IIA

104TH CONGRESS

1ST SESSION H. R. 1530

IN THE SENATE OF THE UNITED STATES

JUNE 20 (legislative day, JUNE 19), 1995

Received; read twice and referred to the Committee on Armed Services

AN ACT

To authorize appropriations for fiscal year 1996 for military

activities of the Department of Defense, for military

construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for

such fiscal year for the Armed Forces, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘National Defense Au3 thorization Act for Fiscal Year 1996’’.

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

5 CONTENTS.

6 (a) DIVISIONS.—This Act is organized into three divi7 sions as follows:

8 (1) Division A—Department of Defense Au9 thorizations.

10 (2) Division B—Military Construction Author11 izations.

12 (3) Division C—Department of Energy Na13 tional Security Authorizations and Other Authoriza14 tions.

15 (b) TABLE OF CONTENTS.—The table of contents for

16 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.
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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
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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.
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Sec. 323. Repeal of certain environmental education programs.

Sec. 324. Repeal of limitation on obligation of amounts transferred from environmental restoration transfer account.

Sec. 325. Elimination of authority to transfer amounts for toxicological profiles.

Sec. 326. Sense of Congress on use of Defense Environmental Restoration Account.

Subtitle D—Civilian Employees and Nonappropriated Fund

Instrumentality Employees

Sec. 331. Management of Department of Defense civilian personnel.

Sec. 332. Management of depot employees.

Sec. 333. Conversion to performance by civilian employees of active-duty positions.

Sec. 334. Personnel actions involving employees of nonappropriated fund instrumentalities.

Sec. 335. Limitation on provision of overseas living quarters allowances for

nonappropriated fund instrumentality employees.

Sec. 336. Overtime exemption for nonappropriated fund employees.

Sec. 337. Continued health insurance coverage.

Sec. 338. Creditability of certain NAFI service under the Federal Employees’

Retirement System.

Subtitle E—Commissaries and Nonappropriated Fund

Instrumentalities

Sec. 341. Operation of commissary store system.

Sec. 342. Pricing policies for commissary store merchandise.

Sec. 343. Limited release of commissary stores sales information to manufacturers, distributors, and other vendors doing business with Defense Commissary Agency.

Sec. 344. Economical distribution of distilled spirits by nonappropriated fund

instrumentalities.

Sec. 345. Transportation by commissaries and exchanges to overseas locations.

Sec. 346. Demonstration program for uniform funding of morale, welfare, and

recreation activities at certain military installations.

Sec. 347. Continued operation of base exchange mart at Fort Worth Naval Air

Station and authority to expand base exchange mart program.

Sec. 348. Uniform deferred payments program for military exchanges.

Sec. 349. Availability of funds to offset expenses incurred by Army and Air

Force Exchange Service on account of troop reductions in Europe.

Sec. 350. Study regarding improving efficiencies in operation of military exchanges and other morale, welfare, and recreation activities

and commissary stores.

Sec. 351. Extension of deadline for conversion of Navy ships’ stores to operation as nonappropriated fund instrumentalities.

Subtitle F—Contracting Out

Sec. 357. Procurement of electricity from most economical source.

Sec. 358. Procurement of certain commodities from most economical source.

Sec. 359. Commercial procurement of printing and duplication services.

Sec. 360. Direct delivery of assorted consumable inventory items of Department

of Defense.
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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.
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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.
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Subtitle C—Matters Relating to Force Levels

Sec. 521. Floor on end strengths.

Sec. 522. Army officer manning levels.

Sec. 523. Comptroller General review of proposed Army end strength allocations.

Sec. 524. Manning status of highly deployable support units.

Sec. 525. Sense of Congress concerning personnel tempo rates.

Subtitle D—Amendments to the Uniform Code of Military

Justice

Sec. 541. References to Uniform Code of Military Justice.

Sec. 542. Forfeiture of pay and allowances during confinement by sentence of

court-martial.

Sec. 543. Refusal to testify before court-martial.

Sec. 544. Flight from apprehension.

Sec. 545. Carnal knowledge.

Sec. 546. Time after accession for initial instruction in the Uniform Code of

Military Justice.

Sec. 547. Persons who may appear before the United States Court of Appeals

for the Armed Forces.

Sec. 548. Discretionary representation by Government appellate defense counsel

in petitioning Supreme Court for writ of certiorari.

Sec. 549. Repeal of termination of authority for Chief Justice of United States

to designate Article III judges for temporary service on Court

of Appeals for the Armed Forces.

Sec. 550. Technical amendment.

Subtitle E—Other Matters

Sec. 551. Equalization of accrual of service credit for officers and enlisted

members.

Sec. 552. Extension of expiring personnel authorities.

Sec. 553. Increase in educational assistance allowance with respect to skills or

specialties for which there is a critical shortage of personnel.

Sec. 554. Amendments to education loan repayment programs.

Sec. 555. Recognition by States of living wills of members, certain former members, and their dependents.

Sec. 556. Transitional compensation for dependents of members of the Armed

Forces separated for dependent abuse.

Sec. 557. Army ranger training.

Sec. 558. Repeal of certain civil-military programs.

Sec. 559. Eligibility for Armed Forces Expeditionary Medal based upon service

in El Salvador.

Sec. 560. Revision and codification of Military Family Act and Military Child

Care Act.

Sec. 561. Discharge of members of the Armed Forces who have the HIV–1

virus.

Sec. 562. Authority to appoint Brigadier General Charles E. Yeager, United

States Air Forces (retired) to the grade of major general on

the retired list.

Sec. 563. Determination of whereabouts and status of missing persons.

Sec. 564. Nominations to service academies from Commonwealth of the Northern Marianas Islands.
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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
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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.
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Sec. 744. Demonstration program to train military medical personnel in civilian

shock trauma units.

Sec. 745. Study regarding Department of Defense efforts to determine appropriate force levels of wartime medical personnel.

Sec. 746. Study regarding expanded mental health services for certain covered

beneficiaries.

Sec. 747. Report on improved access to military health care for covered beneficiaries entitled to Medicare.

Sec. 748. Sense of Congress on continuity of health care services for covered

beneficiaries adversely affected by closures of military medical

treatment facilities.

TITLE VIII—ACQUISITION POLICY, ACQUISITION

MANAGEMENT, AND RELATED MATTERS

Subtitle A—Competition

Sec. 801. Competition provisions.

Sec. 802. Preaward debriefings.

Sec. 803. Contract types.

Subtitle B—Commercial Items

Sec. 811. Commercial item exception to requirement for cost or pricing data

and information limitations.

Sec. 812. Application of simplified procedures to commercial items.

Sec. 813. Amendment to definition of commercial items.

Sec. 814. Inapplicability of cost accounting standards to contracts and subcontracts for commercial items.

Subtitle C—Additional Reform Provisions

Sec. 821. Repeals of certain procurement provisions.

Sec. 822. Fees for certain testing services.

Sec. 823. Testing of defense acquisition programs.

Sec. 824. Coordination and communication of defense research activities.

Sec. 825. Addition of certain items to domestic source limitation.

Sec. 826. Revisions to procurement notice provisions.

Sec. 827. Encouragement of use of leasing authority.

Sec. 828. Government reliance on the private sector.

Sec. 829. Elimination of certain certification requirements.

Sec. 830. Amendment to commencement and expiration of authority to conduct

certain tests of procurement procedures.

Sec. 831. Procurement integrity.

Sec. 832. Further acquisition streamlining provisions.

Sec. 833. Justification of major defense acquisition programs not meeting

goals.

Sec. 834. Enhanced performance incentives for acquisition workforce.

Sec. 835. Results oriented acquisition program cycle.

Sec. 836. Rapid contracting goal.

Sec. 837. Encouragement of multiyear contracting.

Sec. 838. Contractor share of gains and losses from cost, schedule, and performance experience.

Sec. 839. Phase funding of defense acquisition programs.

Sec. 840. Improved Department of Defense contract payment procedures.

Sec. 841. Consideration of past performance in assignment to acquisition positions.
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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
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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.
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Sec. 1105. Revision to authority for assistance for weapons destruction.

Sec. 1106. Prior notice to Congress of obligation of funds.

Sec. 1107. Report on accounting for United States assistance.

Sec. 1108. Limitation on Cooperative Threat Reduction program relating to offensive biological weapons program in Russia.

TITLE XII—MATTERS RELATING TO OTHER NATIONS

Subtitle A—Peacekeeping Provisions

Sec. 1201. Limitation on expenditure of Department of Defense funds for United States forces placed under United Nations command or control.

Sec. 1202. Limitation on use of Department of Defense funds for United

States share of costs of United Nations peacekeeping activities.

Subtitle B—Humanitarian Assistance Programs

Sec. 1211. Overseas Humanitarian, Disaster, and Civic Aid programs.

Sec. 1212. Humanitarian assistance.

Sec. 1213. Landmine clearance program.

Subtitle C—Other Matters

Sec. 1221. Revision of definition of landmine for purposes of landmine export

moratorium.

Sec. 1222. Extension and amendment of counterproliferation authorities.

Sec. 1223. Prohibition on use of funds for activities associated with the United

States-People’s Republic of China Joint Defense Conversion

Commission.

Sec. 1224. Defense export loan guarantees.

Sec. 1225. Accounting for burdensharing contributions.

Sec. 1226. Authority to accept contributions for expenses of relocation within

host nation of United States Armed Forces overseas.

Sec. 1227. Sense of Congress on ABM treaty violations.

Sec. 1228. Reduction of United States military forces in Europe.

Sec. 1229. Sense of Congress concerning unilateral implementation of Start II

Treaty.

Sec. 1230. Sense of the Congress regarding the Chemical Weapons Convention.

DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

TITLE XXI—ARMY

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

Sec. 2102. Family housing.

Sec. 2103. Improvements to military family housing units.

Sec. 2104. Authorization of appropriations, Army.

TITLE XXII—NAVY

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

Sec. 2202. Family housing.

Sec. 2203. Improvements to military family housing units.

Sec. 2204. Authorization of appropriations, Navy.
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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.
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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.
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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.
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Sec. 3303. Restrictions on disposal of manganese ferro.

Sec. 3304. Titanium initiative to support battle tank upgrade program.

TITLE XXXIV—NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

Sec. 3402. Price requirement on sale of certain petroleum during fiscal year

1996.

Sec. 3403. Sale of Naval Petroleum Reserve Numbered 1 (Elk Hills).

Sec. 3404. Study regarding future of naval petroleum reserves (other than

Naval Petroleum Reserve Numbered 1).

TITLE XXXV—PANAMA CANAL COMMISSION

Subtitle A—Authorization of Appropriations

Sec. 3501. Short title.

Sec. 3502. Authorization of expenditures.

Sec. 3503. Expenditures in accordance with other laws.

Subtitle B—Reconstitution of Commission as Government

Corporation

Sec. 3521. Short title.

Sec. 3522. Reconstitution of commission as government corporation.

Sec. 3523. Supervisory board.

Sec. 3524. International advisors.

Sec. 3525. General and specific powers of commission.

Sec. 3526. Congressional review of budget.

Sec. 3527. Audits.

Sec. 3528. Prescription of measurement rules and rates of tolls.

Sec. 3529. Procedures for changes in rules of measurement and rates of tolls.

Sec. 3530. Miscellaneous technical amendments.

Sec. 3531. Conforming amendment to title 31, United States Code.

1 SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

2 For purposes of this Act, the term ‘‘congressional de3 fense committees’’ means—

4 (1) the Committee on Armed Services and the

5 Committee on Appropriations of the Senate; and

6 (2) the Committee on National Security and the

7 Committee on Appropriations of the House of Rep8 resentatives.
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1 DIVISION A—DEPARTMENT OF

2 DEFENSE AUTHORIZATIONS

3 TITLE I—PROCUREMENT

4 Subtitle A—Authorization of

5 Appropriations

6 SEC. 101. ARMY.

7 Funds are hereby authorized to be appropriated for

8 fiscal year 1996 for procurement for the Army as follows:

9 (1) For aircraft, $1,423,067,000.

10 (2) For missiles, $862,830,000.

11 (3) For weapons and tracked combat vehicles,

12 $1,359,664,000.

13 (4) For ammunition, $1,062,715,000.

14 (5) For other procurement, $2,545,587,000.

15 SEC. 102. NAVY AND MARINE CORPS.

16 (a) NAVY.—Funds are hereby authorized to be appro17 priated for fiscal year 1996 for procurement for the Navy

18 as follows:

19 (1) For aircraft, $4,106,488,000.

20 (2) For weapons, including missiles and tor21 pedoes, $1,626,411,000.

22 (3) For shipbuilding and conversion,

23 $6,227,958,000.

24 (4) For other procurement, $2,461,472,000.
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1 (b) MARINE CORPS.—Funds are hereby authorized to

2 be appropriated for fiscal year 1996 for procurement for

3 the Marine Corps in the amount of $399,247,000.

4 (c) NAVY AND MARINE CORPS AMMUNITION.—Funds

5 are hereby authorized to be appropriated for procurement

6 of ammunition for Navy and the Marine Corps in the

7 amount of $461,779,000.

8 SEC. 103. AIR FORCE.

9 Funds are hereby authorized to be appropriated for

10 fiscal year 1996 for procurement for the Air Force as fol11 lows:

12 (1) For aircraft, $7,031,952,000.

13 (2) For missiles, $3,430,083,000.

14 (3) For ammunition, $321,328,000.

15 (4) For other procurement, $6,784,801,000.

16 SEC. 104. DEFENSE-WIDE ACTIVITIES.

17 Funds are hereby authorized to be appropriated for

18 fiscal year 1996 for Defense-wide procurement in the

19 amount of $2,205,917,000.

20 SEC. 105. RESERVE COMPONENTS.

21 Funds are hereby authorized to be appropriated for

22 fiscal year 1996 for procurement of aircraft, vehicles, com23 munications equipment, and other equipment for the re24 serve components of the Armed Forces as follows:
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1 (1) For the Army National Guard,

2 $150,000,000.

3 (2) For the Air National Guard, $227,800,000.

4 (3) For the Army Reserve, $84,300,000.

5 (4) For the Naval Reserve, $86,000,000.

6 (5) For the Air Force Reserve, $171,200,000.

7 (6) For the Marine Corps Reserve,

8 $50,700,000.

9 SEC. 106. CHEMICAL DEMILITARIZATION PROGRAM.

10 (a) AUTHORIZATION.—There is hereby authorized to

11 be appropriated for fiscal year 1996 the amount of

12 $746,698,000 for—

13 (1) the destruction of lethal chemical agents

14 and munitions in accordance with section 1412 of

15 the Department of Defense Authorization Act, 1986

16 (50 U.S.C. 1521); and

17 (2) the destruction of chemical warfare materiel

18 of the United States that is not covered by section

19 1412 of such Act.

20 (b) ALLOCATION.—Of the funds specified in sub21 section (a)—

22 (1) $393,850,000 is for operations and mainte23 nance;

24 (2) $299,448,000 is for procurement; and
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1 (3) $53,400,000 is for research and develop2 ment.

3 Subtitle B—Army Programs

4 SEC. 111. PROCUREMENT OF HELICOPTERS.

5 The prohibition in section 133(a)(2) of the National

6 Defense Authorization Act for Fiscal Years 1990 and

7 1991 (Public Law 101–189; 103 Stat. 1383) does not

8 apply to the obligation of funds in amounts not to exceed

9 $125,000,000 for the procurement of not more than 20

10 OH–58D AHIP Scout aircraft from funds appropriated

11 for fiscal year 1996 pursuant to section 101.

12 SEC. 112. REPEAL OF REQUIREMENTS FOR ARMORED VEHI13 CLE UPGRADES.

14 Subsection (j) of section 21 of the Arms Export Con15 trol Act (22 U.S.C. 2761) is repealed.

16 Subtitle C—Navy Programs

17 SEC. 131. REPEAL OF PROHIBITION ON BACKFIT OF TRI18 DENT SUBMARINES.

19 Section 124 of the National Defense Authorization

20 Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat.

21 2683) is repealed.
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1 SEC. 132. REPEAL OF LIMITATION ON TOTAL COST FOR

2 SSN–21 AND SSN–22 SEAWOLF SUBMARINES.

3 Section 122 of the National Defense Authorization

4 Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat.

5 2682) is repealed.

6 SEC. 133. COMPETITION REQUIRED FOR SELECTION OF

7 SHIPYARDS FOR CONSTRUCTION OF VESSELS

8 FOR NEXT GENERATION ATTACK SUBMARINE

9 PROGRAM.

10 (a) COMPETITION REQUIRED.—The Secretary of the

11 Navy shall select on a competitive basis the shipyard for

12 construction of each vessel for the next generation attack

13 submarine program.

14 (b) PROGRAM IDENTIFIED.—The next generation at15 tack submarine program shall begin with the first sub16 marine for which the Secretary of the Navy enters into

17 a contract for construction after the submarine that is

18 programmed to be constructed using funds appropriated

19 for fiscal year 1998.

20 SEC. 134. SONOBUOY PROGRAMS.

21 Of the amount provided in section 102(a)(4)—

22 (1) none of such amount shall be available for

23 the AN/SSQ–53 (DIFAR) program; and

24 (2) $8,902,000 shall be available for the AN/

25 SSQ–110 (EER) program.
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1 Subtitle D—Air Force Programs

2 SEC. 141. REPEAL OF LIMITATIONS.

3 The following provisions of law are repealed:

4 (1) Section 112 of the National Defense Au5 thorization Act for Fiscal Years 1990 and 1991

6 (Public Law 101–189; 103 Stat. 1373).

7 (2) Section 151(c) of the National Defense Au8 thorization Act for Fiscal Year 1993 (Public Law

9 102–484; 106 Stat. 2339).

10 (3) Sections 131(c) and 131(d) of the National

11 Defense Authorization Act for Fiscal Year 1994

12 (Public Law 103–160; 107 Stat. 1569).

13 (4) Section 133(e) of the National Defense Au14 thorization Act for Fiscal Year 1995 (Public Law

15 103–337; 108 Stat. 2688).

