXTEND TRANSITION PERIOD FOR OFFICERS SELECTED 
              FOR EARLY RETIREMENT.

    (a) Selective Retirement of Warrant Officers.--Section 581 of title 
10, United States Code, is amended by adding at the end the following 
new subsection:
    ``(e) The Secretary concerned may defer for not more than 90 days 
the retirement of an officer otherwise approved for early retirement 
under this section in order to prevent a personal hardship to the 
officer or for other humanitarian reasons.''.
    (b) Selective Early Retirement of Active-Duty Officers.--Section 
638(b) of title 10, United States Code, is amended by adding at the end 
the following new paragraph:
    ``(3) The Secretary concerned may defer for not more than 90 days 
the retirement of an officer otherwise approved for early retirement 
under this section or section 638a of this title in order to prevent a 
personal hardship to the officer or for other humanitarian reasons.''.

           Subtitle B--Matters Relating to Reserve Components

SEC. 511. MILITARY TECHNICIAN FULL-TIME SUPPORT PROGRAM FOR ARMY AND 
              AIR FORCE RESERVE COMPONENTS.

    (a) Requirement of Annual Authorization of End Strength.--(1) 
Section 115 of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(g) Congress shall authorize for each fiscal year the end 
strength for military technicians for each reserve component of the 
Army and Air Force. Funds available to the Department of Defense for 
any fiscal year may not be used for the pay of a military technician 
during that fiscal year unless the technician fills a position that is 
within the number of such positions authorized by law for that fiscal 
year for the reserve component of that technician. This subsection 
applies without regard to section 129 of this title.''.
    (2) The amendment made by paragraph (1) does not apply with respect 
to fiscal year 1995.
    (b) Authorization for Fiscal Years 1996 and 1997.--For each of 
fiscal years 1996 and 1997, the number of military technicians, as of 
the last day of that fiscal year, for the Army and the Air Force 
(notwithstanding section 129 of title 10, United States Code) may not 
exceed the following:
            (1) Army National Guard, 25,500.
            (2) Army Reserve, 6,630.
            (3) Air National Guard, 22,906.
            (4) Air Force Reserve, 9,802.
    (c) Administration of Military Technician Program.--(1) Chapter 
1007 of title 10, United States Code, is amended by adding at the end 
the following new section:
``Sec. 10216. Military technicians
    ``(a) Priority for Management of Military Technicians.--(1) As a 
basis for making the annual request to Congress pursuant to section 115 
of this title for authorization of end strengths for military 
technicians of the Army and Air Force reserve components, the Secretary 
of Defense shall give priority to supporting authorizations for dual 
status military technicians in the following high-priority units and 
organizations:
            ``(A) Units of the Selected Reserve that are scheduled to 
        deploy no later than 90 days after mobilization.
            ``(B) Units of the Selected Reserve that are or will deploy 
        to relieve active duty peacetime operations tempo.
            ``(C) Those organizations with the primary mission of 
        providing direct support surface and aviation maintenance for 
        the reserve components of the Army and Air Force, to the extent 
        that the military technicians in such units would mobilize and 
        deploy in a skill that is compatible with their civilian 
        position skill.
    ``(2) For each fiscal year, the Secretary of Defense shall, for the 
high-priority units and organizations referred to in paragraph (1), 
achieve a programmed manning level for military technicians that is not 
less than 90 percent of the programmed manpower structure for those 
units and organizations for military technicians for that fiscal year.
    ``(3) For each fiscal year, the Secretary of Defense shall, for 
reserve component management headquarters organizations (including 
national and State-level National Guard headquarters, in United States 
Property and Fiscal Offices, and in similar management-level 
headquarters in the Army and Air Force Reserve), achieve a programmed 
manning level for military technicians that is not more than 70 percent 
of the programmed manpower structure for those organizations for 
military technicians for that fiscal year.
    ``(4) Military technician authorizations and personnel in high-
priority units and organizations specified in paragraph (1) shall be 
exempt from any requirement (imposed by law or otherwise) for 
reductions in Department of Defense civilian personnel and shall only 
be reduced as part of military force structure reductions. Planned 
reductions in Department of Defense civilian personnel that would apply 
to such technician authorizations and personnel but for this paragraph 
shall be reallocated by the Secretary of Defense on a proportional 
basis throughout the Department of Defense, with an emphasis on 
reducing headquarters personnel.
    ``(b) Dual-Status Requirement.--The Secretary of Defense shall 
require the Secretary of the Army and the Secretary of the Air Force to 
establish as a condition of employment for each individual who is hired 
after the date of the enactment of this section as a military 
technician that the individual maintain membership in the Selected 
Reserve (so as to be a so-called `dual-status' technician) and shall 
require that the civilian and military position skill requirements of 
dual-status military technicians be compatible. No Department of 
Defense funds may be spent for compensation for any military technician 
hired after the date of the enactment of this section who is not a 
member of the Selected Reserve, except that compensation may be paid 
for up to six months following loss of membership in the selected 
reserve if such loss of membership was not due to the failure to meet 
military standards.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``10216. Military technicians.''.
    (d) Review of Reserve Component Management Headquarters.--(1) The 
Secretary of Defense shall, within six months after the date of the 
enactment of this Act, undertake steps to reduce, consolidate, and 
streamline management headquarters operations of the reserve 
components. As part of those steps, the Secretary shall identify those 
military technicians positions in such headquarters operations that are 
excess to the requirements of those headquarters.
    (2) Of the military technicians positions that are identified under 
paragraph (1), the Secretary shall reallocate up to 95 percent of those 
positions to the high-priority units and activities specified in 
section 10216(a) of title 10, United States Code, as added by 
subsection (c).
    (e) Annual Defense Manpower Requirements Report.--Section 115a of 
title 10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(h) In each such report, the Secretary shall include a separate 
report on the Army and Air Force military technician programs. The 
report shall include a presentation, shown by reserve component and 
shown both as of the end of the preceding fiscal year and for the next 
fiscal year, of the following:
            ``(1) The number of military technicians required to be 
        employed (as specified in accordance with Department of Defense 
        procedures), the number authorized to be employed under 
        Department of Defense personnel procedures, and the number 
        actually employed.
            ``(2) Within each of the numbers under paragraph (1)--
                    ``(A) the number applicable to a reserve component 
                management headquarter organization; and
                    ``(B) the number applicable to high-priority units 
                and organizations (as specified in section 10216(a) of 
                this title).
            ``(3) Within each of the numbers under paragraph (1), the 
        numbers of military technicians who are not themselves members 
        of a reserve component (so-called `single-status' technicians), 
        with a further display of such numbers as specified in 
        paragraph (2).''.
SEC. 512. MILITARY LEAVE FOR MILITARY RESERVE TECHNICIANS FOR CERTAIN 
              DUTY OVERSEAS.

    Section 6323 of title 5, United States Code is amended by adding at 
the end the following new subsection:
    ``(d)(1) A military reserve technician described in section 
8401(30) is entitled at such person's request to leave without loss of, 
or reduction in, pay, leave to which such person is otherwise entitled, 
credit for time or service, or performance or efficiency rating for 
each day, not to exceed 44 workdays in a calendar year, in which such 
person is on active duty without pay, as authorized pursuant to section 
12315 of title 10, under section 12301(b) or 12301(d) of title 10 
(other than active duty during a war or national emergency declared by 
the President or Congress) for participation in noncombat operations 
outside the United States, its territories and possessions.
    ``(2) An employee who requests annual leave or compensatory time to 
which the employee is otherwise entitled, for a period during which the 
employee would have been entitled upon request to leave under this 
subsection, may be granted such annual leave or compensatory time 
without regard to this section or section 5519.''.
SEC. 513. REVISIONS TO ARMY GUARD COMBAT REFORM INITIATIVE TO INCLUDE 
              ARMY RESERVE UNDER CERTAIN PROVISIONS AND MAKE CERTAIN 
              REVISIONS.

    (a) Prior Active Duty Personnel.--Section 1111 of the Army National 
Guard Combat Readiness Reform Act of 1992 (title XI of Public Law 102-
484) is amended--
            (1) in the section heading, by striking out the first three 
        words;
            (2) by striking out subsections (a) and (b) and inserting 
        in lieu thereof the following:
    ``(a) Additional Prior Active Duty Officers.--The Secretary of the 
Army shall increase the number of qualified prior active-duty officers 
in the Army National Guard by providing a program that permits the 
separation of officers on active duty with at least two, but less than 
three, years of active service upon condition that the officer is 
accepted for appointment in the Army National Guard. The Secretary 
shall have a goal of having not fewer than 150 officers become members 
of the Army National Guard each year under this section.
    ``(b) Additional Prior Active Duty Enlisted Members.--The Secretary 
of the Army shall increase the number of qualified prior active-duty 
enlisted members in the Army National Guard through the use of 
enlistments as described in section 8020 of the Department of Defense 
Appropriations Act, 1994 (Public Law 103-139). The Secretary shall 
enlist not fewer than 1,000 new enlisted members each year under 
enlistments described in that section.''; and
            (3) by striking out subsections (d) and (e).
    (b) Service in the Selected Reserve in Lieu of Active Duty Service 
for ROTC Graduates.--Section 1112(b) of such Act (106 Stat. 2537) is 
amended by striking out ``National Guard'' before the period at the end 
and inserting in lieu thereof ``Selected Reserve''.
    (c) Review of Officer Promotions.--Section 1113 of such Act (106 
Stat. 2537) is amended--
            (1) in subsection (a), by striking out ``National Guard'' 
        both places it appears and inserting in lieu thereof ``Selected 
        Reserve'';
            (2) by striking out subsection (b) and inserting in lieu 
        thereof the following:
    ``(b) Coverage of Selected Reserve Combat and Early Deploying 
Units.--(1) Subsection (a) applies to officers in all units of the 
Selected Reserve that are designated as combat units or that are 
designated for deployment within 75 days of mobilization.
    ``(2) Subsection (a) shall take effect with respect to officers of 
the Army Reserve, and with respect to officers of the Army National 
Guard in units not subject to subsection (a) as of the date of the 
enactment of the National Defense Authorization Act for Fiscal Year 
1996, at the end of the 90-day period beginning on such date of 
enactment.''.
    (d) Initial Entry Training and Nondeployable Personnel.--Section 
1115 of such Act (106 Stat. 2538) is amended--
            (1) in subsections (a) and (b), by striking out ``National 
        Guard'' each place it appears and inserting in lieu thereof 
        ``Selected Reserve''; and
            (2) in subsection (c)--
                    (A) by striking out ``a member of the Army National 
                Guard enters the National Guard'' and inserting in lieu 
                thereof ``a member of the Army Selected Reserve enters 
                the Army Selected Reserve''; and
                    (B) by striking out ``from the Army National 
                Guard''.
    (e) Accounting of Members Who Fail Physical Deployability 
Standards.--Section 1116 of such Act (106 Stat. 2539) is amended by 
striking out ``National Guard'' each place it appears and inserting in 
lieu thereof ``Selected Reserve''.
    (f) Use of Combat Simulators.--Section 1120 of such Act (106 Stat. 
2539) is amended by inserting ``and the Army Reserve'' before the 
period at the end.
SEC. 514. ROTC SCHOLARSHIPS FOR THE NATIONAL GUARD.

    (a) Clarification of Restriction on Active Duty.--Paragraph (2) of 
section 2107(h) of title 10, United States Code, is amended by 
inserting ``full-time'' before ``active duty'' in the second sentence.
    (b) Redesignation of ROTC Scholarships.--Such paragraph is further 
amended by inserting after the first sentence the following new 
sentence: ``A cadet designated under this paragraph who, having 
initially contracted for service as provided in subsection (b)(5)(A) 
and having received financial assistance for two years under an award 
providing for four years of financial assistance under this section, 
modifies such contract with the consent of the Secretary of the Army to 
provide for service as described in subsection (b)(5)(B), may be 
counted, for the year in which the contract is modified, toward the 
number of appointments required under the preceding sentence for 
financial assistance awarded for a period of four years.''.
SEC. 515. REPORT ON FEASIBILITY OF PROVIDING EDUCATION BENEFITS 
              PROTECTION INSURANCE FOR SERVICE ACADEMY AND ROTC 
              SCHOLARSHIP STUDENTS WHO BECOME MEDICALLY UNABLE TO 
              SERVE.

    Not later than June 30, 1996, the Secretary of Defense shall submit 
to Congress a report on the desirability and the feasibility of the 
establishment of an insurance program, to operate at no cost to the 
Government, to insure individuals who are cadets or midshipmen at one 
of the service academies or who hold Reserve Officer Training Corps 
scholarships under section 2107 or 2107a of title 10, United States 
Code, against the loss of the value of attendance at such service 
academy (in terms of the cost of education at another institution), or 
the value of the scholarship, in cases in which such attendance or such 
scholarship is terminated by the Secretary of the military department 
concerned because the individual has become, through no fault of the 
individual, medically disqualified from military service.
SEC. 516. ACTIVE DUTY OFFICERS DETAILED TO ROTC DUTY AT SENIOR MILITARY 
              COLLEGES TO SERVE AS COMMANDANT AND ASSISTANT COMMANDANT 
              OF CADETS AND AS TACTICAL OFFICERS.

    (a) In General.--Chapter 103 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2111a. Detail of officers to senior military colleges
    ``(a) Detail of Officers To Serve as Commandant or Assistant 
Commandant of Cadets.--(1) Upon the request of a senior military 
college, the Secretary of Defense shall detail an officer on the 
active-duty list to serve as Commandant of Cadets at that college or 
(in the case of a college with an Assistant Commandant of Cadets) 
detail an officer on the active-duty list to serve as Assistant 
Commandant of Cadets at that college (but not both).
    ``(2) In the case of an officer detailed as Commandant of Cadets, 
the officer may, upon the request of the college, be assigned from 
among the Professor of Military Science, the Professor of Naval Science 
(if any), and the Professor of Aerospace Science (if any) at that 
college or may be in addition to any other officer detailed to that 
college in support of the program.
    ``(3) In the case of an officer detailed as Assistant Commandant of 
Cadets, the officer may, upon the request of the college, be assigned 
from among officers otherwise detailed to duty at that college in 
support of the program or may be in addition to any other officer 
detailed to that college in support of the program.
    ``(b) Designation of Officers as Tactical Officers.--Upon the 
request of a senior military college, the Secretary of Defense shall 
authorize officers (other than officers covered by subsection (a)) who 
are detailed to duty as instructors at that college to act 
simultaneously as tactical officers (with or without compensation) for 
the Corps of Cadets at that college.
    ``(c) Detail of Officers.--The Secretary of a military department 
shall designate officers for detail to the program at a senior military 
college in accordance with criteria provided by the college. An officer 
may not be detailed to a senior military college without the approval 
of that college.
    ``(d) Senior Military Colleges.--The senior military colleges are 
the following:
            ``(1) Texas A&M University.
            ``(2) Norwich College.
            ``(3) The Virginia Military Institute.
            ``(4) The Citadel.
            ``(5) Virginia Polytechnic Institute and State University.
            ``(6) North Georgia College.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2111a. Detail of officers to senior military colleges.''.
SEC. 517. MOBILIZATION INCOME INSURANCE PROGRAM FOR MEMBERS OF READY 
              RESERVE.

    (a) Establishment of Program.--(1) Subtitle E of title 10, United 
States Code, is amended by inserting after chapter 1213 the following 
new chapter:

             ``CHAPTER 1214--READY RESERVE INCOME INSURANCE
``Sec.
``12521. Definitions.
``12522. Establishment and purpose of program.
``12523. Program administration.
``12524. Eligible insurance companies.
``12525. Persons insured; amount.
``12526. Deductions; payment.
``12527. Payment of insurance; beneficiaries.
``12528. Premiums; accounting to the Secretary.
``12529. Forfeiture.
``Sec. 12521. Definitions
    ``In this chapter:
            ``(1) The term `covered service' means active duty in the 
        armed forces performed by a member of a reserve component under 
        orders for more than 30 days which specify that the member's 
        service is in support of an operational mission for which 
        members of the reserve components have been ordered to active 
        duty without their consent or in support of forces activated 
        during a period of war or during a period of national emergency 
        as declared by the President or Congress.
            ``(2) The term `covered member' means a member of the Ready 
        Reserve who is eligible for and who has not declined coverage 
        under this chapter.
            ``(3) The term `Secretary' means the Secretary of Defense.
            ``(4) The term `Department' means the Department of 
        Defense.
            ``(5) The term `Board' means the Board of Actuaries 
        established under section 2006(e)(1) of this title.
            ``(6) The term `Fund' means the Department of Defense Ready 
        Reserve Income Insurance Fund.
``Sec. 12522. Establishment and purpose of program
    ``(a) Establishment.--There is established an insurance program for 
members of the Ready Reserve to be known as the Department of Defense 
Ready Reserve Income Insurance Program which shall be administered by 
the Secretary. There is also established on the books of the Treasury a 
fund to be known as the Department of Defense Ready Reserve Income 
Insurance Fund, which shall be administered by the Secretary of the 
Treasury. The Fund shall be used for the accumulation of funds in order 
to finance on an actuarially sound basis liabilities of the Program.
    ``(b) Assets of Fund.--There shall be deposited into the Fund the 
following, which shall constitute the assets of the Fund:
            ``(1) Amounts paid into the Fund under sections 12526 and 
        12528 of this title.
            ``(2) Any amount appropriated to the Fund.
            ``(3) Any return on investment of the assets of the Fund.
    ``(c) Board of Actuaries.--The Department of Defense Education 
Benefits Fund Board of Actuaries shall have the actuarial 
responsibility for the Program.
    ``(d) Determination of Contributions to the Fund.--(1) Not later 
than six months after the Program is established, the Board shall 
determine (project) the premium rate for the coverage to be offered.
    ``(2) If at the time of any such valuation there has been a change 
in benefits under the Program that has been made since the last such 
valuation and such change in benefits increases or decreases the 
present value of amounts payable from the Fund, the Board shall 
determine a premium rate methodology and schedule for the liquidation 
of any liability (or actuarial gain to the Fund) created by such change 
and any previous such changes so that the present value of the sum of 
the scheduled premium payments (or reduction in payments that would 
otherwise be made) equals the cumulative increase (or decrease) in the 
present value of such benefits.
    ``(3) If at the time of any such valuation the Board determines 
that, based upon changes in actuarial assumptions since the last 
valuation, there has been an actuarial gain or loss to the Fund, the 
Board shall recommend a premium rate schedule for the amortization of 
the cumulative gain or loss to the Fund created by such change in 
assumptions and any previous such changes in assumptions through an 
increase or decrease in the payments that would otherwise be made to 
the Fund.
    ``(4) If at any time liabilities exceed assets of the Fund as a 
result of a call up, and funds are unavailable to pay benefits, the 
Secretary shall seek a special appropriation to cover the unfunded 
liability. If appropriations are not made, in any fiscal year, the 
Secretary shall limit the value of any benefits conferred by this 
program to an amount that does not exceed assets of the Fund expected 
to accrue at the end of such fiscal year. Benefits that cannot be paid 
because of such limitation of funds shall be deferred and paid only 
after funds become available.
    ``(e) Payments Into the Fund.--(1) Payment into the Fund under this 
subsection shall accumulate in accordance with the provisions of 
section 12526 of this title.
    ``(2) At the beginning of each fiscal year, the Secretary shall 
determine the sum of the following:
            ``(A) The projected amount of the premiums to be collected, 
        investment earnings, and any special appropriations received 
        for that fiscal year.
            ``(B) The amount for that year of any cumulative unfunded 
        liability (including any negative amount or any gain to the 
        Fund) resulting from payments of benefits.
            ``(C) The amount for that year (including any negative 
        amount) of any cumulative actuarial gain or loss to the Fund.
    ``(f) Investment of Assets of Fund.--The Secretary of the Treasury 
shall invest such portion of the Fund as is not in the judgment of the 
Secretary of Defense required to meet current liabilities. Such 
investments shall be in public debt securities with maturities suitable 
to the needs of the Fund, as determined by the Secretary of Defense, 
and bearing interest at rates determined by the Secretary of the 
Treasury, taking into consideration current market yields on 
outstanding marketable obligations of the United States of comparable 
maturities. The income on such investments shall be credited to and 
form a part of the Fund.
``Sec. 12523. Program administration
    ``The insurance program provided for in this chapter shall be 
administered by the Secretary, who is authorized to adopt such rules, 
procedures, and policies as in the Secretary's judgment may be 
necessary or appropriate to carry out the purposes of this chapter.
``Sec. 12524. Eligible insurance companies
    ``(a) The Secretary may, without regard to section 3709 of the 
Revised Statutes (41 U.S.C. 5), purchase from one or more insurance 
companies a policy or policies of group insurance to offer benefits to 
all members. Each such insurance company shall (1) be licensed to issue 
insurance in each of the 50 States and in the District of Columbia, and 
(2) as of the most recent December 31 for which information is 
available to the Secretary, have in effect at least 1 percent of the 
total amount of insurance which all such insurance companies have in 
effect in the United States.
    ``(b) Any insurance company which issues a policy under subsection 
(a) shall establish an administrative office at a place and under a 
name designated by the Secretary.
    ``(c) The Secretary may use the facilities and services of any 
insurance company issuing any policy under this chapter and may 
designate one such company as the representative of the other companies 
and contract to pay a reasonable fee to the designated company for its 
services.
    ``(d) The Secretary shall arrange with the insurance company 
issuing any policy under this chapter to reinsure, under conditions 
approved by the Secretary, portions of the total amount of insurance 
under such policy or policies with such other insurance companies 
(which meet qualifying criteria set forth by the Secretary) as may 
elect to participate in such reinsurance.
    ``(e) The Secretary may at any time discontinue any policy 
purchased under this section.
``Sec. 12525. Persons insured; amount
    ``(a)(1) Any policy of insurance provided under this chapter shall 
insure each covered member of the Ready Reserve against covered 
service. Any covered member ordered into covered service shall be 
entitled to payment of a basic benefit of $1,000 for each month of 
covered service which is in excess of the initial 30 days of covered 
service, unless the member has elected in writing (A) not to be insured 
under this chapter, (B) to be insured for a lower benefit of half the 
basic benefit, or (C) to be insured in a greater amount, in increments 
of $500, above the basic benefit not to exceed $5,000 per month of 
covered service (adjusted pursuant to paragraph (2)), following the 
initial 30 days of covered service, except that no member may be paid 
under this chapter for more than 12 months of covered service served 
during any period of 18 months. Payment for any period of covered 
service less than one month shall be at the rate of one-thirtieth of 
the monthly rate for each day served. Payment shall be based solely on 
insured status and on the period of covered service served; no proof of 
lost income or expenses incurred as a result of covered service shall 
be required.
    ``(2) The Secretary shall determine annually the effect of 
inflation on the benefits and establish an adjustment rate which 
ensures that there is no loss of value in the benefits payable to a 
member. Adjustments shall apply to benefits for members with existing 
coverage and for newly eligible members. Such adjustments for inflation 
will be rounded to the nearest $10 increment.
    ``(3) Members of the Ready Reserve who, under regulations 
prescribed by the Secretary of Defense in coordination with the 
Secretary of Transportation, are serving on active duty (or full-time 
National Guard duty) shall not be eligible to purchase insurance under 
this chapter. Additional categories of members of the Ready Reserve, in 
the discretion of the Secretary of Defense, may also be excluded from 
eligibility to purchase insurance under this chapter.
    ``(b) Promptly following the effective date of this chapter, the 
Secretary shall make a one-time offer of insurance coverage under this 
chapter to all persons who were members of the Ready Reserve of an 
armed force on that date and who remain members of the Ready Reserve. 
Members of the Ready Reserve, first becoming eligible for coverage 
after the effective date of this chapter, shall be automatically 
enrolled for the basic benefit unless declined, or another amount is 
elected under subsection (a)(1).
    ``(c) Members shall be given a written explanation of the insurance 
and be advised that they have the right (1) to decline coverage 
altogether, (2) to select half the basic benefit, or (3) to select 
increased benefits. The right of a member of the Ready Reserve to 
decline, increase, or decrease coverage shall be exercised within 30 
days of first being eligible for coverage.
``Sec. 12526. Deductions; payment
    ``(a)(1) During any period in which a member insured under this 
chapter is participating in paid reserve training or other duty, there 
shall be deducted each month from the member's basic pay or 
compensation for inactive duty training an amount determined by the 
Secretary to be the same for all members of the Ready Reserve who 
subscribe to the same amount of insurance as the share of the cost 
attributable to insuring such member. As provided in section 12525 of 
this title, the Secretary may establish graduated monthly premiums for 
an amount of insurance less than the basic amount of coverage or in 
excess of the basic coverage amount.
    ``(2) Any member insured under this chapter who is not in a pay 
status in which the member receives pay on a monthly basis shall pay 
the cost attributable to insuring such member in accordance with 
regulations to be adopted by the Secretary.
    ``(b) An amount equal to the first amount due on insurance under 
this chapter may be advanced from current appropriations for military 
pay to any such member, which amount shall constitute a lien upon the 
pay for military service accruing to the person to whom such advance 
was made, and shall be collected therefrom if not otherwise paid. No 
disbursing or certifying officer shall be responsible for any loss by 
reason of such advance.
    ``(c) The sums withheld from the basic or other pay of insured 
members or deposited by insured members, together with the income 
derived from any dividends or premium rate adjustments, shall be 
deposited to the credit of the Fund. All premium payments for insurance 
issued under this chapter shall be deposited into the Fund.
``Sec. 12527. Payment of insurance; beneficiaries
    ``(a) A member insured under this chapter who serves in excess of 
30 days of covered service shall be paid the amount to which such 
member is entitled on a monthly basis, with the first payment due no 
later than one month following the 30th day of covered service. The 
Secretary shall adopt regulations prescribing the manner in which 
payments shall be made, either to the member or, in accordance with 
subsection (d), to a designated person or entity.
    ``(b) A member may designate in writing another person (including a 
spouse, parent, or other person with an insurable interest as 
determined by the Secretary by regulation) to whom the insurance 
payments to which such member is entitled are to be paid. Such 
designation may be made to a bank or other financial institution, to 
the credit of a designated person. In the latter event, insurance 
payments to which a member becomes entitled shall be paid to the 
designated person, bank or financial institution.
    ``(c) Any amount of insurance payable under this chapter on account 
of a deceased member's period of covered service shall be paid, upon 
the establishment of a valid claim therefor, to the beneficiary or 
beneficiaries which the former member had designated in writing. If no 
such designation has been made, the amount shall be payable in 
accordance with the laws of the State of the member's domicile.
``Sec. 12528. Premiums; accounting to the Secretary
    ``(a) Each policy of insurance provided by the Secretary under this 
chapter shall include for the first policy years a fixed monetary 
premium per $1,000 of insurance, based, in consultation with the Board, 
on the best available estimate of risk and financial exposure, levels 
of subscription by members, and other relevant factors. Different 
premium levels may be established for different amounts of coverage, 
provided that the premium rate established for the basic benefit shall 
not be at a premium rate higher than the premium rate set for increased 
coverages.
    ``(b) Each policy shall include provisions whereby the premium rate 
for the first policy year shall be continued for subsequent policy 
years (but the premium amount may be increased to account or inflation-
adjusted benefit increases). The rate may be readjusted for any 
subsequent year with the consent of the Secretary based on prior 
consultation with the Board of Actuaries.
``Sec. 12529. Forfeiture
    ``Any person found guilty of mutiny, treason, spying, or desertion, 
or who refuses to perform service in the armed forces or refuses to 
wear the uniform of any of the armed forces, shall forfeit all rights 
to insurance under this chapter.''.
    (2) The tables of chapters at the beginning of subtitle E, and at 
the beginning of part II of subtitle E, of title 10, United States 
Code, are amended by inserting after the item relating to chapter 1213 
the following new item:

``1214. Ready Reserve Income Insurance......................   12521''.
    (b) Effective Date.--The insurance program provided for in chapter 
1218 of title 10, United States Code, as added by subsection (a), and 
the deductions and contributions for that program shall take effect on 
a date designated by the Secretary. Such date may not be later than 
September 30, 1996. The Secretary shall publish in the Federal Register 
notice of such effective date.
SEC. 518. DELAY IN REORGANIZATION OF ARMY ROTC REGIONAL HEADQUARTERS 
              STRUCTURE.

    (a) Delay.--The Secretary of the Army may not take any action to 
reorganize the regional headquarters and basic camp structure of the 
Reserve Officers Training Corps program of the Army until six months 
after the date on which the report required by subsection (d) is 
submitted.
    (b) Cost-Benefit Analysis.--The Secretary of the Army shall conduct 
a comparative cost-benefit analysis of various options for the 
reorganization of the regional headquarters and basic camp structure of 
the Army ROTC program. As part of such analysis, the Secretary shall 
measure each reorganization option considered against a common set of 
criteria.
    (c) Selection of Reorganization Option for Implementation.--Based 
on the findings resulting from the cost-benefit analysis under 
subsection (b) and such other factors as the Secretary considers 
appropriate, the Secretary shall select one reorganization option for 
implementation. The Secretary may select an option for implementation 
only if the Secretary finds that the cost-benefit analysis and other 
factors considered clearly demonstrate that such option, better than 
any other option considered--
            (1) provides the structure to meet projected mission 
        requirements;
            (2) achieves the most significant personnel and cost 
        savings;
            (3) uses existing basic and advanced camp facilities to the 
        maximum extent possible;
            (4) minimizes additional military construction costs; and
            (5) makes maximum use of the reserve components to support 
        basic and advanced camp operations, thereby minimizing the 
        effect of those operations on active duty units.
    (d) Report.--Not later than 60 days after the date of the enactment 
of this Act, the Secretary of the Army shall submit to the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives a report describing the reorganization 
option selected under subsection (c). The report shall include the 
results of the cost-benefit analysis under subsection (b) and a 
detailed rationale for the reorganization option selected.
SEC. 519. ACTIVE DUTY ASSOCIATE UNIT RESPONSIBILITY.

    (a) Associate Units.--Subsection (a) of section 1131 of the 
National Defense Authorization Act for Fiscal Year 1993 (Public Law 
102-484; 106 Stat. 2540) is amended to read as follows:
    ``(a) Associate Units.--The Secretary of the Army shall require--
            ``(1) that each ground combat maneuver brigade of the Army 
        National Guard that (as determined by the Secretary) is 
        essential for the execution of the National Military Strategy 
        be associated with an active-duty combat unit; and
            ``(2) that combat support and combat service support units 
        of the Army Selected Reserve that (as determined by the 
        Secretary) are essential for the execution of the National 
        Military Strategy be associated with active-duty units.''.
    (b) Responsibilities.--Subsection (b) of such section is amended--
            (1) by striking out ``National Guard combat unit'' in the 
        matter preceding paragraph (1) and inserting in lieu thereof 
        ``National Guard unit or Army Selected Reserve unit that (as 
        determined by the Secretary under subsection (a)) is essential 
        for the execution of the National Military Strategy''; and
            (2) by striking out ``of the National Guard unit'' in 
        paragraphs (1), (2), (3), and (4) and inserting in lieu thereof 
        ``of that unit''.
              Subtitle C--Matters Relating to Force Levels

SEC. 521. FLOOR ON END STRENGTHS.

    (a) In General.--Chapter 39 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 691. Permanent end strength levels to support two major regional 
              contingencies
    ``(a) The end strengths specified in subsection (b) are the minimum 
strengths necessary to enable the armed forces to fulfill a national 
defense strategy calling for the United States to be able to 
successfully conduct two nearly simultaneous major regional 
contingencies.
    ``(b) Unless otherwise provided by law, the number of members of 
the armed forces (other than the Coast Guard) on active duty at the end 
of any fiscal year shall be not less than the following:
            ``(1) For the Army, 495,000.
            ``(2) For the Navy, 395,000.
            ``(3) For the Marine Corps, 174,000.
            ``(4) For the Air Force, 381,000.
    ``(c) No funds appropriated to the Department of Defense may be 
used to reduce the active duty end strengths for the armed forces below 
the levels specified in subsection (b) unless the Secretary of Defense 
submits to Congress notice of the proposed lower end strength levels 
and a justification for those levels. No action may then be taken to 
reduce such end strengths below the levels specified in subsection (b) 
until the end of the six-month period beginning on the date of the 
submission of such notification to Congress.
    ``(d) The number of members of the armed forces on active duty 
shall be counted for purposes of this section in the same manner as 
applies under section 115(a)(1) of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``691. Permanent end strength levels to support two major regional 
                            contingencies.''.
SEC. 522. ARMY OFFICER MANNING LEVELS.

    (a) In General.--(1) Chapter 331 of title 10, United States Code, 
is amended by inserting after the table of sections the following new 
section:
``Sec. 3201. Officers on active duty: minimum strength based on 
              requirements
    ``(a) The Secretary of the Army shall ensure that (beginning with 
fiscal year 1999) the strength at the end of each fiscal year of 
officers on active duty is sufficient to enable the Army to meet at 
least 90 percent of the programmed manpower structure for the active 
component of the Army.
    ``(b) The number of officers on active duty shall be counted for 
purposes of this section in the same manner as applies under section 
115(a)(1) of this title.
    ``(c) In this section:
            ``(1) The term `programmed manpower structure' means the 
        aggregation of billets describing the full manpower 
        requirements for units and organizations in the programmed 
        force structure.
            ``(2) The term `programmed force structure' means the set 
        of units and organizations that exist in the current year and 
        that is planned to exist in each future year under the then-
        current Future-Years Defense Program.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after ``Sec.'' the following new item:

``3201. Officers on active duty: minimum strength based on 
                            requirements.''.
  (b) Assistance in Accomplishing Requirement.--The Secretary of 
Defense shall provide to the Army sufficient personnel and financial 
resources (including resources from outside Army accounts) to enable 
the Army to meet the requirement specified in section 3201 of title 10, 
United States Code, as added by subsection (a).
SEC. 523. COMPTROLLER GENERAL REVIEW OF PROPOSED ARMY END STRENGTH 
              ALLOCATIONS.

    (a) In General.--During fiscal years 1996 through 2001, the 
Comptroller General of the United States shall analyze the plans of the 
Secretary of the Army for the allocation of assigned active component 
end strengths for the Army through the requirements process known as 
Total Army Analysis 2003 and through any subsequent similar 
requirements process of the Army that is conducted before 2002. The 
Comptroller General's analysis shall consider whether the proposed 
active component end strengths and planned allocation of forces for 
that period will be sufficient to implement the national military 
strategy. In monitoring those plans, the Comptroller General shall 
determine the extent to which the Army will be able during that 
period--
            (1) to man fully the combat force based on the projected 
        active component Army end strength for each of fiscal years 
        1996 through 2001;
            (2) to meet the support requirements for the force and 
        strategy specified in the report of the Bottom-Up Review, 
        including requirements for operations other than war; and
            (3) to streamline further Army infrastructure in order to 
        eliminate duplication and inefficiencies and replace active 
        duty personnel in overhead positions, whenever practicable, 
        with civilian or reserve personnel.
    (b) Access to Documents, Etc.--The Secretary of the Army shall 
ensure that the Comptroller General is provided access, on a timely 
basis and in accordance with the needs of the Comptroller General, to 
all analyses, models, memoranda, reports, and other documents prepared 
or used in connection with the requirements process of the Army known 
as Total Army Analysis 2003 and any subsequent similar requirements 
process of the Army that is conducted before 2002.
    (c) Annual Report.--Not later than March 1 of each year through 
2002, the Comptroller General shall submit to Congress a report on the 
findings and conclusions of the Comptroller General under this section.
SEC. 524. MANNING STATUS OF HIGHLY DEPLOYABLE SUPPORT UNITS.

    Not later than September 30, 1996, the Secretary of each military 
department 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 units under that Secretary's 
jurisdiction that (as determined by the Secretary) are high-priority 
support units that would deploy early in a contingency operation or 
other crisis and that are, as a matter of policy, managed at less than 
100 percent of their authorized strengths. The Secretary shall include 
in the report the number of such high-priority support units (shown by 
type of unit), the level of manning within such high-priority support 
units, and either the justification for manning of less than 100 
percent or the status of corrective action.
SEC. 525. SENSE OF CONGRESS CONCERNING PERSONNEL TEMPO RATES.

    (a) Findings.--Congress makes the following findings:
            (1) Excessively high personnel tempo rates for members of 
        the Armed Forces resulting from high-tempo unit operations 
        degrades unit readiness and morale and eventually can be 
        expected to adversely affect unit retention.
            (2) The Armed Forces have begun to develop methods to 
        measure and manage personnel tempo rates.
            (3) The Armed Forces have attempted to reduce operations 
        and personnel tempo for heavily tasked units by employing 
        alternative capabilities and reducing tasking requirements.
    (b) Sense of Congress.--The Secretary of Defense should continue to 
enhance the knowledge within the Armed Forces of personnel tempo and to 
improve the techniques by which personnel tempo is managed with a view 
toward establishing and achieving reasonable personnel tempo standards 
for all personnel, regardless of unit or assignment.
     Subtitle D--Amendments to the Uniform Code of Military Justice

SEC. 541. REFERENCES TO UNIFORM CODE OF MILITARY JUSTICE.

    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 chapter 47 of 
title 10, United States Code (the Uniform Code of Military Justice).
SEC. 542. FORFEITURE OF PAY AND ALLOWANCES DURING CONFINEMENT BY 
              SENTENCE OF COURT-MARTIAL.

    (a) Forfeiture.--(1) Subchapter VIII is amended by inserting after 
section 857 (article 57) the following new section (article):
``Sec. 857a. Art. 57a. Sentences: forfeiture of pay and allowances 
              during confinement by sentence of court-martial
    ``(a) A court-martial sentence, as announced by the sentencing 
authority, that includes confinement shall result in the forfeiture of 
pay and allowances due that member during the period of the confinement 
or while on parole. The forfeiture shall be effective on the date on 
which the sentence is announced. The percentage of pay and allowances 
forfeited shall be the maximum percentage that the court-martial could 
have directed as part of the sentence.
    ``(b) If the sentence of a member who forfeits pay and allowances 
under subsection (a) is set aside or disapproved or, as finally 
approved, does not provide for confinement, the member shall be paid 
the pay and allowances which the member would have been paid, but for 
the forfeiture, for the period during which the forfeiture was in 
effect.''.
    (2) The table of sections at the beginning of subchapter VIII is 
amended by inserting after the item relating to section 857 (article 
57) the following new item:

``857a. 57a. Sentences: forfeiture of pay and allowances during 
                            confinement by sentence of court-
                            martial.''.
    (b) Action by the Convening Authority.--Section 860 (article 60) 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) In a case involving an accused who has dependents and in 
which the sentence, as approved, includes confinement, the convening 
authority or other person taking action under this section may waive 
some or all of the forfeiture of pay and allowances otherwise required 
by section 857a of this title (article 57a). Any amount of pay and 
allowances payable only by reason of such a waiver shall be paid, as 
the convening authority or other person taking action under this 
section directs, to the dependents of the accused.''
    (c) Conforming Amendment.--(1) Section 804 of title 37, United 
States Code, is repealed.
    (2) The table of sections at the beginning of chapter 15 of such 
title is amended by striking out the item relating to section 804.
SEC. 543. REFUSAL TO TESTIFY BEFORE COURT-MARTIAL.

    Section 847(b) (article 47(b)) is amended by striking out ``shall 
be'' in the second sentence and all that follows inserting in lieu 
thereof ``shall be fined or imprisoned, or both, at the court's 
discretion.''.

SEC. 544. FLIGHT FROM APPREHENSION.

    (a) In General.--Section 895 (article 95) is amended to read as 
follows:
``Sec. 895. Art. 95. Resistance, flight, breach of arrest, and escape
    ``Any person subject to this chapter who--
            ``(1) resists apprehension;
            ``(2) flees from apprehension;
            ``(3) breaks arrest; or
            ``(4) escapes from custody or confinement;
shall be punished as a court-martial may direct.''.
    (b) Clerical Amendment.--The item relating to section 895 (article 
95) in the table of sections at the beginning of subchapter X is 
amended to read as follows:

``895. 95. Resistance, flight, breach of arrest, and escape.''.
SEC. 545. CARNAL KNOWLEDGE.

    (a) Gender Neutrality.--Subsection (b) of section 920 (article 120) 
is amended to read as follows:
    ``(b) Any person subject to this chapter who, under circumstances 
not amounting to rape, commits an act of sexual intercourse with a 
person--
            ``(1) who is not that person's spouse; and
            ``(2) who has not attained the age of sixteen years;
is guilty of carnal knowledge and shall be punished as a court-martial 
may direct.''.
    (b) Mistake of Fact.--Such section (article) is further amended by 
adding at the end the following new subsection:
    ``(d) In a prosecution under subsection (b), it is a defense that--
            ``(1) the person with whom the accused committed the act of 
        sexual intercourse had at the time of the alleged offense 
        attained the age of twelve years; and
            ``(2) the accused reasonably believed that that person had 
        at the time of the alleged offense attained the age of sixteen 
        years.''.

SEC. 546. TIME AFTER ACCESSION FOR INITIAL INSTRUCTION IN THE UNIFORM 
              CODE OF MILITARY JUSTICE.

    Section 937(a)(1) (article 137(a)(1)) is amended by striking out 
``within six days'' and inserting in lieu thereof ``within fourteen 
days''.

SEC. 547. PERSONS WHO MAY APPEAR BEFORE THE UNITED STATES COURT OF 
              APPEALS FOR THE ARMED FORCES.

    Section 944 (article 144) is amended by adding at the end the 
following new sentence: ``However, no person may appear before the 
court (whether on a brief or in person) other than an attorney who is 
admitted to practice before the court or who is authorized to appear by 
the court in a particular case (except that the court may permit a 
third-year law student certified under a State rule for practical 
training of law students to appear as an amicus curiae).''.

SEC. 548. DISCRETIONARY REPRESENTATION BY GOVERNMENT APPELLATE DEFENSE 
              COUNSEL IN PETITIONING SUPREME COURT FOR WRIT OF 
              CERTIORARI.

    Section 870 (article 70) is amended--
            (1) in subsection (c), by inserting ``(except as provided 
        in subsection (f))'' before ``the Supreme Court''; and
            (2) by adding at the end the following new subsection:
    ``(f) Representation of the accused by appellate defense counsel in 
preparation of a petition to the Supreme Court for a writ of certiorari 
shall be at the discretion of the appellate defense counsel.''.

SEC. 549. REPEAL OF TERMINATION OF AUTHORITY FOR CHIEF JUSTICE OF 
              UNITED STATES TO DESIGNATE ARTICLE III JUDGES FOR 
              TEMPORARY SERVICE ON COURT OF APPEALS FOR THE ARMED 
              FORCES.

    Subsection (i) of section 1301 of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 
10 U.S.C. 942 note) is repealed.

SEC. 550. TECHNICAL AMENDMENT.

    Section 866(f) (article 66(f)) is amended by striking out ``Courts 
of Military Review'' both places it appears and inserting in lieu 
thereof ``Courts of Criminal Appeals''.

                       Subtitle E--Other Matters

SEC. 551. EQUALIZATION OF ACCRUAL OF SERVICE CREDIT FOR OFFICERS AND 
              ENLISTED MEMBERS.

    (a) Enlisted Service Credit.--Section 972 of title 10, United 
States Code, is amended--
            (1) by inserting ``(a) Enlisted Members Required To Make Up 
        Time Lost.--'' before ``An enlisted member'';
            (2) by striking out paragraphs (3) and (4) and inserting in 
        lieu thereof the following:
            ``(3) is confined by military or civilian authorities for 
        more than one day before, during, or after trial; or''; and
            (3) by redesignating paragraph (5) as paragraph (4).
    (b) Officer Service Credit.--Such section is further amended by 
adding at the end the following:
    ``(b) Officers Not Allowed Service Credit for Time Lost.--In the 
case of an officer of an armed force who after the date of the 
enactment of the National Defense Authorization Act for Fiscal Year 
1996--
            ``(1) deserts;
            ``(2) is absent from his organization, station, or duty for 
        more than one day without proper authority, as determined by 
        competent authority;
            ``(3) is confined by military or civilian authorities for 
        more than one day before, during, or after trial; or
            ``(4) is unable for more than one day, as determined by 
        competent authority, to perform his duties because of 
        intemperate use of drugs or alcoholic liquor, or because of 
        disease or injury resulting from his misconduct;
the period of such desertion, absence, confinement, or inability to 
perform duties may not be counted in computing, for any purpose other 
than basic pay under section 205 of title 37, the officer's length of 
service.''.
    (c) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 972. Members: effect of time lost
    (2) The item relating to section 972 in the table of sections at 
the beginning of chapter 49 of such title is amended to read as 
follows:

``972. Members: effect of time lost.''.
    (d) Conforming Amendments.--(1) Section 1405(c) is amended--
            (A) by striking out ``Made Up.--Time'' and inserting in 
        lieu thereof ``Made Up or Excluded.--(1) Time'';
            (B) by striking out ``section 972'' and inserting in lieu 
        thereof ``section 972(a)'';
            (C) by inserting after ``of this title'' the following: ``, 
        or required to be made up by an enlisted member of the Navy, 
        Marine Corps, or Coast Guard under that section with respect to 
        a period of time after the date of the enactment of the 
        National Defense Authorization Act for Fiscal Year 1995,''; and
            (D) by adding at the end the following:
    ``(2) Section 972(b) of this title excludes from computation of an 
officer's years of service for purposes of this section any time 
identified with respect to that officer under that section.''.
    (2) Chapter 367 of such title is amended--
            (A) in section 3925(b), by striking out ``section 972'' and 
        inserting in lieu thereof ``section 972(a)''; and
            (B) by adding at the end of section 3926 the following new 
        subsection:
    ``(e) Section 972(b) of this title excludes from computation of an 
officer's years of service for purposes of this section any time 
identified with respect to that officer under that section.''.
    (3)(A) Chapter 571 of such title is amended by inserting after 
section 6327 the following new section:
``Sec. 6328. Computation of years of service: voluntary retirement
    ``(a) Enlisted Members.--Time required to be made up under section 
972(a) of this title after the date of the enactment of this section 
may not be counted in computing years of service under this chapter.
    ``(b) Officers.--Section 972(b) of this title excludes from 
computation of an officer's years of service for purposes of this 
chapter any time identified with respect to that officer under that 
section.''.
    (B) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 6327 the 
following new item:

``6328. Computation of years of service: voluntary retirement.''.
    (4) Chapter 867 of such title is amended--
            (A) in section 8925(b), by striking out ``section 972'' and 
        inserting in lieu thereof ``section 972(a)''; and
            (B) by adding at the end of section 8926 the following new 
        subsection:
    ``(d) Section 972(b) of this title excludes from computation of an 
officer's years of service for purposes of this section any time 
identified with respect to that officer under that section.''.
    (e) Effective Date and Applicability.--The amendments made by this 
section shall take effect on the date of the enactment of this Act and 
shall apply to any period of time covered by section 972 of title 10, 
United States Code, that occurs after that date.
SEC. 552. EXTENSION OF EXPIRING PERSONNEL AUTHORITIES.

    (a) Grade Determination Authority for Certain Reserve Medical 
Officers.--Sections 3359(b) and 8359(b) of title 10, United States 
Code, are amended by striking out ``September 30, 1995'' and inserting 
in lieu thereof ``September 30, 1996''.
    (n) Promotion Authority for Certain Reserve Officers Serving on 
Active Duty.--Sections 3380(d) and 8380(d) of such title are amended by 
striking out ``September 30, 1995'' and inserting in lieu thereof 
``September 30, 1996''.
    (c) Years of Service for Mandatory Transfer to the Retired 
Reserve.--Section 1016(d) of the Department of Defense Authorization 
Act, 1984 (10 U.S.C. 3360 note), is amended by striking out ``September 
30, 1995'' and inserting in lieu thereof ``September 30, 1996''.
    (d) Authority for Temporary Promotions of Certain Navy 
Lieutenants.--Section 5721 of title 10, United States Code, is amended 
by striking out ``September 30, 1995'' and inserting in lieu thereof 
``September 30, 1998''.

SEC. 553. INCREASE IN EDUCATIONAL ASSISTANCE ALLOWANCE WITH RESPECT TO 
              SKILLS OR SPECIALTIES FOR WHICH THERE IS A CRITICAL 
              SHORTAGE OF PERSONNEL.

    Section 16131 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(j)(1) In the case of a person who has a skill or specialty 
designated by the Secretary concerned as a skill or specialty in which 
there is a critical shortage of personnel or for which it is difficult 
to recruit or, in the case of critical units, retain personnel, the 
Secretary concerned may increase the rate of the educational assistance 
allowance applicable to that person to such rate in excess of the rate 
prescribed under subparagraphs (A) through (D) of subsection (b)(1) as 
the Secretary of Defense considers appropriate, but the amount of any 
such increase may not exceed $350 per month.
    ``(2) The authority provided by paragraph (1) shall be exercised by 
the Secretaries of the military departments under regulations 
prescribed by the Secretary of Defense.''.

 SEC. 554. AMENDMENTS TO EDUCATION LOAN REPAYMENT PROGRAMS.

    (a) General Education Loan Repayment Program.--Section 2171(a)(1) 
of title 10, United States Code, is amended--
            (1) by striking out ``or'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph (B):
            ``(B) any loan made under part D of such title (the William 
        D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.); 
        or''.
    (b) Education Loan Repayment Program for Enlisted Members of 
Selected Reserve With Critical Specialties.--Section 16301(a)(1) of 
such title is amended--
            (1) by striking out ``or'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph (B):
            ``(B) any loan made under part D of such title (the William 
        D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.); 
        or''.
    (c) Education Loan Repayment Program for Health Professions 
Officers Serving in Selected Reserve With Wartime Critical Medical 
Skill Shortages.--Section 16302(a) of such title is amended--
            (1) by redesignating paragraphs (2) through (4) as 
        paragraphs (3) through (5) respectively; and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2) any loan made under part D of such title (the William 
        D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.); 
        or''.

SEC. 555. RECOGNITION BY STATES OF LIVING WILLS OF MEMBERS, CERTAIN 
              FORMER MEMBERS, AND THEIR DEPENDENTS.

    (a) Recognition by States Required.--(1) Chapter 53 of title 10, 
United States Code, is amended by inserting after section 1044b the 
following new section:
``Sec. 1044c. Military advance medical directives: requirement for 
              recognition by States
    ``(a) Instruments To Be Given Legal Effect Without Regard to State 
Law.--A military advance medical directive--
            ``(1) is exempt from any requirement of form, substance, 
        formality, or recording that is provided for advance medical 
        directives under the laws of a State; and
            ``(2) shall be given the same legal effect as an advance 
        medical directive prepared and executed in accordance with the 
        laws of the State concerned.
    ``(b) Military Advance Medical Directives.--For the purposes of 
this section, a military advance medical directive is any written 
declaration regarding future medical treatment that--
            ``(1) is executed by a person eligible for legal assistance 
        under section 1044(a) of this title or regulations of the 
        Secretary concerned; and
            ``(2) is intended--
                    ``(A) to provide, withdraw, or withhold life-
                prolonging procedures, including hydration and 
                sustenance, in the event of a terminal condition or 
                persistent vegetative state of the declarant; or
                    ``(B) to appoint another person to make health care 
                decisions for the declarant under circumstances stated 
                in the declaration if the declarant is determined to be 
                incapable of making informed health care decisions.
    ``(c) Statement To Be Included.--Under regulations prescribed by 
the Secretary concerned, a written declaration described in subsection 
(b) shall contain a statement that clearly indicates the purpose of the 
declaration to serve as the military advance medical directive of the 
declarant. However, the failure of a military advance medical directive 
to include such a statement shall not be construed to negate the legal 
effect of the directive under subsection (a).
    ``(d) State Defined.--In this section, the term `State' includes 
the District of Columbia, the Commonwealth of Puerto Rico, and a 
possession of the United States.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1044b the 
following new item:

``1044c. Military advance medical directives: requirement for 
                            recognition by States.''.
    (b) Effective Date.--Section 1044c of title 10, United States Code, 
as added by subsection (a), shall apply with respect to any military 
advance medical directive described in such section declared before, 
on, or after the date of the enactment of this Act.

SEC. 556. TRANSITIONAL COMPENSATION FOR DEPENDENTS OF MEMBERS OF THE 
              ARMED FORCES SEPARATED FOR DEPENDENT ABUSE.

    (a) Mandatory Program.--Subsection (a) of section 1059 of title 10, 
United States Code, is amended by striking out ``may each establish a 
program'' and inserting in lieu thereof ``shall each establish a 
program''.
    (b) Payment to Dependents of Members Not Discharged.--Subsection 
(d) of such section is amended by striking out ``of a separation from 
active duty as'' in the first sentence.
SEC. 557. ARMY RANGER TRAINING.

    (a) In General.--(1) Chapter 401 of title 10, United States Code, 
is amended by inserting after section 4302 the following new section:
``Sec. 4303. Army Ranger Training: instructor staffing; safety
    ``(a) Levels of Personnel Assigned To Be Not Less Than Number 
Required.--(1) The Secretary of the Army shall ensure that at all times 
the number of officers, and the number of enlisted members, permanently 
assigned to the Army Ranger Training Brigade (or other organizational 
element of the Army primarily responsible for ranger student training) 
are not less than the required manning spaces for that brigade.
    ``(2) If at any time the number of officers, or the number of 
enlisted members, permanently assigned to the Ranger Training Brigade 
is less than the required manning spaces for officers, or for enlisted 
members, as the case may be, for the Brigade, the Secretary of the Army 
shall submit to Congress a notice of such shortage, together with a 
statement of the reasons for the shortage and of the expected date when 
the number assigned will be not less than the required manning spaces, 
in accordance with paragraph (1).
    ``(b) Required Manning Spaces.--(1) The Secretary of the Army may 
not (except as provided in paragraph (3)) reduce the required manning 
spaces for the Ranger Training Brigade below the baseline required 
manning spaces.
    ``(2) In this section:
            ``(A) The term `required manning spaces' means the number 
        of personnel spaces for officers, and the number of personnel 
        spaces for enlisted members, that are designated in Army 
        authorization documents as the number required to accomplish 
        the missions of a particular unit or organization.
            ``(B) The term `baseline required manning spaces' means the 
        required manning spaces for the Army Ranger Training Brigade as 
        of February 10, 1995, of 94 officers and 658 enlisted members.
    ``(3) The Secretary may (subject to paragraph (4)) make reductions 
in required manning spaces for the Army Ranger Training Brigade from 
the baseline required manning spaces if--
            ``(A) reductions in ranger student training loads result in 
        decreased instructor workload; and
            ``(B) one or more of the three major phases of the Ranger 
        Course (conducted at Fort Benning, Georgia, at the Mountain 
        Ranger Camp, and in Florida) is eliminated.
    ``(4) Before making a reduction authorized by paragraph (3) in 
required manning spaces, the Secretary of the Army shall submit to 
Congress a report on the proposed reduction. Such a reduction may not 
be made unless the report includes a certification by the Secretary 
that the reduction will not reduce the ability of the commander of the 
Ranger Training Brigade to conduct training safely. The report shall 
include a description of the reduction (including specification of the 
number of officers and the number of enlisted members that will be 
considered to be required to carry out the missions of the Army Ranger 
Training Brigade after the reduction) and shall set forth the rationale 
of the Secretary for the reduction.
    ``(c) Training Safety Cells.--(1) The Secretary of the Army shall 
establish and maintain an organizational entity known as a `safety 
cell' as part of the organizational elements of the Army responsible 
for conducting each of the three major phases of the Ranger Course. The 
safety cell in each different geographic area of Ranger Course training 
shall be comprised of personnel who have sufficient continuity and 
experience in that geographic area of such training to be knowledgeable 
of the local conditions year-round, including conditions of terrain, 
weather, water, and climate and other conditions and the potential 
effect on those conditions on Ranger student training and safety.
    ``(2) Members of each safety cell shall be assigned in sufficient 
numbers to serve as advisers to the officers in charge of the major 
phase of Ranger training and shall assist those officers in making 
informed daily `go' and `no-go' decisions regarding training in light 
of all relevant conditions, including conditions of terrain, weather, 
water, and climate and other conditions.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 4302 the 
following new item:

``4303. Army Ranger Training: instructor staffing; safety.''.
    (b) Accomplishment of Required Manning Levels.--(1) If, as of the 
date of the enactment of this Act, the number of officers, or the 
number of enlisted members, permanently assigned to the Ranger Training 
Brigade is not 100 percent (or more) of the requirement specified in 
subsection (b) of section 4303 of title 10, United States Code, as 
added by subsection (a), the Secretary of the Army--
            (A) shall take such steps as necessary to accomplish that 
        requirement within 12 months after such date of enactment; and
            (B) not later than 90 days after such date of enactment, 
        shall submit to Congress a plan to achieve and maintain that 
        requirement.
    (2) If the Secretary does not accomplish the requirement referred 
to in paragraph (1) with respect to both officers and enlisted members 
within 12 months after the date of the enactment of this Act (as 
required by paragraph (1)(A)), the Secretary shall halt all training 
activities of the Ranger Training Brigade until the requirement is met.
SEC. 558. REPEAL OF CERTAIN CIVIL-MILITARY PROGRAMS.

    (a) Repeal of Civil-Military Cooperative Action Program.--(1) 
Section 410 of title 10, United States Code, and section 1081(a) of the 
National Defense Authorization Act for Fiscal Year 1993 (Public Law 
102-484; 10 U.S.C. 410 note) are repealed:
    (2) The table of sections at the beginning of chapter 20 of title 
10, United States Code, is amended by striking out the item relating to 
section 410.
    (b) Repeal of Related Provisions.--The following sections of the 
National Defense Authorization Act for Fiscal Year 1993 (Public Law 
102-484) are repealed:
            (1) Section 1045 (10 U.S.C. 410 note), relating to a pilot 
        outreach program to reduce demand for illegal drugs.
            (2) Section 1091 (32 U.S.C. 501 note), relating to the 
        National Guard Civilian Youth Opportunities Program.
    (c) Termination of Support of Civilian Community Corps.--(1) The 
Secretary of Defense may not provide support to, or participate in, the 
Civilian Community Corps Demonstration Program established under 
subtitle E of title I of the National and Community Service Act of 1990 
(42 U.S.C. 12611-12626) or the Civilian Community Corps required as 
part of that demonstration program.
    (2) Section 1093 of the National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484; 42 U.S.C. 12612 note), relating 
to coordination between the National Guard Civilian Youth Opportunities 
Pilot Program and the Civilian Community Corps Demonstration Program, 
is repealed.
SEC. 559. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL BASED UPON 
              SERVICE IN EL SALVADOR.

    (a) In General.--For the purpose of determining eligibility of 
members and former members of the Armed Forces for the Armed Forces 
Expeditionary Medal, the country of El Salvador during the period 
beginning on January 1, 1981 and ending on February 1, 1992, shall be 
treated as having been designated as an area and a period of time in 
which members of the Armed Forces participated in operations in 
significant numbers and otherwise met 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 served in El Salvador during the 
period beginning on January 1, 1981 and ending on February 1, 1992 meet 
the individual service requirements for award of the Armed Forces 
Expeditionary Medal as established in applicable regulations. Such 
determinations shall be made as expeditiously as possible after the 
date of the enactment of this Act.
SEC. 560. REVISION AND CODIFICATION OF MILITARY FAMILY ACT AND MILITARY 
              CHILD CARE ACT.

    (a) In General.--(1) Subtitle A of title 10, United States Code, is 
amended by inserting after chapter 87 the following new chapter:

     ``CHAPTER 88--MILITARY FAMILY PROGRAMS AND MILITARY CHILD CARE
``Subchapter                                                       Sec.
  ``I.   Military Family Programs                                  1781
 ``II.   Military Child Care                                       1791
                ``SUBCHAPTER I--MILITARY FAMILY PROGRAMS
``Sec.
``1781. Office of Family Policy.
``1782. Surveys of military families.
``1783. Family members serving on advisory committees.
``1784. Employment opportunities for military spouses.
``1785. Youth sponsorship program.
``1786. Dependent student travel within the United States.
``1787. Reporting of child abuse.
``Sec. 1781. Office of Family Policy
    ``(a) Establishment.--There is in the Office of the Secretary of 
Defense an Office of Family Policy (hereinafter in this section 
referred to as the `Office'). The Office shall be under the Assistant 
Secretary of Defense for Force Management and Personnel.
    ``(b) Duties.--The Office--
            ``(1) shall coordinate programs and activities of the 
        military departments to the extent that they relate to military 
        families; and
            ``(2) shall make recommendations to the Secretaries of the 
        military departments with respect to programs and policies 
        regarding military families.
    ``(c) Staff.--The Office shall have not less than five professional 
staff members.
``Sec. 1782. Surveys of military families
    ``(a) Authority.--The Secretary of Defense may conduct surveys of 
members of the armed forces on active duty or in an active status, 
members of the families of such members, and retired members of the 
armed forces to determine the effectiveness of Federal programs 
relating to military families and the need for new programs.
    ``(b) Responses To Be Voluntary.--Responses to surveys conducted 
under this section shall be voluntary.
    ``(c) Federal Recordkeeping Requirements.--With respect to such 
surveys, family members of members of the armed forces and reserve and 
retired members of the armed forces shall be considered to be employees 
of the United States for purposes of section 3502(4)(A) of title 44.
``Sec. 1783. Family members serving on advisory committees
    ``A committee within the Department of Defense which advises or 
assists the Department in the performance of any function which affects 
members of military families and which includes members of military 
families in its membership shall not be considered an advisory 
committee under section 3(2) of the Federal Advisory Committee Act (5 
U.S.C. App.) solely because of such membership.
``Sec. 1784. Employment opportunities for military spouses
    ``(a) Authority.--The President shall order such measures as the 
President considers necessary to increase employment opportunities for 
spouses of members of the armed forces. Such measures may include--
            ``(1) excepting, pursuant to section 3302 of title 5, from 
        the competitive service positions in the Department of Defense 
        located outside of the United States to provide employment 
        opportunities for qualified spouses of members of the armed 
        forces in the same geographical area as the permanent duty 
        station of the members; and
            ``(2) providing preference in hiring for positions in 
        nonappropriated fund activities to qualified spouses of members 
        of the armed forces stationed in the same geographical area as 
        the nonappropriated fund activity for positions in wage grade 
        UA-8 and below and equivalent positions and for positions paid 
        at hourly rates.
    ``(b) Regulations.--The Secretary of Defense shall prescribe 
regulations--
            ``(1) to implement such measures as the President orders 
        under subsection (a);
            ``(2) to provide preference to qualified spouses of members 
        of the armed forces in hiring for any civilian position in the 
        Department of Defense if the spouse is among persons determined 
        to be best qualified for the position and if the position is 
        located in the same geographical area as the permanent duty 
        station of the member;
            ``(3) to ensure that notice of any vacant position in the 
        Department of Defense is provided in a manner reasonably 
        designed to reach spouses of members of the armed forces whose 
        permanent duty stations are in the same geographic area as the 
        area in which the position is located; and
            ``(4) to ensure that the spouse of a member of the armed 
        forces who applies for a vacant position in the Department of 
        Defense shall, to the extent practicable, be considered for any 
        such position located in the same geographic area as the 
        permanent duty station of the member.
    ``(c) Status of Preference Eligibles.--Nothing in this section 
shall be construed to provide a spouse of a member of the armed forces 
with preference in hiring over an individual who is a preference 
eligible.
``Sec. 1785. Youth sponsorship program
    ``(a) Requirement.--The Secretary of Defense shall require that 
there be at each military installation a youth sponsorship program to 
facilitate the integration of dependent children of members of the 
armed forces into new surroundings when moving to that military 
installation as a result of a parent's permanent change of station.
    ``(b) Description of Programs.--The program at each installation 
shall provide for involvement of dependent children of members 
presently stationed at the military installation and shall be directed 
primarily toward children in their preteen and teenage years.
``Sec. 1786. Dependent student travel within the United States
    ``Funds available to the Department of Defense for the travel and 
transportation of dependent students of members of the armed forces 
stationed overseas may be obligated for transportation allowances for 
travel within or between the contiguous States.
``Sec. 1787. Reporting of child abuse
    ``(a) In General.--The Secretary of Defense shall request each 
State to provide for the reporting to the Secretary of any report the 
State receives of known or suspected instances of child abuse and 
neglect in which the person having care of the child is a member of the 
armed forces (or the spouse of the member).
    ``(b) Definition.--In this section, the term `child abuse and 
neglect' has the meaning provided in section 3(1) of the Child Abuse 
Prevention and Treatment Act (42 U.S.C. 5102).

