```

[Journal of the House of Representatives, 1995]
[Thursday, June 15, 1995 (80), Para 80.11 Roll No. 383]
[Pages 921-1006]
[From the U.S. Government Publishing Office, www.gpo.gov]

para.80.11                   [Roll No. 383]

                                AYES--411

     Abercrombie
     Ackerman
     Allard
     Andrews
     Archer
     Armey
     Bachus
     Baesler
     Baker (CA)
     Baker (LA)
     Baldacci
     Ballenger
     Barcia
     Barr
     Barrett (NE)
     Barrett (WI)
     Bartlett
     Barton
     Bass
     Bateman
     Bentsen
     Bereuter
     Berman
     Bevill
     Bilbray
     Bilirakis
     Bishop
     Bliley
     Blute
     Boehlert
     Boehner
     Bonilla
     Bonior
     Bono
     Borski
     Boucher
     Brewster
     Browder
     Brown (CA)
     Brown (FL)
     Brown (OH)
     Brownback
     Bryant (TN)
     Bryant (TX)
     Bunn
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Canady
     Castle
     Chabot
     Chambliss
     Chenoweth
     Christensen
     Chrysler
     Clay
     Clayton
     Clement
     Clinger
     Clyburn
     Coble
     Coburn
     Coleman
     Collins (GA)
     Collins (IL)
     Collins (MI)
     Combest
     Condit
     Cooley
     Costello
     Cox
     Coyne
     Cramer
     Crane
     Crapo
     Cremeans
     Cubin
     Cunningham
     Danner
     Davis
     de la Garza
     Deal
     DeLauro
     DeLay
     Dellums
     Deutsch
     Diaz-Balart
     Dicks
     Dingell
     Dixon
     Doggett
     Dooley
     Doolittle
     Dornan
     Doyle
     Dreier
     Duncan
     Dunn
     Durbin
     Edwards
     Ehlers
     Ehrlich
     Emerson
     Engel
     English
     Ensign
     Evans
     Everett
     Ewing
     Farr
     Fattah
     Fawell
     Fazio
     Fields (LA)
     Fields (TX)
     Flanagan
     Foglietta
     Foley
     Forbes
     Ford
     Fowler
     Fox
     Franks (CT)
     Franks (NJ)
     Frelinghuysen
     Frisa
     Frost
     Funderburk
     Gallegly
     Ganske
     Gejdenson
     Gekas
     Gephardt
     Geren
     Gibbons
     Gilchrest
     Gillmor
     Gilman
     Gonzalez
     Goodlatte
     Goodling
     Gordon
     Goss
     Graham
     Green
     Greenwood
     Gunderson
     Gutierrez
     Gutknecht
     Hall (OH)
     Hall (TX)
     Hamilton
     Hancock
     Hansen
     Harman
     Hastert
     Hastings (FL)
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hefner
     Heineman
     Herger
     Hilleary
     Hilliard
     Hinchey
     Hobson
     Hoekstra
     Hoke
     Holden
     Horn
     Hostettler
     Houghton
     Hoyer
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Jackson-Lee
     Jacobs
     Jefferson
     Johnson (CT)
     Johnson (SD)
     Johnson, E. B.
     Johnson, Sam
     Johnston
     Jones
     Kanjorski
     Kaptur
     Kasich
     Kelly
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     Kim
     King
     Kingston
     Klink
     Klug
     Knollenberg
     Kolbe
     LaFalce
     Lantos
     Largent
     Latham
     LaTourette
     Laughlin
     Lazio
     Leach
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Lightfoot
     Lincoln
     Linder
     Lipinski
     Livingston
     LoBiondo
     Lofgren
     Longley
     Lowey
     Lucas
     Luther
     Maloney
     Manton
     Manzullo
     Markey
     Martinez
     Martini
     Mascara
     Matsui
     McCarthy
     McCollum
     McCrery
     McDade
     McDermott
     McHale
     McHugh
     McInnis
     McIntosh
     McKinney
     Meehan
     Meek
     Menendez
     Metcalf
     Meyers
     Mfume
     Mica
     Miller (FL)
     Mineta
     Minge
     Mink
     Moakley
     Molinari
     Mollohan
     Montgomery
     Moorhead
     Moran
     Morella
     Murtha
     Myers
     Neal
     Nethercutt
     Neumann
     Ney
     Norwood
     Nussle
     Oberstar
     Obey
     Olver
     Ortiz
     Orton
     Owens
     Oxley

[[Page 922]]

     Packard
     Pallone
     Parker
     Pastor
     Paxon
     Payne (NJ)
     Payne (VA)
     Pelosi
     Peterson (FL)
     Peterson (MN)
     Petri
     Pickett
     Pombo
     Pomeroy
     Porter
     Portman
     Poshard
     Pryce
     Quillen
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Reed
     Regula
     Reynolds
     Richardson
     Riggs
     Rivers
     Roberts
     Roemer
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Rose
     Roth
     Roukema
     Roybal-Allard
     Royce
     Rush
     Sabo
     Salmon
     Sanders
     Sanford
     Sawyer
     Saxton
     Scarborough
     Schaefer
     Schiff
     Schroeder
     Schumer
     Scott
     Seastrand
     Sensenbrenner
     Serrano
     Shadegg
     Shaw
     Shays
     Shuster
     Sisisky
     Skaggs
     Skeen
     Skelton
     Slaughter
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Solomon
     Souder
     Spence
     Spratt
     Stark
     Stearns
     Stenholm
     Stokes
     Studds
     Stump
     Stupak
     Talent
     Tanner
     Tate
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Tejeda
     Thomas
     Thompson
     Thornberry
     Thurman
     Tiahrt
     Torkildsen
     Torres
     Torricelli
     Towns
     Traficant
     Tucker
     Upton
     Velazquez
     Vento
     Visclosky
     Volkmer
     Vucanovich
     Waldholtz
     Walker
     Walsh
     Wamp
     Ward
     Waters
     Watt (NC)
     Watts (OK)
     Waxman
     Weldon (FL)
     Weldon (PA)
     Weller
     White
     Whitfield
     Wicker
     Williams
     Wilson
     Wise
     Wolf
     Woolsey
     Wyden
     Wynn
     Young (FL)
     Zeliff
     Zimmer

                                NOES--14

     Becerra
     Beilenson
     Cardin
     Conyers
     DeFazio
     Eshoo
     Filner
     Frank (MA)
     Furse
     LaHood
     Miller (CA)
     Myrick
     Nadler