16 Subtitle E—Chemical

17 Demilitarization Program

18 SEC. 151. REPEAL OF REQUIREMENT TO PROCEED EXPEDI19 TIOUSLY WITH DEVELOPMENT OF CHEMICAL

20 DEMILITARIZATION CRYOFRACTURE FACIL21 ITY AT TOOELE ARMY DEPOT, UTAH.

22 Subsection (a) of section 173 of the National Defense

23 Authorization Act for Fiscal Years 1990 and 1991 (Public

24 Law 101–189; 103 Stat. 1393) is repealed.
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1 SEC. 152. SENSE OF CONGRESS REGARDING COST GROWTH

2 IN PROGRAM FOR DESTRUCTION OF THE EX3 ISTING STOCKPILE OF LETHAL CHEMICAL

4 AGENTS AND MUNITIONS.

5 The Congress is concerned that growth in the esti6 mated cost of the program to demilitarize the United

7 States’ stockpile of lethal chemical agents and munitions

8 raises serious questions regarding that program. Accord9 ingly, it is the sense of Congress that the Secretary of

10 Defense should consider measures to reduce the overall

11 cost of the chemical stockpile demilitarization program,

12 while minimizing total risk and ensuring the maximum

13 protection for the environment, the general public, and the

14 personnel involved in the destruction of lethal chemical

15 agents and munitions.

16 SEC. 153. ASSISTANCE FOR CHEMICAL WEAPONS STOCK17 PILE COMMUNITIES AFFECTED BY BASE CLO18 SURE.

19 The Secretary of Defense shall review and evaluate

20 issues associated with closure and reutilization of Depart21 ment of Defense facilities co-located with continuing chem22 ical stockpile and chemical demilitarization operations.

23 The review shall include analysis of the economic impacts

24 on these communities and the unique reuse problems fac25 ing local communities associated with ongoing chemical

26 weapons programs. The review should also include rec-
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1 ommendations from the Secretary on methods for expedi2 tious and cost-effective transfer of these facilities to local

3 communities for base reuse or privatization. The Secretary

4 shall submit to Congress a report on the review and eval5 uation not later than 90 days after the date of the enact6 ment of this Act.

7 TITLE II—RESEARCH, DEVELOP8 MENT, TEST, AND EVALUA9 TION

10 Subtitle A—Authorization of

11 Appropriations

12 SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

13 Funds are hereby authorized to be appropriated for

14 fiscal year 1996 for the use of the Department of Defense

15 for research, development, test, and evaluation as follows:

16 (1) For the Army, $4,774,947,000.

17 (2) For the Navy, $8,516,509,000.

18 (3) For the Air Force, $13,184,102,000.

19 (4) For Defense-wide activities,

20 $9,548,986,000, of which $239,341,000 is author21 ized for the activities of the Director, Test and Eval22 uation.
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1 SEC. 202. AMOUNT FOR BASIC RESEARCH AND EXPLOR2 ATORY DEVELOPMENT.

3 (a) FISCAL YEAR 1996.—Of the amounts authorized

4 to be appropriated by section 201, $4,181,076,000 shall

5 be available for basic research and exploratory develop6 ment projects.

7 (b) BASIC RESEARCH AND EXPLORATORY DEVELOP8 MENT DEFINED.—For purposes of this section, the term

9 ‘‘basic research and exploratory development’’ means work

10 funded in program elements for defense research and de11 velopment under Department of Defense category 6.1 or

12 6.2.

13 SEC. 203. MODIFICATIONS TO STRATEGIC ENVIRONMENTAL

14 RESEARCH AND DEVELOPMENT PROGRAM.

15 (a) PURPOSES OF PROGRAM.—Section 2901(b) of

16 title 10, United States Code, is amended—

17 (1) in paragraph (1)—

18 (A) by striking out ‘‘and the Department

19 of Energy’’; and

20 (B) by striking out ‘‘their’’ and inserting

21 in lieu thereof ‘‘its’’;

22 (2) by striking out paragraph (3); and

23 (3) by redesignating paragraph (4) as para24 graph (3).

25 (b) COUNCIL.—Section 2902 of such title is amend26 ed—
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1 (1) in subsection (b)—

2 (A) by striking out ‘‘thirteen’’ and insert3 ing in lieu thereof ‘‘12’’;

4 (B) by striking out paragraph (3);

5 (C) by redesignating paragraphs (4), (5),

6 (6), (7), (8), (9), and (10) as paragraphs (3),

7 (4), (5), (6), (7), (8), and (9), respectively; and

8 (D) in paragraph (8), as redesignated, by

9 striking out ‘‘, who shall be nonvoting mem10 bers’’;

11 (2) in subsection (d)—

12 (A) by striking out paragraph (3);

13 (B) by redesignating paragraph (4) as

14 paragraph (3) and in that paragraph by strik15 ing out ‘‘Federal Coordinating Council on

16 Science, Engineering, and Technology’’ and in17 serting in lieu thereof ‘‘National Science and

18 Technology Council’’; and

19 (C) by redesignating paragraphs (5) and

20 (6) as paragraphs (4) and (5), respectively;

21 (3) in subsection (e)—

22 (A) by striking out paragraphs (1), (2),

23 and (3);
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1 (B) by redesignating paragraphs (4), (5),

2 (6), (7), (8), (9), and (10) as paragraphs (1),

3 (2), (3), (4), (5), (6), and (7) respectively;

4 (C) in paragraph (2), as redesignated, by

5 striking out ‘‘such national and international

6 environmental problems as climate change and

7 ozone depletion’’ and inserting in lieu thereof

8 ‘‘national and international environmental prob9 lems’’; and

10 (D) in paragraph (4), as redesignated, by

11 striking out ‘‘clauses (2) through (6)’’ and in12 serting in lieu thereof ‘‘paragraphs (1) through

13 (3)’’;

14 (4) by striking out subsections (f) and (h); and

15 (5) by redesignating subsection (g) as sub16 section (f).

17 (c) COMPETITIVE PROCEDURES.—Section 2903(c) of

18 such title is amended—

19 (1) by striking out ‘‘or’’ after ‘‘contracts’’ and

20 inserting in lieu thereof ‘‘using competitive proce21 dures. The Executive Director may enter into’’; and

22 (2) by striking out ‘‘law, except that’’ and in23 serting in lieu thereof ‘‘law. In either case,’’.

24 (d) SCIENTIFIC ADVISORY BOARD.—Section 2904 of

25 such title is amended—
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1 (1) in subsection (a)—

2 (A) by striking out ‘‘and the Secretary of

3 Energy’’; and

4 (B) by inserting after ‘‘in consultation

5 with’’ the following: ‘‘the Secretary of Energy

6 and’’;

7 (2) in subsection (b)—

8 (A) by striking out paragraph (3); and

9 (B) by redesignating paragraph (4) as

10 paragraph (3) and in that paragraph by strik11 ing out ‘‘three’’ and inserting in lieu thereof

12 ‘‘not less than two years and not more than

13 six’’;

14 (3) by striking out subsections (g) and (h); and

15 (4) by redesignating subsection (i) as subsection

16 (g).

17 Subtitle B—Program Require18 ments, Restrictions, and Limita19 tions

20 SEC. 211. SPACE LAUNCH MODERNIZATION.

21 (a) ALLOCATION OF FUNDS.—Of the amount appro22 priated pursuant to the authorization in section 201(3)—

23 (1) $100,000,000 shall be available for a com24 petitive reusable rocket technology program (PE

25 63401F); and
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1 (2) $7,500,000 shall be available for evaluation

2 of prototype hardware of low-cost expendable launch

3 vehicles (PE 63401F).

4 (b) LIMITATION.—Funds made available pursuant to

5 subsection (a)(1) may be obligated only to the extent that

6 the fiscal year 1996 current operating plan of the National

7 Aeronautics and Space Administration allocates at least

8 an equal amount for its Reusable Space Launch program.

9 SEC. 212. MANEUVER VARIANT UNMANNED AERIAL VEHI10 CLE.

11 None of the amounts appropriated or otherwise made

12 available pursuant to the authorizations in section 201

13 may be obligated for the Maneuver Variant Unmanned

14 Aerial Vehicle.

15 SEC. 213. TACTICAL MANNED RECONNAISSANCE.

16 None of the amounts appropriated or otherwise made

17 available pursuant to an authorization in this Act may be

18 used by the Secretary of the Air Force to conduct re19 search, development, test, or evaluation for a replacement

20 aircraft, pod, or sensor payload for the tactical manned

21 reconnaissance mission.

22 SEC. 214. ADVANCED LITHOGRAPHY PROGRAM.

23 Section 216 of the National Defense Authorization

24 Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat.

25 2693) is amended—
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1 (1) in subsection (a), by striking out ‘‘to help

2 achieve’’ and all that follows through the end of the

3 subsection and inserting in lieu thereof ‘‘to ensure

4 that lithographic processes being developed by Amer5 ican-owned manufacturers operating in the United

6 States will lead to superior performance electronics

7 systems for the Department of Defense. For pur8 poses of the preceding sentence, the term ‘American9 owned manufacturers’ means a manufacturing com10 pany or other business entity the majority ownership

11 or control of which is by United States citizens.’’;

12 and

13 (2) in subsection (b), by adding at the end the

14 following new paragraph:

15 ‘‘(3) The Director of the Defense Advanced Research

16 Projects Agency may set priorities and funding levels for

17 various technologies being developed for the ALP and

18 shall consider funding recommendations by the SIA as ad19 visory.’’.

20 SEC. 215. ENHANCED FIBER OPTIC GUIDED MISSILE SYS21 TEM.

22 (a) CERTIFICATION.—Not later than December 1,

23 1995, the Secretary of the Army shall certify to the con24 gressional defense committees whether there is a require25 ment for the enhanced fiber optic guided missile (EFOG-
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1 M) system and whether there is a cost and effectiveness

2 analysis supporting such requirement.

3 (b) LIMITATIONS.—(1) The Secretary of the Army

4 may not obligate more than $280,000,000 (based on fiscal

5 year 1995 constant dollars) to develop and deliver for test

6 and evaluation by the Army the following items:

7 (A) 44 EFOG-M test missiles.

8 (B) 256 fully operational EFOG-M missiles.

9 (C) 12 fully operational fire units.

10 (2) The Secretary of the Army may not spend funds

11 for the EFOG-M system after September 30, 1998, if the

12 items described in paragraph (1) have not been delivered

13 to the Army by that date at the cost estimated for such

14 system as of the date of the enactment of this Act.

15 (c) GOVERNMENT-FURNISHED EQUIPMENT.—The

16 Secretary of the Army shall assure that all Government17 furnished equipment that the Army agrees to provide

18 under the contract for the EFOG-M system is provided

19 to the prime contractor in accordance with the terms of

20 the contract.

21 SEC. 216. JOINT ADVANCED STRIKE TECHNOLOGY (JAST)

22 PROGRAM.

23 (a) ALLOCATION OF FUNDS.—Of the amount appro24 priated pursuant to the authorizations in section 201,
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1 $280,156,000 shall be available for the Joint Advanced

2 Strike Technology (JAST) program. Of that amount—

3 (1) $123,795,000 shall be available for PE

4 63800N;

5 (2) $125,686,000 shall be available for PE

6 63800F; and

7 (3) $30,675,000 shall be available for PE

8 63800E.

9 (b) LIMITATION.—Not more than 75 percent of the

10 amount appropriated for such program pursuant to the

11 authorizations in section 201 may be obligated until a pe12 riod of 30 days has expired after the report specified in

13 subsection (c) is submitted to the congressional defense

14 committees.

15 (c) REPORT.—The Secretary of Defense shall submit

16 to the congressional defense committees a report, in un17 classified and classified form, not later than March 1,

18 1996, that sets forth in detail the following information

19 for the period 1997 through 2005:

20 (1) What the total joint requirement, under two

21 major regional contingency (MRC) assumptions, is

22 for the following:

23 (A) Numbers of tactical combat aircraft

24 and the characteristics required of those air-
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1 craft in terms of capabilities, range, and observ2 ability-stealthiness.

3 (B) Surface- and air-launched standoff

4 precision guided munitions.

5 (C) Cruise missiles.

6 (D) Ground-based systems, such as Ex7 tended Range-Multiple Launch Rocket System

8 and the Army Tactical Missile System

9 (ATACMS), for joint warfighting capability.

10 (2) What the major regional contingency warn11 ing time assumptions are, and what the effect on fu12 ture tactical fighter/attack aircraft requirements are

13 using other warning time assumptions.

14 (3) What requirements exist for the Joint Ad15 vanced Strike Technology program that cannot be

16 met by existing aircraft or by those in development.

17 SEC. 217. DEVELOPMENT OF LASER PROGRAM.

18 (a) LASER PROGRAM.—The amount authorized for

19 appropriation by section 201 is hereby increased by

20 $9,000,000, to be used for the development by the Naval

21 High Energy Laser Office of a continuous wave,

22 superconducting radio frequency free electron laser pro23 gram.

24 (b) OFFSET.—The amount authorized by section 201

25 is hereby reduced by $9,000,000, of which—
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1 (1) $7,000,000 shall be derived from amounts

2 authorized for experimental evaluation of major in3 novative technologies (PE 63226E); and

4 (2) $2,000,000 shall be derived from amounts

5 authorized for the space test program (PE 63402F).

6 Subtitle C—Ballistic Missile

7 Defense Act of 1995

8 SEC. 231. SHORT TITLE.

9 This subtitle may be cited as the ‘‘Ballistic Missile

10 Defense Act of 1995’’.

11 SEC. 232. BALLISTIC MISSILE DEFENSE POLICY OF THE

12 UNITED STATES.

13 It is the policy of the United States—

14 (1) to deploy at the earliest practical date high15 ly effective theater missile defenses (TMDs) to pro16 tect forward-deployed and expeditionary elements of

17 the Armed Forces of the United States and to com18 plement and support the missile defense capabilities

19 of friendly forces and of allies of the United States;

20 and

21 (2) to deploy at the earliest practical date a na22 tional missile defense (NMD) system that is capable

23 of providing a highly effective defense of the United

24 States against limited ballistic missile attacks.
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1 SEC. 233. IMPLEMENTATION OF POLICY.

2 (a) TMD DEPLOYMENT.—To implement the policy

3 established in section 232(1), the Secretary of Defense

4 shall develop and deploy at the earliest practical date ad5 vanced theater missile defense (TMD) systems.

6 (b) NMD SYSTEM ARCHITECTURE.—To implement

7 the policy established in section 232(2), the Secretary of

8 Defense shall develop for deployment at the earliest prac9 tical date an affordable, operationally-effective National

10 Missile Defense (NMD) system designed to protect the

11 United States against limited ballistic missile attacks. The

12 system to be developed for deployment shall include the

13 following:

14 (1) Up to 100 ground-based interceptors at a

15 single site or a greater number of interceptors at a

16 number of sites, as determined necessary by the Sec17 retary.

18 (2) Fixed, ground-based radars.

19 (3) Space-based sensors, including, within the

20 type of space-based sensors known as ABM-adjunct

21 sensors (such sensors not being prohibited by the

22 ABM Treaty), those sensor systems (such as the

23 Space and Missile Tracking System) that are capa24 ble of cuing ground-based anti-ballistic missile inter25 ceptors and of providing initial targeting vectors.
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1 (4) Battle management, command, control, and

2 communications.

3 (c) REPORT ON PLAN FOR DEPLOYMENT.—Not later

4 than 90 days after the date of the enactment of this Act,

5 the Secretary of Defense shall submit to the congressional

6 defense committees a report setting forth the Secretary’s

7 plan for—

8 (1) the deployment of advanced theater missile

9 defense (TMD) systems pursuant to subsection (a);

10 and

11 (2) the deployment of a national missile defense

12 system which meets the requirements specified in

13 subsection (b).

14 SEC. 234. FOLLOW-ON TECHNOLOGIES RESEARCH AND DE15 VELOPMENT.

16 (a) FOLLOW-ON NATIONAL AND THEATER MISSILE

17 DEFENSE TECHNOLOGY.—The Secretary shall pursue re18 search and development of technologies and systems relat19 ed to national missile defense and theater missile defense

20 in order to provide future options for—

21 (1) protecting the United States against limited

22 ballistic missile attacks; and

23 (2) defending forward-deployed and expedition24 ary elements of the Armed Forces of the United

25 States and complementing and supporting the mis-
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1 sile defense capabilities of friendly forces and allies

2 of the United States.

3 (b) EXCLUSION OF CERTAIN SYSTEMS FROM INITIAL

4 DEPLOYMENT.—The initial National Missile Defense sys5 tem architecture developed for deployment pursuant to

6 section 233(b) may not include—

7 (1) ground-based or space-based directed en8 ergy weapons; or

9 (2) space-based interceptors.

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

11 (a) POLICY CONCERNING SYSTEMS SUBJECT TO

12 ABM TREATY.—Congress finds that, unless and until a

13 missile defense system, system upgrade, or system compo14 nent is flight tested in an ABM-qualifying flight test (as

15 defined in subsection (c)), such system, system upgrade,

16 or system component—

17 (1) has not, for purposes of the ABM Treaty,

18 been tested in an ABM mode nor been given capa19 bilities to counter strategic ballistic missiles; and

20 (2) therefore is not subject to any application,

21 limitation, or obligation under the ABM Treaty.

22 (b) PROHIBITIONS.—(1) Funds appropriated to the

23 Department of Defense may not be obligated or expended

24 for the purpose of—
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1 (A) prescribing, enforcing, or implementing any

2 Executive order, regulation, or policy that would

3 apply the ABM Treaty (or any limitation or obliga4 tion under such Treaty) to research, development,

5 testing, or deployment of a theater missile defense

6 system, a theater missile defense system upgrade, or

7 a theater missile defense system component; or

8 (B) taking any other action to provide for the

9 ABM Treaty (or any limitation or obligation under

10 such Treaty) to be applied to research, development,

11 testing, or deployment of a theater missile defense

12 system, a theater missile defense system upgrade, or

13 a theater missile defense system component.