                  ``SUBCHAPTER II--MILITARY CHILD CARE
``Sec.
``1791. Funding for military child care.
``1792. Child care employees.
``1793. Parent fees.
``1794. Child abuse prevention and safety at facilities.
``1795. Parent partnerships with child development centers.
``1796. Subsidies for family home day care.
``1797. Early childhood education program.
``1798. Definitions.
``Sec. 1791. Funding for military child care
    ``It is the policy of Congress that the amount of appropriated 
funds available during a fiscal year for operating expenses for 
military child development centers and programs shall be not less than 
the amount of child care fee receipts that are estimated to be received 
by the Department of Defense during that fiscal year.
``Sec. 1792. Child care employees
    ``(a) Required Training.--(1) The Secretary of Defense shall 
prescribe regulations implementing, a training program for child care 
employees. Those regulations shall apply uniformly among the military 
departments. Subject to paragraph (2), satisfactory completion of the 
training program shall be a condition of employment of any person as a 
child care employee.
    ``(2) Under those regulations, the Secretary shall require that 
each child care employee complete the training program not later than 
six months after the date on which the employee is employed as a child 
care employee.
    ``(3) The training program established under this subsection shall 
cover, at a minimum, training in the following:
            ``(A) Early childhood development.
            ``(B) Activities and disciplinary techniques appropriate to 
        children of different ages.
            ``(C) Child abuse prevention and detection.
            ``(D) Cardiopulmonary resuscitation and other emergency 
        medical procedures.
    ``(b) Training and Curriculum Specialists.--(1) The Secretary of 
Defense shall require that at least one employee at each military child 
development center be a specialist in training and curriculum 
development. The Secretary shall ensure that such employees have 
appropriate credentials and experience.
    ``(2) The duties of such employees shall include the following:
            ``(A) Special teaching activities at the center.
            ``(B) Daily oversight and instruction of other child care 
        employees at the center.
            ``(C) Daily assistance in the preparation of lesson plans.
            ``(D) Assistance in the center's child abuse prevention and 
        detection program.
            ``(E) Advising the director of the center on the 
        performance of other child care employees.
    ``(3) Each employee referred to in paragraph (1) shall be an 
employee in a competitive service position.
    ``(c) Competitive Rates of Pay.--For the purpose of providing 
military child development centers with a qualified and stable civilian 
workforce, employees at a military installation who are directly 
involved in providing child care and are paid from nonappropriated 
funds--
            ``(1) in the case of entry-level employees, shall be paid 
        at rates of pay competitive with the rates of pay paid to other 
        entry-level employees at that installation who are drawn from 
        the same labor pool; and
            ``(2) in the case of other employees, shall be paid at 
        rates of pay substantially equivalent to the rates of pay paid 
        to other employees at that installation with similar training, 
        seniority, and experience.
    ``(d) Employment Preference Program for Military Spouses.--(1) The 
Secretary of Defense shall conduct a program under which qualified 
spouses of members of the armed forces shall be given a preference in 
hiring for the position of child care employee in a position paid from 
nonappropriated funds if the spouse is among persons determined to be 
best qualified for the position.
    ``(2) A spouse who is provided a preference under this subsection 
at a military child development center may not be precluded from 
obtaining another preference, in accordance with section 1794 of this 
title, in the same geographic area as the military child development 
center.
    ``(e) Competitive Service Position Defined.--In this section, the 
term `competitive service position' means a position in the competitive 
service, as defined in section 2102(a)(1) of title 5.
``Sec. 1793. Parent fees
    ``(a) In General.--The Secretary of Defense shall prescribe 
regulations establishing fees to be charged parents for the attendance 
of children at military child development centers. Those regulations 
shall be uniform for the military departments and shall require that, 
in the case of children who attend the centers on a regular basis, the 
fees shall be based on family income.
    ``(b) Local Waiver Authority.--The Secretary of Defense may provide 
authority to installation commanders, on a case-by-case basis, to 
establish fees for attendance of children at child development centers 
at rates lower than those prescribed under subsection (a) if the rates 
prescribed under subsection (a) are not competitive with rates at local 
non-military child development centers.
``Sec. 1794. Child abuse prevention and safety at facilities
    ``(a) Child Abuse Task Force.--The Secretary of Defense shall 
maintain a special task force to respond to allegations of widespread 
child abuse at a military installation. The task force shall be 
composed of personnel from appropriate disciplines, including, where 
appropriate, medicine, psychology, and childhood development. In the 
case of such allegations, the task force shall provide assistance to 
the commander of the installation, and to parents at the installation, 
in helping them to deal with such allegations.
    ``(b) National Hotline.--(1) The Secretary of Defense shall 
maintain a national telephone number for persons to use to report 
suspected child abuse or safety violations at a military child 
development center or family home day care site. The Secretary shall 
ensure that such reports may be made anonymously if so desired by the 
person making the report. The Secretary shall establish procedures for 
following up on complaints and information received over that number.
    ``(2) The Secretary shall publicize the existence of the number.
    ``(c) Assistance From Local Authorities.--The Secretary of Defense 
shall prescribe regulations requiring that, in a case of allegations of 
child abuse at a military child development center or family home day 
care site, the commander of the military installation or the head of 
the task force established under subsection (a) shall seek the 
assistance of local child protective authorities if such assistance is 
available.
    ``(d) Safety Regulations.--The Secretary of Defense shall prescribe 
regulations on safety and operating procedures at military child 
development centers. Those regulations shall apply uniformly among the 
military departments.
    ``(e) Inspections.--The Secretary of Defense shall require that 
each military child development center be inspected not less often than 
four times a year. Each such inspection shall be unannounced. At least 
one inspection a year shall be carried out by a representative of the 
installation served by the center, and one inspection a year shall be 
carried out by a representative of the major command under which that 
installation operates.
    ``(f) Remedies for Violations.--(1) Except as provided in paragraph 
(2), any violation of a safety, health, or child welfare law or 
regulation (discovered at an inspection or otherwise) at a military 
child development center shall be remedied immediately.
    ``(2) In the case of a violation that is not life threatening, the 
commander of the major command under which the installation concerned 
operates may waive the requirement that the violation be remedied 
immediately for a period of up to 90 days beginning on the date of the 
discovery of the violation. If the violation is not remedied as of the 
end of that 90-day period, the military child development center shall 
be closed until the violation is remedied. The Secretary of the 
military department concerned may waive the preceding sentence and 
authorize the center to remain open in a case in which the violation 
cannot reasonably be remedied within that 90-day period or in which 
major facility reconstruction is required.
    ``(3) If a military child development center is closed under 
paragraph (2), the Secretary of the military department concerned shall 
promptly submit to the Committee on Armed Services of the Senate and 
the Committee on National Security of the House of Representatives a 
report notifying those committees of the closing. The report shall 
include--
            ``(A) notice of the violation that resulted in the closing 
        and the cost of remedying the violation; and
            ``(B) a statement of the reasons why the violation has not 
        been remedied as of the time of the report.
``Sec. 1795. Parent partnerships with child development centers
    ``(a) Parent Boards.--The Secretary of Defense shall require that 
there be established at each military child development center a board 
of parents, to be composed of parents of children attending the center. 
The board shall meet periodically with staff of the center and the 
commander of the installation served by the center for the purpose of 
discussing problems and concerns. The board, together with the staff of 
the center, shall be responsible for coordinating the parent 
participation program described in subsection (b).
    ``(b) Parent Participation Programs.--The Secretary of Defense 
shall require the establishment of a parent participation program at 
each military child development center. As part of such program, the 
Secretary of Defense may establish fees for attendance of children at 
such a center, in the case of parents who participate in the parent 
participation program at that center, at rates lower than the rates 
that otherwise apply.
``Sec. 1796. Subsidies for family home day care
    ``The Secretary of Defense may use appropriated funds available for 
military child care purposes to provide assistance to family home day 
care providers so that family home day care services can be provided to 
members of the armed forces at a cost comparable to the cost of 
services provided by military child development centers. The Secretary 
shall prescribe regulations for the provision of such assistance.
``Sec. 1797. Early childhood education program
    ``The Secretary of Defense shall require that all military child 
development centers meet standards of operation necessary for 
accreditation by an appropriate national early childhood programs 
accrediting body.
``Sec. 1798. Definitions
    ``In this subchapter:
            ``(1) The term `military child development center' means a 
        facility on a military installation (or on property under the 
        jurisdiction of the commander of a military installation) at 
        which child care services are provided for members of the armed 
        forces or any other facility at which such child care services 
        are provided that is operated by the Secretary of a military 
        department.
            ``(2) The term `family home day care' means home-based 
        child care services that are provided for members of the armed 
        forces by an individual who (A) is certified by the Secretary 
        of the military department concerned as qualified to provide 
        those services, and (B) provides those services on a regular 
        basis for compensation.
            ``(3) The term `child care employee' means a civilian 
        employee of the Department of Defense who is employed to work 
        in a military child development center (regardless of whether 
        the employee is paid from appropriated funds or nonappropriated 
        funds).
            ``(4) The term `child care fee receipts' means those 
        nonappropriated funds that are derived from fees paid by 
        members of the armed forces for child care services provided at 
        military child development centers.''.
    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part II of subtitle A, of title 10, United States 
Code, are amended by inserting after the item relating to chapter 87 
the following new item:

``88. Military Family Programs and Military Child Care......    1781''.
    (b) Report on Five-Year Demand for Child Care.--(1) Not later than 
the date of the submission of the budget for fiscal year 1997 pursuant 
to section 1105 of title 31, United States Code, the Secretary of 
Defense shall submit to Congress a report on the expected demand for 
child care by military and civilian personnel of the Department of 
Defense during fiscal years 1997 through 2001.
    (2) The report shall include--
            (A) a plan for meeting the expected child care demand 
        identified in the report; and
            (B) an estimate of the cost of implementing that plan.
    (3) The report shall also include a description of methods for 
monitoring family home day care programs of the military departments.
    (c) Plan for Implementation of Accreditation Requirement.--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 plan for carrying out the requirements of section 
1787 of title 10, United States Code, as added by subsection (a). The 
plan shall be submitted not later than April 1, 1997.
    (d) Continuation of Delegation of Authority With Respect to Hiring 
Preference for Qualified Military Spouses.--The provisions of Executive 
Order No. 12568, issued October 2, 1986 (10 U.S.C. 113 note), shall 
apply as if the reference in that Executive order to section 806(a)(2) 
of the Department of Defense Authorization Act of 1986 refers to 
section 1784 of title 10, United States Code, as added by subsection 
(a).
    (e) Conforming Amendment.--Effective October 1, 1995, section 
1782(c) of title 10, United States Code, as added by subsection (a), is 
amended by striking out ``section 3502(4)(A) of title 44'' and 
inserting in lieu thereof ``section 3502(3)(A)(i) of title 44''.
    (f) Repealer.--The following provisions of law are repealed:
            (1) The Military Family Act of 1985 (title VIII of Public 
        Law 99-145; 10 U.S.C. 113 note).
            (2) The Military Child Care Act of 1989 (title XV of Public 
        Law 101-189; 10 U.S.C. 113 note).
SEC. 561. DISCHARGE OF MEMBERS OF THE ARMED FORCES WHO HAVE THE HIV-1 
              VIRUS.

    (a) In General.--(1) Section 1177 of title 10, United States Code, 
is amended to read as follows:
``Sec. 1177. Members infected with HIV-1 virus: mandatory discharge or 
              retirement
    ``(a) Mandatory Separation.--A member of the armed forces who is 
HIV-positive shall be separated. Such separation shall be made on a 
date determined by the Secretary concerned, which shall be as soon as 
practicable after the date on which the determination is made that the 
member is HIV-positive and not later than the last day of the sixth 
month beginning after such date.
    ``(b) Form of Separation.--If a member to be separated under this 
section is eligible to retire under any provision of law or to be 
transferred to the Fleet Reserve or Fleet Marine Corps Reserve, the 
member shall be so retired or so transferred. Otherwise, the member 
shall be discharged. The characterization of the service of the member 
shall be determined without regard to the determination that the member 
is HIV-positive.
    ``(c) Deferral of Separation for Members in 18-Year Retirement 
Sanctuary.--In the case of a member to be discharged under this section 
who on the date on which the member is to be discharged is within two 
years of qualifying for retirement under any provision of law, or of 
qualifying for transfer to the Fleet Reserve or Fleet Marine Corps 
Reserve under section 6330 of this title, the member may, as determined 
by the Secretary concerned, be retained on active duty until the member 
is qualified for retirement or transfer to the Fleet Reserve or Fleet 
Marine Corps Reserve, as the case may be, and then be so retired or 
transferred, unless the member is sooner retired or discharged under 
any other provision of law.
    ``(d) Separation To Be Considered Involuntary.--A separation under 
this section shall be considered to be an involuntary separation for 
purposes of any other provision of law.
    ``(e) Counseling About Available Medical Care.--A member to be 
separated under this section shall be provided information, in writing, 
before such separation of the available medical care (through the 
Department of Veterans Affairs and otherwise) to treat the member's 
condition. Such information shall include identification of specific 
medical locations near the member's home of record or point of 
discharge at which the member may seek necessary medical care.
    ``(f) HIV-Positive Members.--A member shall be considered to be 
HIV-positive for purposes of this section if there is serologic 
evidence that the member is infected with the virus known as Human 
Immunodeficiency Virus-1 (HIV-1), the virus most commonly associated 
with the acquired immune deficiency syndrome (AIDS) in the United 
States. Such serologic evidence shall be considered to exist if there 
is a reactive result given by an enzyme-linked immunosorbent assay 
(ELISA) serologic test that is confirmed by a reactive and diagnostic 
immunoelectrophoresis test (Western blot) on two separate samples. Any 
such serologic test must be one that is approved by the Food and Drug 
Administration.''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 59 of such title is amended to read as 
follows:

``1177. Members infected with HIV-1 virus: mandatory discharge or 
                            retirement.''.
    (b) Effective Date.--Section 1177 of title 10, United States Code, 
as amended by subsection (a), applies with respect to members of the 
Armed Forces determined to be HIV-positive before, on, or after the 
date of the enactment of this Act. In the case of a member of the Armed 
Forces determined to be HIV-positive before such date, the deadline for 
separation of the member under subsection (a) of such section, as so 
amended, shall be determined from the date of the enactment of this Act 
(rather than from the date of such determination).
SEC. 562. AUTHORITY TO APPOINT BRIGADIER GENERAL CHARLES E. YEAGER, 
              UNITED STATES AIR FORCES (RETIRED) TO THE GRADE OF MAJOR 
              GENERAL ON THE RETIRED LIST.

    The President is authorized to appoint, by and with the advice and 
consent of the Senate, Brigadier General Charles E. Yeager, United 
States Air Force (retired), to the grade of major general on the 
retired list of the Air Force. Any such appointment shall not affect 
the retired pay or other benefits of Charles E. Yeager or any benefits 
to which any other person is or may become entitled based upon his 
service.
SEC. 563. DETERMINATION OF WHEREABOUTS AND STATUS OF MISSING PERSONS.

    (a) Purpose.--The purpose of this section is to ensure that any 
member of the Armed Forces, and any civilian employee of the United 
States or contractor of the United States who serves with or 
accompanies the Armed Forces in the field under orders, is accounted 
for by the United States (by the return of such person alive, by the 
return of the remains of such person, or by the decision that credible 
evidence exists to support another determination of the status of such 
person) and, as a general rule, is not declared dead solely because of 
the passage of time.
    (b) In General.--(1) Part II of subtitle A of title 10, United 
States Code, is amended by inserting after chapter 75 the following new 
chapter:

                     ``CHAPTER 76--MISSING PERSONS
``Sec.
``1501. System for accounting for missing persons.
``1502. Missing persons: initial report.
``1503. Initial board inquiry; actions of theater component commander 
                            and head of the agency.
``1504. Subsequent board inquiry; actions of head of the agency.
``1505. Further review.
``1506. Personnel files.
``1507. Recommendation of status of death.
``1508. Judicial review.
``1509. Persons previously declared dead.
``1510. Procedures applicable in case of civilians.
``1511. Return alive of person declared missing or dead.
``1512. Effect on State law.
``1513. Definitions.
``Sec. 1501. System for accounting for missing persons
    ``(a) Office for Missing Personnel.--(1) The Secretary of Defense 
shall establish within the Office of the Secretary of Defense an office 
to have responsibility for Department of Defense policy relating to 
missing persons. Subject to the authority, direction, and control of 
the Secretary of Defense, the responsibilities of the office shall 
include--
            ``(A) policy, control, and oversight within the Department 
        of Defense of the entire process for investigation and recovery 
        (including search and rescue) related to missing persons; and
            ``(B) coordination for the Department of Defense with other 
        departments and agencies of the United States on all matters 
        concerning missing persons.
    ``(2) In carrying out the responsibilities of the office 
established under this subsection, the head of the office shall 
coordinate the efforts of that office with those of other departments 
and agencies and other elements of the Department of Defense for such 
purposes and shall be responsible for the coordination for such 
purposes within the Department of Defense among the military 
departments, the Joint Staff, and the commanders of the combatant 
commands.
    ``(3) The office shall establish policies, which shall apply 
uniformly through the Department of Defense, for personnel recovery 
(including search and rescue).
    ``(4) The office shall establish procedures to be followed by 
Department of Defense boards of inquiry, and by officers reviewing the 
reports of such boards, under this chapter.
    ``(b) Other Departments and Agencies.--(1) The Secretary of State 
shall designate an officer of the Department of State to have 
responsibility within that Department for matters relating to missing 
persons.
    ``(2) The Secretary of Transportation shall designate an officer of 
the Department of Transportation to have responsibility within that 
Department for matters relating to missing persons.
    ``(3) The Director of Central Intelligence shall designate an 
officer of the Central Intelligence Agency to have responsibility 
within that Agency for matters relating to missing persons.
    ``(4) The President shall direct the heads of such other 
departments and agencies as the President considers appropriate to make 
a similar designation for their respective departments and agencies.
    ``(c) Uniform DOD Procedures.--(1) The Secretary of Defense shall 
prescribe procedures, to apply uniformly through the Department of 
Defense, for--
            ``(A) the determination of the status of persons described 
        in subsection (d); and
            ``(B) for the systematic, comprehensive, and timely 
        collection, analysis, review, dissemination, and periodic 
        update of information related to such persons.
    ``(2) Such procedures shall be prescribed in a single directive 
applicable to all elements of the Department of Defense.
    ``(3) As part of such procedures, the Secretary may provide for the 
extension, on a case-by-case basis, of any time limit specified in 
section 1502, 1503, or 1504 of this title. Any such extension may not 
be for a period in excess of one-half of the period with respect to 
which the extension is provided. Subsequent extensions may be provided 
on the same basis.
    ``(d) 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 
        disappears as a result of a hostile action, or under 
        circumstances suggesting that the disappearance is a result of 
        a hostile action, and whose status is undetermined or who is 
        unaccounted for (except under circumstances suggesting that the 
        disappearance is voluntary).
            ``(2) Any civilian employee of the United States or 
        employee of a contractor of the United States who, while 
        serving with or accompanying the armed forces in the field, 
        disappears under circumstances described in paragraph (1) and 
        whose status is undetermined or who is unaccounted for (except 
        under circumstances suggesting that the disappearance is 
        voluntary).
    ``(e) Primary Next of Kin.--The individual who is primary next of 
kin of a person described in subsection (d) may for purposes of this 
chapter designate another individual to act on behalf of that 
individual as primary next of kin. The Secretary of Defense shall treat 
an individual so designated as if the individual designated were the 
primary next of kin for purposes of this chapter. A designation under 
this subsection may be revoked at any time by the person who made the 
designation.
    ``(f) Termination of Applicability of Procedures When Missing 
Person Is Accounted For.--The provisions of this chapter relating to 
boards of inquiry and to actions by the Secretary concerned on the 
reports of those boards shall cease to apply in the case of a missing 
person upon that person becoming accounted for or otherwise being 
determined to be in a status other than the status of missing or 
missing in action.
``Sec. 1502. Missing persons: initial report by unit commander
    ``(a) Preliminary Assessment and Recommendation by Commander.--
After receiving information that the whereabouts or status of a person 
described in section 1501(d) of this title is uncertain and that the 
absence of the person may be involuntary, the commander of the unit, 
facility, or area to or in which the person is assigned shall make a 
preliminary assessment of the circumstances. If, as a result of that 
assessment, the commander concludes that the person is missing, the 
commander shall--
            ``(1) recommend that the person be placed in a missing 
        status; and
            ``(2) not later than 48 hours after receiving such 
        information, transmit that recommendation to the theater 
        component commander with jurisdiction over the missing person 
        in accordance with procedures prescribed under section 1501(c) 
        of this title.
    ``(b) Forwarding of Records.--The commander making the initial 
assessment shall (in accordance with procedures prescribed under 
section 1501(c) of this title) safeguard and forward for official use 
any information relating to the whereabouts or status of the person 
that result from the preliminary assessment or from actions taken to 
locate the person.
``Sec. 1503. Initial board inquiry; actions of theater component 
              commander and head of the agency
    ``(a) Appointment of Board.--Not later than ten days after 
receiving notification under section 1502(a)(2) of this title that a 
person has been recommended for placement in a missing status, the 
theater component commander to whom the notification is transmitted 
shall appoint a board to conduct an inquiry into the whereabouts and 
status of the person.
    ``(b) Inquiries Involving More Than One Missing Person.--If it 
appears to the commander who appoints a board under this section that 
the absence or missing status of two or more persons is factually 
related, the commander may appoint a single board under this section to 
conduct the inquiry into the whereabouts or status of all such persons.
    ``(c) Composition.--(1) A board appointed under this section shall 
consist of at least one individual described in paragraph (2) who has 
experience with and understanding of military operations or activities 
similar to the operation or activity in which the person disappeared.
    ``(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 United States or of a contractor of 
        the United States.
    ``(3) An individual may be appointed as a member of a board under 
this section only if the individual has a security clearance that 
affords the member access to all information relating to the 
whereabouts and status of the missing persons covered by the inquiry.
    ``(d) Duties of Board.--A board appointed to conduct an inquiry 
into the whereabouts or status of a missing person under this section 
shall--
            ``(1) collect, develop, and investigate all facts and 
        evidence relating to the disappearance, whereabouts, or status 
        of that person;
            ``(2) collect appropriate documentation of the facts and 
        evidence covered by the investigation;
            ``(3) analyze the facts and evidence, make findings based 
        on that analysis, and draw conclusions as to the current 
        whereabouts and status of the person; and
            ``(4) with respect to each person covered by the inquiry, 
        recommend to the commander who appointed the board that--
                    ``(A) the person be placed in a missing status; or
                    ``(B) the person be declared to have deserted, to 
                be absent without leave, or to be dead.
    ``(e) Inquiry Proceedings.--(1) During the proceedings of an 
inquiry under this section, a board shall--
            ``(A) collect, record, and safeguard all facts, documents, 
        statements, photographs, tapes, messages, maps, sketches, 
        reports, and other information (whether classified or 
        unclassified) relating to the whereabouts or status of each 
        person covered by the inquiry;
            ``(B) gather information relating to actions taken to find 
        the person, including any evidence of the whereabouts or status 
        of the person arising from such actions; and
            ``(C) maintain a record of its proceedings.
    ``(2) The commander who appoints a board under this section may 
request the commander of the combatant command to provide such 
assistance as the board or the commander may require for purposes of 
this section.
    ``(f) Counsel for Missing Person.--(1) The commander appointing a 
board to conduct an inquiry under this section shall appoint counsel to 
represent each person covered by the inquiry, or, in the case described 
by 1503(c) of this title, one counsel to represent all persons covered 
by the inquiry. Counsel appointed under this paragraph may be referred 
to as `missing person's counsel'.
    ``(2) To be appointed as a missing person's counsel, a person 
must--
            ``(A) have the qualifications specified in section 827(b) 
        of this title (article 27(b) of the Uniform Code of Military 
        Justice) for trial counsel or defense counsel detailed for a 
        general court-martial; and
            ``(B) have a security clearance that affords the counsel 
        access to all information relating to the whereabouts or status 
        of the person or persons covered by the inquiry.
    ``(3) A missing person's counsel--
            ``(A) shall have access to all facts and evidence 
        considered by the board during the proceedings under the 
        inquiry for which the counsel is appointed;
            ``(B) shall observe all official activities of the board 
        during such proceedings;
            ``(C) may question witnesses before the board; and
            ``(D) shall monitor the deliberations of the board.
    ``(4) A missing person's counsel shall review the report of the 
board under subsection (i) and submit to the commander who appointed 
the board an independent review of that report. That review shall be 
made an official part of the record of the board.
    ``(g) Access to Proceedings.--The proceedings of a board during an 
inquiry under this section shall be closed to the public (including, 
with respect to any missing person covered by the inquiry, the primary 
next of kin, other members of the immediate family, and any other 
previously designated person designated under section 655 of this 
title).
    ``(h) Recommendation on Status of Missing Persons.--(1) Upon 
completion of its inquiry, a board appointed under this section shall 
make a recommendation to the commander who appointed the board as to 
the appropriate determination of the current whereabouts or status of 
each person whose whereabouts were covered by the inquiry.
    ``(2)(A) A board may not recommend under paragraph (1) that a 
person be declared dead unless the board determines that the evidence 
before it established conclusive proof of the death of the person.
    ``(B) In this paragraph, the term `conclusive proof of death' means 
evidence establishing that death is the only credible explanation for 
the absence of the person.
    ``(i) Report.--(1) A board appointed under this section shall 
submit to the commander who appointed it a report on the inquiry 
carried out by the board. The report shall include--
            ``(A) a discussion of the facts and evidence considered by 
        the board in the inquiry;
            ``(B) the recommendation of the board under subsection (h) 
        with respect to each person covered by the report; and
            ``(C) disclosure of whether classified documents and 
        information were reviewed by the board or were otherwise used 
        by the board in forming recommendations under subparagraph (B).
    ``(2) A report under this subsection with respect to a missing 
person shall be submitted not later than 45 days after the date on 
which that person is first reported missing.
    ``(3) A report submitted under this subsection may not be made 
public until one year after the date on which the report is submitted.
    ``(j) Review and Determination of Status by Component Commander.--
(1) Not later than 15 days after the date of the receipt of a report 
under subsection (i), the commander who appointed the board shall 
review--
            ``(A) the report; and
            ``(B) the review of that report submitted under subsection 
        (f)(4) by the missing person's counsel.
    ``(2) In reviewing a report under paragraph (1), the commander 
receiving the report shall determine whether or not the report is 
complete and free of administrative error. If the commander determines 
that the report is incomplete, or that the report is not free of 
administrative error, the commander may return the report to the board 
for further action on the report by the board.
    ``(3) Upon a determination by the commander reviewing a report 
under this subsection that the report is complete and free of 
administrative error, the commander shall make a determination of the 
status of each person covered by the report.
    ``(4) The report, together with the determination under paragraph 
(3), shall be promptly forwarded to the commander of the combatant 
command for the geographic area in which the missing person 
disappeared.
    ``(k) Review by CINC.--(1) The commander of the combatant command 
shall review a report received under subsection (j)(4). Not later than 
30 days after receiving such report, that commander shall forward that 
report to the Secretary concerned. In the case of a missing person who 
is a member of the Army, Navy, Air Force, or Marine Corps, the report 
shall be forwarded to or through the Secretary of Defense in accordance 
with procedures prescribed under section 1501(c) of this title.
    ``(2) The review under paragraph (1) shall be conducted in 
accordance with procedures prescribed under section 1501(a)(3) of this 
title.
    ``(l) Determination by Secretary.--(1) The Secretary of Defense (or 
the Secretary of the military department concerned acting under 
delegation of authority from the Secretary of Defense) shall review the 
determinations of a theater component commander in a report forwarded 
under this section.
    ``(2) After conducting such review, the Secretary shall make a 
determination, with respect to each person whose status is covered by 
the report, whether to leave unchanged the status of such person as 
determined by the theater component commander under subsection (j)(3) 
or whether to change that status to another appropriate status, as 
determined by the Secretary.
    ``(3) In making such determination, the Secretary may convene a 
board in accordance with section 1504 of this title.
    ``(m) Report to Family Members and Other Interested Persons.--Not 
later than 30 days after the date on which the Secretary makes a 
determination under subsection (k), the Secretary of Defense, acting 
through the head of the office established under section 1501(a) of 
this title, shall--
            ``(1) provide an unclassified summary of the report of the 
        board (including the name of the missing person's counsel for 
        the inquiry, the names of the members of the board, and the 
        name of the commander who convened the board) to the primary 
        next of kin, to the other members of the immediate family, and 
        to any other previously designated person of the missing 
        person; and
            ``(2) inform each individual to whom such summary is 
        provided that the United States will conduct a subsequent 
        inquiry into the whereabouts or status of the person not 
        earlier than one year after the date of the first official 
        notice of the disappearance of the missing person, unless 
        information becomes available sooner that would result in a 
        substantial change in the determination of the status of the 
        person.
``Sec. 1504. Subsequent board inquiry; actions of head of the agency
    ``(a) Additional Board.--If information on the whereabouts or 
status of a person covered by an inquiry under section 1503 of this 
title becomes available within one year after the date of the 
submission of the report submitted under section 1502 of this title, 
the Secretary of Defense, acting through the head of the office 
established under section 1501(a) of this title, shall appoint a board 
under this section to conduct an inquiry into the information.
    ``(b) Authority for Inquiry.--The Secretary of Defense may delegate 
authority over such subsequent inquiry to the Secretary concerned.
    ``(c) Secretary Concerned.--In this chapter, the term `Secretary 
concerned', in the case of a civilian employee of the United States or 
contractor of the United States, means the Secretary of the executive 
department or head of the agency employing the employee or contracting 
with the contractor, as the case may be.
    ``(d) Date of Appointment.--The Secretary shall appoint a board 
under this section to conduct an inquiry into the whereabouts and 
status of a missing person on or about one year after the date of the 
report concerning that person submitted under section 1502 of this 
title.
    ``(e) Combined Inquiries.--If it appears to the Secretary that the 
absence or status of two or more persons is factually related, the 
Secretary may appoint one board under this section to conduct the 
inquiry into the whereabouts or status of all such persons.
    ``(f) Composition.--(1) Subject to paragraphs (2) and (3), a board 
appointed under this section shall consist of the following:
            ``(A) In the case of a board appointed to inquire into the 
        whereabouts or status of a member of the armed forces, not less 
        than three officers having the grade of major or lieutenant 
        commander or above.
            ``(B) In the case of a board appointed to inquire into the 
        whereabouts or status of a civilian employee of the United 
        States or an employee of a contractor of the United States--
                    ``(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 of Defense considers advisable.
    ``(2) The Secretary shall designate one member of a board appointed 
under this section as president of the board. The president of the 
board shall have a security clearance that affords the president access 
to all information relating to the whereabouts and status of each 
person covered by the inquiry.
    ``(3)(A) One member of each board appointed under this subsection 
shall be an attorney or judge advocate who has expertise in the public 
law relating to missing persons, the determination of death of such 
persons, and the rights of family members and dependents of such 
persons.
    ``(B) One member of each board appointed under this subsection 
shall be an individual who--
            ``(i) has an occupational specialty similar to that of one 
        or more of the persons covered by the inquiry; and
            ``(ii) has an understanding of and expertise in the 
        official activities of one or more such persons at the time 
        such person or persons disappeared.
    ``(g) Duties of Board.--A board appointed under this section to 
conduct an inquiry into the whereabouts or status of a person shall--
            ``(1) review the report under subsection (i) of section 
        1503 of this title of the board appointed to conduct the 
        inquiry into the status or whereabouts of the person under 
        section 1503 of this title and the recommendation under 
        subsection (j)(3) of that section of the commander who 
        appointed the board under that subsection as to the status of 
        the person;
            ``(2) collect and evaluate any document, fact, or other 
        evidence with respect to the whereabouts or status of the 
        person that has become available since the completion of the 
        inquiry under section 1503 of this title;
            ``(3) draw conclusions as to the whereabouts or status of 
        the person;
            ``(4) determine on the basis of the activities under 
        paragraphs (1) and (2) whether the status of the person should 
        be continued or changed; and
            ``(5) submit to the Secretary of Defense a report 
        describing the findings and conclusions of the board, together 
        with a recommendation for a determination by the Secretary 
        concerning the whereabouts or status of the person.
    ``(h) Counsel for Missing Persons.--(1) When the Secretary appoints 
a board to conduct an inquiry under this section, the Secretary shall 
appoint counsel to represent each person covered by the inquiry.
    ``(2) A person appointed as counsel under this subsection shall 
meet the qualifications and have the duties set forth in section 
1503(f) of this title for a missing person's counsel appointed under 
that section.
    ``(3) The review of the report of a board on an inquiry that is 
submitted by such counsel shall be made an official part of the record 
of the board with respect to the inquiry.
    ``(i) Attendance of Family Members and Certain Other Interested 
Persons at Proceedings.--(1) With respect to any person covered by an 
inquiry under this section, the primary next of kin, other members of 
the immediate family, and any other previously designated person of the 
missing person may attend the proceedings of the board during the 
inquiry in accordance with this section.
    ``(2) The Secretary shall notify each individual referred to in 
paragraph (1) of the opportunity to attend the proceedings of a board. 
Such notice shall be provided not less than 60 days before the first 
meeting of the board.
    ``(3) An individual who receives a notice under paragraph (2) shall 
notify the Secretary of the intent, if any, of that individual to 
attend the proceedings of the board not less than 21 days after the 
date on which the individual receives the notice.
    ``(4) Each individual who notifies the Secretary under paragraph 
(3) of the individual's intent to attend the proceedings of the board--
            ``(A) in the case of an individual who is the primary next 
        of kin or the previously designated person, may attend the 
        proceedings of the board with private counsel;
            ``(B) shall have access to the personnel file of the 
        missing person, to unclassified reports (if any) of the board 
        appointed under section 1503 of this title to conduct the 
        inquiry into the whereabouts and status of the person, and to 
        any other unclassified information or documents relating to the 
        whereabouts and status of the person;
            ``(C) shall be afforded the opportunity to present 
        information at the proceedings of the board that such 
        individual considers to be relevant to those proceedings; and
            ``(D) subject to paragraph (5), shall be given the 
        opportunity to submit in writing objection to any 
        recommendation of the board under subsection (k) as to the 
        status of the missing person.
    ``(5) Objections under paragraph (4)(D) to any recommendation of 
the board shall be submitted to the president of the board not later 
than 30 days after the date on which the recommendations are made. The 
president shall include any such objections in the report of the board 
under subsection (k).
    ``(6) An individual referred to in paragraph (1) who attends the 
proceedings of a board under this subsection shall not be entitled to 
reimbursement by the United States for any costs (including travel, 
lodging, meals, local transportation, legal fees, transcription costs, 
witness expenses, and other expenses) incurred by that individual in 
attending such proceedings.
    ``(j) Availability of Information to Boards.--(1) In conducting 
proceedings in an inquiry under this section, a board may secure 
directly from any department or agency of the United States any 
information that the board considers necessary in order to conduct the 
proceedings.
    ``(2) Upon written request from the president of a board, the head 
of a department or agency of the United States shall release 
information covered by the request to the board. In releasing such 
information, the head of the department or agency shall--
            ``(A) declassify to an appropriate degree classified 
        information; or
            ``(B) release the information in a manner not requiring the 
        removal of markings indicating the classified nature of the 
        information.
    ``(3)(A) If a request for information under paragraph (2) covers 
classified information that cannot be declassified, cannot be removed 
before release from the information covered by the request, or cannot 
be summarized in a manner that prevents the release of classified 
information, the classified information shall be made available only to 
president of the board making the request and the counsel for the 
missing person appointed under subsection (f).
    ``(B) The president of a board shall close to persons who do not 
have appropriate security clearances those portions of the proceeding 
of the Board during which classified information is discussed. 
Participants at a proceeding of a board at which classified information 
is discussed shall comply with all applicable laws and regulations 
relating to the disclosure of classified information. The Secretary 
concerned shall assist the president of a board in ensuring that 
classified information is not compromised through board proceedings.
    ``(k) Recommendation on Status.--(1) Upon completion of an inquiry 
under this subsection, a board shall make a recommendation as to the 
current whereabouts or status of each missing person covered by the 
inquiry.
    ``(2) A board may not recommend under paragraph (1) that a person 
be declared dead unless--
            ``(A) proof of death is established by the board; and
            ``(B) in making the recommendation, the board complies with 
        section 1507 of this title.
    ``(l) Report.--A board appointed under this section shall submit to 
the Secretary of Defense a report on the inquiry carried out by the 
board, together with the evidence considered by the board during the 
inquiry. The report may include a classified annex.
    ``(m) Actions by Secretary.--(1) Not later than 30 days after the 
receipt of a report from a board under subsection (k), the Secretary 
shall review--
            ``(A) the report;
            ``(B) the review of the report submitted to the Secretary 
        under subsection (f)(3) by the counsel for each person covered 
        by the report; and
            ``(C) the objections, if any, to the report submitted to 
        the president of the board under subsection (g)(6).
    ``(2) In reviewing a report under paragraph (1) (including the 
review and objections described in subparagraphs (A) and (B) of that 
paragraph), the Secretary shall determine whether or not the report is 
complete and free of administrative error. If the Secretary determines 
that the report is incomplete, or that the report is not free of 
administrative error, the Secretary may return the report to the board 
for further action on the report by the board.
    ``(3) Upon a determination by the Secretary that a report reviewed 
under this subsection is complete and free of administrative error, the 
Secretary shall make a determination concerning the status of each 
person covered by the report.
    ``(n) Report to Family Members and Other Interested Persons.--Not 
later than 90 days after the date on which a board submits a report on 
a person under subsection (l), the Secretary of Defense shall--
            ``(1) with respect to each missing person whose status or 
        whereabouts are covered by the report, provide an unclassified 
        summary of the report to the primary next of kin, the other 
        members of the immediate family, and any other previously 
        designated person; and
            ``(2) in the case of a person who continues to be in a 
        missing status, inform each individual referred to in paragraph 
        (1) that the United States will conduct a further investigation 
        into the whereabouts or status of the person not later than 
        three years after the date of the official notice of the 
        disappearance of the person, unless information becomes 
        available within that time that would result in a substantial 
        change in the official status of the person.
``Sec. 1505. Further review
    ``(a) Subsequent Review.--The Secretary shall conduct subsequent 
inquiries into the whereabouts or status of any person determined by 
the Secretary under section 1504 of this title to be in a missing 
status.
    ``(b) Frequency of Subsequent Reviews.--(1) Subject to paragraph 
(3), 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 
        official notice of the disappearance of the person; 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 
person under this subsection upon receipt of information that could 
result in a change or revision of status of a missing person. Whenever 
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 first notice of the 
        disappearance of the missing person; or
            ``(B) if, before the end of such 30-year period, the 
        missing person is accounted for.
    ``(c) Conduct of Proceedings.--The appointment of, and activities 
before, a board appointed under this section shall be governed by the 
provisions of section 1504 of this title with respect to a board 
appointed under that section.
``Sec. 1506. Personnel files
    ``(a) Information in Files.--Except as provided in subsection (b), 
the Secretary of the department having jurisdiction over a missing 
person at the time of the person's disappearance shall, to the maximum 
extent practicable, ensure that the personnel file of the person 
contains all information in the possession of the United States 
relating to the disappearance and whereabouts or status of the person.
    ``(b) Classified Information.--(1) The Secretary concerned may 
withhold classified information from a personnel file under this 
section.
    ``(2) If the Secretary concerned withholds classified information 
from the personnel file of a person, the Secretary shall ensure that 
the file contains the following:
            ``(A) A notice that the withheld information exists.
            ``(B) A notice of the date of the most recent review of the 
        classification of the withheld information.
    ``(c) Wrongful Withholding.--Any person who knowingly and willfully 
withholds from the personnel file of a missing person any information 
(other than classified information) relating to the disappearance or 
whereabouts or status of a missing person shall be fined as provided in 
title 18 or imprisoned not more than one year, or both.
    ``(d) Availability of Information.--The Secretary concerned shall, 
upon request, make available the contents of the personnel file of a 
missing person to the missing person's primary next of kin, the other 
members of the missing person's immediate family, or any other 
previously designated person of the missing person.
``Sec. 1507. Recommendation of status of death
    ``(a) Requirements Relating to Recommendation.--A board appointed 
under section 1504 or 1505 of this title may not recommend that a 
person be declared dead unless--
            ``(1) credible evidence exists to suggest that the person 
        is dead;
            ``(2) the United States possesses no credible evidence that 
        suggests that the person is alive;
            ``(3) representatives of the United States have made a 
        complete search of the area where the person was last seen 
        (unless, after making a good faith effort to obtain access to 
        such area, such representatives are not granted such access); 
        and
            ``(4) representatives of the United States have examined 
        the records of the government or entity having control over the 
        area where the person was last seen (unless, after making a 
        good faith effort to obtain access to such records, such 
        representatives are not granted such access).
    ``(b) Submittal of Information on Death.--If a board appointed 
under section 1504 or 1505 of this title makes a recommendation that a 
missing person be declared dead, the board shall include in the report 
of the board with respect to the person under such section the 
following:
            ``(1) A detailed description of the location where the 
        death occurred.
            ``(2) A statement of the date on which the death occurred.
            ``(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.
``Sec. 1508. Judicial review
    ``(a) In General.--(1) A person referred to in paragraph (2) may 
obtain review of a finding described in paragraph (3) by the court of 
appeals of the United States for the circuit in which the person 
resides or in which the finding was made. Judicial review under this 
section shall be as provided in section 706 of title 5.
    ``(2) Paragraph (1) applies to any of the following persons with 
respect to a missing person subject to a finding described in paragraph 
(3):
            ``(A) The primary next of kin of the person.
            ``(B) A member of the immediate family of the person.
            ``(C) A dependent of the person.
            ``(D) A person previously designated by the person.
    ``(3) Paragraph (1) applies to the following findings:
            ``(A) A finding by a board appointed under section 1504 or 
        1505 of this title that a missing person is dead.
            ``(B) A finding by a board appointed under section 1509 of 
        this title that confirms that a missing person formerly 
        declared dead is in fact dead.
    ``(4) A person referred to in paragraph (2) shall request review of 
a finding under this subsection by filing with the appropriate court a 
written petition requesting that the finding be set aside.
    ``(b) Finality.--The decision of the court of appeals on a petition 
for review under subsection (a) is final, except that such decision is 
subject to review by the Supreme Court upon certiorari, as provided in 
section 1254 of title 28.
    ``(c) Additional Review.--(1) Subject to paragraph (2), upon 
request by a person referred to in subsection (a)(2), the Secretary 
concerned shall appoint a board to review the status of a person 
covered by a finding described in subsection (a)(3) if the court of 
appeals sets aside the finding and--
            ``(A) the time allowed for filing a petition for certiorari 
        has expired and no such petition has been duly filed;
            ``(B) the petition for certiorari has been denied; or
            ``(C) the decision of the court of appeals has been 
        affirmed by the Supreme Court.
    ``(2) A person referred to in paragraph (1) shall make a request 
referred to in that paragraph not later than three years after the date 
of the event under that paragraph that entitles the person to request 
the appointment of a board.
``Sec. 1509. Persons previously declared dead
    ``(a) Review of Status.--(1) Not later than three years after the 
date of the enactment of this chapter, a person referred to in 
paragraph (2) may submit a request for appointment of a board to review 
the status of a person previously declared dead while in a missing 
status, in a case in which the death is declared to have occurred on or 
after December 7, 1941.
    ``(2) A board shall be appointed under this section with respect to 
the death of any person based on the request of any of the following 
persons:
            ``(A) The primary next of kin of such person.
            ``(B) An adult member of the immediate family of the person 
        previously declared dead.
            ``(C) An adult dependent of such person.
            ``(D) A person previously designated by such person.
    ``(3) A request under this section shall be submitted to the 
Secretary of the executive department or head of the agency of the 
United States that had jurisdiction over the person covered by the 
request at the time of the person's disappearance.
    ``(b) Appointment of Board.--Upon receiving a request under 
subsection (a), the official to whom the request is submitted shall 
appoint a board to review the status of the person covered by the 
request.
    ``(c) Duties of Board.--A board appointed under this section to 
review the status of a person previously declared dead shall--
            ``(1) conduct an investigation to determine the status of 
        the person; and
            ``(2) issue a report describing the findings of the board 
        under the investigation and the recommendations of the board as 
        to the status of the person.
    ``(d) Effect of Change in Status.--If a board appointed under this 
section recommends placing in a missing status a person previously 
declared dead, such person shall accrue no pay or allowances as a 
result of the placement of the person in such status.
    ``(e) Conduct of Proceedings.--The appointment of, and activities 
before, a board appointed under this section shall, to the extent 
practicable, be governed by the provisions of section 1504 of this 
title with respect to a board appointed under that section.
``Sec. 1510. Procedures applicable in case of civilians
    ``(a) In General.--In applying the procedures specified in this 
chapter in the case of a person described in section 1501(d)(2) of this 
title--
            ``(1) any reference to the commander of the unit, facility, 
        or area to which the missing person is assigned shall be 
        treated as referring to the local authority or supervisor of 
        the department or agency of the United States under whom the 
        missing person was directly operating or to whom the missing 
        person was responsible;
            ``(2) any reference to the theater component commander 
        shall be treated as referring to the senior official in the 
        region in which the missing person disappeared of the 
        department or agency of the United States with jurisdiction 
        over the missing person (or, if there is no such official, such 
        other person (including the appropriate theater component 
        commander) as may be designated by the head of that department 
        of agency);
            ``(3) any reference to the Secretary concerned shall be 
        treated as referring to the head of the department or agency of 
        the United States with jurisdiction over the missing person.
    ``(b) CINC Review Not To Apply.--The provisions of section 1503(k) 
shall not apply in the case of a person described in section 1501(d)(2) 
of this title. In such a case, the report under section 1503(j)(4) of 
this title shall be submitted directly to the head of the department or 
agency of the United States with jurisdiction over the missing person.
    ``(c) Rule for Department of Defense Civilians.--In the case of a 
person described in section 1501(d)(2) of this title who is an employee 
of the Department of Defense, or an employee of a contractor of the 
Department of Defense, the head of the department or agency of the 
United States with jurisdiction over that person--
            ``(1) if the person is an employee of, or an employee of a 
        contractor of, a military department, shall be considered to be 
        the Secretary of that military department; and
            ``(2) otherwise shall be considered to be the Secretary of 
        Defense.
``Sec. 1511. Return alive of person declared missing or dead
    ``(a) Pay and Allowances.--Any person in a missing status or 
declared dead under the Missing Persons Act of 1942 (56 Stat. 143) or 
chapter 10 of title 37 or by a board appointed under this chapter who 
is found alive and returned to the control of the United States shall 
be paid for the full time of the absence of the person while given that 
status or declared dead under the law and regulations relating to the 
pay and allowances of persons returning from a missing status.
    ``(b) Effect on Gratuities Paid as a Result of Status.--Subsection 
(a) shall not be interpreted to invalidate or otherwise affect the 
receipt by any person of a death gratuity or other payment from the 
United States on behalf of a person referred to in subsection (a) 
before the date of the enactment of this chapter.
``Sec. 1512. Effect on State law
    ``(a) Nonpreemption of State Authority.--Nothing in this chapter 
shall be construed to invalidate or limit the power of any State court 
or administrative entity, or the power of any court or administrative 
entity of any political subdivision thereof, to find or declare a 
person dead for purposes of the laws of such State or political 
subdivision.
    ``(b) State Defined.--In this section, the term `State' includes 
the District of Columbia, the Commonwealth of Puerto Rico, and any 
territory or possession of the United States.
``Sec. 1513. Definitions
    ``In this chapter:
            ``(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 United States or 
                of a contractor of the United States who is serving 
                with or accompanying the armed forces under orders and 
                who is in a missing status.
            ``(2) The term `missing status' means the status of a 
        missing person who is determined to be absent in a status of--
                    ``(A) missing;
                    ``(B) missing in action;
                    ``(C) interned in a foreign country;
                    ``(D) captured, beleaguered, or besieged by a 
                hostile force; or
                    ``(E) detained in a foreign country against that 
                person's will.
            ``(3) The term `accounted for', with respect to a person in 
        a missing status, means that--
                    ``(A) the person is returned to United States 
                control alive;
                    ``(B) the remains of the person are returned to the 
                United States; or
                    ``(C) credible evidence exists to support another 
                determination of the person's status.
            ``(4) The term `member of the immediate family', in the 
        case of a missing person, means the spouse or a child, parent, 
        or sibling of the person.
            ``(5) The term `previously designated person', in the case 
        of a missing person, means an individual designated by the 
        missing person under section 655 of this title for purposes of 
        this chapter.
            ``(6) The term `classified information' means any 
        information the unauthorized disclosure of which (as determined 
        under applicable law and regulations) could reasonably be 
        expected to damage the national security.
            ``(7) 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.''.
    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part II of subtitle A, of title 10, United States 
Code, are amended by inserting after the item relating to chapter 75 
the following new item:

``76. Missing Persons.......................................    1501''.
    (c) Conforming Amendments.--Chapter 10 of title 37, United States 
Code, is amended as follows:
            (1) Section 555 is amended--
                    (A) in subsection (a), by striking out ``When a 
                member'' and inserting in lieu thereof ``Except as 
                provided in subsection (d), when a member''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(d) This section does not apply in a case to which section 1502 
of title 10 applies.''.
            (2) Section 552 is amended--
                    (A) in subsection (a), by striking out ``for all 
                purposes,'' in the second sentence of the matter 
                following paragraph (2) and all that follows through 
                the end of the sentence and inserting in lieu thereof 
                ``for all purposes.'';
                    (B) in subsection (b), by inserting ``or is 
                determined under chapter 76 title 10'' before the 
                period at the end; and
                    (C) in subsection (e), by inserting ``or under 
                chapter 76 of title 10'' after ``section 555 of this 
                title''.
            (3) Section 553 is amended--
                    (A) in subsection (f), by striking out ``the date 
                the Secretary concerned receives evidence that'' and 
                inserting in lieu thereof ``the date on which, in a 
                case covered by section 555 of this title, the 
                Secretary concerned receives evidence, or, in a case 
                covered by chapter 76 of title 10 the Secretary 
                concerned determines pursuant to that chapter, that''; 
                and
                    (B) in subsection (g), by inserting ``or under 
                chapter 76 of title 10'' after ``section 555 of this 
                title''.
            (4) Section 556 is amended--
                    (A) in subsection (a), by inserting after paragraph 
                (7) the following:
``Paragraphs (1), (5), (6), and (7) shall only apply with respect to a 
case to which section 555 of this title applies.'';
                    (B) in subsection (b), by inserting ``, in a case 
                to which section 555 of this title applies,'' after 
                ``When the Secretary concerned''; and
                    (C) in subsection (h)--
                            (i) in the first sentence, by striking out 
                        ``status'' and inserting in lieu thereof 
                        ``pay''; and
                            (ii) in the second sentence, by inserting 
                        ``in a case to which section 555 of this title 
                        applies'' after ``under this section''.
    (d) Designation of Individuals Having Interest in Status of Service 
Members.--(1) Chapter 37 of title 10, United States Code, is amended by 
adding at the end the following new section:
``Sec. 655. Designation of persons having interest in status of member 
              as a missing person
    ``(a) The Secretary concerned shall, upon the enlistment or 
appointment of a person in the armed forces, require that the person 
specify in writing the person (if any), other than that person's 
primary next of kin, to whom information on the whereabouts or status 
of the member shall be provided if such whereabouts or status are 
investigated under chapter 76 of this title. The Secretary shall 
periodically, and whenever the member is deployed as part of a 
contingency operation or in other circumstances specified by the 
Secretary, require that such designation be reconfirmed, or modified, 
by the member.
    ``(b) The Secretary concerned shall, upon the request of a member, 
permit the member to change the person or persons specified by the 
member under subsection (a) at any time. Any such change shall be in 
writing.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``655. Designation of persons having interest in status of member as a 
                            missing person.''.
SEC. 564. NOMINATIONS TO SERVICE ACADEMIES FROM COMMONWEALTH OF THE 
              NORTHERN MARIANAS ISLANDS.

    (a) Military Academy.--Section 4342(a) of title 10, United States 
Code, is amended by inserting after paragraph (9) the following new 
paragraph:
            ``(10) One cadet from the Commonwealth of the Northern 
        Marianas Islands, nominated by the resident representative from 
        the commonwealth.''.
    (b) Naval Academy.--Section 6954(a) of title 10, United States 
Code, is amended by inserting after paragraph (9) the following new 
paragraph:
            ``(10) One from the Commonwealth of the Northern Marianas 
        Islands, nominated by the resident representative from the 
        commonwealth.''.
    (c) Air Force Academy.--Section 9342(a) of title 10, United States 
Code, is amended by inserting after paragraph (9) the following new 
paragraph:
            ``(10) One cadet from the Commonwealth of the Northern 
        Marianas Islands, nominated by the resident representative from 
        the commonwealth.''.
SEC. 565. REPORT ON THE CONSISTENCY OF REPORTING OF FINGERPRINT CARDS 
              AND FINAL DISPOSITION FORMS TO THE FEDERAL BUREAU OF 
              INVESTIGATION.

    (a) Report.--The Secretary of Defense shall submit to Congress a 
report on the consistency with which fingerprint cards and final 
disposition forms, as described in Criminal Investigations Policy 
Memorandum 10 issued by the Defense Inspector General on March 25, 
1987, are reported by the Defense Criminal Investigative Organizations 
to the Federal Bureau of Investigation for inclusion in the Bureau's 
criminal history identification files.
    (b) Matters To Be Included.--In the report, the Secretary shall--
            (1) survey fingerprint cards and final disposition forms 
        filled out in the past 24 months by each investigative 
        organization;
            (2) compare the fingerprint cards and final disposition 
        forms filled out to all judicial and nonjudicial procedures 
        initiated as a result of actions taken by each investigative 
        service in the past 24 months;
            (3) account for any discrepancies between the forms filled 
        out and the judicial and nonjudicial procedures initiated;
            (4) compare the fingerprint cards and final disposition 
        forms filled out with the information held by the Federal 
        Bureau of Investigation criminal history identification files;
            (5) identify any weaknesses in the collection of 
        fingerprint cards and final disposition forms and in the 
        reporting of that information to the Federal Bureau of 
        Investigation; and
            (6) determine whether or not other law enforcement 
        activities of the military services collect and report such 
        information or, if not, should collect and report such 
        information.
    (c) Submission of Report.--The report shall be submitted not later 
than 180 days after the date of the enactment of this Act.
    (d) Definition.--For the purposes of this section, the term 
``criminal history identification files'', with respect to the Federal 
Bureau of Investigation, means the criminal history record system 
maintained by the Federal Bureau of Investigation based on fingerprint 
identification and any other method of positive identification.
SEC. 566. SEPARATION BENEFITS DURING FORCE REDUCTION FOR OFFICERS OF 
              COMMISSIONED CORPS OF NATIONAL OCEANIC AND ATMOSPHERIC 
              ADMINISTRATION.

    (a) Separation Benefits.--Subsection (a) of section 3 of the Act of 
August 10, 1956 (33 U.S.C. 857a), is amended by adding at the end the 
following new paragraph:
            ``(15) Section 1174a, special separation benefits (except 
        that benefits under subsection (b)(2)(B) of such section are 
        subject to the availability of appropriations for such purpose 
        and are provided at the discretion of the Secretary of 
        Commerce).''.
    (b) Technical Corrections.--Such section is further amended--
            (1) by striking out ``Coast and Geodetic Survey'' in 
        subsections (a) and (b) and inserting in lieu thereof 
        ``commissioned officer corps of the National Oceanic and 
        Atmospheric Administration''; and
            (2) in subsection (a), by striking out ``including changes 
        in those rules made after the effective date of this Act'' in 
        the matter preceding paragraph (1) and inserting in lieu 
        thereof ``as those provisions are in effect from time to 
        time''.
    (c) Temporary Early Retirement Authority..--Section 4403 (other 
than subsection (f)) of the National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2702; 10 U.S.C. 1293 
note) shall apply to the commissioned officer corps of the National 
Oceanic and Atmospheric Administration in the same manner and to the 
same extent as that section applies to the Department of Defense. The 
Secretary of Commerce shall implement the provisions of that section 
with respect to such commissioned officer corps and shall apply the 
provisions of that section to the provisions of the Coast and Geodetic 
Survey Commissioned Officers' Act of 1948 relating to the retirement of 
members of such commissioned officer corps.
    (d) Effective Date.--This section shall apply only to members of 
the commissioned officer corps of the National Oceanic and Atmospheric 
Administration who are separated after September 30, 1995.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1996.

    (a) Waiver of Section 1009 Adjustment.--Any adjustment required by 
section 1009 of title 37, United States Code, in elements of 
compensation of members of the uniformed services to become effective 
during fiscal year 1996 shall not be made.
    (b) Increase in Basic Pay and BAS.--Effective on January 1, 1996, 
the rates of basic pay and basic allowance for subsistence of members 
of the uniformed services are increased by 2.4 percent.
    (c) Increase in BAQ.--Effective on January 1, 1996, the rates of 
basic allowance for quarters of members of the uniformed services are 
increased by 5.2 percent.
    (d) Uniformed Services Defined.--For purposes of this section, the 
term ``uniformed services'' does not include the National Oceanic and 
Atmospheric Administration.
SEC. 602. LIMITATION ON BASIC ALLOWANCE FOR SUBSISTENCE FOR MEMBERS 
              WITHOUT DEPENDENTS RESIDING IN GOVERNMENT QUARTERS.

    (a) Percentage Limitation.--Subsection (b) of section 402 of title 
37, United States Code, is amended by adding after the last sentence 
the following new paragraph:
    ``(4) In the case of members of the Army, Navy, Air Force, or 
Marine Corps who, when present at their permanent duty station, 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. The 
Secretary concerned may exceed such percentage during a fiscal year 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. This paragraph shall not apply to 
members described in the first sentence when the members are not 
residing at their permanent duty station. The percentage limitation 
specified in this paragraph shall be achieved as soon as possible after 
the date of the enactment of this paragraph, but in no case later than 
September 30, 1996.''.
    (b) Stylistic Amendments.--Such subsection is further amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C);
            (2) by inserting ``(1)'' after ``(b)'';
            (3) by designating the second sentence as paragraph (2); 
        and
            (4) by designating the fifth sentence as paragraph (3).
    (c) Conforming Amendments.--(1) Subsection (e) of such section is 
amended--
            (A) in paragraph (1), by striking out ``the third sentence 
        of subsection (b)'' and inserting in lieu thereof ``subsection 
        (b)(2)''; and
            (B) in paragraph (2), by striking out ``subsection (b)'' 
        and inserting in lieu thereof ``subsection (b)(2)''.
    (2) Section 1012 of title 37, United States Code, is amended by 
striking out ``the last sentence of section 402(b)'' and inserting in 
lieu thereof ``section 402(b)(3)''.
    (d) Report Required.--Not later than March 31, 1996, the Secretary 
of Defense shall submit to Congress a report identifying, for the Army, 
Navy, Air Force, and the Marine Corps--
            (1) the number of members without dependents who reside in 
        Government quarters at their permanent duty stations and 
        receive a basic allowance for subsistence under section 402 of 
        title 37, United States Code;
            (2) such number as a percentage of the total number of 
        members without dependents who reside in Government quarters;
            (3) a recommended maximum percentage of members without 
        dependents who reside in Government quarters at their permanent 
        duty station and should receive a basic allowance for 
        subsistence; and
            (4) the reasons such maximum percentage was selected.
SEC. 603. AUTHORIZATION OF PAYMENT OF BASIC ALLOWANCE FOR QUARTERS TO 
              ADDITIONAL MEMBERS ASSIGNED TO SEA DUTY.

    (a) Expansion of Eligible Members.--Section 403(c)(2) of title 37, 
United States Code, is amended--
            (1) in the first sentence, by striking out ``E-7'' and 
        inserting in lieu thereof ``E-6''; and
            (2) in the second sentence, by striking out ``E-6'' and 
        inserting in lieu thereof ``E-5''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on July 1, 1996.
SEC. 604. ESTABLISHMENT OF MINIMUM AMOUNTS OF VARIABLE HOUSING 
              ALLOWANCE FOR HIGH HOUSING COST AREAS AND ADDITIONAL 
              LIMITATION ON REDUCTION OF ALLOWANCE FOR CERTAIN MEMBERS.

    (a) Minimum Amounts of VHA.--Subsection (c) of section 403a of 
title 37, United States Code, is amended by striking out paragraph (1) 
and inserting in lieu thereof the following new paragraph:
    ``(1) The monthly amount of a variable housing allowance under this 
section for a member of a uniformed service with respect to an area is 
equal to the greater of the following:
            ``(A) An amount equal to the difference between--
                    ``(i) the median monthly cost of housing in that 
                area for members of the uniformed services serving in 
                the same pay grade and with the same dependency status 
                as that member; and
                    ``(ii) 80 percent of the median monthly cost of 
                housing in the United States for members of the 
                uniformed services serving in the same pay grade and 
                with the same dependency status as that member.
            ``(B) An amount determined by the Secretary of Defense as 
        the minimum necessary to meet the cost of adequate housing in 
        that area, as determined by the Secretary, for all residents in 
        that area with an appropriate income level selected by the 
        Secretary.''.
    (b) Limitation on Reduction in VHA.--Paragraph (3) of such 
subsection is amended by adding at the end the following new sentence: 
``However, on and after January 1, 1996, the monthly amount of a 
variable housing allowance under this section for a member of a 
uniformed service with respect to an area may not be reduced so long as 
the member retains uninterrupted eligibility to receive a variable 
housing allowance within that area and the member's certified housing 
costs are not reduced, as indicated by certifications provided by the 
member under subsection (b)(4).''.
    (c) Effect on Total Amount Available for VHA.--Subsection (d)(3) of 
such section is amended by inserting after the first sentence the 
following new sentence: ``In addition, the total amount determined 
under paragraph (1) shall be adjusted to ensure that sufficient amounts 
are available to allow payment of any additional variable housing 
allowance necessary as a result of paragraph (1)(B) and the 
requirements of the second sentence of paragraph (3).''
    (d) Conforming Amendments.--Subsection (c) of such section is 
further amended--
            (1) in paragraph (3), as amended by subsection (b), by 
        striking out ``this subsection'' and inserting in lieu thereof 
        ``paragraph (1)(A) or minimum levels of variable housing 
        allowances under paragraph (1)(B)''; and
            (2) in paragraph (5), by inserting ``or minimum levels of 
        variable housing allowances'' after ``costs of housing''.
    (e) Delayed Implementation of Minimum Amounts of VHA.--Subsection 
(c)(1)(B) of section 403a of title 37, United States Code, as added by 
subsection (a), shall be used to determine the monthly amount of a 
variable housing allowance under such section for members of the 
uniformed services only for months beginning after June 30, 1996.
    (f) Report on Implementation.--Not later than June 1, 1996, the 
Secretary of Defense shall submit to Congress a report describing the 
procedures to be used to implement the amendments made by this section 
and the costs of such amendments.
SEC. 605. CLARIFICATION OF LIMITATION ON RECEIPT OF FAMILY SEPARATION 
              ALLOWANCE.

    Section 427(b)(4) of title 37, United States Code, is amended by 
inserting before the period at the end of the first sentence the 
following: ``unless such entitlement is based on paragraph (1)(B)''.
           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. EXTENSION OF CERTAIN BONUSES FOR RESERVE FORCES.

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking out ``September 30, 
1996'' and inserting in lieu thereof ``September 30, 1998''.
    (b) Selected Reserve Enlistment Bonus.--Section 308c(e) of such 
title is amended by striking out ``September 30, 1996'' and inserting 
in lieu thereof ``September 30, 1998''.
    (c) Selected Reserve Affiliation Bonus.--Section 308e(e) of such 
title is amended by striking out ``September 30, 1996'' and inserting 
in lieu thereof ``September 30, 1998''.
    (d) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of such title is amended by striking out ``September 30, 1996'' 
and inserting in lieu thereof ``September 30, 1998''.
    (e) Prior Service Enlistment Bonus.--Section 308i(i) of such title 
is amended by striking out ``September 30, 1996'' and inserting in lieu 
thereof ``September 30, 1998''.

SEC. 612. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 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, 1996'' and inserting in lieu thereof ``September 30, 1998''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking out ``September 
30, 1996'' and inserting in lieu thereof ``September 30, 1998''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking out 
``September 30, 1996'' and inserting in lieu thereof ``September 30, 
1998''.

SEC. 613. EXTENSION OF AUTHORITY 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, 1995'' 
and inserting in lieu thereof ``September 30, 1998''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking out ``September 30, 1996'' and inserting 
in lieu thereof ``September 30, 1998''.
    (c) Enlistment Bonuses for Critical Skills.--Sections 308a(c) and 
308f(c) of such title are each amended by striking out ``September 30, 
1996'' and inserting in lieu thereof ``September 30, 1998''.
    (d) Special Pay for Enlisted Members of the Selected Reserve 
Assigned to Certain High Priority Units.--Section 308d(c) of such title 
is amended by striking out ``September 30, 1996'' and inserting in lieu 
thereof ``September 30, 1998''.
    (e) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of such title is amended by striking 
out ``September 30, 1996'' and inserting in lieu thereof ``September 
30, 1998''.
    (f) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking out ``September 30, 1996'' and inserting in lieu 
thereof ``September 30, 1998''.
    (g) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking out ``October 1, 1996' and inserting in 
lieu thereof ``October 1, 1998''.
    (h) Repayment of Education Loans for Certain Health Professionals 
who Serve in the Selected Reserve.--Section 16302(d) of title 10, 
United States Code, is amended by striking out ``October 1, 1996'' and 
inserting in lieu thereof ``October 1, 1998''.

SEC. 614. CODIFICATION AND EXTENSION OF SPECIAL PAY FOR CRITICALLY 
              SHORT WARTIME HEALTH SPECIALISTS IN THE SELECTED 
              RESERVES.