     Stockman

                              NOT VOTING--9

     Chapman
     Dickey
     Flake
     Kleczka
     McKeon
     McNulty
     Thornton
     Yates
     Young (AK)
  So the amendments, en bloc, were agreed to.
  After some further time,
  The SPEAKER pro tempore, Mr. HAYWORTH, assumed the Chair.
  When Mr. EMERSON, Chairman, pursuant to House Resolution 164, reported 
the bill back to the House with an amendment adopted by the Committee.
  The previous question having been ordered by said resolution.
  The following amendment, reported from the Committee of the Whole 
House on the state of the Union, was agreed to:

       Strike out all after the enacting clause and insert:

     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 C4I 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.

[[Page 923]]

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 associate 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.

[[Page 924]]

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.

[[Page 925]]

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.

[[Page 926]]

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.

[[Page 927]]

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

[[Page 928]]

       (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

[[Page 929]]

     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-

[[Page 930]]

     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

[[Page 931]]

     Vehicle (FARV) in the year that vehicle will be completed.

     SEC. 256. REVIEW OF C4I 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 (C4I) 
     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 C4I programs and the 
     actual needs of users of these programs.
       (2) The interoperability of service and defense-wide 
     C4I systems that are planned to be operational in 
     the future.
       (3) The need for an overall defense-wide architecture for 
     C4I.
       (4) Proposed strategies for ensuring that future 
     C4I acquisitions are compatible and interoperable 
     with an overall architecture.
       (5) Technological and administrative aspects of the 
     C4I 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 C4I 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 (C4I) 
     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

[[Page 932]]

     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.

[[Page 933]]

       ``(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.

[[Page 934]]

       (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

[[Page 935]]

       (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

[[Page 936]]

     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.

[[Page 937]]

       (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 Sec

[[Page 938]]

     retary 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.''.

[[Page 939]]

     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

[[Page 940]]

     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 com

[[Page 941]]

     plete 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 ca

[[Page 942]]

     pability 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

[[Page 943]]

     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
                                                               officers
 Total number of Air Force commissioned officers (excluding   who may be
officers in categories specified in section 523(b) of title   serving on
           10, United States Code) on active duty            active duty
                                                             in grade of
                                                                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).

[[Page 944]]

                   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 en

[[Page 945]]

     listments 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.

[[Page 946]]

       ``(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.

[[Page 947]]

     ``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 per

[[Page 948]]

     sonnel 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;

[[Page 949]]

       ``(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 estab

[[Page 950]]

     lish 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

[[Page 951]]

     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.

[[Page 952]]

       ``(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

[[Page 953]]

     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.

[[Page 954]]

       ``(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 sec

[[Page 955]]

     tion 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 
     inves

[[Page 956]]

     tigation 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

[[Page 957]]

     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;

[[Page 958]]

       (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

[[Page 959]]

     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)--

[[Page 960]]

       (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

[[Page 961]]

     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 require

[[Page 962]]

     ments 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

[[Page 963]]

       (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

[[Page 964]]

     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.

[[Page 965]]

       (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.

[[Page 966]]

       (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''.

[[Page 967]]

       (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

[[Page 968]]

     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.''.