14 (2) This subsection applies with respect to each mis15 sile defense system, missile defense system upgrade, or

16 missile defense system component that is capable of coun17 tering modern theater ballistic missiles.

18 (3) This subsection shall cease to apply with respect

19 to a missile defense system, missile defense system up20 grade, or missile defense system component when that sys21 tem, system upgrade, or system component has been flight

22 tested in an ABM-qualifying flight test.

23 (c) ABM-QUALIFYING FLIGHT TEST DEFINED.—

24 For purposes of this section, an ABM-qualifying flight test

25 is a flight test against a ballistic missile which, in that
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1 flight test, exceeds (1) a range of 3,500 kilometers, or (2)

2 a velocity of 5 kilometers per second.

3 SEC. 236. BALLISTIC MISSILE DEFENSE PROGRAM AC4 COUNTABILITY.

5 (a) ANNUAL BMD PROGRAMS REPORT.—The Sec6 retary of Defense shall submit to the congressional defense

7 committees an annual report describing the technical mile8 stones, schedule, and cost of each ballistic missile defense

9 program specified in subsection (c).

10 (b) MATTERS TO BE INCLUDED.—Each report under

11 subsection (a) shall list all technical milestones, program

12 schedule milestones, and costs of each phase of develop13 ment and acquisition, together with total estimated pro14 gram costs, covering the entire life of each program speci15 fied in subsection (c).

16 (c) COVERED PROGRAMS.—The reports under this

17 section shall cover the following programs:

18 (1) Theater High Altitude Area Defense

19 (THAAD).

20 (2) Patriot Advanced Capability-3.

21 (3) Navy Lower Tier.

22 (4) Navy Upper Tier.

23 (5) Corps Surface-to-Air Missile.

24 (6) Hawk.

25 (7) Boost Phase Intercept.
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1 (8) National Missile Defense.

2 (9) Arrow.

3 (10) Medium Extended Air Defense.

4 (11) Any theater missile defense program or

5 national missile defense program which the Depart6 ment of Defense initiates after the date of the enact7 ment of this Act.

8 (d) VARIANCE REPORTING REQUIREMENTS.—(1) In

9 the annual report under this section, the Secretary shall

10 describe, with respect to each program covered in the re11 port, any difference in the technical milestones, program

12 schedule milestones, and costs for that program—

13 (A) compared with the information relating to

14 that program in the report submitted in the previous

15 year; and

16 (B) compared with the information relating to

17 that program in the first report submitted under

18 this section in which that program is covered.

19 (2) Paragraph (1)(A) shall not apply to the first re20 port submitted under this section.

21 (e) DATE OF SUBMISSION.—The report required by

22 this section for any year shall be submitted not later than

23 30 days after the date on which the President’s budget

24 for the next fiscal year is submitted, except that the first
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1 report shall be submitted not later than 90 days after the

2 date of the enactment of this Act.

3 SEC. 237. ABM TREATY DEFINED.

4 For purposes of this subtitle and subtitle D, the term

5 ‘‘ABM Treaty’’ means the Treaty Between the United

6 States and the Union of Soviet Socialist Republics on the

7 Limitation of Anti-Ballistic Missile Systems, and signed

8 at Moscow on May 26, 1972, and includes Protocols to

9 that Treaty, signed at Moscow on July 3, 1974.

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

11 The Missile Defense Act of 1991 is repealed.

12 Subtitle D—Other Ballistic Missile

13 Defense Provisions

14 SEC. 241. BALLISTIC MISSILE DEFENSE FUNDING FOR FIS15 CAL YEAR 1996.

16 Of the amounts authorized to be appropriated pursu17 ant to section 201 for fiscal year 1996 or otherwise made

18 available to the Department of Defense for fiscal year

19 1996, not more than $3,070,199,000 may be obligated for

20 Ballistic Missile Defense programs.

21 SEC. 242. POLICY CONCERNING BALLISTIC MISSILE

22 DEFENSE.

23 (a) BALLISTIC MISSILE DEFENSE AND OTHER

24 COUNTERPROLIFERATION EFFORTS.—The Congress

25 views the deployment of ballistic missile defenses as a nec-
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1 essary, but not sufficient, element of a broader strategy

2 to discourage both the proliferation of weapons of mass

3 destruction and the proliferation of means of their delivery

4 and to defend against the consequences of such prolifera5 tion. The Congress, therefore, endorses and supports

6 measures designed to slow or halt the proliferation of ad7 vanced technologies that pose a threat to the safety and

8 security of the United States and to international stability.

9 (b) BALLISTIC MISSILE DEFENSE AND STRATEGIC

10 STABILITY.—(1) The Congress views the deployment of

11 ballistic missile defenses as a strategically stabilizing

12 measure.

13 (2) The deployment of Theater Missile Defense sys14 tems at the earliest practical date pursuant to section

15 232(a)(1) will deny potential adversaries the option of es16 calating a conflict by threatening or attacking United

17 States forces, coalition partners of the United States, or

18 allies of the United States with ballistic missiles armed

19 with weapons of mass destruction to offset the operational

20 and technical advantages of the United States and its coa21 lition partners and allies.

22 (3) The deployment of a National Missile Defense

23 system at the earliest practical date pursuant to section

24 232(a)(2) against the threat of limited ballistic missile

25 attacks—
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1 (A) will strengthen deterrence at the levels of

2 forces agreed to by the United States and Russia

3 under the Strategic Arms Reduction Talks Treaties

4 (START–I and START–II); and

5 (B) would further strengthen deterrence if re6 ductions below the levels permitted under START–

7 II should be agreed to in the future.

8 (c) PRESIDENTIAL DISCUSSIONS WITH OTHER NA9 TIONS.—(1) The Congress—

10 (A) notes that on the basis of section 235 it is

11 no longer necessary for the United States to con12 tinue discussions with Russia to clarify the distinc13 tion between ABM and TMD systems and, therefore,

14 urges the President to discontinue any such discus15 sions;

16 (B) notes that the ABM Treaty prohibits de17 ployment of ground-based interceptors in a number

18 that would be sufficient to assure that the entire

19 continental United States, Alaska, and Hawaii are

20 defended against limited ballistic missile attacks;

21 and

22 (C) notes that past discussions with Russia,

23 based on Russian President Yeltsin’s proposal for a

24 Global Protection System, held promise of an agree25 ment to amend the ABM Treaty to allow defense
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1 against a limited ballistic missile attack that would

2 have included (among other measures) permitted de3 ployment of as many as four ground-based intercep4 tor sites in addition to the one site currently per5 mitted under the ABM Treaty and unrestricted ex6 ploitation of ground-based and space-based sensors.

7 (2) In light of the findings in paragraph (1), Con8 gress urges the President to pursue high-level discussions

9 with Russia to amend the ABM Treaty to permit—

10 (A) deployment of the number of ground-based

11 ABM sites necessary to provide effective defense of

12 the entire territory of the United States against lim13 ited ballistic missile attack; and

14 (B) the unrestricted exploitation of sensors

15 based within the atmosphere and in space.

16 (3) It is in the interest of the United States to de17 velop its own missile defense capabilities in a manner that

18 will permit the United States to complement and support

19 the missile defense capabilities developed and deployed by

20 its allies and possible coalition partners. Therefore, the

21 Congress urges the President—

22 (A) to pursue high-level discussions with allies

23 and selected other states on the means and methods

24 by which the parties on a bilateral basis can cooper-
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1 ate in the development, deployment, and operation of

2 ballistic missile defenses;

3 (B) to take the initiative within the North At4 lantic Treaty Organization to develop consensus in

5 the Alliance for a timely deployment of effective bal6 listic missile defenses by the Alliance; and

7 (C) in the interim, to seek agreement with allies

8 and selected other states on steps the parties should

9 take, consistent with their national interests, to re10 duce the risks posed by the threat of limited ballistic

11 missile attacks, such steps to include—

12 (i) the sharing of early warning informa13 tion derived from sensors deployed by the Unit14 ed States and other states;

15 (ii) the exchange on a reciprocal basis of

16 technical data and technology to support both

17 joint development programs and the sale and

18 purchase of missile defense systems and compo19 nents; and

20 (iii) operational level planning to exploit

21 current missile defense capabilities and to help

22 define future requirements.
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1 SEC. 243. TESTING OF THEATER MISSILE DEFENSE INTER2 CEPTORS.

3 Subsection (a) of section 237 of the National Defense

4 Authorization Act for Fiscal Year 1994 (Public Law 103–

5 160; 107 Stat. 1600) is amended to read as follows:

6 ‘‘(a) TESTING OF THEATER MISSILE DEFENSE

7 INTERCEPTORS.—(1) The Secretary of Defense may not

8 approve a theater missile defense interceptor program pro9 ceeding beyond the low-rate initial production acquisition

10 stage until the Secretary certifies to the congressional de11 fense committees that such program has successfully com12 pleted initial operational test and evaluation.

13 ‘‘(2) In order to be certified under paragraph (1) as

14 having been successfully completed, the initial operational

15 test and evaluation conducted with respect to an intercep16 tors program must have included flight tests—

17 ‘‘(A) that were conducted with multiple inter18 ceptors and multiple targets in the presence of real19 istic countermeasures; and

20 ‘‘(B) the results of which demonstrate the

21 achievement by the interceptors of the baseline per22 formance thresholds.

23 ‘‘(3) For purposes of this subsection, the baseline

24 performance thresholds with respect to a program are the

25 weapons systems performance thresholds specified in the

26 baseline description for the system established (pursuant
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1 to section 2435(a)(1) of title 10, United States Code) be2 fore the program entered the engineering and manufactur3 ing development stage.

4 ‘‘(4) The number of flight tests described in para5 graph (2) that are required in order to make the certifi6 cation under paragraph (1) shall be a number determined

7 by the Secretary of Defense to be sufficient for the pur8 poses of this section.

9 ‘‘(5) The Secretary may augment live-fire testing to

10 demonstrate weapons system performance goals for pur11 poses of the certification under paragraph (1) through the

12 use of modeling and simulation that is validated by ground

13 and flight testing.’’.

14 SEC. 244. REPEAL OF MISSILE DEFENSE PROVISIONS.

15 The following provisions of law are repealed:

16 (1) Section 222 of the Department of Defense

17 Authorization Act, 1986 (Public Law 99–145; 99

18 Stat. 613; 10 U.S.C. 2431 note).

19 (2) Section 225 of the Department of Defense

20 Authorization Act, 1986 (Public Law 99–145; 99

21 Stat. 614).

22 (3) Section 226 of the National Defense Au23 thorization Act for Fiscal Years 1988 and 1989

24 (Public Law 100–180; 101 Stat. 1057; 10 U.S.C.

25 2431 note).
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1 (4) Section 8123 of the Department of Defense

2 Appropriations Act, 1989 (Public Law 100–463;

3 102 Stat. 2270–40).

4 (5) Section 8133 of the Department of Defense

5 Appropriations Act, 1992 (Public Law 102–172;

6 105 Stat. 1211).

7 (6) Section 234 of the National Defense Au8 thorization Act for Fiscal Year 1994 (Public Law

9 103–160; 107 Stat. 1595; 10 U.S.C. 2431 note).

10 Subtitle E—Other Matters

11 SEC. 251. ALLOCATION OF FUNDS FOR MEDICAL COUNTER12 MEASURES AGAINST BIOWARFARE THREATS.

13 Section 2370a of title 10, United States Code, is

14 amended—

15 (1) in subsection (a), by striking out ‘‘Depart16 ment of Defense—’’ and all that follows through

17 ‘‘not more than 20 percent’’ and inserting in lieu

18 thereof ‘‘Department of Defense, not more than 50

19 percent’’; and

20 (2) in subsection (b), by striking out paragraph

21 (2) and redesignating paragraphs (3), (4), and (5)

22 as paragraphs (2), (3), and (4), respectively.
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1 SEC. 252. ANALYSIS OF CONSOLIDATION OF BASIC RE2 SEARCH ACCOUNTS OF MILITARY DEPART3 MENTS.

4 (a) ANALYSIS REQUIRED.—The Secretary of Defense

5 shall conduct an analysis of the cost and effectiveness of

6 consolidating the basic research accounts of the military

7 departments. The analysis shall determine potential infra8 structure savings and other benefits of co-locating and

9 consolidating the management of basic research.

10 (b) DEADLINE.—On or before March 1, 1996, the

11 Secretary shall submit to the Committee on Armed Serv12 ices of the Senate and the Committee on National Security

13 of the House of Representatives a report on the analysis

14 conducted under subsection (a).

15 SEC. 253. CHANGE IN REPORTING PERIOD FROM CAL16 ENDAR YEAR TO FISCAL YEAR FOR ANNUAL

17 REPORT ON CERTAIN CONTRACTS TO COL18 LEGES AND UNIVERSITIES.

19 Section 2361(c)(2) of title 10, United States Code,

20 is amended—

21 (1) by striking out ‘‘calendar year’’ and insert22 ing in lieu thereof ‘‘fiscal year’’; and

23 (2) by striking out ‘‘after the year’’ and insert24 ing in lieu thereof ‘‘after the fiscal year’’.
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1 SEC. 254. MODIFICATION TO UNIVERSITY RESEARCH INI2 TIATIVE SUPPORT PROGRAM.

3 Section 802 of the National Defense Authorization

4 Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat.

5 1701) is amended—

6 (1) in subsections (a) and (b), by striking out

7 ‘‘shall’’ both places it appears and inserting in lieu

8 thereof ‘‘may’’; and

9 (2) in subsection (e), by striking out the sen10 tence beginning with ‘‘Such selection process’’.

11 SEC. 255. ADVANCED FIELD ARTILLERY SYSTEM (CRU12 SADER).

13 (a) AUTHORITY TO USE FUNDS FOR ALTERNATIVE

14 PROPELLANT TECHNOLOGIES.—During fiscal year 1996,

15 the Secretary of the Army may use funds appropriated

16 for the liquid propellant portion of the Advanced Field Ar17 tillery System (Crusader) program for fiscal year 1996 for

18 alternative propellant technologies and integration of

19 those technologies into the design of the Crusader system

20 if—

21 (1) the Secretary determines that the technical

22 risk associated with liquid propellant will increase

23 costs and delay the initial operational capability of

24 the Crusader system; and
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1 (2) the Secretary notifies the congressional de2 fense committees of the proposed use of the funds

3 and the reasons for the proposed use of the funds.

4 (b) LIMITATION.—The Secretary of the Army may

5 not spend funds for the liquid propellant portion of the

6 Crusader system after August 1, 1996, unless significant

7 progress has been made toward meeting the objectives set

8 forth in subsection (c) and the statement described in sub9 section (d) has been submitted to the congressional de10 fense committees.

11 (c) OBJECTIVES.—The objectives referred to in sub12 section (b) are the following:

13 (1) Breech and ignition design criteria for rate

14 of fire for the cannon of the Crusader system have

15 been met.

16 (2) The final ignition concept has been designed

17 and successfully bench tested for the next prototype

18 of the cannon of the Crusader system.

19 (3) Designs to prevent chamber piston reversals

20 have been tested in a fixed weapons test stand.

21 (4) The chemistry and physics of propellant

22 burn resulting from the firing of liquid propellant

23 into any target zone are fully understood, and pre24 dictable firings have been demonstrated.
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1 (5) An analysis of the management of heat dis2 sipation has been made for the full range of per3 formance requirements for the cannon, and concept

4 designs supported by that analysis are completed

5 and proposed for engineering.

6 (6) Engineering designs to control pressure os7 cillations in the chamber during firing are proven

8 and planned for integration into the next prototype

9 of the cannon.

10 (7) Fill designs for the cannon chamber that

11 focus on preventing future chamber explosions have

12 been electronically simulated and bench tested.

13 (8) An assessment of the sensitivity of liquid

14 propellant to contamination by various materials to

15 which it may be exposed throughout the handling

16 and operation of the cannon is completed.

17 (d) STATEMENT.—The statement referred to in sub18 section (b) is a statement submitted to the congressional

19 defense committees not later than March 30, 1996, that

20 contains the following:

21 (1) An assertion that all the hazards associated

22 with liquid propellent have been identified and are

23 controllable to acceptable levels.

24 (2) An assessment of the technology for each

25 component of the Crusader system (the cannon, ve-
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1 hicle, and crew module). The technology assessment

2 shall include, for each performance goal of the Cru3 sader system (including total system weight), infor4 mation about the maturity of the technology to

5 achieve that goal, the maturity of the design of the

6 technology, and the manner in which the design has

7 been proven (for example, through simulation, bench

8 testing, or weapon firing).

9 (3) An assessment of the cost of continued de10 velopment of the Crusader system after August 1,

11 1996, the cost of each unit of the Crusader system

12 in the year the Crusader system will be completed,

13 and the cost of each unit of the Future Armored Re14 supply Vehicle (FARV) in the year that vehicle will

15 be completed.

SEC. 256. REVIEW OF C4 16 I BY NATIONAL RESEARCH

17 COUNCIL.

18 (a) REVIEW BY NATIONAL RESEARCH COUNCIL.—

19 Not later than 90 days after the date of the enactment

20 of this Act, the Secretary of Defense shall enter into a

21 contract with the National Research Council of the Na22 tional Academy of Sciences to conduct a comprehensive

23 review of current and planned service and defense-wide

24 programs for command, control, communications, comput-
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ers, and intelligence (C4 1 I) with a special focus on cross2 service and inter-service issues.

3 (b) MATTERS TO BE ASSESSED IN REVIEW.—The

4 review shall address the following:

5 (1) The match between the capabilities provided

by current service and defense-wide C4 6 I programs

7 and the actual needs of users of these programs.

8 (2) The interoperability of service and defensewide C4 9 I systems that are planned to be operational

10 in the future.

11 (3) The need for an overall defense-wide architecture for C4 12 I.