    (a) Special Pay Authorized.--(1) Chapter 5 of title 37, United 
States Code, is amended by inserting after section 302f the following 
new section:
``Sec. 302g. Special pay: Selected Reserve health care professionals in 
              critically short wartime specialties
    ``(a) Special Pay Authorized.--An officer of a reserve component of 
the armed forces described in subsection (b) who executes a written 
agreement under which the officer agrees to serve in the Selected 
Reserve of an armed force for a period of not less than one year nor 
more than three years, beginning on the date the officer accepts the 
award of special pay under this section, may be paid special pay at an 
annual rate not to exceed $10,000.
    ``(b) Eligible Officers.--An officer referred to in subsection (a) 
is an officer in a health care profession who is qualified in a 
specialty designated by regulations as a critically short wartime 
specialty.
    ``(c) Time for Payment.--Special pay under this section shall be 
paid annually at the beginning of each twelve-month period for which 
the officer has agreed to serve.
    ``(d) Refund Requirement.--An officer who voluntarily terminates 
service in the Selected Reserve of an armed force before the end of the 
period for which a payment was made to such officer under this section 
shall refund to the United States the full amount of the payment made 
for the period on which the payment was based.
    ``(e) Inapplicability of Discharge in Bankruptcy.--A discharge in 
bankruptcy under title 11 that is entered less than five years after 
the termination of an agreement under this section does not discharge 
the person receiving special pay under the agreement from the debt 
arising under the agreement.
    ``(f) Termination of Agreement Authority.--No agreement under this 
section may be entered into after September 30, 1998.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 302f the 
following new item:

``302g. Special pay: Selected Reserve health care professionals in 
                            critically short wartime specialties.''.
    (b) Conforming Amendment.--Section 303a of title 37, United States 
Code is amended by striking out ``302, 302a, 302b, 302c, 302d, 302e,'' 
each place it appears and inserting in lieu thereof ``302 through 
302g,''.
    (c) Conforming Repeal.--(1) Section 613 of the National Defense 
Authorization Act, Fiscal Year 1989 (Public Law 100-456; 37 U.S.C. 302 
note) is repealed.
    (2) The repeal of section 613 of the National Defense Authorization 
Act, Fiscal Year 1989, by paragraph (1) shall not affect the validity 
or terms of any agreement entered into under such section before the 
date of the enactment of this Act.
SEC. 615. CHANGE IN ELIGIBILITY REQUIREMENTS FOR CONTINUOUS MONTHLY 
              AVIATION INCENTIVE PAY.

    (a) Lower Incentive Pay Gate.--Section 301a(a)(4) of title 37, 
United States Code, is amended by striking out ``9'' in the first 
sentence and inserting in lieu thereof ``8''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1995.
SEC. 616. CONTINUOUS ENTITLEMENT TO CAREER SEA PAY FOR CREWMEMBERS OF 
              SHIPS DESIGNATED AS TENDERS.

    (a) Continuous Entitlement.--Section 305a(d)(1)(A) of title 37, 
United States Code, is amended--
            (1) by striking out ``or'' after ``under way'' and 
        inserting in lieu thereof a comma; and
            (2) by inserting before the semicolon at the end the 
        following: ``, or while serving as a member of a tender-class 
        ship (with the hull classification of submarine or 
        destroyer)''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1995.
SEC. 617. INCREASE IN MAXIMUM RATE OF SPECIAL DUTY ASSIGNMENT PAY FOR 
              ENLISTED MEMBERS SERVING AS RECRUITERS.

    (a) Special Maximum Rate for Recruiters.--Section 307(a) of title 
37, United States Code, is amended by adding at the end the following 
new sentence: ``In the case of a member who is serving as a military 
recruiter and is eligible for special duty assignment pay under this 
subsection on account of such duty, the Secretary concerned may 
increase the monthly rate of special duty assignment pay for the member 
to not more than $375.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 1996.
            Subtitle C--Travel and Transportation Allowances
SEC. 621. AUTHORIZATION OF RETURN TO UNITED STATES OF FORMERLY 
              DEPENDENT CHILDREN OF MEMBERS.

    (a) Return at Government Expense.--Section 406(h)(1) of title 37, 
United States Code, is amended in the last sentence--
            (1) by striking out ``who became 21 years of age'' and 
        inserting in lieu thereof ``who, by reason of age or graduation 
        from (or cessation of enrollment in) an institution of higher 
        education, would otherwise cease to be a dependent of the 
        member''; and
            (2) by inserting ``still'' after ``shall''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1995.
SEC. 622. AUTHORIZATION OF DISLOCATION ALLOWANCE FOR MOVES IN 
              CONNECTION WITH BASE REALIGNMENTS AND CLOSURES.

    (a) Dislocation Allowance Authorized.--Subsection (a) of section 
407 of title 37, United States Code, is amended--
            (1) by striking out ``or'' at the end of paragraph (3);
            (2) by striking out the period at the end of paragraph 
        (4)(B) and inserting in lieu thereof ``; or''; and
            (3) by inserting after paragraph (4)(B) the following new 
        paragraph:
            ``(5) the member's dependents actually make an authorized 
        move in connection with the member's directed order to move as 
        a result of the closure or realignment of a military 
        installation.''.
    (b) Conforming Amendments.--Such section is further amended--
            (1) in the sentence following subsection (a)(4)--
                    (A) by striking out ``clause (3) or (4)(B)'' and 
                inserting in lieu thereof ``paragraph (3) or (4)(B)''; 
                and
                    (B) by striking out ``clause (1)'' and inserting in 
                lieu thereof ``paragraph (1) or (5)'';
            (2) in subsection (b)--
                    (A) by striking out ``subsection (a)(3) or 
                (a)(4)(B)'' and inserting in lieu thereof ``paragraph 
                (3) or (4)(B) of subsection (a)''; and
                    (B) by striking out ``subsection (a)(1)'' and 
                inserting in lieu thereof ``paragraph (1) or (5) of 
                subsection (a)''.
SEC. 623. REPEAL OF PROHIBITION ON PAYMENT OF LODGING EXPENSES WHEN 
              ADEQUATE GOVERNMENT QUARTERS ARE AVAILABLE.

    (a) Repeal.--Section 1589 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 81 of such title is amended by striking out the item relating 
to section 1589.
                       Subtitle D--Other Matters
SEC. 631. ELIMINATION OF UNNECESSARY ANNUAL REPORTING REQUIREMENTS 
              REGARDING COMPENSATION MATTERS.

    (a) Report on Travel and Transportation Allowances for 
Dependents.--(1) Section 406 of title 37, United States Code, is 
amended--
            (A) by striking out subsection (i); and
            (B) by redesignating subsections (j), (k), (l), (m), and 
        (n) as subsections (i), (j), (k), (l), and (m), respectively.
    (2) Section 2634(d) of title 10, United States Code, is amended by 
striking out ``section 406(l) of title 37'' and inserting in lieu 
thereof ``section 406(k) of title 37''.
    (b) Annual Review of Pay and Allowances.--Subsection (a) of section 
1008 of title 37, United States Code, is amended to read as follows:
    ``(a) Not later than March 31 of each year, the President shall 
submit to Congress such recommendations (if any) as the President 
considers appropriate for adjustments in the rates of pay and 
allowances authorized by this title for members of the uniformed 
services.''.
SEC. 632. STUDY REGARDING JOINT PROCESS FOR DETERMINING LOCATION OF 
              RECRUITING STATIONS.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
regarding the feasibility of--
            (1) using a joint process among the Armed Forces for 
        determining the location of recruiting stations and the number 
        of military personnel required to operate such stations; and
            (2) basing such determinations on market research and 
        analysis conducted jointly by the Armed Forces.
    (b) Report.--Not later than March 31, 1996, the Secretary of 
Defense shall submit to Congress a report describing the results of the 
study. The report shall include a recommended method for measuring the 
efficiency of individual recruiting stations, such as cost per 
accession or other efficiency standard, as determined by the Secretary.
SEC. 633. ELIMINATION OF DISPARITY BETWEEN EFFECTIVE DATES FOR MILITARY 
              AND CIVILIAN RETIREE COST-OF-LIVING ADJUSTMENTS FOR 
              FISCAL YEAR 1996.

    (a) In General.--The fiscal year 1996 increase in military retired 
pay shall (notwithstanding subparagraph (B) of section 1401a(b)(2) of 
title 10, United States Code) first be payable as part of such retired 
pay for the month of March 1996.
    (b) Definitions.--For the purposes of subsection (a):
            (1) The term ``fiscal year 1996 increase in military 
        retired pay'' means the increase in retired pay that, pursuant 
        to paragraph (1) of section 1401a(b) of title 10, United States 
        Code, becomes effective on December 1, 1995.
            (2) The term ``retired pay'' includes retainer pay.
    (c) Limitation.--Subsection (a) shall be effective only if there is 
appropriated to the Department of Defense Military Retirement Fund (in 
an Act making appropriations for the Department of Defense for fiscal 
year 1996 that is enacted before March 1, 1996) such amount as is 
necessary to offset increased outlays to be made from that fund during 
fiscal year 1996 by reason of the provisions of subsection (a).
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated for fiscal year 1996 to the Department of Defense Military 
Retirement Fund the sum of $403,000,000 to offset increased outlays to 
be made from that fund during fiscal year 1996 by reason of the 
provisions of subsection (a).
                   TITLE VII--HEALTH CARE PROVISIONS
                    Subtitle A--Health Care Services
SEC. 701. MODIFICATION OF REQUIREMENTS REGARDING ROUTINE PHYSICAL 
              EXAMINATIONS AND IMMUNIZATIONS UNDER CHAMPUS.

    Section 1079(a) of title 10, United States Code, is amended by 
striking out paragraph (2) and inserting in lieu thereof the following 
new paragraph:
            ``(2) consistent with such regulations as the Secretary of 
        Defense may prescribe regarding the content of health promotion 
        and disease prevention visits, the schedule of pap smears and 
        mammograms, and the types and schedule of immunizations--
                    ``(A) for dependents under six years of age, both 
                health promotion and disease prevention visits and 
                immunizations may be provided; and
                    ``(B) for dependents six years of age or older, 
                health promotion and disease prevention visits may be 
                provided in connection with immunizations or with 
                diagnostic or preventive pap smears and mammograms;''.
SEC. 702. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE AND DEATH 
              AND DISABILITY BENEFITS FOR CERTAIN RESERVISTS.

    (a) Medical and Dental Care.--Section 1074a(a) of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
            ``(3) Each member of the armed forces who incurs or 
        aggravates an injury, illness, or disease in the line of duty 
        while remaining overnight, between successive periods of 
        inactive-duty training, at or in the vicinity of the site of 
        the inactive-duty training, and the site is outside reasonable 
        commuting distance from the member's residence.''.
    (b) Recovery, Care, and Disposition of Remains.--Section 1481(a)(2) 
of title 10, United States Code, is amended--
            (1) in subparagraph (C), by striking out ``or'' at the end 
        of the subparagraph;
            (2) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (3) by inserting after subparagraph (C) the following new 
        subparagraph:
                    ``(D) remaining overnight, between successive 
                periods of inactive-duty training, at or in the 
                vicinity of the site of the inactive-duty training, and 
                the site is outside reasonable commuting distance from 
                the member's residence; or''.
    (c) Entitlement to Basic Pay.--(1) Subsection (g)(1) of section 204 
of title 37, United States Code, is amended--
            (A) in subparagraph (B), by striking out ``or'' at the end 
        of the subparagraph;
            (B) in subparagraph (C), by striking out the period at the 
        end of the subparagraph and inserting in lieu thereof ``; or''; 
        and
            (C) by inserting after subparagraph (C) the following new 
        subparagraph:
            ``(D) in line of duty while remaining overnight, between 
        successive periods of inactive-duty training, at or in the 
        vicinity of the site of the inactive-duty training, and the 
        site is outside reasonable commuting distance from the member's 
        residence.''.
    (2) Subsection (h)(1) of such section is amended--
            (A) in subparagraph (B), by striking out ``or'' at the end 
        of the subparagraph;
            (B) in subparagraph (C), by striking out the period at the 
        end of the subparagraph and inserting in lieu thereof ``; or''; 
        and
            (C) by inserting after subparagraph (C) the following new 
        subparagraph:
            ``(D) in line of duty while remaining overnight, between 
        successive periods of inactive-duty training, at or in the 
        vicinity of the site of the inactive-duty training, and the 
        site is outside reasonable commuting distance from the member's 
        residence.''.
    (d) Compensation for Inactive-Duty Training.--Section 206(a)(3) of 
title 37, United States Code, is amended--
            (1) in subparagraph (A), by striking out ``or'' at the end 
        of clause (ii);
            (2) in subparagraph (B), by striking out the period at the 
        end of the subparagraph and inserting in lieu thereof ``; or''; 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) in line of duty while remaining overnight, 
                between successive periods of inactive-duty training, 
                at or in the vicinity of the site of the inactive-duty 
                training, and the site is outside reasonable commuting 
                distance from the member's residence.''.
SEC. 703. MEDICAL AND DENTAL CARE FOR MEMBERS OF THE SELECTED RESERVE.

    (a) Members of Early Deploying Units of the Army Selected 
Reserve.--Section 1074a of title 10, United States Code, is amended--
            (1) in subsection (c), by striking out ``this section'' and 
        inserting in lieu thereof ``subsection (b)''; and
            (2) by adding at the end the following new subsection:
    ``(d)(1) The Secretary of the Army shall provide to members of the 
Selected Reserve of the Army who are assigned to units scheduled for 
deployment within 75 days after mobilization the following medical and 
dental services:
            ``(A) An annual medical screening.
            ``(B) For members who are over 40 years of age, a full 
        physical examination not less often than once every two years.
            ``(C) An annual dental screening.
            ``(D) The dental care identified in an annual dental 
        screening as required to ensure that a member meets the dental 
        standards required for deployment in the event of mobilization.
    ``(2) The services provided under this subsection shall be provided 
at no cost to the member.''.
    (b) Voluntary Demonstration Program to Improve Dental Readiness of 
Selected Reserve.--(1) For members of the Selected Reserve who are not 
covered by subsection (a), the Secretary of Defense shall conduct a 
demonstration program to offer such members affordable dental care for 
the purpose of ensuring that such members meet the dental standards 
required for deployment in the event of mobilization. The Secretary 
shall determine the geographical scope of the demonstration program and 
the number of members of the Selected Reserve who will be invited to 
participate in the program. However, participation in the demonstration 
program shall be offered to the members of at least one ground combat 
maneuver unit of the Selected Reserve of the Army scheduled for 
deployment within 90 days after mobilization.
    (2) The Secretary may model the dental demonstration program after 
the dependents' dental program authorized under section 1076a of title 
10, United States Code, except that participants in the demonstration 
program shall be responsible for all costs incurred to provide dental 
care under the program. The Secretary shall provide for allotment or 
deduction from the military pay of participants as a means to pay any 
premiums required under the demonstration program.
    (3) The authority to carry out the dental demonstration program 
under this subsection shall expire on September 30, 1997.
    (c) Evaluation of Demonstration Program.--Not later than March 1, 
1997, the Secretary shall submit to Congress a report evaluating the 
success of the dental demonstration program conducted under subsection 
(b) in improving the dental readiness of the Selected Reserve. The 
Secretary shall submit a revised report under this subsection not later 
than 30 days after the expiration of the demonstration program.
    (d) Conforming Repeals.--Sections 1117 and 1118 of the Army 
National Guard Combat Readiness Reform Act of 1992 (title XI of Public 
Law 102-484; 10 U.S.C. 3077 note) are repealed.

                      Subtitle B--TRICARE Program
SEC. 711. PRIORITY USE OF MILITARY TREATMENT FACILITIES FOR PERSONS 
              ENROLLED IN MANAGED CARE INITIATIVES.

    Section 1097(c) of title 10, United States Code, is amended in the 
third sentence by striking out ``However, the Secretary may'' and 
inserting in lieu thereof ``Notwithstanding the preferences established 
by sections 1074(b) and 1076 of this title, the Secretary shall''.
SEC. 712. STAGGERED PAYMENT OF ENROLLMENT FEES FOR TRICARE.

    Section 1097(e) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``Without imposing 
additional costs on covered beneficiaries who participate in contracts 
for health care services under this section or health care plans 
offered under section 1099 of this title, the Secretary shall permit 
such covered beneficiaries to pay, on a monthly or quarterly basis, any 
enrollment fee required for such participation.''.
SEC. 713. REQUIREMENT OF BUDGET NEUTRALITY FOR TRICARE TO BE BASED ON 
              ENTIRE PROGRAM.

    (a) Change in Budget Neutrality Requirements.--Subsection (c) of 
section 731 of the National Defense Authorization Act for Fiscal Year 
1994 (Public Law 103-160; 10 U.S.C. 1073 note) is amended--
            (1) by striking out ``each managed health care initiative 
        that includes the option'' and inserting in lieu thereof ``the 
        TRICARE program''; and
            (2) by striking out ``covered beneficiaries who enroll in 
        the option'' and inserting in lieu thereof ``members of the 
        uniformed services and covered beneficiaries who participate in 
        the TRICARE program''.
    (b) Addition of Definition of TRICARE Program.--Subsection (d) of 
such section is amended to read as follows:
    ``(d) Definitions.--For purposes of this section:
            ``(1) The term `covered beneficiary' means a beneficiary 
        under chapter 55 of title 10, United States Code, other than a 
        beneficiary under section 1074(a) of such title.
            ``(2) The term `TRICARE program' means the managed health 
        care program that is established by the Secretary of Defense 
        under the authority of chapter 55 of title 10, United States 
        Code, principally section 1097 of such 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. 714. TRAINING IN HEALTH CARE MANAGEMENT AND ADMINISTRATION FOR 
              TRICARE LEAD AGENTS.

    (a) Provision of Training.--Not later than six months after the 
date of the enactment of this Act, the Secretary of Defense shall 
implement a professional educational program to provide appropriate 
training in health care management and administration to each commander 
of a military medical treatment facility of the Department of Defense 
who is selected to serve as a lead agent to coordinate the delivery of 
health care by military and civilian providers under the TRICARE 
program.
    (b) TRICARE Program Defined.--For purposes of this section, the 
term ``TRICARE program'' means the managed health care program that is 
established by the Secretary of Defense under the authority of chapter 
55 of title 10, United States Code, principally section 1097 of such 
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.
    (c) Report on Implementation.--Not later than six months after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report describing the professional educational 
program implemented pursuant to this section.
SEC. 715. EVALUATION AND REPORT ON TRICARE EFFECTIVENESS.

    (a) Evaluation Required.--The Secretary of Defense shall arrange 
for an on-going evaluation of the effectiveness of the TRICARE program 
in meeting the goals of increasing the access of covered beneficiaries 
under chapter 55 of title 10, United States Code, to health care and 
improving the quality of health care provided to covered beneficiaries, 
without increasing the costs incurred by the Government or covered 
beneficiaries. The evaluation shall specifically address the impact of 
the TRICARE program on military retirees with regard to access, costs, 
and quality of health care services and identify noncatchment areas in 
which the HMO option of the TRICARE program will be available. The 
Secretary shall use a federally funded research and development center 
to conduct the evaluation required by this section.
    (b) Annual Report.--Not later than March 1 of each year, the center 
conducting the evaluation under subsection (a) shall submit to Congress 
a report describing the results of the evaluation during the preceding 
year.
    (c) TRICARE Program Defined.--For purposes of this section, the 
term ``TRICARE program'' means the managed health care program that is 
established by the Secretary of Defense under the authority of chapter 
55 of title 10, United States Code, principally section 1097 of such 
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.
          Subtitle C--Uniformed Services Treatment Facilities
SEC. 721. LIMITATION ON EXPENDITURES TO SUPPORT UNIFORMED SERVICES 
              TREATMENT FACILITIES AND LIMITATION ON NUMBER OF 
              PARTICIPANTS IN USTF MANAGED CARE PLANS.

    Subsection (f) of section 1252 of the Department of Defense 
Authorization Act, 1984 (42 U.S.C. 248d), is amended to read as 
follows:
    ``(f) Limitation on Expenditures and Participants.--(1) The total 
amount of expenditures by the Secretary of Defense to carry out this 
section and section 911 of the Military Construction Authorization Act, 
1982 (42 U.S.C. 248c), for fiscal year 1996 may not exceed 
$300,000,000, adjusted by the Secretary to reflect the inflation factor 
used by the Department of Defense for such year.
    ``(2) During fiscal year 1996, the number of covered beneficiaries 
under chapter 55 of title 10, United States Code (including covered 
beneficiaries described in section 1086(d)(1) of such title), who are 
enrolled in managed care plans offered by facilities described in 
subsection (a) and designated under subsection (c) may not exceed the 
number of such covered beneficiaries so enrolled as of October 1, 
1994.''.
SEC. 722. APPLICATION OF FEDERAL ACQUISITION REGULATION TO 
              PARTICIPATION AGREEMENTS WITH UNIFORMED SERVICES 
              TREATMENT FACILITIES.

    (a) Section 718(c) of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1587) is amended--
            (1) in the second sentence of paragraph (1), by striking 
        out ``A participation agreement'' and inserting in lieu thereof 
        ``Except as provided in paragraph (4), a participation 
        agreement'';
            (2) by redesignating paragraph (4) as paragraph (6); and
            (3) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Application of federal acquisition regulation.--On 
        and after the date of the enactment of this paragraph, 
        Uniformed Services Treatment Facilities and any participation 
        agreement between Uniformed Services Treatment Facilities and 
        the Secretary of Defense shall be subject to the Federal 
        Acquisition Regulation issued pursuant to section 25(c) of the 
        Office of Federal Procurement Policy Act (41 U.S.C. 421(c)) 
        notwithstanding any provision to the contrary in such a 
        participation agreement. The requirements regarding competition 
        in the Federal Acquisition Regulation shall apply with regard 
        to the negotiation of any new participation agreement between 
        the Uniformed Services Treatment Facilities and the Secretary 
        of Defense under this subsection or any other provision of 
        law.''.
    (b) Sense of Congress.--(1) Congress finds that the Uniformed 
Services Treatment Facilities provide quality health care to the 
120,000 Department of Defense beneficiaries enrolled in the Uniformed 
Services Family Health Plan provided by these facilities.
    (2) In light of such finding, it is the sense of Congress that the 
Uniformed Services Family Health Plan provided by the Uniformed 
Services Treatment Facilities should not be terminated for convenience 
under provisions of the Federal Acquisition Regulation by the Secretary 
of Defense before the expiration of the current participation 
agreements.
SEC. 723. DEVELOPMENT OF PLAN FOR INTEGRATING UNIFORMED SERVICES 
              TREATMENT FACILITIES IN MANAGED CARE PROGRAMS OF 
              DEPARTMENT OF DEFENSE.

    Section 718(c) of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 104 Stat. 1587) is amended by inserting 
after paragraph (4), as added by section 722, the following new 
paragraph:
            ``(5) Plan for integrating facilities.--(A) Not later than 
        March 1, 1996, the Secretary of Defense shall submit to 
        Congress a plan under which Uniformed Services Treatment 
        Facilities, on or before September 30, 1997, shall be included 
        in the exclusive health care provider networks established by 
        the Secretary for the geographic regions in which the 
        facilities are located. The Secretary shall address in the plan 
        the feasibility of implementing the managed care plan of the 
        Uniformed Services Treatment Facilities, known as Option II, on 
        a mandatory basis for all USTF Medicare-eligible beneficiaries 
        and the potential cost savings to the Military Health Care 
        Program that could be achieved under such option.
            ``(B) The plan developed under this paragraph shall be 
        consistent with the requirements specified in paragraph (4). If 
        the plan is not submitted to Congress by the expiration date of 
        the participation agreements entered into under this section, 
        the participation agreements shall remain in effect, at the 
        option of the Uniformed Services Treatment Facilities, until 
        the end of the 180-day period beginning on the date the plan is 
        finally submitted.
            ``(C) For purposes of this paragraph, the term `USTF 
        Medicare-eligible beneficiaries' means covered beneficiaries 
        under chapter 55 of title 10, United States Code, who are 
        enrolled in a managed health plan offered by the Uniformed 
        Services Treatment Facilities and entitled to hospital 
        insurance benefits under part A of title XVIII of the Social 
        Security Act (42 U.S.C. 1395c et seq.).''.
SEC. 724. EQUITABLE IMPLEMENTATION OF UNIFORM COST SHARING REQUIREMENTS 
              FOR UNIFORMED SERVICES TREATMENT FACILITIES.

    (a) Time for Fee Implementation.--The uniform managed care benefit 
fee and copayment schedule developed by the Secretary of Defense for 
use in all managed care initiatives of the military health service 
system, including the managed care program of the Uniformed Services 
Treatment Facilities, shall be extended to the managed care program of 
a Uniformed Services Treatment Facility only after the later of--
            (1) the implementation of the TRICARE regional program 
        covering the service area of the Uniformed Services Treatment 
        Facility; or
            (2) the end of the 180-day period beginning on the date of 
        the enactment of this Act.
    (b) Submission of Actuarial Estimates.--Paragraph (2) of subsection 
(a) shall operate as a condition on the extension of the uniform 
managed care benefit fee and copayment schedule to the Uniformed 
Services Treatment Facilities only if the Uniformed Services Treatment 
Facilities submit to the Comptroller General of the United States, 
within 30 days after the date of the enactment of this Act, actuarial 
estimates in support of their contention that the extension of such 
fees and copayments will have an adverse effect on the operation of the 
Uniformed Services Treatment Facilities and the enrollment of 
participants.
    (c) Evaluation.--Except as provided in paragraph (2), not later 
than 90 days after the date of the enactment of this Act, the 
Comptroller General shall submit to Congress the results of an 
evaluation of the effect on the Uniformed Services Treatment Facilities 
of the extension of the uniform benefit fee and copayment schedule to 
the Uniformed Services Treatment Facilities. The evaluation shall 
include an examination of whether the benefit fee and copayment 
schedule may--
            (A) cause adverse selection of enrollees;
            (B) be inappropriate for a fully at-risk program similar to 
        civilian health maintenance organizations; or
            (C) result in an enrolled population dissimilar to the 
        general beneficiary population.
    (2) The Comptroller General shall not be required to prepare or 
submit the evaluation under paragraph (1) if the Uniformed Services 
Treatment Facilities fail to satisfactorily comply with subsection (b), 
as determined by the Comptroller General.
   Subtitle D--Other Changes to Existing Laws Regarding Health Care 
                               Management
SEC. 731. MAXIMUM ALLOWABLE PAYMENTS TO INDIVIDUAL HEALTH-CARE 
              PROVIDERS UNDER CHAMPUS.

    (a) Maximum Payment.--Subsection (h) of section 1079 of title 10, 
United States Code, is amended by striking out paragraph (1) and 
inserting in lieu thereof the following new paragraph:
    ``(1) 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) may not exceed the lesser of--
            ``(A) an amount equivalent to the 80th percentile of billed 
        charges made for similar services in the same locality during a 
        12-month base period; or
            ``(B) 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.).''.
    (b) Comparison to Medicare Payments.--Such subsection is further 
amended by adding at the end the following new paragraph:
    ``(3) For the purposes of paragraph (1)(B), the appropriate payment 
amount shall be determined by the Secretary of Defense, in consultation 
with the other administering Secretaries.''.
    (c) Exceptions and Limitations.--Such subsection is further amended 
by inserting after paragraph (3), as added by subsection (b), the 
following new paragraphs:
    ``(4) The Secretary of Defense, in consultation with the other 
administering Secretaries, shall prescribe regulations to provide for 
such exceptions to the payment limitations under paragraph (1) as the 
administering Secretaries determine to be necessary to assure that 
covered beneficiaries retain adequate access to health care services. 
Such exceptions may include the payment of amounts greater than the 
amount allowed under paragraph (1) when enrollees in managed care 
programs obtain covered emergency services from nonparticipating 
providers. To transition from the payment methods in effect before the 
date of the enactment of this paragraph to the methodology required by 
paragraph (1), the amount allowable for any service may not be reduced 
by more than 15 percent from the amount allowed for the same service 
during the immediately preceding 12-month period (or other period as 
established by the Secretary of Defense).
    ``(5) The Secretary of Defense, in consultation with the other 
administering Secretaries, shall prescribe regulations to establish 
limitations (similar to those limitations established under title XVIII 
of the Social Security Act (42 U.S.C. 1395 et seq.)) on beneficiary 
liability for charges of an individual health care professional (or 
other noninstitutional health care provider).''.
    (d) Conforming Amendment.--Paragraph (2) of such subsection is 
amended by striking out ``paragraph (1)'' and inserting in lieu thereof 
``paragraph (1)(A)''.
    (e) Report on Effect of Amendments.--Not later than March 1, 1996, 
the Secretary of Defense shall submit to Congress a report analyzing 
the effect of the amendments made by this section on the ability or 
willingness of individual health care professionals and other 
noninstitutional health care providers to participate in the Civilian 
Health and Medical Program of the Uniformed Services.
SEC. 732. EXPANSION OF EXISTING RESTRICTION ON USE OF DEFENSE FUNDS FOR 
              ABORTIONS.

    (a) Inclusion of Defense Facilities.--Section 1093 of title 10, 
United States Code, is amended by inserting after ``Department of 
Defense'' the following: ``, and medical treatment facilities or other 
facilities of the Department of Defense,''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended by inserting ``or facilities'' after ``funds''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 55 of such title is amended to read as 
follows:

``1093. Restriction on use of funds or facilities for abortions.''.
SEC. 733. IDENTIFICATION OF THIRD-PARTY PAYER SITUATIONS.

    Section 1095 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(k)(1) To improve the administration of this section and sections 
1079(j)(1) and 1086(d) of this title, the Secretary of Defense, in 
consultation with the other administering Secretaries, may prescribe 
regulations to collect information regarding insurance, medical 
service, or health plans of third-party payers held by covered 
beneficiaries.
    ``(2) The collection of information under regulations issued under 
paragraph (1) shall be conducted in the same manner as provided in 
section 1862(b)(5) of the Social Security Act (42 U.S.C. 1395y(b)(5)). 
The Secretary may provide for obtaining from the Commissioner of Social 
Security employment information comparable to the information provided 
to the Administrator of the Health Care Financing Administration 
pursuant to such section. Such regulations may require the mandatory 
disclosure of social security account numbers for all covered 
beneficiaries.
    ``(3) The Secretary of Defense may disclosure relevant employment 
information collected under this subsection to fiscal intermediaries or 
other designated contractors.
    ``(4) The Secretary of Defense may provide for contacting employers 
of covered beneficiaries to obtain group health plan information 
comparable to the information authorized to be obtained under section 
1862(b)(5)(C) of the Social Security Act (42 U.S.C. 1395y(b)(5)(C)). 
Clause (ii) of such section regarding the imposition of civil money 
penalties shall apply to the collection of information under this 
paragraph.
    ``(5) Information obtained under this subsection may not be 
disclosed for any purpose other than to carry out the purpose of this 
section and sections 1079(j)(1) and 1086(d) of this title.''.
SEC. 734. REDESIGNATION OF MILITARY HEALTH CARE ACCOUNT AS DEFENSE 
              HEALTH PROGRAM ACCOUNT AND TWO-YEAR AVAILABILITY OF 
              CERTAIN ACCOUNT FUNDS.

    (a) Redesignation.--Section 1100 of title 10, United States Code, 
is amended--
            (1) in subsection (a)(1)--
                    (A) by striking out ``Military Health Care 
                Account'' and inserting in lieu thereof ``Defense 
                Health Program Account''; and
                    (B) by striking out ``the Civilian Health and 
                Medical Program of the Uniformed Services'' and 
                inserting in lieu thereof ``medical and health care 
                programs of the Department of Defense''; and
            (2) in subsection (b)--
                    (A) by striking out ``entering into a contract'' 
                and inserting in lieu thereof ``conducting programs and 
                activities under this chapter, including contracts 
                entered into''; and
                    (B) by inserting a comma after ``title''.
    (b) Two Year Availability of Certain Appropriations.--Subsection 
(a)(2) of such section is amended to read as follows:
    ``(2) Three percent of the funds appropriated annually for the 
operation and maintenance of the programs and activities authorized by 
this chapter shall remain available for obligation until the end of the 
fiscal year following the fiscal year for which the funds were 
appropriated. This paragraph shall not apply for a fiscal year to the 
extent that a provision of law specifically refers to this paragraph 
and specifies that this paragraph shall not apply for that fiscal 
year.''.
    (c) Conforming Amendments.--Such section is further amended--
            (1) by striking out subsections (c), (d), and (f); and
            (2) by redesignating subsection (e) as subsection (c).
    (d) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 1100. Defense Health Program Account''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 55 of such title is amended to read as 
follows:

``1100. Defense Health Program Account.''.
SEC. 735. EXPANSION OF FINANCIAL ASSISTANCE PROGRAM FOR HEALTH-CARE 
              PROFESSIONALS IN RESERVE COMPONENTS TO INCLUDE DENTAL 
              SPECIALTIES.

    Section 16201(b) of title 10, United States Code, is amended--
            (1) in the subsection heading, by inserting ``and 
        Dentists'' after ``Physicians'';
            (2) in paragraph (1)(A), by inserting ``or dental school'' 
        after ``medical school'';
            (3) in paragraphs (1)(B) and (2)(B), by inserting ``or 
        dental officer'' after ``medical officer''; and
            (4) in paragraph (1)(C), by striking out ``physicians in a 
        medical specialty'' and inserting in lieu thereof ``physicians 
        or dentists in a medical or dental specialty''.
SEC. 736. ELIMINATION OF UNNECESSARY ANNUAL REPORTING REQUIREMENTS 
              REGARDING MILITARY HEALTH CARE.

    Section 1252 of the Department of Defense Authorization Act, 1984 
(42 U.S.C. 248d), is amended by striking out subsection (d).
                       Subtitle E--Other Matters
SEC. 741. TERMINATION OF PROGRAM TO TRAIN AND UTILIZE MILITARY 
              PSYCHOLOGISTS TO PRESCRIBE PSYCHOTROPIC MEDICATIONS.

    (a) Termination.--Immediately after the date of the enactment of 
this Act, the Secretary of Defense shall terminate the demonstration 
pilot program for training and utilizing military psychologists in the 
prescription of psychotropic medications, which is referred to in 
section 8097 of the Department of Defense Appropriations Act, 1991 
(Public Law 101-511; 104 Stat. 1897). None of the funds appropriated to 
the Department of Defense for a fiscal year after fiscal year 1995 may 
be used to train psychologists to be able to prescribe psychotropic 
medications.
    (b) Effect on Authority To Prescribe Psychotropic Medications.--
Psychologists who participated in the demonstration pilot training 
program regarding the prescription of psychotropic medications shall 
not be authorized to prescribe such medications despite the completion 
of training under the program.
SEC. 742. WAIVER OF COLLECTION OF PAYMENTS DUE FROM CERTAIN PERSONS 
              UNAWARE OF LOSS OF CHAMPUS ELIGIBILITY.

    (a) Authority To Waive Collection.--The administering Secretaries 
may waive the collection of payments otherwise due from a person 
described in subsection (b) as a result of the receipt by the person of 
health benefits under section 1086 of title 10, United States Code, 
after the termination of the person's eligibility for such benefits.
    (b) Persons Eligible for Waiver.--A person shall be eligible for 
relief under subsection (a) if the person--
            (1) is a person described in paragraph (1) of subsection 
        (d) of section 1086 of title 10, United States Code;
            (2) in the absence of such paragraph, would have been 
        eligible for health benefits under such section; and
            (3) at the time of the receipt of such benefits, satisfied 
        the criteria specified in subparagraphs (A) and (B) of 
        paragraph (2) of such subsection.
    (c) Extent of Waiver Authority.--The authority to waive the 
collection of payments pursuant to this section shall apply with regard 
to health benefits provided under section 1086 of title 10, United 
States Code, to persons described in subsection (b) during the period 
beginning on January 1, 1967, and ending on the later of--
            (1) the termination date of any special enrollment period 
        provided under title XVIII of the Social Security Act (42 
        U.S.C. 1395c et seq.) specifically for such persons; and
            (2) July 1, 1996.
    (d) Definitions.--For purposes of this section, the term 
``administering Secretaries'' has the meaning given such term in 
section 1072(3) of title 10, United States Code.

SEC. 743. NOTIFICATION OF CERTAIN CHAMPUS COVERED BENEFICIARIES OF LOSS 
              OF CHAMPUS ELIGIBILITY.

    Section 1086(d) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(4) The administering Secretaries shall develop a mechanism by 
which persons described in paragraph (1) who satisfy only the criteria 
specified in subparagraphs (A) and (B) of paragraph (2), but not 
subparagraph (C) of such paragraph, are promptly notified of their 
ineligibility for health benefits under this section. The administering 
Secretaries shall consult with the Secretary of Health and Human 
Services and the Health Care Financing Administration regarding a 
method to promptly identify persons requiring notice under this 
subsection.''.
SEC. 744. DEMONSTRATION PROGRAM TO TRAIN MILITARY MEDICAL PERSONNEL IN 
              CIVILIAN SHOCK TRAUMA UNITS.

    (a) Demonstration Program.--Not later than April 1, 1996, the 
Secretary of Defense shall implement a demonstration program to 
evaluate the feasibility of providing shock trauma training for 
military medical personnel through the use of civilian hospitals. 
Pursuant to an agreement between the Secretary and one or more public 
or nonprofit hospitals, the Secretary shall assign military medical 
personnel participating in the demonstration program to temporary duty 
in shock trauma units operated by the hospitals that are parties to the 
agreement. As consideration for the services provided by military 
medical personnel under the agreement, the agreement shall require the 
hospitals to provide appropriate care to members of the Armed Forces 
and to other persons whose care in the hospital would otherwise require 
reimbursement by the Secretary. The value of the services provided by 
the hospitals shall be at least equal to the value of the services 
provided by military medical personnel under the agreement.
    (b) Termination of Program.--The authority of the Secretary of 
Defense to conduct the demonstration program under this section, and 
any agreement entered into under the demonstration program, shall 
expire on March 31, 1998.
    (c) Report and Evaluation of Program.--(1) Not later than March 1 
of each year in which the demonstration program is conducted under this 
section, the Secretary of Defense shall submit to Congress a report 
describing the scope and activities of the demonstration program during 
the preceding year.
    (2) Not later than May 1, 1998, the Comptroller General of the 
United States shall submit to Congress a report evaluating the 
effectiveness of the demonstration program in providing shock trauma 
training for military medical personnel.
SEC. 745. STUDY REGARDING DEPARTMENT OF DEFENSE EFFORTS TO DETERMINE 
              APPROPRIATE FORCE LEVELS OF WARTIME MEDICAL PERSONNEL.

    (a) Study Required.--The Comptroller General of the United States 
shall conduct a study to evaluate the reasonableness of the models used 
by each military department for determining the appropriate wartime 
force level for medical personnel in the department. The study shall 
include the following:
            (1) An assessment of the modeling techniques used by each 
        department.
            (2) An analysis of the data used in the models to identify 
        medical personnel requirements.
            (3) An identification of the ability of the models to 
        integrate personnel of reserve components to meet department 
        requirements.
            (4) An evaluation of the ability of the Secretary of 
        Defense to integrate the various modeling efforts into a 
        comprehensive, coordinated plan for obtaining the optimum force 
        level for wartime medical personnel.
    (b) Report of Study.--Not later than June 30, 1996, the Comptroller 
General shall report to Congress on the results of the study conducted 
under subsection (a).
SEC. 746. STUDY REGARDING EXPANDED MENTAL HEALTH SERVICES FOR CERTAIN 
              COVERED BENEFICIARIES.

    (a) Study Required.--In connection with the mental health services 
already available for covered beneficiaries under chapter 55 of title 
10, United States Code, who are children and require residential 
treatment, the Secretary of Defense shall conduct a study regarding the 
feasibility of expanding such services to include a program of 
individualized continued care following completion of the residential 
treatment to compliment the residential treatment and prevent 
recidivism.
    (b) Report of Study.--Not later than March 1, 1996, the Secretary 
of Defense shall submit to Congress a report describing the results of 
the study conducted under subsection (a).
SEC. 747. REPORT ON IMPROVED ACCESS TO MILITARY HEALTH CARE FOR COVERED 
              BENEFICIARIES ENTITLED TO MEDICARE.

    Not later than March 1, 1996, the Secretary of Defense shall submit 
to Congress a report evaluating the feasibility, costs, and 
consequences for the military health care system of improving access to 
the system for covered beneficiaries under chapter 55 of title 10, 
United States Code, who have limited access to military medical 
treatment facilities and are ineligible for the Civilian Health and 
Medical Program of the Uniformed Services under section 1086(d)(1) of 
such title. The alternatives the Secretary shall consider to improve 
access for such covered beneficiaries shall include--
            (1) whether CHAMPUS should serve as a second payer for 
        covered beneficiaries who are entitled to hospital insurance 
        benefits under part A of title XVIII of the Social Security Act 
        (42 U.S.C. 1395c et seq.); and
            (2) whether such covered beneficiaries should be offered 
        enrollment in the Federal Employees Health Benefits program 
        under chapter 89 of title 5, United States Code.
SEC. 748. SENSE OF CONGRESS ON CONTINUITY OF HEALTH CARE SERVICES FOR 
              COVERED BENEFICIARIES ADVERSELY AFFECTED BY CLOSURES OF 
              MILITARY MEDICAL TREATMENT FACILITIES.

    (a) Finding.--Congress finds the following:
            (1) Military installations selected for closure in the 1991 
        and 1993 rounds of the base closure process are approaching 
        their closing dates.
            (2) Additional military installations are being selected 
        for closure in the 1995 round of the base closure process.
            (3) As a result of these base closures, tens of thousands 
        of covered beneficiaries under chapter 55 of title 10, United 
        States Code, who reside in the vicinity of affected 
        installations will be left without immediate access to military 
        medical treatment facilities.
    (b) Sense of Congress.--In light of the findings specified in 
subsection (a), it is the sense of Congress that the Secretary of 
Defense should take all appropriate steps necessary to ensure the 
continuation of medical and pharmaceutical benefits to covered 
beneficiaries adversely affected by the closure of military 
installations.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS
                        Subtitle A--Competition
SEC. 801. COMPETITION PROVISIONS.

    (a) Conference Before Submission of Bids or Proposals.--(1) Section 
2305(a) of title 10, United States Code, is amended by adding at the 
end the following paragraph:
    ``(6) To the extent practicable, for each procurement of property 
or services by an agency, the head of the agency shall provide for a 
conference on the procurement to be held for anyone interested in 
submitting a bid or proposal in response to the solicitation for the 
procurement. The purpose of the conference shall be to inform potential 
bidders and offerors of the needs of the agency and the qualifications 
considered necessary by the agency to compete successfully in the 
procurement.''.
    (2) Section 303A of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253a) is amended by adding at the end 
the following new subsection:
    ``(f) To the extent practicable, for each procurement of property 
or services by an agency, an executive agency shall provide for a 
conference on the procurement to be held for anyone interested in 
submitting a bid or proposal in response to the solicitation for the 
procurement. The purpose of the conference shall be to inform potential 
bidders and offerors of the needs of the executive agency and the 
qualifications considered necessary by the executive agency to compete 
successfully in the procurement.''.
    (b) Description of Source Selection Plan in Solicitation.--(1) 
Section 2305(a) of title 10, United States Code, is further amended in 
paragraph (2)--
            (A) by striking out ``and'' after the semicolon at the end 
        of subparagraph (A);
            (B) by striking out the period at the end of subparagraph 
        (B) and inserting in lieu thereof ``; and''; and
            (C) by adding at the end the following new subparagraph:
            ``(C) a description, in as much detail as is practicable, 
        of the source selection plan of the agency, or a notice that 
        such plan is available upon request.''.
    (2) Section 303A of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253a) is further amended in subsection 
(b)--
            (A) by striking out ``and'' after the semicolon at the end 
        of paragraph (1);
            (B) by striking out the period at the end of paragraph (2) 
        and inserting in lieu thereof ``; and''; and
            (C) by adding at the end the following new paragraph:
            ``(3) a description, in as much detail as is practicable, 
        of the source selection plan of the executive agency, or a 
        notice that such plan is available upon request.''.
    (c) Discussions Not Necessary With Every Offeror.--(1) Section 
2305(b)(4)(A)(i) of title 10, United States Code, is amended by 
inserting before the semicolon the following: ``and provided that 
discussions need not be conducted with an offeror merely to permit that 
offeror to submit a technically acceptable revised proposal''.
    (2) Section 303B(d)(1)(A) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253b) is amended by 
inserting before the semicolon the following: ``and provided that 
discussions need not be conducted with an offeror merely to permit that 
offeror to submit a technically acceptable revised proposal''.
    (d) Preliminary Assessments of Competitive Proposals.--(1) Section 
2305(b)(2) of title 10, United States Code, is amended by adding at the 
end the following: ``With respect to competitive proposals, the head of 
the agency may make a preliminary assessment of a proposal received, 
rather than a complete evaluation of the proposal, and may eliminate 
the proposal from further consideration if the head of the agency 
determines the proposal has no chance for contract award.''.
    (2) Section 303B(b) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253b(b)) is amended by adding at the 
end the following: ``With respect to competitive proposals, the head of 
the agency may make a preliminary assessment of a proposal received, 
rather than a complete evaluation of the proposal, and may eliminate 
the proposal from further consideration if the head of the agency 
determines the proposal has no chance for contract award.''.
    (e) Federal Acquisition Regulation.--The Federal Acquisition 
Regulation shall be revised to reflect the amendments made by 
subsections (a), (b), (c), and (d).

SEC. 802. PREAWARD DEBRIEFINGS.

    (a) Armed Services Acquisitions.--Section 2305(b) of title 10, 
United States Code, is amended--
            (1) by striking out subparagraph (F) of paragraph (5);
            (2) by redesignating paragraph (6) as paragraph (8); and
            (3) by inserting after paragraph (5) the following new 
        paragraphs:
            ``(6)(A) When the contracting officer excludes an offeror 
        submitting a competitive proposal from the competitive range 
        (or otherwise excludes such an offeror from further 
        consideration prior to the final source selection decision), 
        the excluded offeror may request in writing, within three days 
        after the date on which the excluded offeror receives notice of 
        its exclusion, a debriefing prior to award. The contracting 
        officer shall make every effort to debrief the unsuccessful 
        offeror as soon as practicable and may refuse the request for a 
        debriefing if it is not in the best interests of the Government 
        to conduct a debriefing at that time.
            ``(B) The contracting officer is required to debrief an 
        excluded offeror in accordance with paragraph (5) of this 
        section only if that offeror requested and was refused a 
        preaward debriefing under subparagraph (A) of this paragraph.
            ``(C) The debriefing conducted under this subsection shall 
        include--
                    ``(i) the executive agency's evaluation of the 
                significant elements in the offeror's offer;
                    ``(ii) a summary of the rationale for the offeror's 
                exclusion; and
                    ``(iii) reasonable responses to relevant questions 
                posed by the debriefed offeror as to whether source 
                selection procedures set forth in the solicitation, 
                applicable regulations, and other applicable 
                authorities were followed by the executive agency.
            ``(D) The debriefing conducted pursuant to this subsection 
        may not disclose the number or identity of other offerors and 
        shall not disclose information about the content, ranking, or 
        evaluation of other offerors' proposals.
    ``(7) The contracting officer shall include a summary of any 
debriefing conducted under paragraph (5) or (6) in the contract 
file.''.
    (b) Civilian Agency Acquisitions.--Section 303B of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253b) is 
amended--
            (1) by striking out paragraph (6) of subsection (e);
            (2) by redesignating subsections (f), (g), (h), and (i) as 
        subsections (h), (i), (j), and (k), respectively; and
            (3) by inserting after subsection (e) the following new 
        subsections:
    ``(f)(1) When the contracting officer excludes an offeror 
submitting a competitive proposal from the competitive range (or 
otherwise excludes such an offeror from further consideration prior to 
the final source selection decision), the excluded offeror may request 
in writing, within 3 days after the date on which the excluded offeror 
receives notice of its exclusion, a debriefing prior to award. The 
contracting officer shall make every effort to debrief the unsuccessful 
offeror as soon as practicable and may refuse the request for a 
debriefing if it is not in the best interests of the Government to 
conduct a debriefing at that time.
    ``(2) The contracting officer is required to debrief an excluded 
offeror in accordance with subsection (e) of this section only if that 
offeror requested and was refused a preaward debriefing under paragraph 
(1) of this subsection.
    ``(3) The debriefing conducted under this subsection shall 
include--
            ``(A) the executive agency's evaluation of the significant 
        elements in the offeror's offer;
            ``(B) a summary of the rationale for the offeror's 
        exclusion; and
            ``(C) reasonable responses to relevant questions posed by 
        the debriefed offeror as to whether source selection procedures 
        set forth in the solicitation, applicable regulations, and 
        other applicable authorities were followed by the executive 
        agency.
    ``(4) The debriefing conducted pursuant to this subsection may not 
disclose the number or identity of other offerors and shall not 
disclose information about the content, ranking, or evaluation of other 
offerors' proposals.
    ``(g) The contracting officer shall include a summary of the any 
debriefing conducted under subsection (e) or (f) in the contract 
file.''.

SEC. 803. CONTRACT TYPES.

    (a) Armed Services Acquisitions.--(1) Section 2306 of title 10, 
United States Code, is amended--
            (A) by inserting before the period at the end of subsection 
        (a) the following: ``, based on market conditions, established 
        commercial practice (if any) for the product or service being 
        acquired, and sound business judgment'';
            (B) by striking out subsections (b), (d), (e), (f), and 
        (h); and
            (C) by redesignating subsection (g) as subsection (b).
    (2) The heading of such section is amended to read as follows:
``Sec. 2306. Contract types''.
    (b) Civilian Agency Acquisitions.--(1) Section 304 of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 254) is 
amended--
            (A) by inserting before the period at the end of the first 
        sentence of subsection (a) the following: ``, based on market 
        conditions, established commercial practice (if any) for the 
        product or service being acquired, and sound business 
        judgment''; and
            (B) by striking out ``Every contract award'' in the second 
        sentence of subsection (a) and all that follows through the end 
        of the section.
    (2) The heading of such section is amended to read as follows:

``SEC. 304. CONTRACT TYPES.''.

    (c) Conforming Repeals.--(1) Sections 4540, 7212, and 9540 of title 
10, United States Code, are repealed.
    (2) The table of sections at the beginning of chapter 433 of such 
title is amended by striking out the item relating to section 4540.
    (3) The table of sections at the beginning of chapter 631 of such 
title is amended by striking out the item relating to section 7212.
    (4) The table of sections at the beginning of chapter 933 of such 
title is amended by striking out the item relating to section 9540.
    (d) Civil Works Authority.--(1) Chapter 137 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2332. Contracts for architectural and engineering services and 
              construction design
    ``The Secretary of Defense and the Secretaries of the military 
departments may enter into contracts for architectural and engineering 
services in connection with a military construction or family housing 
project or for other Department of Defense or military department 
purposes. Such contracts shall be awarded in accordance with the Brooks 
Architect-Engineers Act (40 U.S.C. 541 et seq.).''.
    (2) The table of sections at the beginning of chapter 137 of such 
title is amended by adding at the end the following new item:

``2332. Contracts for architectural and engineering services and 
                            construction design.''.
    (3) Section 2855 of such title is repealed. The table of sections 
at the beginning of chapter 169 of such title is amended by striking 
out the item relating to such section.
                      Subtitle B--Commercial Items

SEC. 811. COMMERCIAL ITEM EXCEPTION TO REQUIREMENT FOR COST OR PRICING 
              DATA AND INFORMATION LIMITATIONS.

    (a) Armed Services Acquisitions.--(1) Subsections (b), (c), and (d) 
of section 2306a of title 10, United States Code, are amended to read 
as follows:
    ``(b) Exceptions.--
            ``(1) In general.--Submission of cost or pricing data shall 
        not be required under subsection (a) in the case of a contract, 
        a subcontract, or modification of a contract or subcontract--
                    ``(A) for which the price agreed upon is based on--
                            ``(i) adequate price competition; or
                            ``(ii) prices set by law or regulation;
                    ``(B) for the acquisition of a commercial item; or
                    ``(C) in an exceptional case when the head of the 
                procuring activity, without delegation, determines that 
                the requirements of this section may be waived and 
                justifies in writing the reasons for such 
                determination.
            ``(2) Modifications of contracts and subcontracts for 
        commercial items.--In the case of a modification of a contract 
        or subcontract for a commercial item that is not covered by the 
        exception on the submission of cost or pricing data in 
        paragraph (1)(A) or (1)(B), submission of cost or pricing data 
        shall not be required under subsection (a) if--
                    ``(A) the contract or subcontract being modified is 
                a contract or subcontract for which submission of cost 
                or pricing data may not be required by reason of 
                paragraph (1)(A) or (1)(B); and
                    ``(B) the modification would not change the 
                contract or subcontract, as the case may be, from a 
                contract or subcontract for the acquisition of a 
                commercial item to a contract or subcontract for the 
                acquisition of an item other than a commercial item.
    ``(c) Authority To Require Cost or Pricing Data on Below-Threshold 
Contracts.--(1) Subject to paragraph (2), when certified cost or 
pricing data are not required to be submitted by subsection (a) for a 
contract, subcontract, or modification of a contract or subcontract, 
such data may nevertheless be required to be submitted by the head of 
the procuring activity, but only if the head of the procuring activity 
determines that such data are necessary for the evaluation by the 
agency of the reasonableness of the price of the contract, subcontract, 
or modification of a contract or subcontract. In any case in which the 
head of the procuring activity requires such data to be submitted under 
this subsection, the head of the procuring activity shall justify in 
writing the reason for such requirement.
    ``(2) The head of the procuring activity may not require certified 
cost or pricing data to be submitted under this paragraph for any 
contract or subcontract, or modification of a contract or subcontract, 
covered by the exceptions in subparagraph (A) or (B) of subsection 
(b)(1).
    ``(3) The head of a procuring activity may not delegate functions 
under this paragraph.
    ``(d) Limitations on Other Information.--The Federal Acquisition 
Regulation shall include the following:
            ``(1) Provisions concerning the types of information that 
        contracting officers may consider in determining whether the 
        price of a procurement to the Government is fair and reasonable 
        when certified cost or pricing data are not required to be 
        submitted under this section, including appropriate information 
        on the prices at which the same item or similar items have 
        previously been sold that is adequate for evaluating the 
        reasonableness of the price of the proposed contract or 
        subcontract for the procurement.
            ``(2) Reasonable limitations on requests for sales data 
        relating to commercial items.
            ``(3) A requirement that a contracting officer shall, to 
        the maximum extent practicable, limit the scope of any request 
        for information relating to commercial items from an offeror to 
        only that information that is in the form regularly maintained 
        by the offeror in commercial operations.
            ``(4) A statement that any information received relating to 
        commercial items that is exempt from disclosure under section 
        552(b) of title 5 shall not be disclosed by the Federal 
        Government.''.
    (2) Section 2306a of such title is further amended--
            (A) by striking out subsection (h); and
            (B) by redesignating subsection (i) as subsection (h).
    (3) Section 2375 of title 10, United States Code, is amended by 
striking out subsection (c).
    (b) Civilian Agency Acquisitions.--(1) Subsections (b), (c) and (d) 
of section 304A of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 254b) are amended to read as follows:
    ``(b) Exceptions.--
            ``(1) In general.--Submission of cost or pricing data shall 
        not be required under subsection (a) in the case of a contract, 
        a subcontract, or a modification of a contract or subcontract--
                    ``(A) for which the price agreed upon is based on--
                            ``(i) adequate price competition; or
                            ``(ii) prices set by law or regulation;
                    ``(B) for the acquisition of a commercial item; or
                    ``(C) in an exceptional case when the head of the 
                procuring activity, without delegation, determines that 
                the requirements of this section may be waived and 
                justifies in writing the reasons for such 
                determination.
            ``(2) Modifications of contracts and subcontracts for 
        commercial items.--In the case of a modification of a contract 
        or subcontract for a commercial item that is not covered by the 
        exception on the submission of cost or pricing data in 
        paragraph (1)(A) or (1)(B), submission of cost or pricing data 
        shall not be required under subsection (a) if--
                    ``(A) the contract or subcontract being modified is 
                a contract or subcontract for which submission of cost 
                or pricing data may not be required by reason of 
                paragraph (1)(A) or (1)(B); and
                    ``(B) the modification would not change the 
                contract or subcontract, as the case may be, from a 
                contract or subcontract for the acquisition of a 
                commercial item to a contract or subcontract for the 
                acquisition of an item other than a commercial item.
    ``(c) Authority To Require Cost or Pricing Data on Below-Threshold 
Contracts.--(1) Subject to paragraph (2), when certified cost or 
pricing data are not required to be submitted by subsection (a) for a 
contract, subcontract, or modification of a contract or subcontract, 
such data may nevertheless be required to be submitted by the head of 
the procuring activity, but only if the head of the procuring activity 
determines that such data are necessary for the evaluation by the 
agency of the reasonableness of the price of the contract, subcontract, 
or modification of a contract or subcontract. In any case in which the 
head of the procuring activity requires such data to be submitted under 
this subsection, the head of the procuring activity shall justify in 
writing the reason for such requirement.
    ``(2) The head of the procuring activity may not require certified 
cost or pricing data to be submitted under this paragraph for any 
contract or subcontract, or modification of a contract or subcontract, 
covered by the exceptions in subparagraph (A) or (B) of subsection 
(b)(1).
    ``(3) The head of a procuring activity may not delegate the 
functions under this paragraph.
    ``(d) Limitations on Other Information.--The Federal Acquisition 
Regulation shall include the following:
            ``(1) Provisions concerning the types of information that 
        contracting officers may consider in determining whether the 
        price of a procurement to the Government is fair and reasonable 
        when certified cost or pricing data are not required to be 
        submitted under this section, including appropriate information 
        on the prices at which the same item or similar items have 
        previously been sold that is adequate for evaluating the 
        reasonableness of the price of the proposed contract or 
        subcontract for the procurement.
            ``(2) Reasonable limitations on requests for sales data 
        relating to commercial items.
            ``(3) A requirement that a contracting officer shall, to 
        the maximum extent practicable, limit the scope of any request 
        for information relating to commercial items from an offeror to 
        only that information that is in the form regularly maintained 
        by the offeror in commercial operations.
            ``(4) A statement that any information received relating to 
        commercial items that is exempt from disclosure under section 
        552(b) of title 5 shall not be disclosed by the Federal 
        Government.''.
    (2) Section 304A of such Act is further amended--
            (A) by striking out subsection (h); and
            (B) by redesignating subsection (i) as subsection (h).

SEC. 812. APPLICATION OF SIMPLIFIED PROCEDURES TO COMMERCIAL ITEMS.

    (a) Armed Services Acquisitions.--Section 2304(e) of title 10, 
United States Code, as added by section 801(a), is amended--
            (1) in paragraph (1), by inserting after ``special 
        simplified procedures'' the following: ``for purchases of 
        commercial items and''; and
            (2) by adding at the end the following new paragraph:
    ``(4) The Federal Acquisition Regulation shall provide that, in the 
case of a purchase of commercial items in an amount greater than the 
simplified acquisition threshold, the head of an agency may not conduct 
the purchase on a sole source basis unless the need to do so is 
justified in writing and approved in accordance with the Federal 
Acquisition Regulation.
    (b) Civilian Agency Acquisitions.--Section 303(e) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253), as 
added by section 801(b), is amended--
            (1) in paragraph (1), by inserting after ``special 
        simplified procedures'' the following: ``for purchases of 
        commercial items and''; and
            (2) by adding at the end the following new paragraph:
    ``(5) The Federal Acquisition Regulation shall provide that, in the 
case of a purchase of commercial items in an amount greater than the 
simplified acquisition threshold, an executive agency may not conduct 
the purchase on a sole source basis unless the need to do so is 
justified in writing and approved in accordance with the Federal 
Acquisition Regulation.''.
    (c) Simplified Notice.--Section 18 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 416) is amended in subsection (a)(5) 
(as redesignated by section 801(d))--
            (1) by striking out ``limited''; and
            (2) by inserting before ``submission'' the following: 
        ``issuance of solicitations and the''.

SEC. 813. AMENDMENT TO DEFINITION OF COMMERCIAL ITEMS.

    Section 4(12)(F) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403(12)(F)) is amended by striking out ``catalog''.

SEC. 814. INAPPLICABILITY OF COST ACCOUNTING STANDARDS TO CONTRACTS AND 
              SUBCONTRACTS FOR COMMERCIAL ITEMS.

    Subparagraph (B) of section 26(f)(2) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 422(f)(2)) is amended--
            (1) by striking out clause (i) and inserting in lieu 
        thereof the following:
            ``(i) Contracts or subcontracts for the acquisition of 
        commercial items.''; and
            (2) by striking out clause (iii).

                Subtitle C--Additional Reform Provisions

SEC. 821. REPEALS OF CERTAIN PROCUREMENT PROVISIONS.

    (a) Post-Employment Restrictions.--Sections 2397, 2397a, 2397b, and 
2397c of title 10, United States Code, are repealed.
    (b) Limitation on Expenditure of Appropriations.--Section 2207 of 
such title is repealed.
    (c) Certain Delegation Authority.--Section 2356 of such title is 
repealed.
    (d) Spare Parts Control.--Section 2383 of such title is repealed.
    (e) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 131 of title 10, United States Code, is amended by 
striking out the item relating to section 2207.
    (2) The table of sections at the beginning of chapter 139 of such 
title is amended by striking out the item relating to section 2356.
    (3) The table of sections at the beginning of chapter 141 of title 
10, United States Code, is amended by striking out the items relating 
to sections 2383, 2397, 2397a, 2397b, and 2397c.

SEC. 822. FEES FOR CERTAIN TESTING SERVICES.

    Section 2539b(c) of title 10, United States Code, is amended by 
inserting ``and indirect'' after ``recoup the direct''.

SEC. 823. TESTING OF DEFENSE ACQUISITION PROGRAMS.

    (a) In General.--Section 2366 to title 10, United States Code, is 
amended--
            (1) by striking out ``survivability'' each place it appears 
        (including in the section heading) and inserting in lieu 
        thereof ``vulnerability''; and
            (2) in subsection (b)--
                    (A) by striking out ``Survivability'' and inserting 
                in lieu thereof ``Vulnerability''; and
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
    ``(3) Testing should begin at the component, subsystem, and 
subassembly level, culminating with tests of the complete system 
configured for combat.''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 139 of such title is 
amended to read as follows:

``2366. Major systems and munitions programs: vulnerability testing and 
                            lethality testing required before full-
                            scale production.''.
SEC. 824. COORDINATION AND COMMUNICATION OF DEFENSE RESEARCH 
              ACTIVITIES.

    Section 2364 of title 10, United States Code, is amended--
            (1) in subsection (b)(5), by striking out ``milestone O, 
        milestone I, and milestone II'' and inserting in lieu thereof 
        ``acquisition program''; and
            (2) in subsection (c), by striking out paragraphs (2), (3), 
        and (4) and inserting in lieu thereof the following:
            ``(2) The term `acquisition program decisions' has the 
        meaning prescribed by the Secretary of Defense in 
        regulations.''.

SEC. 825. ADDITION OF CERTAIN ITEMS TO DOMESTIC SOURCE LIMITATION.

    (a) Limitation.--(1) Paragraph (3) of section 2534(a) of title 10, 
United States Code, is amended to read as follows:
            ``(3) Vessel components for all branches of the armed 
        forces.--(A) The following components of vessels:
                    ``(i) Air circuit breakers.
                    ``(ii) Vessel propellers with a diameter of six 
                feet or more, if the propellers incorporate only 
                castings poured and finished in the United States.
                    ``(iii) Welded shipboard anchor and mooring chain 
                with a diameter of four inches or less.
            ``(B) The following components of vessels, to the extent 
        they are unique to marine applications: cable assemblies, hose 
        assemblies, hydraulics and pumps for steering, gyrocompasses, 
        marine autopilots, electronic navigation chart systems, 
        navigators, attitude and heading reference units, power 
        supplies, radars, steering controls, pumps, engines, turbines, 
        reduction gears, motors, refrigeration systems, generators, 
        propulsion and machinery control systems, and totally enclosed 
        lifeboards, including associated davits and winches.''.
    (2) Section 2534 of such title is amended by adding at the end the 
following new subsection:
    ``(h) Implementation of Marine Vessel Component Limitation.--In 
implementing subsection (a)(3)(B), the Secretary of Defense--
            ``(1) may not use contract clauses or certifications; and
            ``(2) shall use management and oversight techniques that 
        achieve the objective of the subsection without imposing a 
        significant management burden on the Government or the 
        contractor involved.''.
    (b) Extension of Limitation Relating to Ball Bearings and Roller 
Bearings.--Section 2534(c)(3) of such title is amended by striking out 
``October 1, 1995'' and inserting in lieu thereof ``October 1, 2000''.
    (c) Inapplicability of Simplified Acquisition Limitation to 
Contracts for Ball Bearings and Roller Bearings.--Section 2534(g) of 
title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``This section''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Paragraph (1) does not apply to contracts for items described 
in subsection (a)(5) (relating to ball bearings and roller bearings), 
notwithstanding section 33 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 429).''.

SEC. 826. REVISIONS TO PROCUREMENT NOTICE PROVISIONS.

    Section 18(a) of the Office of Federal Procurement Policy Act (41 
U.S.C. 416(a)) is amended--
            (1) in subparagraph (B) of paragraph (1)--
                    (A) by striking out ``subsection (f)--'' and all 
                that follows through the end of the subparagraph and 
                inserting in lieu thereof ``subsection (b); and''; and
                    (B) by inserting after ``property or services'' the 
                following: ``for a price expected to exceed $10,000 but 
                not to exceed $25,000'';
            (2) by striking out paragraph (4); and
            (3) by redesignating paragraphs (5) and (6) as paragraphs 
        (4) and (5), respectively.
SEC. 827. ENCOURAGEMENT OF USE OF LEASING AUTHORITY.

    (a) In General.--(1) Chapter 137 of title 10, United States Code, 
is amended by inserting after section 2316 the following new section:
``Sec. 2317. Equipment leasing
    ``The Secretary of Defense shall authorize and encourage the use of 
leasing in the acquisition of equipment whenever such leasing is 
practicable and otherwise authorized by law.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2317. Equipment leasing.''.
    (b) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress a report 
setting forth changes in legislation that would be required in order to 
facilitate the use of leases by the Department of Defense in the 
acquisition of equipment.
SEC. 828. GOVERNMENT RELIANCE ON THE PRIVATE SECTOR.