[[Page 969]]

     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

[[Page 970]]

     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,

[[Page 971]]

     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.

[[Page 972]]

       (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.

[[Page 973]]

       (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.

[[Page 974]]

 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

[[Page 975]]

       (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''.

[[Page 976]]

       (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.

[[Page 977]]

       ``(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.

[[Page 978]]

       ``(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.

[[Page 979]]

       (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.

[[Page 980]]

                       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).

[[Page 981]]

       (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.

[[Page 982]]

       (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

[[Page 983]]

     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--

[[Page 984]]

       (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:

[[Page 985]]

       ``(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;

[[Page 986]]

       (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
------------------------------------------------------------------------
                                       Installation or
               State                      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           $3,000,000
                                     Francisco.
 
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       $2,050,000
                                     Range.
 
New York..........................  Fort Drum...........     $11,450,000
                                    United States             $8,300,000
                                     Military Academy.
                                    Watervliet Arsenal..        $680,000
 
North Carolina....................  Fort Bragg..........     $29,700,000
 
Oklahoma..........................  Fort Sill...........     $14,300,000
 
South Carolina....................  Naval Weapons            $25,700,000
                                     Station, Charleston
                                    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
------------------------------------------------------------------------
                                       Installation or
              Country                     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      119 units.................     $16,500,000
                                           Academy, West Point......
 
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.

[[Page 987]]

       (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
------------------------------------------------------------------------
                                       Installation or
               State                      location            Amount
------------------------------------------------------------------------
 
California........................  Marine Corps Air-         $2,490,000
                                    Marine Corps Base,       $27,584,000
                                     Camp Pendleton.....
                                    Nav Com Control &         $3,170,000
                                     Ocean Sur Cen RDT&E
                                     Div, San Diego.....
                                    Naval Air Station,        $7,600,000
                                     Lemoore............
                                    Naval Air Station,       $99,150,000
                                     North Island.......
                                    Naval Air Warfare         $3,700,000
                                     Center Weapons
                                     Division, China
                                     Lake...............
                                    Naval Air Warfare         $1,300,000
                                     Center Weapons
                                     Division, Point
                                     Mugu...............
                                    Naval Construction       $16,700,000
                                     Batallion Center,
                                     Port Hueneme.......
                                    Naval Station, San       $19,960,000
                                     Diego..............
 
Florida...........................  Naval School             $16,150,000
                                     Explosive Ordinance
                                     Disposal, Eglin Air
                                     Force Base.........
                                    Naval Technical           $2,565,000
                                     Training Center,
                                     Corry Station,
                                     Pensacola..........
 
Georgia...........................  Strategic Weapons         $2,450,000
                                     Facility, Atlantic,
                                     Kings Bay..........
                                    Marine Corps              $1,300,000
                                     Logistics Base,
                                     Albany.............
 
Hawaii............................  Intelligence Center       $2,200,000
                                     Pacific, Pearl
                                     Harbor.............
                                    Naval Com & Telecoms      $1,980,000
                                     Area MASTSTA
                                     EASTPAC, Honolulu..
                                    Naval Submarine          $22,500,000
                                     Base, Pearl Harbor.
 
Illinois..........................  Naval Training           $12,440,000
                                     Center, Great Lakes
 
Indiana...........................  Crane Naval Surface       $3,300,000
                                     Warfare Center.....
 
Maryland..........................  Naval Academy,            $3,600,000
                                     Annapolis..........
                                    Various Maryland          $1,200,000
                                     Locations..........
 
New Jersey........................  Naval Air Warfare         $1,700,000
                                     Center Aircraft
                                     Division, Lakehurst
 
North Carolina....................  Marine Corps Air         $11,430,000
                                     Station, Cherry
                                     Point..............
                                    Marine Corps Air         $14,650,000
                                     Station, New River.
                                    Marine Corps Base,       $59,300,000
                                     Camp LeJeune.......
 
Pennsylvania......................  Philadelphia Naval        $6,000,000
                                     Shipyard...........
 
South Carolina....................  Marine Corps Air         $15,000,000
                                     Station, Beaufort..
 
Texas.............................  Naval Air Station,        $4,400,000
                                     Corpus Christi.....
                                    Naval Air Station,        $2,710,000
                                     Kingsville.........
                                    Naval Station,            $2,640,000
                                     Ingleside..........
 
Virginia..........................  Fleet and Industrial      $8,390,000
                                     Supply Center,
                                     Williamsburg.......
                                    Marine Corps Combat       $3,500,000
                                     Development
                                     Command, Quantico..
                                    Naval Hospital,           $9,500,000
                                     Portsmouth.........
                                    Naval Station,           $28,580,000
                                     Norfolk............
                                    Naval Weapons             $1,300,000
                                     Station, Yorktown..
 
Washington........................  Naval Undersea            $5,300,000
                                     Warfare Center
                                     Division, Keyport..