13 (4) Proposed strategies for ensuring that future

C4 14 I acquisitions are compatible and interoperable

15 with an overall architecture.

16 (5) Technological and administrative aspects of

the C4 17 I modernization effort to determine the sound18 ness of the underlying plan and the extent to which

19 it is consistent with concepts for joint military oper20 ations in the future.

21 (c) TWO-YEAR PERIOD FOR CONDUCTING REVIEW.—

22 The National Research Council shall conduct the review

23 over the two-year period beginning upon completion of the

24 performance of the contract described in subsection (a).
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1 (d) REPORTS.—(1) The National Research Council

2 shall submit to the Department of Defense and Congress

3 interim reports and progress updates on a regular basis

4 as the review proceeds. A final report on the review shall

5 set forth the findings, conclusions, and recommendations

of the Council for defense-wide and service C4 6 I programs

7 and shall be submitted to the Committee on Armed Serv8 ices of the Senate, the Committee on National Security

9 of the House of Representatives, and the Secretary of De10 fense.

11 (2) To the maximum degree possible, the final report

12 shall be submitted in unclassified form with classified an13 nexes as necessary.

14 (e) INTERAGENCY COOPERATION WITH STUDY.—All

15 military departments, defense agencies, and other compo16 nents of the Department of Defense shall cooperate fully

17 with the National Research Council in its activities in car18 rying out the review under this section.

19 (f) EXPEDITED PROCESSING OF SECURITY CLEAR20 ANCES FOR STUDY.—For the purpose of facilitating the

21 commencement of the study under this section, the Sec22 retary of Defense shall expedite to the fullest degree pos23 sible the processing of security clearances that are nec24 essary for the National Research Council to conduct the

25 study.
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1 (g) FUNDING.—Of the amount authorized to be ap2 propriated in section 201 for defense-wide activities,

3 $900,000 shall be available for the study under this sec4 tion.

5 SEC. 257. FIVE-YEAR PLAN FOR FEDERALLY FUNDED RE6 SEARCH AND DEVELOPMENT CENTERS

7 (FFRDCS).

8 (a) FIVE-YEAR PLAN.—The Secretary of Defense, in

9 consultation with the Secretaries of the military depart10 ments, shall develop a five-year plan to reduce and consoli11 date the activities performed by federally funded research

12 and development centers (FFRDCs) and establish a

13 framework for the future workload of such centers.

14 (b) OBJECTIVES.—The plan shall set forth the man15 ner in which the Secretary of Defense could achieve by

16 October 1, 2000, the following:

17 (1) Implementation by federally funded re18 search and development centers of only those core

19 activities, as defined by the Secretary, that require

20 the unique capabilities and arrangements afforded

21 by such centers.

22 (2) Consolidation of such core level activities

23 into as few federally funded research and develop24 ment centers as is practical and possible.
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1 (3) Acquisition of systems engineering and sys2 tems integration activities currently performed by

3 federally funded research and development centers

4 through the use of competitive procedures.

5 (4) Transfer of the management of the Soft6 ware Engineering Institute activities to the Defense

7 Information Systems Agency for purposes of sup8 porting command, control, communications, computing, and intelligence (C4 9 I) programs.

10 (5) Transfer of the management of the core ac11 tivities of Lincoln Laboratory to the Office of the

12 Secretary of Defense.

13 (6) Acquisition of services provided to the De14 partment of Defense by university-affiliated research

15 centers (that operate like federally funded research

16 and development centers) through the use of com17 petitive procedures.

18 (c) OTHER MATTERS.—The plan also shall include

19 the following:

20 (1) An assessment of the number of staff need21 ed in each federally funded research and develop22 ment center during each year over the five years cov23 ered by the plan.

24 (2) A specific timetable for phasing in the ob25 jectives set forth in subsection (b).
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1 (d) REPORT.—Not later than February 1, 1996, the

2 Secretary of Defense shall submit to the congressional de3 fense committees a report on the plan.

4 (e) UNDISTRIBUTED REDUCTION.—The total amount

5 authorized to be appropriated for research, development,

6 test, and evaluation in section 201 for federally funded

7 research and development centers and university-affiliated

8 research centers is hereby reduced by $90,097,000.

9 SEC. 258. MANUFACTURING TECHNOLOGY PROGRAM.

10 (a) IN GENERAL.—Section 2525 of title 10, United

11 States Code, is amended as follows:

12 (1) The heading is amended by striking out the

13 second and third words.

14 (2) Subsection (a) is amended by striking out

15 ‘‘Science and’’.

16 (3) Subsection (d) is amended—

17 (A) in paragraph (2)—

18 (i) by striking out ‘‘or’’ at the end of

19 subparagraph (A);

20 (ii) by striking out the period at the

21 end of subparagraph (B) and inserting in

22 lieu thereof ‘‘; or’’; and

23 (iii) by adding at the end the follow24 ing new subparagraph:
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1 ‘‘(C) will be carried out by an institution of

2 higher education.’’; and

3 (B) by adding at the end the following new

4 paragraph:

5 ‘‘(3) At least 25 percent of the funds available for

6 the program each fiscal year shall be used for awarding

7 grants and entering into contracts, cooperative agree8 ments, and other transactions on a cost-share basis under

9 which the ratio of recipient costs to Government costs is

10 two to one.’’.

11 (b) CLERICAL AMENDMENT.—The item relating to

12 section 2525 in the table of sections at the beginning of

13 chapter 148 of title 10, United States Code, is amended

14 to read as follows:

‘‘2525. Manufacturing technology program.’’.

15 SEC. 259. FIVE-YEAR PLAN FOR CONSOLIDATION OF DE16 FENSE LABORATORIES AND TEST AND EVAL17 UATION CENTERS.

18 (a) FIVE-YEAR PLAN.—The Secretary of Defense

19 shall develop a five-year plan to consolidate and restruc20 ture the laboratories and test and evaluation centers of

21 the Department of Defense.

22 (b) OBJECTIVE.—The plan shall set forth the specific

23 actions needed to consolidate the laboratories and test and

24 evaluation centers into as few laboratories and centers as
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1 is practical and possible, in the judgment of the Secretary,

2 by October 1, 2005.

3 (c) MATTERS TO BE CONSIDERED.—In developing

4 the plan, the Secretary shall consider the following:

5 (1) Consolidation of common support functions,

6 including the following:

7 (A) Aircraft (fixed wing and rotary).

8 (B) Weapons.

9 (C) Space systems.

10 (D) Command, control, communications,

11 computers, and intelligence.

12 (2) The extent to which any military construc13 tion is planned at the laboratories and centers.

14 (3) The encroachment on the laboratories and

15 centers by residential and industrial expansion.

16 (4) The cost of operations and maintenance at

17 the laboratories and centers.

18 (5) The cost of environmental remediation at

19 the laboratories and centers.

20 (d) REPORT.—Not later than May 1, 1996, the Sec21 retary of Defense shall submit to the congressional defense

22 committees a report on the plan.

23 (e) LIMITATION.—Of the amounts appropriated or

24 otherwise made available pursuant to an authorization in

25 section 201 for the central test and evaluation investment
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1 development program, not more than 40 percent may be

2 obligated before the report required by subsection (d) is

3 submitted to Congress.

4 SEC. 260. AERONAUTICAL RESEARCH AND TEST CAPABILI5 TIES ASSESSMENT.

6 (a) POLICY.—(1) It is in the Nation’s long-term na7 tional security interests to maintain preeminence in the

8 area of aeronautical research and test capabilities.

9 (2) Continued advances in aeronautical science and

10 engineering are critical to sustaining the strategic and tac11 tical air superiority of the United States and coalition

12 forces, as well as United States economic security and

13 international aerospace leadership.

14 (3) Encouragement of active Department of Defense

15 partnership with other Government agencies, academic in16 stitutions, and private industry to develop, maintain, and

17 enhance aeronautical research and test capabilities is in

18 the national security and economic interest of the Depart19 ment and the United States.

20 (b) REVIEW.—(1) In pursuit of the aeronautical re21 search and test capabilities policy set forth in subsection

22 (a), the Secretary of Defense shall conduct a comprehen23 sive review of the aeronautical research and test facilities

24 and capabilities of the United States in order to assess

25 the current condition of such facilities and capabilities.
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1 (2) The review shall identify options for providing af2 fordable, operable, reliable, and responsive long-term aero3 nautical research and test capabilities for military and ci4 vilian purposes and for the organization and conduct of

5 such capabilities within the Department or through shared

6 operations with other Government agencies, academic in7 stitutions, and private industry. The review also shall set

8 forth in detail the projected costs of such options, includ9 ing costs of acquisition and technical and financial ar10 rangements (including the use of Government facilities for

11 reimbursable private use).

12 (c) REPORT.—Not later than March 1, 1996, the

13 Secretary of Defense shall submit to the congressional de14 fense committees a report setting forth in detail the find15 ings of the review required by subsection (b). The report

16 shall include recommendations on the most efficient and

17 economic means of developing, maintaining, and contin18 ually modernizing aeronautical research and test capabili19 ties to meet current, planned, and prospective military and

20 civilian needs.

21 SEC. 261. LIMITATION ON T–38 AVIONICS UPGRADE PRO22 GRAM.

23 (a) REQUIREMENT.—The Secretary of Defense shall

24 ensure that, in evaluating proposals submitted in response

25 to a solicitation issued for a contract for the T–38 Avi-
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1 onics Upgrade Program, the proposal of an entity may not

2 be considered unless—

3 (1) in the case of an entity that conducts sub4 stantially all of its business in a foreign country, the

5 foreign country provides equal access to similar con6 tract solicitations in that country to United States

7 entities; and

8 (2) in the case of an entity that conducts busi9 ness in the United States but that is owned or con10 trolled by a foreign government or by an entity in11 corporated in a foreign country, the foreign govern12 ment or foreign country of incorporation provides

13 equal access to similar contract solicitations in that

14 country to United States entities.

15 (b) DEFINITION.—In this section, the term ‘‘United

16 States entity’’ means an entity that is owned or controlled

17 by persons a majority of whom are United States citizens.

18 SEC. 262. CROSS REFERENCE TO CONGRESSIONAL DE19 FENSE POLICY CONCERNING NATIONAL

20 TECHNOLOGY AND INDUSTRIAL BASE, REIN21 VESTMENT, AND CONVERSION IN OPERATION

22 OF DEFENSE RESEARCH AND DEVELOPMENT

23 PROGRAMS.

24 (a) SECTION 2358 PROJECTS.—Section

25 2358(a)(2)(B) of title 10, United States Code, is amended
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1 by inserting before the period the following: ‘‘and advance

2 the defense policies and objectives specified in section

3 2501 of this title’’.

4 (b) SECTION 2371 PROJECTS.—Section 2371(a) of

5 such title is amended by inserting before the period in the

6 first sentence the following: ‘‘for the purpose of advancing

7 the defense policies and objectives specified in section

8 2501 of this title’’.

9 SEC. 263. DEMILITARIZATION OF CONVENTIONAL MUNI10 TIONS, ROCKETS, AND EXPLOSIVES.

11 Of the amount appropriated pursuant to the author12 ization in section 201 for the joint Department of De13 fense-Department of Energy munitions technology devel14 opment program (PE 63225D), $15,000,000 shall be

15 available for cooperative development and demonstration

16 of processes that comply with applicable environmental

17 laws for the demilitarization and disposal of unserviceable,

18 obsolete, or nontreaty compliant munitions, rocket motors,

19 and explosives. In carrying out such development and

20 demonstration, the Secretary of Defense and the Secretary

21 of Energy should consider a number of potential tech22 nologies, including super-critical water oxidation, molten

23 metal pyrolisis, plasma arc, catalytic fluidized-bed oxida24 tion, molten salt oxidation, incineration, critical fluid ex-
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1 traction and ingredient recovery, and underground con2 tained burning.

3 SEC. 264. FIBER OPTIC ACOUSTIC SENSOR SYSTEM.

4 (a) FIBER OPTIC ACOUSTIC SENSOR SYSTEM.—Of

5 the amount appropriated pursuant to the authorization in

6 section 201, $28,181,000 shall be available for fiscal year

7 1996 for the advanced submarine combat systems develop8 ment program (PE 63504N). Of that amount, $6,900,000

9 shall be available for research and development of a fiber

10 optic acoustic sensor system, including the development of

11 common optical towed arrays.

12 (b) OFFSET.—The amount authorized in section 201

13 for the advanced submarine systems development program

14 (PE 63561N) is hereby reduced by $6,900,000.

15 SEC. 265. JOINT TARGETING SUPPORT SYSTEM TESTBED.

16 (a) JOINT TARGETING SUPPORT SYSTEM

17 TESTBED.—The amount authorized in section 201(2) for

18 theater mission planning (project A1784) is hereby in19 creased by $10,000,000, to be used to establish a joint

20 targeting support system testbed (in PE 0204229N).

21 (b) OFFSET.—The amount authorized in section

22 201(2) for the Tomahawk (project A0545) is hereby re23 duced by $10,000,000.
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1 TITLE III—OPERATION AND

2 MAINTENANCE

3 Subtitle A—Authorization of

4 Appropriations

5 SEC. 301. OPERATION AND MAINTENANCE FUNDING.

6 Funds are hereby authorized to be appropriated for

7 fiscal year 1996 for the use of the Armed Forces and other

8 activities and agencies of the Department of Defense for

9 expenses, not otherwise provided for, for operation and

10 maintenance in amounts as follows:

11 (1) For the Army, $19,339,936,000.

12 (2) For the Navy, $21,677,510,000.

13 (3) For the Marine Corps, $2,603,622,000.

14 (4) For the Air Force, $18,984,162,000.

15 (5) For Defense-wide activities,

16 $10,680,371,000.

17 (6) For the Army Reserve, $1,139,591,000.

18 (7) For the Naval Reserve, $838,042,000.

19 (8) For the Marine Corps Reserve,

20 $91,783,000.

21 (9) For the Air Force Reserve, $1,507,447,000.

22 (10) For the Army National Guard,

23 $2,394,108,000.

24 (11) For the Air National Guard,

25 $2,734,221,000.
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1 (12) For the Defense Inspector General,

2 $177,226,000.

3 (13) For the United States Court of Appeals

4 for the Armed Forces, $6,521,000.

5 (14) For Environmental Restoration, Defense,

6 $1,422,200,000.

7 (15) For Drug Interdiction and Counter-drug

8 Activities, Defense-wide, $680,432,000.

9 (16) For Medical Programs, Defense,

10 $9,876,525,000.

11 (17) For Summer Olympics, $15,000,000.

12 (18) For Cooperative Threat Reduction pro13 grams, $200,000,000.

14 (19) For Overseas Humanitarian, Disaster, and

15 Civic Aid programs, $50,000,000.

16 SEC. 302. WORKING CAPITAL FUNDS.

17 Funds are hereby authorized to be appropriated for

18 fiscal year 1996 for the use of the Armed Forces and other

19 activities and agencies of the Department of Defense for

20 providing capital for working capital and revolving funds

21 in amounts as follows:

22 (1) For the Defense Business Operations Fund,

23 $878,700,000.

24 (2) For the National Defense Sealift Fund,

25 $1,574,220,000.
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1 SEC. 303. ARMED FORCES RETIREMENT HOME.

2 There is hereby authorized to be appropriated for fis3 cal year 1996 from the Armed Forces Retirement Home

4 Trust Fund the sum of $59,120,000 for the operation of

5 the Armed Forces Retirement Home, including the United

6 States Soldiers’ and Airmen’s Home and the Naval Home.

7 SEC. 304. OFFICE OF ECONOMIC ADJUSTMENT.

8 Of the amount authorized in section 301(5) for De9 fense-wide activities, $60,578,000 is for the Office of Eco10 nomic Adjustment of the Department of Defense.

11 Subtitle B—Defense Business

12 Operations Fund

13 SEC. 311. CODIFICATION OF DEFENSE BUSINESS OPER14 ATIONS FUND.

15 (a) MANAGEMENT OF WORKING-CAPITAL FUNDS.—

16 (1) Chapter 131 of title 10, United States Code, is amend17 ed by inserting after section 2215 the following new sec18 tion:

19 ‘‘§ 2216. Defense Business Operations Fund

20 ‘‘(a) MANAGEMENT OF WORKING-CAPITAL FUNDS

21 AND CERTAIN ACTIVITIES.—The Secretary of Defense

22 may manage the performance of the working-capital funds

23 and industrial, commercial, and support type activities de24 scribed in subsection (b) through the fund known as the

25 Defense Business Operations Fund, which is established

26 on the books of the Treasury. Except for the funds and
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1 activities specified in subsection (b), no other functions,

2 activities, funds, or accounts of the Department of De3 fense may be managed through the Fund.

4 ‘‘(b) FUNDS AND ACTIVITIES INCLUDED.—The funds

5 and activities referred to in subsection (a) are the follow6 ing:

7 ‘‘(1) Working-capital funds established under

8 section 2208 of this title and in existence on Decem9 ber 5, 1991.

10 ‘‘(2) Those activities that, on December 5,

11 1991, were funded through the use of a working12 capital fund established under that section.

13 ‘‘(3) The Defense Finance and Accounting

14 Service.

15 ‘‘(4) The Defense Industrial Plant Equipment

16 Center.

17 ‘‘(5) The Defense Commissary Agency.

18 ‘‘(6) The Defense Technical Information Serv19 ice.

20 ‘‘(7) The Defense Reutilization and Marketing

21 Service.

22 ‘‘(c) SEPARATE ACCOUNTING, REPORTING, AND AU23 DITING OF FUNDS AND ACTIVITIES.—(1) The Secretary

24 of Defense shall provide in accordance with this subsection
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1 for separate accounting, reporting, and auditing of funds

2 and activities managed through the Fund.

3 ‘‘(2) The Secretary shall maintain the separate iden4 tity of each fund and activity managed through the Fund

5 that (before the establishment of the Fund) was managed

6 as a separate fund or activity.