    (a) Government Reliance on the Private Sector.--The Office of 
Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by 
inserting after section 16 the following new section:

``SEC. 17. GOVERNMENT RELIANCE ON THE PRIVATE SECTOR.

    ``It is the policy of the Federal Government to rely on the private 
sector to supply the products and services the Federal Government 
needs.''.
    (b) Clerical Amendment.--The table of contents for the Office of 
Federal Procurement Policy Act (contained in section 1(b)) is amended 
by inserting after the item relating to section 16 the following new 
item:

``Sec. 17. Government reliance on the private sector.''.
SEC. 829. ELIMINATION OF CERTAIN CERTIFICATION REQUIREMENTS.

    (a) Elimination of Certain Statutory Certification Requirements.--
(1)(A) Section 2410 of title 10, United States Code, is amended--
            (i) in the heading, by striking out ``: certification''; 
        and
            (ii) in subsection (a)--
                    (I) in the heading, by striking out 
                ``Certification'';
                    (II) by striking out ``unless'' and all that 
                follows through ``that--'' and inserting in lieu 
                thereof ``unless--''; and
                    (III) in paragraph (2), by striking out ``to the 
                best of that person's knowledge and belief''.
    (B) The item relating to section 2410 in the table of sections at 
the beginning of chapter 141 of such title is amended to read as 
follows:

``Sec. 2410. Requests for equitable adjustment or other relief.''.
    (2) Section 2410b of title 10, United States Code, is amended in 
paragraph (2) by striking out ``certification and''.
    (3) Section 1352(b)(2) of title 31, United States Code, is 
amended--
            (A) by striking out subparagraph (C); and
            (B) by inserting ``and'' after the semicolon at the end of 
        subparagraph (A).
    (4) Section 5152 of the Drug-Free Workplace Act of 1988 (41 U.S.C. 
701) is amended--
            (A) in subsection (a)(1), by striking out ``has certified 
        to the contracting agency that it will'' and inserting in lieu 
        thereof ``agrees to'';
            (B) in subsection (a)(2), by striking out ``contract 
        includes a certification by the individual'' and inserting in 
        lieu thereof ``individual agrees''; and
            (C) in subsection (b)(1)--
                    (i) by striking out subparagraph (A);
                    (ii) by redesignating subparagraph (B) as 
                subparagraph (A) and in that subparagraph by striking 
                out ``such certification by failing to carry out''; and
                    (iii) by redesignating subparagraph (C) as 
                subparagraph (B).
    (b) Elimination of Certain Regulatory Certification Requirements.--
            (1) Current certification requirements.--Not later than 210 
        days after the date of the enactment of this Act, any 
        certification required of contractors or offerors by the 
        Federal Acquisition Regulation or an executive agency 
        procurement regulation that is not specifically imposed by 
        statute shall be removed by the Administrator for Federal 
        Procurement Policy from the Federal Acquisition Regulation or 
        such agency regulation unless--
                    (A) written justification for such certification is 
                provided to the Administrator (i) by the Federal 
                Acquisition Regulatory Council (in the case of a 
                certification in the Federal Acquisition Regulation), 
                or (ii) by the head of an executive agency (in the case 
                of a certification in an executive agency procurement 
                regulation); and
                    (B) the Administrator approves in writing the 
                retention of such certification.
            (2) Future certification requirements.--(A) Section 29 of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 425) is 
        amended--
                    (i) by amending the heading to read as follows:

``SEC. 22. CONTRACT CLAUSES AND CERTIFICATIONS.'';

                    (ii) by inserting ``(a) Nonstandard Contract 
                Clauses.--'' before ``The Federal Acquisition''; and
                    (iii) by adding at the end the following new 
                subsection:
    ``(b) Prohibition on Certification Requirements.--A requirement for 
a certification by a contractor or offeror may not be included in the 
Federal Acquisition Regulation or an executive agency procurement 
regulation unless--
            ``(1) the certification is specifically imposed by statute; 
        or
            ``(2) written justification for such certification is 
        provided to the Administrator for Federal Procurement Policy 
        (A) by the Federal Acquisition Regulatory Council (in the case 
        of a certification in the Federal Acquisition Regulation), or 
        (B) the head of an executive agency (in the case of a 
        certification in an executive agency procurement regulation), 
        and the Administrator approves in writing the inclusion of such 
        certification.''.
    (B) The item relating to section 29 in the table of contents for 
the Office of Federal Procurement Policy Act (contained in section 
1(b)) (41 U.S.C. 401 note) is amended to read as follows:

``Sec. 29. Contract clauses and certifications.''.
SEC. 830. AMENDMENT TO COMMENCEMENT AND EXPIRATION OF AUTHORITY TO 
              CONDUCT CERTAIN TESTS OF PROCUREMENT PROCEDURES.

    Subsection (j) of section 5061 of the Federal Acquisition 
Streamlining Act of 1994 (41 U.S.C. 413 note) is amended to read as 
follows:
    ``(j) Commencement and Expiration of Authority.--The authority to 
conduct a test under subsection (a) in an agency and to award contracts 
under such a test shall take effect on August 1, 1995, and shall expire 
on August 1, 2000. Contracts entered into before such authority expires 
in an agency pursuant to a test shall remain in effect, notwithstanding 
the expiration of the authority to conduct the test under this 
section.''.

SEC. 831. PROCUREMENT INTEGRITY.

    (a) Amendment of Procurement Integrity Provision.--Section 27 of 
the Office of Federal Procurement Policy Act (41 U.S.C. 423) is amended 
to read as follows:

``SEC. 27. RESTRICTIONS ON DISCLOSING AND OBTAINING CONTRACTOR BID OR 
              PROPOSAL INFORMATION OR SOURCE SELECTION INFORMATION.

    ``(a) Prohibition on Disclosing Procurement Information.--(1) A 
person described in paragraph (2) shall not, other than as provided by 
law, knowingly disclose contractor bid or proposal information or 
source selection information before the award of a Federal agency 
procurement contract to which the information relates.
    ``(2) Paragraph (1) applies to any person who--
            ``(A) is a present or former officer or employee of the 
        United States, or a person who is acting or has acted for or on 
        behalf of, or who is advising or has advised the United States 
        with respect to, a Federal agency procurement; and
            ``(B) by virtue of that office, employment, or relationship 
        has or had access to contractor bid or proposal information or 
        source selection information.
    ``(b) Prohibition on Obtaining Procurement Information.--A person 
shall not, other than as provided by law, knowingly obtain contractor 
bid or proposal information or source selection information before the 
award of a Federal agency procurement contract to which the information 
relates.
    ``(c) Prohibition on Disclosing or Obtaining Procurement 
Information in Connection With a Protest.--(1) A person shall not, 
other than as provided by law, knowingly violate the terms of a 
protective order described in paragraph (2) by disclosing or obtaining 
contractor bid or proposal information or source selection information 
related to the procurement contract concerned.
    ``(2) Paragraph (1) applies to any protective order issued by the 
the United States Board of Contract Appeals in connection with a 
protest against the award or proposed award of a Federal agency 
procurement contract.
    ``(d) Penalties and Administrative Actions.--
            ``(1) Criminal penalties.--
                    ``(A) Whoever engages in conduct constituting an 
                offense under subsection (a), (b), or (c) shall be 
                imprisoned for not more than one year or fined as 
                provided under title 18, United States Code, or both.
                    ``(B) Whoever engages in conduct constituting an 
                offense under subsection (a), (b), or (c) for the 
                purpose of either--
                            ``(i) exchanging the information covered by 
                        such subsection for anything of value, or
                            ``(ii) obtaining or giving anyone a 
                        competitive advantage in the award of a Federal 
                        agency procurement contract,

                shall be imprisoned for not more than 15 years or fined 
                as provided under title 18, United States Code, or 
                both.
            ``(2) Civil penalties.--The Attorney General may bring a 
        civil action in the appropriate United States district court 
        against any person who engages in conduct constituting an 
        offense under subsection (a), (b), or (c). Upon proof of such 
        conduct by a preponderance of the evidence, the person is 
        subject to a civil penalty. An individual who engages in such 
        conduct is subject to a civil penalty of not more than $50,000 
        for each violation plus twice the amount of compensation which 
        the individual received or offered for the prohibited conduct. 
        An organization that engages in such conduct is subject to a 
        civil penalty of not more than $500,000 for each violation plus 
        twice the amount of compensation which the organization 
        received or offered for the prohibited conduct.
            ``(3) Administrative actions.--(A) If a Federal agency 
        receives information that a contractor or a person has engaged 
        in conduct constituting an offense under subsection (a), (b), 
        or (c), the Federal agency shall consider taking one or more of 
        the following actions, as appropriate:
                    ``(i) Cancellation of the Federal agency 
                procurement, if a contract has not yet been awarded.
                    ``(ii) Rescission of a contract with respect to 
                which--
                            ``(I) the contractor or someone acting for 
                        the contractor has been convicted for an 
                        offense under subsection (a), (b), or (c), or
                            ``(II) the head of the agency that awarded 
                        the contract has determined, based upon a 
                        preponderance of the evidence, that the 
                        contractor or someone acting for the contractor 
                        has engaged in conduct constituting such an 
                        offense.
                    ``(iii) Initiation of suspension or debarment 
                proceedings for the protection of the Government in 
                accordance with procedures in the Federal Acquisition 
                Regulation.
                    ``(iv) Initiation of adverse personnel action, 
                pursuant to the procedures in chapter 75 of title 5, 
                United States Code, or other applicable law or 
                regulation.
            ``(B) If a Federal agency rescinds a contract pursuant to 
        subparagraph (A)(ii), the United States is entitled to recover, 
        in addition to any penalty prescribed by law, the amount 
        expended under the contract.
            ``(C) For purposes of any suspension or debarment 
        proceedings initiated pursuant to subparagraph (A)(iii), 
        engaging in conduct constituting an offense under subsection 
        (a), (b), or (c) affects the present responsibility of a 
        Government contractor or subcontractor.
    ``(e) Definitions.--As used in this section:
            ``(1) The term `contractor bid or proposal information' 
        means any of the following information submitted to a Federal 
        agency as part of or in connection with a bid or proposal to 
        enter into a Federal agency procurement contract, if that 
        information has not been previously made available to the 
        public or disclosed publicly:
                    ``(A) Cost or pricing data (as defined by section 
                2306a(h) of title 10, United States Code, with respect 
                to procurements subject to that section, and section 
                304A(h) of Federal Property and Administrative Services 
                Act of 1949 (41 U.S.C. 254b(h), with respect to 
                procurements subject to that section).
                    ``(B) Indirect costs and direct labor rates.
                    ``(C) Proprietary information about manufacturing 
                processes, operations, or techniques marked by the 
                contractor in accordance with applicable law or 
                regulation.
                    ``(D) Information marked by the contractor as 
                `contractor bid or proposal information', in accordance 
                with applicable law or regulation.
            ``(2) The term `source selection information' means any of 
        the following information prepared for use by a Federal agency 
        for the purpose of evaluating a bid or proposal to enter into a 
        Federal agency procurement contract, if that information has 
        not been previously made available to the public or disclosed 
        publicly:
                    ``(A) Bid prices submitted in response to a Federal 
                agency solicitation for sealed bids, or lists of those 
                bid prices before public bid opening.
                    ``(B) Proposed costs or prices submitted in 
                response to a Federal agency solicitation, or lists of 
                those proposed costs or prices.
                    ``(C) Source selection plans.
                    ``(D) Technical evaluation plans.
                    ``(E) Technical evaluations of proposals.
                    ``(F) Cost or price evaluations of proposals.
                    ``(G) Competitive range determinations that 
                identify proposals that have a reasonable chance of 
                being selected for award of a contract.
                    ``(H) Rankings of bids, proposals, or competitors.
                    ``(I) The reports and evaluations of source 
                selection panels, boards, or advisory councils.
                    ``(J) Other information marked as `source selection 
                information' based on a case-by-case determination by 
                the head of the agency, his designee, or the 
                contracting officer that its disclosure would 
                jeopardize the integrity or successful completion of 
                the Federal agency procurement to which the information 
                relates.
            ``(3) The term `Federal agency' has the meaning provided 
        such term in section 3 of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 472).
            ``(4) The term `Federal agency procurement' means the 
        acquisition (by using competitive procedures and awarding a 
        contract) of goods or services (including construction) from 
        non-Federal sources by a Federal agency using appropriated 
        funds.
            ``(5) The term `contracting officer' means a person who, by 
        appointment in accordance with applicable regulations, has the 
        authority to enter into a Federal agency procurement contract 
        on behalf of the Government and to make determinations and 
        findings with respect to such a contract.
            ``(6) The term `protest' means a written objection by an 
        interested party to the award or proposed award of a Federal 
        agency procurement contract, pursuant to title IV of the 
        Federal Acquisition Reform Act of 1995.
    ``(f) Limitation on Protests.--No person may file a protest against 
the award or proposed award of a Federal agency procurement contract 
alleging an offense under subsection (a), (b), or (c), of this section, 
nor may the United States Board of Contract Appeals consider such an 
allegation in deciding a protest, unless that person reported to the 
Federal agency responsible for the procurement information that the 
person believed constituted evidence of the offense no later than 14 
days after the person first discovered the possible offense.
    ``(g) Savings Provisions.--This section does not--
            ``(1) restrict the disclosure of information to, or its 
        receipt by, any person or class of persons authorized, in 
        accordance with applicable agency regulations or procedures, to 
        receive that information;
            ``(2) restrict a contractor from disclosing its own bid or 
        proposal information or the recipient from receiving that 
        information;
            ``(3) restrict the disclosure or receipt of information 
        relating to a Federal agency procurement after it has been 
        canceled by the Federal agency before contract award unless the 
        Federal agency plans to resume the procurement;
            ``(4) prohibit individual meetings between a Federal agency 
        employee and an offeror or potential offeror for, or a 
        recipient of, a contract or subcontract under a Federal agency 
        procurement, provided that unauthorized disclosure or receipt 
        of contractor bid or proposal information or source selection 
        information does not occur;
            ``(5) authorize the withholding of information from, nor 
        restrict its receipt by, Congress, a committee or subcommittee 
        of Congress, the Comptroller General, a Federal agency, or an 
        inspector general of a Federal agency;
            ``(6) authorize the withholding of information from, nor 
        restrict its receipt by, any board of contract appeals of a 
        Federal agency or the Comptroller General in the course of a 
        protest against the award or proposed award of a Federal agency 
        procurement contract; or
            ``(7) limit the applicability of any requirements, 
        sanctions, contract penalties, and remedies established under 
        any other law or regulation.''.
    (b) Repeals.--The following provisions of law are repealed:
            (1) Sections 2397, 2397a, 2397b, and 2397c of title 10, 
        United States Code.
            (2) Section 33 of the Federal Energy Administration Act of 
        1974 (15 U.S.C. 789).
            (3) Section 281 of title 18, United States Code.
            (4) Subsection (c) of section 32 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 428).
            (5) The first section 19 of the Federal Nonnuclear Energy 
        Research and Development Act of 1974 (42 U.S.C. 5918).
    (c) Clerical Amendments.--
            (1) The table of sections at the beginning of chapter 141 
        of title 10, United States Code, is amended by striking out the 
        items relating to sections 2397, 2397a, 2397b, and 2397c.
            (2) The table of sections at the beginning of chapter 15 of 
        title 18, United States Code, is amended by striking out the 
        item relating to section 281.
            (3) Section 32 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 428) is amended by redesignating subsections 
        (d), (e), (f), and (g) as subsections (c), (d), (e), and (f), 
        respectively.

SEC. 832. FURTHER ACQUISITION STREAMLINING PROVISIONS.

    (a) Purpose of Office of Federal Procurement Policy.--(1) Section 
5(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 404) is 
amended to read as follows:
    ``(a) To promote economy, efficiency, and effectiveness in the 
procurement of property and services by the executive branch of the 
Federal Government, there shall be an Office of Federal Procurement 
Policy (hereinafter referred to as the `Office') in the Office of 
Management and Budget to provide overall direction of Government-wide 
procurement policies, regulations, procedures, and forms for executive 
agencies.''.
    (2) Sections 2 and 3 of such Act (41 U.S.C. 401 and 402) are 
repealed.
    (b) Repeal of Report Requirement.--Section 8 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 407) is repealed.
    (c) Repeal of Obsolete Provisions.--(1) Sections 10 and 11 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 409 and 410) are 
repealed.
    (d) Clerical Amendments.--The table of contents for the Office of 
Federal Procurement Policy Act (contained in section 1(b)) is amended 
by striking out the items relating to sections 2, 3, 8, 10, and 11.

SEC. 833. JUSTIFICATION OF MAJOR DEFENSE ACQUISITION PROGRAMS NOT 
              MEETING GOALS.

    Section 2220(b) of title 10, United States Code, is amended by 
adding at the end the following: ``In addition, the Secretary shall 
include in such annual report a justification for the continuation of 
any program that--
            ``(1) is more than 50 percent over the cost goal 
        established for the development, procurement, or operational 
        phase of the program;
            ``(2) fails to achieve at least 50 percent of the 
        performance capability goals established for the development, 
        procurement, or operational phase of the program; or
            ``(3) is more than 50 percent behind schedule, as 
        determined in accordance with the schedule goal established for 
        the development, procurement, or operational phase of the 
        program.''.

SEC. 834. ENHANCED PERFORMANCE INCENTIVES FOR ACQUISITION WORKFORCE.

    (a) Armed Services Acquisitions.--Subsection (b) of section 5001 of 
the Federal Acquisition Streamlining Act of 1994 (Public Law 103-355; 
108 Stat. 3350; 10 U.S.C. 2220 note) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by designating the second sentence as paragraph (2);
            (3) by inserting ``(1)'' after ``(b) Enhanced System of 
        Performance Incentives.--''; and
            (4) by adding at the end the following:
    ``(3) The Secretary shall include in the enhanced system of 
incentives the following:
            ``(A) Pay bands.
            ``(B) Significant and material pay and promotion incentives 
        to be awarded, and significant and material unfavorable 
        personnel actions to be imposed, under the system exclusively, 
        or primarily, on the basis of the contributions of personnel to 
        the performance of the acquisition program in relation to cost 
        goals, performance goals, and schedule goals.
            ``(C) Provisions for pay incentives and promotion 
        incentives to be awarded under the system.''.
    (b) Civilian Agency Acquisitions.--Subsection (c) of section 5051 
of the Federal Acquisition Streamlining Act of 1994 (Public Law 103-
355; 108 Stat. 3351; 41 U.S.C. 263 note) is amended--
            (1) by redesignating subparagraphs (A) and (B) of paragraph 
        (2) as clauses (i) and (ii); respectively;
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (3) by inserting ``(1)'' after ``(c) Enhanced System of 
        Performance Incentives.--''; and
            (4) by adding at the end the following:
    ``(2) The Deputy Director shall include in the enhanced system of 
incentives under paragraph (1)(B) the following:
            ``(A) Pay bands.
            ``(B) Significant and material pay and promotion incentives 
        to be awarded, and significant and material unfavorable 
        personnel actions to be imposed, under the system exclusively, 
        or primarily, on the basis of the contributions of personnel to 
        the performance of the acquisition program in relation to cost 
        goals, performance goals, and schedule goals.
            ``(C) Provisions for pay incentives and promotion 
        incentives to be awarded under the system.''.

SEC. 835. RESULTS ORIENTED ACQUISITION PROGRAM CYCLE.

    Section 5002(a) of the Federal Acquisition Streamlining Act of 1994 
(Public Law 103-355; 108 Stat. 3350) is amended--
    (1) by inserting ``(1)'' before ``to ensure''; and
    (2) by striking out the period at the end and inserting in lieu 
thereof the following: ``; (2) to ensure that the regulations compress 
the time periods associated with developing, procuring, and making 
operational new systems; and (3) to ensure that Department of Defense 
directives relating to development and procurement of information 
systems (numbered in the 8000 series) and the Department of Defense 
directives numbered in the 5000 series are consolidated into one series 
of directives that is consistent with such compressed time periods.''.

SEC. 836. RAPID CONTRACTING GOAL.

    (a) Goal.--The Office of Federal Procurement Policy Act is amended 
by adding at the end the following new section:

``SEC. 35. RAPID CONTRACTING GOAL.

    The Administrator for Federal Procurement Policy shall establish a 
goal of reducing by 50 percent the time necessary for executive 
agencies to acquire an item for the user of that item.''.
    (b) Clerical Amendment.--The table of contents for such Act, 
contained in section 1(b), is amended by adding at the end the 
following new item:

``Sec. 35. Rapid contracting goal.''.
SEC. 837. ENCOURAGEMENT OF MULTIYEAR CONTRACTING.

    (a) Armed Services Acquisitions.--Section 2306b(a) of title 10, 
United States Code, is amended in the matter preceding paragraph (1) by 
striking out ``may'' and inserting in lieu thereof ``shall, to the 
maximum extent possible,''.
    (b) Civilian Agency Acquisitions.--Section 304B(a) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 254c(a)) is 
amended in the matter preceding paragraph (1) by striking out ``may'' 
and inserting in lieu thereof ``shall, to the maximum extent 
possible,''.

SEC. 838. CONTRACTOR SHARE OF GAINS AND LOSSES FROM COST, SCHEDULE, AND 
              PERFORMANCE EXPERIENCE.

    (a) Armed Services Acquisitions.--(1) Chapter 137 of title 10, 
United States Code, is amended by inserting after section 2306b the 
following new section:
``Sec. 2306c. Contractor share of gains and losses from cost, schedule, 
              and performance experience
    ``The Federal Acquisition Regulation shall contain provisions to 
ensure that, for any cost-type contract or incentive-type contract, the 
contractor may be rewarded for contract performance exceeding the 
contract cost, schedule, or performance parameters to the benefit of 
the United States and may be penalized for failing to adhere to cost, 
schedule, or performance parameters to the detriment of the United 
States.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2306b the 
following new item:

``2306c. Contractor share of gains and losses from cost, schedule, and 
                            performance experience.''.
    (b) Civilian Agency Acquisitions.--(1) Title III of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 251 et 
seq.) is amended by inserting after section 304C the following new 
section:

``SEC. 304D. CONTRACTOR SHARE OF GAINS AND LOSSES FROM COST, SCHEDULE, 
              AND PERFORMANCE EXPERIENCE.

    ``The Federal Acquisition Regulation shall contain provisions to 
ensure that, for any cost-type contract or incentive-type contract, the 
contractor may be rewarded for contract performance exceeding the 
contract cost, schedule, or performance parameters to the benefit of 
the United States and may be penalized for failing to adhere to cost, 
schedule, or performance parameters to the detriment of the United 
States.''.
    (2) The table of contents for such Act, contained in section 1(b), 
is amended by inserting after the item relating to section 304C the 
following new item:

``Sec. 304D. Contractor share of gains and losses from cost, schedule, 
                            and performance experience.''.
SEC. 839. PHASE FUNDING OF DEFENSE ACQUISITION PROGRAMS.

    Chapter 131 of title 10, United States Code, is amended by adding 
at the end the following new section:
``Sec. 2221. Funding for results oriented acquisition program cycle
    ``Before initial funding is made available for the development, 
procurement, or operational phase of an acquisition program for which 
an authorization of appropriations is required by section 114 of this 
title, the Secretary of Defense shall submit to Congress information 
about the objectives and plans for the conduct of that phase and the 
funding requirements for the entire phase. The information shall 
identify the intended user of the system to be acquired under the 
program and shall include objective, quantifiable criteria for 
assessing the extent to which the objectives and goals determined 
pursuant to section 2435 of this title are achieved.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2221. Funding for results oriented acquisition program cycle.''.
SEC. 840. IMPROVED DEPARTMENT OF DEFENSE CONTRACT PAYMENT PROCEDURES.

    (a) Review and Improvement of Procedures.--The Comptroller General 
of the United States shall review commercial practices regarding 
accounts payable and, considering the results of the review, develop 
standards for the Secretary of Defense to consider using for improving 
the contract payment procedures and financial management systems of the 
Department of Defense.
    (b) GAO Report.--Not later than September 30, 1996, the Comptroller 
General shall submit to Congress a report containing the following 
matters:
            (1) The weaknesses in the financial management processes of 
        the Department of Defense.
            (2) Deviations of the Department of Defense payment 
        procedures and financial management systems from the standards 
        developed pursuant to subsection (a), expressed quantitatively.
            (3) The officials of the Department of Defense who are 
        responsible for resolving the deviations.

SEC. 841. CONSIDERATION OF PAST PERFORMANCE IN ASSIGNMENT TO 
              ACQUISITION POSITIONS.

    (a) Requirement.--Section 1701(a) of title 10, United States Code, 
is amended by adding at the end the following: ``The policies and 
procedures shall provide that education and training in acquisition 
matters, and past performance of acquisition responsibilities, are 
major factors in the selection of personnel for assignment to 
acquisition positions in the Department of Defense.''.
    (b) Performance Requirements for Assignment.--(1) Section 1723(a) 
of title 10, United States Code, is amended by inserting ``, including 
requirements relating to demonstrated past performance of acquisition 
duties,'' in the first sentence after ``experience requirements''.
    (2) Section 1724(a)(2) of such title is amended by inserting before 
the semicolon at the end the following: ``and have demonstrated 
proficiency in the performance of acquisition duties in the contracting 
position or positions previously held''.
    (3) Section 1735 of such title is amended--
            (A) in subsection (b)--
                    (i) by striking out ``and'' at the end of paragraph 
                (2);
                    (ii) by striking out the period at the end of 
                paragraph (3) and inserting in lieu thereof ``; and''; 
                and
                    (iii) by adding at the end the following:
            ``(4) must have demonstrated proficiency in the performance 
        of acquisition duties.'';
            (B) in subsection (c)--
                    (i) by striking out ``and'' at the end of paragraph 
                (2);
                    (ii) by striking out the period at the end of 
                paragraph (3) and inserting in lieu thereof ``; and''; 
                and
                    (iii) by adding at the end the following:
            ``(4) must have demonstrated proficiency in the performance 
        of acquisition duties.'';
            (C) in subsection (d), by inserting before the period at 
        the end the following: ``, and have demonstrated proficiency in 
        the performance of acquisition duties''; and
            (D) in subsection (e), by inserting before the period at 
        the end the following: ``, and have demonstrated proficiency in 
        the performance of acquisition duties''.
SEC. 842. VALUE ENGINEERING FOR FEDERAL AGENCIES.

    (a) Use of Value Engineering.--The Office of Federal Procurement 
Policy Act (41 U.S.C. 401 et seq.), as amended by section 837, is 
further amended by adding at the end the following new section:

``SEC. 37. VALUE ENGINEERING.

    ``(a) In General.--Each executive agency shall establish and 
maintain effective value engineering procedures and processes.
    ``(b) Threshold.--The procedures and processes established pursuant 
to subsection (a) shall be applied to those programs, projects, 
systems, and products of an executive agency that, in a ranking of all 
programs, projects, systems, and products of the agency according to 
greatest dollar value, are within the highest 20th percentile.
    ``(c) Definition.--As used in this section, the term `value 
engineering' means a team effort, performed by qualified agency or 
contractor personnel, directed at analyzing the functions of a program, 
project, system, product, item of equipment, building, facility, 
service, or supply for the purpose of achieving the essential functions 
at the lowest life-cycle cost that is consistent with required or 
improved performance, reliability, quality, and safety.''.
    (b) Clerical Amendment.--The table of contents for such Act, 
contained in section 1(b), is amended by adding at the end the 
following new item:

``Sec. 37. Value engineering.''.
SEC. 843. ACQUISITION WORKFORCE.

    (a) Acquisition Workforce.--(1) The Office of Federal Procurement 
Policy Act (41 U.S.C. 401 et seq.), as amended by section 843, is 
further amended by adding at the end the following new section:

``SEC. 38. ACQUISITION WORKFORCE.

    ``(a) Applicability.--This section does not apply to an executive 
agency that is subject to chapter 87 of title 10, United States Code.
    ``(b) Management Policies.--
            ``(1) Policies and procedures.--The head of each executive 
        agency, after consultation with the Administrator for Federal 
        Procurement Policy, shall establish policies and procedures for 
        the effective management (including accession, education, 
        training, career development, and performance incentives) of 
        the acquisition workforce of the agency. The development of 
        acquisition workforce policies under this section shall be 
        carried out consistent with the merit system principles set 
        forth in paragraphs (1) and (2) of section 2301(b) of title 5, 
        United States Code.
            ``(2) Uniform implementation.--The head of each executive 
        agency shall ensure that, to the maximum extent practicable, 
        acquisition workforce policies and procedures established are 
        uniform in their implementation throughout the agency.
            ``(3) Governmentwide policies and evaluation.--The 
        Administrator shall issue policies to promote uniform 
        implementation of this section by executive agencies, with due 
        regard for differences in program requirements among agencies 
        that may be appropriate and warranted in view of the agency 
        mission. The Administrator shall coordinate with the Deputy 
        Director for Management of the Office of Management and Budget 
        to ensure that such policies are consistent with the policies 
        and procedures established and enhanced system of incentives 
        provided pursuant to section 5051(c) of the Federal Acquisition 
        Streamlining Act of 1994 (41 U.S.C. 263 note). The 
        Administrator shall evaluate the implementation of the 
        provisions of this section by executive agencies.
    ``(c) Senior Procurement Executive Authorities and 
Responsibilities.--Subject to the authority, direction, and control of 
the head of an executive agency, the senior procurement executive of 
the agency shall carry out all powers, functions, and duties of the 
head of the agency with respect to implementation of this section. The 
senior procurement executive shall ensure that the policies of the head 
of the executive agency established in accordance with this section are 
implemented throughout the agency.
    ``(d) Management Information Systems.--The Administrator shall 
ensure that the heads of executive agencies collect and maintain 
standardized information on the acquisition workforce related to 
implementation of this section. To the maximum extent practicable, such 
data requirements shall conform to standards established by the Office 
of Personnel Management for the Central Personnel Data File.
    ``(e) Acquisition Workforce.--The programs established by this 
section shall apply to all employees in the General Schedule 
Contracting series (GS-1102) and the General Schedule Purchasing series 
(GS-1105), and to any employees regardless of series who have been 
appointed as contracting officers whose authority exceeds the micro-
purchase threshold, as that term is defined in section 32(g). The head 
of each executive agency may include employees in other series who 
perform acquisition or acquisition-related functions.
    ``(f) Career Development.--
            ``(1) Career paths.--The head of each executive agency 
        shall ensure that appropriate career paths for personnel who 
        desire to pursue careers in acquisition are identified in terms 
        of the education, training, experience, and assignments 
        necessary for career progression to the most senior acquisition 
        positions. The head of each executive agency shall make 
        information available on such career paths.
            ``(2) Critical duties and tasks.--For each career path, the 
        head of each executive agency shall identify the critical 
        acquisition-related duties and tasks in which, at minimum, 
        employees of the agency in the career path shall be competent 
        to perform at full performance grade levels. For this purpose, 
        the head of the executive agency shall provide appropriate 
        coverage of the critical duties and tasks identified by the 
        Director of the Federal Acquisition Institute.
            ``(3) Mandatory training and education.--For each career 
        path, the head of each executive agency shall establish 
        requirements for the completion of course work and related on-
        the-job training in the critical acquisition-related duties and 
        tasks of the career path. The head of each executive agency 
        shall also encourage employees to maintain the currency of 
        their acquisition knowledge and generally enhance their 
        knowledge of related acquisition management disciplines through 
        academic programs and other self-developmental activities.
            ``(4) Performance incentives.--The head of each executive 
        agency, acting through the senior procurement executive for the 
        agency, shall provide for an enhanced system of incentives for 
        the encouragement of excellence in the acquisition workforce 
        which rewards performance of employees that contribute to 
        achieving the agency's performance goals. The system of 
        incentives shall include provisions that--
                    ``(A) relate pay to performance;
                    ``(B) provide for consideration, in personnel 
                evaluations and promotion decisions, of the extent to 
                which the performance of personnel contributed to 
                achieving the agency's performance goals; and
                    ``(C) provide pay and promotion incentives to be 
                awarded, and unfavorable personnel actions to be 
                imposed, under the system on the basis of the 
                contributions of personnel to achieving the agency's 
                performance goals.
    ``(g) Qualification Requirements.--
            ``(1) General schedule contracting series (gs-1102).--
                    ``(A) Entry level qualifications.--The Director of 
                the Office of Personnel Management shall require that, 
                after October 1, 1996, a person may not be appointed to 
                a position in the GS-1102 occupational series unless 
                the person--
                            ``(i) has received a baccalaureate degree 
                        from an accredited educational institution 
                        authorized to grant baccalaureate degrees,
                            ``(ii) has completed at least 24 semester 
                        credit hours (or the equivalent) of study from 
                        an accredited institution of higher education 
                        in any of the following disciplines: 
                        accounting, business finance, law, contracts, 
                        purchasing, economics, industrial management, 
                        marketing, quantitative methods, or 
                        organization and management, or
                            ``(iii) has passed a written test 
                        determined by the Administrator for Federal 
                        Procurement Policy, after consultation with the 
                        Director of the Office of Personnel Management, 
                        to demonstrate the judgmental skills necessary 
                        for positions in this series.
                    ``(B) Qualifications for senior contracting 
                positions.--The Director of the Office of Personnel 
                Management shall require that, after October 1, 1996, 
                persons may be appointed to positions at and above full 
                performance grade levels in the GS-1102 occupational 
                series only if those persons--
                            ``(i) have satisfied the educational 
                        requirement either of subsection (g)(1)(A)(i) 
                        or subsection (g)(1)(A)(ii),
                            ``(ii) have successfully completed all 
                        training required for the position under 
                        subsection (f)(3), and
                            ``(iii) have satisfied experience and other 
                        requirements established by the Director for 
                        such positions.
                However, this requirement shall apply to persons 
                employed on October 1, 1996, in GS-1102 positions at 
                those grade levels only as a prerequisite for promotion 
                to a GS-1102 position at a higher grade.
            ``(2) General schedule purchasing series (gs-1105).--The 
        Director of the Office of Personnel Management shall require 
        that, after October 1, 1996, a person may not be appointed to a 
        position in the GS-1105 occupational series unless the person--
                    ``(A) has successfully completed 2 years of course 
                work from an accredited educational institution 
                authorized to grant degrees, or
                    ``(B) has passed a written test determined by the 
                Administrator for Federal Procurement Policy, after 
                consultation with the Director of the Office of 
                Personnel Management, to demonstrate the judgmental 
                skills necessary for positions in this series.
            ``(3) Contracting officers.--The head of each executive 
        agency shall require that, beginning after October 1, 1996, a 
        person may be appointed as a contracting officer with authority 
        to award or administer contracts for amounts above the micro-
        purchase threshold, as that term is defined in section 32(g), 
        only if the person--
                    ``(A) has successfully completed all mandatory 
                training required of an employee in an equivalent GS-
                1102 or 1105 position under subsection (f)(3); and
                    ``(B) meets experience and other requirements 
                established by the head of the agency, based on the 
                dollar value and complexity of the contracts that the 
                employee will be authorized to award or administer 
                under the appointment as a contracting officer.
            ``(4) Exceptions.--(A) The requirements set forth in 
        subsection (g)(1) and (2), as applicable, shall not apply to 
        any person employed in the GS-1101 or GS-1105 series on October 
        1, 1996.
            ``(B) Employees of an executive agency who do not satisfy 
        the full qualification requirements for appointment as a 
        contracting officer under subsection (g)(3) may be appointed as 
        a contracting officer for a temporary period of time under 
        procedures established by the agency head. The procedures 
        shall--
                    ``(i) require that the person have completed a 
                significant portion of the required training,
                    ``(ii) require a plan be established for the 
                balance of the required training,
                    ``(iii) specify a period of time for completion of 
                the training, and
                    ``(iv) include provisions for withdrawing or 
                terminating the appointment prior to the scheduled 
                expiration date, where appropriate.
            ``(5) Waiver.--The senior procurement executive for an 
        executive agency may waive any or all of the qualification 
        requirements of subsections (g)(1) and (2) for a person if the 
        person possesses significant potential for advancement to 
        levels of greater responsibility and authority, based on 
        demonstrated job performance and qualifying experience. This 
        authority may not be redelegated by the senior procurement 
        executive. With respect to each waiver granted under this 
        subsection, the senior procurement executive shall set forth in 
        writing the rationale for the decision to waive such 
        requirements.
    ``(h) Program Establishment and Implementation.--
            ``(1) Funding levels.--(A) The head of an executive agency 
        shall request in the budget for a fiscal year for the agency--
                    ``(i) for education and training under this 
                section, an amount equal to no less than 2.5 percent of 
                the base aggregate salary cost of the acquisition 
                workforce subject to this section for that fiscal year; 
                and
                    ``(ii) for salaries of the acquisition workforce, 
                an amount equal to no more than 97.5 percent of such 
                base aggregate salary cost.
            ``(B) The head of the executive agency shall set forth 
        separately the funding levels requested in the budget 
        justification documents submitted in support of the President's 
        budget submitted to Congress under section 1105 of title 31, 
        United States Code.
            ``(C) Funds appropriated for education and training under 
        this section may not be obligated or used for any other 
        purpose.
            ``(2) Interagency agreements.--The head of an executive 
        agency may enter into a written agreement with another agency 
        to participate in programs established under this section on a 
        reimbursable basis.
            ``(3) Tuition assistance.--Notwithstanding the prohibition 
        in section 4107(b) of title 5, United States Code, the head of 
        each executive agency may provide for tuition reimbursement and 
        education (including a full-time course of study leading to a 
        degree) for acquisition personnel in the agency related to the 
        purposes of this section.
            ``(4) Intern programs.--The head of each executive agency 
        may establish intern programs in order to recruit highly 
        qualified and talented individuals and provide them with 
        opportunities for accelerated promotions, career broadening 
        assignments, and specified training for advancement to senior 
        acquisition positions. For such programs, the head of an 
        executive agency, without regard to the provisions of title 5, 
        United States Code, may appoint individuals to competitive GS-
        5, GS-7, or GS-9 positions in the General Schedule Contracting 
        series (GS-1102) who have graduated from baccalaureate or 
        master's programs in purchasing or contracting from accredited 
        educational institutions authorized to grant baccalaureate and 
        master's degrees.
            ``(5) Cooperative education program.--The head of each 
        executive agency may establish an agencywide cooperative 
        education credit program for acquisition positions. Under the 
        program, the head of the executive agency may enter into 
        cooperative arrangements with one or more accredited 
        institutions of higher education which provide for such 
        institutions to grant undergraduate credit for work performed 
        in such position.
            ``(6) Scholarship program.--
                    ``(A) Establishment.--Where deemed appropriate, the 
                head of each executive agency may establish a 
                scholarship program for the purpose of qualifying 
                individuals for acquisition positions in the agency.
                    ``(B) Eligibility.--To be eligible to participate 
                in a scholarship program established under this 
                paragraph by an executive agency, an individual must--
                            ``(i) be accepted for enrollment or be 
                        currently enrolled as a full-time student at an 
                        accredited educational institution authorized 
                        to grant baccalaureate or graduate degrees (as 
                        appropriate);
                            ``(ii) be pursuing a course of education 
                        that leads toward completion of a bachelor's, 
                        master's, or doctor's degree (as appropriate) 
                        in a qualifying field of study, as determined 
                        by the head of the agency;
                            ``(iii) sign an agreement described in 
                        subparagraph (C) under which the participant 
                        agrees to serve a period of obligated service 
                        in the agency in an acquisition position in 
                        return for payment of educational assistance as 
                        provided in the agreement; and
                            ``(iv) meet such other requirements as the 
                        head of the agency prescribes.
                    ``(C) Agreement.--An agreement between the head of 
                an executive agency and a participant in a scholarship 
                program established under this paragraph shall be in 
                writing, shall be signed by the participant, and shall 
                include the following provisions:
                            ``(i) The agreement of the head of the 
                        agency to provide the participant with 
                        educational assistance for a specified number 
                        of school years, not to exceed 4, during which 
                        the participant is pursuing a course of 
                        education in a qualifying field of study. The 
                        assistance may include payment of tuition, 
                        fees, books, laboratory expenses, and a 
                        stipend.
                            ``(ii) The participant's agreement--
                                    ``(I) to accept such educational 
                                assistance,
                                    ``(II) to maintain enrollment and 
                                attendance in the course of education 
                                until completed,
                                    ``(III) while enrolled in such 
                                course, to maintain an acceptable level 
                                of academic standing (as prescribed by 
                                the head of the agency), and
                                    ``(IV) after completion of the 
                                course of education, to serve as a 
                                full-time employee in an acquisition 
                                position in the agency for a period of 
                                time of one calendar year for each 
                                school year or part thereof for which 
                                the participant was provided a 
                                scholarship under the program.
                    ``(D) Repayment.--(i) Any person participating in a 
                program established under this paragraph shall agree to 
                pay to the United States the total amount of 
                educational assistance provided to the person under the 
                program if the person is voluntarily separated from the 
                agency or involuntarily separated for cause from the 
                agency before the end of the period for which the 
                person has agreed to continue in the service of the 
                agency in an acquisition position.
                    ``(ii) If an employee fails to fulfill the 
                agreement to pay to the Government the total amount of 
                educational assistance provided to the person under the 
                program, a sum equal to the amount of the educational 
                assistance may be recovered by the Government from the 
                employee (or the estate of the employee) by setoff 
                against accrued pay, compensation, amount of retirement 
                credit, or other amount due the employee from the 
                Government; and by such other method as is provided by 
                law for the recovery of amounts owing to the 
                Government.
                    ``(iii) The head of an executive agency may waive 
                in whole or in part a repayment required under this 
                paragraph if the head of the agency determines the 
                recovery would be against equity and good conscience or 
                would be contrary to the best interests of the United 
                States.
                    ``(E) Termination of agreement.--There shall be no 
                requirement that a position be offered to a person 
                after such person successfully completes a course of 
                education required by an agreement under this 
                paragraph. If no position is offered, the agreement 
                shall be considered terminated.''.
    (2) The table of contents for such Act, contained in section 1(b), 
is amended by adding at the end the following new item:

``Sec. 38. Acquisition workforce.''.
    (b) Federal Acquisition Institute.--Section 6 of the Office of 
Federal Procurement Policy Act (41 U.S.C. 405), is amended--
            (1) in subsection (d) by amending paragraph (5) to read as 
        follows:
            ``(5) providing for and directing the activities of the 
        Federal Acquisition Institute (including recommending to the 
        Administrator of General Services a sufficient budget for such 
        activities), which shall be located in the General Services 
        Administration;''; and
            (2) by adding at the end the following new subsection:
    ``(l) The Federal Acquisition Institute shall--
            ``(1) recommend policies, procedures, and guidelines to the 
        Administrator, for--
                    ``(A) fostering and promoting the development of a 
                professional acquisition workforce governmentwide, and
                    ``(B) administering the provisions of section 35;
            ``(2) collect data and analyze acquisition workforce data 
        from the Office of Personnel Management, the heads of executive 
        agencies, and, through periodic surveys, from individual 
        employees;
            ``(3) periodically analyze acquisition career fields to 
        identify critical competencies, duties, tasks, and related 
        academic prerequisites, skills, and knowledge;
            ``(4) coordinate and assist agencies in identifying and 
        recruiting highly qualified candidates for acquisition fields;
            ``(5) develop instructional materials for acquisition 
        personnel in coordination with private and public acquisition 
        colleges and training facilities;
            ``(6) evaluate the effectiveness of training and career 
        development programs for acquisition personnel;
            ``(7) promote the establishment and utilization of academic 
        programs by colleges and universities in acquisition fields;
            ``(8) promote, coordinate, or conduct governmentwide 
        research and studies to improve the acquisition process and the 
        laws, policies, methods, regulations, procedures, and forms 
        relating to acquisition by the executive agencies;
            ``(9) facilitate, to the extent requested by agencies, 
        interagency intern and training programs; and
            ``(10) perform other career management or research 
        functions as directed by the Administrator.''.
    (c) Repeal of Superseded Provision.--Section 502 of the Small 
Business and Federal Procurement Competition Enhancement Act of 1984 
(41 U.S.C. 414a) is repealed.
SEC. 844. COST REIMBURSEMENT RULES FOR INDIRECT COSTS ATTRIBUTABLE TO 
              PRIVATE SECTOR WORK OF DEFENSE CONTRACTORS.

    (a) Defense Capability Preservation Agreement.--The Secretary of 
Defense may enter into an agreement, to be known as a ``defense 
capability preservation agreement'', with a defense contractor under 
which the cost reimbursement rules described in subsection (b) shall be 
applied. Such an agreement may be entered into in any case in which the 
Secretary determines that the application of such cost reimbursement 
rules would facilitate the achievement of the policy set forth in 
section 2501(c) of title 10, United States Code.
    (b) Cost Reimbursement Rules.--(1) The cost reimbursement rules 
applicable under an agreement entered into under subsection (a) are as 
follows:
            (A) The Department of Defense shall, in determining the 
        reimbursement due a contractor for its indirect costs of 
        performing a defense contract, allow the contractor to allocate 
        indirect costs to its private sector work only to the extent of 
        the contractor's allocable indirect private sector costs, 
        subject to subparagraph (C).
            (B) For purposes of subparagraph (A), the allocable 
        indirect private sector costs of a contractor are those costs 
        of the contractor that are equal to the amount by which the 
        revenue attributable to the private sector work of the 
        contractor exceeds the sum of--
                    (i) the direct costs attributable to such work, and
                    (ii) the incremental indirect costs attributable to 
                such work.
            (C) The total amount of allocable indirect private sector 
        costs for a contract in any year of the agreement may not 
        exceed the amount of indirect costs that a contractor would 
        have allocated to its private sector work during that year in 
        accordance with the contractor's accounting practices.
    (2) The cost reimbursement rules set forth in paragraph (1) may be 
modified if the Secretary of Defense determines that modifications are 
appropriate to the particular situation to facilitate achievement of 
the policy set forth in section 2501(c) of title 10, United States 
Code.
    (c) Relationship to Accounting Practice Change.--The use of the 
cost reimbursement rules described in subsection (b) under such an 
agreement with a contractor and the implementation of such an agreement 
does not constitute a change in cost accounting practices of the 
contractor within the meaning of section 26(h)(1)(B) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 422(h)(1)(B)).
    (d) Contracts Covered.--An agreement entered into with a contractor 
under subsection (a) shall apply to all Department of Defense contracts 
with the contractor either existing on the date on which the agreement 
was entered into or awarded during the term of the agreement.

             Subtitle D--Streamlining of Dispute Resolution

                       PART I--GENERAL PROVISIONS

SEC. 850. DEFINITIONS.

    In this subtitle:
            (1) The term ``Board'' means the United States Board of 
        Contract Appeals.
            (2) The term ``Board judge'' means a member of the United 
        States Board of Contract Appeals.
            (3) The term ``Chairman'' means the Chairman of the United 
        States Board of Contract Appeals.
            (4) The term ``executive agency'' has the meaning given by 
        section 2(2) of the Contract Disputes Act of 1978 (41 U.S.C. 
        601(2)).
            (5) The term ``alternative means of dispute resolution'' 
        has the meaning given by section 571(3) of title 5, United 
        States Code.
            (6) The term ``protest'' means a written objection by an 
        interested party to any of the following:
                    (A) A solicitation or other request by an executive 
                agency for offers for a contract for the procurement of 
                property or services.
                    (B) The cancellation of such a solicitation or 
                other request.
                    (C) An award or proposed award of such a contract.
                    (D) A termination or cancellation of an award of 
                such a contract, if the written objection contains an 
                allegation that the termination or cancellation is 
                based in whole or in part on improprieties concerning 
                the award of the contract.
            (7) The term ``interested party'', with respect to a 
        contract or a solicitation or other request for offers, means 
        an actual or prospective bidder or offeror whose direct 
        economic interest would be affected by the award of the 
        contract or by failure to award the contract.
            (8) The term ``prevailing party'', with respect to a 
        determination of the Board under section 864(b) that a decision 
        of a contracting officer violates a statute or regulation, 
        means a party that demonstrated such violation.

 PART II--ESTABLISHMENT OF THE UNITED STATES BOARD OF CONTRACT APPEALS

SEC. 851. ESTABLISHMENT.

    There is established in the executive branch of the Government an 
independent establishment to be known as the United States Board of 
Contract Appeals.

SEC. 852. MEMBERSHIP.

    (a) Appointment.--(1) The Board shall consist of Board judges 
appointed by the Chairman, without regard to political affiliation and 
solely on the basis of the professional qualifications required to 
perform the duties and responsibilities of a Board judge, from a 
register of applicants maintained by the Board.
    (2) The members of the Board shall be selected and appointed to 
serve in the same manner as administrative law judges appointed 
pursuant to section 3105 of title 5, United States Code, with an 
additional requirement that such members shall have had not fewer than 
five years' experience in public contract law.
    (3) Notwithstanding paragraph (2) and subject to subsection (b), 
the following persons shall serve as Board judges:
            (A) Any full-time member of an agency board of contract 
        appeals serving as such on the day before the effective date of 
        this subtitle.
            (B) Any person serving on the day before the date of the 
        enactment of this Act in a position at a level of assistant 
        general counsel or higher with authority delegated from the 
        Comptroller General to decide bid protests under subchapter V 
        of chapter 35 of title 31, United States Code.
    (b) Removal.--Members of the Board shall be subject to removal in 
the same manner as administrative law judges, as provided in section 
7521 of title 5, United States Code.
    (c) Compensation.--Compensation for the Chairman and all other 
members of the Board shall be determined under section 5273a of title 
5, United States Code.

SEC. 853. CHAIRMAN.

    (a) Designation.--(1) The Chairman shall be designated by the 
President to serve for a term of five years. The President shall select 
the Chairman from among sitting Board judges each of whom has had at 
least five years of service--
            (A) as a member of an agency board of contract appeals; or
            (B) in a position at a level of assistant general counsel 
        or higher with authority delegated from the Comptroller General 
        to decide bid protests under subchapter V of chapter 35 of 
        title 31, United States Code (as in effect on the day before 
        the effective date of this subtitle).
    (2) A Chairman may continue to serve after the expiration of the 
Chairman's term until a successor has taken office. A Chairman may be 
reappointed any number of times.
    (b) Responsibilities.--The Chairman shall be responsible on behalf 
of the Board for the executive and administrative operation of the 
Board, including functions of the Board with respect to the following:
            (1) The selection, appointment, and fixing of the 
        compensation of such personnel, pursuant to part III of title 
        5, United States Code, as the Chairman considers necessary or 
        appropriate, including a Clerk of the Board, a General Counsel, 
        and clerical and legal assistance for Board judges.
            (2) The supervision of personnel employed by or assigned to 
        the Board, and the distribution of work among such personnel.
            (3) The response to any request that may be made by 
        Congress or the Office of Management and Budget.
            (4) The allocation of funds among the various functions of 
        the Board.
            (5) The entering into and performance of such contracts, 
        leases, cooperative agreements, or other similar transactions 
        with public agencies and private organizations and persons, and 
        the making of such payments, as the Chairman considers 
        necessary or appropriate to carry out functions vested in the 
        Board.
            (6) The operation of an Office of the Clerk of the Board, 
        including the receipt of all filings made with the Board, the 
        assignment of cases, and the maintenance of all records of the 
        Board.
            (7) The acquisition, operation, and maintenance of such 
        automatic data processing resources as may be needed by the 
        Board.
            (8) The prescription of such rules and regulations as the 
        Chairman considers necessary or appropriate for the 
        administration and management of the Board.
    (c) Vice Chairmen.--The Chairman may designate up to four other 
Board judges as Vice Chairmen. The Chairman may divide the Board into 
two or more divisions, and, if such division is made, shall assign a 
Vice Chairman to head each division. The Vice Chairmen, in the order 
designated by the Chairman, shall act in the place and stead of the 
Chairman during the absence of the Chairman.

SEC. 854. RULEMAKING AUTHORITY.

    (a) In General.--The Board may establish--
            (1) such procedural rules and regulations as are necessary 
        to the exercise of its functions, including internal rules for 
        the assignment of cases; and
            (2) statements of policy of general applicability with 
        respect to its functions.
    (b) Prohibition on Review by Other Agency or Person.--Rules and 
regulations established by the Board (including forms which are a part 
thereof) shall not be subject to review by any other agency or person 
(including the Administrator of Information and Regulatory Affairs, 
pursuant to chapter 35 of title 44, United States Code) in advance of 
publication.

SEC. 855. LITIGATION AUTHORITY.

    Except as provided in section 518 of title 28, United States Code, 
relating to litigation before the Supreme Court, attorneys designated 
by the Chairman may appear for, and represent the Board in, any civil 
action brought in connection with any function carried out by the 
Board.

SEC. 856. SEAL OF BOARD.

    The Chairman shall cause a seal of office to be made for the Board 
of such design as the Board shall approve. Judicial notice shall be 
taken of such seal.

SEC. 857. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for fiscal year 1997 and 
each succeeding fiscal year such sums as may be necessary to carry out 
the provisions of this subtitle and to enable the Board to perform its 
functions. Funds appropriate pursuant to this section shall remain 
available until expended.

     PART III--FUNCTIONS OF UNITED STATES BOARD OF CONTRACT APPEALS

SEC. 861. ALTERNATIVE DISPUTE RESOLUTION SERVICES.

    (a) Requirement To Provide Services Upon Request.--The Board shall 
provide alternative means of dispute resolution for any disagreement 
regarding a contract or prospective contract of an executive agency 
upon the request of all parties to the disagreement.
    (b) Personnel Qualified To Act.--Each Board judge and each attorney 
employed by the Board shall be considered to be qualified to act for 
the purpose of conducting alternative means of dispute resolution under 
this section.
    (c) Services To Be Provided Without Charge.--Any services provided 
by the Board or any Board judge or employee pursuant to this section 
shall be provided without charge.
    (d) Recusal of Certain Personnel Upon Request.--In the event that a 
matter which is presented to the Board for alternative means of dispute 
resolution, pursuant to this section, later becomes the subject of 
formal proceedings before the Board, any Board judge or employee who 
was involved in the alternative means shall, if requested by any party 
to the formal proceeding, take no part in that proceeding.

SEC. 862. ALTERNATIVE DISPUTE RESOLUTION OF DISPUTES AND PROTESTS 
              SUBMITTED TO BOARD.

    With reasonable promptness after the submission to the Board of a 
contract dispute under section 863 or a bid protest under section 864, 
a Board judge to whom the contract dispute or protest is assigned shall 
request the parties to meet with a Board judge, or an attorney employed 
by the Board, for the purpose of attempting to resolve the dispute or 
protest through alternative means of dispute resolution. Formal 
proceedings in the appeal shall then be suspended until such time as 
any party or a Board judge to whom the dispute or protest is assigned 
determines that alternative means of dispute resolution are not 
appropriate for resolution of the dispute or protest.

SEC. 863. CONTRACT DISPUTES.

    The Board shall have jurisdiction as provided by section 8(a) of 
the Contract Disputes Act of 1978 (41 U.S.C. 601-613).
SEC. 864. PROTESTS.

    (a) Review Required Upon Request.--Upon request of an interested 
party in connection with any procurement conducted by any executive 
agency, the Board shall review, as provided in this section, any 
decision by a contracting officer alleged to violate a statute or 
regulation. The authority of the Board to conduct such review shall 
include the authority to review regulations to determine their 
consistency with applicable statutes. A decision or order of the Board 
pursuant to this section shall not be subject to interlocutory appeal 
or review.
    (b) Standard of Review.--In deciding a protest, the Board may 
consider all evidence that is relevant to the decision under protest. 
It shall accord a presumption of correctness to all facts found and 
determinations made by the contracting officer whose decision is being 
protested. The protester may rebut this presumption by showing, by a 
preponderance of the evidence, that a finding or determination was 
incorrect. The Board may find that a decision by a contracting officer 
violates a statute or regulation for any of the reasons stated in 
section 706(2) of title 5, United States Code.
    (c) Determination of Whether to Suspend Authority To Conduct 
Procurement in Protest Filed Before Contract Award.--(1) When a protest 
under this section is filed before the award of a contract in a 
protested procurement, the Board, at the request of an interested party 
and within 10 days after the submission of the protest, shall hold a 
hearing to determine whether the Board should suspend the authority of 
the executive agency involved (or its head) to conduct such procurement 
until the Board can decide the protest.
    (2) The Board shall suspend the authority of the executive agency 
(or its head) unless the agency concerned establishes that--
            (A) absent action by the Board, contract award is likely to 
        occur within 30 days after the hearing; and
            (B) urgent and compelling circumstances which significantly 
        affect interests of the United States will not permit waiting 
        for the decision of the Board.
    (3) A suspension under paragraph (2) shall not preclude the 
executive agency concerned from continuing the procurement process up 
to but not including award of the contract unless the Board determines 
such action is not in the best interests of the United States.
    (d) Determination of Whether to Suspend Authority To Conduct 
Procurement in Protest Filed After Contract Award.--(1) If, with 
respect to an award of a contract, the Board receives notice of a 
protest under this section within the period described in paragraph 
(2), the Board shall, at the request of an interested party, hold a 
hearing to determine whether the Board should suspend the authority of 
the executive agency involved (or its head) to conduct such procurement 
until the Board can decide the protest.
    (2) The period referred to in paragraph (1) is the period beginning 
on the date on which the contract is awarded and ending at the end of 
the later of--
            (A) the tenth day after the date of contract award; or
            (B) the fifth day after the debriefing date offered to an 
        unsuccessful offeror for any debriefing that is requested and, 
        when requested, is required.
    (3) The Board shall hold the requested hearing within 5 days after 
the date of the filing of the protest or, in the case of a request for 
debriefing, within 5 days after the later of the date of the filing of 
the protest or the date of the debriefing.
    (4) The Board shall suspend the procurement authority of the 
executive agency involved (or its head) to acquire any goods or 
services under the contract which are not previously delivered and 
accepted unless such agency establishes that urgent and compelling 
circumstances which significantly affect interests of the United States 
will not permit waiting for the decision of the Board.
    (e) Procedures.--
            (1) Proceedings and discovery.--The Board shall conduct 
        proceedings and allow such discovery as may be required for the 
        expeditious, fair, and reasonable resolution of the protest. 
        The Board shall limit discovery to material which is relevant 
        to the grounds of protest or to such affirmative defenses as 
        the executive agency involved, or any intervenor supporting the 
        agency, may raise.
            (2) Priority.--The Board shall give priority to protests 
        filed under this section over contract disputes and alternative 
        dispute services. Except as provided in paragraph (3), the 
        Board shall issue its final decision within 65 days after the 
        date of the filing of the protest, unless the Chairman 
        determines that the specific and unique circumstances of the 
        protest require a longer period, in which case the Board shall 
        issue such decision within the longer period determined by the 
        Chairman. An amendment that adds a new ground of protest should 
        be resolved, to the maximum extent practicable, within the time 
        limits established for resolution of the initial protest.
            (3) Threshold.--Any protest in which the anticipated value 
        of the contract award that will result from the protested 
        procurement, as estimated by the executive agency involved, is 
        less than $1,000,000 shall be considered under simplified rules 
        of procedure. These rules shall provide that discovery in such 
        protests shall be in writing only. Such protests shall be 
        decided by a single Board judge, whose decision shall be final 
        and conclusive and shall not be set aside except in cases of 
        fraud. The Board shall issue its final decision in each such 
        protest within 35 days after the date of the filing of the 
        protest.
            (4) Calculation of time for adr.--In calculating time for 
        purposes of paragraph (2) or (3) of this subsection, any days 
        during which proceedings are suspended for the purpose of 
        attempting to resolve the protest by alternative means of 
        dispute resolution, up to a maximum of 20 days, shall not be 
        counted.
            (5) Dismissal of frivolous protests.--The Board may dismiss 
        a protest that the Board determines is frivolous or which, on 
        its face, does not state a valid basis for protest.
            (6) Payment of costs for frivolous protests.--(A) If the 
        Board expressly finds that a protest or a portion of a protest 
        is frivolous or does not state on its face a valid basis for 
        protest, the Board shall declare that the protester or other 
        interested party who joins the protest is liable to the United 
        States for payment of the costs described in subparagraph (B) 
        unless--
                    (i) special circumstances would make such payment 
                unjust; or
                    (ii) the protester obtains documents or other 
                information after the protest is filed with the Board 
                that establishes that the protest or a portion of the 
                protest is frivolous or does not state on its face a 
                valid basis for protest, and the protester then 
                promptly withdraws the protest or portion of the 
                protest.
            (B) The costs referred to in subparagraph (A) are all of 
        the costs incurred by the United States of reviewing the 
        protest, or of reviewing that portion of the protest for which 
        the finding is made, including the fees and other expenses (as 
        defined in section 2412(d)(2)(A) of title 28, United States 
        Code) incurred by the United States in defending the protest.
    (f) Decisions and Corrective Actions on Protests.--(1) In making a 
decision on protests filed under this section, the Board shall accord 
due weight to the goals of economic and efficient procurement, and 
shall take due account of the rule of prejudicial error.
    (2) If the Board determines that a decision of a contracting 
officer violates a statute or regulation, the Board may order the 
agency (or its head) to take such corrective action as the Board 
considers appropriate. Corrective action includes requiring that the 
Federal agency--
            (A) refrain from exercising any of its options under the 
        contract;
            (B) recompete the contract immediately;
            (C) issue a new solicitation;
            (D) terminate the contract;
            (E) award a contract consistent with the requirements of 
        such statute and regulation;
            (F) implement any combination of requirements under 
        subparagraphs (A), (B), (C), (D), and (E); or
            (G) implement such other actions as the Board determines 
        necessary.
    (3) If the Board orders corrective action after the contract award, 
the affected contract shall be presumed valid as to all goods or 
services delivered and accepted under the contract before the 
corrective action was ordered.
    (4) Any agreement that provides for the dismissal of a protest and 
involves a direct or indirect expenditure of appropriated funds shall 
be submitted to the Board and shall be made a part of the public record 
(subject to any protective order considered appropriate by the Board) 
before dismissal of the protest.
    (g) Authority To Declare Entitlement to Costs.--(1)(A) Whenever the 
Board determines that a decision of a contracting officer violates a 
statute or regulation, it may, in accordance with section 1304 of title 
31, United States Code, further declare an appropriate prevailing party 
to be entitled to the costs of--
            (i) filing and pursuing the protest, including reasonable 
        attorneys' fees and consultant and expert witness fees, and
            (ii) bid and proposal preparation.
    (B) No party (other than a small business concern (within the 
meaning of section 3(a) of the Small Business Act)) may be declared 
entitled under this paragraph to costs for--
            (i) consultants and expert witness fees that exceed the 
        highest rate of compensation for expert witnesses paid by the 
        Federal Government, or
            (ii) attorneys' fees that exceed $150 per hour unless the 
        Board, on a case by case basis, determines that an increase in 
        the cost of living or a special factor, such as the limited 
        availability of qualified attorneys for the proceedings 
        involved, justifies a higher fee.
    (2) Payment of amounts due from an agency under paragraph (1) or 
under the terms of a settlement agreement under subsection (e)(4) shall 
be made from the appropriation made by section 1304 of title 31, United 
States Code, for the payment of judgments. The executive agency 
concerned shall reimburse that appropriation account out of funds 
available for the procurement.
    (h) Appeals.--Except as provided in subsection (e)(3), a final 
decision of the Board may be appealed as set forth in section 8(d)(1) 
of the Contract Disputes Act of 1978 by the head of the executive 
agency concerned and by any interested party, including interested 
parties who intervene in any protest filed under this section.
    (i) Additional Relief.--Nothing contained in this section shall 
affect the power of the Board to order any additional relief which it 
is authorized to provide under any statute or regulation.
    (j) Nonexclusivity of Remedies.--Nothing contained in this section 
shall affect the right of any interested party to file a protest with 
the contracting agency or to file an action in the United States Court 
of Federal Claims or in a United States district court.

SEC. 865. APPLICABILITY TO CONTRACTS FOR COMMERCIAL ITEMS.

    Notwithstanding section 34 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 430), the authority conferred on the Board by 
this subtitle is applicable to contracts for the procurement of 
commercial items.

 PART IV--REPEAL OF OTHER STATUTES AUTHORIZING ADMINISTRATIVE PROTESTS

SEC. 871. REPEALS.

    (a) GSBCA Provisions.--Subsection (f) of the Brooks Automatic Data 
Processing Act (section 111 of the Federal Property and Administrative 
Services Act of 1949; 40 U.S.C. 759) is repealed.
    (b) GAO Provisions.--Subchapter V of chapter 35 of title 31, United 
States Code (31 U.S.C. 3551-3556) is repealed.

 PART V--TRANSFERS AND TRANSITIONAL, SAVINGS, AND CONFORMING PROVISIONS

SEC. 881. TRANSFER AND ALLOCATION OF APPROPRIATIONS AND PERSONNEL.

    (a) Transfer.--The personnel employed in connection with, and the 
assets, liabilities, contracts, property, records, and unexpended 
balance of appropriations, authorizations, allocations, and other funds 
employed, held, used, arising from, available to, or to be made 
available in connection with the functions vested by law in the 
Comptroller General pursuant to subchapter V of chapter 35 of title 31, 
United States Code, and in the boards of contract appeals established 
pursuant to section 8 of the Contract Disputes Act of 1978 (41 U.S.C. 
607) (as in effect on the day before the effective date of this Act), 
shall be transferred to the Board for appropriate allocation by the 
Chairman.
    (b) Effect on Personnel.--Personnel transferred pursuant to this 
subtitle shall not be separated or reduced in compensation for one year 
after such transfer, except for cause.
    (c) Regulations.--(1) The Board shall prescribe regulations for the 
release of competing employees in a reduction in force that gives due 
effect to--
            (A) efficiency or performance ratings;
            (B) military preference; and
            (C) tenure of employment.
    (2) In prescribing the regulations, the Board shall provide for 
military preference in the same manner as set forth in subchapter I of 
chapter 35 of title 5, United States Code.