                                    Puget Sound Naval        $19,870,000
                                     Shipyard, Bremerton
 
                                      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
------------------------------------------------------------------------
                                       Installation or
              Country                     location            Amount
------------------------------------------------------------------------
 
Guam..............................  Naval Com & Telecoms      $2,250,000
                                    Navy Public Works        $16,180,000
                                     Center, Guam.......
 
Italy.............................  Naval Air Station,       $12,170,000
                                     Sigonella..........
                                    Naval Support            $24,950,000
                                     Activity, Naples...
 
Puerto Rico.......................  Naval Security Group      $2,200,000
                                     Activity, Sabana
                                     Seca...............
                                    Naval Station,           $11,500,000
                                     Roosevelt Roads....
 
                                      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 Base, Camp     205 units.................     $30,080,000
                                          Marine Corps Base, Camp     Community Center..........      $1,438,000
                                           Pendleton................
                                          Marine Corps Base, Camp     Housing Office............        $707,000
                                           Pendleton................
                                          Naval Air Station, Lemoore  240 units.................     $34,900,000
                                          Pacific Missile Test        Housing Office............      $1,020,000
                                           Center, Point Mugu.......
                                          Public Works Center, San    346 units.................     $49,310,000
                                           Diego....................
 
Hawaii..................................  Naval Complex, Oahu.......  252 units.................     $48,400,000
 
Maryland................................  Naval Air Test Center,      Warehouse.................        $890,000
                                           Patuxent River...........
                                          US Naval Academy,           Housing Office............        $800,000
                                           Annapolis................
 
North Carolina..........................  Marine Corps Air Station,   Community Center..........      $1,003,000
                                           Cherry Point.............
 
Pennsylvania............................  Navy Ships Parts Control    Housing Office............        $300,000
                                           Center, Mechanicsburg....
 
Puerto Rico.............................  Naval Station, Roosevelt    Housing Office............        $710,000
                                           Roads....................
 
Virginia................................  Naval Surface Warfare       Housing Office............        $520,000
                                           Center, Dahlgren.........
                                          Public Works Center,        320 units.................     $42,500,000
                                           Norfolk..................
                                          Public Works Center,        Housing Office............      $1,390,000
                                           Norfolk..................
 
                                                                        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
------------------------------------------------------------------------
                                       Installation or
               State                      location            Amount
------------------------------------------------------------------------
 
Alabama...........................  Maxwell Air Force         $3,700,000
 
Alaska............................  Eielson Air Force         $3,850,000
                                     Base...............
                                    Elmendorf Air Force       $9,100,000
                                     Base...............
                                    Tin City Long Range       $2,500,000
                                     RADAR Site.........
 

[[Page 988]]

 
Arizona...........................  Davis-Monthan Air         $4,800,000
                                     Force Base.
                                    Luke Air Force Base.      $5,200,000
 
Arkansas..........................  Little Rock Air           $2,500,000
                                     Force Base.
 
California........................  Beale Air Force Base      $7,500,000
                                    Edwards Air Force        $33,800,000
                                     Base.
                                    Travis Air Force         $26,700,000
                                     Base.
                                    Vandenberg Air Force      $6,000,000
                                     Base.
 
Colorado..........................  Buckley Air National      $5,500,000
                                     Guard Base.
                                    Peterson Air Force        $4,390,000
                                     Base.
                                    US Air Force Academy     $12,874,000
 
Delaware..........................  Dover Air Force Base      $5,500,000
 
District of Columbia..............  Bolling Air Force        $12,100,000
                                     Base.
 
Florida...........................  Cape Canaveral Air        $1,600,000
                                     Force Station.
                                    Eglin Air Force Base     $13,500,000
                                    Tyndall Air Force         $1,200,000
                                     Base.
 
Georgia...........................  Moody Air Force Base     $19,190,000
                                    Robins Air Force          $6,900,000
                                     Base.
 
Hawaii............................  Hickam Air Force         $10,700,000
                                     Base.
 
Idaho.............................  Mountain Home Air        $18,650,000
                                     Force Base.
 
Illinois..........................  Scott Air Force Base     $12,700,000
 
Kansas............................  McConnell Air Force      $15,950,000
                                     Base.
 
Louisiana.........................  Barksdale Air Force       $2,500,000
                                     Base.
 
Maryland..........................  Andrews Air Force        $12,886,000
                                     Base.
 
Mississippi.......................  Columbus Air Force        $1,150,000
                                     Base.
                                    Keesler Air Force        $14,800,000
                                     Base.
 
Missouri..........................  Whiteman Air Force       $24,600,000
                                     Base.
 
Nevada............................  Nellis Air Force         $10,500,000
                                     Base.
 
New Jersey........................  McGuire Air Force        $21,500,000
                                     Base.
 
New Mexico........................  Cannon Air Force         $13,420,000
                                     Base.
                                    Kirtland Air Force        $9,156,000
                                     Base.