7 ‘‘(3) The Secretary shall maintain separate records

8 for each function for which payment is made through the

9 Fund and which (before the establishment of the Fund)

10 was paid directly through appropriations, including the

11 separate identity of the appropriation account used to pay

12 for the performance of the function.

13 ‘‘(d) CHARGES FOR GOODS AND SERVICES PROVIDED

14 THROUGH THE FUND.—(1) Charges for goods and serv15 ices provided through the Fund shall include the following

16 amounts:

17 ‘‘(A) Amounts necessary to recover the full

18 costs of—

19 ‘‘(i) the development, implementation, op20 eration, and maintenance of systems supporting

21 the wholesale supply and maintenance activities

22 of the Department of Defense; and

23 ‘‘(ii) the use of members of the armed

24 forces in the provision of the goods and serv25 ices, computed by calculating, to the maximum
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1 extent practicable, such costs as if employees of

2 the Department of Defense were used in the

3 provision of the goods and services.

4 ‘‘(B) Amounts for depreciation of capital assets,

5 set in accordance with generally accepted accounting

6 principles.

7 ‘‘(C) Amounts necessary to recover the full cost

8 of the operation of the Defense Finance Accounting

9 Service.

10 ‘‘(2) Charges for goods and services provided through

11 the Fund may not include the following amounts:

12 ‘‘(A) Amounts necessary to recover the costs of

13 a military construction project (as defined in section

14 2801(b) of this title), other than a minor construc15 tion project financed by the Fund pursuant to sec16 tion 2805(c)(1) of this title.

17 ‘‘(B) Amounts necessary to cover costs incurred

18 in connection with the closure or realignment of a

19 military installation.

20 ‘‘(e) CAPITAL ASSET SUBACCOUNT.—(1) Amounts

21 charged for depreciation of capital assets pursuant to sub22 section (d)(1)(B) shall be credited to a separate capital

23 asset subaccount established within the Fund.
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1 ‘‘(2) The Secretary of Defense may award contracts

2 for capital assets of the Fund in advance of the availability

3 of funds in the subaccount.

4 ‘‘(f) PROCEDURES FOR ACCUMULATION OF

5 FUNDS.—The Secretary of Defense shall establish billing

6 procedures to ensure that the balance in the Fund does

7 not exceed the amount necessary to provide for the work8 ing capital requirements of the Fund, as determined by

9 the Secretary.

10 ‘‘(g) PURCHASE FROM OTHER SOURCES.—The Sec11 retary of Defense or the Secretary of a military depart12 ment may purchase goods and services that are available

13 for purchase from the Fund from a source other than the

14 Fund if the Secretary determines that such source offers

15 a more competitive rate for the goods and services than

16 the Fund offers.

17 ‘‘(h) ANNUAL REPORTS AND BUDGET.—The Sec18 retary of Defense shall annually submit to Congress, at

19 the same time that the President submits the budget

20 under section 1105 of title 31, the following:

21 ‘‘(1) A detailed report that contains a state22 ment of all receipts and disbursements of the Fund

23 (including such a statement for each subaccount of

24 the Fund) for the year for which the report is sub25 mitted.
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1 ‘‘(2) A detailed proposed budget for the oper2 ation of the Fund for the fiscal year for which the

3 budget is submitted.

4 ‘‘(3) A comparison of the amounts actually ex5 pended for the operation of the Fund for the pre6 vious fiscal year with the amount proposed for the

7 operation of the Fund for that fiscal year in the

8 President’s budget.

9 ‘‘(4) A report on the capital asset subaccount of

10 the Fund that contains the following information:

11 ‘‘(A) The opening balance of the sub12 account as of the beginning of the fiscal year in

13 which the report is submitted.

14 ‘‘(B) The estimated amounts to be credited

15 to the subaccount in the fiscal year in which the

16 report is submitted.

17 ‘‘(C) The estimated amounts of outlays to

18 be paid out of the subaccount in the fiscal year

19 in which the report is submitted.

20 ‘‘(D) The estimated balance of the sub21 account at the end of the fiscal year in which

22 the report is submitted.

23 ‘‘(E) A statement of how much of the esti24 mated balance at the end of the fiscal year in

25 which the report is submitted will be needed to
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1 pay outlays in the immediately following fiscal

2 year that are in excess of the amount to be

3 credited to the subaccount in the immediately

4 following fiscal year.

5 ‘‘(i) DEFINITIONS.—In this section:

6 ‘‘(1) The term ‘capital assets’ means the follow7 ing capital assets that have a development or acqui8 sition cost of not less than $15,000:

9 ‘‘(A) Minor construction projects financed

10 by the Fund pursuant to section 2805(c)(1) of

11 this title.

12 ‘‘(B) Automatic data processing equip13 ment, software, other equipment, and other

14 capital improvements.

15 ‘‘(2) The term ‘Fund’ means the Defense Busi16 ness Operations Fund.’’.

17 (2) The table of sections at the beginning of such

18 chapter is amended by inserting after the item relating

19 to section 2215 the following new item:

‘‘2216. Defense Business Operations Fund.’’.

20 (b) CONFORMING REPEALS.—The following provi21 sions of law are hereby repealed:

22 (1) Subsections (b), (c), (d), and (e) of section

23 311 of the National Defense Authorization Act for

24 Fiscal Year 1995 (Public Law 103–337; 10 U.S.C.

25 2208 note).
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1 (2) Subsections (a) and (b) of section 333 of

2 the National Defense Authorization Act for Fiscal

3 Year 1994 (Public Law 103–160; 10 U.S.C. 2208

4 note).

5 (3) Section 342 of the National Defense Au6 thorization Act for Fiscal Year 1993 (Public Law

7 102–484; 10 U.S.C. 2208 note).

8 (4) Section 316 of the National Defense Au9 thorization Act for Fiscal Years 1992 and 1993

10 (Public Law 102–190; 10 U.S.C. 2208 note).

11 (5) Section 8121 of the Department of Defense

12 Appropriations Act, 1992 (Public Law 102–172; 10

13 U.S.C. 2208 note).

14 SEC. 312. RETENTION OF CENTRALIZED MANAGEMENT OF

15 DEFENSE BUSINESS OPERATIONS FUND AND

16 PROHIBITION ON FURTHER EXPANSION OF

17 FUND.

18 (a) CENTRALIZED MANAGEMENT.—Subsection (a) of

19 section 2216 of title 10, United States Code, as added by

20 section 311(a), is amended—

21 (1) by inserting ‘‘(1)’’ before ‘‘The Secretary of

22 Defense’’; and

23 (2) by adding at the end the following new

24 paragraph:
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1 ‘‘(2) Management of the Fund, including manage2 ment of cash balances in the Fund, shall be exercised in

3 the Office of the Secretary of Defense under the imme4 diate authority of the Under Secretary of Defense (Comp5 troller). The Fund shall be treated as a single account for

6 purposes of subchapter III of chapter 13 and subchapter

7 II of chapter 15 of title 31.’’.

8 (b) EXPANSION OF FUND.—Such subsection is fur9 ther amended by adding at the end of paragraph (1) the

10 following new sentence: ‘‘The Secretary may not convert

11 to management through the Fund any function, activity,

12 fund, or account of the Department of Defense that is not

13 managed through the Fund as of the date of the enact14 ment of the National Defense Authorization Act for Fiscal

15 Year 1996.’’.

16 SEC. 313. CHARGES FOR GOODS AND SERVICES PROVIDED

17 THROUGH DEFENSE BUSINESS OPERATIONS

18 FUND AND TERMINATION OF ADVANCE BILL19 ING PRACTICES.

20 (a) CHARGES INCLUDED.—Paragraph (1)(A)(ii) of

21 subsection (d) of section 2216 of title 10, United States

22 Code, as added by section 311(a), is amended by striking

23 out ‘‘as if employees of the Department of Defense were

24 used in the provision of the goods and services’’ and in-
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1 serting in lieu thereof ‘‘using the pay and allowances of

2 the members’’.

3 (b) CHARGES EXCLUDED.—Paragraph (2) of such

4 subsection is amended by adding at the end the following

5 new subparagraph:

6 ‘‘(C) Amounts necessary to recover the costs of

7 functions designated by the Secretary of Defense as

8 mission critical, such as ammunition handling safe9 ty, and amounts for ancillary tasks not directly re10 lated to the mission of the function or activity man11 aged through the Fund.’’.

12 (c) TERMINATION OF ADVANCE BILLING PRAC13 TICES.—Such subsection is further amended by adding at

14 the end the following new paragraph:

15 ‘‘(3) After September 30, 1996, functions and activi16 ties managed through the Fund may not use advance bill17 ing in the provision of goods and services to customers.’’.

18 SEC. 314. ANNUAL PROPOSED BUDGET FOR OPERATION OF

19 DEFENSE BUSINESS OPERATIONS FUND.

20 Subsection (h)(2) of section 2216 of title 10, United

21 States Code, as added by section 311(a), is amended by

22 adding at the end the following new sentence: ‘‘The pro23 posed budget shall include the amount necessary to cover

24 the operating losses, if any, of the Fund for the previous

25 fiscal year.’’.
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1 SEC. 315. REDUCTION IN REQUESTS FOR TRANSPORTATION

2 FUNDED THROUGH DEFENSE BUSINESS OP3 ERATIONS FUND.

4 (a) REDUCTION.—The Secretary of Defense shall di5 rect the heads of Defense-wide activities and the Secretar6 ies of the military departments to reduce requests during

7 fiscal year 1996 for purchasing transportation from the

8 transportation accounts of the Defense Business Oper9 ations Fund by $70,000,000 below the level of such re10 quests during fiscal year 1995. The rates charged for

11 transportation funded through the Defense Business Op12 erations Fund shall be reduced to reflect the effect of the

13 reduced requests on overhead costs.

14 (b) REPORT REQUIRED.—Not later than March 1,

15 1996, the Secretary of Defense shall submit to Congress

16 a report regarding—

17 (1) the effect on the Defense transportation or18 ganization of implementing certain consolidation

19 proposals, such as the elimination of duplication in

20 the component command structure; and

21 (2) the extent that transportation overhead, the

22 cost of which is passed on to customers, can be sig23 nificantly reduced without adversely affecting mobili24 zation requirements.
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1 Subtitle C—Environmental

2 Provisions

3 SEC. 321. CLARIFICATION OF SERVICES AND PROPERTY

4 THAT MAY BE EXCHANGED TO BENEFIT THE

5 HISTORICAL COLLECTION OF THE ARMED

6 FORCES.

7 Section 2572(b) of title 10, United States Code, is

8 amended in paragraph (1) by striking out ‘‘not needed by

9 the armed forces’’ and all that follows through the end

10 of the paragraph and inserting in lieu thereof the follow11 ing: ‘‘not needed by the armed forces for any of the follow12 ing items or services if they directly benefit the historical

13 collection of the armed forces:

14 ‘‘(A) Similar items held by any individual, orga15 nization, institution, agency, or nation.

16 ‘‘(B) Conservation supplies, equipment, facili17 ties, or systems.

18 ‘‘(C) Search, salvage, or transportation services.

19 ‘‘(D) Restoration, conservation, or preservation

20 services.

21 ‘‘(E) Educational programs.’’.
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1 SEC. 322. ADDITION OF AMOUNTS CREDITABLE TO DE2 FENSE ENVIRONMENTAL RESTORATION AC3 COUNT.

4 Section 2703(e) of title 10, United States Code is

5 amended to read as follows:

6 ‘‘(e) AMOUNTS RECOVERED.—The following amounts

7 shall be credited to the transfer account:

8 ‘‘(1) Amounts recovered under section 107 of

9 CERCLA for response actions of the Secretary.

10 ‘‘(2) Any other amounts recovered by the Sec11 retary or the Secretary of the military department

12 concerned from a contractor, insurer, surety, or

13 other person to reimburse the Department of De14 fense for any expenditure for environmental response

15 activities.’’.

16 SEC. 323. REPEAL OF CERTAIN ENVIRONMENTAL EDU17 CATION PROGRAMS.

18 Sections 1333 and 1334 of the National Defense Au19 thorization Act for Fiscal Year 1994 (Public Law 103–

20 160; 10 U.S.C. 2701 note) are repealed.

21 SEC. 324. REPEAL OF LIMITATION ON OBLIGATION OF

22 AMOUNTS TRANSFERRED FROM ENVIRON23 MENTAL RESTORATION TRANSFER ACCOUNT.

24 (a) REPEAL OF LIMITATION.—Section 2703 of title

25 10, United States Code, is further amended—

26 (1) by striking out subsection (c); and
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1 (2) by redesignating subsection (d), subsection

2 (e) (as amended by section 322), and subsection (f)

3 as subsections (c), (d), and (e), respectively.

4 (b) EFFECT ON CONTRACTS.—Nothing in the amend5 ment made by subsection (a) shall be considered to negate

6 or invalidate any legal protection or legal defense available

7 to the Department of Defense under ‘‘force majeure’’

8 clauses in environmental restoration contracts or agree9 ments existing on the date of the enactment of this Act.

10 SEC. 325. ELIMINATION OF AUTHORITY TO TRANSFER

11 AMOUNTS FOR TOXICOLOGICAL PROFILES.

12 Section 2704 of title 10, United States Code, is

13 amended in subsections (c) and (d)(3)—

14 (1) by striking out ‘‘, such sums from amounts

15 appropriated to the Department of Defense,’’; and

16 (2) by striking out ‘‘, including the manner for

17 transferring funds and personnel and for coordina18 tion of activities under this section’’.

19 SEC. 326. SENSE OF CONGRESS ON USE OF DEFENSE ENVI20 RONMENTAL RESTORATION ACCOUNT.

21 It is the sense of Congress that the Secretary of De22 fense should make every effort to limit, by the end of fiscal

23 year 1997, spending for administration, support, studies,

24 and investigations associated with the Defense Environ-
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1 mental Restoration Account to 20 percent of the total

2 funding for that account.

3 Subtitle D—Civilian Employees

4 and Nonappropriated Fund In5 strumentality Employees

6 SEC. 331. MANAGEMENT OF DEPARTMENT OF DEFENSE CI7 VILIAN PERSONNEL.

8 Section 129 of title 10, United States Code, is

9 amended—

10 (1) in subsection (a)—

11 (A) by inserting ‘‘(including any limitation

12 on full-time equivalent positions)’’ before the

13 period at the end of the second sentence; and

14 (B) by adding at the end the following new

15 sentence: ‘‘The Secretary shall not be required

16 to make a reduction in the number of full-time

17 equivalent positions in the Department of De18 fense unless such reduction is necessary due to

19 a reduction in funds available to the Depart20 ment or is required under a law that is enacted

21 after the date of the enactment of the National

22 Defense Authorization Act for Fiscal Year 1996

23 and that refers specifically to this subsection.’’;

24 and
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1 (2) by adding at the end the following new sub2 section:

3 ‘‘(d) With respect to each budget activity within an

4 appropriation for any fiscal year for operations and main5 tenance, the Secretary of Defense shall ensure that there

6 are employed during that fiscal year employees in the

7 number, and of the type and with the skill mix, that are

8 necessary to carry out the functions within that budget

9 activity for which funds are provided for that fiscal year.’’.

10 SEC. 332. MANAGEMENT OF DEPOT EMPLOYEES.

11 (a) DEPOT EMPLOYEES.—Chapter 146 of title 10,

12 United States Code, is amended by adding at the end the

13 following new section:

14 ‘‘§ 2472. Management of depot employees

15 ‘‘(a) PROHIBITION ON MANAGEMENT BY END

16 STRENGTH.—The civilian employees of the Department of

17 Defense involved in the depot-level maintenance and repair

18 of materiel may not be managed on the basis of any end19 strength constraint or limitation on the number of such

20 employees who may be employed on the last day of a fiscal

21 year. Such employees shall be managed solely on the basis

22 of the available workload and the funds made available

23 for such depot-level maintenance and repair.

24 ‘‘(b) ANNUAL REPORT.—Not later than 60 days after

25 the beginning of each fiscal year, the Secretary of Defense
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1 shall submit to the Committee on Armed Services of the

2 Senate and the Committee on National Security of the

3 House of Representatives a report on the number of em4 ployees employed and expected to be employed by the De5 partment of Defense during that fiscal year to perform

6 depot-level maintenance and repair of materiel. The report

7 shall indicate whether that number is sufficient to perform

8 the depot-level maintenance and repair functions for which

9 funds have been appropriated for that fiscal year for per10 formance by Department of Defense employees.’’.

11 (b) CLERICAL AMENDMENT.—The table of sections

12 at the beginning of chapter 146 of such title is amended

13 by adding at the end the following new item:

‘‘2472. Management of depot employees.’’.

14 SEC. 333. CONVERSION TO PERFORMANCE BY CIVILIAN EM15 PLOYEES OF ACTIVE-DUTY POSITIONS.

16 (a) CONVERSION TO CIVILIAN PERFORMANCE.—Dur17 ing fiscal year 1996, the Secretary of Defense shall change

18 to performance by employees of the Department of De19 fense the performance of not less than 10,000 positions

20 in the Department of Defense that, as of September 30,

21 1995, were designated to be performed by members of the

22 Armed Forces on active duty.

23 (b) IMPLEMENTATION PLAN.—Not later than March

24 31, 1996, the Secretary of Defense shall submit to the

25 Committee on Armed Services of the Senate and the Com-
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1 mittee on National Security of the House of Representa2 tives a plan for the implementation of subsection (a).

3 SEC. 334. PERSONNEL ACTIONS INVOLVING EMPLOYEES OF

4 NONAPPROPRIATED FUND INSTRUMENTAL5 ITIES.

6 (a) CLARIFICATION OF DEFINITION OF NONAP7 PROPRIATED FUND INSTRUMENTALITY EMPLOYEE.—

8 Subsection (a)(1) of section 1587 of title 10, United

9 States Code, is amended by adding at the end the follow10 ing new sentence: ‘‘Such term includes a civilian employee

11 of a support organization within the Department of De12 fense or a military department, such as the Defense Fi13 nance and Accounting Service, who is paid from

14 nonappropriated funds on account of the nature of the em15 ployee’s duties.’’.