SEC. 882. TERMINATIONS AND SAVINGS PROVISIONS.

    (a) Termination of Boards of Contract Appeals.--On the effective 
date of this subtitle, the boards of contract appeals established 
pursuant to section 8 of the Contract Disputes Act of 1978 (41 U.S.C. 
607) (as in effect on the day before the effective date of this Act) 
shall terminate.
    (b) Savings Provision for Contract Dispute Matters Pending Before 
Boards.--The provisions of this subtitle shall not affect any 
proceedings (other than bid protests pending before the board of 
contract appeals of the General Services Administration) pending on the 
effective date of this Act before any board of contract appeals 
described in subsection (a). Such proceedings shall be continued by the 
Board, and orders which were issued in any such proceeding by any board 
of contract appeals shall continue in effect until modified, 
terminated, superseded, or revoked by the Board, by a court of 
competent jurisdiction, or by operation of law.
    (c) Bid Protest Transition Provisions.--(1) No protest may be 
submitted to the Comptroller General pursuant to section 3553(a) of 
title 31, United States Code, or to the board of contract appeals for 
the General Services Administration pursuant to the Brooks Automatic 
Data Processing Act (40 U.S.C. 759) on or after the effective date of 
this Act.
    (2) The provisions repealed by section 871 shall continue to apply 
to proceedings pending on the effective date of this subtitle before 
the board of contract appeals of the General Services Administration 
and the Comptroller General pursuant to those provisions, until the 
board or the Comptroller General determines such proceedings have been 
completed.

SEC. 883. CONTRACT DISPUTE AUTHORITY OF BOARD.

    (a) Section 2 of the Contract Disputes Act of 1978 (41 U.S.C. 601) 
is amended by striking out paragraph (6) and inserting in lieu thereof 
the following:
            ``(6) the term `Board' means the United States Board of 
        Contract Appeals; and''.
    (b) Section 6(c) of the Contract Disputes Act of 1978 (41 U.S.C. 
605(c)) is amended--
            (1) in paragraph (4)--
                    (A) by striking out ``the agency board of contract 
                appeals'' and inserting in lieu thereof ``the United 
                States Board of Contract Appeals''; and
                    (B) by striking out ``the board'' and inserting in 
                lieu thereof ``the Board''; and
            (2) in paragraph (6)--
                    (A) by striking out ``an agency board of contract 
                appeals'' and inserting in lieu thereof ``the United 
                States Board of Contract Appeals''; and
                    (B) by striking out ``agency board'' and inserting 
                in lieu thereof ``the Board''.
    (c) Section 7 of the Contract Disputes Act of 1978 (41 U.S.C. 606) 
is amended by striking out ``an agency board of contract appeals'' and 
inserting in lieu thereof ``the United States Board of Contract 
Appeals''.
    (d) Section 8 of the Contract Disputes Act of 1978 (41 U.S.C. 607) 
is amended--
            (1) by amending the heading to read as follows:

              ``united states board of contract appeals'';

            (2) by striking out subsections (a), (b), and (c);
            (3) in subsection (d)--
                    (A) by striking out the first sentence and 
                inserting in lieu thereof the following:
``The United States Board of Contract Appeals shall have jurisdiction 
to decide any appeal from a decision of a contracting officer of any 
executive agency relative to a contract made by that agency.''; and
                    (B) in the second sentence, by striking out ``the 
                agency board'' and inserting in lieu thereof ``the 
                Board'';
            (4) in subsection (e), by striking out ``An agency board'' 
        and inserting in lieu thereof ``The United States Board of 
        Contract Appeals'';
            (5) in subsection (f), by striking out ``each agency 
        board'' and inserting in lieu thereof ``the United States Board 
        of Contract Appeals'';
            (6) in subsection (g)--
                    (A) in the first sentence of paragraph (1), by 
                striking out ``an agency board of contract appeals'' 
                and inserting in lieu thereof ``the United States Board 
                of Contract Appeals'';
                    (B) by striking out paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2);
            (7) by striking out subsections (h) and (i); and
            (8) by redesignating subsections (d), (e), (f), and (g) (as 
        amended) as subsections (a), (b), (c), and (d), respectively.
    (e) Section 9 of the Contract Disputes Act of 1978 (41 U.S.C. 608) 
is amended--
            (1) in subsection (a), by striking out ``each agency 
        board'' and inserting in lieu thereof ``the United States Board 
        of Contract Appeals''; and
            (2) in subsection (b), by striking out ``the agency board'' 
        and inserting in lieu thereof ``the Board''.
    (f) Section 10 of the Contract Disputes Act of 1978 (41 U.S.C. 609) 
is amended--
            (1) in subsection (a)--
                    (A) in the first sentence of paragraph (1)--
                            (i) by striking out ``Except as provided in 
                        paragraph (2), and in'' and inserting in lieu 
                        thereof ``In''; and
                            (ii) by striking out ``an agency board'' 
                        and inserting in lieu thereof ``the United 
                        States Board of Contract Appeals'';
                    (B) by striking out paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2), and in that paragraph, by striking out ``or (2)'';
            (2) in subsection (b), by striking out ``any agency board'' 
        and ``the agency board'' and inserting in lieu of each ``the 
        Board'';
            (3) in subsection (c), by striking out ``an agency board'' 
        and ``the agency board'' and inserting in lieu of each ``the 
        Board''; and
            (4) in subsection (d), by striking out ``one or more agency 
        boards'' and ``or among the agency boards involved'' and 
        inserting in lieu of each ``the Board''.
    (g) Section 11 of the Contract Disputes Act of 1978 (41 U.S.C. 610) 
is amended--
            (1) in the first sentence, by striking out ``an agency 
        board of contract appeals'' and inserting in lieu thereof ``the 
        United States Board of Contract Appeals''; and
            (2) in the second sentence, by striking out ``the agency 
        board through the Attorney General; or upon application by the 
        board of contract appeals of the Tennessee Valley Authority'' 
        and inserting in lieu thereof ``the Board''.
    (h) Section 13 of the Contract Disputes Act of 1978 (41 U.S.C. 612) 
is amended--
            (1) in subsection (b), by striking out ``an agency board of 
        contract appeals'' and inserting in lieu thereof ``the United 
        States Board of Contract Appeals''; and
            (2) in subsection (d)(2), by striking out ``by the board of 
        contract appeals for'' and inserting in lieu thereof ``by the 
        Board from''.

SEC. 884. REFERENCES TO AGENCY BOARDS OF CONTRACT APPEALS.

    Any reference to an agency board of contract appeals in any 
provision of law or in any rule, regulation, or other paper of the 
United States shall be treated as referring to the United States Board 
of Contract Appeals.

SEC. 885. CONFORMING AMENDMENTS.

    (a) Title 5.--Section 5372a of title 5, United States Code, is 
amended--
            (1) in subsection (a)(1), by striking out ``an agency board 
        of contract appeals appointed under section 8 of the Contract 
        Disputes Act of 1978'' and inserting in lieu thereof ``the 
        United States Board of Contract Appeals'';
            (2) in subsection (a)(2), by striking out ``an agency board 
        of contract appeals established pursuant to section 8 of the 
        Contract Disputes Act of 1978'' and inserting in lieu thereof 
        ``the United States Board of Contract Appeals''; and
            (3) in subsection (b), by striking out ``an appeals board'' 
        each place it appears and inserting in lieu thereof ``the 
        appeals board''.
    (b) Title 10.--(1) Section 2305(e) of title 10, United States Code, 
is amended--
            (A) in paragraph (1), by striking out ``subchapter V of 
        chapter 35 of title 31'' and inserting in lieu thereof ``title 
        IV of the Federal Acquisition Reform Act of 1995''; and
            (B) by striking out paragraph (3).
    (2) Section 2305(f) of such title is amended--
            (A) in paragraph (1), by striking out ``in subparagraphs 
        (A) through (F) of subsection (b)(1) of section 3554 of title 
        31'' and inserting in lieu thereof ``section 424(f)(2) of the 
        Federal Acquisition Reform Act of 1995''; and
            (B) in paragraph (2), by striking out ``paragraph (1) of 
        section 3554(c) of title 31'' and inserting in lieu thereof 
        ``section 424(g)(1)(A) of the Federal Acquisition Reform Act of 
        1995''.
    (c) Federal Property and Administrative Services Act of 1949.--(1) 
Section 303B(h) of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 253b(h)) is amended--
            (A) in paragraph (1), by striking out ``subchapter V of 
        chapter 35 of title 31'' and inserting in lieu thereof ``title 
        IV of the Federal Acquisition Reform Act of 1995''; and
            (B) by striking out paragraph (3).
    (2) Section 303B(i) of such Act (41 U.S.C. 253b(i)) is amended--
            (A) in paragraph (1), by striking out ``in subparagraphs 
        (A) through (F) of subsection (b)(1) of section 3554 of title 
        31'' and inserting in lieu thereof ``section 424(f)(2) of the 
        Federal Acquisition Reform Act of 1995''; and
            (B) in paragraph (2), by striking out ``paragraph (1) of 
        section 3554(c) of title 31'' and inserting in lieu thereof 
        ``section 424(g)(1)(A) of the Federal Acquisition Reform Act of 
        1995''.

         PART VI--EFFECTIVE DATE; INTERIM APPOINTMENT AND RULES

SEC. 891. EFFECTIVE DATE.

    This subtitle shall take effect on October 1, 1996.

SEC. 892. INTERIM APPOINTMENT.

    The Board judge serving as chairman of the board of contract 
appeals of the General Services Administration on the date of the 
enactment of this Act shall serve as Chairman during the two-year 
period beginning on the effective date of this subtitle, unless such 
individual resigns such position or the position otherwise becomes 
vacant before the expiration of such period. The authority vested in 
the President by section 853 shall take effect upon the expiration of 
such two-year period or on the date such position is vacated, whichever 
occurs earlier.

SEC. 893. INTERIM RULES.

    (a) Rules of Procedure.--Until such date as the Board promulgates 
rules of procedure, the rules of procedure of the board of contract 
appeals of the General Services Administration, as in effect on the 
effective date of this Act, shall be the rules of procedure of the 
Board.
    (b) Rules Regarding Board Judges.--Until such date as the Board 
promulgates rules governing the establishment and maintenance of a 
register of eligible applicants and the selection of Board judges, the 
rules of the Armed Services Board of Contract Appeals governing the 
establishment and maintenance of a register of eligible applicants and 
the selection of board members shall be the rules of the Board 
governing the establishment and maintenance of a register of eligible 
applicants and the selection of Board judges, except that any 
provisions of the rules of the Armed Services Board of Contract Appeals 
that authorize any individual other than the chairman of such board to 
select a Board judge shall have no effect.

             Subtitle E--Effective Dates and Implementation

SEC. 895. EFFECTIVE DATE AND APPLICABILITY.

    (a) Effective Date.--Except as otherwise provided in this title, 
this title and the amendments made by this title shall take effect on 
the date of the enactment of this Act.
    (b) Applicability of Amendments.--(1) An amendment made by this 
title shall apply, in the manner prescribed in the final regulations 
promulgated pursuant to section 896 to implement such amendment, with 
respect to any solicitation that is issued, any unsolicited proposal 
that is received, and any contract entered into pursuant to such a 
solicitation or proposal, on or after the date described in paragraph 
(3).
    (2) An amendment made by this title shall also apply, to the extent 
and in the manner prescribed in the final regulations promulgated 
pursuant to section 896 to implement such amendment, with respect to 
any matter related to--
            (A) a contract that is in effect on the date described in 
        paragraph (3);
            (B) an offer under consideration on the date described in 
        paragraph (3); or
            (C) any other proceeding or action that is ongoing on the 
        date described in paragraph (3).
    (3) The date referred to in paragraphs (1) and (2) is the date 
specified in such final regulations. The date so specified shall be 
October 1, 1996, or any earlier date that is not within 30 days after 
the date on which such final regulations are published.

SEC. 896. IMPLEMENTING REGULATIONS.

    (a) Proposed Revisions.--Proposed revisions to the Federal 
Acquisition Regulation and such other proposed regulations (or 
revisions to existing regulations) as may be necessary to implement 
this title shall be published in the Federal Register not later than 
210 days after the date of the enactment of this Act.
    (b) Public Comment.--The proposed regulations described in 
subsection (a) shall be made available for public comment for a period 
of not less than 60 days.
    (c) Final Regulations.--Final regulations shall be published in the 
Federal Register not later than 330 days after the date of enactment of 
this Act.
    (d) Modifications.--Final regulations promulgated pursuant to this 
section to implement an amendment made by this title may provide for 
modification of an existing contract without consideration upon the 
request of the contractor.
    (e) Savings Provisions.--(1) Nothing in this title shall be 
construed to affect the validity of any action taken or any contract 
entered into before the date specified in the regulations pursuant to 
section 895(b)(3) except to the extent and in the manner prescribed in 
such regulations.
    (2) Except as specifically provided in this title, nothing in this 
title shall be construed to require the renegotiation or modification 
of contracts in existence on the date of the enactment of this Act.
    (3) Except as otherwise provided in this title, a law amended by 
this title shall continue to be applied according to the provisions 
thereof as such law was in effect on the day before the date of the 
enactment of this Act until--
            (A) the date specified in final regulations implementing 
        the amendment of that law (as promulgated pursuant to this 
        section); or
            (B) if no such date is specified in regulations, October 1, 
        1996.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT
SEC. 901. REORGANIZATION OF OFFICE OF THE SECRETARY OF DEFENSE.

    (a) Reorganization.--The Secretary of Defense shall carry out in 
accordance with this section a reorganization of the Office of the 
Secretary of Defense. The reorganization shall include a substantial 
streamlining and reduction in size of that office, as provided in this 
section.
    (b) Plan for Reorganization.--The Secretary shall submit to 
Congress a report setting forth a comprehensive plan by which the 
Secretary will carry out the reorganization of the Office of the 
Department of Defense required by this section. The Secretary shall 
include in the report identification of all provisions of law (or other 
congressional directives) that preclude or inhibit any proposed 
reorganization or streamlining of the Office of the Secretary of 
Defense set forth in the plan. The report shall be submitted when the 
budget of the President for fiscal year 1997 is submitted to Congress.
    (c) Content of Plan.--The plan required by subsection (b) shall 
enable the Secretary to accomplish the following:
            (1) Reduce the number of military and civilian personnel 
        assigned to, or employed in, the Office of the Secretary of 
        Defense by 25 percent over a period of four years, as required 
        by subsection (e).
            (2) Increase organizational efficiency and civilian 
        control.
            (3) Eliminate (or substantially reduce) duplication of 
        functions between the Office of the Secretary of Defense and 
        the military departments.
            (4) Eliminate (or substantially reduce) duplication of 
        functions between the Office of the Secretary of Defense and 
        the Joint Chiefs of Staff.
    (d) Development of Plan.--In developing the plan required by 
subsection (b), the Secretary shall--
            (1) reassess the appropriate function and mission of the 
        Office of the Secretary of Defense;
            (2) reassess whether the current organization of the Office 
        of the Secretary of Defense provides the most efficient and 
        effective organization to support the Secretary in carrying out 
        the Secretary's responsibilities;
            (3) examine alternative organizational structures for that 
        office and alternative allocations of functional 
        responsibilities within that office, including--
                    (A) a reduction in the number of Under Secretaries 
                of Defense;
                    (B) a reduction in the number of Deputy Assistant 
                Secretaries of Defense and Deputy Under Secretaries of 
                Defense; and
                    (C) decentralizing functions of the Office of the 
                Secretary of Defense; and
            (4) reassess the size, number, and functional allocation of 
        the Defense Agencies and other Department of Defense support 
        organizations.
    (e) Personnel Reduction.--(1) The number of military and civilian 
personnel of the Department of Defense who as of October 1, 1998, are 
assigned to, or employed in, functions in the Office of the Secretary 
of Defense (including Direct Support Activities of that Office and the 
Washington Headquarters Services of the Department of Defense) may not 
exceed 75 percent of the number of such personnel as of October 1, 
1994.
    (2) In carrying out reductions under paragraph (1), the Secretary 
may not reassign functions solely in order to evade the requirement 
contained in that paragraph.
    (f) Reduction in Number and Specification of Assistant Secretary of 
Defense Positions.--(1) Section 138 of title 10, United States Code, is 
amended--
            (A) in subsection (a), by striking out ``eleven'' and 
        inserting in lieu thereof ``nine''; and
            (B) by striking out subsection (b) and inserting in lieu 
        thereof the following:
    ``(b) The Assistant Secretaries shall perform such duties and 
exercise such powers as the Secretary of Defense may prescribe.''.
    (2) Section 5315 of title 5, United States Code, is amended by 
striking out ``(11)'' after ``Assistant Secretaries of Defense'' and 
inserting in lieu thereof ``(9)''.
    (g) Repeal of Statutory Establishment of Various OSD Positions.--
(1)(A) The following sections of chapter 4 of title 10, United States 
Code, are repealed: sections 133a, 134a, 137, 139, and 142.
    (B) The table of sections at the beginning of such chapter is 
amended by striking out the items relating to the sections specified in 
paragraph (1).
    (2) Section 1056 is amended by striking out subsection (d).
    (h) Senior Staff Floor for Specified Assistant Secretary of 
Defense.--Section 355 of the National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1540) is repealed.
    (i) Conforming Amendments to Title 10, United States Code.--Title 
10, United States Code, is amended as follows:
            (1) Section 131(b) is amended--
                    (A) by striking out paragraphs (6) and (8); and
                    (B) by redesignating paragraphs (7), (9), (10), and 
                (11), as paragraphs (6), (7), (8), and (9), 
                respectively.
            (2) Section 138(d) is amended by striking out ``the Under 
        Secretaries of Defense, and the Director of Defense Research 
        and Engineering'' and inserting in lieu thereof ``and the Under 
        Secretaries of Defense''.
            (3) Section 176(a)(3) is amended--
                    (A) by striking out ``Assistant Secretary of 
                Defense for Health Affairs'' and inserting in lieu 
                thereof ``official in the Department of Defense with 
                principal responsibility for health affairs''; and
                    (B) by striking out ``Chief Medical Director of the 
                Department of Veterans Affairs'' and inserting in lieu 
                thereof ``Under Secretary for Health of the Department 
                of Veterans Affairs''.
            (4) Section 1216(d) is amended by striking out ``Assistant 
        Secretary of Defense for Health Affairs'' and inserting in lieu 
        thereof ``official in the Department of Defense with principal 
        responsibility for health affairs''.
            (5) Section 1587(d) is amended by striking out ``Assistant 
        Secretary of Defense for Manpower and Logistics'' and inserting 
        in lieu thereof ``official in the Department of Defense with 
        principal responsibility for personnel and readiness''.
            (6) The text of section 10201 is amended to read as 
        follows:
    ``The official in the Department of Defense with responsibility for 
overall supervision of reserve component affairs of the Department of 
Defense is the official designated by the Secretary of Defense to have 
that responsibility.''.
    (j) Conforming Amendments Relating to Operational Test and 
Evaluation Authority.--Section 2399 of such title is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2)--
                            (i) by inserting ``a conventional weapons 
                        system that'' after ``means'' in the matter 
                        preceding subparagraph (A); and
                            (ii) in subparagraph (A), by striking out 
                        ``a conventional weapons system that''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(3) The Secretary of Defense shall designate an official of the 
Department of Defense to perform the duties of the position referred to 
in this section as the `designated OT&E official'.'';
            (2) in subsection (b)--
                    (A) by striking out ``Director of Operational Test 
                and Evaluation of the Department of Defense'' in 
                paragraph (1) and inserting in lieu thereof 
                ``designated OT&E official''; and
                    (B) by striking out ``Director'' each place it 
                appears in paragraphs (2) and (3) and inserting in lieu 
                thereof ``designated OT&E official'';
            (3) in subsection (c), by striking out ``Director of 
        Operational Test and Evaluation of the Department of Defense'' 
        and inserting in lieu thereof ``designated OT&E official'';
            (4) in subsection (e), by striking out ``Director'' each 
        place it appears and inserting in lieu thereof ``designated 
        OT&E official'';
            (5) by striking out subsection (g); and
            (6) by redesignating subsection (h) as subsection (g).
    (k) Other Conforming Amendment.--Section 1211(b)(2) of the National 
Defense Authorization Act for Fiscal Year 1988 and 1989 (P.L. 100-180; 
101 Stat 1155; 10 U.S.C. 167 note) is amended by striking out ``the 
Assistant Secretary of Defense for Special Operations and Low Intensity 
Conflict'' and inserting in lieu thereof ``the official designated by 
the Secretary of Defense to have principal responsibility for matters 
relating to special operations and low intensity conflict''.
SEC. 902. RESTRUCTURING OF DEPARTMENT OF DEFENSE ACQUISITION 
              ORGANIZATION AND WORKFORCE.

    (a) Restructuring Report.--Not later than March 1, 1996, the 
Secretary of Defense shall submit to Congress a report on the 
acquisition organization and workforce of the Department of Defense. 
The report shall include--
            (1) the plan described in subsection (b); and
            (2) the assessment of streamlining and restructuring 
        options described in subsection (c).
    (b) Plan for Restructuring.--(1) The Secretary shall include in the 
report under subsection (a) a plan on how to restructure the current 
acquisition organization of the Department of Defense in a manner that 
would enable the Secretary to accomplish the following:
            (A) Reduce the number of military and civilian personnel 
        assigned to, or employed in, acquisition organizations of the 
        Department of Defense by 25 percent over a period of four 
        years, as required by subsection (d).
            (B) Eliminate duplication of functions among existing 
        acquisition organizations of the Department of Defense.
            (C) Maximize opportunity for consolidation among 
        acquisition organizations of the Department of Defense to 
        reduce management overhead.
    (2) In the report, the Secretary shall also identify any statutory 
requirement or congressional directive that inhibits any proposed 
restructuring plan or reduction in the size of the defense acquisition 
organization.
    (3) In designing the plan under paragraph (1), the Secretary shall 
give full consideration to the process efficiencies expected to be 
achieved through the implementation of the Federal Acquisition 
Streamlining Act of 1994 (Public Law 103-355) and other ongoing 
initiatives to increase the use of commercial practices and reduce 
contract overhead in the defense procurement system.
    (c) Assessment of Specified Restructuring Options.--The Secretary 
shall include in the report under subsection (a) a detailed assessment 
of each of the following options for streamlining and restructuring the 
existing defense acquisition organization, together with a specific 
recommendation as to whether each such option should be implemented:
            (1) Consolidation of certain functions of the Defense 
        Contract Audit Agency and the Defense Contract Management 
        Command.
            (2) Contracting for performance of a significant portion of 
        the workload of the Defense Contract Audit Agency and other 
        Defense Agencies that perform acquisition functions.
            (3) Consolidation or selected elimination of Department of 
        Defense acquisition organizations.
            (4) Any other defense acquisition infrastructure 
        streamlining or restructuring option the Secretary may 
        determine.
    (d) Reduction of Acquisition Workforce.--(1) Effective as of 
October 1, 1998, the total number of defense acquisition personnel may 
not exceed 75 percent of the total number of defense acquisition 
personnel as of October 1, 1994.
    (2) In carrying out paragraph (1), the Secretary of Defense shall 
exempt personnel who possess technical competence in trade-skill 
maintenance and repair positions involved in performing depot 
maintenance functions for the Department of Defense.
    (3) In carrying out paragraph (1), the Secretary of Defense shall 
accomplish reductions in defense acquisition personnel positions during 
fiscal year 1996 so that the total number of such personnel as of 
October 1, 1996, is less than the total number of such personnel as of 
October 1, 1995, by at least 30,000.
    (4) For purposes of this section, the term ``defense acquisition 
personnel'' means military and civilian personnel of the Department of 
Defense assigned to, or employed in, acquisition organizations of the 
Department of Defense.
    (e) Acquisition Organization Defined.--For purposes of this 
section, acquisition organizations of the Department of Defense are 
those organizations specified in Department of Defense Instruction 
Numbered 5000.58, dated January 14, 1992.
SEC. 903. PLAN FOR INCORPORATION OF DEPARTMENT OF ENERGY NATIONAL 
              SECURITY FUNCTIONS IN DEPARTMENT OF DEFENSE.

    (a) Report Required.--The Secretary of Defense shall submit to 
Congress a report setting forth the Secretary's plan for the 
incorporation into the Department of Defense of the national security 
programs of the Department of Energy. The plan submitted shall be one 
which could be implemented if the Department of Energy is abolished and 
the national security programs of that department are transferred to 
the Department of Defense and consolidated with programs of the 
Department of Defense.
    (b) Matters To Be Included.--The plan submitted in the report under 
subsection (a) shall include the following:
            (1) A detailed plan for the integration into the Department 
        of Defense of the offices and laboratories of the Department of 
        Energy which could be anticipated to be transferred to the 
        Department of Defense as part of such a transfer of functions.
            (2) An assessment of the personnel end-strength reductions 
        estimated to be achieved as a result of such a transfer of 
        functions.
            (3) An assessment of costs, or savings, associated with the 
        various transfer of function options.
            (4) An identification of all applicable provisions of law 
        that may inhibit or preclude such a transfer of functions.
    (c) Preservation of Integrity of DOE National Security Programs.--
In developing the plan under subsection (a), the Secretary shall make 
every effort to ensure that the mission and functioning of the national 
security programs of the Department of Energy are not unduly affected 
adversely during the transfer of those functions to the Department of 
Defense and the consolidation of those functions into activities of the 
Department.
    (d) Submission Of Report.--The report required under subsection (a) 
shall be submitted not later than February 1, 1996.

SEC. 904. CHANGE IN TITLES OF CERTAIN MARINE CORPS GENERAL OFFICER 
              BILLETS RESULTING FROM REORGANIZATION OF THE 
              HEADQUARTERS, MARINE CORPS.

    (a) Headquarters, Marine Corps, Function; Composition.--Subsection 
(b) of section 5041 of title 10, United States Code, is amended by 
striking out paragraphs (2) through (5) and inserting in lieu thereof 
the following:
            ``(2) The Vice Commandant of the Marine Corps.
            ``(3) The Director of the Marine Corps Staff.
            ``(4) The Deputy Commandants of the Marine Corps.
            ``(5) The Assistant Commandants of the Marine Corps.''.
    (b) Vice Commandant.--(1) Section 5044 of such title is amended by 
striking out ``Assistant Commandant'' each place it appears and 
inserting in lieu thereof ``Vice Commandant''.
    (2) The heading of such section is amended to read as follows:
``Sec. 5044. Vice Commandant of the Marine Corps''.
    (c) Director of the Marine Corps Staff; Deputy and Assistant 
Commandants.--Section 5045 of such title is amended to read as follows:
``Sec. 5045. Director of the Marine Corps Staff; Deputy and Assistant 
              Commandants
    ``(a) There are in the Headquarters, Marine Corps, the following:
            ``(1) A Director of the Marine Corps Staff.
            ``(2) Not more than five Deputy Commandants of the Marine 
        Corps.
            ``(3) Not more than three Assistant Commandants of the 
        Marine Corps.
    ``(b) The officers specified in subsection (a) shall be detailed by 
the Secretary of the Navy from officers on the active-duty list of the 
Marine Corps.''.
    (d) Clerical Amendment.--The items relating to sections 5044 and 
5045 in the table of sections at the beginning of chapter 506 of such 
title are amended to read as follows:

``5044. Vice Commandant of the Marine Corps.
``5045. Director of the Marine Corps Staff; Deputy and Assistant 
                            Commandants.''.
SEC. 905. INCLUSION OF INFORMATION RESOURCES MANAGEMENT COLLEGE IN THE 
              NATIONAL DEFENSE UNIVERSITY.

    (a) Technical Amendment and Addition of Information Resources 
Management College to the Definition of the National Defense 
University.--Section 1595(d)(2) of title 10, United States Code, is 
amended by striking out ``the Institute for National Strategic Study,'' 
and inserting in lieu thereof ``the Institute for National Strategic 
Studies, the Information Resources Management College,''.
    (b) Conforming Amendment.--Section 2162(d)(2) of such title is 
amended by inserting ``the Institute for National Strategic Studies, 
the Information Resources Management College,'' after ``the Armed 
Forces Staff College,''.

SEC. 906. EMPLOYMENT OF CIVILIANS AT THE ASIA-PACIFIC CENTER FOR 
              SECURITY STUDIES.

    Section 1595 of title 10, United States Code, is amended--
            (1) in subsection (c), by adding at the end the following 
        new paragraph:
            ``(4) The Asia-Pacific Center for Security Studies.''; and
            (2) by adding at the end the following new subsection:
    ``(f) Application to Director and Deputy Director at Asia-Pacific 
Center for Security Studies.--In the case of the Asia-Pacific Center 
for Security Studies, this section also applies with respect to the 
Director and the Deputy Director.''.

SEC. 907. CONTINUED OPERATION OF UNIFORMED SERVICES UNIVERSITY OF THE 
              HEALTH SCIENCES.

    (a) Closure Prohibited.--In light of the important role of the 
Uniformed Services University of the Health Sciences in providing 
trained health care providers for the uniformed services, Congress 
reaffirms the requirement contained in section 922 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat 2829) that the Uniformed Services University of the Health 
Sciences may not be closed.
    (b) Budgetary Commitment to Continuation.--It is the sense of 
Congress that the Secretary of Defense should budget for the operation 
of the Uniformed Services University of the Health Sciences during 
fiscal year 1997 at a level at least equal to the level of operations 
conducted at the University during fiscal year 1995.
SEC. 908. REDESIGNATION OF ADVANCED RESEARCH PROJECTS AGENCY.

    (a) Redesignation.--The agency in the Department of Defense known 
as the Advanced Research Projects Agency shall after the date of the 
enactment of this Act be designated as the Defense Advanced Research 
Projects Agency.
    (b) References.--Any reference in any law, regulation, document, 
record, or other paper of the United States to the Advanced Research 
Projects Agency shall be considered to be a reference to the Defense 
Advanced Research Projects Agency.
SEC. 909. NAVAL NUCLEAR PROPULSION PROGRAM.

    No department or agency may regulate or direct any change in 
function for facilities under the Naval Nuclear Propulsion Program 
unless otherwise permitted or specified by law.
SEC. 910. AVIATION TESTING CONSOLIDATION.

    (a) Limitation.--The Secretary of the Army may not consolidate the 
Aviation Technical Test Center, Fort Rucker, Alabama, with any other 
aviation testing facility until 60 days after the date on which a 
report containing the results of the evaluation of such consolidation 
described in subsection (b) is received by the congressional defense 
committees.
    (b) Independent Evaluation.--The Secretary of the Army shall 
provide for an evaluation by the Institute for Defense Analyses (a 
Federal contract research center) of the proposal of the Test and 
Evaluation Command of the Army to relocate the Aviation Technical Test 
Center to Yuma Proving Ground, Arizona. The evaluation of such proposal 
shall include consideration of the following:
            (1) A review and validation of studies conducted by the 
        Army Materiel Command and the Army Test and Evaluation Command 
        of the proposed relocation.
            (2) The effect on, and cost of, maintenance and logistics 
        capability (including maintenance of a parts inventory) to 
        support the test evaluation fleet.
            (3) The availability of facilities and infrastructure 
        necessary to conduct the aviation testing mission at Yuma 
        Proving Ground.
            (4) The availability of engineers and maintenance 
        technicians to support the aviation testing mission at Yuma 
        Proving Ground.
            (5) The effect on current and planned aircraft programs.
            (6) Consistency with the efforts of the Army to become the 
        Department of Defense leader for rotary-wing aircraft.
            (7) Potential savings, including the time period over which 
        such savings could be realized.
            (8) Comparison of live-fire testing with computer-simulated 
        testing.
    (c) Time Requirement for Completion of Evaluation.--The evaluation 
under subsection (b) shall be completed not later than 120 days after 
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 1996 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.
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. 1530 of the One Hundred Fourth 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. IMPROVED FUNDING MECHANISMS FOR UNBUDGETED OPERATIONS.

    (a) Revision of Funding Mechanism.--(1) Chapter 3 of title 10, 
United States Code, is amended by striking out section 127a and 
inserting in lieu thereof the following:
``Sec. 127a. Operations for which funds are not provided in advance: 
              funding mechanisms
    ``(a) In General.--(1) The Secretary of Defense shall use the 
procedures prescribed by this section with respect to any operation of 
the Department of Defense--
            ``(A) that involves the deployment (other than for a 
        training exercise) of elements of the armed forces for a 
        purpose other than a purpose for which funds have been 
        specifically provided in advance; or
            ``(B) that involves humanitarian assistance, disaster 
        relief, or support for law enforcement (including immigration 
        control) for which funds have not been specifically provided in 
        advance.
    ``(2) Whenever any operation described in paragraph (1) is 
commenced, the Secretary of Defense shall designate and identify that 
operation for the purposes of this section and shall promptly notify 
Congress of that designation (and of the identification of the 
operation).
    ``(3) This section does not provide authority for the President or 
the Secretary of Defense to carry out any operation, but establishes 
mechanisms for the Department of Defense by which funds are provided 
for operations that the armed forces are required to carry out under 
some other authority.
    ``(b) Waiver of Requirement To Reimburse Support Units.--(1) The 
Secretary of Defense shall direct that, when a unit of the armed forces 
participating in an operation described in subsection (a) receives 
services from an element of the Department of Defense that operates 
through the Defense Business Operations Fund (or a successor fund), 
such unit of the armed forces may not be required to reimburse that 
element for the incremental costs incurred by that element in providing 
such services, notwithstanding any other provision of law or any 
Government accounting practice.
    ``(2) The amounts which but for paragraph (1) would be required to 
be reimbursed to an element of the Department of Defense (or a fund) 
shall be recorded as an expense attributable to the operation and shall 
be accounted for separately.
    ``(c) Transfer Authority.--(1) Whenever there is an operation of 
the Department of Defense described in subsection (a), the Secretary of 
Defense may, subject to the provisions of appropriations Acts, transfer 
amounts described in paragraph (3) to accounts from which incremental 
expenses for that operation were incurred in order to reimburse those 
accounts for those incremental expenses. Amounts so transferred shall 
be merged with and be available for the same purposes as the accounts 
to which transferred.
    ``(2) The total amount that the Secretary of Defense may transfer 
under the authority of this section in any fiscal year is $200,000,000.
    ``(3) Transfers under this subsection may only be made from amounts 
appropriated to the Department of Defense for any fiscal year that 
remain available for obligation from any of the following accounts:
            ``(A) Environmental Restoration, Defense.
            ``(B) Cooperative Threat Reduction programs.
            ``(C) Overseas Humanitarian, Disaster, and Civic Aid 
        (OHDACA) programs.
            ``(D) Operations and Maintenance, Defense-Wide (but only 
        from funds available for administration and service-wide 
        activities).
    ``(4) The authority provided by this subsection is in addition to 
any other authority provided by law authorizing the transfer of amounts 
available to the Department of Defense. However, the Secretary may not 
use any such authority under another provision of law for a purpose 
described in paragraph (1) if there is authority available under this 
subsection for that purpose.
    ``(5) The authority provided by this subsection to transfer amounts 
may not be used to provide authority for an activity that has been 
denied authorization by Congress.
    ``(6) A transfer made from one account to another under the 
authority of this subsection 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) Financial Plan.--(1) Within 30 days after the beginning of an 
operation described in subsection (a), the Secretary of Defense shall 
submit to Congress a financial plan for the operation that sets forth 
the manner by which the Secretary proposes to obtain funds for the cost 
to the United States of the operation. The plan shall specify in detail 
how the Secretary proposes to restore balances in the Defense Business 
Operations Fund (or a successor fund) to the levels that would have 
been anticipated but for the provisions of subsection (b). The 
Secretary may not include in such a plan a means to restore such 
balances that is prohibited by paragraph (2) or (4).
    ``(2) The Secretary may not restore (or propose in a plan under 
paragraph (1) to restore) balances in the Defense Business Operations 
Fund through increases in rates charged by that fund in order to 
compensate for costs incurred and not reimbursed due to subsection (b).
    ``(3) If the Secretary of Defense transfers funds under subsection 
(c), the Secretary shall submit to Congress, within 30 days of such 
transfer, a plan for the restoration of the balance in the each account 
from which the transfer was made to the level that would have been the 
case but for the transfer.
    ``(4) The Secretary may not restore (or propose in a plan under 
paragraph (1) or (3) to restore) balances in any the Defense Business 
Operations Fund or any other fund or account through the use of 
unobligated amounts in an appropriation made for operation and 
maintenance that are available within that appropriation for an account 
(known as a budget activity 1 account) that is specified as being for 
operating forces.
    ``(e) Submission of Requests for Supplemental Appropriations.--(1) 
Whenever there is an operation described in subsection (a), the 
President shall submit to Congress a request for the enactment of 
supplemental appropriations for the then-current fiscal year, to be 
designated as an emergency supplemental appropriations, in order to 
provide funds to replenish the Defense Business Operations Fund or any 
other fund or account of the Department of Defense from which funds for 
the incremental expenses of that operation were derived under this 
section.
    ``(2) A request under paragraph (1) shall be submitted not later 
than the earlier of (A) the time at which incremental expenses for the 
operation exceed $10,000,000, or (B) 90 days after the date on which 
the operation begins. The request shall be submitted as a separate 
request from any other legislative proposal.
    ``(f) Incremental Costs.--For purposes of this section, incremental 
costs of the Department of Defense with respect to an operation are the 
costs of the Department that are directly attributable to the operation 
(and would not have been incurred but for the operation).
    ``(g) Relationship to War Powers Resolution.--This section may not 
be construed as altering or superseding the War Powers Resolution. This 
section does not provide authority to conduct any military operation.
    ``(h) GAO Compliance Reviews.--The Comptroller General of the 
United States shall from time to time, and when requested by a 
committee of Congress, conduct a review of the defense funding 
structure under this section to determine whether the Department of 
Defense is complying with the requirements and limitations of this 
section.
``Sec. 127b. Budgeting for ongoing operations
    ``(a) Requirement for Inclusion in Budget.--In the case of an 
operation of the Department of Defense described in subsection (c), the 
President shall include with the budget submitted to Congress pursuant 
to section 1105 of title 31 for the next fiscal year a specific request 
for enactment of legislation to provide for the provision of funds for 
such operation for that fiscal year in a manner that will result in 
there not being a lower amount of funds available to the Department of 
Defense for that fiscal year than would be the case if that operation 
were not carried out during that year. Such a request shall include one 
or more of the following:
            ``(1) A request for enactment of appropriation of funds for 
        the incremental costs for that operation that are expected to 
        be incurred by the Department of Defense during the fiscal year 
        for which the budget is submitted, with such funds to be 
        provided in, and charged to, a budget function other than the 
        national defense budget function (function 050).
            ``(2) A request for enactment of appropriation of funds for 
        the incremental costs for that operation that are expected to 
        be incurred by the Department of Defense during the fiscal year 
        for which the budget is submitted, with such designations or 
        waivers as may be necessary to ensure that (if enacted) such 
        appropriations are not counted against the total amount of 
        funds for the Department of Defense, or for the national 
        defense budget function, for purpose of any statutory 
        limitation or restriction.
            ``(3) A request for enactment of rescissions.
    ``(b) Limitation.--In the case of any operation to which the 
requirement of subsection (a) applies, no funds may be obligated or 
expended for that operation after the beginning of the fiscal year for 
which the budget is submitted if the requirement in subsection (a) is 
not complied with.
    ``(c) Covered Operations.--This section applies with respect to any 
operation of the Department of Defense involving the use of the Armed 
Forces that--
            ``(1) is ongoing in the first quarter of a fiscal year;
            ``(2) is not expected to end during the current fiscal 
        year;
            ``(3) for which appropriations were not specifically 
        provided in advance for the current fiscal year.
    ``(d) Waiver Authority.--The President may waive the provisions of 
this section for any fiscal year--
            ``(1) during which there is in effect a declaration of war; 
        or
            ``(2) during which authority is in effect pursuant to 
        section 12302 of this title to order units and members of the 
        Ready Reserve to active duty without the consent of the persons 
        concerned.''.
    (2) The table of sections at the beginning of such chapter is 
amended by striking out the item relating to section 127a and inserting 
in lieu thereof the following:

``127a. Operations for which funds are not provided in advance: funding 
                            mechanisms.
``127b. Budgeting for ongoing operations.''.
    (b) Effective Date.--The amendment to section 127a of title 10, 
United States Code, made by subsection (a) shall take effect on October 
1, 1995, and shall apply to any operation of the Department of Defense, 
whether begun before, on, or after such date. In the case of any 
operation begun before such date, any reference in such section to the 
date of the beginning of such operation shall be treated as referring 
to the effective date under the preceding sentence.
SEC. 1004. DESIGNATION AND LIABILITY OF DISBURSING AND CERTIFYING 
              OFFICIALS.

    (a) Disbursing Officials.--(1) Section 3321(c) of title 31, United 
States Code, is amended by striking out paragraph (2) and inserting in 
lieu thereof the following:
            ``(2) The Department of Defense.
            ``(3) The Coast Guard (when not operating as a service in 
        the Navy).''.
    (2) Section 2773 of title 10, United States Code, is amended--
            (A) in subsection (a)--
                    (i) by striking out ``With the approval of the 
                Secretary of a military department when the Secretary 
                considers it necessary, a disbursing official of the 
                military department'' and inserting in lieu thereof 
                ``Subject to paragraph (3), a disbursing official of 
                the Department of Defense''; and
                    (ii) by adding at the end the following new 
                paragraph:
    ``(3) A disbursing official may make a designation under paragraph 
(1) only with the approval of the Secretary of Defense or, in the case 
of a disbursing official of a military department, the Secretary of 
that military department.''; and
            (B) in subsection (b)(1)--
                    (i) by striking out ``any military department'' and 
                inserting in lieu thereof ``the Department of 
                Defense''; and
                    (ii) by striking out ``2d month'' and inserting in 
                lieu thereof ``second month''.
    (b) Designation of Members of the Armed Forces To Have Authority To 
Certify Vouchers.--(1) Section 3325(b) of title 31, United States Code, 
is amended to read as follows:
    ``(b) In addition to officers and employees referred to in 
subsection (a)(1)(B) of this section as having authorization to certify 
vouchers, 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 authorize, in writing, members of the armed forces 
under their jurisdiction to certify vouchers.''.
    (2) Section 3528(d) of title 31, United States Code, is repealed.
    (c) Relief of Accountable Officials and Agents From Liability.--
Section 3527(b)(1) of title 31, United States Code, is amended--
            (1) by striking out ``armed forces'' in the matter 
        preceding subparagraph (A) and inserting in lieu thereof 
        ``Department of Defense or the Coast Guard''; and
            (2) in subparagraph (A), by striking out ``appropriate 
        Secretary of the military department of the Department of 
        Defense'' and inserting in lieu thereof ``Secretary of 
        Transportation (with respect to the Coast Guard when it is not 
        operating as a service in the Navy)''.
    (d) Conforming Amendments.--(1) Section 1012 of title 37, United 
States Code, is amended by striking out ``Secretary concerned'' both 
places it appears and inserting in lieu thereof ``Secretary of 
Defense''.
    (2)(A) Section 7863 of title 10, United States Code, is amended--
            (i) in the first sentence, by striking out ``disbursements 
        of public moneys or'' and ``the money was paid or''; and
            (ii) in the second sentence, by striking out ``disbursement 
        or''.
    (B)(i) The heading of such section is amended to read as follows:
``Sec. 7863. Disposal of public stores by order of commanding 
              officer''.
    (ii) The item relating to such section in the table of sections at 
the beginning of chapter 661 of such title is amended to read as 
follows:

``7863. Disposal of public stores by order of commanding officer.''.
SEC. 1005. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED FISCAL YEAR 
              1995 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 1995 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 1995 defense appropriations that 
are in excess of the amounts provided for such programs, projects, and 
activities in fiscal year 1995 defense authorizations.
    (c) Definitions.--For the purposes of this section:
            (1) Fiscal year 1995 defense appropriations.--The term 
        ``fiscal year 1995 defense appropriations'' means amounts 
        appropriated or otherwise made available to the Department of 
        Defense for fiscal year 1995 in the Department of Defense 
        Appropriations Act, 1995 (Public Law 103-335).
            (2) Fiscal year 1995 defense authorizations.--The term 
        ``fiscal year 1995 defense authorizations'' means amounts 
        authorized to be appropriated for the Department of Defense for 
        fiscal year 1995 in the National Defense Authorization Act for 
        Fiscal Year 1995 (Public Law 103-337).
SEC. 1006. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS 
              FOR FISCAL YEAR 1995.

    (a) Adjustment to Previous Authorizations.--Amounts authorized to 
be appropriated to the Department of Defense for fiscal year 1995 in 
the National Defense Authorization Act for Fiscal Year 1995 (Public Law 
103-337) 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 title I of the Emergency 
Supplemental Appropriations and Rescissions for the Department of 
Defense to Preserve and Enhance Military Readiness Act of 1995 (Public 
Law 104-6).
    (b) New Authorization.--The appropriation provided in section 104 
of such Act is hereby authorized.
SEC. 1007. PROHIBITION OF INCREMENTAL FUNDING OF PROCUREMENT ITEMS.

    Section 114 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f)(1) No funds may be appropriated, or authorized to be 
appropriated, for any fiscal year for a purpose named in paragraph (1), 
(3), (4), or (5) of subsection (a) using incremental funding.
    ``(2) In the budget submitted by the President for any fiscal year, 
the President may not request appropriations, or authorization of 
appropriations, on the basis of incremental funding for a purpose 
specified in paragraph (1).
    ``(3) In this subsection, the term `incremental funding' means the 
provision of funds for a fiscal year for a procurement in less than the 
full amount required for procurement of a complete and usable product, 
with the expectation (or plan) for additional funding to be made for 
subsequent fiscal years to complete the procurement of a complete and 
usable product.
    ``(4) This subsection does not apply with respect to funding 
classified as advance procurement funding.''.
                Subtitle B--Naval Vessels and Shipyards
SEC. 1021. CONTRACT OPTIONS FOR LMSR VESSELS.

    (a) Findings.--Congress makes the following findings:
            (1) A requirement for the Department of the Navy to acquire 
        19 large, medium-speed, roll-on/roll-off (LMSR) vessels was 
        established by the Secretary of Defense in the Mobility 
        Requirements Study conducted after the Persian Gulf War 
        pursuant to section 909 of the National Defense Authorization 
        Act for Fiscal Year 1991 (Public law 101-510; 104 Stat. 1623) 
        and was revalidated by the Secretary of Defense in the report 
        entitled ``Mobility Requirements Study Bottom-Up Review 
        Update'', submitted to Congress in April 1995.
            (2) The Strategic Sealift Program is a vital element of the 
        national military strategy calling for the Nation to be able to 
        fight and win two nearly simultaneous major regional 
        contingencies.
            (3) The Secretary of the Navy has entered into contracts 
        with shipyards covering acquisition of a total of 17 such LMSR 
        vessels, of which five are vessel conversions and 12 are new 
        construction vessels. Under those contracts, the Secretary has 
        placed orders for the acquisition of 11 vessels and has options 
        for the acquisition of six more, all of which would be new 
        construction vessels. The options allow the Secretary to place 
        orders for one vessel to be constructed at each of two 
        shipyards for award before December 31, 1995, December 31, 
        1996, and December 31, 1997, respectively.
            (4) Acquisition of an additional two such LMSR vessels, for 
        a total of 19 vessels (the requirement described in paragraph 
        (1)) would contribute to preservation of the industrial base of 
        United States shipyards capable of building auxiliary and 
        sealift vessels.
    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of the Navy should plan for, and budget to provide for, the 
acquisition as soon as possible of a total of 19 large, medium-speed, 
roll-on/roll-off (LMSR) vessels (the number determined to be required 
in the Mobility Requirements Study referred to in subsection (a)(1)), 
rather than only 17 such vessels (the number of vessels under contract 
as of May 1995).
    (c) Additional New Construction Contract Option.--The Secretary of 
the Navy should negotiate with each of the two shipyards holding new 
construction contracts referred to in subsection (a)(3) (Department of 
the Navy contracts numbered N00024-93-C-2203 and N00024-93-C-2205) for 
an option under each such contract for construction of one additional 
such LMSR vessel, with such option to be available to the Secretary for 
exercise during 1995, 1996, or 1997.
    (d) Report.--The Secretary of the Navy shall submit to the 
congressional defense committees, by March 31, 1996, a report stating 
the intentions of the Secretary regarding the acquisition of options 
for the construction of two additional LMSR vessels as described in 
subsection (c).
SEC. 1022. VESSELS SUBJECT TO REPAIR UNDER PHASED MAINTENANCE 
              CONTRACTS.

    (a) In General.--(1) Chapter 633 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 7315. Phased maintenance contracts: vessels covered
    ``In any case in which the Secretary of the Navy enters into a 
contract for the phased maintenance of a class of vessels or vessels of 
an identified type, the Secretary shall ensure that--
            ``(1) any vessel that is covered by the contract when it is 
        entered into remains covered by the contract, regardless of 
        operating command to which the vessel is subsequently assigned, 
        unless the vessel is taken out of service for the Department of 
        the Navy; and
            ``(2) any vessel of a class or type covered by the contract 
        that is delivered to the Navy while the contract is in effect 
        is covered by the contract.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``7315. Phased maintenance contracts: vessels covered.''.
  (b) Effective Date.--Section 7315 of title 10, United States Code, as 
added by subsection (a), shall apply with respect to contracts entered 
into after the date of the enactment of this Act.
SEC. 1023. CLARIFICATION OF REQUIREMENTS RELATING TO REPAIRS OF 
              VESSELS.

    Section 7310(a) of title 10, United States Code, is amended by 
inserting ``or Guam'' after ``the United States'' the second place it 
appears.
SEC. 1024. NAMING OF NAVAL VESSEL.

    It is the sense of Congress that the Secretary of the Navy should 
name an appropriate ship of the United States Navy the U.S.S. Joseph 
Vittori, in honor of Marine Corporal Joseph Vittori (1929-1951) of 
Beverly, Massachusetts, who was posthumously awarded the Medal of Honor 
for actions against the enemy in Korea on September 15-16, 1951.
SEC. 1025. TRANSFER OF RIVERINE PATROL CRAFT.

    (a) Authority To Transfer Vessel.--Notwithstanding subsections (a) 
and (d) of section 7306 of title 10, United States Code, but subject to 
subsections (b) and (c) of that section, the Secretary of the Navy may 
transfer a vessel described in subsection (b) to Tidewater Community 
College, Portsmouth, Virginia, for scientific and educational purposes.
    (b) Vessel.--The authority under subsection (a) applies in the case 
of a riverine patrol craft of the U.S.S. Swift class.
    (c) Limitation.--The transfer authorized by subsection (a) may be 
made only if the Secretary determines that the vessel to be transferred 
is of no further use to the United States for national security 
purposes.
    (d) Terms and Conditions.--The Secretary may require such terms and 
conditions in connection with the transfer authorized by this section 
as the Secretary considers appropriate.

                       Subtitle C--Other Matters
SEC. 1031. TERMINATION AND MODIFICATION OF AUTHORITIES REGARDING 
              NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE 
              REINVESTMENT, AND DEFENSE CONVERSION PROGRAMS.

    (a) Congressional Defense Policy.--Section 2501 of title 10, United 
States Code, is amended--
            (1) in subsection (a), by striking out paragraph (5); and
            (2) in subsection (b)--
                    (A) by striking out ``Defense Reinvestment, 
                Diversification, and Conversion'' in the subsection 
                heading and inserting in lieu thereof ``Technology 
                Development for National Security'';
                    (B) by striking out ``, during a period of 
                reduction in defense expenditures,'' in the matter 
                preceding paragraph (1);
                    (C) by striking out ``of reinvestment, 
                diversification, and conversion of defense resources'' 
                in the matter preceding paragraph (1); and
                    (D) in paragraph (5), by striking out ``defense 
                economic reinvestment'' and inserting in lieu thereof 
                ``economic investment''.
    (b) National Defense Technology and Industrial Base Council.--
Section 2502(c) of such title is amended--
            (1) in paragraph (1)(B), by striking out ``, during a 
        period of reduction in defense expenditures, the defense 
        reinvestment, diversification, and conversion objectives'' and 
        inserting in lieu thereof ``the objectives'';
            (2) by striking out paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph (2).
    (c) Modification of Defense Dual-Use Critical Technology 
Partnerships Program.--(1) Subsection (a) of section 2511 of such title 
is amended--
            (A) by striking out ``Partnerships'' in the subsection 
        heading and inserting in lieu thereof ``Program'';
            (B) in the first sentence, by striking out ``, by providing 
        for the establishment'' and all that follows through 
        ``encourage and provide'' and inserting in lieu thereof ``by 
        encouraging and providing'';
            (C) in the second sentence, by striking out ``in order to 
        establish the partnerships'' and inserting in lieu thereof ``in 
        furtherance of the program''; and
            (D) by adding at the end the following new sentence: ``The 
        Secretary shall identify projects to be conducted as part of 
        the program.''.
    (2) Such section is further amended by striking out subsections 
(b), (c), and (d) and inserting in lieu thereof the following new 
subsection:
    ``(b) Assistance Authorized.--The Secretary of Defense may provide 
technical and other assistance to facilitate the achievement of the 
purposes of projects conducted under the program. In providing such 
assistance, the Secretary may make available, as appropriate for the 
work to be performed, equipment and facilities of Department of Defense 
laboratories (including the scientists and engineers at those 
laboratories) for purposes of projects selected by the Secretary.''.
    (3) Such section is further amended--
            (A) by redesignating subsections (e), (f), and (g), as 
        subsections (c), (d), and (e), respectively;
            (B) in subsection (c), as so redesignated, by striking out 
        ``establishment of partnerships'' and inserting in lieu thereof 
        ``conduct of the program''; and
            (C) in subsection (d), as so redesignated--
                    (i) by striking out ``proposed partnerships for 
                establishment under this section'' in the matter 
                preceding paragraph (1) and inserting in lieu thereof 
                ``projects under the program'';
                    (ii) in paragraphs (1) and (2), by striking out 
                ``program proposed to be conducted by the partnership'' 
                both places it appears and inserting in lieu thereof 
                ``proposed project'';
                    (iii) in paragraph (3), by striking out 
                ``partnership's'' and inserting in lieu thereof 
                ``proposed project's''; and
                    (iv) in paragraphs (4) through (7), by striking out 
                ``partnership'' each place it appears and inserting in 
                lieu thereof ``project''.
    (d) Repeal of Commercial-Military Integration Partnerships 
Program.--Section 2512 of such title is repealed.
    (e) Repeal of Regional Technology Alliances Assistance Program.--
Section 2513 of such title is repealed.
    (f) Military-Civilian Integration and Technology Transfer Advisory 
Board.--Section 2516(b) of such title is amended--
            (1) by inserting ``and'' at the end of paragraph (2);
            (2) by striking out ``; and'' at the end of paragraph (3) 
        and inserting in lieu thereof a period; and
            (3) by striking out paragraph (4).
    (g) Federal Defense Laboratory Diversification Program.--Section 
2519 of such title is amended--
            (1) in subsection (b), by striking out ``referred to in 
        section 2511(b) of this title'';
            (2) in subsection (d)--
                    (A) by striking out ``(1)'' before ``The Secretary 
                shall''; and
                    (B) by striking out paragraph (2); and
            (3) in subsection (f), by striking out ``section 2511(f)'' 
        and inserting in lieu thereof ``section 2511(d)''.
    (h) Repeal of Navy Reinvestment Program.--Section 2520 of such 
title is repealed.
    (i) Repeal of National Defense Manufacturing Technology Program.--
Section 2521 of such title is repealed.
    (j) Repeal of Defense Advanced Manufacturing Technology 
Partnerships Program.--Section 2522 of such title is repealed.
    (k) Repeal of Manufacturing Extension Program.--Section 2523 of 
such title is repealed.
    (l) Repeal of Defense Dual-Use Assistance Extension Program.--
Section 2524 of such title is repealed.
    (m) Clerical Amendments.--(1) The heading of section 2511 of such 
title is amended to read as follows:
``Sec. 2511. Defense dual-use critical technology program''.
    (2) The table of sections at the beginning of subchapter III of 
chapter 148 of such title is amended--
            (A) by striking out the item relating to section 2511 and 
        inserting in lieu thereof the following new item:

``2511. Defense dual-use critical technology program.''; and
            (B) by striking out the items relating to sections 2512, 
        2513, and 2520.
    (3) The table of sections at the beginning of subchapter IV of such 
chapter is amended by striking out the items relating to sections 2521, 
2522, 2523, and 2524.
SEC. 1032. REPEAL OF MISCELLANEOUS PROVISIONS OF LAW.

    (a) Volunteers Investing in Peace and Security Program.--(1) 
Chapter 89 of title 10, United States Code, is repealed.
    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part II of subtitle A, of such title are amended by 
striking out the item relating to chapter 89.
    (b) Security and Control of Supplies.--(1) Chapter 171 of such 
title is repealed.
    (2) The tables of sections 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 171.
    (c) Annual Authorization of Military Training Student Loads.--
Section 115 of such title is amended--
            (1) in subsection (a), by striking out paragraph (3);
            (2) in subsection (b)--
                    (A) by inserting ``or'' at the end of paragraph 
                (1);
                    (B) by striking out ``; or'' at the end of 
                paragraph (2) and inserting in lieu thereof a period; 
                and
                    (C) by striking out paragraph (3); and
            (3) by striking out subsection (f).
    (d) Portions of Annual Manpower Requirements Report.--Section 115a 
of such title is amended--
            (1) in subsection (b)(2), by striking out subparagraph (C);
            (2) by striking out subsection (d);
            (3) by redesignating subsection (e) as subsection (d) and 
        striking out paragraphs (4) and (5) thereof;
            (4) by striking out subsection (f); and
            (5) by redesignating subsection (g) as subsection (e).
    (e) Obsolete Authority for Payment of Stipends for Members of 
Certain Advisory Committees and Boards of Visitors of Service 
Academies.--(1) The second sentence of each of sections 173(b) and 
174(b) of such title is amended to read as follows: ``Other members and 
part-time advisers shall (except as otherwise specifically authorized 
by law) serve without compensation for such service.''.
    (2) Sections 4355(h), 6968(h), and 9355(h) of such title are 
amended by striking out ``is entitled to not more than $5 a day and''.
    (f) Annual Budget Information Concerning Recruiting Costs.--(1) 
Section 227 of such title is repealed.
    (2) The table of sections at the beginning of chapter 9 of such 
title is amended by striking out the item relating to section 227.
    (g) Expired Authority Relating to Peacekeeping Activities.--(1) 
Section 403 of such title is repealed.
    (2) The table of sections at the beginning of subchapter I of 
chapter 20 of such title is amended by striking out the item relating 
to section 403.
    (h) Management Training Program in Japanese Language and Culture.--
(1) Section 2198 of such title is repealed.
    (2) The table of sections at the beginning of chapter 111 of such 
title is amended by striking out the item relating to section 2198.
    (i) Procurement of Gasohol for Department of Defense Motor 
Vehicles.--(1) Subsection (a) of section 2398 of such title is 
repealed.
    (2) Such section is further amended--
            (A) by redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively; and
            (B) in subsection (b), as so redesignated, by striking out 
        ``subsection (b)'' and inserting in lieu thereof ``subsection 
        (a)''.
    (j) Requirement of Notice of Certain Disposals and Gifts by 
Secretary of Navy.--Section 7545 of such title is amended by striking 
out subsection (c).
    (k) Annual Report on Biological Defense Research Program.--(1) 
Section 2370 of such title is repealed.
    (2) The table of sections at the beginning of chapter 139 of such 
title is amended by striking out the item relating to such section.
    (l) Reports and Notifications Relating to Chemical and Biological 
Agents.--(1) Subsection (a) of section 409 of Public Law 91-121 (50 
U.S.C. 1511) is repealed.
    (2) Subsection (b) of such section (50 U.S.C. 1512) is amended--
            (A) by inserting ``and'' at the end of paragraph (2);
            (B) by striking out ``; and'' at the end of paragraph (3) 
        and inserting in lieu thereof a period; and
            (C) by striking out paragraph (4).
    (3) Subsection (c) of such section (50 U.S.C. 1513) is amended by 
striking out the second sentence of paragraph (1).
    (m) Provision Giving Permanent Status to Executive Order Relating 
to Naval Nuclear Propulsion Program.--Section 1634 of the Department of 
Defense Authorization, 1985 (Public Law 98-525; 98 Stat. 2649; 42 
U.S.C. 7158 note), is repealed.
    (n) Annual Report on Balanced Technology Initiative.--Subsection 
(e) of section 211 of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1394) is repealed.
    (o) Obsolete Authority Regarding Anniston Army Depot, Alabama.--
Section 352 of the National Defense Authorization Act for Fiscal Year 
1991 (Public Law 101-510; 104 Stat. 1539) is repealed.
    (p) Report on Environmental Restoration Costs for Installations To 
Be Closed Under 1990 Base Closure Law.--Section 2827 of the National 
Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
102-190; 10 U.S.C. 2687 note) is amended by striking out subsection 
(b).
    (q) Limitation on American Diplomatic Facilities in Germany.--
Section 1432 of the National Defense Authorization Act for Fiscal Year 
1994 (Public Law 103-160; 107 Stat. 1833) is repealed.
    (r) Requirement Relating to Athletic Director of Naval Academy.--
Section 556(b) of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2774) (including the section 
of title 10, United States Code, added by that section effective 
January 1, 1996, and the table of sections item added by that section) 
is repealed.
SEC. 1033. POLICY CONCERNING EXCESS DEFENSE INDUSTRIAL CAPACITY.

    (a) Findings.--Congress finds as follows:
            (1) The Base Closure and Realignment Commissions have 
        recommended that certain Government-owned defense industrial 
        facilities which produce goods and services that were required 
        during the Cold War, but which are no longer required for the 
        national security, be closed.
            (2) The Secretary of Defense has determined that the 
        maintenance of certain other Government-owned defense 
        industrial facilities is necessary to support the research, 
        development, and manufacture of goods and services that are 
        still required to protect the security of the United States.
            (3) These Government-owned defense industrial facilities 
        are critical to the security of the Nation and should remain 
        under Government control.
            (4) Current work requirements at some of these Government-
        owned defense industrial facilities have fallen below a 
        reasonably economic level of operation, increasing the cost of 
        producing required goods and services.
            (5) Existing law and policy have failed to address 
        adequately the supplemental requirements necessary to operate 
        these Government-owned defense industrial facilities in a cost-
        efficient manner and, thereby, to maintain appropriate 
        readiness for future national security needs.
            (6) The security interests of the United States would be 
        served by the establishment under law of a policy that requires 
        the best-value operation of Government-owned defense industrial 
        facilities.
            (7) Such a policy should include, but not necessarily be 
        limited to, requirements that--
                    (A) the required capability and capacity not being 
                fully used at such Government-owned facilities be 
                maintained with separate funding so as to stabilize 
                operational costs; and
                    (B) those facilities not be limited by workyear/end 
                strength hiring constraints.
    (b) Prohibition.--No funds appropriated pursuant to an 
authorization of appropriations in this Act may be used for capital 
investment in, or the development and construction of, a Government-
owned, Government-operated defense industrial facility unless the 
Secretary of Defense certifies to the Congress that no similar 
capability or minimally used capacity exists in any other Government-
owned, Government-operated defense industrial facility.
SEC. 1034. ROTC ACCESS TO CAMPUSES.

    (a) In General.--Chapter 49 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 983. Institutions of higher education that prohibit Senior ROTC 
              units: denial of Department of Defense grants and 
              contracts
    ``(a) Denial of Department of Defense Grants and Contracts.--(1) No 
funds appropriated or otherwise available to the Department of Defense 
may be made obligated by contract or by grant (including a grant of 
funds to be available for student aid) to any institution of higher 
education that, as determined by the Secretary of Defense, has an anti-
ROTC policy and at which, as determined by the Secretary, the Secretary 
would otherwise maintain or seek to establish a unit of the Senior 
Reserve Officer Training Corps or at which the Secretary would 
otherwise enroll or seek to enroll students for participation in a unit 
of the Senior Reserve Officer Training Corps at another nearby 
institution of higher education.
    ``(2) In the case of an institution of higher education that is 
ineligible for Department of Defense grants and contracts by reason of 
paragraph (1), the prohibition under that paragraph shall cease to 
apply to that institution upon a determination by the Secretary that 
the institution no longer has an anti-ROTC policy.
    ``(b) Notice of Determination.--Whenever the Secretary makes a 
determination under subsection (a) that an institution has an anti-ROTC 
policy, or that an institution previously determined to have an anti-
ROTC policy no longer has such a policy, the Secretary--
            ``(1) shall transmit notice of that determination to the 
        Secretary of Education and to the Committee on Armed Services 
        of the Senate and the Committee on National Security of the 
        House of Representatives; and
            ``(2) shall publish in the Federal Register notice of that 
        determination and of the effect of that determination under 
        subsection (a)(1) on the eligibility of that institution for 
        Department of Defense grants and contracts.
    ``(c) Semiannual Notice in Federal Register.--The Secretary shall 
publish in the Federal Register once every six months a list of each 
institution of higher education that is currently ineligible for 
Department of Defense grants and contracts by reason of a determination 
of the Secretary under subsection (a).
    ``(d) Anti-ROTC Policy.--In this section, the term `anti-ROTC 
policy' means a policy or practice of an institution of higher 
education that--
            ``(1) prohibits, or in effect prevents, the Secretary of 
        Defense from maintaining or establishing a unit of the Senior 
        Reserve Officer Training Corps at that institution, or
            ``(2) prohibits, or in effect prevents, a student at that 
        institution from enrolling in a unit of the Senior Reserve 
        Officer Training Corps at another institution of higher 
        education.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``983. Institutions of higher education that prohibit Senior ROTC 
                            units: denial of Department of Defense 
                            grants and contracts.''.
SEC. 1035. APPLICATION OF BUY AMERICAN ACT PRINCIPLES.