 
North Carolina....................  Pope Air Force Base.      $8,250,000
                                    Seymour Johnson Air       $7,530,000
                                     Force Base.
 
North Dakota......................  Grand Forks Air          $14,800,000
                                     Force Base.
                                    Minot Air Force Base      $1,550,000
 
Ohio..............................  Wright Patterson Air      $4,100,000
                                     Force Base.
 
Oklahoma..........................  Altus Air Force Base      $5,200,000
                                    Tinker Air Force          $5,100,000
                                     Base.
 
South Carolina....................  Charleston Air Force     $12,500,000
                                     Base.
                                    Shaw Air Force Base.      $1,300,000
 
Tennessee.........................  Arnold Air Force          $5,000,000
                                     Base.
 
Texas.............................  Dyess Air Force Base      $5,400,000
                                    Goodfellow Air Force      $1,000,000
                                     Base.
                                    Kelly Air Force Base      $3,244,000
                                    Laughlin Air Force        $1,400,000
                                     Base.
                                    Randolph Air Force        $3,100,000
                                     Base.
                                    Reese Air Force Base      $1,200,000
                                    Sheppard Air Force        $1,500,000
                                     Base.
 
Virginia..........................  Langley Air Force         $1,000,000
                                     Base.
 
Washington........................  Fairchild Air Force      $15,700,000
                                     Base.
                                    McChord Air Force         $9,900,000
                                     Base.
 
Wyoming...........................  F.E. Warren Air          $13,000,000
                                     Force Base.
 
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
------------------------------------------------------------------------
                                       Installation or
              Country                     location            Amount
------------------------------------------------------------------------
 
Germany...........................  Spangdahlem Air Base      $8,380,000
                                    Vogelweh Annex......       2,600,000
 
Greece............................  Araxos Radio Relay         1,950,000
                                     Site.
 
Italy.............................  Aviano Air Base.....       2,350,000
                                    Ghedi Radio Relay          1,450,000
                                     Site.
 
Turkey............................  Ankara Air Station..       7,000,000
                                    Incirlik Air Base...       4,500,000
 
United Kingdom....................  Lakenheath Royal Air       1,820,000
                                     Force Base.........
                                    Mildenhall Royal Air       2,250,000
                                     Force Base.
 
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 Force Base..  Housing Office/Maintenance      $3,000,000
 
Arizona.................................  Davis-Monthan Air Force     80 units..................       9,498,000
                                           Base.....................
 
Arkansas................................  Little Rock Air Force Base  Replace 1 General Officer          210,000
                                                                       Quarters.................
 
California..............................  Beale Air Force Base......  Family Housing 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              513,000
                                                                       Officer Quarter..........
 
Guam....................................  Andersen Air Force Base...  Housing Maintenance              1,700,000
                                                                       Facility.................
 
Idaho...................................  Mountain Home Air Force     Housing Management                 844,000
                                           Base.....................   Facility.................
 
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   1 General Officer Quarters         204,000
                                           Base.....................
 
South Carolina..........................  Shaw Air Force Base.......  Housing Maintenance                715,000
                                                                       Facility.................
 
Texas...................................  Dyess Air Force Base......  Housing Maintenance                580,000
                                                                       Facility.................
                                          Lackland Air Force Base...  67 units..................       6,200,000
                                          Sheppard Air Force Base...  Management Office.........         500,000
                                          Sheppard Air Force Base...  Housing Maintenance                600,000
                                                                       Facility.................
 
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

[[Page 989]]

     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
------------------------------------------------------------------------
                                       Installation or
           Agency/State                   location            Amount
------------------------------------------------------------------------
 
Ballistic Missile Defense
 
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         $1,743,000
                                     Base...............
 
Defense Logistics Agency
 
Alabama...........................  Defense Distribution      $3,550,000
                                     Anniston...........
 
California........................  Defense Distribution     $15,000,000
                                     Stockton...........
                                    DFSC, Point Mugu....        $750,000
 
Delaware..........................  DFSC, Dover Air          $15,554,000
                                     Force Base.........
 
Florida...........................  DFSC, Eglin Air           $2,400,000
                                     Force Base.........
 
Louisiana.........................  DFSC, Barksdale Air      $13,100,000
                                     Force Base.........
 
New Jersey........................  DFSC, McGuire Air        $12,000,000
                                     Force Base.........
 
Pennsylvania......................  Def Distribution New      $4,600,000
                                     Cumberland--DDSP...
 
Virginia..........................  Defense Distribution     $10,400,000
                                     Depot--DDNV........
 
Defense Mapping Agency
 
Missouri..........................  Defense Mapping          $40,300,000
                                     Agency Aerospace
                                     Center.............
 
Defense Medical Facility Office
 
Arizona...........................  Luke Air Force Base.      $8,100,000
 
California........................  Fort Irwin..........      $6,900,000
                                    Marine Corps Base,        $1,700,000
                                     Camp Pendleton.....
                                    Vandenberg Air Force      $5,700,000
                                     Base...............