16 (b) DIRECT REPORTING OF VIOLATIONS.—Sub17 section (e) of such section is amended in the second sen18 tence by inserting before the period the following: ‘‘and

19 to permit the direct reporting of alleged violations of sub20 section (b) to the Inspector General of the Department

21 of Defense’’.

22 (c) TECHNICAL AMENDMENT.—Subsection (a)(1) of

23 such section is further amended by striking out ‘‘Navy Re24 sale and Services Support Office’’ and inserting in lieu

25 thereof ‘‘Navy Exchange Service Command’’.
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1 (d) CLERICAL AMENDMENTS.—(1) The heading of

2 such section is amended to read as follows:

3 ‘‘§ 1587. Employees of nonappropriated fund instru4 mentalities: personnel actions’’.

5 (2) The item relating to section 1587 in the table of

6 sections at the beginning of chapter 81 of such title is

7 amended to read as follows:

‘‘1587. Employees of nonappropriated fund instrumentalities: personnel actions.’’.

8 SEC. 335. LIMITATION ON PROVISION OF OVERSEAS LIVING

9 QUARTERS ALLOWANCES FOR

10 NONAPPROPRIATED FUND INSTRUMENTAL11 ITY EMPLOYEES.

12 (a) CONFORMING ALLOWANCE TO ALLOWANCES FOR

13 OTHER CIVILIAN EMPLOYEES.—Subject to subsection (b),

14 any overseas living quarters allowance paid from

15 nonappropriated funds and provided to a nonappropriated

16 fund instrumentality employee after the date of the enact17 ment of this Act may not exceed the amount of a quarters

18 allowance provided under subchapter III of chapter 59 of

19 title 5 to a similarly situated civilian employee of the De20 partment of Defense paid from appropriated funds.

21 (b) APPLICATION TO CERTAIN CURRENT EMPLOY22 EES.—In the case of a nonappropriated fund instrumen23 tality employee who, as of the date of the enactment of

24 this Act, receives an overseas living quarters allowance
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1 under any other authority, subsection (a) shall apply to

2 such employee only after the earlier of—

3 (1) September 30, 1998; or

4 (2) the date on which the employee otherwise

5 ceases to be eligible for such an allowance under

6 such other authority.

7 (c) NONAPPROPRIATED FUND INSTRUMENTALITY

8 EMPLOYEE DEFINED.—For purposes of this section, the

9 term ‘‘nonappropriated fund instrumentality employee’’

10 has the meaning given such term in section 1587(a)(1)

11 of title 10, United States Code.

12 SEC. 336. OVERTIME EXEMPTION FOR NONAPPROPRIATED

13 FUND EMPLOYEES.

14 Section 6121(2) of title 5, United States Code, is

15 amended to read as follows:

16 ‘‘(2) ‘employee’ has the meaning given it by sec17 tion 2105(a) and also includes those paid from

18 nonappropriated funds of the Army and Air Force

19 Exchange Service, Navy Ship’s Stores Ashore, Navy

20 exchanges, Marine Corps exchanges, Coast Guard

21 exchanges, and other instrumentalities of the United

22 States under the jurisdiction of the armed forces

23 conducted for the comfort, pleasure, contentment,

24 and mental and physical improvement of personnel

25 of the armed forces;’’.
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1 SEC. 337. CONTINUED HEALTH INSURANCE COVERAGE.

2 Section 8905a(d)(4) of title 5, United States Code,

3 is amended—

4 (1) in subparagraph (A), by inserting ‘‘, or a

5 voluntary separation from a surplus position,’’ after

6 ‘‘an involuntary separation from a position’’; and

7 (2) by adding at the end the following new sub8 paragraph:

9 ‘‘(C) For the purpose of this paragraph, ‘surplus po10 sition’ means a position which is identified in pre-reduc11 tion in force planning as no longer required, and which

12 is expected to be eliminated under formal reduction-in13 force procedures.’’.

14 SEC. 338. CREDITABILITY OF CERTAIN NAFI SERVICE

15 UNDER THE FEDERAL EMPLOYEES’ RETIRE16 MENT SYSTEM.

17 (a) IN GENERAL.—Subject to subsections (b) and (c),

18 upon application to the Office of Personnel Management,

19 any individual who, on the date of making such applica20 tion, is an employee within the Department of Defense or

21 the legislative branch of the Government shall be allowed

22 credit under chapter 84 of title 5, United States Code (for

23 purposes of benefits payable out of the Fund) for any serv24 ice if—

25 (1) such service was performed by such individ26 ual as an employee of a nonappropriated fund in-
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1 strumentality of the Department of Defense or the

2 Coast Guard, described in section 2105(c) of such

3 title; and

4 (2) such individual has served continuously,

5 since moving (after December 31, 1986, and without

6 a break in service of more than 3 days) from a

7 nonappropriated fund instrumentality referred to in

8 paragraph (1), in—

9 (A) the Department of Defense; or

10 (B) the legislative branch of the Govern11 ment.

12 (b) CONDITIONS.—An individual may not be allowed

13 credit for service under this section unless—

14 (1) an application is filed before the deadline

15 under subsection (c);

16 (2) such individual has been subject to chapter

17 84 of title 5, United States Code, since moving in

18 the manner described in subsection (a)(2); and

19 (3) such individual deposits to the credit of the

20 Fund an amount equal to 1.3 percent of the basic

21 pay paid to such individual for such service, with in22 terest (computed in accordance with paragraphs (2)

23 and (3) of section 8334(e) of title 5, United States

24 Code).
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1 (c) DEADLINE.—An application under this section

2 may not be filed after—

3 (1) the end of the 6-month period beginning on

4 the date of the enactment of this Act; or

5 (2) if earlier, the date on which a written deter6 mination is made by the Office of Personnel Man7 agement that the actuarial present value of all bene8 fits payable as a result of the enactment of this sec9 tion has reached $50,000,000.

10 (d) REGULATIONS.—The Office of Personnel Man11 agement shall prescribe any regulations necessary to carry

12 out this section.

13 (e) DEFINITION.—For purposes of this section, the

14 term ‘‘Fund’’ means the Civil Service Retirement and Dis15 ability Fund under section 8348 of title 5, United States

16 Code.

17 Subtitle E—Commissaries and

18 Nonappropriated Fund Instru19 mentalities

20 SEC. 341. OPERATION OF COMMISSARY STORE SYSTEM.

21 (a) COOPERATION WITH OTHER ENTITIES.—Section

22 2482 of title 10, United States Code, is amended—

23 (1) in the section heading, by striking out

24 ‘‘private’’;
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1 (2) by inserting ‘‘(a) PRIVATE OPERATION.—’’

2 before ‘‘Private persons’’; and

3 (3) by adding at the end the following new sub4 section:

5 ‘‘(b) CONTRACTS WITH OTHER AGENCIES AND IN6 STRUMENTALITIES.—(1) The Defense Commissary Agen7 cy, and other agencies of the Department of Defense that

8 support the operation of the commissary store system,

9 may enter into contracts or other agreements with other

10 appropriated fund or nonappropriated fund instrumental11 ities of the Department of Defense or other departments

12 or agencies of the United States to facilitate efficiency in

13 the management and operation of the commissary store

14 system.

15 ‘‘(2) A commissary store operated by a

16 nonappropriated fund instrumentality shall be operated in

17 accordance with section 2484 of this title. Subject to such

18 section, the Secretary of Defense may authorize a transfer

19 of goods, supplies, and facilities of, and funds appro20 priated for, the Defense Commissary Agency to a

21 nonappropriated fund instrumentality operating a com22 missary store.’’.

23 (b) AUTHORIZATION FOR DISTRIBUTORS TO SERVE

24 AS VENDOR AGENTS.—Such section is further amended
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1 by adding after subsection (b), as added by subsection (a),

2 the following new subsection:

3 ‘‘(c) PAYMENTS TO VENDOR AGENTS.—If a distribu4 tor for a vendor of resale products under contract to the

5 Defense Commissary Agency is designated as an agent by

6 and for the vendor, the distributor may invoice the agency

7 and accept payments from the agency under the vendor’s

8 contract. A distributor designated as a agent for purposes

9 of this subsection may request payment for more than one

10 product of the vendor on the same invoice. All payments

11 made by the agency to a distributor designated by a ven12 dor as the vendor’s agent shall be considered payments

13 under the vendor’s contract, and the payments shall fulfill

14 the payment obligations of the United States in the same

15 manner as if the payments had been made directly to the

16 vendor.’’.

17 (c) CLERICAL AMENDMENT.—The item relating to

18 such section in the table of sections at the beginning of

19 chapter 147 of such title is amended to read as follows:

‘‘2482. Commissary stores: operation.’’.

20 SEC. 342. PRICING POLICIES FOR COMMISSARY STORE

21 MERCHANDISE.

22 Section 2486(d)(1) of title 10, United States Code,

23 is amended—

24 (1) by striking out ‘‘each item’’ and inserting in

25 lieu thereof ‘‘items’’; and
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1 (2) by striking out ‘‘actual product cost of the

2 item’’ and inserting in lieu thereof ‘‘total average

3 product cost of merchandise sold’’.

4 SEC. 343. LIMITED RELEASE OF COMMISSARY STORES

5 SALES INFORMATION TO MANUFACTURERS,

6 DISTRIBUTORS, AND OTHER VENDORS DOING

7 BUSINESS WITH DEFENSE COMMISSARY

8 AGENCY.

9 Section 2487(b) of title 10, United States Code, is

10 amended in the second sentence by inserting before the

11 period the following: ‘‘unless the agreement is between the

12 Defense Commissary Agency and a manufacturer, dis13 tributor, or other vendor doing business with the Agency

14 and is restricted to information directly related to mer15 chandise provided by that manufacturer, distributor, or

16 vendor’’.

17 SEC. 344. ECONOMICAL DISTRIBUTION OF DISTILLED SPIR18 ITS BY NONAPPROPRIATED FUND INSTRU19 MENTALITIES.

20 (a) ECONOMICAL DISTRIBUTION.—Subsection (a)(1)

21 of section 2488 of title 10, United States Code, is amend22 ed by inserting after ‘‘most competitive source’’ the follow23 ing: ‘‘and distributed in the most economical manner’’.

24 (b) DETERMINATION OF MOST ECONOMICAL DIS25 TRIBUTION METHOD.—Such section is further amended—
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1 (1) by redesignating subsection (c) as sub2 section (d); and

3 (2) by inserting after subsection (b) the follow4 ing new subsection:

5 ‘‘(c)(1) In the case of covered alcoholic beverage pur6 chases of distilled spirits, to determine whether a

7 nonappropriated fund instrumentality of the Department

8 of Defense represents the most economical method of dis9 tribution to package stores, the Secretary of Defense shall

10 consider all components of the distribution costs incurred

11 by the nonappropriated fund instrumentality, such as

12 overhead costs (including management, logistics, adminis13 tration, depreciation, and utilities), the costs of carrying

14 inventory, and handling and distribution costs.

15 ‘‘(2) If the use of a private distributor would subject

16 covered alcoholic beverage purchases of distilled spirits to

17 direct or indirect State taxation, a nonappropriated fund

18 instrumentality shall be considered to be the most eco19 nomical method of distribution regardless the results of

20 the determination under paragraph (1).

21 ‘‘(3) The Secretary shall use the agencies performing

22 audit functions on behalf of the armed forces and the In23 spector General of the Department of Defense to make

24 determinations under this subsection.’’.
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1 SEC. 345. TRANSPORTATION BY COMMISSARIES AND EX2 CHANGES TO OVERSEAS LOCATIONS.

3 (a) IN GENERAL.—Chapter 157 of title 10, United

4 States Code, is amended by adding at the end the follow5 ing new section:

6 ‘‘§ 2643. Commissary and exchange services: trans7 portation overseas

8 ‘‘The Secretary of Defense shall give the officials re9 sponsible for operation of commissaries and military ex10 changes the authority to negotiate directly with private

11 carriers for the most cost-effective transportation of com12 missary and exchange supplies by sea without relying on

13 the Military Sealift Command or the Military Traffic Man14 agement Command. Section 2631 of this title, regarding

15 the preference for vessels of the United States or belong16 ing to the United States in the transportation of supplies

17 by sea, shall apply to the negotiation of transportation

18 contracts under the authority of this section.’’.

19 (b) CLERICAL AMENDMENT.—The table of sections

20 at the beginning of such chapter is amended by adding

21 at the end the following new item:

‘‘2643. Commissary and exchange services: transportation overseas.’’.
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1 SEC. 346. DEMONSTRATION PROGRAM FOR UNIFORM

2 FUNDING OF MORALE, WELFARE, AND

3 RECREATION ACTIVITIES AT CERTAIN MILI4 TARY INSTALLATIONS.

5 (a) DEMONSTRATION PROGRAM REQUIRED.—The

6 Secretary of Defense shall conduct a demonstration pro7 gram at six military installations, under which funds ap8 propriated for the support of morale, welfare, and recre9 ation programs at the installations are combined with

10 nonappropriated funds available for such programs and

11 treated as nonappropriated funds. Under this demonstra12 tion program, the combined appropriated funds shall be

13 expended pursuant to the laws and regulations that apply

14 to nonappropriated funds.

15 (b) COVERED MILITARY INSTALLATIONS.—The Sec16 retary of Defense shall select two military installations

17 from each military department to participate in the dem18 onstration program.

19 (c) EFFECT ON CIVILIAN EMPLOYEES.—Civilian em20 ployees of the Department of Defense who are normally

21 paid using the appropriated funds that are combined

22 under subsection (a) shall be considered to be

23 nonappropriated fund instrumentality employees unless

24 they continue to be paid using other appropriated funds.

25 Any converted employee shall automatically revert to the

26 employee’s former status at the end of the program or
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1 upon any action by management to terminate the em2 ployee, whichever occurs first. Any converted employee

3 shall retain retirement and medical benefits under the em4 ployee’s former status.

5 (d) PERIOD OF DEMONSTRATION PROGRAM.—The

6 demonstration program shall terminate at the end of the

7 first full fiscal year beginning on or after the date of the

8 enactment of this Act.

9 (e) REPORT.—Not later than 90 days after the end

10 of the demonstration program, the Secretary of Defense

11 shall submit to Congress a report describing the results

12 of the demonstration program.

13 SEC. 347. CONTINUED OPERATION OF BASE EXCHANGE

14 MART AT FORT WORTH NAVAL AIR STATION

15 AND AUTHORITY TO EXPAND BASE EX16 CHANGE MART PROGRAM.

17 (a) CONTINUED OPERATION OF BASE EXCHANGE

18 MART.—Section 375 of the National Defense Authoriza19 tion Act for Fiscal Year 1995 (Public Law 103–337; 108

20 Stat. 2736) is amended by striking out ‘‘, until December

21 31, 1995,’’.

22 (b) EXPANSION OF BASE EXCHANGE MART PRO23 GRAM.—(1) Subject to paragraph (2), the Secretary of

24 Defense may provide for the operation by a

25 nonappropriated fund instrumentality of not more than
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1 ten combined exchange and commissary stores, in which

2 groceries are sold at five percent above cost and other

3 items are sold at the typical military exchange markup.

4 (2) The Secretary may select a military installation

5 as the location for a combined exchange and commissary

6 store only if—

7 (A) the installation has been or is selected for

8 closure or realignment; or

9 (B) the continued operation of a separate mili10 tary exchange and commissary store at the installa11 tion is not economically feasible.

12 (3) If a nonappropriated fund instrumentality incurs

13 a loss in operating a commissary store as a result of the

14 pricing requirements specified in paragraph (1), the Sec15 retary may authorize a transfer of funds appropriated for

16 the Defense Commissary Agency to the nonappropriated

17 fund instrumentality to offset the loss. However, the total

18 amount of appropriated funds transferred during a fiscal

19 year to support the operation of a commissary store may

20 not exceed an amount equal to 25 percent of the appro21 priated funds provided during the last full year of oper22 ation of the commissary store by the Defense Commissary

23 Agency.

24 (4) The combined military exchange and commissary

25 stores authorized under this subsection shall include the
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1 combined military exchange and commissary store oper2 ated at the Naval Air Station Fort Worth, Joint Reserve

3 Center, Carswell Field, Texas.

4 (5) For purposes of this section, the term

5 ‘‘nonappropriated fund instrumentality’’ means the Army

6 and Air Force Exchange Service, Navy Exchange Service

7 Command, Marine Corps exchanges, or any other instru8 mentality of the United States under the jurisdiction of

9 the Armed Forces which is conducted for the comfort,

10 pleasure, contentment, or physical or mental improvement

11 of members of the Armed Forces.

12 SEC. 348. UNIFORM DEFERRED PAYMENTS PROGRAM FOR

13 MILITARY EXCHANGES.

14 (a) USE OF COMMERCIAL BANKING INSTITUTIONS.—

15 As soon as possible after the date of the enactment of this

16 Act, the Secretary of Defense shall endeavor to enter into

17 an agreement with a commercial banking institution under

18 which the commercial banking institution will fund and

19 operate the deferred payment programs of the Army and

20 Air Force Exchange Service and Navy Exchange Service

21 Command. To ease the transition to commercial operation,

22 the Secretary may initially limit the agreement to one of

23 the two military exchange services.

24 (b) UNIFORM EXCHANGE CREDIT PROGRAM.—Not

25 later than January 1, 1997, the Secretary shall establish
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1 a uniform deferred payment program for use in all mili2 tary exchanges to replace the separate deferred payment

3 programs currently operated by the Army and Air Force

4 Exchange Service and Navy Exchange Service Command.

5 (c) REPORT.—Not later than December 31, 1995, the

6 Secretary of Defense shall submit to Congress a report

7 describing the implementation of this section.