    (a) Reinstatement of Principles.--(1) If the Secretary of Defense, 
after consultation with the United States Trade Representative, 
determines that a foreign country which is party to an agreement 
described in paragraph (2) has violated the terms of the agreement by 
discriminating against certain types of products produced in the United 
States that are covered by the agreement, the Secretary of Defense 
shall rescind the Secretary's blanket waiver of the Buy American Act 
with respect to such types of products produced in that foreign 
country.
    (2) An agreement referred to in paragraph (1) is any reciprocal 
defense procurement memorandum of understanding, between the United 
States and a foreign country pursuant to which the Secretary of Defense 
has prospectively waived the Buy American Act for certain products in 
that country.
    (b) Report.--The Secretary of Defense shall submit to Congress a 
report on the amount of Department of Defense purchases from foreign 
entities in fiscal year 1996. Such report shall separately indicate the 
dollar value of items for which the Buy American Act was waived 
pursuant to any agreement described in subsection (a)(2), the Trade 
Agreement Act of 1979 (19 U.S.C. 2501 et seq.), or any international 
agreement to which the United States is a party.
    (c) Definition.--For purposes of this section, the term ``Buy 
American Act'' means title III of the Act entitled ``An Act making 
appropriations for the Treasury and Post Office Departments for the 
fiscal year ending June 30, 1934, and for other purposes'', approved 
March 3, 1933 (41 U.S.C. 10a et seq.).
  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).
    (b) Specified Programs.--The programs referred to in subsection (a) 
are the following:
            (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, 
        weapons components, and weapons-related technology and 
        expertise.
            (4) Programs to expand military-to-military and defense 
        contacts.

SEC. 1102. FISCAL YEAR 1996 AUTHORIZATION.

    Of the amount authorized in section 301 for Cooperative Threat 
Reduction programs, not more than the following amounts shall be 
available for the purposes specified:
            (1) $50,000,000 for elimination of Russian strategic 
        offensive weapons.
            (2) $20,000,000 for elimination of Ukraine strategic 
        nuclear weapons.
            (3) $15,000,000 for elimination of Kazakhstan strategic 
        nuclear weapons.
            (4) $5,000,000 for elimination of Belarus strategic nuclear 
        weapons.
            (5) $6,000,000 for design of a storage facility for Russian 
        fissile material.
            (6) $42,500,000 for weapons security in Russia.
            (7) $35,000,000 for nuclear infrastructure elimination in 
        Ukraine, Belarus, and Kazakhstan.
            (8) $10,000,000 for activities designated as Defense and 
        Military Contacts/General Support/Training in Russia, Ukraine, 
        Belarus, and Kazakhstan.
            (9) $16,500,000 for activities designated as Other 
        Assessments/Support.

SEC. 1103. REPEAL OF DEMILITARIZATION ENTERPRISE FUND AUTHORITY.

    Section 1204 of the Cooperative Threat Reduction Act of 1993 (title 
XII of Public Law 103-160; 22 U.S.C. 5953) is repealed.

SEC. 1104. PROHIBITION ON USE OF FUNDS FOR PEACEKEEPING EXERCISES AND 
              RELATED ACTIVITIES WITH RUSSIA.

    None of the funds appropriated pursuant to the authorization in 
section 301 for Cooperative Threat Reduction programs may be obligated 
or expended for the purpose of conducting with Russia any peacekeeping 
exercise or other peacekeeping-related activity.

SEC. 1105. REVISION TO AUTHORITY FOR ASSISTANCE FOR WEAPONS 
              DESTRUCTION.

    Section 211(b) of Public Law 102-228 (105 Stat. 1694) is amended by 
striking out ``committed to'' in the matter preceding paragraph (1).

SEC. 1106. PRIOR NOTICE TO CONGRESS OF OBLIGATION OF FUNDS.

    (a) Annual Requirement.--(1) Not less than 15 days before any 
obligation of any funds appropriated for any fiscal year for a program 
specified under section 1101 as a Cooperative Threat Reduction program, 
the Secretary of Defense shall submit to the congressional committees 
specified in paragraph (2) a report on that proposed obligation for 
that program for that fiscal year.
    (2) The congressional committees referred to in paragraph (1) are 
the following:
            (A) The Committee on Armed Services, the Committee on 
        Foreign Relations, and the Committee on Appropriations of the 
        Senate.
            (B) The Committee on National Security, the Committee on 
        International Relations, and the Committee on Appropriations of 
        the House of Representatives.
    (b) Matters To Be Specified in Reports.--Each such report shall 
specify--
            (1) the activities and forms of assistance for which the 
        Secretary of Defense plans to obligate funds;
            (2) the amount of the proposed obligation; and
            (3) the projected involvement (if any) of any department or 
        agency of the United States (in addition to the Department of 
        Defense) and of the private sector of the United States in the 
        activities and forms of assistance for which the Secretary of 
        Defense plans to obligate such funds.
SEC. 1107. REPORT ON ACCOUNTING FOR UNITED STATES ASSISTANCE.

    (a) Report.--(1) The Secretary of Defense shall submit to Congress 
an annual report on the efforts made by the United States (including 
efforts through the use of audits, examinations, and on-site 
inspections) to ensure that assistance provided under Cooperative 
Threat Reduction programs is fully accounted for and that such 
assistance is being used for its intended purposes.
    (2) A report shall be submitted under this section not later than 
January 31 of each year until the Cooperative Threat Reduction programs 
are completed.
    (b) Information To Be Included.--Each report under this section 
shall include the following:
            (1) A list of cooperative threat reduction assistance that 
        has been provided before the date of the report.
            (2) A description of the current location of the assistance 
        provided and the current condition of such assistance.
            (3) A determination of whether the assistance has been used 
        for its intended purpose.
            (4) A description of the activities planned to be carried 
        out during the next fiscal year to ensure that cooperative 
        threat reduction assistance provided during that fiscal year is 
        fully accounted for and is used for its intended purpose.
    (c) Comptroller General Assessment.--Not later than 30 days after 
the date on which a report of the Secretary under subsection (a) is 
submitted to Congress, the Comptroller General of the United States 
shall submit to Congress a report giving the Comptroller General's 
assessment of the report and making any recommendations that the 
Comptroller General considers appropriate.
SEC. 1108. LIMITATION ON COOPERATIVE THREAT REDUCTION PROGRAM RELATING 
              TO OFFENSIVE BIOLOGICAL WEAPONS PROGRAM IN RUSSIA.

    None of the funds appropriated pursuant to the authorization in 
section 301 for Cooperative Threat Reduction programs may be obligated 
or expended for programs or activities with Russia unless and until the 
President submits to Congress a certification in writing that Russia 
has terminated its offensive biological weapons program.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                  Subtitle A--Peacekeeping Provisions
SEC. 1201. LIMITATION ON EXPENDITURE OF DEPARTMENT OF DEFENSE FUNDS FOR 
              UNITED STATES FORCES PLACED UNDER UNITED NATIONS COMMAND 
              OR CONTROL.

    (a) In General.--(1) Chapter 20 of title 10, United States Code, is 
amended by inserting after section 404 the following new section:
``Sec. 405. Placement of United States forces under United Nations 
              command or control: limitation
    ``(a) Limitation.--Except as provided in subsections (b) and (c), 
funds appropriated or otherwise made available for the Department of 
Defense may not be obligated or expended for activities of any element 
of the Armed Forces that after the date of the enactment of this 
section is placed under United Nations command or control, as defined 
in subsection (f).
    ``(b) Exception for Presidential Certification.--(1) Subsection (a) 
shall not apply in the case of a proposed placement of an element of 
the Armed Forces under United Nations command or control if the 
President, not less than 15 days before the date on which such United 
Nations command or control is to become effective (or as provided in 
paragraph (2)), meets the requirements of subsection (d).
    ``(2) If the President certifies to Congress that an emergency 
exists that precludes the President from meeting the requirements of 
subsection (d) 15 days before placing an element of the Armed Forces 
under United Nations command or control, the President may place such 
forces under such command or control and meet the requirements of 
subsection (d) in a timely manner, but in no event later than 48 hours 
after such command or control becomes effective.
    ``(c) Additional Exceptions.--
            ``(1) Exception for authorization by law.--Subsection (a) 
        shall not apply in the case of a proposed placement of any 
        element of the Armed Forces under United Nations command or 
        control if the Congress specifically authorizes by law that 
        particular placement of United States forces under United 
        Nations command or control.
            ``(2) Exception for nato operations.--Subsection (a) shall 
        not apply in the case of a proposed placement of any element of 
        the armed forces in an operation conducted by the North 
        Atlantic Treaty Organization.
    ``(d) Presidential Certifications.--The requirements referred to in 
subsection (b)(1) are that the President submit to Congress the 
following:
            ``(1) Certification by the President that--
                    ``(A) such a United Nations command or control 
                arrangement is necessary to protect national security 
                interests of the United States;
                    ``(B) the commander of any unit of the Armed Forces 
                proposed for placement under United Nations command or 
                control will at all times retain the right--
                            ``(i) to report independently to superior 
                        United States military authorities; and
                            ``(ii) to decline to comply with orders 
                        judged by the commander to be illegal, 
                        militarily imprudent, or beyond the mandate of 
                        the mission to which the United States agreed 
                        with the United Nations, until such time as 
                        that commander receives direction from superior 
                        United States military authorities with respect 
                        to the orders that the commander has declined 
                        to comply with;
                    ``(C) any element of the Armed Forces proposed for 
                placement under United Nations command or control will 
                at all times remain under United States administrative 
                command for such purposes as discipline and evaluation; 
                and
                    ``(D) the United States will retain the authority 
                to withdraw any element of the Armed Forces from the 
                proposed operation at any time and to take any action 
                it considers necessary to protect those forces if they 
                are engaged.
            ``(2) A report setting forth the following:
                    ``(A) A description of the national security 
                interests that require the placement of United States 
                forces under United Nations command or control.
                    ``(B) The mission of the United States forces 
                involved.
                    ``(C) The expected size and composition of the 
                United States forces involved.
                    ``(D) The incremental cost to the United States of 
                participation in the United Nations operation by the 
                United States forces which are proposed to be placed 
                under United Nations command or control.
                    ``(E) The precise command and control relationship 
                between the United States forces involved and the 
                United Nations command structure.
                    ``(F) The precise command and control relationship 
                between the United States forces involved and the 
                commander of the United States unified command for the 
                region in which those United States forces are to 
                operate.
                    ``(G) The extent to which the United States forces 
                involved will rely on non-United States forces for 
                security and self-defense and an assessment on the 
                ability of those non-United States forces to provide 
                adequate security to the United States forces involved.
                    ``(H) The timetable for complete withdrawal of the 
                United States forces involved.
    ``(e) Classification of Report.--A report under subsection (d) 
shall be submitted in unclassified form and, if necessary, in 
classified form.
    ``(f) United Nations Command or Control.--For purposes of this 
section, an element of the Armed Forces shall be considered to be 
placed under United Nations command or control if--
            ``(1) that element is under the command or operational 
        control of an individual acting on behalf of the United Nations 
        for the purpose of international peacekeeping, peacemaking, 
        peace-enforcing, or similar activity that is authorized by the 
        Security Council under chapter VI or VII of the Charter of the 
        United Nations; and
            ``(2) the senior military commander of the United Nations 
        force or operation--
                    ``(A) is a foreign national or is a citizen of the 
                United States who is not a United States military 
                officer serving on active duty; or
                    ``(B) is a United States military officer serving 
                on active duty but--
                            ``(i) that element of the armed forces is 
                        under the command or operational control of a 
                        subordinate commander who is a foreign national 
                        or a citizen of the United States who is not a 
                        United States military officer serving on 
                        active duty; and
                            ``(ii) that senior military commander does 
                        not have the authority--
                                    ``(I) to dismiss any subordinate 
                                officer in the chain of command who is 
                                exercising command or operational 
                                control over United States forces and 
                                who is a foreign national or a citizen 
                                of the United States who is not a 
                                United States military officer serving 
                                on active duty;
                                    ``(II) to establish rules of 
                                engagement for United States forces 
                                involved; and
                                    ``(III) to establish criteria 
                                governing the operational employment of 
                                United States forces involved.
    ``(g) Interpretation.--Nothing in this section may be construed--
            ``(1) as authority for the President to use any element of 
        the armed forces in any operation;
            ``(2) as authority for the President to place any element 
        of the armed forces under the command or operational control of 
        a foreign national; or
            ``(3) as an unconstitutional infringement on the authority 
        of the President as commander-in-chief.''.
    (2) The table of sections at the beginning of subchapter I of such 
chapter is amended by adding at the end the following new item:

``405. Placement of United States forces under United Nations command 
                            or control: limitation.''.
    (b) Report Relating to Constitutionality.--No certification may be 
submitted by the President under section 405(d)(1) of title 10, United 
States Code, as added by subsection (a), until the President has 
submitted to the Congress (after the date of the enactment of this Act) 
a memorandum of legal points and authorities explaining why the 
placement of elements of United States Armed Forces under the command 
or operational control of a foreign national acting on behalf of the 
United Nations does not violate the Constitution.
    (c) Exception for Ongoing Operations in Macedonia and Croatia.--
Section 405 of title 10, United States Code, as added by subsection 
(a), does not apply in the case of activities of the Armed Forces as 
part of the United Nations force designated as the United Nations 
Protection Force (UNPROFOR) that are carried out--
            (1) in Macedonia pursuant to United Nations Security 
        Council Resolution 795, adopted December 11, 1992, and 
        subsequent reauthorization Resolutions; or
            (2) in Croatia pursuant to United Nations Security Council 
        Resolution 743, adopted February 21, 1992, and subsequent 
        reauthorization Resolutions.
SEC. 1202. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS FOR UNITED 
              STATES SHARE OF COSTS OF UNITED NATIONS PEACEKEEPING 
              ACTIVITIES.

    (a) In General.--(1) Chapter 20 of title 10, United States Code, is 
amended by inserting after section 405, as added by section 1201, the 
following new section:
``Sec. 406. Use of Department of Defense funds for United States share 
              of costs of United Nations peacekeeping activities: 
              limitation
    ``(a) Prohibition on Use of Funds.--Funds available to the 
Department of Defense may not be used to make a financial contribution 
(directly or through another department or agency of the United States) 
to the United Nations--
            ``(1) for the costs of a United Nations peacekeeping 
        activity; or
            ``(2) for any United States arrearage to the United 
        Nations.
    ``(b) Application of Prohibition.--The prohibition in subsection 
(a) applies to voluntary contributions, as well as to contributions 
pursuant to assessment by the United Nations for the United States 
share of the costs of a peacekeeping activity.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 405, as added 
by section 1201, the following new item:

``406. Use of Department of Defense funds for United States share of 
                            costs of United Nations peacekeeping 
                            activities: limitation.''.
    (b) Effective Date.--Section 406 of title 10, United States Code, 
as added by subsection (a), shall take effect on October 1, 1995.

              Subtitle B--Humanitarian Assistance Programs

SEC. 1211. OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID PROGRAMS.

    For purposes of section 301 and other provisions of this Act, 
programs of the Department of Defense designated as Overseas 
Humanitarian, Disaster, and Civic Aid (OHDACA) programs are the 
programs provided by sections 401, 402, 404, 2547, and 2551 of title 
10, United States Code.
SEC. 1212. HUMANITARIAN ASSISTANCE.

    Section 2551 of title 10, United States Code is amended--
            (1) by striking out subsections (b) and (c);
            (2) by redesignating subsection (d) as subsection (b);
            (3) by striking out subsection (e) and inserting in lieu 
        thereof the following:
    ``(c) Status Reports.--(1) The Secretary of Defense shall submit to 
the congressional committees specified in subsection (f) an annual 
report on the provision of humanitarian assistance pursuant to this 
section for the prior fiscal year. The report shall be submitted each 
year at the time of the budget submission by the President for the next 
fiscal year.
    ``(2) Each report required by paragraph (1) shall cover all 
provisions of law that authorize appropriations for humanitarian 
assistance to be available from the Department of Defense for the 
purposes of this section.
    ``(3) Each report under this subsection shall set forth the 
following information regarding activities during the previous fiscal 
year:
            ``(A) The total amount of funds obligated for humanitarian 
        relief under this section.
            ``(B) The number of scheduled and completed transportation 
        missions for purposes of providing humanitarian assistance 
        under this section.
            ``(C) A description of any transfer of excess nonlethal 
        supplies of the Department of Defense made available for 
        humanitarian relief purposes under section 2547 of this title. 
        The description shall include the date of the transfer, the 
        entity to whom the transfer is made, and the quantity of items 
        transferred.'';
            (4) by redesignating subsection (f) as subsection (d) and 
        in that subsection striking out ``the Committees on'' and all 
        that follows through ``House of Representatives of the'' and 
        inserting in lieu thereof ``the congressional committees 
        specified in subsection (f) and the Committees on 
        Appropriations of the Senate and House of Representatives of 
        the'';
            (5) by redesignating subsection (g) as subsection (e); and
            (6) by adding at the end the following new subsection:
    ``(f) Congressional Committees.--The congressional committees 
referred to in subsections (c)(1) and (d) are the following:
            ``(1) The Committee on Armed Services and the Committee on 
        Foreign Relations of the Senate.
            ``(2) The Committee on National Security and the Committee 
        on International Relations of the House of Representatives.''.
SEC. 1213. LANDMINE CLEARANCE PROGRAM.

    (a) Inclusion in General Humanitarian Assistance Program.--
Subsection (e) of section 401 of title 10, United States Code, is 
amended--
            (1) by striking out ``means--'' and inserting in lieu 
        thereof ``means:'';
            (2) by revising the first word in each of paragraphs (1) 
        through (4) so that the first letter of such word is upper 
        case;
            (3) by striking out the semicolon at the end of paragraphs 
        (1) and (2) and inserting in lieu thereof a period;
            (4) by striking out ``; and'' at the end of paragraph (3) 
        and inserting in lieu thereof a period; and
            (5) by adding at the end the following new paragraph:
            ``(5) Detection and clearance of landmines, including 
        activities relating to the furnishing of education, training, 
        and technical assistance with respect to the detection and 
        clearance of landmines.''.
    (b) Limitation on Landmine Assistance by Members of Armed Forces.--
Subsection (a) of such section is amended by adding at the end the 
following new paragraph:
    ``(4) The Secretary of Defense shall ensure that no member of the 
armed forces, while providing assistance under this section that is 
described in subsection (e)(5)--
            ``(A) engages in the physical detection, lifting, or 
        destroying of landmines (unless the member does so for the 
        concurrent purpose of supporting a United States military 
        operation); or
            ``(B) provides such assistance as part of a military 
        operation that does not involve the armed forces.''.
    (c) Repeal.--Section 1413 of the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2913; 10 U.S.C. 401 
note) is repealed.

                       Subtitle C--Other Matters

SEC. 1221. REVISION OF DEFINITION OF LANDMINE FOR PURPOSES OF LANDMINE 
              EXPORT MORATORIUM.

    Section 1423(d)(3) of the National Defense Authorization Act for 
Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1831) is amended by 
striking out ``by remote control or'' .
 SEC. 1222. EXTENSION AND AMENDMENT OF COUNTERPROLIFERATION 
              AUTHORITIES.

    (a) One-Year Extension of Program.--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 (a), by striking out ``during fiscal 
        years 1994 and 1995'';
            (2) in subsection (e)(1), by striking out ``fiscal years 
        1994 and 1995'' and inserting in lieu thereof ``a fiscal year 
        during which the authority of the Secretary of Defense to 
        provide assistance under this section is in effect''; and
            (3) by adding at the end the following new subsection:
    ``(f) Termination of Authority.--The authority of the Secretary of 
Defense to provide assistance under this section terminates at the 
close of fiscal year 1996.''.
    (b) Program Authorities.--(1) Subsections (b)(2) and (d)(3) of such 
section are amended by striking out ``the On-Site Inspection Agency'' 
and inserting in lieu thereof ``the Department of Defense''.
    (2) Subsection (c)(3) of such section is amended by striking out 
``will be counted'' and all that follows and inserting in lieu thereof 
``will be counted as discretionary spending in the national defense 
budget function (function 050).''.
    (c) Amount of Assistance.--Subsection (d) of such section is 
amended--
            (1) in paragraph (1)--
                    (A) by striking out ``for fiscal year 1994'' the 
                first place it appears and all that follows through the 
                period at the end of the second sentence and inserting 
                in lieu thereof ``for any fiscal year shall be derived 
                from amounts made available to the Department of 
                Defense for that fiscal year.''; and
                    (B) by striking out ``referred to in this 
                paragraph''; and
            (2) in paragraph (3)--
                    (A) by striking out ``may not exceed'' and all that 
                follows through ``1995''; and
                    (B) by inserting before the period at the end the 
                following: ``, may not exceed $25,000,000 for fiscal 
                year 1994, $20,000,000 for fiscal year 1995, or 
                $15,000,000 for fiscal year 1996''.
SEC. 1223. PROHIBITION ON USE OF FUNDS FOR ACTIVITIES ASSOCIATED WITH 
              THE UNITED STATES-PEOPLE'S REPUBLIC OF CHINA JOINT 
              DEFENSE CONVERSION COMMISSION.

    Funds appropriated to the Department of Defense for fiscal year 
1996 may not be obligated or expended for any activity associated with 
the United States-People's Republic of China Joint Defense Conversion 
Commission.
SEC. 1224. DEFENSE EXPORT LOAN GUARANTEES.

    (a) Establishment of Program.--(1) Chapter 148 of title 10, United 
States Code, is amended by adding at the end the following new 
subchapter:
            ``SUBCHAPTER VI--DEFENSE EXPORT LOAN GUARANTEES
``Sec.
``2540. Establishment of loan guarantee program.
``2540a. Transferability.
``2540b. Limitations.
``2540c. Fees charged and collected.
``2540d. Definitions.
``Sec. 2540. Establishment of loan guarantee program
    ``(a) Establishment.--In order to meet the national security 
objectives in section 2501(a) of this title, the Secretary of Defense 
shall establish a program under which the Secretary may issue 
guarantees assuring a lender against losses of principal or interest, 
or both principal and interest, arising out of the financing of the 
sale or long-term lease of defense articles, defense services, or 
design and construction services to a country referred to in subsection 
(b).
    ``(b) Covered Countries.--The authority under subsection (a) 
applies with respect to the following countries:
            ``(1) A member nation of the North Atlantic Treaty 
        Organization (NATO).
            ``(2) A country designated as of March 31, 1995, as a major 
        non-NATO ally pursuant to section 2350a(i)(3) of this title.
            ``(3) A country that was a member nation of the Asia 
        Pacific Economic Cooperation (APEC) as of March 31, 1995.
    ``(c) Authority Subject to Provisions of Appropriation Acts.--The 
Secretary may guarantee a loan under this subchapter only to such 
extent or in such amounts as may be provided in advance in 
appropriations Acts.
``Sec. 2540a. Transferability
    ``A guarantee issued under this subchapter shall be fully and 
freely transferable.
``Sec. 2540b. Limitations
    ``(a) Terms and Conditions of Loan Guarantees.--In issuing a 
guarantee under this subchapter for a medium-term or long-term loan, 
the Secretary may not offer terms and conditions more beneficial than 
those that would be provided to the recipient by the Export-Import Bank 
of the United States under similar circumstances in conjunction with 
the provision of guarantees for nondefense articles and services.
    ``(b) Losses Arising From Fraud or Misrepresentation.--No payment 
may be made under a guarantee issued under this subchapter for a loss 
arising out of fraud or misrepresentation for which the party seeking 
payment is responsible.
    ``(c) No Right of Acceleration.--The Secretary of Defense may not 
accelerate any guaranteed loan or increment, and may not pay any 
amount, in respect of a guarantee issued under this subchapter, other 
than in accordance with the original payment terms of the loan.
``Sec. 2540c. Fees charged and collected
    ``(a) In General.--The Secretary of Defense shall charge a fee 
(known as `exposure fee') for each guarantee issued under this 
subchapter.
    ``(b) Amount.--To the extent that the cost of the loan guarantees 
under this subchapter is not otherwise provided for in appropriations 
Acts, the fee imposed under this section with respect to a loan 
guarantee shall be fixed in an amount sufficient to meet potential 
liabilities of the United States under the loan guarantee.
    ``(c) Payment Terms.--The fee for each guarantee shall become due 
as the guarantee is issued. In the case of a guarantee for a loan which 
is disbursed incrementally, and for which the guarantee is 
correspondingly issued incrementally as portions of the loan are 
disbursed, the fee shall be paid incrementally in proportion to the 
amount of the guarantee that is issued.
``Sec. 2540d. Definitions
    ``In this subchapter:
            ``(1) The terms `defense article', `defense services', and 
        `design and construction services' have the meanings given 
        those terms in section 47 of the Arms Export Control Act (22 
        U.S.C. 2794).
            ``(2) The term `cost', with respect to a loan guarantee, 
        has the meaning given that term in section 502 of the 
        Congressional Budget and Impoundment Control Act of 1974 (2 
        U.S.C. 661a).''.
    (2) The table of subchapters at the beginning of such chapter is 
amended by adding at the end the following new item:

``VI. Defense Export Loan Guarantees........................    2540''.
    (b) Report.--Not later than two years after the date of the 
enactment of this Act, the President shall submit to Congress a report 
on the loan guarantee program established pursuant to section 2540 of 
title 10, United States Code, as added by subsection (a). The report 
shall include--
            (1) an analysis of the costs and benefits of the loan 
        guarantee program; and
            (2) any recommendations for modification of the program 
        that the President considers appropriate, including--
                    (A) any recommended addition to the list of 
                countries for which a guarantee may be issued under the 
                program; and
                    (B) any proposed legislation necessary to authorize 
                a recommended modification.
SEC. 1225. ACCOUNTING FOR BURDENSHARING CONTRIBUTIONS.

    (a) Authority To Manage Contributions in Local Currency, Etc.--
Subsection (b) of section 2350j of title 10, United States Code, is 
amended to read as follows:
    ``(b) Accounting.--Contributions accepted under subsection (a) 
which are not related to security assistance may be accepted, managed, 
and expended in dollars or in the currency of the host nation (or, in 
the case of a contribution from a regional organization, in the 
currency in which the contribution was provided). Any such contribution 
shall be placed in an account established for such purpose and shall 
remain available until expended for the purposes specified in 
subsection (c). The Secretary of Defense shall establish a separate 
account for such purpose for each country or regional organization from 
which such contributions are accepted under subsection (a).''.
    (b) Conforming Amendment.--Subsection (d) of such section is 
amended by striking out ``credited under subsection (b) to an 
appropriation account of the Department of Defense'' and inserting in 
lieu thereof ``placed in an account established under subsection (b)''.
    (c) Technical Amendment.--Such section is further amended--
            (1) in subsection (e)(1), by striking out ``a report to the 
        congressional defense committees'' and inserting in lieu 
        thereof ``to the congressional committees specified in 
        subsection (g) a report''; and
            (2) by adding at the end the following new subsection:
    ``(g) Congressional Committees.--The congressional committees 
referred to in subsection (e)(1) are--
            ``(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.''.
SEC. 1226. AUTHORITY TO ACCEPT CONTRIBUTIONS FOR EXPENSES OF RELOCATION 
              WITHIN HOST NATION OF UNITED STATES ARMED FORCES 
              OVERSEAS.

    (a) In General.--(1) Subchapter II of chapter 138 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 2350k. Relocation within host nation of elements of armed forces 
              overseas
    ``(a) Authority to Accept Contributions.--The Secretary of Defense 
may accept contributions from any nation because of or in support of 
the relocation of elements of the armed forces from or to any location 
within that nation. Such contributions may be accepted in dollars or in 
the currency of the host nation. Any such contribution shall be placed 
in an account established for such purpose and shall remain available 
until expended for the purposes specified in subsection (b). The 
Secretary shall establish a separate account for such purpose for each 
country from which such contributions are accepted.
    ``(b) Use of Contributions.--The Secretary may use a contribution 
accepted under subsection (a) only for payment of costs incurred in 
connection with the relocation concerning which the contribution was 
made. Those costs include the following:
            ``(1) Design and construction services, including 
        development and review of statements of work, master plans and 
        designs, acquisition of construction, and supervision and 
        administration of contracts relating thereto.
            ``(2) Transportation and movement services, including 
        packing, unpacking, storage, and transportation.
            ``(3) Communications services, including installation and 
        deinstallation of communications equipment, transmission of 
        messages and data, and rental of transmission capability.
            ``(4) Supply and administration, including acquisition of 
        expendable office supplies, rental of office space, budgeting 
        and accounting services, auditing services, secretarial 
        services, and translation services.
            ``(5) Personnel costs, including salary, allowances and 
        overhead of employees whether full-time or part-time, temporary 
        or permanent (except for military personnel), and travel and 
        temporary duty costs.
            ``(6) All other clearly identifiable expenses directly 
        related to relocation.
    ``(c) Method of Contribution.--Contributions may be accepted in any 
of the following forms:
            ``(1) Irrevocable letter of credit issued by a financial 
        institution acceptable to the Treasurer of the United States.
            ``(2) Drawing rights on a commercial bank account 
        established and funded by the host nation, which account is 
        blocked such that funds deposited cannot be withdrawn except by 
        or with the approval of the United States.
            ``(3) Cash, which shall be deposited in a separate trust 
        fund in the United States Treasury pending expenditure and 
        which shall accrue interest in accordance with section 9702 of 
        title 31.
    ``(d) Annual Report to Congress.--Not later than 30 days after the 
end of each fiscal year, the Secretary shall submit to Congress a 
report specifying--
            ``(1) the amount of the contributions accepted by the 
        Secretary during the preceding fiscal year under subsection (a) 
        and the purposes for which the contributions were made; and
            ``(2) the amount of the contributions expended by the 
        Secretary during the preceding fiscal year and the purposes for 
        which the contributions were expended.''.
    (2) The table of sections at the beginning of subchapter II of 
chapter 138 of such title is amended by adding at the end the following 
new item:

``2350k. Relocation within host nation of elements of armed forces 
                            overseas.''.
    (b) Effective Date.--Section 2350k of title 10, United States Code, 
as added by subsection (a), shall take effect on October 1, 1995, and 
shall apply to contributions for relocation of elements of the Armed 
Forces in or to any nation received on or after such date.
SEC. 1227. SENSE OF CONGRESS ON ABM TREATY VIOLATIONS.

    (a) Findings.--The Congress finds the following:
            (1) The 1972 Anti-Ballistic Missile Treaty prohibits either 
        party from deploying ballistic missile early warning radars 
        except at locations along the periphery of its national 
        territory and oriented outward.
            (2) The 1972 Anti-Ballistic Missile Treaty prohibits either 
        party from deploying an ABM system to defend its national 
        territory and from providing a base for any such nationwide 
        defense.
            (3) Large phased-array radars were recognized during 
        negotiation of the Anti-Ballistic Missile Treaty as the 
        critical long lead-time element of a nationwide defense against 
        ballistic missiles.
            (4) In 1983 the United States discovered the construction, 
        in the interior of the Soviet Union near the town of 
        Krasnoyarsk, of a large phased-array radar that was judged to 
        be for ballistic missile early warning and tracking.
            (5) The Krasnoyarsk radar was certified by the Reagan 
        Administration and previous sessions of Congress as an 
        unequivocal violation by the Soviet Union of the Anti-Ballistic 
        Missile Treaty.
            (6) Retired Soviet General Y.V. Votintsev, Director of the 
        Soviet National Air Defense Forces from 1967 to 1985, has 
        publicly stated that he was directed by the Chief of the Soviet 
        General staff to locate the large phased-array radar at 
        Krasnoyarsk despite the recognition that its location would be 
        a clear violation of the ABM Treaty.
            (7) General Votintsev has publicly stated that Marshal D.F. 
        Ustinov, Soviet Minister of Defense, threatened to relieve from 
        duty any Soviet officer who continued to object to the 
        construction of a large-phased array radar at Krasnoyarsk.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the government of the Soviet Union intentionally 
        violated its legal obligations under the 1972 Anti-Ballistic 
        Missile Treaty in order to advance its national security 
        interests; and
            (2) the United States should remain vigilant in ensuring 
        compliance by Russia with its arms control obligations and 
        should, when pursuing future arms control agreements with 
        Russia, bear in mind violations of arms control obligations by 
        the Soviet Union.
SEC. 1228. REDUCTION OF UNITED STATES MILITARY FORCES IN EUROPE.

    (a) End Strength Reductions for Military Personnel in Europe.--
Notwithstanding section 1002(c)(1) of the National Defense 
Authorization Act, 1985 (22 U.S.C. 1928 note), but subject to 
subsection (d), for each of fiscal years 1996, 1997, 1998, and 1999, 
the Secretary of Defense shall reduce the end strength level of members 
of the Armed Forces of the United States assigned to permanent duty 
ashore in European member nations of the North Atlantic Treaty 
Organization (NATO) in accordance with subsection (b).
    (b) Reduction Formula.--
            (1) Application of formula.--For each percentage point by 
        which, as of the end of a fiscal year, the allied contribution 
        level determined under paragraph (2) is less than the allied 
        contribution goal specified in subsection (c), the Secretary of 
        Defense shall reduce the end strength level of members of the 
        Armed Forces of the United States assigned to permanent duty 
        ashore in European member nations of NATO by 1,000 for the next 
        fiscal year. The reduction shall be made from the end strength 
        level in effect, pursuant to section 1002(c)(1) of the National 
        Defense Authorization Act, 1985 (22 U.S.C. 1928 note), and 
        subsection (a) of this section (if applicable), for the fiscal 
        year in which the allied contribution level is less than the 
        goal specified in subsection (c).
            (2) Determination of allied contribution level.--To 
        determine the allied contribution level with respect to a 
        fiscal year, the Secretary of Defense shall calculate the 
        aggregate amount of nonpersonnel costs for United States 
        military installations in European member nations of NATO that 
        are assumed during that fiscal year by such nations, except 
        that the Secretary may consider only those cash and in-kind 
        contributions by such nations that replace expenditures that 
        would otherwise be made by the Secretary using funds 
        appropriated or otherwise made available in defense 
        appropriations Acts.
    (c) Annual Allied Contribution Goals.--
            (1) Goals.--In continuing efforts to enter into revised 
        host-nation agreements as described in the provisions of law 
        specified in paragraph (2), the President is urged to seek to 
        have European member nations of NATO assume an increased share 
        of the nonpersonnel costs of United States military 
        installations in those nations in accordance with the following 
        timetable:
                    (A) By September 30, 1996, 18.75 percent of such 
                costs should be assumed by those nations.
                    (B) By September 30, 1997, 37.5 percent of such 
                costs should be assumed by those nations.
                    (C) By September 30, 1998, 56.25 percent of such 
                costs should be assumed by those nations.
                    (D) By September 30, 1999, 75 percent of such costs 
                should be assumed by those nations.
            (2) Specified laws.--The provisions of law referred to in 
        paragraph (1) are--
                    (A) section 1301(e) of National Defense 
                Authorization Act for Fiscal Year 1993 (Public Law 102-
                484; 106 Stat. 2545);
                    (B) section 1401(c) of the National Defense 
                Authorization Act for Fiscal Year 1994 (Public Law 103-
                160; 107 Stat. 1824); and
                    (C) section 1304 of the National Defense 
                Authorization Act for Fiscal Year 1995 (Public Law 103-
                337; 108 Stat. 2890),
    (d) Exceptions.--
            (1) Minimum end strength authority.--Notwithstanding 
        reductions required pursuant to subsection (a), the Secretary 
        of Defense may maintain an end strength of at least 25,000 
        members of the Armed Forces of the United States assigned to 
        permanent duty ashore in European member nations of NATO.
            (2) Waiver authority.--The President may waive operation of 
        this section if the President declares an emergency. The 
        President shall immediately inform Congress of any such waiver 
        and the reasons for the waiver.
    (e) Allocation of Force Reductions.--To the extent that there is a 
reduction in end strength level for any of the Armed Forces in European 
member nations of NATO in a fiscal year pursuant to subsection (a)--
            (1) half of the reduction shall be used to make a 
        corresponding reduction in the authorized end strength level 
        for active duty personnel for such Armed Force for that fiscal 
        year; and
            (2) half of the reduction shall be used to make a 
        corresponding increase in permanent assignments or deployments 
        of forces in the United States or other nations (other than 
        European member nations of NATO) for each such Armed Force for 
        that fiscal year, as determined by the Secretary of Defense.
    (f) Nonpersonnel Costs Defined.--For purposes of this section, the 
term ``nonpersonnel costs'', with respect to United States military 
installations in European member nations of NATO, means costs for those 
installations other than costs paid from military personnel accounts.
SEC. 1229. SENSE OF CONGRESS CONCERNING UNILATERAL IMPLEMENTATION OF 
              START II TREATY.

    (a) Findings.--Congress finds that--
            (1) the START II Treaty has not entered into force; and
            (2) the United States is nevertheless taking unilateral 
        steps to implement the reductions in strategic forces called 
        for by that treaty.
    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of Defense should not implement any reduction in strategic 
forces that is called for in the START II Treaty unless and until that 
treaty enters into force.
    (c) Definitions.--For purposes of this section, the term ``START II 
Treaty'' means the Treaty between the United States of America and the 
Russian Federation on Further Reduction and Limitation of Strategic 
Offensive Arms.
SEC. 1230. SENSE OF THE CONGRESS REGARDING THE CHEMICAL WEAPONS 
              CONVENTION.

    (a) Findings.--The Congress finds that--
            (1) events such as the March 1995 terrorist release of a 
        chemical nerve agent in the Tokyo subway, the threatened use of 
        chemical weapons during the 1991 Persian Gulf War, and the 
        widespread use of chemical weapons during the Iran-Iraq War of 
        the 1980's are all potent reminders of the menace posed by 
        chemical weapons, of the fact that the threat of chemical 
        weapons is unappreciated and not sufficiently addressed, and of 
        the need to outlaw the development, production, and possession 
        of chemical weapons;
            (2) the Convention on the Prohibition of the Development, 
        Production, Stockpiling, and Use of Chemical Weapons and on 
        Their Destruction (hereafter in this section referred to as the 
        ``Convention'') would establish a comprehensive ban on chemical 
        weapons, and its negotiation has enjoyed strong bipartisan 
        congressional support, as well as the support of the last 6 
        administrations, both Republican and Democratic;
            (3) United States military authorities, including Chairman 
        of the Joint Chiefs of Staff General John Shalikashvili, have 
        stated that United States military forces will deter and 
        respond to chemical weapons threats with a robust chemical 
        defense and an overwhelming superior conventional response, as 
        demonstrated in the Persian Gulf War, and have testified in 
        support of the Convention's ratification;
            (4) the Congress in 1985 mandated the unilateral 
        destruction of the bulk of the chemical weapons stockpile of 
        the United States, and the Convention, which requires 
        participating states to destroy their chemical arsenals and 
        production facilities under international supervision, would 
        accelerate progress toward the disarmament of chemical weapons 
        in a majority of the states believed to harbor chemical weapons 
        capabilities, as this majority is among the Convention's 159 
        signatories;
            (5) the United States chemical industry was an important 
        partner during the negotiation of the Convention, assisted in 
        crafting a reasonable, effective verification protocol, 
        participated in both United States and international trials to 
        test provisions of the Convention during its negotiation, and 
        testified in support of the Convention's ratification;
            (6) the United States intelligence community has testified 
        that the Convention will provide new and important sources of 
        information, through regular data exchanges and routine and 
        challenge inspections, to improve the ability of the United 
        States to assess the chemical weapons status in countries of 
        concern;
            (7) the Convention will gradually isolate and automatically 
        penalize states that refuse to join by preventing them from 
        gaining access to dual-use chemicals and creating a basis for 
        monitoring illegal diversions of those materials;
            (8) the Convention has not entered into force for lack of 
        the requisite number of ratifications;
            (9) the United States played a leading role in drafting the 
        Convention, and, as a global leader, must remain at the helm of 
        this effort to deter further proliferation of chemical weapons 
        and provide the legal framework that will minimize the threat 
        posed by chemical weapons;
            (10) Russia has signed the Convention, but has not yet 
        ratified it;
            (11) there have been reports by Russian sources of 
        continued Russian production and testing of chemical weapons, 
        including a statement by a spokesman of the Russian Ministry of 
        Defense on December 5, 1994, that ``We cannot say that all 
        chemical weapons production and testing has stopped 
        altogether.''; and
            (12) the Convention will impose a legally binding 
        obligation on Russia and other nations that possess chemical 
        weapons to cease offensive chemical weapons activities and to 
        destroy their chemical weapons stockpiles and production 
        facilities.
    (b) Sense of Congress.--It is the sense of the Congress that--
            (1) the United States should signify its commitment to 
        reducing the threat posed by chemical weapons by promptly 
        joining the 28 other nations that have ratified the Convention;
            (2) both Houses of Congress should further demonstrate 
        United States preparedness to adopt the Convention by acting 
        expeditiously to pass the required implementing legislation as 
        soon as the Senate gives its advice and consent to the 
        ratification of the Convention;
            (3) both Houses of Congress should continue to lend their 
        full support for the indefinite future to programs that 
        maintain, as the Convention allows and monitors, United States 
        defensive preparedness against chemical weapons;
            (4) the United States must be prepared to exercise fully 
        its rights under the Convention, including the request of 
        challenge inspections when warranted, and to exercise 
        leadership in pursuing punitive measures against violators of 
        the Convention, when warranted;
            (5) the United States should strongly encourage full 
        implementation at the earliest possible date of the terms and 
        conditions of the United States - Russia bilateral chemical 
        weapons destruction agreement signed in 1990;
            (6) understanding that Western assistance would be helpful 
        to a successful Russian chemical weapons destruction program, 
        the United States should encourage Russia to ratify promptly 
        the Convention and implement a plan that will ensure full 
        compliance with the Convention, including the destruction of 
        chemical weapons stockpiles in accordance with the Convention's 
        time lines; and
            (7) the United States should seek to encourage other 
        nations to ratify promptly the Convention and to implement 
        faithfully all its terms and conditions.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 1996''.
                            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                     
------------------------------------------------------------------------
         State              Installation or location          Amount    
------------------------------------------------------------------------
                                                                        
Alabama...............  Fort Rucker.....................      $5,900,000
                        Redstone Arsenal................      $5,000,000
                                                                        
Arizona...............  Fort Huachuca...................     $18,550,000
                                                                        
California............  Fort Irwin......................     $25,500,000
                        Presidio of San Francisco.......      $3,000,000
                                                                        
Colorado..............  Fort Carson.....................     $30,850,000
                                                                        
District of Columbia..  Fort McNair.....................     $13,500,000
                                                                        
Georgia...............  Fort Benning....................     $37,900,000
                        Fort Gordon.....................      $5,750,000
                        Fort Stewart....................      $8,400,000
                                                                        
Hawaii................  Schofield Barracks..............     $15,000,000
                                                                        
Kentucky..............  Fort Knox.......................      $5,600,000
                                                                        
Missouri..............  Fort Leonard Wood...............      $3,900,000
                                                                        
New Jersey............  Picatinny Arsenal...............      $5,500,000
                                                                        
New Mexico............  White Sands Missile Range.......      $2,050,000
                                                                        
New York..............  Fort Drum.......................     $11,450,000
                        United States Military Academy..      $8,300,000
                        Watervliet Arsenal..............        $680,000
                                                                        
North Carolina........  Fort Bragg......................     $29,700,000
                                                                        
Oklahoma..............  Fort Sill.......................     $14,300,000
                                                                        
South Carolina........  Naval Weapons Station,                          
                         Charleston.....................     $25,700,000
                        Fort Jackson....................     $32,000,000
                                                                        
Texas.................  Fort Hood.......................     $32,500,000
                        Fort Bliss......................     $56,900,000
                        Fort Sam Houston................      $7,000,000
                                                                        
Virginia..............  Fort Eustis.....................     $16,400,000
                        Fort Myer.......................     $17,000,000
                                                                        
Washington............  Fort Lewis......................     $32,100,000
                                                                        
CONUS Classified......  Classified Location.............      $1,900,000
                                                                        
                            Total:......................    $472,330,000
                                                                        
------------------------------------------------------------------------

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

                     Army: Outside the United States                    
------------------------------------------------------------------------
         Country             Installation or location         Amount    
------------------------------------------------------------------------
                                                                        
Korea...................  Camp Casey....................      $4,150,000
                          Camp Hovey....................     $13,500,000
                          Camp Pelham...................      $5,600,000
                          Camp Stanley..................      $6,800,000
                          Yongsan.......................      $1,450,000
                                                                        
Overseas Classified.....  Classified Location...........     $48,000,000
                                                                        
                              Total:....................     $79,500,000
                                                                        
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(5)(A), the Secretary of the Army may construct or acquire 
family housing units (including land acquisition) at the installations, 
for the purposes, and in the amounts set forth in the following table:

                          Army: Family Housing                          
------------------------------------------------------------------------
       State           Installation         Purpose           Amount    
------------------------------------------------------------------------
                                                                        
Alabama...........  Redstone Arsenal.  118 units........     $12,000,000
                                                                        
Kentucky..........  Fort Knox........  262 units........     $19,000,000
                                                                        
New York..........  United States                                       
                     Military                                           
                     Academy, West                                      
                     Point...........  119 units........     $16,500,000
                                                                        
Virginia..........  Fort Lee.........  135 units........     $19,500,000
                                                                        
Washington........  Fort Lewis.......  84 units.........     $10,800,000
                                                                        
                                           Total:.......     $77,800,000
                                                                        
------------------------------------------------------------------------

    (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 $2,000,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2104(a)(5)(A), the Secretary of the Army may improve existing 
military family housing in an amount not to exceed $46,600,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1995, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Army in the total amount of $2,167,190,000 as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2101(a), $472,330,000.
            (2) For military construction projects outside the United 
        States authorized by section 2101(b), $79,500,000.
            (3) For unspecified minor military construction projects 
        authorized by section 2805 of title 10, United States Code, 
        $9,000,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $70,778,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvements of military family housing and 
                facilities, $126,400,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $1,333,596,000.
            (6) For the Homeowners Assistance Program, as authorized by 
        section 2832 of title 10, United States Code, $75,586,000, to 
        remain available until expended.
    (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 the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a).
                            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                     
------------------------------------------------------------------------
         State              Installation or location          Amount    
------------------------------------------------------------------------
                                                                        
California............  Marine Corps Air-Ground Combat                  
                        Marine Corps Base, Camp                         
                         Pendleton......................     $27,584,000
                        Nav Com Control & Ocean Sur Cen                 
                         RDT&E Div, San Diego...........      $3,170,000
                        Naval Air Station, Lemoore......      $7,600,000
                        Naval Air Station, North Island.     $99,150,000
                        Naval Air Warfare Center Weapons                
                         Division, China Lake...........      $3,700,000
                        Naval Air Warfare Center Weapons                
                         Division, Point Mugu...........      $1,300,000
                        Naval Construction Batallion                    
                         Center, Port Hueneme...........     $16,700,000
                        Naval Station, San Diego........     $19,960,000
                                                                        
Florida...............  Naval School Explosive Ordinance                
                         Disposal, Eglin Air Force Base.     $16,150,000
                        Naval Technical Training Center,                
                         Corry Station, Pensacola.......      $2,565,000
                                                                        
Georgia...............  Strategic Weapons Facility,                     
                         Atlantic, Kings Bay............      $2,450,000
                        Marine Corps Logistics Base,                    
                         Albany.........................      $1,300,000
                                                                        
Hawaii................  Intelligence Center Pacific,                    
                         Pearl Harbor...................      $2,200,000
                        Naval Com & Telecoms Area                       
                         MASTSTA EASTPAC, Honolulu......      $1,980,000
                        Naval Submarine Base, Pearl                     
                         Harbor.........................     $22,500,000
                                                                        
Illinois..............  Naval Training Center, Great                    
                         Lakes..........................     $12,440,000
                                                                        
Indiana...............  Crane Naval Surface Warfare                     
                         Center.........................      $3,300,000
                                                                        
Maryland..............  Naval Academy, Annapolis........      $3,600,000
                        Various Maryland Locations......      $1,200,000
                                                                        
New Jersey............  Naval Air Warfare Center                        
                         Aircraft Division, Lakehurst...      $1,700,000
                                                                        
North Carolina........  Marine Corps Air Station, Cherry                
                         Point..........................     $11,430,000
                        Marine Corps Air Station, New                   
                         River..........................     $14,650,000
                        Marine Corps Base, Camp LeJeune.     $59,300,000
                                                                        
Pennsylvania..........  Philadelphia Naval Shipyard.....      $6,000,000
                                                                        
South Carolina........  Marine Corps Air Station,                       
                         Beaufort.......................     $15,000,000
                                                                        
Texas.................  Naval Air Station, Corpus                       
                         Christi........................      $4,400,000
                        Naval Air Station, Kingsville...      $2,710,000
                        Naval Station, Ingleside........      $2,640,000
                                                                        
Virginia..............  Fleet and Industrial Supply                     
                         Center, Williamsburg...........      $8,390,000
                        Marine Corps Combat Development                 
                         Command, Quantico..............      $3,500,000
                        Naval Hospital, Portsmouth......      $9,500,000
                        Naval Station, Norfolk..........     $28,580,000
                        Naval Weapons Station, Yorktown.      $1,300,000
                                                                        
Washington............  Naval Undersea Warfare Center                   
                         Division, Keyport..............      $5,300,000
                        Puget Sound Naval Shipyard,                     
                         Bremerton......................     $19,870,000
                                                                        
                            Total:......................    $445,609,000
                                                                        
------------------------------------------------------------------------

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

                     Navy: Outside the United States                    
------------------------------------------------------------------------
        Country             Installation or location          Amount    
------------------------------------------------------------------------
                                                                        
Guam..................  Naval Com & Telecoms Area                       
                        Navy Public Works Center, Guam..     $16,180,000
                                                                        
Italy.................  Naval Air Station, Sigonella....     $12,170,000
                        Naval Support Activity, Naples..     $24,950,000
                                                                        
Puerto Rico...........  Naval Security Group Activity,                  
                         Sabana Seca....................      $2,200,000
                        Naval Station, Roosevelt Roads..     $11,500,000
                                                                        
                            Total.......................     $69,250,000
                                                                        
------------------------------------------------------------------------

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         Purpose           Amount    
------------------------------------------------------------------------
                                                                        
California........  Marine Corps                                        
                    Marine Corps                                        
                     Base, Camp                                         
                     Pendleton.......  Community Center.      $1,438,000
                    Marine Corps                                        
                     Base, Camp                                         
                     Pendleton.......  Housing Office...        $707,000
                    Naval Air                                           
                     Station, Lemoore  240 units........     $34,900,000
                    Pacific Missile                                     
                     Test Center,                                       
                     Point Mugu......  Housing Office...      $1,020,000
                    Public Works                                        
                     Center, San                                        
                     Diego...........  346 units........     $49,310,000
                                                                        
Hawaii............  Naval Complex,                                      
                     Oahu............  252 units........     $48,400,000
                                                                        
Maryland..........  Naval Air Test                                      
                     Center, Patuxent                                   
                     River...........  Warehouse........        $890,000
                    US Naval Academy,                                   
                     Annapolis.......  Housing Office...        $800,000
                                                                        
North Carolina....  Marine Corps Air                                    
                     Station, Cherry                                    
                     Point...........  Community Center.      $1,003,000
                                                                        
Pennsylvania......  Navy Ships Parts                                    
                     Control Center,                                    
                     Mechanicsburg...  Housing Office...        $300,000
                                                                        
Puerto Rico.......  Naval Station,                                      
                     Roosevelt Roads.  Housing Office...        $710,000
                                                                        
Virginia..........  Naval Surface                                       
                     Warfare Center,                                    
                     Dahlgren........  Housing Office...        $520,000
                    Public Works                                        
                     Center, Norfolk.  320 units........     $42,500,000
                    Public Works                                        
                     Center, Norfolk.  Housing Office...      $1,390,000
                                                                        
                                           Total:.......    $230,752,000
                                                                        
------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2204(a)(5)(A), the 
Secretary of the Navy may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $24,390,000.

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 $292,931,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1994, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Navy in the total amount of $2,164,861,000 as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $445,609,000.
            (2) For military construction projects outside the United 
        States authorized by section 2201(b), $69,250,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $7,200,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $66,184,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $531,289,000.
                    (B) For support of military housing (including 
                functions described in section 2833 of title 10, United 
                States Code), $1,045,329,000.
    (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).

                         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                  
------------------------------------------------------------------------
         State              Installation or location          Amount    
------------------------------------------------------------------------
                                                                        
Alabama...............  Maxwell Air Force Base..........      $3,700,000
                                                                        
Alaska................  Eielson Air Force Base..........      $3,850,000
                        Elmendorf Air Force Base........      $9,100,000
                        Tin City Long Range RADAR Site..      $2,500,000
                                                                        
Arizona...............  Davis-Monthan Air Force Base....      $4,800,000
                        Luke Air Force Base.............      $5,200,000
                                                                        
Arkansas..............  Little Rock Air Force Base......      $2,500,000
                                                                        
California............  Beale Air Force Base............      $7,500,000
                        Edwards Air Force Base..........     $33,800,000
                        Travis Air Force Base...........     $26,700,000
                        Vandenberg Air Force Base.......      $6,000,000
                                                                        
Colorado..............  Buckley Air National Guard Base.      $5,500,000
                        Peterson Air Force Base.........      $4,390,000
                        US Air Force Academy............     $12,874,000
                                                                        
Delaware..............  Dover Air Force Base............      $5,500,000
                                                                        
District of Columbia..  Bolling Air Force Base..........     $12,100,000
                                                                        
Florida...............  Cape Canaveral Air Force Station      $1,600,000
                        Eglin Air Force Base............     $13,500,000
                        Tyndall Air Force Base..........      $1,200,000
                                                                        
Georgia...............  Moody Air Force Base............     $19,190,000
                        Robins Air Force Base...........      $6,900,000
                                                                        
Hawaii................  Hickam Air Force Base...........     $10,700,000
                                                                        
Idaho.................  Mountain Home Air Force Base....     $18,650,000
                                                                        
Illinois..............  Scott Air Force Base............     $12,700,000
                                                                        
Kansas................  McConnell Air Force Base........     $15,950,000
                                                                        
Louisiana.............  Barksdale Air Force Base........      $2,500,000
                                                                        
Maryland..............  Andrews Air Force Base..........     $12,886,000
                                                                        
Mississippi...........  Columbus Air Force Base.........      $1,150,000
                        Keesler Air Force Base..........     $14,800,000
                                                                        
Missouri..............  Whiteman Air Force Base.........     $24,600,000
                                                                        
Nevada................  Nellis Air Force Base...........     $10,500,000
                                                                        
New Jersey............  McGuire Air Force Base..........     $21,500,000
                                                                        
New Mexico............  Cannon Air Force Base...........     $13,420,000
                        Kirtland Air Force Base.........      $9,156,000
                                                                        
North Carolina........  Pope Air Force Base.............      $8,250,000
                        Seymour Johnson Air Force Base..      $7,530,000
                                                                        
North Dakota..........  Grand Forks Air Force Base......     $14,800,000
                        Minot Air Force Base............      $1,550,000
                                                                        
Ohio..................  Wright Patterson Air Force Base.      $4,100,000
                                                                        
Oklahoma..............  Altus Air Force Base............      $5,200,000
                        Tinker Air Force Base...........      $5,100,000
                                                                        
South Carolina........  Charleston Air Force Base.......     $12,500,000
                        Shaw Air Force Base.............      $1,300,000
                                                                        
Tennessee.............  Arnold Air Force Base...........      $5,000,000
                                                                        
Texas.................  Dyess Air Force Base............      $5,400,000
                        Goodfellow Air Force Base.......      $1,000,000
                        Kelly Air Force Base............      $3,244,000
                        Laughlin Air Force Base.........      $1,400,000
                        Randolph Air Force Base.........      $3,100,000
                        Reese Air Force Base............      $1,200,000
                        Sheppard Air Force Base.........      $1,500,000
                                                                        
Virginia..............  Langley Air Force Base..........      $1,000,000
                                                                        
Washington............  Fairchild Air Force Base........     $15,700,000
                        McChord Air Force Base..........      $9,900,000
                                                                        
Wyoming...............  F.E. Warren Air Force Base......     $13,000,000
                                                                        
CONUS Classified......  Classified Location.............        $700,000
                                                                        
                            Total:......................    $479,390,000
                                                                        
------------------------------------------------------------------------

    (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 may carry out 
military construction projects for the installations and locations 
outside the United States, and in the amounts, set forth in the 
following table:

                  Air Force: Outside the United States                  
------------------------------------------------------------------------
        Country             Installation or location          Amount    
------------------------------------------------------------------------
                                                                        
Germany...............  Spangdahlem Air Base............      $8,380,000
                        Vogelweh Annex..................       2,600,000
                                                                        
Greece................  Araxos Radio Relay Site.........       1,950,000
                                                                        
Italy.................  Aviano Air Base.................       2,350,000
                        Ghedi Radio Relay Site..........       1,450,000
                                                                        
Turkey................  Ankara Air Station..............       7,000,000
                        Incirlik Air Base...............       4,500,000
                                                                        
United Kingdom........  Lakenheath Royal Air Force Base.       1,820,000
                        Mildenhall Royal Air Force Base.       2,250,000
                                                                        
Overseas Classified...  Classified Location.............      17,100,000
                                                                        
                            Total:......................     $49,400,000
                                                                        
------------------------------------------------------------------------

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/Country       Installation         Purpose           Amount    
------------------------------------------------------------------------
                                                                        
Alaska............  Elmendorf Air                                       
                                                                        
Arizona...........  Davis-Monthan Air                                   
                     Force Base......  80 units.........       9,498,000
                                                                        
Arkansas..........  Little Rock Air                                     
                     Force Base......  Replace 1 General                
                                        Officer Quarters         210,000
                                                                        
California........  Beale Air Force    Family Housing                   
                     Base.              Office..........         842,000
                    Edwards Air Force                                   
                     Base............  127 units........      20,750,000
                    Vandenberg Air                                      
                     Force Base......  Family Housing                   
                                        Office..........         900,000
                    Vandenberg Air                                      
                     Force Base......  143 units........      20,200,000
                                                                        
Colorado..........  Peterson Air                                        
                     Force Base......  Family Housing                   
                                        Office..........         570,000
                                                                        
District of                                                             
 Columbia.........  Bolling Air Force                                   
                     Base............  32 units.........       4,100,000
                                                                        
Florida...........  Eglin Air Force                                     
                     Base............  Family Housing                   
                                        Office..........         500,000
                    Eglin Auxiliary                                     
                     Field 9.........  Family Housing                   
                                        Office..........         880,000
                    MacDill Air Force                                   
                     Base............  Family Housing                   
                                        Office..........         646,000
                    Patrick Air Force                                   
                     Base............  70 units.........       7,947,000
                    Tyndall Air Force                                   
                     Base............  82 units.........       9,800,000
                                                                        
Georgia...........  Moody Air Force                                     
                     Base............  1 Officer & 1                    
                                        General Officer                 
                                        Quarter.........         513,000
                                                                        
Guam..............  Andersen Air                                        
                     Force Base......  Housing                          
                                        Maintenance                     
                                        Facility........       1,700,000
                                                                        
Idaho.............  Mountain Home Air                                   
                     Force Base......  Housing                          
                                        Management                      
                                        Facility........         844,000
                                                                        
Kansas............  McConnell Air                                       
                     Force Base......  39 units.........       5,193,000
                                                                        
Louisiana.........  Barksdale Air                                       
                     Force Base......  62 units.........      10,299,000
                                                                        
Massachusetts.....  Hanscom Air Force                                   
                     Base............  32 units.........       4,900,000
                                                                        
Mississippi.......  Keesler Air Force                                   
                     Base............  98 units.........       9,300,000
                                                                        
Missouri..........  Whiteman Air                                        
                     Force Base......  72 units.........       9,948,000
                                                                        
Nevada............  Nellis Air Force                                    
                     Base............  143 Units........      22,357,000
                                                                        
New Mexico........  Holloman Air                                        
                     Force Base......  1 General Officer                
                                        Quarters........         225,000
                    Kirtland Air                                        
                     Force Base......  105 units........      11,000,000
                                                                        
North Carolina....  Pope Air Force                                      
                     Base............  104 units........       9,984,000
                    Seymour Johnson                                     
                     Air Force Base..  1 General Officer                
                                        Quarters........         204,000
                                                                        
South Carolina....  Shaw Air Force                                      
                     Base............  Housing                          
                                        Maintenance                     
                                        Facility........         715,000
                                                                        
Texas.............  Dyess Air Force                                     
                     Base............  Housing                          
                                        Maintenance                     
                                        Facility........         580,000
                    Lackland Air                                        
                     Force Base......  67 units.........       6,200,000
                    Sheppard Air                                        
                     Force Base......  Management Office         500,000
                    Sheppard Air                                        
                     Force Base......  Housing                          
                                        Maintenance                     
                                        Facility........         600,000
                                                                        
Turkey............  Incirlik Air Base  150 units........      10,146,000
                                                                        
Washington........  McChord Air Force                                   
                     Base............  50 units.........       9,504,000
                                                                        
                                           Total:.......    $194,555,000
                                                                        
------------------------------------------------------------------------

    (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 $8,989,000.
SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2304(a)(5)(A), the Secretary of the Air Force may improve 
existing military family housing units in an amount not to exceed 
$90,959,000.
SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1995, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Air Force in the total amount of 
$1,727,557,000 as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2301(a), $479,390,000.
            (2) For military construction projects outside the United 
        States authorized by section 2301(b), $49,400,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $9,030,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $49,021,000.
            (5) For military housing functions:
                    (A) For construction and acquisition, planning and 
                design and improvement of military family housing and 
                facilities, $294,503,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $846,213,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2301 of this 
Act may not exceed the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a).
SEC. 2305. RETENTION OF ACCRUED INTEREST ON FUNDS DEPOSITED FOR 
              CONSTRUCTION OF FAMILY HOUSING, SCOTT AIR FORCE BASE, 
              ILLINOIS.