 
Delaware..........................  Dover Air Force Base      $4,400,000
 
Georgia...........................  Fort Benning........      $5,600,000
 
Louisiana.........................  Barksdale Air Force       $4,100,000
                                     Base...............
 
Maryland..........................  Bethesda Naval            $1,300,000
                                     Hospital...........
                                    Walter Reed Army          $1,550,000
                                     Institute of
                                     Research...........
 
Texas.............................  Fort Hood...........      $5,500,000
                                    Lackland Air Force        $6,100,000
                                     Base...............
                                    Reese Air Force Base      $1,000,000
 
Virginia..........................  Northwest Naval           $4,300,000
                                     Security Group
                                     Activity...........
 
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         $5,479,000
                                     Base...............
 
Georgia...........................  Fort Benning........      $1,116,000
 
South Carolina....................  Fort Jackson........        $576,000
 
Special Operations Command
 
California........................  Naval Air Station,        $5,200,000
                                     Miramar............
 
Florida...........................  Duke Field..........      $2,400,000
                                    Eglin Auxiliary          $14,150,000
                                     Field 9............
 
Louisiana.........................  Naval Support               $730,000
                                     Activity, New
                                     Orleans............
 
North Carolina....................  Fort Bragg..........     $23,800,000
 
Pennsylvania......................  Olmstead Field,           $1,643,000
                                     Harrisburg IAP.....
 
Virginia..........................  Dam Neck............      $6,100,000
                                    Naval Amphibious          $4,500,000
                                     Base, Little Creek.
 
                                      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 Agency
 
Puerto Rico.......................  Defense Fuel Support      $6,200,000
                                     Point, Roosevelt
                                     Roads..............
 
Spain.............................  DFSC Rota...........      $7,400,000
 
Defense Medical Facility Office
 
Italy.............................  Naval Support             $5,000,000
                                     Activity, Naples...
 
Department of Defense Dependents
 Schools
 
Germany...........................  Ramstein Air Force       $19,205,000
                                     Base...............
 
Italy.............................  Naval Air Station,        $7,595,000
                                     Sigonella..........
 
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

[[Page 990]]

     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
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or  location            Project               Amount
----------------------------------------------------------------------------------------------------------------
 
Arkansas................................  Pine Bluff Arsenal........  Ammunition                     $15,000,000
 
Hawaii..................................  Schofield Barracks........  Additions and Alterations      $17,500,000
                                                                       Sewage Treatment Plant...
 
Virginia................................  Fort Pickett..............  Sewage Treatment Plant....      $5,800,000
                                                                      Family Housing (26 Units).      $2,300,000
 
----------------------------------------------------------------------------------------------------------------

                                 Navy: Extension of 1993 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or  location            Project               Amount
----------------------------------------------------------------------------------------------------------------
 
California..............................  Camp Pendleton Marine       Sewage Treatment Plant....     $19,740,000
 
Maryland................................  Patuxent River Naval        Advanced Systems               $60,990,000
                                           Warfare Center...........   Integration Facility.....
 
Mississippi.............................  Meridian Naval Air Station  Child Development Center..      $1,100,000
 
Virginia................................  Dam Neck Fleet Combat       Land Acquisition..........      $4,500,000
                                           Training Center..........
 
----------------------------------------------------------------------------------------------------------------

                               Air Force: Extension of 1993 Project Authorization
----------------------------------------------------------------------------------------------------------------
            State or country               Installation or  location            Project               Amount
----------------------------------------------------------------------------------------------------------------
 
District of Columbia....................  Bolling Air Force Base....  Base Engineer Complex.....      $1,300,000
 
North Carolina..........................  Pope Air Force Base.......  Munitions Storage Complex.      $4,300,000
 
Virginia................................  Langley Air Force Base....  Civil Engineer Complex....      $5,300,000
 
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 Alterations       $1,921,000
                                          Clarksburg................  Additions and Alterations       $1,156,000
                                                                       AMSA.....................
                                          Grantville................  Reserve Center/OMS........      $2,785,000
                                          Jane Lew..................  Reserve Center............      $1,566,000
                                          Lewisburg.................  Reserve Center/OMS........      $1,631,000

[[Page 991]]

 
                                          Weirton...................  Reserve Center/OMS........      $3,481,000
 
----------------------------------------------------------------------------------------------------------------

                          Army National Guard: Extension of 1993 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                  State                            Location                     Project               Amount
----------------------------------------------------------------------------------------------------------------
 
Alabama.................................  Tuscaloosa................  Additions and Alternations        $800,000
                                          Union Springs.............  Additions and Alternations        $300,000
                                                                       Armory...................
 
New Jersey..............................  Fort Dix..................  Additions and Alternations      $4,750,000
                                                                       Armory...................
 
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
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or  location            Project               Amount
----------------------------------------------------------------------------------------------------------------
 
Oregon..................................  Umatilla Army Depot.......  Ammunition                      $3,600,000
                                                                      Ammunition                      $7,500,000
                                                                       Demilitarization
                                                                       Utilities................