8 SEC. 349. AVAILABILITY OF FUNDS TO OFFSET EXPENSES

9 INCURRED BY ARMY AND AIR FORCE EX10 CHANGE SERVICE ON ACCOUNT OF TROOP

11 REDUCTIONS IN EUROPE.

12 Of funds authorized to be appropriated under section

13 301(5), not more than $70,000,000 shall be available to

14 the Secretary of Defense for transfer to the Army and Air

15 Force Exchange Service to offset expenses incurred by the

16 Army and Air Force Exchange Service on account of re17 ductions in the number of members of the United States

18 Armed Forces assigned to permanent duty ashore in Eu19 rope.
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1 SEC. 350. STUDY REGARDING IMPROVING EFFICIENCIES IN

2 OPERATION OF MILITARY EXCHANGES AND

3 OTHER MORALE, WELFARE, AND RECRE4 ATION ACTIVITIES AND COMMISSARY

5 STORES.

6 (a) STUDY REQUIRED.—The Secretary of Defense

7 shall conduct a study regarding the manner in which

8 greater efficiencies can be achieved in the operation of—

9 (1) military exchanges;

10 (2) other instrumentalities of the United States

11 under the jurisdiction of the Armed Forces which

12 are conducted for the comfort, pleasure, content13 ment, or physical or mental improvement of mem14 bers of the Armed Forces; and

15 (3) commissary stores.

16 (b) REPORT OF STUDY.—Not later than March 1,

17 1996, the Secretary of Defense shall submit to Congress

18 a report describing the results of the study and containing

19 such recommendations as the Secretary considers appro20 priate to implement efficiency-building options identified

21 in the study.
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1 SEC. 351. EXTENSION OF DEADLINE FOR CONVERSION OF

2 NAVY SHIPS’ STORES TO OPERATION AS

3 NONAPPROPRIATED FUND INSTRUMENTAL4 ITIES.

5 (a) EXTENSION.—Section 371(a) of the National De6 fense Authorization Act for Fiscal Year 1994 (Public Law

7 103–160; 10 U.S.C. 7604 note) is amended by striking

8 out ‘‘December 31, 1995’’ and inserting in lieu thereof

9 ‘‘December 31, 1996’’.

10 (b) INSPECTOR GENERAL REVIEW.—Not later than

11 April 1, 1996, the Inspector General of the Department

12 of Defense shall submit to Congress a report—

13 (1) evaluating the costs and benefits of convert14 ing the operation of all Navy ships’ stores to oper15 ation by the Navy Exchange Service Command, as

16 required by section 371(a) of the National Defense

17 Authorization Act for Fiscal Year 1994 (Public Law

18 103–160; 10 U.S.C. 7604 note); and

19 (2) reviewing the Navy Audit Agency report re20 garding such conversion prepared pursuant to sec21 tion 374 of the National Defense Authorization Act

22 for Fiscal Year 1995 (Public Law 103–337; 108

23 Stat. 2736).
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1 Subtitle F—Contracting Out

2 SEC. 357. PROCUREMENT OF ELECTRICITY FROM MOST EC3 ONOMICAL SOURCE.

4 (a) PROCUREMENT OF ELECTRICITY.—(1) Chapter

5 147 of title 10, United States Code, is amended by insert6 ing after section 2483 the following new section:

7 ‘‘§ 2483a. Procurement of electricity from most eco8 nomical source

9 ‘‘The Secretary of Defense shall procure electricity

10 for use on military installations and by other activities and

11 functions of the Department of Defense from the most ec12 onomical source, as determined by the Secretary. The Sec13 retary shall make the determination required by this sec14 tion in the manner provided in section 2462 of this title.’’.

15 (2) The table of sections at the beginning of such

16 chapter is amended by inserting after the item relating

17 to section 2483 the following new item:

‘‘2483a. Procurement of electricity from most economical source.’’.

18 (b) EFFECTIVE DATE; RULE OF CONSTRUCTION.—

19 The amendment made by subsection (a) shall take effect

20 on March 1, 1996, except that the amendment shall not

21 be construed to require the termination of any contract

22 for the purchase of electricity for the Department of De23 fense entered into before that date.
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1 SEC. 358. PROCUREMENT OF CERTAIN COMMODITIES

2 FROM MOST ECONOMICAL SOURCE.

3 (a) PROCUREMENT OF SUPPLIES.—In the case of

4 supplies for the Department of Defense procured through

5 the General Services Administration as of the date of the

6 enactment of this Act, the Secretary of Defense shall pro7 cure such supplies from another source if the Secretary

8 determines that the source can provide the supplies at a

9 lower cost. The Secretary shall make the determinations

10 required by this section in the manner provided in section

11 2462 of title 10, United States Code.

12 (b) EFFECTIVE DATE; RULE OF CONSTRUCTION.—

13 The amendment made by subsection (a) shall take effect

14 on March 1, 1996, except that the amendment shall not

15 be construed to require the termination of any contract

16 between the Secretary of Defense and the General Services

17 Administration entered into before that date.

18 SEC. 359. COMMERCIAL PROCUREMENT OF PRINTING AND

19 DUPLICATION SERVICES.

20 Consistent with the requirements of title 44, United

21 States Code, during fiscal year 1996, the Defense Printing

22 Service shall competitively procure a minimum of 70 per23 cent of its printing and duplication services.
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1 SEC. 360. DIRECT DELIVERY OF ASSORTED CONSUMABLE

2 INVENTORY ITEMS OF DEPARTMENT OF DE3 FENSE.

4 To reduce the expense and necessity of maintaining

5 extensive warehouses for consumable inventory items of

6 the Department of Defense, the Secretary of Defense shall

7 arrange for direct vendor delivery of food, clothing, medi8 cal and pharmaceutical supplies, automotive, electrical,

9 fuel, and construction supplies, and other consumable in10 ventory items for military installations throughout the

11 United States. The Secretary shall complete implementa12 tion of this direct vendor delivery system not later than

13 September 30, 1996.

14 SEC. 361. PRIVATE OPERATION OF FUNCTIONS OF DE15 FENSE REUTILIZATION AND MARKETING

16 SERVICE.

17 (a) SOLICITATION OF PROPOSALS.—(1) Not later

18 than March 15, 1996, the Secretary of Defense shall so19 licit for the selected performance by commercial entities

20 of those functions of the Defense Reutilization and Mar21 keting Service, a unit of the Defense Logistics Agency,

22 for which the Secretary determines that privatization

23 would result in cost savings for the United States and the

24 generation of additional revenues for the United States.

25 (b) REPORT ON RETENTION OF FUNCTIONS.—Not

26 later than January 15, 1996, the Secretary shall submit
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1 a report to the Congress describing those functions of the

2 Defense Reutilization and Marketing Service that the Sec3 retary believes should be currently retained for exclusive

4 performance by civilian employees of the Department of

5 Defense or military personnel and the reasons why such

6 functions should be so retained.

7 SEC. 362. PRIVATE OPERATION OF PAYROLL FUNCTIONS

8 OF DEPARTMENT OF DEFENSE FOR PAYMENT

9 OF CIVILIAN EMPLOYEES.

10 (a) PLAN ON CONTRACTING OUT.—Not later than

11 March 1, 1996, the Secretary of Defense shall submit to

12 Congress a plan regarding private operation of payroll

13 functions for civilian employees of the Department of De14 fense.

15 (b) IMPLEMENTATION.—Not later than October 1,

16 1996, the Secretary shall implement the plan developed

17 under subsection (a).

18 SEC. 363. DEMONSTRATION PROGRAM TO IDENTIFY

19 UNDERDEDUCTIONS AND OVERPAYMENTS

20 MADE TO VENDORS.

21 (a) DEMONSTRATION PROGRAM REQUIRED.—The

22 Secretary of Defense shall conduct a demonstration pro23 gram at the Defense Personnel Support Center, Philadel24 phia, Pennsylvania, to evaluate the feasibility of using pri25 vate contractors to audit accounting and procurement
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1 records of the Department of Defense to identify moneys

2 due the United States because of underdeductions and

3 overpayments made to vendors. Pursuant to an agreement

4 between the Secretary and one or more private contractors

5 selected by the Secretary, the contractors shall perform

6 an audit of accounting and procurement records of the De7 partment for at least fiscal years 1993, 1994, and 1995

8 using commercial sector data processing techniques, which

9 would compare purchase documents and agreements with

10 vendor invoices to discover discrepancies in allowances,

11 pricing, discounts, billback allowances, backhaul allow12 ances, and freight routing instructions. The audit shall

13 also attempt to identify duplicate payments and unauthor14 ized invoice charges.

15 (b) BONUS PAYMENT.—From amounts made avail16 able to conduct the demonstration program, the Secretary

17 may pay the contractors a negotiated amount not to ex18 ceed 25 percent of all amounts recovered as a result of

19 the audit.

20 (c) AVAILABILITY OF FUNDS.—From amounts au21 thorized to be appropriated pursuant to section 301(5),

22 not more than $5,000,000 shall be available to cover the

23 costs of the demonstration program, including the cost of

24 any bonus payment under subsection (b).
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1 SEC. 364. PILOT PROGRAM TO EVALUATE POTENTIAL FOR

2 PRIVATE OPERATION OF OVERSEAS DEPEND3 ENTS’ SCHOOLS.

4 (a) PILOT PROGRAM.—The Secretary of Defense may

5 conduct a pilot program to assess the feasibility of using

6 private contractors to operate schools of the defense de7 pendents’ education system established under section

8 1402(a) of the Defense Dependents’ Education Act of

9 1978 (20 U.S.C. 921(a)).

10 (b) SELECTION OF SCHOOL FOR PROGRAM.—If the

11 Secretary of Defense conducts the pilot program, the Sec12 retary shall select one school of the defense dependents’

13 education system for participation in the program. Under

14 the pilot program, the Secretary shall provide for the oper15 ation of the school by an appropriate private contractor

16 for not less than one complete school year.

17 (c) REPORT.—Not later than 30 days after the end

18 of the first school year in which the pilot program is con19 ducted, the Secretary of Defense shall submit to Congress

20 a report on the results of the program. The report shall

21 include the recommendation of the Secretary with respect

22 to the extent to which other schools of the defense depend23 ents’ education system should be operated by private con24 tractors.
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1 SEC. 365. PILOT PROGRAM FOR EVALUATION OF IMPROVED

2 DEFENSE TRAVEL PROCESSING PROTO3 TYPES.

4 (a) PILOT PROGRAM REQUIRED; LOCATION.—(1)

5 The Secretary of Defense, acting through the Under Sec6 retary of Defense (Comptroller), shall conduct a pilot pro7 gram regarding two prototype tests of commercial travel

8 applications to determine the best approach for the De9 partment of Defense Travel System.

10 (2) The Secretary shall conduct the pilot program at

11 six military installations containing approximately equal

12 numbers of members of the Armed Forces. Two installa13 tions shall be selected from each military department.

14 (b) DESCRIPTION OF PROTOTYPE TESTS.—The two

15 respective tests shall be as follows:

16 (1) In this test, three installations (one for each

17 military department), with the Department of De18 fense acting as its own integrator, will implement

19 the travel processes proposed by the task force on

20 travel management chartered by the Secretary of

21 Defense in July 1994, and will offer specific busi22 ness opportunities in the services areas currently uti23 lized, namely reservations and credit card tech24 nologies.

25 (2) In this test, three installations (one for each

26 military department), will contract out their entire
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1 travel process, reserving only essential elements,

2 such as travel authorization, for performance by em3 ployees of the Department of Defense. Particular at4 tention will be focused on the ability of the vendor

5 to integrate all processes into a responsive, reason6 ably priced, uniform travel system.

7 (c) CONDUCT OF TESTS.—The two prototype tests

8 shall be conducted as follows:

9 (1) Each test must accommodate the guidelines

10 for travel management issued by the Under Sec11 retary of Defense (Comptroller).

12 (2) The tests must take no more than 60 days

13 to set up and be operational for one year.

14 (d) EVALUATION CRITERIA.—The Secretary of De15 fense shall establish evaluation criteria that include, at a

16 minimum—

17 (1) aligning travel policy and cost estimates

18 with mission at the point of reservation;

19 (2) using fully integrated solutions envisioned

20 by the Department of Defense travel reengineering

21 report of January 1995;

22 (3) matching credit card data and reservation

23 data with cost estimate data;

24 (4) matching data with a trip pro forma plan

25 to eliminate the need for further approvals; and
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1 (5) a responsive and flexible management infor2 mation system for managers at all levels to monitor

3 travel expenses throughout the year, budget accu4 rately for any future year, and assess cost and value

5 relationship regarding temporary duty travel for

6 each mission.

7 (e) PLAN FOR PROGRAM.—Before conducting the

8 pilot program, the Secretary of Defense shall develop a

9 plan for the program that addresses the following:

10 (1) The purposes of the prototype test, includ11 ing the objective of reducing the total costs of man12 aging travel by at least one-half.

13 (2) The methodology, duration, and anticipated

14 costs, including an arrangement whereby the con15 tractor would receive its agreed upon contract pay16 ment plus an additional negotiated amount not to

17 exceed 50 percent of the dollar savings achieved in

18 excess of the objective specified in paragraph (1).

19 (3) A specific citation to any provision or law,

20 rule, or regulation that, if not waived, would prohibit

21 the conduct of the program or any part of the pro22 gram.

23 (4) The evaluation mechanism required by sub24 section (d).
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1 (5) A provision for implementing the most suc2 cessful prototype Department-wide, based upon final

3 assessment of results.

4 SEC. 366. PILOT PROGRAM FOR PRIVATE OPERATION OF

5 CONSOLIDATED INFORMATION TECHNOLOGY

6 FUNCTIONS OF DEPARTMENT OF DEFENSE.

7 (a) PILOT PROGRAM REQUIRED.—(1) The Secretary

8 of Defense shall enter into discussions with private sector

9 entities for the purpose of issuing a request for proposal

10 to establish a pilot program to test and evaluate the cost

11 savings and efficiencies of private operation of all informa12 tion technology services for the Department of Defense

13 currently being consolidated in Defense MegaCenters. The

14 negotiations shall be conducted so that the request for pro15 posal may be issued within 60 days after the date of the

16 enactment of this Act.

17 (2) The minimum workload to be contracted out in

18 the pilot program shall be equivalent to the workload of

19 at least three Defense MegaCenters.

20 (b) ESTABLISHMENT AND DURATION.—The Sec21 retary of Defense shall implement private operations

22 under the pilot program within one year after the date

23 of the enactment of this Act. The pilot program shall oper24 ate for not more than a three-year period after implemen25 tation.
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1 (c) GOAL OF PROGRAM.—The goal of the pilot pro2 gram is to receive proposals from private sector entities

3 that, if implemented, would reduce operating costs to the

4 Department of Defense for information technology func5 tions by at least 35 percent in comparison to annual oper6 ating cost as of the date of the enactment of this Act.

7 (d) PLAN OF PROGRAM.—Before conducting the pilot

8 program, the Secretary of Defense shall develop a plan

9 for the program that addresses the following:

10 (1) The purposes of the program.

11 (2) The methodology, duration, and anticipated

12 costs of the program, including the cost of an ar13 rangement whereby the private contractor would re14 ceive the agreed upon contract payment plus an ad15 ditional negotiated amount not to exceed 50 percent

16 of the dollar savings achieved in excess of the goal

17 specified in subsection (c).

18 (3) A specific citation to any provisions of law,

19 rule, or regulation that, if not waived, would prohibit

20 the conduct of the program or any part of the pro21 gram.

22 (4) An evaluation mechanism for the program.

23 (5) A provision for expanding the program to

24 all information technology functions of the Depart-
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1 ment of Defense, based upon final assessment of the

2 results of the program.

3 (e) SUSPENSION OF FURTHER CONSOLIDATION.—

4 Until the completion of the pilot program and submission

5 of the final report required under subsection (f)(2), none

6 of the funds appropriated to the Department of Defense

7 for a fiscal year after fiscal year 1995 may be used to

8 reduce the number of data centers of the Department of

9 Defense to fewer than the 16 Defense MegaCenters identi10 fied as of the date of the enactment of this Act.

11 (f) REPORTING REQUIREMENTS.—(1) Not later than

12 six months after commencing contracting out activities

13 under the pilot program, the Secretary of Defense shall

14 submit to Congress an initial assessment report regarding

15 the implementation of the pilot program.

16 (2) The Secretary shall submit to Congress a final

17 assessment report, including a recommendation for ex18 panding the program as appropriate, not later than one

19 year after commencing contracting out activities under the

20 pilot program.

21 SEC. 367. INCREASED RELIANCE ON THE PRIVATE SECTOR.

22 (a) GENERAL RULE.—The Secretary of Defense shall

23 endeavor to carry out through an entity in the private sec24 tor any activity to provide a commercial product or service

25 for the Department of Defense if—
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1 (1) the product or service can be provided

2 through a source in the private sector; and

3 (2) an adequate competitive environment exists

4 to provide for economical accomplishment of the

5 function by the private sector.

6 (b) APPLICABILITY.—(1) Subsection (a) shall not be

7 construed to apply to any commercial product or service

8 with respect to which the Secretary of Defense determines

9 that—

10 (A) production, manufacture, or provision of

11 that product or service by the Government is nec12 essary for reasons of national security; or

13 (B) the product or service is so inherently gov14 ernmental in nature that it is in the public interest

15 to require production or performance, respectively,

16 by the Department of Defense.

17 (2) A determination under paragraph (1) shall be

18 made in accordance with regulations prescribed under sub19 section (c).

20 (c) REGULATIONS.—The Secretary of Defense shall

21 prescribe regulations for the purposes of this section. Such

22 regulations shall be prescribed in consultation with the Di23 rector of the Office of Management and Budget.

24 (d) REPORT.—(1) The Secretary of Defense shall

25 identify all activities of the Department of Defense that
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1 are carried out to provide commercial products or services

2 for the Department of Defense and that are carried out

3 by personnel of the Department of Defense (other than

4 activities specified by the Secretary pursuant to subsection

5 (b)).

6 (2) The Secretary shall transmit to Congress, not

7 later than April 15, 1996, a report on matters relating

8 to increased use of the private sector for the performance

9 of commercial functions for the Department of Defense.