    (a) Retention of Interest.--Section 2310 of the Military 
Construction Authorization Act for Fiscal Year 1994 (division B of 
Public Law 103-160; 107 Stat. 1874) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Retention of Interest.--Interest accrued on the funds 
transferred to the County pursuant to subsection (a) shall be retained 
in the same account as the transferred funds and shall be available to 
the County for the same purpose as the transferred funds.''.
    (b) Limitation on Units Constructed.--Subsection (c) of such 
section, as redesignated by subsection (a)(1), is amended by adding at 
the end the following new sentence: ``The number of units constructed 
using the transferred funds (and interest accrued on these funds) may 
not exceed the number of units of military family housing authorized 
for Scott Air Force Base, Illinois, in section 2302(a) of the Military 
Construction Authorization Act for Fiscal Year 1993 (division B of 
Public Law 102-484; 106 Stat. 2595).''.
    (c) Effect of Completion of Construction.--Such section is further 
amended by adding at the end the following new subsection:
    ``(d) Completion of Construction.--Upon the completion of the 
construction authorized by this section, all funds remaining from the 
funds transferred pursuant to subsection (a) and the interest accrued 
on these funds shall be deposited in the general fund of the Treasury 
of the United States.''.
                      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), and, in 
the case of the project described in section 2405(b)(2), other amounts 
appropriated pursuant to authorizations enacted after this Act for that 
project, the Secretary of Defense may acquire real property and carry 
out military construction projects for the installations and locations 
inside the United States, and in the amounts, set forth in the 
following table:

               Defense Agencies: Inside the United States               
------------------------------------------------------------------------
     Agency/State           Installation or location          Amount    
------------------------------------------------------------------------
                                                                        
Ballistic Missile                                                       
                                                                        
Texas.................  Fort Bliss......................     $13,600,000
                                                                        
Defense Finance &                                                       
 Accounting Service                                                     
                                                                        
Ohio..................  Columbus Center.................     $72,403,000
                                                                        
Defense Intelligence                                                    
 Agency                                                                 
                                                                        
District of Columbia..  Bolling Air Force Base..........      $1,743,000
                                                                        
Defense Logistics                                                       
 Agency                                                                 
                                                                        
Alabama...............  Defense Distribution Anniston...      $3,550,000
                                                                        
California............  Defense Distribution Stockton...     $15,000,000
                        DFSC, Point Mugu................        $750,000
                                                                        
Delaware..............  DFSC, Dover Air Force Base......     $15,554,000
                                                                        
Florida...............  DFSC, Eglin Air Force Base......      $2,400,000
                                                                        
Louisiana.............  DFSC, Barksdale Air Force Base..     $13,100,000
                                                                        
New Jersey............  DFSC, McGuire Air Force Base....     $12,000,000
                                                                        
Pennsylvania..........  Def Distribution New Cumberland--               
                         DDSP...........................      $4,600,000
                                                                        
Virginia..............  Defense Distribution Depot--DDNV     $10,400,000
                                                                        
Defense Mapping Agency                                                  
                                                                        
Missouri..............  Defense Mapping Agency Aerospace                
                         Center.........................     $40,300,000
                                                                        
Defense Medical                                                         
 Facility Office                                                        
                                                                        
Arizona...............  Luke Air Force Base.............      $8,100,000
                                                                        
California............  Fort Irwin......................      $6,900,000
                        Marine Corps Base, Camp                         
                         Pendleton......................      $1,700,000
                        Vandenberg Air Force Base.......      $5,700,000
                                                                        
Delaware..............  Dover Air Force Base............      $4,400,000
                                                                        
Georgia...............  Fort Benning....................      $5,600,000
                                                                        
Louisiana.............  Barksdale Air Force Base........      $4,100,000
                                                                        
Maryland..............  Bethesda Naval Hospital.........      $1,300,000
                        Walter Reed Army Institute of                   
                         Research.......................      $1,550,000
                                                                        
Texas.................  Fort Hood.......................      $5,500,000
                        Lackland Air Force Base.........      $6,100,000
                        Reese Air Force Base............      $1,000,000
                                                                        
Virginia..............  Northwest Naval Security Group                  
                         Activity.......................      $4,300,000
                                                                        
National Security                                                       
 Agency                                                                 
                                                                        
Maryland..............  Fort Meade......................     $18,733,000
                                                                        
Office of the                                                           
 Secretary of Defense                                                   
                                                                        
Inside the United                                                       
 States...............  Classified location.............     $11,500,000
                                                                        
Department of Defense                                                   
 Dependents Schools                                                     
                                                                        
Alabama...............  Maxwell Air Force Base..........      $5,479,000
                                                                        
Georgia...............  Fort Benning....................      $1,116,000
                                                                        
South Carolina........  Fort Jackson....................        $576,000
                                                                        
Special Operations                                                      
 Command                                                                
                                                                        
California............  Naval Air Station, Miramar......      $5,200,000
                                                                        
Florida...............  Duke Field......................      $2,400,000
                        Eglin Auxiliary Field 9.........     $14,150,000
                                                                        
Louisiana.............  Naval Support Activity, New                     
                         Orleans........................        $730,000
                                                                        
North Carolina........  Fort Bragg......................     $23,800,000
                                                                        
Pennsylvania..........  Olmstead Field, Harrisburg IAP..      $1,643,000
                                                                        
Virginia..............  Dam Neck........................      $6,100,000
                        Naval Amphibious Base, Little                   
                         Creek..........................      $4,500,000
                                                                        
                            Total:......................    $357,577,000
------------------------------------------------------------------------

    (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              
------------------------------------------------------------------------
    Agency/Country              Installation Name             Amount    
------------------------------------------------------------------------
                                                                        
Defense Logistics                                                       
                                                                        
Puerto Rico...........  Defense Fuel Support Point,                     
                         Roosevelt Roads................      $6,200,000
                                                                        
Spain.................  DFSC Rota.......................      $7,400,000
                                                                        
Defense Medical                                                         
 Facility Office                                                        
                                                                        
Italy.................  Naval Support Activity, Naples..      $5,000,000
                                                                        
Department of Defense                                                   
 Dependents Schools                                                     
                                                                        
Germany...............  Ramstein Air Force Base.........     $19,205,000
                                                                        
Italy.................  Naval Air Station, Sigonella....      $7,595,000
                                                                        
National Security                                                       
 Agency                                                                 
                                                                        
United Kingdom........  Menwith Hill Station............        $677,000
                                                                        
Special Operations                                                      
 Command                                                                
                                                                        
Guam..................  Naval Station, Guam.............      $8,800,000
                                                                        
                            Total:......................     $54,877,000
------------------------------------------------------------------------

SEC. 2402. FAMILY HOUSING PRIVATE INVESTMENT.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2405(a)(13)(A), the Secretary of Defense may 
enter into agreements to construct, acquire, and improve family housing 
units (including land acquisition) at or near military installations, 
for the purpose of encouraging private investments, in the amount of 
$22,000,000. Amounts appropriated pursuant to such section may be 
transferred from the Department of Defense Family Housing Improvement 
Fund established under section 2873 of title 10, United States Code, to 
the family housing accounts of the military departments for the purpose 
of encouraging private investments.

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 appropriations in 
section 2405(a)(13)(A), the Secretary of Defense may improve existing 
military family housing units in an amount not to exceed $3,772,000.

SEC. 2404. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2405(a)(11), 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, 1995, 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 $4,692,463,000 as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2401(a), $322,574,000.
            (2) For military construction projects outside the United 
        States authorized by section 2401(b), $54,877,000.
            (3) For military construction projects at Portsmouth Naval 
        Hospital, Virginia, authorized by section 2401(a) of the 
        Military Construction Authorization Act for Fiscal Years 1990 
        and 1991 (division B of Public Law 101-189; 103 Stat. 1640), 
        $47,900,000.
            (4) For military construction projects at Elmendorf Air 
        Force Base, Alaska, 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), $28,100,000.
            (5) 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), $27,000,000.
            (6) For military construction projects at Pine Bluff 
        Arsenal, Arkansas, authorized by section 2401(a) of the 
        Military Construction Authorization Act for Fiscal Year 1995 
        (division B of Public Law 103-337; 108 Stat. 3040), 
        $40,000,000.
            (7) 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 Public Law 103-337; 108 Stat. 3040), $55,000,000.
            (8) For unspecified minor construction projects under 
        section 2805 of title 10, United States Code, $23,007,000.
            (9) For contingency construction projects of the Secretary 
        of Defense under section 2804 of title 10, United States Code, 
        $11,037,000.
            (10) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        State Code, $68,837,000.
            (11) For energy conservation projects authorized by section 
        2404, $50,000,000.
            (12) 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), $3,897,892,000.
            (13) For military family housing functions:
                    (A) For construction and acquisition and 
                improvement of military family housing and facilities, 
                $25,772,000.
                    (B) For support of military housing (including 
                functions described in section 2833 of title 10, United 
                States Code), $40,467,000, of which not more than 
                $24,874,000 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--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a); and
            (2) $35,003,000 (the balance of the amount authorized under 
        section 2401(a) for the construction of a center of the Defense 
        Finance and Accounting Service at Columbus, Ohio).
SEC. 2406. 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), under the agency heading relating to Chemical 
Weapons and Munitions Destruction, is amended--
            (1) in the item relating to Pine Bluff Arsenal, Arkansas, 
        by striking out ``$3,000,000'' in the amount column and 
        inserting in lieu thereof ``$115,000,000''; and
            (2) in the item relating to Umatilla Army Depot, Oregon, by 
        striking out ``$12,000,000'' in the amount column and inserting 
        in lieu thereof ``$186,000,000''.

SEC. 2407. LIMITATION ON EXPENDITURES FOR CONSTRUCTION PROJECT AT 
              UMATILLA ARMY DEPOT, OREGON.

    None of the funds appropriated to the Department of Defense for 
fiscal year 1996 for the construction of a chemical munitions 
incinerator facility at Umatilla Army Depot may be obligated or 
expended before March 1, 1996.

      TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the North 
Atlantic Treaty Organization Infrastructure 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, 1995, 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 Infrastructure program, as authorized by 
section 2501, in the amount of $161,000,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

    There are authorized to be appropriated for fiscal years beginning 
after September 30, 1995, 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 133 
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, $72,537,000; and
                    (B) for the Army Reserve, $42,963,000.
            (2) For the Department of the Navy, for the Naval and 
        Marine Corps Reserve, $19,655,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the United 
                States, $118,267,000; and
                    (B) for the Air Force Reserve, $31,502,000.
SEC. 2602. CORRECTION IN AUTHORIZED USES OF FUNDS FOR ARMY NATIONAL 
              GUARD PROJECTS IN MISSISSIPPI.

    Amounts appropriated pursuant to the authorization of 
appropriations in section 2601(1)(A) of the Military Construction 
Authorization Act for Fiscal Year 1994 (division B of Public Law 103-
160; 107 Stat. 1878) for the addition or alteration of Army National 
Guard Armories at various locations in the State of Mississippi shall 
be available for the addition, alteration, or new construction of 
armory facilities and an operation and maintenance shop facility 
(including the acquisition of land for such facilities) at various 
locations in the State of Mississippi.
        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 Infrastructure program (and authorizations 
of appropriations therefor) shall expire on the later of--
            (1) October 1, 1998; or
            (2) the date of the enactment of an Act authorizing funds 
        for military construction for fiscal year 1999.
    (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 Infrastructure program (and authorizations of 
appropriations therefor), for which appropriated funds have been 
obligated before the later of--
            (1) October 1, 1998; or
            (2) the date of the enactment of an Act authorizing funds 
        for fiscal year 1999 for military construction projects, land 
        acquisition, family housing projects and facilities, or 
        contributions to the North Atlantic Treaty Organization 
        Infrastructure program.
SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1993 
              PROJECTS.

    (a) Extensions.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1993 (division B of 
Public Law 102-484; 106 Stat. 2602), authorizations for the projects 
set forth in the tables in subsection (b), as provided in section 2101, 
2102, 2201, 2301, or 2601 of that Act, shall remain in effect until 
October 1, 1996, or the date of the enactment of an Act authorizing 
funds for military construction for fiscal year 1997, whichever is 
later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:

             Army: Extension of 1993 Project Authorizations             
------------------------------------------------------------------------
                     Installation or                                    
       State             location           Project           Amount    
------------------------------------------------------------------------
                                                                        
Arkansas..........  Pine Bluff         Ammunition                       
                                                                        
Hawaii............  Schofield                                           
                     Barracks........  Additions and                    
                                        Alterations                     
                                        Sewage Treatment                
                                        Plant...........     $17,500,000
                                                                        
Virginia..........  Fort Pickett.....  Sewage Treatment                 
                                        Plant...........      $5,800,000
                                       Family Housing                   
                                        (26 Units)......      $2,300,000
                                                                        
------------------------------------------------------------------------

             Navy: Extension of 1993 Project Authorizations             
------------------------------------------------------------------------
                     Installation or                                    
       State             location           Project           Amount    
------------------------------------------------------------------------
                                                                        
California........  Camp Pendleton                                      
                                                                        
Maryland..........  Patuxent River                                      
                     Naval Warfare                                      
                     Center..........  Advanced Systems                 
                                        Integration                     
                                        Facility........     $60,990,000
                                                                        
Mississippi.......  Meridian Naval                                      
                     Air Station.....  Child Development                
                                        Center..........      $1,100,000
                                                                        
Virginia..........  Dam Neck Fleet                                      
                     Combat Training                                    
                     Center..........  Land Acquisition.      $4,500,000
                                                                        
------------------------------------------------------------------------

           Air Force: Extension of 1993 Project Authorization           
------------------------------------------------------------------------
                     Installation or                                    
 State or country        location           Project           Amount    
------------------------------------------------------------------------
                                                                        
District of                                                             
                                                                        
North Carolina....  Pope Air Force     Munitions Storage                
                     Base.              Complex.........      $4,300,000
                                                                        
Virginia..........  Langley Air Force  Civil Engineer         $5,300,000
                     Base.              Complex.                        
                                                                        
Guam..............  Andersen Air                                        
                     Force Base......  Solid Waste                      
                                        Complex.........     $10,000,000
                                                                        
Portugal..........  Lajes Field......  Water Wells......        $865,000
                                       Fire Training                    
                                        Facility........      $1,300,000
                                                                        
------------------------------------------------------------------------

         Army Reserve: Extension of 1993 Project Authorizations         
------------------------------------------------------------------------
       State             Location           Project           Amount    
------------------------------------------------------------------------
                                                                        
West Virginia.....  Bluefield........  Additions and                    
                    Clarksburg.......  Additions and                    
                                        Alterations AMSA      $1,156,000
                    Grantville.......  Reserve Center/                  
                                        OMS.............      $2,785,000
                    Jane Lew.........  Reserve Center...      $1,566,000
                    Lewisburg........  Reserve Center/                  
                                        OMS.............      $1,631,000
                    Weirton..........  Reserve Center/                  
                                        OMS.............      $3,481,000
                                                                        
------------------------------------------------------------------------

      Army National Guard: Extension of 1993 Project Authorizations     
------------------------------------------------------------------------
       State             Location           Project           Amount    
------------------------------------------------------------------------
                                                                        
Alabama...........  Tuscaloosa.......  Additions and                    
                    Union Springs....  Additions and                    
                                        Alternations                    
                                        Armory..........        $300,000
                                                                        
New Jersey........  Fort Dix.........  Additions and                    
                                        Alternations                    
                                        Armory..........      $4,750,000
                                                                        
Oregon............  La Grande........  OMS..............        $995,000
                                       Armory Addition..      $3,049,000
                                                                        
------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1992 
              PROJECTS.

    (a) Extensions.--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 tables in subsection (b), as provided in section 2101 
or 2601 of that Act and extended by section 2702(a) of the Military 
Construction Authorization Act for Fiscal Year 1995 (division B of 
Public Law 103-337; 108 Stat. 3047), shall remain in effect until 
October 1, 1996, or the date of the enactment of an Act authorizing 
funds for military construction for fiscal year 1997, whichever is 
later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:

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

          Army Reserve: Extension of 1992 Project Authorization         
------------------------------------------------------------------------
       State             Location           Project           Amount    
------------------------------------------------------------------------
                                                                        
Tennessee.........  Jackson..........  Joint Training                   
------------------------------------------------------------------------

      Army National Guard: Extension of 1992 Project Authorization      
------------------------------------------------------------------------
       State             Location           Project           Amount    
------------------------------------------------------------------------
Ohio..............  Toledo...........  Armory...........      $3,183,000
                                                                        
------------------------------------------------------------------------

SEC. 2704. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take effect on 
the later of--
            (1) October 1, 1995; 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. ALTERNATIVE MEANS OF ACQUIRING AND IMPROVING MILITARY FAMILY 
              HOUSING AND SUPPORTING FACILITIES FOR THE ARMED FORCES.

    (a) Findings and Purpose.--(1) Congress finds the following:
            (A) Adequate military family housing is essential to the 
        retention of well-trained and professional members of the Armed 
        Forces.
            (B) Current military family housing is in many 
        circumstances substandard, inadequately maintained, or 
        obsolete. Of the more than 375,000 military families living on 
        military installations, two-thirds of such families reside in 
        unsuitable quarters.
            (C) Traditional military construction techniques are 
        frequently lengthy and more expensive than commercial methods. 
        At current appropriation levels, modernization of military 
        family housing located on military installations could require 
        more than 30 years to accomplish.
            (D) A combination of private housing capital and commercial 
        construction techniques could help to alleviate the shortage of 
        suitable military family housing in a far more timely and cost 
        effective manner.
    (2) It is the purpose of this section to obtain new and improved 
military family housing and ancillary supporting facilities for the 
Armed Forces using private capital and expertise.
    (b) Alternative Provision of Housing and Facilities.--(1) Chapter 
169 of title 10, United States Code, is amended by adding at the end 
the following new subchapter:

   ``SUBCHAPTER IV--ALTERNATIVE PROVISION OF MILITARY FAMILY HOUSING
``Sec.
``2871. Definitions.
``2872. General limitations and authorities.
``2873. Department of Defense Family Housing Improvement Fund.
``2875. Housing finance and acquisition authorities.
``2876. Expiration of authority.
``Sec. 2871. Definitions
    ``In this subchapter:
            ``(1) The term `construction' means the construction of 
        additional units of military family housing and ancillary 
        supporting facilities or the replacement or renovation of 
        existing units or ancillary supporting facilities.
            ``(2) The term `ancillary supporting facilities' means 
        facilities related to military family housing, such as day care 
        centers, community centers, housing offices, maintenance 
        complexes, tot lots, and parks. Such term does not include 
        commercial facilities that could not otherwise be constructed 
        using funds appropriated to the Department of Defense.
            ``(3) The term `contract' includes any contract, lease, or 
        other agreement entered into under the authority of this 
        subchapter.
            ``(4) The term `Fund' means the Department of Defense 
        Family Housing Improvement Fund established under section 
        2873(a) of this title.
``Sec. 2872. General limitations and authorities
    ``(a) Use of Authorities.--The Secretary concerned may use the 
authorities provided by this subchapter, singly or in conjunction with 
other authorities provided under this chapter, to help meet the 
military family housing needs of members of the armed forces and the 
dependents of such members at military installations at which there is 
a shortage of suitable housing for members and their dependents.
    ``(b) Term.--Subject to section 2873(d)(2) of this title, a 
contract entered into under this subchapter may be for such term as the 
Secretary concerned considers to be in the best interests of the United 
States.
    ``(c) Phased Occupancy.--A contract under this subchapter may 
provide for phased occupancy of completed family housing units under 
one or more interim leases during the period of the construction or 
renovation of the housing units. In no case shall any such interim 
lease extend beyond the construction or renovation period.
    ``(d) Unit Size and Type.--Section 2826 of this title shall not 
apply to military family housing units acquired or constructed under 
this subchapter, except that room and floor area size of such housing 
units should generally be comparable to private sector housing 
available in the same locality. When acquiring existing family housing 
in lieu of construction under section 2824 of this title, the Secretary 
concerned may vary the number of types of units to be acquired as long 
as the total number of units is substantially the same as authorized by 
law.
    ``(e) Location.--The Secretary concerned may use the authorities 
provided under this subchapter to acquire or construct military family 
housing units and ancillary supporting facilities in the United States, 
the Commonwealth of Puerto Rico, and in any territory or possession of 
the United States.
    ``(f) Notification Required for Contracts.--The Secretary concerned 
may not enter into a contract under this subchapter until after the end 
of the 21-day period beginning on the date the Secretary concerned 
submits to the appropriate committees of Congress written notice of the 
nature and terms of the contract.
    ``(g) Assignments.--The Secretary concerned may assign members of 
the armed forces to any military family housing obtained using the 
authorities provided in this subchapter in accordance with section 
403(b) of title 37.
    ``(h) Allotments.--The Secretary concerned may require a member of 
the armed forces to pay rent by allotment as a condition of occupying 
military family housing obtained using the authorities provided in this 
subchapter.
    ``(i) Supporting Facilities.--Any contract entered into under this 
subchapter may include provisions for the construction or acquisition 
of ancillary supporting facilities.
    ``(j) Authority To Lease or Sell Land, Housing, and Supporting 
Facilities.--(1) The Secretary concerned may lease or sell land, 
housing, and ancillary supporting facilities under the jurisdiction of 
the Secretary for the purpose of providing additional military family 
housing or improving existing military family housing under this 
subchapter, except that the authority to lease or sell real property 
under this subchapter shall not extend to property located at a 
military installation approved for closure.
    ``(2) A sale or lease under this subsection may be made for such 
consideration and upon such terms and conditions as the Secretary 
concerned shall determine to be consistent with the purposes of this 
subchapter and the public interest. The acreage and legal description 
of any property leased or conveyed under this subsection shall be 
determined by a survey satisfactory to the Secretary concerned.
    ``(3) Section 2667 of this title, the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 471), section 501 of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411), and 
section 321 of the Act of June 30, 1932 (47 Stat. 412) shall not apply 
to leases and sales under this subsection.
    ``(4) As part or all of the consideration for the sale or lease of 
property under this subsection, the Secretary concerned shall require 
an ancillary agreement under which the person receiving the property 
agrees to give priority to military members and their dependents in the 
leasing of existing or new housing units under the control or provided 
by the person. Such agreements may provide for the payment by the 
Secretary concerned of security or damage deposits.
``Sec. 2873. Department of Defense Family Housing Improvement Fund
    ``(a) Establishment.--There is hereby established on the books of 
the Treasury an account to be known as the Department of Defense Family 
Housing Improvement Fund, which shall be administered by the Secretary 
of Defense as a single account. Amounts in the Fund shall be available 
without fiscal year limitation.
    ``(b) Deposits.--There shall be deposited into the Fund the 
following:
            ``(1) Amounts authorized for and appropriated into the 
        Fund.
            ``(2) Subject to subsection (c), any amounts that the 
        Secretary of Defense may transfer to the Fund from amounts 
        appropriated to the Department of Defense for construction of 
        military family housing.
            ``(3) Proceeds received from the conveyance or lease of 
        real property under section 2872(j) of this title, income from 
        operations conducted under this subchapter, including refunds 
        of deposits, and any return of capital or return on investments 
        entered into under this subchapter.
    ``(c) Notification Required for Transfers.--A transfer of 
appropriated amounts to the Fund under subsection (b)(2) may be made 
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 transfer to the appropriate committees of Congress.
    ``(d) Use of Funds.--(1) In such total amount as is provided in 
advance in appropriation Acts, the Secretary of Defense may use amounts 
in the Fund for alternative means of financing military family housing 
and ancillary supporting facilities as authorized in this subchapter.
    ``(2) The Secretary may not enter into a contract under this 
subchapter unless the Fund contains sufficient amounts, as of the time 
the contract is entered into, to satisfy the total obligations to be 
incurred by the United States under the contract.
    ``(3) The total value in budget authority of all contracts and 
investments undertaken using the authorities provided in the subchapter 
shall not exceed $1,000,000,000.
    ``(e) Loans and Loan Guarantees.--Loans and loan guarantees may be 
entered into under this subchapter only to the extent that 
appropriations of budget authority to cover their costs (as defined in 
section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
661a(5))) are made in advance, or authority is otherwise provided in 
appropriations Acts.
    ``(f) Annual Report.--The Secretary of Defense shall submit to the 
appropriate committees of Congress an annual report detailing the 
expenditures from and deposits into the Fund during the preceding year 
and the utilization and effectiveness of the authorities provided by 
this subchapter. The Secretary shall submit the report at the same time 
that the President submits the budget to Congress under section 1105 of 
title 31.
``Sec. 2875. Housing finance and acquisition authorities
    ``(a) Guarantees.--(1) The Secretary concerned may enter into 
contracts that provide for guarantees, insurance, or other contingent 
payments to owners, mortgagors, or assignees of housing units and 
ancillary supporting facilities that are made available for use by 
members of the armed forces.
    ``(2) Contingencies under which payments may be made under such a 
contract include the following:
            ``(A) A failure to pay interest or principal on mortgages, 
        generally or as a result of a base closure or realignment, a 
        reduction in force, an extended deployment of assigned forces, 
        or similar contingencies.
            ``(B) A failure to achieve specified occupancy levels of, 
        or rental income from, housing units covered by a contract.
    ``(3) Such contracts may be on such terms and conditions as the 
Secretary concerned considers necessary or desirable to induce the 
provision of housing and ancillary supporting facilities, whether by 
acquisition or construction, for use by members of the armed forces, 
and to protect the financial interests of the United States.
    ``(b) Leases.--The Secretary concerned may enter into a contract 
for the lease of housing units to be acquired or constructed on or near 
a military installation. Such a contract may provide for the owner of 
the property to operate and maintain the facilities.
    ``(c) Differential Payments.--In entering into contracts under this 
subchapter, the Secretary concerned may make a differential payment in 
addition to rental payments made by individual members.
    ``(d) Investments.--(1) The Secretary concerned may make 
investments in nongovernmental entities involved in the acquisition or 
construction of housing and ancillary supporting facilities on or near 
a military installation for such consideration and upon such terms and 
conditions as the Secretary concerned determines to be consistent with 
the purposes of this subchapter and the public interest.
    ``(2) Such investments may take the form of limited partnership 
interests, stock, debt instruments, or a combination thereof.
    ``(3) The investment made by the Secretary concerned in an 
acquisition or construction project under this subsection, whether the 
investment is in the form of cash, land or buildings under section 
2872(j) of this title, or other form, may not exceed 35 percent of the 
capital costs of the acquisition or construction project.
    ``(e) Collateral Incentive Agreements.--The Secretary concerned may 
also enter into collateral incentive agreements in connection with 
investments made under subsection (d) to ensure that a suitable 
preference will be afforded members of the armed forces to lease or 
purchase, at affordable rates, a reasonable number of the housing units 
covered by the investment contract.
``Sec. 2876. Expiration of authority
    ``The authority of the Secretaries concerned to enter into 
contracts and partnerships and to make investments under this 
subchapter shall expire on September 30, 2000.''.
    (2) The table of subchapters at the beginning of chapter 169 of 
title 10, United States Code, is amended by inserting after the item 
relating to subchapter III the following new item:

 ``IV.  Alternative Provision of Military Family Housing        2871''.
SEC. 2802. INCLUSION OF OTHER ARMED FORCES IN NAVY PROGRAM OF LIMITED 
              PARTNERSHIPS WITH PRIVATE DEVELOPERS FOR MILITARY 
              HOUSING.

    (a) Expanded Authority for Housing Partnerships.--(1) Subchapter IV 
of chapter 169 of title 10, United States Code, as added by section 
2801, is amended by inserting after section 2873 the following new 
section:
Sec. ``2874. Limited partnerships with private developers of housing
    ``(a) Limited Partnerships.--In order to meet the housing 
requirements of members of the armed forces, and the dependents of such 
members, at a military installation described in section 2872(a) of 
this title, the Secretary concerned may enter into a limited 
partnership with one or more private developers to encourage the 
construction of housing and ancillary supporting facilities within 
commuting distance of the installation. Section 2875(d) of this title 
shall apply with respect to the investments the Secretary concerned may 
make toward development costs under a limited partnership.
    ``(b) Collateral Incentive Agreements.--The Secretary concerned may 
also enter into collateral incentive agreements with private developers 
who enter into a limited partnership under subsection (a) to ensure 
that, where appropriate--
            ``(1) a suitable preference will be afforded members of the 
        armed forces in the lease or purchase, as the case may be, of a 
        reasonable number of the housing units covered by the limited 
        partnership; or
            ``(2) the rental rates or sale prices, as the case may be, 
        for some or all of such units will be affordable for such 
        members.
    ``(c) Selection of Investment Opportunities.--(1) The Secretary 
concerned shall use publicly advertised, competitively bid or 
competitively negotiated, contracting procedures, as provided in 
chapter 137 of this title, to enter into limited partnerships under 
subsection (a).
    ``(2) When a decision is made by the Secretary concerned to enter 
into a limited partnership under subsection (a), the Secretary shall 
submit a report in writing to the appropriate committees of Congress on 
that decision. Each such report shall include the justification for the 
limited partnership, the terms and conditions of the limited 
partnership, a description of the development costs for projects under 
the limited partnership, and a description of the share of such costs 
to be incurred by the Secretary concerned. The Secretary concerned may 
then enter into the limited partnership only after the end of the 21-
day period beginning on the date the report is received by such 
committees.
    ``(d) Housing Investment Boards.--(1) Each Secretary concerned 
shall establish a housing investment board, which shall have the 
duties--
            ``(A) of advising the Secretary concerned regarding those 
        proposed limited partnerships under subsection (a), if any, 
        that are financially and otherwise sound investments for 
        meeting the objectives of this section;
            ``(B) of administering amounts in the Account established 
        under section 2873 of this title that are made available to the 
        Secretary concerned to carry out this section; and
            ``(C) of performing such other tasks as the Secretary 
        concerned determines to be necessary and appropriate to assist 
        the Secretary to carry out the duties of the Secretary under 
        this section.
    ``(2) A housing investment board shall be composed of seven members 
appointed for a two-year term by the Secretary concerned. Among such 
members, the Secretary concerned may appoint two persons from the 
private sector who have knowledge and experience in the financing and 
the construction of housing. The Secretary concerned shall designate 
one of the members as chairperson.
    ``(3) Members of a housing investment board, other than those 
members regularly employed by the Federal Government, may be paid while 
attending meetings of the board or otherwise serving at the request of 
the Secretary concerned, compensation at a rate equal to the daily 
equivalent of the minimum annual rate of basic pay payable for level IV 
of the Executive Schedule under section 5315 of title 5 for each day 
(including travel time) during which the member is engaged in the 
actual performance of duties vested in the board. Members shall receive 
travel expenses, including per diem in lieu of subsistence, in 
accordance with sections 5702 and 5703 of title 5.
    ``(4) The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the housing investment boards.
    ``(5) The housing investment boards shall terminate on September 
30, 2000.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by inserting after the item relating to section 2873 the 
following new item:

``2874. Limited partnerships with private developers of housing.''.
    (b) Proceeds from Participation in Partnerships.--Section 2873(b) 
of title 10, United States Code, as added by section 2801, is amended 
by adding at the end the following new paragraph:
            ``(4) Proceeds received by the Secretary concerned from the 
        repayment of investments or profits on investments of the 
        Secretary under section 2874(a) of this title.''.
    (c) Conforming Repeal.--(1) Section 2837 of title 10, United States 
Code, is repealed. The repeal of such section shall not be construed to 
affect the validity or terms of any limited partnership or collateral 
incentive agreement entered into by the Secretary of the Navy under 
such section before the date of the enactment of this Act. Amounts in 
the Navy Housing Investment Account shall be transferred to the 
Department of Defense Family Housing Improvement Fund established under 
section 2873 of such title, as added by section 2801.
    (2) The table of sections at the beginning of subchapter II of 
chapter 169 of title 10, United States Code, is amended by striking out 
the item relating to section 2837.
SEC. 2803. SPECIAL UNSPECIFIED MINOR CONSTRUCTION THRESHOLDS FOR 
              PROJECTS TO CORRECT LIFE, HEALTH, AND SAFETY DEFICIENCIES 
              AND CLARIFICATION OF UNSPECIFIED MINOR CONSTRUCTION 
              AUTHORITY.

    (a) Special Thresholds.--Section 2805 of title 10, United States 
Code, is amended--
            (1) in subsection (a)(1), by adding at the end the 
        following new sentence: ``However, if the military construction 
        project is intended solely to correct a life, health, or safety 
        deficiency, a minor military construction project may have an 
        approved cost equal to or less than $3,000,000.''; and
            (2) in subsection (c)(1), by striking out ``not more than 
        $300,000.'' and inserting in lieu thereof the following: ``not 
        more than--
            ``(A) $1,000,000, in the case of an unspecified military 
        construction project intended solely to correct a life, health, 
        or safety deficiency; or
            ``(B) $300,000, in the case of other unspecified military 
        construction projects.''.
    (b) Description of Minor Construction.--Subsection (a)(1) of such 
section is further amended by striking out ``(1) that is for a single 
undertaking at a military installation, and (2)''.
SEC. 2804. DISPOSITION OF AMOUNTS RECOVERED AS A RESULT OF DAMAGE TO 
              REAL PROPERTY.

    (a) In General.--Chapter 165 of title 10, United States Code, is 
amended by inserting after section 2781 the following new section:
``Sec. 2782. Damage to real property: disposition of amounts recovered
    ``Except as provided in section 2775 of this title, amounts 
recovered for damage caused to real property under the jurisdiction of 
the Secretary of a military department or, with respect to the Defense 
Agencies, under the jurisdiction of the Secretary of Defense shall be 
credited to the account available for the repair or replacement of the 
real property at the time of recovery. In such amounts as are provided 
in advance in appropriation Acts, amounts so credited shall be 
available for use for the same purposes and under the same 
circumstances as other funds in the account.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2781 the following new item:

``2782. Damage to real property: disposition of amounts recovered.''.
SEC. 2805. RENTAL OF FAMILY HOUSING IN FOREIGN COUNTRIES.

    Section 2828(e) of title 10, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking out ``300 units'' in the first 
                sentence and inserting in lieu thereof ``450 units''; 
                and
                    (B) by striking out ``220 such units'' in the 
                second sentence and inserting in lieu thereof ``350 
                such units''; and
            (2) in paragraph (2), by striking out ``300 units'' and 
        inserting in lieu thereof ``450 units''.
SEC. 2806. PILOT PROGRAM TO PROVIDE INTEREST RATE BUY DOWN AUTHORITY ON 
              LOANS FOR HOUSING WITHIN HOUSING SHORTAGE AREAS AT 
              MILITARY INSTALLATIONS.

    (a) Short Title.--This section may be cited as the ``Military 
Housing Assistance Act of 1995''.
    (b) Mortgage Assistance Payment Authority of the Secretary of 
Veterans Affairs.--(1) Chapter 37 of title 38, United States Code, is 
amended by inserting after section 3707 the following:
``Sec. 3708. Authority to buy down interest rates: pilot program
    ``(a) In order to enable the purchase of housing in areas where the 
supply of suitable military housing is inadequate, the Secretary may 
conduct a pilot program under which the Secretary may make periodic or 
lump sum assistance payments on behalf of an eligible veteran for the 
purpose of buying down the interest rate on a loan to that veteran that 
is guaranteed under this chapter for a purpose described in paragraph 
(1), (2), (3), (6), or (10) of section 3710(a).
    ``(b) An individual is an eligible veteran for the purposes of this 
section if--
            ``(1) the individual is a veteran, as defined in section 
        3701(b)(4) of this title, or is on active Guard and Reserve 
        duty, as defined by section 101(d) of title 10;
            ``(2) the individual submits an application for a loan 
        guaranteed under this chapter within one year of an assignment 
        of the individual to duty at a military installation in the 
        United States designated by the Secretary of Defense as a 
        housing shortage area;
            ``(3) at the time the loan referred to in subsection (a) is 
        made, the individual is an enlisted member, warrant officer, or 
        an officer (other than a warrant officer) at a pay grade of O-3 
        or below;
            ``(4) the individual has not previously used any of the 
        individual's entitlement to housing loan benefits under this 
        chapter; and
            ``(5) the individual receives comprehensive prepurchase 
        counseling from the Secretary (or the designee of the 
        Secretary) before making application for a loan guaranteed 
        under this chapter.
    ``(c) Loans with respect to which the Secretary may exercise the 
buy down authority under subsection (a) shall--
            ``(1) provide for a buy down period of not more than three 
        years in duration;
            ``(2) specify the maximum and likely amounts of increases 
        in mortgage payments that the loans would require; and
            ``(3) be subject to such other terms and conditions as the 
        Secretary may prescribe by regulation.
    ``(d) The Secretary shall promulgate underwriting standards for 
loans for which the interest rate assistance payments may be made under 
subsection (a). Such standards shall be based on the interest rate for 
the second year of the loan.
    ``(e) The Secretary or lender shall provide comprehensive 
prepurchase counseling to eligible veterans explaining the features of 
interest rate buy downs under subsection (a), including a hypothetical 
payment schedule that displays the increases in monthly payments to the 
mortgagor over the first five years of the mortgage term. For the 
purposes of this subsection, the Secretary may assign personnel to 
military installations referred to in subsection (b)(2).
    ``(f) There is authorized to be appropriated $3,000,000 annually to 
carry out this section.
    ``(g) The Secretary may not guarantee a loan under this chapter 
after September 30, 1998, on which the Secretary is obligated to make 
payments under this section.''.
    (2) The table of sections at the beginning of chapter 37 of title 
38, United States Code, is amended by inserting after the item relating 
to section 3707 to following new item:

``3708. Authority to buy down interest rates: pilot program.''.
    (c) Authority of Secretary of Defense.--
            (1) Reimbursement for buy down costs.--The Secretary of 
        Defense shall reimburse the Secretary of Veterans Affairs for 
        amounts paid by the Secretary of Veterans Affairs to mortgagees 
        under section 3708 of title 38, United States Code.
            (2) Designation of housing shortage areas.--For purposes of 
        section 3708 of title 38, United States Code, the Secretary of 
        Defense may designate as a housing shortage area a military 
        installation in the United States at which the Secretary 
        determines there is a shortage of suitable housing to meet the 
        military family needs of members of the Armed Forces and the 
        dependents of such members.
            (3) Report.--Not later than six months after September 30, 
        1998, the Secretary shall submit a report to Congress regarding 
        the effectiveness in providing housing to members of the Armed 
        Forces and their dependents through the provisions of this 
        subsection and section 3708 of title 38, United States Code.
            (4) Earmark.--Of the amount provided in section 
        2405(a)(13)(B), $10,000,000 for fiscal year 1996 shall be 
        available to carry out this subsection.
            (5) Sunset.--This subsection shall not apply with respect 
        to housing loans guaranteed after September 30, 1998, for which 
        assistance payments are paid under section 3708 of title 38, 
        United States Code.
                Subtitle B--Base Closure and Realignment
SEC. 2811. AUTHORITY TO TRANSFER PROPERTY AT MILITARY INSTALLATIONS TO 
              BE CLOSED TO PERSONS WHO CONSTRUCT OR PROVIDE MILITARY 
              FAMILY HOUSING.

    (a) Base Closures Under 1988 Act.--Section 204 of the Defense 
Authorization Amendments and Base Closure and Realignment Act (title II 
of Public Law 100-526; 10 U.S.C. 2687 note) is amended by adding at the 
end the following new subsection:
    ``(e) Transfer Authority in Connection With Construction or 
Provision of Military Family Housing.--(1) Subject to paragraph (2), 
the Secretary may enter into an agreement to transfer by deed real 
property or facilities located at an installation closed or to be 
closed under this title with any person who agrees, in exchange for the 
real property or facilities, to transfer to the Secretary housing units 
that are constructed or provided by the person and located at or near a 
military installation at which there is a shortage of suitable housing 
to meet the requirements of members of the Armed Forces and their 
dependents. The Secretary may not select real property for transfer 
under this paragraph if the property is identified in the redevelopment 
plan for the installation as items essential to the reuse or 
redevelopment of the installation.
    ``(2) A transfer of real property or facilities may be made under 
paragraph (1) only if--
            ``(A) the fair market value of the housing units to be 
        received by the Secretary in exchange for the property or 
        facilities to be transferred is equal to or greater than the 
        fair market value of such property or facilities, as determined 
        by the Secretary; or
            ``(B) the recipient of the property or facilities agrees to 
        pay to the Secretary the difference between the fair market 
        values if the fair market value of the housing units is lower 
        than the fair market value of the property or facilities to be 
        transferred.
    ``(3) Notwithstanding section 207(a)(7), the Secretary shall 
deposit funds received under paragraph (2)(B) in the Department of 
Defense Family Housing Improvement Fund established under section 
2873(a) of title 10, United States Code.
    ``(4) The Secretary shall submit to the appropriate committees of 
Congress a report describing each agreement proposed to be entered into 
under paragraph (1), including the consideration to be received by the 
United States under the agreement. The Secretary may not enter into the 
agreement until the end of the 21-day period beginning on the date the 
appropriate committees of Congress receive the report regarding the 
agreement.
    ``(5) The Secretary may require any additional terms and conditions 
in connection with an agreement authorized by this subsection as the 
Secretary considers appropriate to protect the interests of the United 
States.''.
    (b) Base Closures Under 1990 Act.--Section 2905 of the Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note) is amended by adding at the end the 
following new subsection:
    ``(f) Transfer Authority in Connection With Construction or 
Provision of Military Family Housing.--(1) Subject to paragraph (2), 
the Secretary may enter into an agreement to transfer by deed real 
property or facilities located at an installation closed or to be 
closed under this part with any person who agrees, in exchange for the 
real property or facilities, to transfer to the Secretary housing units 
that are constructed or provided by the person and located at or near a 
military installation at which there is a shortage of suitable housing 
to meet the requirements of members of the Armed Forces and their 
dependents. The Secretary may not select real property for transfer 
under this paragraph if the property is identified in the redevelopment 
plan for the installation as items essential to the reuse or 
redevelopment of the installation.
    ``(2) A transfer of real property or facilities may be made under 
paragraph (1) only if--
            ``(A) the fair market value of the housing units to be 
        received by the Secretary in exchange for the property or 
        facilities to be transferred is equal to or greater than the 
        fair market value of such property or facilities, as determined 
        by the Secretary; or
            ``(B) the recipient of the property or facilities agrees to 
        pay to the Secretary the difference between the fair market 
        values if the fair market value of the housing units is lower 
        than the fair market value of the property or facilities to be 
        transferred.
    ``(3) Notwithstanding section 2906(a)(2), the Secretary shall 
deposit funds received under paragraph (2)(B) in the Department of 
Defense Family Housing Improvement Fund established under section 
2873(a) of title 10, United States Code.
    ``(4) The Secretary shall submit to the appropriate committees of 
Congress a report describing each agreement proposed to be entered into 
under paragraph (1), including the consideration to be received by the 
United States under the agreement. The Secretary may not enter into the 
agreement until the end of the 30-day period beginning on the date the 
appropriate committees of Congress receive the report regarding the 
agreement.
    ``(5) The Secretary may require any additional terms and conditions 
in connection with an agreement authorized by this subsection as the 
Secretary considers appropriate to protect the interests of the United 
States.''.
    (c) Regulations.--Not later than nine months after the date of the 
enactment of this Act, the Secretary of Defense shall prescribe any 
regulations necessary to carry out subsection (e) of section 204 of the 
Defense Authorization Amendments and Base Closure and Realignment Act 
(title II of Public Law 100-526; 10 U.S.C. 2687 note), as added by 
subsection (a), and subsection (f) of section 2905 of the Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note), as added by subsection (b).

SEC. 2812. DEPOSIT OF PROCEEDS FROM LEASES OF PROPERTY LOCATED AT 
              INSTALLATIONS BEING CLOSED OR REALIGNED.

    (a) Exception to Existing Requirements.--Section 2667(d) of title 
10, United States Code, is amended--
            (1) in paragraph (1)(A)(ii), by inserting ``or (5)'' after 
        ``paragraph (4)''; and
            (2) by adding at the end the following new paragraph:
    ``(5) Money rentals received by the United States from a lease 
under subsection (f) shall be deposited into the relevant account 
established under section 207(a) of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 100-526; 10 
U.S.C. 2687 note) or section 2906(a) of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note).''.
    (b) Corresponding Amendments to Base Closure Laws.--(1) Section 
207(a) of the Defense Authorization Amendments and Base Closure and 
Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note) is amended--
            (A) in paragraph (2)--
                    (i) by striking out ``and'' at the end of 
                subparagraph (B);
                    (ii) by striking out the period at the end of 
                subparagraph (C) and inserting in lieu thereof ``; 
                and''; and
                    (iii) by adding at the end the following new 
                subparagraph:
            ``(D) proceeds from leases of property under section 
        2667(f) of title 10, United States Code, at a military 
        installation to be closed or realigned under this title.''; and
            (B) in paragraph (7), by striking out ``transfer or 
        disposal'' and inserting in lieu thereof ``lease, transfer, or 
        disposal''.
    (2) Section 2906(a)(2) of the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2867 
note) is amended--
            (A) in subparagraph (C), by striking out ``transfer or 
        disposal'' and inserting in lieu thereof ``lease, transfer, or 
        disposal''; and
            (B) in subparagraph (D), by striking out ``transfer or 
        disposal'' and inserting in lieu thereof ``lease, transfer, or 
        disposal''.

SEC. 2813. AGREEMENTS FOR CERTAIN SERVICES AT INSTALLATIONS BEING 
              CLOSED.

    (a) Closures Under 1988 Act.--Section 204(b)(8) of the Defense 
Authorization Amendments and Base Closure and Realignment Act (Public 
Law 100-526; 10 U.S.C. 2687 note) is amended by striking out 
subparagraph (A) and inserting in lieu thereof the following new 
subparagraph:
    ``(A) Subject to subparagraph (C), the Secretary may enter into 
agreements (including contracts, cooperative agreements, or other 
arrangements for reimbursement) with local governments for the 
provision of police or security services, fire protection services, 
airfield operation services, or other community services by such 
governments at military installations to be closed under this title if 
the Secretary determines that the provision of such services under such 
an agreement is in the best interests of the Department of Defense.''.
    (b) Closures Under 1990 Act.--Section 2905(b)(8) of the Defense 
Base Closure and Realignment Act of 1990 (part A of title XXIX of 
Public Law 101-510; 10 U.S.C. 2867 note) is amended by striking out 
subparagraph (A) and inserting in lieu thereof the following new 
subparagraph:
    ``(A) Subject to subparagraph (C), the Secretary may enter into 
agreements (including contracts, cooperative agreements, or other 
arrangements for reimbursement) with local governments for the 
provision of police or security services, fire protection services, 
airfield operation services, or other community services by such 
governments at military installations to be closed under this part if 
the Secretary determines that the provision of such services under such 
an agreement is in the best interests of the Department of Defense.''.
SEC. 2814. REMOVAL OF BASE CLOSURE PROPERTIES FROM APPLICATION OF 
              SECTION 501 OF THE STEWART B. MCKINNEY HOMELESS 
              ASSISTANCE ACT.

    (a) Closures Under 1988 Act.--(1) Section 204(b) of the Defense 
Authorization Amendments and Base Closure and Realignment Act (Public 
Law 100-526; 10 U.S.C. 2687 note) is amended by striking out paragraph 
(6) and inserting in lieu thereof the following new paragraph:
    ``(6) Section 501 of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11411) shall not apply with respect to the transfer or 
disposal of real property located at military installations closed or 
realigned under this title.''.
    (b) Closures Under 1990 Act.--(1) Section 2905(b) of the Defense 
Base Closure and Realignment Act of 1990 (part A of title XXIX of 
Public Law 101-510; 10 U.S.C. 2687 note) is amended by striking out 
paragraphs (6) and (7) and inserting in lieu thereof the following new 
paragraph:
    ``(7) Section 501 of the Stewart B. McKinney Homeless Assistance 
Act (42 U.S.C. 11411) shall not apply with respect to the transfer or 
disposal of real property located at military installations closed or 
realigned under this part.''.
                 Subtitle C--Land Conveyances Generally
SEC. 2821. TRANSFER OF JURISDICTION, FORT SAM HOUSTON, TEXAS.

    (a) Transfer of Land for National Cemetery.--The Secretary of the 
Army may transfer, without reimbursement, to the administrative 
jurisdiction of the Secretary of Veterans Affairs a parcel of real 
property (including any improvements thereon) consisting of 
approximately 53 acres and comprising a portion of Fort Sam Houston, 
Texas.
    (b) Use of Land.--The Secretary of Veterans Affairs shall use the 
real property transferred under subsection (a) as a national cemetery 
under chapter 24 of title 38, United States Code.
    (c) Return of Unused Land.--If the Secretary of Veterans Affairs 
determines that any portion of the real property transferred under 
subsection (a) is not needed for use as a national cemetery, the 
Secretary of Veterans Affairs shall return such portion to the 
administrative jurisdiction of the Secretary of the Army.
    (d) Legal Description.--The exact acreage and legal description of 
the real property to be transferred under this section shall be 
determined by surveys that are satisfactory to the Secretary of the 
Army. The cost of such surveys shall be borne by the Secretary of 
Veterans Affairs.
    (e) Additional Terms and Conditions.--The Secretary of the Army may 
require such additional terms and conditions in connection with the 
transfer under this section as the Secretary of the Army considers 
appropriate to protect the interests of the United States.

SEC. 2822. LAND ACQUISITION OR EXCHANGE, SHAW AIR FORCE BASE, SUMTER, 
              SOUTH CAROLINA.

    (a) Land Acquisition.--By means of an exchange of property, 
acceptance as a gift, or other means that does not require the use of 
appropriated funds, the Secretary of the Air Force may acquire all 
right, title, and interest in and to a parcel of real property 
(together with any improvements thereon) consisting of approximately 
1,100 acres and located adjacent to the eastern end of Shaw Air Force 
Base, South Carolina, and extending to Stamey Livestock Road in Sumter 
County, South Carolina.
    (b) Land Exchange Authorized.--For purposes of acquiring the real 
property described in subsection (a), the Secretary may participate in 
a land exchange and convey all right, title, and interest of the United 
States in and to a parcel of real property in the possession of the Air 
Force if--
            (1) the Secretary determines that the land exchange is in 
        the best interests of the Air Force; and
            (2) the fair market value of the Air Force parcel to be 
        conveyed does not exceed the fair market value of the parcel to 
        be acquired.
    (c) Determinations of Fair Market Value.--The Secretary shall 
determine the fair market value of the parcels of real property to be 
conveyed pursuant to subsections (a) and (b). Such determinations shall 
be final.
    (d) Descriptions of Property.--The exact acreage and legal 
descriptions of the parcels of real property to be conveyed pursuant to 
subsections (a) and (b) shall be determined by surveys that are 
satisfactory to the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the acquisition 
under subsection (a) or conveyance under subsection (b) as the 
Secretary considers appropriate to protect the interests of the United 
States.
    (f) Reversion of Gift Conveyance.--If the Secretary acquires the 
real property described in subsection (a) by way of gift, the Secretary 
may accept in the deed of conveyance terms or conditions that require 
that the land be reconveyed to the donor, or the heirs of the donor, if 
Shaw Air Force Base ceases operations and is closed.

SEC. 2823. TRANSFER OF CERTAIN REAL PROPERTY AT NAVAL WEAPONS 
              INDUSTRIAL RESERVE PLANT, CALVERTON, NEW YORK, FOR USE AS 
              NATIONAL CEMETERY.

    (a) Transfer Authorized.--Notwithstanding section 2854 of the 
Military Construction Authorization Act for Fiscal Year 1993 (division 
B of Public Law 102-484; 106 Stat. 2626), the Secretary of the Navy may 
transfer, without reimbursement, to the Secretary of Veterans Affairs a 
parcel of real property consisting of approximately 150 acres located 
adjacent to the Calverton National Cemetery, Calverton, New York, and 
comprising a portion of the buffer zone of the Naval Weapons Industrial 
Reserve Plant, Calverton.
    (b) Use of Property.--The Secretary of Veterans Affairs shall use 
the real property transferred under subsection (a) as an addition to 
the Calverton National Cemetery and administer such real property 
pursuant to chapter 24 of title 38, United States Code.
    (c) Surveys.--The cost of any surveys necessary for the transfer of 
jurisdiction of the real property described in subsection (a) from the 
Secretary of the Navy to the Secretary of Veterans Affairs shall be 
borne by the Secretary of Veterans Affairs.

SEC. 2824. LAND CONVEYANCE, FORT ORD, CALIFORNIA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
the City of Seaside, California (in this section referred to as the 
``City''), all right, title, and interest of the United States in and 
to a parcel of real property (including improvements thereon) 
consisting of approximately 477 acres located in Monterey County, 
California, and comprising a portion of the former Fort Ord Military 
Complex. The real property to be conveyed to the City includes the two 
Fort Ord Golf Courses, Black Horse and Bayonet, and the Hayes Housing 
Facilities.
    (b) Consideration.--As consideration for the conveyance of the real 
property and improvements under subsection (a), the City shall pay to 
the United States an amount equal to the fair market value of the 
property to be conveyed, as determined by the Secretary under such 
terms and conditions as are determined to be fair and equitable to both 
parties.
    (c) Use and Deposit of Proceeds.--(1) From the funds paid by the 
City under subsection (b), the Secretary shall deposit in the Morale, 
Welfare, and Recreation Fund Account of the Department of the Army an 
amount equal to the portion of such funds corresponding to the fair 
market value of the two Fort Ord Golf Courses conveyed under subsection 
(a), as established under subsection (b).
    (2) The Secretary shall deposit the balance of the funds paid by 
the City under subsection (b), after deducting the amount deposited 
under paragraph (1), in the Department of Defense Base Closure Account 
1990.
    (d) Description of Property.--The exact acreage and legal 
description of the real property (including improvements thereon) to be 
conveyed under subsection (a) shall be determined by a survey 
satisfactory to the Secretary and the City. The cost of the survey 
shall be borne by the City.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2825. LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT, CHARLESTOWN, 
              INDIANA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the State of Indiana (in this section 
referred to as the ``State''), all right, title, and interest of the 
United States in and to a parcel of real property, including any 
improvements thereon, that consists of approximately 1125 acres at the 
inactivated Indiana Army Ammunition Plant in Charlestown, Indiana, and 
is the subject of a 25-year lease between the Secretary and the State.
    (b) Condition of Conveyance.--The conveyance authorized under 
subsection (a) shall be subject to the condition that the State use the 
conveyed property for recreational purposes.
    (c) 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 such survey shall be borne by the State.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2826. LAND CONVEYANCE, NAVAL AIR STATION, PENSACOLA, FLORIDA.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey to 
West Florida Developers, Inc. (in this section referred to as ``WFD''), 
all right, title, and interest of the United States in and to a parcel 
of unimproved real property consisting of approximately 135 acres at 
Naval Air Station, Pensacola, Florida.
    (b) Consideration.--(1) As consideration for the conveyance under 
subsection (a), WFD shall agree to restrict the use of all lands 
located within the Air Installation Compatible Use Zones of Naval Air 
Station Pensacola and owned by WFD at the time of the conveyance under 
subsection (a) in such manner as specified by the Secretary. The lands 
subject to such restriction shall total at least 300 acres.
    (2) If the fair market value of the property conveyed under 
subsection (a) is more than the fair market value of the restriction on 
usage under paragraph (1), WFD shall pay to the United States an amount 
equal to the difference between the fair market values.
    (c) Determination of Fair Market Value.--The Secretary shall 
determine the fair market value of the property to be conveyed under 
subsection (a) and the fair market value of the restriction on usage 
under subsection (b)(1). Such determination shall be final.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of such survey shall be borne by WFD.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
authorized by subsection (a) as the Secretary considers appropriate to 
protect the interests of the United States.
SEC. 2827. LAND CONVEYANCE, AVON PARK AIR FORCE RANGE, SEBRING, 
              FLORIDA.

    (a) Conveyance Authorized.--The Secretary of the Air Force may 
convey, without consideration, to Highlands County, Florida (in this 
section referred to as the ``County''), all right, title, and interest 
of the United States in and to a parcel of real property (including any 
improvements thereon) located within the boundaries of the Avon Park 
Air Force Range near Sebring, Florida, which has previously served as 
the location of a support complex and recreational facilities for the 
Avon Park Air Force Range.
    (b) Conditions of Conveyance.--The conveyance authorized under 
subsection (a) shall be subject to the conditions that the County--
            (1) directly or through an agreement with an appropriate 
        public or private entity, use the conveyed property, including 
        the support complex and recreational facilities, for operation 
        of a juvenile or other correctional facility; and
            (2) enter into an agreement with the Secretary to reconvey 
        the property to the United States if the Secretary determines 
        that the conveyed property is necessary to accomplish the 
        military mission of the Avon Park Air Force Range.
    (c) Reversionary Interest.--If the Secretary determines at any time 
that the property conveyed under subsection (a) is not being used in 
accordance with subsection (b), all right, title, and interest in the 
property shall revert to the United States, and the United States shall 
have the right of immediate entry onto the property.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of such survey shall be borne by the County.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2828. LAND CONVEYANCE, PARKS RESERVE FORCES TRAINING AREA, DUBLIN, 
              CALIFORNIA.

    (a) Conveyance Authorized.--(1) Except as provided in paragraph 
(2), the Secretary of the Army may convey to the County of Alameda, 
California (in this section referred to as the ``County''), all right, 
title, and interest of the United States in and to a parcel of real 
property consisting of approximately 31 acres, together with 
improvements thereon, located at Parks Reserve Forces Training Area, 
Dublin, California.
    (2) The conveyance authorized by this section shall not include any 
oil, gas, or mineral interest of the United States in the real property 
to be conveyed.
    (b) Consideration.--(1) As consideration for the conveyance under 
subsection (a)(1), the County shall provide the Army with services at 
the portion of Parks Reserve Forces Training Area retained by the 
Army--
            (A) to relocate the main gate of the retained Army Training 
        Area from Dougherty Road to Dublin Boulevard across from the 
        Bay Area Rapid Transit District East Dublin station, including 
        the closure of the existing main gate on Dougherty Road, 
        construction of a security facility, and construction of a 
        roadway from the new entrance to Fifth Street;
            (B) to fence and landscape the southern boundary of the 
        retained Army Training Area installation located northerly of 
        Dublin Boulevard;
            (C) to fence and landscape the eastern boundary of the 
        retained Army Training Area from Dublin Boulevard to Gleason 
        Drive;
            (D) to resurface roadways within the retained Army Training 
        Area;
            (E) to provide such other services in connection with the 
        retained Army Training Area, including relocation or 
        reconstruction of water lines, relocation or reconstruction of 
        sewer lines, construction of drainage improvements, and 
        construction of buildings, as the Secretary and the County may 
        determine to be appropriate; and
            (F) to provide for and fund any environmental mitigation 
        that is necessary as a result of a change in use of the 
        conveyed property by the County.
    (2) The detailed specifications for the services to be provided 
under paragraph (1) may be determined and approved on behalf of the 
Secretary by the Commander of Parks Reserve Forces Training Area. The 
preparation costs of such specifications shall be borne by the County.
    (3) The value of improvements and services received by the United 
States from the County under paragraph (1) must be equal to or exceed 
the appraised value of the real property to be conveyed under 
subsection (a)(1). The appraisal of the value of the property shall be 
subject to Government review and approval.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a)(1) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of such survey shall be borne by the County.
    (d) Time for Transfer of Title.--The transfer of title to the 
County under subsection (a)(1) may be executed by the Secretary only 
upon the satisfactory guarantee by the County of completion of the 
services to be provided under subsection (b).
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a)(1) as the Secretary considers appropriate to 
protect the interests of the United States.
SEC. 2829. LAND CONVEYANCE, HOLSTON ARMY AMMUNITION PLANT, MOUNT 
              CARMEL, TENNESSEE.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without reimbursement, to the City of Mount Carmel, Tennessee (in this 
section referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of real property consisting of 
approximately 6.5 acres, together with any improvements thereon, 
located at Holston Army Ammunition Plant, Tennessee. The property is 
located adjacent to the Mount Carmel Cemetery and is intended for 
expansion of the cemetery.
    (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 such survey shall be borne by the City.
    (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. 2830. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL RESERVE PLANT, 
              MCGREGOR, TEXAS.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey, 
without consideration, to the City of McGregor, Texas (in this section 
referred to as the ``City''), all right, title, and interest of the 
United States in and to a parcel of real property, including any 
improvements thereon, containing the Naval Weapons Industrial Reserve 
Plant in McGregor, Texas. After screening the facilities, equipment, 
and fixtures (including special tooling and special test equipment) 
located on the parcel for other uses within the Department of the Navy, 
the Secretary may include in the conveyance remaining facilities, 
equipment, and fixtures if the Secretary determines that manufacturing 
activities requiring the use of such facilities, equipment, and 
fixtures are likely to continue or be reinstated on the parcel after 
conveyance.
    (b) Lease Authority.--Until such time as the real property 
described in subsection (a) is conveyed by deed, the Secretary may 
lease the property, along with improvements thereon, to the City in 
exchange for security services, fire protection, and maintenance 
provided by the City for the property.
    (c) Condition of Conveyance.--The conveyance authorized under 
subsection (a) shall be subject to the condition that the City, 
directly or through an agreement with a public or private entity, use 
the conveyed property (or offer the conveyed property for use) for 
economic redevelopment to replace all or a part of the economic 
activity being lost at the parcel.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of such survey shall be borne by the City.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) or a lease under subsection (b) as the Secretary 
considers appropriate to protect the interests of the United States.
SEC. 2831. TRANSFER OF JURISDICTION AND LAND CONVEYANCE, FORT DEVENS 
              MILITARY RESERVATION, MASSACHUSETTS.

    (a) Transfer of Land for Wildlife Refuge.--Subject to subsection 
(b), the Secretary of the Army shall transfer, without reimbursement, 
to the administrative jurisdiction of the Secretary of the Interior 
that portion of Fort Devens Military Reservation in the State of 
Massachusetts that is situated south of Massachusetts State Route 2, 
for inclusion in the Oxbow National Wildlife Refuge. The transfer shall 
be made as soon as possible after the date on which the property is 
determined to be excess to the needs of the Department of Defense.
    (b) Land Conveyance Authorized.--The Secretary of the Army shall 
convey to the Town of Lancaster, Massachusetts (in this section 
referred to as the ``Town''), all right, title, and interest of the 
United States in and to a parcel of real property consisting of 
approximately 100 acres of the parcel available for transfer under 
subsection (a) and located adjacent to Massachusetts State Highway 70.
    (c) Legal Description.--(1) The exact acreage and legal description 
of the real property to be transferred under subsection (a) shall be 
determined by surveys that are mutually satisfactory to the Secretary 
of the Army and the Secretary of the Interior. The cost of such surveys 
shall be borne by the Secretary of the Interior.
    (2) The exact acreage and legal description of the real property to 
be conveyed under subsection (b) shall be determined by surveys that 
are mutually satisfactory to the Secretary of the Army, the Secretary 
of the Interior, and the Board of Selectman of the Town. The cost of 
such surveys shall be borne by the Town.
    (d) Additional Terms and Conditions.--The Secretary of the Army may 
require such additional terms and conditions in connection with the 
transfer and conveyance under this section as the Secretary of the Army 
considers appropriate to protect the interests of the United States.
SEC. 2832. LAND CONVEYANCE, ELMENDORF AIR FORCE BASE, ALASKA.

    (a) Sale to Private Person Authorized.--(1) The Secretary of the 
Air Force may sell to a private person all right, title, and interest 
of the United States in and to a parcel of real property consisting of 
approximately 31.69 acres that is located at Elmendorf Air Force Base, 
Anchorage, Alaska, and identified in land lease W-95-507-ENG-58.
    (2) The Secretary may select as purchaser of the real property such 
private person as the Secretary, in the sole exercise of the 
Secretary's discretion, considers appropriate. The conveyance shall be 
subject to the condition that the purchaser agree to provide 
appropriate maintenance for the apartment complex located on the 
property to be conveyed and used by members of the Armed Forces 
stationed at Elmendorf Air Force Base and their dependents.
    (b) Consideration.--In consideration for the conveyance under 
subsection (a), the purchaser shall pay to the United States an amount 
equal to the fair market value of the real property to be conveyed, as 
determined by an appraisal satisfactory to the Secretary. In 
determining the fair market value of the real property, the Secretary 
shall consider the property as encumbered by land lease W-95-507-ENG-
58, with an expiration date of June 13, 2024.
    (c) Deposit of Proceeds.--The Secretary shall deposit the amount 
received from the purchaser under subsection (b) in the special account 
established under section 204(h)(2) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 585(h)(2)).
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of such survey shall be borne by the purchaser.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2833. LAND CONVEYANCE ALTERNATIVE TO EXISTING LEASE AUTHORITY, 
              NAVAL SUPPLY CENTER, OAKLAND, CALIFORNIA.

    Section 2834(b) of the Military Construction Authorization Act for 
Fiscal Year 1993 (division B of Public Law 102-484; 106 Stat. 2614), as 
amended by section 2833 of the Military Construction Authorization Act 
for Fiscal Year 1994 (division B of Public Law 103-160) and section 
2821 of the Military Construction Authorization Act for Fiscal Year 
1995 (division B of Public Law 103-337), is further amended by adding 
at the end the following new paragraphs:
    ``(4) In lieu of entering into a lease under paragraph (1), or in 
place of an existing lease under such paragraph, the Secretary may 
convey, without consideration, the property described in such paragraph 
to the City of Oakland, California, the Port of Oakland, California, or 
the City of Alameda, California, under such terms and conditions as the 
Secretary considers appropriate.
    ``(5) The exact acreage and legal description of any property 
conveyed under paragraph (4) shall be determined by a survey 
satisfactory to the Secretary. The cost of each survey shall be borne 
by the recipient of the property.''.
SEC. 2834. LAND CONVEYANCE, ARMY RESERVE CENTER, YOUNGSTOWN, OHIO.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the City of Youngstown, Ohio, all right, 
title, and interest of the United States in and to a parcel of excess 
real property, including improvements thereon, that is located at 399 
Miller Street in Youngstown, Ohio, and contains the Kefurt Army Reserve 
Center.
    (b) Condition of Conveyance.--The conveyance authorized under 
subsection (a) shall be subject to the condition that the City of 
Youngstown retain the conveyed property for the use and benefit of the 
Youngstown Fire Department.
    (c) 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 such survey shall be borne by the City of Youngstown.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2835. MODIFICATION OF LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL 
              RESERVE PLANT, CALVERTON, NEW YORK.

    (a) Condition on Conveyance.--Subsection (b) of section 2833 of the 
Military Construction Authorization Act for Fiscal Year 1995 (division 
B of Public Law 103-337; 108 Stat. 3061) is amended by striking out 
``to replace all or a part of the economic activity lost at the Naval 
Weapons Industrial Reserve Plant''.
    (b) Removal of Reversionary Interest; Addition of Lease 
Authority.--Subsection (c) of such section is amended to read as 
follows:
    ``(c) Lease Authority.--Until such time as the real property 
described in subsection (a) is conveyed by deed, the Secretary may 
lease the property, along with improvements thereon, to the Community 
Development Agency in exchange for security services, fire protection, 
and maintenance provided by the Community Development Agency for the 
property.''.
    (c) Conforming Amendments.--Subsection (e) of such section is 
amended by striking out ``subsection (a)'' and inserting in lieu 
thereof ``subsection (a) or a lease under subsection (c)''.
SEC. 2836. LAND EXCHANGE, FORT LEWIS, WASHINGTON.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
Weyerhaeuser Real Estate Company, Tacoma, Washington (in this section 
referred to as ``WRECO''), all right, title, and interest of the United 
States in and to a parcel of real property at Fort Lewis, Washington, 
known as an unimproved portion of Tract 1000 (formerly being in the 
DuPont Steilacoom Road, consisting of approximately 1.23 acres), and 
Tract 26E, 0.03 acre.
    (b) Consideration.--As consideration for the conveyance authorized 
by subsection (a), WRECO shall convey or cause to be conveyed to the 
United States by warranty deed all right, title, and interest in and to 
a 0.39 acre parcel of real property located within the boundaries of 
Fort Lewis, Washington, together with other consideration acceptable to 
the Secretary. The total consideration conveyed to the United States 
shall not be less than the fair market value of the land conveyed under 
subsection (a).
    (c) Determination of Fair Market Value.--The determinations of the 
Secretary of the Army regarding the fair market values of the parcels 
of real property and improvements to be conveyed pursuant to 
subsections (a) and (b) shall be final.
    (d) Description of Property.--The exact acreage and legal 
description of the parcels of real property to be conveyed pursuant to 
subsections (a) and (b) shall be determined by surveys that are 
satisfactory to the Secretary of the Army. The cost of such surveys 
shall be borne by WRECO.
    (e) Effect on Existing Reversionary Interest.--The Secretary may 
enter into an agreement with the appropriate officials of Pierce 
County, Washington, under which--
            (1) the existing reversionary interest of Pierce County in 
        the lands to be conveyed by the United States under subsection 
        (a) is extinguished; and
            (2) the conveyance to the United States under subsection 
        (b) is made subject to a similar reversionary interest in favor 
        of Pierce County in the lands conveyed under such subsection.
    (f) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyances 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.
SEC. 2837. MODIFICATION OF EXISTING LAND CONVEYANCE, HAMILTON AIR FORCE 
              BASE.