 
----------------------------------------------------------------------------------------------------------------

                              Army Reserve: Extension of 1992 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                            Location                     Project               Amount
----------------------------------------------------------------------------------------------------------------
 
Tennessee...............................  Jackson...................  Joint Training Facility...      $1,537,000
----------------------------------------------------------------------------------------------------------------

                          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 ac

[[Page 992]]

     count 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

[[Page 993]]

     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 ex

[[Page 994]]

     change 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 appro

[[Page 995]]

     priate 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 Sec

[[Page 996]]

     retary 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.

[[Page 997]]

     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.

[[Page 998]]

            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

[[Page 999]]

     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

[[Page 1000]]

     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.

[[Page 1001]]

       (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

[[Page 1002]]

     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

[[Page 1003]]

     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

[[Page 1004]]

     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:

[[Page 1005]]

                   ``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.''.

  The bill, as amended, was ordered to be engrossed and read a third 
time, was read a third time by title.
  Mr. DELLUMS moved to recommit the bill to the Committee on Armed 
Services with instructions to report the bill back to the House 
forthwith with the following amendments:

       Page  38,  line  18,  insert  ``(a)  In  General.--'' 
     before ``Of the amounts''.
       Page 38, after line 22, insert the following:
       (b) NMD Reduction.--The amounts provided in subsection (a) 
     and in section 201(4) are each hereby reduced by 
     $100,000,000, to be derived from amounts for the National 
     Missile Defense program.
       At the end of title III (page 153, after line 25), insert 
     the following new section:

     SEC. 396. DEPARTMENT OF DEFENSE DEPENDENT EDUCATION 
                   ASSISTANCE (IMPACT AID) FOR SCHOOL-AGED 
                   DEPENDENTS OF CERTAIN MILITARY PERSONNEL.

       (a) Provision of Dependent Education Assistance (Impact 
     Aid).--(1) In the case of students described in section 
     8003(a)(1)(D) of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7703(a)(1)(D)), the Secretary of Defense 
     shall provide funds to local educational agencies that 
     received payments for these students from the Department of 
     Education in fiscal year 1994 or 1995 under the Act of 
     September 30, 1950 (Public Law 874, 81st Congress) or title 
     VIII of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 7701 et seq.).
       (2) Subject to the availability of appropriations for this 
     purpose, funds shall be paid under this section in fiscal 
     year 1996. However, the Secretary of Defense may use the 
     authority provided by this section only in the event that 
     payments under section 8003 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7703) for a fiscal year on 
     behalf of students described in subsection (a)(1)(D) of such 
     section are not made in a total amount equal to at least the 
     level of funding for fiscal year 1995 under such section for 
     such students.
       (b) Computation of Basic Payment.--Each local educational 
     agency described in subsection (a) shall be eligible for 
     basic payments, which shall be computed for each year by 
     multiplying--
       (1) the amount determined by dividing--
       (A) the amount of funds received by the local educational 
     agency in the second preceding fiscal year under this 
     subsection, section 3(b)(3) of the Act of September 30, 1950 
     (Public Law 874, 81st Congress), or section 8003(b) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7703(b)); by
       (B) the number of students described in section 
     8003(a)(1)(D) of such Act in average daily attendance in the 
     second preceding fiscal year; and
       (2) the number of such students in average daily attendance 
     of the local educational agency in the fiscal year preceding 
     the fiscal year in which the payment is being made.
       (c) Computation of Disability Payment.--Each local 
     educational agency described in subsection (a) shall also be 
     eligible for disability payments for students described in 
     section 8003(d)(1)(B) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7703(d)(1)(B)). The payment 
     required by this subsection shall be computed for each year 
     by multiplying--
       (1) the amount determined by dividing--
       (A) the amount of funds received by the local educational 
     agency during the second

[[Page 1006]]

      preceding fiscal year under this subsection, section 
     3(d)(2)(C) of the Act of September 30, 1950 (Public Law 874, 
     81st Congress), or section 8003(d) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703(d)); by
       (B) the number of students described in section 
     8003(d)(1)(B) of such Act in average daily attendance in the 
     second preceding fiscal year; and
       (2) the number of such students in average daily attendance 
     of each local educational agency in the fiscal year preceding 
     the fiscal year in which the payment is being made.
       (d) Heavily Impacted Assistance.--(1) Each local 
     educational agency described in subsection (a) shall also be 
     eligible for heavily impacted assistance if--
       (A) the local educational agency--
       (i) had an enrollment of students described in 
     subparagraphs (B) and (D) of section 8003(a)(1) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7703(a)(1)) during the previous fiscal year, the number of 
     which constituted at least 40 percent of the total student 
     enrollment of such agency; and
       (ii) has a tax rate for general fund purposes which is at 
     least 95 percent of the average tax rate for general fund 
     purposes of comparable educational agencies in the State; or
       (B) the local educational agency--
       (i) had an enrollment of students described in 
     subparagraphs (B) and (D) of section 8003(a)(1) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7703(a)(1)) during the previous fiscal year, the number of 
     which constituted at least 35 percent of the total student 
     enrollment of such agency; and
       (ii) has a tax rate for general fund purposes which is at 
     least 125 percent of the average tax rate for general fund 
     purposes of comparable educational agencies in the State.
       (2)(A) For each local educational agency described in 
     paragraph (1), payments for each year shall be computed by 
     first determining the greater of--
       (i) the average per-pupil expenditure of the State in which 
     the agency is located; or
       (ii) the average per-pupil expenditure of all the States.
       (B) The Secretary shall next subtract from the amount 
     determined under subparagraph (A) the average amount of State 
     aid per pupil received for that year by each local 
     educational agency described in paragraph (1).
       (C) For each local educational agency described in 
     paragraph (1), the Secretary shall multiply the amount 
     determined under subparagraph (B) by the total number of 
     students described in subparagraphs (B) and (D) of section 
     8003(a)(1) of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7703(a)(1)) in average daily attendance for 
     that year.
       (D) Finally, the Secretary shall reduce the amount 
     determined under subparagraph (C) for a local educational 
     agency for a fiscal year by the total amount of--
       (i) all payments the local educational agency receives 
     under subsections (b) and (c) for that year; and
       (ii) any payments actually received under section 8003 of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7703) for that year.
       (3) Notwithstanding any other provision of this section, a 
     local educational agency that actually receives funds under 
     section 8003(f) of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7703(f)) for a fiscal year shall be 
     eligible to receive funds under this subsection only after 
     the full amount computed under paragraph (2) has been paid to 
     all local educational agencies described in paragraph (1) 
     that do not receive funds under such section for that fiscal 
     year.
       (4) For purposes of providing assistance under this 
     subsection, the Secretary shall use student and revenue data 
     from the local educational agency for the fiscal year for 
     which the agency is applying for assistance.
       (5) For purposes of this subsection, the Secretary shall 
     determine the current year State average per-pupil 
     expenditure by increasing or decreasing the per-pupil 
     expenditure data for the second preceding fiscal year by the 
     same percentage increase or decrease reflected between the 
     per-pupil expenditure data for the fourth preceding fiscal 
     year and the per-pupil expenditure data for the second 
     preceding fiscal year.
       (6) For purposes of this subsection, the term ``average 
     per-pupil expenditure'' means the aggregate current 
     expenditures of all local educational agencies in the State, 
     divided by the total number of children in average daily 
     attendance for whom such agencies provided free public 
     education.
       (e) Prohibition on Multiple Payments.--(1) Amounts received 
     by a local educational agency under subsection (d) in a 
     fiscal year, when added to amounts actually received under 
     section 8003(f) of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 7703(f)) for that year, may not exceed the 
     amount the agency would have received under such section had 
     assistance under such section been fully funded.
       (2) Amounts received by a local educational agency under 
     subsection (c) in a fiscal year, when added to amounts 
     actually received under section 8003(d) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703(d)) for that 
     year, may not exceed the amount the agency would have 
     received under such section had assistance under such section 
     been fully funded.
       (3) Amounts received by a local educational agency under 
     subsection (b) in a fiscal year, when added to amounts 
     actually received under section 8003(b) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703(b)) for that 
     year, may not exceed the amount the agency would have 
     received under such section had assistance under such section 
     been fully funded.
       (f) Proration of Amounts.--If necessary due to insufficient 
     funds to carry out this section, the Secretary shall ratably 
     reduce payments under subsections (b), (c), and (d).
       (g) Cooperation.--The Secretary of Education shall assist 
     the Secretary of Defense in gathering such information from 
     the local education agencies and State educational agencies 
     as may be needed in order to carry out this section.
       (h) Funds for Fiscal Year 1996.--The amount provided in 
     section 301(5) for operation and maintenance for Defense-wide 
     activities is hereby increased by $100,000,000. Of the funds 
     corresponding to such increase--
       (1) $50,000,000 shall be available for payments under 
     subsection (b) in fiscal year 1996;
       (2) $10,000,000 shall be available for payments under 
     subsection (c) in fiscal year 1996; and
       (3) $40,000,000 shall be available for payments under 
     subsection (d) in fiscal year 1996.

  After debate,
  By unanimous consent, the previous question was ordered on the motion 
to recommit with instructions.
  The question being put, viva voce,
  Will the House recommit said bill with instructions?
  The SPEAKER pro tempore, Mr. HAYWORTH, announced that the nays had it.
  Mr. DELLUMS demanded a recorded vote on the said motion to recommit, 
which demand was supported by one-fifth of a quorum, so a recorded vote 
was ordered.
  The vote was taken by electronic device.

It was decided in the

Yeas

188

negative

Nays

239
```