    (a) Authorities in Event of Partial Sale.--In the event that the 
purchaser purchases only a portion of the Sale Parcel and exercises its 
option to withdraw from the sale as to the rest of the Sale Parcel, the 
portion of the Sale Parcel that is not purchased (other than Landfill 
26 and an appropriate buffer area around it and the groundwater 
treatment facility site), together with any of the land referred to in 
section 9099(e) of Public Law 102-396 that is not purchased by the 
purchaser, may be sold to the City of Novato, in the State of 
California, for the sum of One Dollar as a public benefit transfer for 
school, classroom or other educational use, for use as a public park or 
recreation area or for further conveyance as provided herein, subject 
to the following restrictions: (1) if the City sells any portion of 
such land to any third party within 10 years after the transfer to the 
City, which sale may be made without the foregoing use restrictions, 
any proceeds received by the City in connection with such sale, minus 
the demonstrated reasonable costs of conducting the sale and of any 
improvements made by the City to the land following its acquisition of 
the land (but only to the extent such improvements increase the value 
of the portion sold), shall be immediately turned over to the Army in 
reimbursement of the withdrawal payment made by the Army to the 
contract purchaser and the costs of cleaning up the Landfill and (2) 
until one year following completion of the cleanup of contaminated soil 
in the Landfill and completion of the groundwater treatment facilities, 
the sale must be at a per-acre price for the portion sold that is at 
least equal to the per-acre contract price paid by the purchaser for 
the portion of the Sale Parcel purchased under the Agreement and 
Modification, as amended, and thereafter must be at a price at least 
equal to the fair market value of the portion sold. The foregoing 
restrictions shall not apply to a transfer to another public or quasi-
public agency for public uses of the kind described above. The deed to 
the City shall contain a clause providing that, if any of the proceeds 
referred to in clause (1) are not delivered to the Army within 30 days 
after sale, or any portion of the land not sold as provided herein is 
used for other than educational, park or recreational uses, title to 
the applicable portion of such land shall revert to the United States 
at the election of the Administrator of the General Services 
Administration. The Secretary of the Army shall agree to deliver into 
the applicable closing escrow an acknowledgement of receipt of any 
proceeds described in clause (1) above and a release of the reverter 
right as to the affected land, effective upon such receipt.
    (b) Special Conveyance Regarding Building 138 Parcel.--The 
Secretary of the Army may convey the Building 138 parcel, which has 
been designated by the parties as Parcel A4 to the purchaser of the 
Sale Parcel. The per-acre price for the portion sold shall be at least 
equal to the per-acre contract price paid by the purchaser for the 
portion of the Sale Parcel purchased under the Agreement and 
Modification, dated September 25, 1990, as amended.
SEC. 2838. TRANSFER OF JURISDICTION, FORT BLISS, TEXAS.

    (a) Transfer of Land for National Cemetery.--The Secretary of the 
Army may transfer, without reimbursement, to the administrative 
jurisdiction of the Secretary of Veterans Affairs a parcel of real 
property (including any improvements thereon) consisting of 
approximately 22 acres and comprising a portion of Fort Bliss, Texas.
    (b) Use of Land.--The Secretary of Veterans Affairs shall use the 
real property transferred under subsection (a) as an addition to the 
Fort Bliss National Cemetery and administer such real property pursuant 
to chapter 24 of title 38, United States Code.
    (c) Return of Unused Land.--If the Secretary of Veterans Affairs 
determines that any portion of the real property transferred under 
subsection (a) is not needed for use as a national cemetery, the 
Secretary of Veterans Affairs shall return such portion to the 
administrative jurisdiction of the Secretary of the Army.
    (d) Legal Description.--The exact acreage and legal description of 
the real property to be transferred under this section shall be 
determined by surveys that are satisfactory to the Secretary of the 
Army. The cost of such surveys shall be borne by the Secretary of 
Veterans Affairs.
    (e) Additional Terms and Conditions.--The Secretary of the Army may 
require such additional terms and conditions in connection with the 
transfer under this section as the Secretary of the Army considers 
appropriate to protect the interests of the United States.
            Subtitle D--Land Conveyances Involving Utilities
SEC. 2841. CONVEYANCE OF RESOURCE RECOVERY FACILITY, FORT DIX, NEW 
              JERSEY.

    (a) Authority to Convey.--The Secretary of the Army may convey to 
Burlington County, New Jersey (in this section referred to as the 
``County''), all right, title, and interest of the United States in and 
to a parcel of real property at Fort Dix, New Jersey, consisting of 
approximately two acres and containing a resource recovery facility, 
known as the Fort Dix resource recovery facility.
    (b) Related Easements.--The Secretary may grant to the County any 
easement that is necessary for access to and operation of the resource 
recovery facility conveyed under subsection (a).
    (c) Conditions on Conveyance.--The conveyance of the resource 
recovery facility authorized by subsection (a) is subject to the 
following conditions:
            (1) That the County accept the resource recovery facility 
        in its existing condition at the time of conveyance.
            (2) That the County provide refuse and steam service to 
        Fort Dix, New Jersey, at the rate established by the 
        appropriate Federal or State regulatory authority.
            (3) That the County comply with all applicable 
        environmental laws and regulations relating to the resource 
        recovery facility, including any permit or license 
        requirements.
            (4) That the County assume full responsibility for 
        ownership, operation, maintenance, repair, and all regulatory 
        compliance requirements for the resource recovery facility.
    (d) Condition on Expansion.--The conveyance of the resource 
recovery facility under subsection (a) shall also be subject to the 
condition that the County may not expand the resource recovery facility 
without prior approval by the Secretary.
    (e) Environmental Compliance.--The County shall be responsible for 
owning, operating, and upgrading the resource recovery facility in 
accordance with all applicable Federal, State, and municipal laws and 
regulations promulgated thereunder.
    (f) Description of the Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a), 
and of any easements to be granted under subsection (b), shall be 
determined by a survey satisfactory to the Secretary. The cost of such 
survey shall be borne by the County.
    (g) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) and the grant of any easement under subsection (b) 
as the Secretary considers appropriate to protect the interests of the 
United States.

SEC. 2842. CONVEYANCE OF WATER AND WASTEWATER TREATMENT PLANTS, FORT 
              GORDON, GEORGIA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
the city of Augusta, Georgia (in this section referred to as the 
``City''), all right, title, and interest of the United States to 
several parcels of real property located at Fort Gordon, Georgia, and 
consisting of approximately seven acres each. The parcels are improved 
with a water filtration plant, water distribution system with storage 
tanks, sewage treatment plant, and sewage collection system.
    (b) Related Easements.--The Secretary may grant to the City any 
easement that is necessary for access to the real property conveyed 
under subsection (a) and operation of the conveyed facilities.
    (c) Conditions on Conveyance.--The conveyance authorized by 
subsection (a) is subject to the following conditions:
            (1) That the City accept the water and wastewater treatment 
        plants and distribution and collection systems in their 
        existing condition at the time of conveyance.
            (2) That the City provide water and sewer service to Fort 
        Gordon, Georgia, at a rate established by the appropriate 
        Federal or State regulatory authority.
            (3) That the City comply with all applicable environmental 
        laws and regulations regarding the real property conveyed under 
        subsection (a), including any permit or license requirements.
            (4) That the City assume full responsibility for ownership, 
        operation, maintenance, repair, and all regulatory compliance 
        requirements for the water and wastewater treatment plants and 
        distribution and collection systems.
    (d) Condition on Expansion.--The conveyance under subsection (a) 
shall also be subject to the condition that the City may not expand the 
water and wastewater treatment plants and distribution and collection 
systems without prior approval by the Secretary.
    (e) Environmental Compliance.--The City shall be responsible for 
owning, operating, and upgrading the water and wastewater treatment 
plants and distribution and collection systems in accordance with all 
applicable Federal, State, and municipal laws and regulations 
promulgated thereunder.
    (f) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a), 
and of any easements granted under subsection (b), shall be determined 
by a survey satisfactory to the Secretary. The cost of such survey 
shall be borne by the City.
    (g) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) and the grant of any easement under subsection (b) 
as the Secretary considers appropriate to protect the interests of the 
United States.

SEC. 2843. CONVEYANCE OF ELECTRICAL DISTRIBUTION SYSTEM, FORT IRWIN, 
              CALIFORNIA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
the Southern California Edison Company, California (in this section 
referred to as the ``Company''), all right, title, and interest of the 
United States in and to the electrical distribution system located at 
Fort Irwin, California.
    (b) Description of System and Conveyance.--The electrical 
distribution system authorized to be conveyed under subsection (a) 
consists of approximately 115 miles of electrical distribution lines, 
including poles, switches, reclosers, transformers, regulators, 
switchgears, and service lines. The conveyance includes the equipment, 
fixtures, structures, and other improvements the Federal Government 
utilizes to provide electrical services at Fort Irwin. The conveyance 
shall not include any real property.
    (c) Related Easements.--The Secretary may grant to the Company any 
easement that is necessary for access to and operation of the 
electrical distribution system conveyed under subsection (a).
    (d) Conditions on Conveyance.--The conveyance authorized by 
subsection (a) is subject to the following conditions:
            (1) That the Company accept the electrical distribution 
        system in its existing condition at the time of conveyance.
            (2) That the Company provide electrical service to Fort 
        Irwin, California, at a rate established by the appropriate 
        Federal or State regulatory authority.
            (3) That the Company comply with all applicable 
        environmental laws and regulations regarding the electrical 
        distribution system, including any permit or license 
        requirements.
            (4) That the Company assume full responsibility for 
        ownership, operation, maintenance, repair, and all regulatory 
        compliance requirements for the electrical distribution system.
    (e) Condition on Expansion.--The conveyance under subsection (a) 
shall also be subject to the condition that the Company may not expand 
the electrical distribution system without prior approval by the 
Secretary.
    (f) Environmental Compliance.--The Company shall be responsible for 
owning, operating, and upgrading the electrical distribution system in 
accordance with all applicable Federal, State, and municipal laws and 
regulations promulgated thereunder.
    (g) Description of Easement.--The exact acreage and legal 
description of any easement granted under subsection (c) shall be 
determined by a survey satisfactory to the Secretary. The cost of such 
survey shall be borne by the Company.
    (h) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) and the grant of any easement under subsection (c) 
as the Secretary considers appropriate to protect the interests of the 
United States.
                       Subtitle E--Other Matters

SEC. 2851. EXPANSION OF AUTHORITY TO SELL ELECTRICITY.

    (a) Inclusion of Additional Energy Production Facilities.--
Subsection (a) of section 2483 of title 10, United States Code, is 
amended by striking out ``alternate energy and cogeneration type 
production facilities'' in the first sentence and inserting in lieu 
thereof ``energy production facilities''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 2483. Special sale authority regarding electricity''.
    (2) The table of sections at the beginning of chapter 147 of title 
10, United States Code, is amended by striking out the item relating to 
section 2483 and inserting in lieu thereof the following new item:

``2483. Special sale authority regarding electricity.''.
SEC. 2852. AUTHORITY FOR MISSISSIPPI STATE PORT AUTHORITY TO USE NAVY 
              PROPERTY AT NAVAL CONSTRUCTION BATTALION CENTER, 
              GULFPORT, MISSISSIPPI.

    (a) Joint Use Agreement Authorized.--The Secretary of the Navy may 
enter into an agreement with the Port Authority of the State of 
Mississippi (in this section referred to as the ``Port Authority''), 
under which the Port Authority may use real property comprising up to 
50 acres located at the Naval Construction Battalion Center, Gulfport, 
Mississippi (in this section referred to as the ``Center'').
    (b) Term of Agreement.--The agreement authorized under subsection 
(a) may be for an initial period of not more than 15 years. Under the 
agreement, the Secretary shall provide the Port Authority with an 
option to extend the agreement for at least three additional periods of 
five years each.
    (c) Conditions on Use.--The agreement authorized under subsection 
(a) shall require the Port Authority--
            (1) to suspend operations under the agreement in the event 
        Navy contingency operations are conducted at the Center; and
            (2) to use the property covered by the agreement in a 
        manner consistent with Navy operations conducted at the Center.
    (d) Consideration.--(1) As consideration for the use of the 
property covered by the agreement under subsection (a), the Port 
Authority shall pay to the Navy an amount equal to the fair market 
rental value of the property, as determined by the Secretary taking 
into consideration the Port Authority's use of the property.
    (2) The Secretary may include a provision in the agreement 
requiring the Port Authority--
            (A) to pay the Navy an amount (as determined by the 
        Secretary) to cover the costs of replacing at the Center any 
        facilities vacated by the Navy on account of the agreement or 
        to construct suitable replacement facilities for the Navy; and
            (B) to pay the Navy an amount (as determined by the 
        Secretary) for the costs of relocating Navy operations from the 
        vacated facilities to the replacement facilities.
    (e) Congressional Notification.--The Secretary may not enter into 
the agreement authorized by subsection (a) until the end of the 21-day 
period beginning on the date on which the Secretary submits to Congress 
a report containing an explanation of the terms of the proposed 
agreement and a description of the consideration that the Secretary 
expects to receive under the agreement.
    (f) Use of Payment.--(1) In such amounts as are provided in advance 
in appropriation Acts, the Secretary may use amounts paid under 
subsection (d)(1) to pay for general supervision, administration, and 
overhead expenses and for improvement, maintenance, repair, 
construction, or restoration of the roads, railways, and facilities 
serving the Center.
    (2) In such amounts as are provided in advance in appropriation 
Acts, the Secretary may use amounts paid under subsection (d)(2) to pay 
for constructing new facilities, or making modifications to existing 
facilities, that are necessary to replace facilities vacated by the 
Navy on account of the agreement under subsection (a) and for 
relocating operations of the Navy from the vacated facilities to 
replacement facilities.
    (g) Construction by Port Authority.--The Secretary may authorize 
the Port Authority to demolish existing facilities located on the 
property covered by the agreement under subsection (a) and, consistent 
with the restriction specified in subsection (c)(2), construct new 
facilities on the property for joint use by the Port Authority and the 
Navy.
    (h) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the agreement 
authorized under subsection (a) as the Secretary considers appropriate 
to protect the interests of the United States.
SEC. 2853. PROHIBITION ON JOINT CIVIL AVIATION USE OF NAVAL AIR STATION 
              MIRAMAR, CALIFORNIA.

    The Secretary of the Navy may not enter into any agreement that 
would provide for or permit civil aircraft to regularly use Naval Air 
Station Miramar, California.
SEC. 2854. REPORT REGARDING ARMY WATER CRAFT SUPPORT FACILITIES AND 
              ACTIVITIES.

    Not later than February 15, 1996, the Secretary of the Army shall 
submit to Congress a report describing--
            (1) the location, assets, and mission of each Army 
        facility, active or reserve component, that supports water 
        transportation operations;
            (2) an infrastructure inventory and utilization rate of 
        each Army facility supporting water transportation operations;
            (3) options for consolidating these operations to reduce 
        overhead; and
            (4) actions that can be taken to affirmatively respond to 
        requests from the residents of Marcus Hook, Pennsylvania, to 
        close the Army Reserve facility located in Marcus Hook and make 
        the facility available for use by the community.
               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.--Subject to subsection (d), funds are 
hereby authorized to be appropriated to the Department of Energy for 
fiscal year 1996 for stockpile stewardship in carrying out weapons 
activities necessary for national security programs in the amount of 
$3,610,914,000, to be allocated as follows:
            (1) For core stockpile stewardship, $1,189,708,000 for 
        fiscal year 1996, to be allocated as follows:
                    (A) For operation and maintenance, $1,098,403,000.
                    (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), $96,305,000, to be 
                allocated as follows:
                            Project 96-D-102, stockpile stewardship 
                        facilities revitalization, Phase VI, various 
                        locations, $2,520,000.
                            Project 96-D-103, ATLAS, Los Alamos 
                        National Laboratory, Los Alamos, New Mexico, 
                        $8,400,000.
                            Project 96-D-104, processing and 
                        environmental technology laboratory (PETL), 
                        Sandia National Laboratories, Albuquerque, New 
                        Mexico, $1,800,000.
                            Project 96-D-105, contained firing facility 
                        addition, Lawrence Livermore National 
                        Laboratory, Livermore, California, $6,600,000.
                            Project 95-D-102, Chemical and Metallurgy 
                        Research Building upgrades project, Los Alamos 
                        National Laboratory, Los Alamos, New Mexico, 
                        $9,940,000.
                            Project 94-D-102, nuclear weapons research, 
                        development, and testing facilities 
                        revitalization, Phase V, various locations, 
                        $12,200,000.
                            Project 93-D-102, Nevada support facility, 
                        North Las Vegas, Nevada, $15,650,000.
                            Project 90-D-102, nuclear weapons research, 
                        development, and testing facilities 
                        revitalization, Phase III, various locations, 
                        $6,200,000.
                            Project 88-D-106, nuclear weapons research, 
                        development, and testing facilities 
                        revitalization, Phase II, various locations, 
                        $27,995,000.
            (2) For inertial fusion, $240,667,000, to be allocated as 
        follows:
                    (A) For operation and maintenance, $203,267,000.
                    (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), $37,400,000 to be 
                allocated as follows:
                            Project 96-D-111, national ignition 
                        facility, TBD, $37,400,000.
            (3) For technology transfer, $25,000,000.
            (4) For Marshall Islands, $6,800,000.
    (b) Stockpile Management.--Subject to subsection (d), funds are 
hereby authorized to be appropriated to the Department of Energy for 
fiscal year 1996 for stockpile management in carrying out weapons 
activities necessary for national security programs in the amount of 
$2,142,083,000, to be allocated as follows:
            (1) For operation and maintenance, $2,028,458,000.
            (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), 
        $113,625,000, to be allocated as follows:
                    Project 96-D-122, sewage treatment quality upgrade 
                (STQU), Pantex Plant, Amarillo, Texas, $600,000.
                    Project 96-D-123, retrofit HVAC and chillers for 
                ozone protection, Y-12 Plant, Oak Ridge, Tennessee, 
                $3,100,000.
                    Project 96-D-125, Washington measurements 
                operations facility, Andrews Air Force Base, Camp 
                Springs, Maryland, $900,000.
                    Project 96-D-126, tritium loading line 
                modifications, Savannah River Site, South Carolina, 
                $12,200,000.
                    Project 95-D-122, sanitary sewer upgrade, Y-12 
                Plant, Oak Ridge, Tennessee, $6,300,000.
                    Project 94-D-124, hydrogen fluoride supply system, 
                Y-12 Plant, Oak Ridge, Tennessee, $8,700,000.
                    Project 94-D-125, upgrade life safety, Kansas City 
                Plant, Kansas City, Missouri, $5,500,000.
                    Project 94-D-127, emergency notification system, 
                Pantex Plant, Amarillo, Texas, $2,000,000.
                    Project 94-D-128, environmental safety and health 
                analytical laboratory, Pantex Plant, Amarillo, Texas, 
                $4,000,000.
                    Project 93-D-122, life safety upgrades, Y-12 Plant, 
                Oak Ridge, Tennessee, $7,200,000.
                    Project 93-D-123, complex-21, various locations, 
                $41,065,000.
                    Project 88-D-122, facilities capability assurance 
                program, various locations, $8,660,000.
                    Project 88-D-123, security enhancement, Pantex 
                Plant, Amarillo, Texas, $13,400,000.
    (c) Program Direction.--Subject to subsection (d), funds are hereby 
authorized to be appropriated to the Department of Energy for fiscal 
year 1996 for program direction in carrying out weapons activities 
necessary for national security programs in the amount of $118,000,000.
    (d) Adjustments.--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 (c) reduced by the sum of--
            (1) $25,000,000, for savings resulting from procurement 
        reform; and
            (2) $86,344,000, for use in prior year balances.
SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

    (a) Corrective Activities.--Subject to subsection (i), funds are 
hereby authorized to be appropriated to the Department of Energy for 
fiscal year 1996 for corrective activities in carrying out 
environmental restoration and waste management activities necessary for 
national security programs in the amount of $3,406,000, all of which 
shall be available for the following plant project (including 
maintenance, restoration, planning, construction, acquisition, 
modification of facilities, and land acquisition related thereto):
            Project 90-D-103, environment, safety and health 
        improvements, weapons research and development complex, Los 
        Alamos National Laboratory, Los Alamos, New Mexico.
    (b) Environmental Restoration.--Subject to subsection (i), funds 
are hereby authorized to be appropriated to the Department of Energy 
for fiscal year 1996 for environmental restoration in carrying out 
environmental restoration and waste management activities necessary for 
national security programs in the amount of $1,575,973,000.
    (c) Waste Management.--Subject to subsection (i), funds are hereby 
authorized to be appropriated to the Department of Energy for fiscal 
year 1996 for waste management in carrying out environmental 
restoration and waste management activities necessary for national 
security programs in the amount of $2,351,596,000, to be allocated as 
follows:
            (1) For operation and maintenance, $2,168,994,000.
            (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), 
        $182,602,000, to be allocated as follows:
                    Project 96-D-406, K-Basin operations program, 
                Richland, Washington, $26,000,000.
                    Project 96-D-407, mixed waste low level waste 
                treatment projects, Rocky Flats, Golden, Colorado, 
                $2,900,000.
                    Project 96-D-408, waste management upgrades, 
                various locations, $5,615,000.
                    Project 95-D-402, install permanent electrical 
                service for the Waste Isolation Pilot Plant, Carlsbad, 
                New Mexico, $4,314,000.
                    Project 95-D-405, industrial landfill V and 
                construction/demolition landfill VII, Phase III, Y-12 
                Plant, Oak Ridge, Tennessee, $4,600,000.
                    Project 95-D-406, road 5-01 reconstruction, area 5, 
                Nevada Test Site, Nevada, $1,023,000.
                    Project 94-D-400, high explosive wastewater 
                treatment system, Los Alamos National Laboratory, Los 
                Alamos, New Mexico, $4,445,000.
                    Project 94-D-402, liquid waste treatment system, 
                Nevada Test Site, Nevada, $282,000.
                    Project 94-D-404, Melton Valley storage tanks 
                capacity increase, Oak Ridge National Laboratory, Oak 
                Ridge, Tennessee, $11,000,000.
                    Project 94-D-407, initial tank retrieval systems, 
                Richland, Washington, $9,400,000.
                    Project 94-D-411, solid waste operations complex 
                project, Richland, Washington, $5,500,000.
                    Project 94-D-417, intermediate level and low 
                activity waste vaults, Savannah River Site, Aiken, 
                South Carolina, $2,704,000.
                    Project 93-D-178, building 374 liquid waste 
                treatment facility, Rocky Flats Environmental 
                Technology Site, Golden, Colorado, $3,900,000.
                    Project 93-D-182, replacement of cross-site 
                transfer system, Richland, Washington, $19,795,000.
                    Project 93-D-183, multi-function waste remediation 
                facility, Richland, Washington, $31,000,000.
                    Project 93-D-187, high-level waste removal from 
                filled waste tanks, Savannah River Site, Aiken, South 
                Carolina, $19,700,000.
                    Project 92-D-171, mixed waste receiving and storage 
                facility, Los Alamos National Laboratory, Los Alamos, 
                New Mexico, $1,105,000.
                    Project 92-D-188, waste management environmental, 
                safety and health (ES&H) and compliance activities, 
                various locations, $1,100,000.
                    Project 90-D-172, aging waste transfer lines, 
                Richland, Washington, $2,000,000.
                    Project 90-D-177, RWMC transuranic (TRU) waste 
                characterization and storage facility, Idaho National 
                Engineering Laboratory, Idaho, $1,428,000.
                    Project 90-D-178, TSA retrieval enclosure, Idaho 
                National Engineering Laboratory, Idaho, $2,606,000.
                    Project 89-D-173, tank farm ventilation upgrade, 
                Richland, Washington, $800,000.
                    Project 89-D-174, replacement high-level waste 
                evaporator, Savannah River Site, Aiken, South Carolina, 
                $11,500,000.
                    Project 86-D-103, decontamination and waste 
                treatment facility, Lawrence Livermore National 
                Laboratory, Livermore, California, $8,885,000.
                    Project 83-D-148, nonradioactive hazardous waste 
                management, Savannah River Site, Aiken, South Carolina, 
                $1,000,000.
    (d) Technology Development.--Subject to subsection (i), funds are 
hereby authorized to be appropriated to the Department of Energy for 
fiscal year 1996 for technology development in carrying out 
environmental restoration and waste management activities necessary for 
national security programs in the amount of $390,510,000.
    (e) Transportation Management.--Subject to subsection (i), funds 
are hereby authorized to be appropriated to the Department of Energy 
for fiscal year 1996 for transportation management in carrying out 
environmental restoration and waste management activities necessary for 
national security programs in the amount of $10,158,000.
    (f) Nuclear Materials and Facilities Stabilization.--Subject to 
subsection (i), funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1996 for nuclear materials and 
facilities stabilization in carrying out environmental restoration and 
waste management activities necessary for national security programs in 
the amount of $1,514,504,000 to be allocated as follows:
            (1) For operation and maintenance, $1,427,108,000.
            (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), 
        $87,396,000, to be allocated as follows:
                    Project 96-D-458, site drainage control, Mound 
                Plant, Miamisburg, Ohio, $885,000.
                    Project 96-D-461, Idaho National Engineering 
                Laboratory electrical distribution upgrade, Idaho 
                National Engineering Laboratory, Idaho, $1,539,000.
                    Project 96-D-462, health physics instrument 
                laboratory, Idaho National Engineering Laboratory, 
                Idaho, $1,126,000.
                    Project 96-D-464, electrical and utility systems 
                upgrade, Idaho Chemical Processing Plant, Idaho 
                National Engineering Laboratory, Idaho, $4,952,000.
                    Project 96-D-470, environmental monitoring 
                laboratory, Savannah River Site, Aiken, South Carolina, 
                $3,500,000.
                    Project 96-D-471, CFC HVAC/chiller retrofit, 
                Savannah River Site, Aiken, South Carolina, $1,500,000.
                    Project 96-D-473, health physics site support 
                facility, Savannah River Site, Aiken, South Carolina, 
                $2,000,000.
                    Project 95-D-155, upgrade site road infrastructure, 
                Savannah River site, Aiken, South Carolina, $2,900,000.
                    Project 95-D-156, radio trunking system, Savannah 
                River site, Aiken, South Carolina, $6,000,000.
                    Project 95-D-454, 324 facility compliance/
                renovation, Richland, Washington, $3,500,000.
                    Project 95-D-456, security facilities 
                consolidation, Idaho Chemical Processing Plant, Idaho 
                National Engineering Laboratory, Idaho, $8,382,000.
                    Project 94-D-122, underground storage tanks, Rocky 
                Flats Plant, Golden, Colorado, $5,000,000.
                    Project 94-D-401, emergency response facility, 
                Idaho National Engineering Laboratory, Idaho, 
                $5,074,000.
                    Project 94-D-412, 300 area process sewer piping 
                system upgrade, Richland, Washington, $1,000,000.
                    Project 94-D-415, Idaho National Engineering 
                Laboratory medical facilities, Idaho National 
                Engineering Laboratory, Idaho, $3,601,000.
                    Project 94-D-451, infrastructure replacement, Rocky 
                Flats Plant, Golden, Colorado, $2,940,000.
                    Project 93-D-147, domestic water system upgrade, 
                Phase I and II, Savannah River Site, Aiken, South 
                Carolina, $7,130,000.
                    Project 93-D-172, Idaho National Engineering 
                Laboratory electrical upgrade, Idaho National 
                Engineering Laboratory, Idaho, $124,000.
                    Project 92-D-123, plant fire/security alarm system 
                replacement, Rocky Flats Plant, Golden, Colorado, 
                $9,560,000.
                    Project 92-D-125, master safeguards and security 
                agreement/materials surveillance task force security 
                upgrades, Rocky Flats Plant, Golden, Colorado, 
                $7,000,000.
                    Project 92-D-181, Idaho National Engineering 
                Laboratory fire and life safety improvements, Idaho 
                National Engineering Laboratory, Idaho, $6,883,000.
                    Project 91-D-127, criticality alarm and plant 
                annunciation utility replacement, Rocky Flats Plant, 
                Golden, Colorado, $2,800,000.
    (g) Compliance and Program Coordination.--Subject to subsection 
(i), funds are hereby authorized to be appropriated to the Department 
of Energy for fiscal year 1996 for compliance and program coordination 
in carrying out environmental restoration and waste management 
activities necessary for national security programs in the amount of 
$31,251,000, to be allocated as follows:
            (1) For operation and maintenance, $16,251,000.
            (2) For the following plant project (including maintenance, 
        restoration, planning, construction, acquisition, modification 
        of facilities, and the continuation of projects authorized in 
        prior years, and land acquisition related thereto):
                    Project 95-E-600, hazardous materials management 
                and emergency response training center, Richland, 
                Washington, $15,000,000.
    (h) Analysis, Education, and Risk Management.--Subject to 
subsection (i), funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1996 analysis, education, and risk 
management in carrying out environmental restoration and waste 
management activities necessary for national security programs in the 
amount of $77,022,000.
    (i) Adjustments.--The total amount authorized to be appropriated 
pursuant to this section is the sum of the amounts specified in 
subsections (a) through (h) reduced by the sum of--
            (1) $651,942,000, for use of prior year balances; and
            (2) $37,000,000 for Savannah River Pension Refund.

SEC. 3103. PAYMENT OF PENALTIES.

    The Secretary of Energy may pay to the Hazardous Substance 
Superfund established under section 9507 of the Internal Revenue Code 
of 1986 (26 U.S.C. 9507), from funds appropriated to the Department of 
Energy for environmental restoration and waste management activities 
pursuant to section 3102, stipulated civil penalties assessed under the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601 et seq.) in the amount of $350,000 assessed 
against the Rocky Flats site, Colorado, under such Act.
SEC. 3104. OTHER DEFENSE ACTIVITIES.

    (a) Other Defense Activities.--Subject to subsection (b), funds are 
hereby authorized to be appropriated to the Department of Energy for 
fiscal year 1996 for other defense activities in carrying out programs 
necessary for national security in the amount of $1,328,841,000, to be 
allocated as follows:
            (1) For verification and control technology, $353,200,000, 
        to be allocated as follows:
                    (A) For nonproliferation and verification research 
                and development, $163,500,000.
                    (B) For arms control, $147,364,000.
                    (C) For intelligence, $42,336,000.
            (2) For nuclear safeguards and security, $83,395,000.
            (3) For security investigations, $25,000,000.
            (4) For security evaluations, $14,707,000.
            (5) For the Office of Nuclear Safety, $15,050,000.
            (6) For worker and community transition assistance, 
        $75,000,000.
            (7) For fissile materials disposition, $70,000,000.
            (8) For emergency management, $23,321,000.
            (9) For naval reactors development, $682,168,000, to be 
        allocated as follows:
                    (A) For operation and infrastructure, $659,168,000.
                    (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), $23,000,000, to be 
                allocated as follows:
                            Project 95-D-200, laboratory systems and 
                        hot cell upgrades, various locations, 
                        $11,300,000.
                            Project 95-D-201, advanced test reactor 
                        radioactive waste system upgrades, Idaho 
                        National Engineering Laboratory, Idaho, 
                        $4,800,000.
                            Project 93-D-200, engineering services 
                        facilities, Knolls Atomic Power Laboratory, 
                        Niskayuna, New York, $3,900,000.
                            Project 90-N-102, expended core facility 
                        dry cell project, Naval Reactors facility, 
                        Idaho, $3,000,000.
    (b) Adjustment.--The total amount that may be appropriated pursuant 
to this section is the amount authorized to be appropriated in 
subsection (a) reduced by the sum of $13,000,000, for use of prior year 
balances.

SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1996 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 $198,400,000.

                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 sections 3101, 3102, and 3104, 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 time 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 time period as the authorization to which the amounts 
are transferred.
    (2) Not more than 5 percent of any such authorization may be 
transferred between authorizations under paragraph (1). No such 
authorization may be increased or decreased by more than 5 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 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.
    (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 services (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 3104, 
to perform planning, design, and construction activities for any 
Department of Energy defense activity construction project that, as 
determined by the Secretary, must proceed expeditiously in order to 
protect public health and safety, 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.
    (d) Report.--The Secretary of Energy shall report to the 
congressional defense committees any exercise of authority 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 
of this title, amounts appropriated pursuant to this title for 
management and support activities and for general plant projects are 
available for use, when necessary, in connection with all national 
security programs of the Department of Energy.

SEC. 3128. AVAILABILITY OF FUNDS.

    When so specified in an appropriation Act, amounts appropriated for 
operating expenses or for plant and capital equipment may remain 
available until expended.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. AUTHORITY TO CONDUCT PROGRAM RELATING TO FISSILE MATERIALS.

    (a) Authority.--The Secretary of Energy may conduct programs 
designed to improve the protection, control, and accountability of 
fissile materials in Russia.
    (b)  Prior Notice to Congress of Obligation of Funds.--
            (1) Annual requirement.--(A) Not less than 15 days before 
        any obligation of any funds appropriated for any fiscal year 
        for a program described in subsection (a), the Secretary of 
        Energy shall submit to the congressional committees specified 
        in subparagraph (B) a report on that proposed obligation for 
        that program for that fiscal year.
            (B) The congressional committees referred to in 
        subparagraph (A) are the following:
                    (i) The Committee on Armed Services, the Committee 
                on Foreign Relations, and the Committee on 
                Appropriations of the Senate.
                    (ii) The Committee on National Security, the 
                Committee on International Relations, and the Committee 
                on Appropriations of the House of Representatives.
            (2) Matters to be specified in reports.--Each such report 
        shall specify--
                    (A) the activities and forms of assistance for 
                which the Secretary of Energy plans to obligate funds;
                    (B) the amount of the proposed obligation; and
                    (C) the projected involvement (if any) of any 
                department or agency of the United States (in addition 
                to the Department of Energy) and of the private sector 
                of the United States in the activities and forms of 
                assistance for which the Secretary of Energy plans to 
                obligate such funds.

SEC. 3132. NATIONAL IGNITION FACILITY.

    None of the funds appropriated pursuant to this title for the 
National Ignition Facility may be obligated until--
            (1) the Secretary of Energy concludes that the construction 
        of the National Ignition Facility will not impede the nuclear 
        nonproliferation objectives of the United States; and
            (2) the Secretary of Energy notifies the congressional 
        defense committees of that conclusion.
SEC. 3133. TRITIUM PRODUCTION.

    (a) New Tritium Production Activities.--
            (1) Of the amounts authorized to be appropriated in section 
        3101(b), not more than $50,000,000 shall be available for a 
        project to provide a long-term source of tritium, subject to 
        paragraph (2).
            (2) The amount made available under paragraph (1) may not 
        be used until such time as the Secretary of Energy has 
        completed a record of decision on a tritium production program 
        and congressional hearings have been conducted to determine the 
        appropriate option, in light of the national security needs and 
        nonproliferation and environmental consequences, for 
        establishing a long-term source of tritium.
    (b) Fissile Materials Control and Disposition.--Funds authorized to 
be appropriated for fiscal year 1996 for fissile materials storage and 
disposition activities shall be available only for completing the 
evaluation and beginning the implementation of the plutonium storage 
and disposition option, including the multipurpose advanced light water 
reactor, in the amount of $70,000,000, of which--
            (1) $5,000,000 shall be made available to the Idaho 
        National Engineering Laboratory for evaluation of plutonium 
        conversion to oxide fuel material in the multipurpose advanced 
        light water reactor; and
            (2) sufficient funds shall be made available for a complete 
        consideration of the multipurpose advanced light water reactor 
        in the Department of Energy programmatic environmental impact 
        statement.

                       Subtitle D--Other Matters
SEC. 3141. REPORT ON FOREIGN TRITIUM PURCHASES.

    Not later than February 1, 1996, the President shall submit to 
Congress a report on the feasibility of, the cost of, and the 
political, legal, and other issues associated with purchasing tritium 
from various foreign suppliers in order to ensure an adequate supply of 
tritium in the United States for nuclear weapons.

SEC. 3142. STUDY ON NUCLEAR TEST READINESS POSTURES.

    Not later than February 15, 1996, the Secretary of Energy shall 
submit to Congress a report on the cost of, and the programmatic and 
other issues associated with, sustaining an ability to conduct an 
underground nuclear test in 6, 18, and 36 months from the date on which 
the President determines that such a test is necessary to ensure the 
national security of the United States.

SEC. 3143. MASTER PLAN ON WARHEADS IN THE ENDURING STOCKPILE.

    (a) Master Plan.--Not later than March 15, 1996, the President 
shall submit to Congress a master plan that describes in detail how the 
Government plans to demonstrate, by 2002--
            (1) the capability to refabricate and certify warheads in 
        the enduring stockpile; and
            (2) the capability to design, fabricate, and certify new 
        warheads.
    (b) Form of Plan.--The plan should be submitted in classified and 
unclassified forms.

SEC. 3144. PROHIBITION ON INTERNATIONAL INSPECTIONS OF DEPARTMENT OF 
              ENERGY FACILITIES UNLESS PROTECTION OF RESTRICTED DATA IS 
              CERTIFIED.

    (a) Prohibition on Inspections.--The Secretary of Energy may not 
allow an inspection of a nuclear weapons facility by the International 
Atomic Energy Agency until--
            (1) the Secretary certifies to Congress that no restricted 
        data or classified information will be revealed during such 
        inspection; and
            (2) a period of 30 days has passed since the date on which 
        such certification was made.
    (b) Restricted Data Defined.--In this section, the term 
``restricted data'' has the meaning provided by section 11 y. of the 
Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).
SEC. 3145. ACCELERATED SCHEDULE FOR ENVIRONMENTAL MANAGEMENT 
              ACTIVITIES.

    (a) Accelerated Cleanup.--The Secretary of Energy shall accelerate 
the schedule for environmental management activities and projects for 
any specific Department of Energy defense nuclear facility site if, in 
the opinion of the Secretary, such an accelerated schedule will result 
in substantial long-term cost savings to the Federal Government and 
speed up release of land for economic development.
    (b) Site Selection.--In selecting sites for an accelerated schedule 
under subsection (a), the Secretary shall give highest priority to 
sites that are in close proximity to populated areas, that pose 
significant risk, and that have the greatest potential to result in 
privatization, commercialization, and economic development of unneeded 
facilities.
    (c) Eligibility.--For purposes of subsection (a), environmental 
management activities and projects shall be eligible for an accelerated 
schedule under subsection (a) if the time for completion at the site of 
such activities can be reduced by 50 percent or more below the time 
established in the report of the Department of Energy Office of 
Environmental Management titled ``1995 Baseline Environmental 
Management Report'', March 1995.
    (d) Savings Provision.--Nothing in this section shall be construed 
as affecting a specific statutory requirement for a specific project or 
as modifying or otherwise affecting applicable statutory or regulatory 
environmental restoration requirements, including substantive standards 
intended to protect public health and the environment.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 1996 
$17,000,000 for the operation of the Defense Nuclear Facilities Safety 
Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 
et seq.)
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

SEC. 3301. FISCAL YEAR 1996 AUTHORIZED USES OF STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 1996, the 
National Defense Stockpile Manager may obligate up to $77,100,000 of 
the funds in the National Defense Stockpile Transaction Fund 
established under subsection (a) of section 9 of the Strategic and 
Critical Materials Stock Piling Act (50 U.S.C. 98h) for the authorized 
uses of such funds under subsection (b)(2) of such section.
    (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. PREFERENCE FOR DOMESTIC UPGRADERS IN DISPOSAL OF CHROMITE 
              AND MANGANESE ORES AND CHROMIUM FERRO AND MANGANESE METAL 
              ELECTROLYTIC.

    (a) Preference for Domestic Upgrading.--In offering to enter into 
agreements pursuant to any provision of law for the disposal from the 
National Defense Stockpile of chromite and manganese ores of 
metallurgical grade or chromium ferro and manganese metal electrolytic, 
the President shall give a right of first refusal on all such offers to 
domestic ferroalloy upgraders.
    (b) Domestic Ferroalloy Upgrader Defined.--For purposes of this 
section, the term ``domestic ferroalloy upgrader'' means a company or 
other business entity that, as determined by the President--
            (1) is engaged in (or is capable of engaging in) operations 
        to upgrade chromite or manganese ores of metallurgical grade or 
        chromium ferro and manganese metal electrolytic; and
            (2) conducts a significant level of its research, 
        development, engineering, and upgrading operations in the 
        United States.
    (c) National Defense Stockpile Defined.--For purposes of this 
section, the term ``National Defense Stockpile'' means the stockpile 
provided for in section 4 of the Strategic and Critical Materials Stock 
Piling Act (50 U.S.C. 98c).

SEC. 3303. RESTRICTIONS ON DISPOSAL OF MANGANESE FERRO.

    (a) Disposal of Lower Grade Material First.--The President may not 
dispose of high carbon manganese ferro in the National Defense 
Stockpile that meets the National Defense Stockpile classification of 
Grade One, Specification 30(a), as revised on May 22, 1992, until 
completing the disposal of all manganese ferro in the National Defense 
Stockpile that does not meet such classification. The President may not 
reclassify manganese ferro in the National Defense Stockpile after the 
date of the enactment of this Act.
    (b) Requirement for Domestic Upgrading.--Manganese ferro in the 
National Defense Stockpile that does not meet the classification 
specified in subsection (a) shall only be sold for domestic remelting 
in a submerged arc ferromanganese furnace.
    (c) National Defense Stockpile Defined.--For purposes of this 
section, the term ``National Defense Stockpile'' means the stockpile 
provided for in section 4 of the Strategic and Critical Materials Stock 
Piling Act (50 U.S.C. 98c).
SEC. 3304. TITANIUM INITIATIVE TO SUPPORT BATTLE TANK UPGRADE PROGRAM.

    (a) Transfer of Titanium.--During each of the fiscal years 1996 
through 2003, the Secretary of Defense shall transfer from stocks of 
the National Defense Stockpile up to 250 short tons of titanium sponge 
to the Secretary of the Army for use in the weight reduction portion of 
the main battle tank upgrade program. Transfers under this section 
shall be without charge to the Army, except that the Secretary of the 
Army shall pay all transportation and related costs incurred in 
connection with the transfer.
    (b) National Defense Stockpile Defined.--For purposes of this 
section, the term ``National Defense Stockpile'' means the stockpile 
provided for in section 4 of the Strategic and Critical Materials Stock 
Piling Act (50 U.S.C. 98c).
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

    There is hereby authorized to be appropriated to the Secretary of 
Energy $101,028,000 for fiscal year 1996 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 1996.

    Notwithstanding section 7430(b)(2) of title 10, United States Code, 
during fiscal year 1996, 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. SALE OF NAVAL PETROLEUM RESERVE NUMBERED 1 (ELK HILLS).

    (a) Sale of Elk Hills Unit Required.--Chapter 641 of title 10, 
United States Code, is amended by inserting after section 7421 the 
following new section:
``Sec. 7421a. Sale of Naval Petroleum Reserve Numbered 1 (Elk Hills)
    ``(a) Sale Required.--(1) Notwithstanding any other provision of 
this chapter, the Secretary shall sell all right, title, and interest 
of the United States in and to lands owned or controlled by the United 
States inside Naval Petroleum Reserve Numbered 1, commonly referred to 
as the Elk Hills Unit, located in Kern County, California, and 
established by Executive order of the President, dated September 2, 
1912. Within one year after the effective date, the Secretary shall 
enter into one or more contracts for the sale of all of the interest of 
the United States in the reserve.
    ``(2) In this section:
            ``(A) The term `reserve' means Naval Petroleum Reserve 
        Numbered 1.
            ``(B) The term `unit plan contract' means the unit plan 
        contract between equity owners of the lands within the 
        boundaries of Naval Petroleum Reserve Numbered 1 entered into 
        on June 19, 1944.
            ``(C) The term `effective date' means the date of the 
        enactment of the National Defense Authorization Act for Fiscal 
        Year 1996.
    ``(b) Equity Finalization.--(1) Not later than five months after 
the effective date, the Secretary shall finalize equity interests of 
the known oil and gas zones in Naval Petroleum Reserve Numbered 1 in 
the manner provided by this subsection.
    ``(2) The Secretary shall retain the services of an independent 
petroleum engineer, mutually acceptable to the equity owners, who shall 
prepare a recommendation on final equity figures. The Secretary may 
accept the recommendation of the independent petroleum engineer for 
final equity in each known oil and gas zone and establish final equity 
interest in the Naval Petroleum Reserve Numbered 1 in accordance with 
such recommendation, or the Secretary may use such other method to 
establish final equity interest in the reserve as the Secretary 
considers appropriate.
    ``(3) If, on the effective date, there is an ongoing equity 
redetermination dispute between the equity owners under section 9(b) of 
the unit plan contract, such dispute shall be resolved in the manner 
provided in the unit plan contract within five months after the 
effective date. Such resolution shall be considered final for all 
purposes under this section.
    ``(c) Timing and Administration of Sale.--(1) Not later than two 
months after the effective date, the Secretary shall retain the 
services of five independent experts in the valuation of oil and gas 
fields to conduct separate assessments, in a manner consistent with 
commercial practices, of the fair market value of the interest of the 
United States in Naval Petroleum Reserve Numbered 1. In making their 
assessments, the independent experts shall consider (among other 
factors) all equipment and facilities to be included in the sale, the 
net present value of the reserve, and the net present value of the 
anticipated revenue stream that the Secretary determines the Treasury 
would receive from the reserve if the reserve were not sold, adjusted 
for any anticipated increases in tax revenues that would result if the 
reserve were sold. The independent experts shall complete their 
assessments within five months after the effective date. In setting the 
minimum acceptable price for the reserve, the Secretary shall consider 
the average of the five assessments or, if more advantageous to the 
Government, the average of three assessments after excluding the high 
and low assessments.
    ``(2) Not later than two months after the effective date, the 
Secretary shall retain the services of an investment banker to 
independently administer, in a manner consistent with commercial 
practices and in a manner that maximizes sale proceeds to the 
Government, the sale of Naval Petroleum Reserve Numbered 1 under this 
section.
    ``(3) Not later than five months after the effective date, the 
sales administrator selected under paragraph (2) shall complete a draft 
contract for the sale of Naval Petroleum Reserve Numbered 1, which 
shall accompany the invitation for bids and describe the terms and 
provisions of the sale of the interest of the United States in the 
reserve. The draft contract shall identify all equipment and facilities 
to be included in the sale. The draft contract, including the terms and 
provisions of the sale of the interest of the United States in the 
reserve, shall be subject to review and approval by the Secretary, the 
Secretary of the Treasury, and the Director of the Office of Management 
and Budget.
    ``(4) Not later than six months after the effective date, the 
Secretary shall publish an invitation for bids for the purchase of the 
reserve.
    ``(5) Not later than nine months after the effective date, the 
Secretary shall accept the highest responsible offer for purchase of 
the interest of the United States in Naval Petroleum Reserve Numbered 1 
that meets or exceeds the minimum acceptable price determined under 
paragraph (1).
    ``(d) Future Liabilities.--The United States shall hold harmless 
and fully indemnify the purchaser of the interest of the United States 
in Naval Petroleum Reserve Numbered 1 from and against any claim or 
liability as a result of ownership in the reserve by the United States.
    ``(e) Treatment of State of California Claim.--(1) All claims 
against the United States by the State of California or the Teachers' 
Retirement Fund of the State of California with respect to land within 
the Naval Petroleum Reserve Numbered 1 or production or proceeds of 
sale from the reserve shall be resolved only as follows:
            ``(A) A payment from funds provided for this purpose in 
        advance in appropriation Acts.
            ``(B) A grant of nonrevenue generating land in lieu of such 
        a payment pursuant to sections 2275 and 2276 of the Revised 
        Statutes of the United States (43 U.S.C. 851 and 852).
            ``(C) Any other means that would not be inconsistent with 
        the Congressional Budget Act of 1974 (2 U.S.C. 621 et seq.).
            ``(D) Any combination of subparagraphs (A), (B), and (C).
    ``(2) The value of any payment, grant, or means (or combination 
thereof) under paragraph (1) may not exceed an amount equal to seven 
percent of the proceeds from the sale of the reserve, after deducting 
the costs incurred to conduct the sale.
    ``(f) Production Allocation for Sale.--(1) As part of the contract 
for purchase of Naval Petroleum Reserve Numbered 1, the purchaser of 
the interest of the United States in the reserve shall agree to make up 
to 25 percent of the purchaser's share of annual petroleum production 
from the purchased lands available for sale to small refiners, which do 
not have their own adequate sources of supply of petroleum, for 
processing or use only in their own refineries. None of the reserved 
production sold to small refiners may be resold in kind. The purchaser 
of the reserve may reduce the quantity of petroleum reserved under this 
subsection in the event of an insufficient number of qualified bids. 
The seller of this petroleum production has the right to refuse bids 
that are less than the prevailing market price of comparable oil.
    ``(2) The purchaser of the reserve shall also agree to ensure that 
the terms of every sale of the purchaser's share of annual petroleum 
production from the purchased lands shall be so structured as to give 
full and equal opportunity for the acquisition of petroleum by all 
interested persons, including major and independent oil producers and 
refiners alike.
    ``(g) Maintaining Elk Hills Unit Production.--Until the sale of 
Naval Petroleum Reserve Numbered 1 is completed under this section, the 
Secretary shall continue to produce the reserve at the maximum daily 
oil or gas rate from a reservoir, which will permit maximum economic 
development of the reservoir consistent with sound oil field 
engineering practices in accordance with section 3 of the unit plan 
contract. The definition of maximum efficient rate in section 7420(6) 
of this title shall not apply to the reserve.
    ``(h) Effect on Existing Contracts.--(1) In the case of any 
contract, in effect on the effective date, for the purchase of 
production from any part of the United States' share of Naval Petroleum 
Reserve Numbered 1, the sale of the interest of the United States in 
the reserve shall be subject to the contract for a period of three 
months after the closing date of the sale or until termination of the 
contract, whichever occurs first. The term of any contract entered into 
after the effective date for the purchase of such production shall not 
exceed the anticipated closing date for the sale of the reserve.
    ``(2) The Secretary shall exercise the termination procedures 
provided in the contract between the United States and Bechtel 
Petroleum Operation, Inc., Contract Number DE-ACO1-85FE60520 so that 
the contract terminates not later than the date of closing of the sale 
of Naval Petroleum Reserve Numbered 1 under subsection (c).
    ``(3) The Secretary shall exercise the termination procedures 
provided in the unit plan contract so that the unit plan contract 
terminates not later than the date of closing of the sale of reserve 
under subsection (c).
    ``(i) Effect on Antitrust Laws.--Nothing in this section shall be 
construed to alter the application of the antitrust laws of the United 
States to the purchaser of Naval Petroleum Reserve Numbered 1 or to the 
lands in the reserve subject to sale under this section upon the 
completion of the sale.
    ``(j) Preservation of Private Right, Title, and Interest.--Nothing 
in this section shall be construed to adversely affect the ownership 
interest of any other entity having any right, title, and interest in 
and to lands within the boundaries of Naval Petroleum Reserve Numbered 
1 and which are subject to the unit plan contract.
    ``(k) Congressional Notification.--Section 7431 of this title shall 
not apply to the sale of Naval Petroleum Reserve Numbered 1 under this 
section. However, the Secretary may not enter into a contract for the 
sale of the reserve until the end of the 31-day period beginning on the 
date on which the Secretary notifies the Committee on Armed Services of 
the Senate and the Committee on National Security and the Committee on 
Commerce of the House of Representatives of the proposed sale.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7421 the following new item:

``7421a. Sale of Naval Petroleum Reserve Numbered 1 (Elk Hills).''.
SEC. 3404. STUDY REGARDING FUTURE OF NAVAL PETROLEUM RESERVES (OTHER 
              THAN NAVAL PETROLEUM RESERVE NUMBERED 1).

    (a) Study Required.--The Secretary of Energy shall conduct a study 
to determine which of the following options regarding the naval 
petroleum reserves represents the most cost-effective option for the 
United States:
            (1) Retention and operation of the naval petroleum reserves 
        by the Secretary under chapter 641 of title 10, United States 
        Code.
            (2) Transfer of all or a part of the naval petroleum 
        reserves to the jurisdiction of another Federal agency.
            (3) Lease of the naval petroleum reserves.
            (4) Sale of the interest of the United States in the naval 
        petroleum reserves.
    (b) Conduct of Study.--The Secretary shall retain an independent 
petroleum consultant to conduct the study.
    (c) Considerations Under Study.--An examination of the benefits to 
be derived by the United States from the sale of the naval petroleum 
reserves shall include an assessment and estimate, in a manner 
consistent with commercial practices, of the fair market value of the 
interest of the United States in the naval petroleum reserves. An 
examination of the benefits to be derived by the United States from the 
lease of the naval petroleum reserves shall consider full exploration, 
development, and production of petroleum products in the naval 
petroleum reserves, with a royalty payment to the United States.
    (d) Report Regarding Study.--Not later than December 31, 1995, the 
Secretary shall submit to Congress a report describing the results of 
the study and containing such recommendations as the Secretary 
considers necessary to implement the most cost-effective option 
identified in the study.
    (e) Naval Petroleum Reserves Defined.--For purposes of this 
section, the term ``naval petroleum reserves'' has the meaning given 
that term in section 7420(2) of title 10, United States Code, except 
that such term does not include Naval Petroleum Reserve Numbered 1.
                  TITLE XXXV--PANAMA CANAL COMMISSION

              Subtitle A--Authorization of Appropriations

SEC. 3501. SHORT TITLE.

    This subtitle may be cited as the ``Panama Canal Commission 
Authorization Act for Fiscal Year 1996''.

SEC. 3502. AUTHORIZATION OF EXPENDITURES.

    (a) In General.--Subject to subsection (b), the Panama Canal 
Commission is authorized 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 without regard to fiscal 
year limitations, as may be necessary under the Panama Canal Act of 
1979 (22 U.S.C. 3601 et seq.) for the operation, maintenance, and 
improvement of the Panama Canal for fiscal year 1996.
    (b) Limitations.--For fiscal year 1996, the Panama Canal Commission 
may expend from funds in the Panama Canal Revolving Fund not more than 
$50,741,000 for administrative expenses, of which not more than--
            (1) $11,000 may be used for official reception and 
        representation expenses of the Supervisory Board of the 
        Commission;
            (2) $5,000 may be used for official reception and 
        representation expenses of the Secretary of the Commission; and
            (3) $30,000 may be used for official reception and 
        representation expenses of the Administrator of the Commission.
    (c) Replacement Vehicles.--Funds available to the Panama Canal 
Commission shall be available for the purchase of not to exceed 38 
passenger motor vehicles built in the United States (including large 
heavy-duty vehicles to be used to transport Commission personnel across 
the isthmus of Panama). A vehicle may be purchased with such funds only 
as necessary to replace another passenger motor vehicle of the 
Commission.

SEC. 3503. EXPENDITURES IN ACCORDANCE WITH OTHER LAWS.

    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--Reconstitution of Commission as Government Corporation

SEC. 3521. SHORT TITLE.

    This subtitle may be cited as the ``Panama Canal Amendments Act of 
1995''.

SEC. 3522. RECONSTITUTION OF COMMISSION AS GOVERNMENT CORPORATION.

    Section 1101 of the Panama Canal Act of 1979 (22 U.S.C. 3611) is 
amended to read as follows:

  ``establishment, purposes, offices, and residence of the commission

    ``Sec. 1101. (a) For the purposes of managing, operating, and 
maintaining the Panama Canal and its complementary works, installations 
and equipment, and of conducting operations incident thereto, in 
accordance with the Panama Canal Treaty of 1977 and related agreements, 
the Panama Canal Commission (hereinafter in this Act referred to as the 
`Commission') is established as a wholly owned government corporation 
(as that term is used in chapter 91 of title 31, United States Code) 
within the executive branch of the Government of the United States. The 
authority of the President with respect to the Commission shall be 
exercised through the Secretary of Defense.
    ``(b) The principal office of the Commission shall be located in 
the Republic of Panama in one of the areas made available for use of 
the United States under the Panama Canal Treaty of 1977 and related 
agreements, but the Commission may establish branch offices in such 
other places as it deems necessary or appropriate for the conduct of 
its business. Within the meaning of the laws of the United States 
relating to venue in civil actions, the Commission is an inhabitant and 
resident of the District of Columbia and the eastern judicial district 
of Louisiana.''.

SEC. 3523. SUPERVISORY BOARD.

    Section 1102 of the Panama Canal Act of 1979 (22 U.S.C. 3612) is 
amended by striking so much as precedes subsection (b) and inserting 
the following:

                          ``supervisory board

    ``Sec. 1102. (a) The Commission shall be supervised by a Board 
composed of nine members, one of whom shall be the Secretary of Defense 
or an officer of the Department of Defense designated by the Secretary. 
Not less than five members of the Board shall be nationals of the 
United States and the remaining members of the Board shall be nationals 
of the Republic of Panama. Three members of the Board who are nationals 
of the United States shall hold no other office in, and shall not be 
employed by, the Government of the United States, and shall be chosen 
for the independent perspective they can bring to the Commission's 
affairs. Members of the Board who are nationals of the United States 
shall cast their votes as directed by the Secretary of Defense or a 
designee of the Secretary of Defense.''.

SEC. 3524. INTERNATIONAL ADVISORS.

    Section 1102 of the Panama Canal Act of 1979 (22 U.S.C. 3612) is 
amended by adding at the end the following new subsection:
    ``(d)(1) In order to enhance the prestige of the Commission in the 
world shipping community and allow for the exchange of varied 
perspectives between the Board and distinguished international guests 
in the important deliberations of the Commission, the Government of the 
United States and the Republic of Panama may each invite to attend 
meetings of the Board, as a designated international advisor to the 
Board, one individual chosen for the independent perspective that 
individual can bring to the Commission's affairs, and who--
            ``(A) is not a citizen of Panama;
            ``(B) does not represent any user or customer of the Panama 
        Canal, or any particular interest group or nation; and
            ``(C) does not have any financial interest which could 
        constitute an actual or apparent conflict with regard to the 
        relationship of the individual with the Board of the 
        Commission.
    ``(2) Such designated international advisors may be compensated by 
the Commission in the same manner and under the same circumstances as 
apply under subsection (b) with regard to members of the Board. Such 
designated international advisors shall have no vote on matters pending 
before the Board.''.

SEC. 3525. GENERAL AND SPECIFIC POWERS OF COMMISSION.

    The Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.) is amended by 
inserting after section 1102 the following new sections:

                   ``general powers of the commission

    ``Sec. 1102a. (a) The Commission, subject to the Panama Canal 
Treaty of 1977 and related agreements, and to chapter 91 of title 31, 
United States Code, popularly known as the Government Corporation 
Control Act--
            ``(1) may adopt, alter, and use a corporate seal, which 
        shall be judicially noticed;
            ``(2) may by action of the Board of Directors adopt, amend, 
        and repeal bylaws governing the conduct of its general business 
        and the performance of the powers and duties granted to or 
        imposed upon it by law;
            ``(3) may sue and be sued in its corporate name, except 
        that--
                    ``(A) its amenability to suit is limited by Article 
                VIII of the Panama Canal Treaty of 1977, section 1401 
                of this Act, and otherwise by law;
                    ``(B) an attachment, garnishment, or similar 
                process may not be issued against salaries or other 
                moneys owed by the Commission to its employees except 
                as provided by section 5520a of title 5, United States 
                Code, and section 459, 461, and 462 of the Social 
                Security Act (42 U.S.C. 659, 661, 662), or as otherwise 
                specifically authorized by the laws of the United 
                States; and
                    ``(C) it is exempt from the payment of interest on 
                claims and judgments;
            ``(4) may enter into contracts, leases, agreements, or 
        other transactions; and
            ``(5) may determine the character of, and necessity for, 
        its obligations and expenditures and the manner in which they 
        shall be incurred, allowed, and paid, and may incur, allow, and 
        pay them, subject to pertinent provisions of law generally 
        applicable to Government corporations.
    ``(b) The Commission shall have the priority of the Government of 
the United States in the payment of debts out of bankrupt estates.
                    ``specific powers of commission

    ``Sec. 1102b. (a) Subject to the Panama Canal Treaty of 1977 and 
related agreements, and to chapter 91 of title 31, United States Code, 
popularly known as the Government Corporation Control Act, the 
Commission may--
            ``(1) manage, operate, and maintain the Panama Canal;
            ``(2) construct or acquire, establish, maintain, and 
        operate docks, wharves, piers, shoreline facilities, shops, 
        yards, marine railways, salvage and towing facilities, fuel-
        handling facilities, motor transportation facilities, power 
        systems, water systems, a telephone system, construction 
        facilities, living quarters and other buildings, warehouses, 
        storehouses, a printing plant, and manufacturing, processing, 
        or service facilities in connection therewith, recreational 
        facilities, and other activities, facilities, and appurtenances 
        necessary and appropriate for the accomplishment of the 
        purposes of this Act;
            ``(3) use the United States mails in the same manner and 
        under the same conditions as the executive departments of the 
        Federal Government; and
            ``(4) take such actions as are necessary or appropriate to 
        carry out the powers specifically conferred upon it.''.

SEC. 3526. CONGRESSIONAL REVIEW OF BUDGET.

    Section 1302 of the Panama Canal Act of 1979 (22 U.S.C. 3712) is 
amended--
            (1) in subsection (c)(1) by striking ``and subject to 
        paragraph (2)'';
            (2) by striking paragraph (2);
            (3) by redesignating paragraph (3) as paragraph (2); and
            (4) by amending subsection (e) to read as follows:
    ``(e) In accordance with section 9104 of title 31, United States 
Code, the Congress shall review the annual budget of the Commission.''.

SEC. 3527. AUDITS.

    Section 1313 of the Panama Canal Act of 1979 (22 U.S.C. 3723) is 
amended--
            (1) by striking the heading for the section and inserting 
        the following:

                              ``audits'';

            (2) in subsection (a) by striking ``Financial 
        transactions'' and inserting ``Subject to subsection (d), 
        financial transactions'';
            (3) in subsection (b) in the first sentence by striking 
        ``The Comptroller General'' and inserting ``Subject to 
        subsection (d), the Comptroller General''; and
            (4) by adding at the end the following new subsections:
    ``(d) At the discretion of the Board provided for in section 1102, 
the Commission may hire independent auditors to perform, in lieu of the 
Comptroller General, the audit and reporting functions prescribed in 
subsections (a) and (b).
    ``(e) In addition to auditing the financial statements of the 
Commission, the independent auditor shall, in accordance with standards 
for an examination of a financial forecast established by the American 
Institute of Certified Public Accountants, examine and report on the 
Commission's financial forecast that it will be in a position to meet 
its financial liabilities on December 31, 1999.''.

SEC. 3528. PRESCRIPTION OF MEASUREMENT RULES AND RATES OF TOLLS.

    Section 1601 of the Panama Canal Act of 1979 (22 U.S.C. 3791) is 
amended to read as follows:

         ``prescription of measurement rules and rates of tolls

    ``Sec. 1601. The Commission may, subject to the provisions of this 
Act, prescribe and from time to time change--
            ``(1) the rules for the measurement of vessels for the 
        Panama Canal; and
            ``(2) the tolls that shall be levied for use of the Panama 
        Canal.''.

SEC. 3529. PROCEDURES FOR CHANGES IN RULES OF MEASUREMENT AND RATES OF 
              TOLLS.

    Section 1604 of the Panama Canal Act of 1979 (22 U.S.C. 3794) is 
amended--
            (1) in subsection (a) in the first sentence by striking 
        ``1601(a)'' and inserting ``1601'';
            (2) by amending subsection (c) to read as follows:
    ``(c) After the proceedings have been conducted pursuant to 
subsections (a) and (b) of this section, the Commission may change the 
rules of measurement or rates of tolls, as the case may be. The 
Commission shall, however, publish notice of such change in the Federal 
Register not less than 30 days before the effective date of the 
change.''; and
            (3) by striking subsections (d) and (e) and redesignating 
        subsection (f) as subsection (d).

SEC. 3530. MISCELLANEOUS TECHNICAL AMENDMENTS.

    The Panama Canal Act of 1979 is amended--
            (1) in section 1205 (22 U.S.C. 3645) in the last sentence 
        by striking ``appropriation'' and inserting ``fund'';
            (2) in section 1303 (22 U.S.C. 3713) by striking ``The 
        authority of this section may not be used for administrative 
        expenses.'';
            (3) in section 1321(d) (22 U.S.C. 3731(d)) in the second 
        sentence by striking ``appropriations or'';
            (4) in section 1401(c) (22 U.S.C. 3761(c)) by striking 
        ``appropriated for or'';
            (5) in section 1415 (22 U.S.C. 3775) by striking 
        ``appropriated or''; and
            (6) in section 1416 (22 U.S.C. 3776) in the third sentence 
        by striking ``appropriated or''.

SEC. 3531. CONFORMING AMENDMENT TO TITLE 31, UNITED STATES CODE.

    Section 9101(3) of title 31, United States Code, is amended by 
adding at the end the following:
                    ``(P) the Panama Canal Commission.''.

            Passed the House of Representatives June 15, 1995.

            Attest:

                                                                 Clerk.
```