10 The report shall include a list of all activities identified

11 under paragraph (1) and indicate, for each activity,

12 whether the Secretary proposes to convert the perform13 ance of such activity to performance by the private sector

14 and, if not, the reasons why.

15 (3) The report shall include—

16 (A) a description of the advantages and dis17 advantages of using contractor personnel, rather

18 than employees of the Department of Defense, to

19 perform functions of the Department that are not

20 essential to the warfighting mission of the Armed

21 Forces;

22 (B) specification of all legislative and regulatory

23 impediments to contracting those functions for pri24 vate performance; and
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1 (C) the views of the Secretary of Defense on

2 the desirability of terminating the applicability of

3 OMB Circular A–76 to the Department of Defense.

4 (4) The Secretary shall carry out paragraph (1) in

5 consultation with the Director of the Office of Manage6 ment and Budget and the Comptroller General of the

7 United States. In carrying out that paragraph, the Sec8 retary shall consult with, and seek the views of, represent9 atives of the private sector, including organizations rep10 resenting small businesses.

11 SEC. 368. PILOT PROGRAM FOR PRIVATE OPERATION OF

12 PAYROLL AND ACCOUNTING FUNCTIONS OF

13 NONAPPROPRIATED FUND INSTRUMENTAL14 ITIES.

15 (a) PILOT PROGRAM REQUIRED; LOCATION.—(1)

16 The Secretary of Defense, acting through the Under Sec17 retary of Defense (Comptroller), shall enter into discus18 sions with private sector entities for the purpose of issuing

19 a request for proposal to establish a pilot program to test

20 and evaluate the cost savings and efficiencies of private

21 operation of accounting and payroll function of

22 nonappropriated fund instrumentalities of the Department

23 of Defense. The negotiations shall be conducted so that

24 the request for proposal may be issued within 60 days

25 after the date of the enactment of this Act.
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1 (2) The pilot program shall consist of a major De2 partment of Defense Nonappropriated Fund Accounting

3 and Payroll function.

4 (b) GOAL OF PROGRAM.—The goal of the pilot pro5 gram is to receive proposals from private sector entities

6 that, if implemented, would reduce by at least 25 percent

7 the total costs to the Government for each pay event.

8 (c) PLAN OF PROGRAM.—Before conducting the pilot

9 program, the Secretary of Defense shall develop a plan

10 for the program that addresses the following:

11 (1) The purposes of the program.

12 (2) The methodology, duration, and anticipated

13 costs of the program, including the cost of an ar14 rangement whereby the private contractor would re15 ceive the agreed upon contract payment plus an ad16 ditional negotiated amount not to exceed 50 percent

17 of the dollar savings achieved in excess of the goal

18 specified in subsection (b).

19 (3) A specific citation to any provisions of law,

20 rule, or regulation that, if not waived, would prohibit

21 the conduct of the program or any part of the pro22 gram.

23 (4) An evaluation mechanism for the program.

24 (5) A provision for expanding the program to

25 all accounting and payroll functions of
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1 nonappropriated fund instrumentalities of the De2 partment of Defense, based upon final assessment of

3 the results of the program.

4 Subtitle G—Miscellaneous Reviews,

5 Studies, and Reports

6 SEC. 371. QUARTERLY READINESS REPORTS.

7 (a) IN GENERAL.—(1) Chapter 22 of title 10, United

8 States Code, is amended by adding at the end the follow9 ing new section:

10 ‘‘§ 452. Quarterly readiness reports

11 ‘‘(a) REQUIREMENT.—Not later than 30 days after

12 the end of each calendar-year quarter, the Secretary of

13 Defense shall submit to the Committee on Armed Services

14 of the Senate and the Committee on National Security of

15 the House of Representatives a report on military readi16 ness. The report for any quarter shall be based on assess17 ments that are provided during that quarter—

18 ‘‘(1) to any council, committee, or other body of

19 the Department of Defense (A) that has responsibil20 ity for readiness oversight, and (B) the membership

21 of which includes at least one civilian officer in the

22 Office of the Secretary of Defense at the level of As23 sistant Secretary of Defense or higher;
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1 ‘‘(2) by senior civilian and military officers of

2 the military departments and the commanders of the

3 unified and specified commands; and

4 ‘‘(3) as part of any regularly established proc5 ess of periodic readiness reviews for the Department

6 of Defense as a whole.

7 ‘‘(b) MATTERS TO BE INCLUDED.—Each such re8 port—

9 ‘‘(1) shall specifically describe identified readi10 ness problems or deficiencies and planned remedial

11 actions; and

12 ‘‘(2) shall include the key indicators and other

13 relevant data related to the identified problem area

14 or deficiency.

15 ‘‘(c) CLASSIFICATION OF REPORTS.—Reports under

16 this section shall be submitted in unclassified form and

17 may, as the Secretary determines necessary, also be sub18 mitted in classified form.’’.

19 (2) The table of sections at the beginning of such

20 chapter is amended by adding at the end the following

21 new item:

‘‘452. Quarterly readiness reports.’’.

22 (b) EFFECTIVE DATE.—Section 452 of title 10, United

23 States Code, as added by subsection (a), shall take effect

24 with the calendar-year quarter during which this Act is

25 enacted.
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1 SEC. 372. REPORTS REQUIRED REGARDING EXPENDITURES

2 FOR EMERGENCY AND EXTRAORDINARY EX3 PENSES.

4 Subsection (c) of section 127 of title 10, United

5 States Code, is amended to read as follows:

6 ‘‘(c)(1) In any fiscal year in which funds are ex7 pended under the authority of this section, the Secretary

8 of Defense shall submit a report of such expenditures on

9 a quarterly basis to the committees specified in paragraph

10 (3).

11 ‘‘(2) An obligation or expenditure in an amount of

12 $1,000,000 or more may not be made under the authority

13 of this section for any single transaction until the Sec14 retary of Defense has notified the committees specified in

15 paragraph (3).

16 ‘‘(3) The committees referred to in paragraphs (1)

17 and (2) are—

18 ‘‘(A) the Committee on Armed Services and the

19 Committee on Appropriations of the Senate; and

20 ‘‘(B) the Committee on National Security and

21 the Committee on Appropriations of the House of

22 Representatives.’’.
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1 SEC. 373. RESTATEMENT OF REQUIREMENT FOR SEMI2 ANNUAL REPORTS TO CONGRESS ON TRANS3 FERS FROM HIGH-PRIORITY READINESS AP4 PROPRIATIONS.

5 Section 361 of the National Defense Authorization

6 Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat.

7 2732) is amended to read as follows:

8 ‘‘SEC. 361. SEMIANNUAL REPORTS TO CONGRESS ON

9 TRANSFERS FROM HIGH-PRIORITY READI10 NESS APPROPRIATIONS.

11 ‘‘(a) ANNUAL REPORTS.—(1) During 1996 and

12 1997, the Secretary of Defense shall submit to the con13 gressional defense committees a report on transfers during

14 the preceding fiscal year from funds available for the

15 budget activities specified in subsection (d) (hereinafter in

16 this section referred to as ‘covered budget activities’). The

17 report each year shall be submitted not later than the date

18 in that year on which the President submits the budget

19 for the next fiscal year to Congress pursuant to section

20 1105 of title 31, United States Code.

21 ‘‘(2) Each such report shall include—

22 ‘‘(A) specific identification of each transfer dur23 ing the preceding fiscal year of funds available for

24 any covered budget activity, showing the amount of

25 the transfer, the covered budget activity from which
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1 the transfer was made, and the budget activity to

2 which the transfer was made; and

3 ‘‘(B) with respect to each such transfer, a

4 statement of whether that transfer was made to a

5 budget activity within a different appropriation than

6 the appropriation containing the covered budget ac7 tivity from which the transfer was made or to a

8 budget activity within the same appropriation.

9 ‘‘(b) MIDYEAR REPORTS.—On May 1 of each year

10 specified in subsection (a), the Secretary of Defense shall

11 submit to the congressional defense committees a report

12 providing the same information, with respect to the first

13 six months of the fiscal year in which the report is submit14 ted, that is provided in reports under subsection (a) with

15 respect to the preceding fiscal year.

16 ‘‘(c) MATTERS TO BE INCLUDED.—In each report

17 under this section, the Secretary shall include the follow18 ing:

19 ‘‘(1) With respect to each transfer of funds

20 identified in the report, a statement of the specific

21 reason for the transfer.

22 ‘‘(2) For each covered budget activity—

23 ‘‘(A) a statement, for the period covered by

24 the report, of—
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1 ‘‘(i) the total amount of transfers into

2 funds available for that activity;

3 ‘‘(ii) the total amount of transfers

4 from funds available for that activity; and

5 ‘‘(iii) the net amount of transfers into,

6 or out of, funds available for that activity;

7 and

8 ‘‘(B) a detailed explanation of the trans9 fers into, and out of, funds available for that

10 activity during the period covered by the report.

11 ‘‘(d) COVERED BUDGET ACTIVITIES.—The budget

12 activities to which this section applies are the following:

13 ‘‘(1) The budget activity groups (known as

14 ‘subactivities’) within the Operating Forces budget

15 activity of the annual Operation and Maintenance,

16 Army, appropriation that are designated as follows:

17 ‘‘(A) Combat Units.

18 ‘‘(B) Tactical Support.

19 ‘‘(C) Force-Related Training/Special Ac20 tivities.

21 ‘‘(D) Depot Maintenance.

22 ‘‘(E) JCS Exercises.

23 ‘‘(2) The budget activity groups (known as

24 ‘subactivities’) within the Operating Forces budget
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1 activity of the annual Operation and Maintenance,

2 Navy, appropriation that are designated as follows:

3 ‘‘(A) Mission and Other Flight Operations.

4 ‘‘(B) Mission and Other Ship Operations.

5 ‘‘(C) Fleet Air Training.

6 ‘‘(D) Ship Operational Support and Train7 ing.

8 ‘‘(E) Aircraft Depot Maintenance.

9 ‘‘(F) Ship Depot Maintenance.

10 ‘‘(3) The budget activity groups (known as

11 ‘subactivities’), or other activity, within the Operat12 ing Forces budget activity of the annual Operation

13 and Maintenance, Air Force, appropriation that are

14 designated or otherwise identified as follows:

15 ‘‘(A) Primary Combat Forces.

16 ‘‘(B) Primary Combat Weapons.

17 ‘‘(C) Global and Early Warning.

18 ‘‘(D) Air Operations Training.

19 ‘‘(E) Depot Maintenance.

20 ‘‘(F) JCS Exercises.’’.
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1 SEC. 374. MODIFICATION OF NOTIFICATION REQUIREMENT

2 REGARDING USE OF CORE LOGISTICS FUNC3 TIONS WAIVER.

4 Section 2464(b) of title 10, United States Code, is

5 amended by striking out paragraphs (3) and (4) and in6 serting in lieu thereof the following new paragraph:

7 ‘‘(3) A waiver under paragraph (2) may not take ef8 fect until the end of the 30-day period beginning on the

9 date on which the Secretary submits a report on the waiv10 er to the Committee on Armed Services and the Commit11 tee on Appropriations of the Senate and the Committee

12 on National Security and the Committee on Appropria13 tions of the House of Representatives.’’.

14 SEC. 375. LIMITATION ON DEVELOPMENT OR MODERNIZA15 TION OF AUTOMATED INFORMATION SYS16 TEMS OF DEPARTMENT OF DEFENSE PEND17 ING REPORT.

18 (a) OBLIGATIONS AND EXPENDITURES SUBJECT TO

19 REPORT.—Of the amounts appropriated pursuant to the

20 authorization of appropriations in section 301, the Sec21 retary of Defense may not obligate or expend amounts in

22 excess of $2,411,947,000 for the development and mod23 ernization of automated data processing programs of the

24 Department of Defense until after the end of the 30-day

25 period beginning on the date on which the Inspector Gen-
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1 eral of the Department of Defense submits to Congress

2 a report that—

3 (1) addresses the ongoing concerns about per4 formance measures and management controls re5 garding automated information systems;

6 (2) certifies that the Inspector General has

7 completed review of the Base Level System Mod8 ernization and the Sustaining Base Information Sys9 tem;

10 (3) certifies that the Inspector General has

11 completed the tasks identified in the review of

12 Standard Installation/Division Personnel System-3;

13 (4) provides complete functional economic anal14 yses for Automated System for Transportation

15 Data, Electronic Data Interchange, Flexible Com16 puter Integrated Manufacturing, Navy Tactical

17 Command Support System, and Defense Informa18 tion System Network;

19 (5) contains the resolution of the existing prob20 lems with the Defense Information System Network,

21 Continuous Acquisition and Life-Cycle Support, and

22 the Joint Computer-Aided Acquisition and Logistics

23 Support;

24 (6) provides the necessary waivers regarding

25 compelling military value, or provides complete func-
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1 tional economic analyses, regarding Air Force

2 Wargaming Center Air Force Command Exercise

3 System, Cheyenne Mountain Upgrade, Transpor4 tation Coordinator Automated Command and Con5 trol Information Systems, and Wing Command and

6 Control System; and

7 (7) certifies the termination of the Personnel

8 Electronic Record Management System or provides

9 justification for the continued need for the program.

10 (b) AUTOMATED INFORMATION SYSTEM DEFINED.—

11 For purposes of this section, the term ‘‘automated infor12 mation system’’ means an automated information system

13 of the Department of Defense subject to section 381 of

14 the National Defense Authorization Act for Fiscal Year

15 1995 (Public Law 103–337; 108 Stat. 2738; 10 U.S.C.

16 113 note).

17 SEC. 376. REPORT REGARDING REDUCTION OF COSTS AS18 SOCIATED WITH CONTRACT MANAGEMENT

19 OVERSIGHT.

20 (a) REPORT REQUIRED.—Not later than April 1,

21 1996, the Comptroller General of the United States shall

22 submit to Congress a report identifying methods to reduce

23 the cost to the Department of Defense of management

24 oversight of contracts in connection with major defense ac25 quisition programs.
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1 (b) MAJOR DEFENSE ACQUISITION PROGRAMS DE2 FINED.—For purposes of this section, the term ‘‘major de3 fense acquisition programs’’ has the meaning given that

4 term in section 2430(a) of title 10, United States Code.

5 Subtitle H—Other Matters

6 SEC. 381. PROHIBITION ON CAPITAL LEASE FOR DEFENSE

7 BUSINESS MANAGEMENT UNIVERSITY.

8 None of the funds appropriated to the Department

9 of Defense for fiscal year 1996 may be used to enter into

10 any lease with respect to the Center for Financial Manage11 ment Education and Training of the Defense Business

12 Management University if the lease would be treated as

13 a capital lease for budgetary purposes.

14 SEC. 382. AUTHORITY OF INSPECTOR GENERAL OVER IN15 VESTIGATIONS OF PROCUREMENT FRAUD.

16 (a) AUTHORITY.—Section 141 of title 10, United

17 States Code, is amended by adding at the end the follow18 ing new subsection:

19 ‘‘(c) The Inspector General shall be responsible for

20 and shall oversee all investigations of procurement fraud

21 within the Department of Defense.’’.

22 (b) IMPLEMENTATION.—The Secretary of Defense

23 shall take such action as may be necessary to implement

24 the amendment made by subsection (a).
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1 SEC. 383. PROVISION OF EQUIPMENT AND FACILITIES TO

2 ASSIST IN EMERGENCY RESPONSE ACTIONS.

3 Section 372 of title 10, United States Code, is

4 amended by adding at the end the following new sentence:

5 ‘‘Assistance provided under this section may include train6 ing facilities, sensors, protective clothing, antidotes, and

7 other materials and expertise of the Department of De8 fense appropriate for use by a Federal, State, or local law

9 enforcement or emergency response agency in preparing

10 for or responding to an emergency involving chemical or

11 biological agents if the Secretary determines that the ma12 terials or services to be provided are not reasonably avail13 able from another source.’’.

14 SEC. 384. CONVERSION OF THE CIVILIAN MARKSMANSHIP

15 PROGRAM TO A FEDERALLY CHARTERED

16 NONPROFIT CORPORATION.

17 (a) CORPORATION.—

18 (1) ESTABLISHMENT.—There is hereby estab19 lished a private nonprofit corporation, to be known

20 as the Corporation for the Promotion of Rifle Prac21 tice and Firearms Safety (in this section referred to

22 as the ‘‘Corporation’’), for the promotion of rifle

23 practice and firearms safety.

24 (2) DUTIES.—The Corporation shall be respon25 sible for the supervision, oversight, and control of

26 the Civilian Marksmanship Program.
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1 (3) MEMBERSHIP.—The Corporation shall have

2 a board of directors consisting of nine members.

3 Each member shall serve for a two-year term, except

4 for four members of the initial board of directors,

5 who shall serve a one-year term, and shall be eligible

6 for reappointment. The private members of the Na7 tional Board for the Promotion of Rifle Practice, as

8 in existence on the day before the date of the enact9 ment of this Act, shall forward nominations for

10 membership on the initial board of directors of the

11 Corporation to the governing body designated by the

12 United States Olympic Committee for international

13 rifle and pistol competition (in this section referred

14 to as the ‘‘USOC designee’’) not later than 10 days

15 after the date of the enactment of this Act. Unless

16 the nomination is rejected by the USOC designee by

17 written notification to the existing members of the

18 National Board within 30 days of the nomination,

19 the nominee shall be seated as a member of the

20 board of directors of the Corporation. Members of

21 the board of directors shall nominate individuals to

22 fill subsequent vacancies within 10 days of the va23 cancy, with a right of rejection reserved to the

24 USOC designee by written notification to the Cor25 poration within 30 days of each nomination.
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1 (4) DIRECTOR OF CIVILIAN MARKSMANSHIP

2 AND STAFF.—The Corporation shall appoint a per3 son to serve as the Director of Civilian Marksman4 ship, who shall be responsible for the day to day op5 erations of the Corporation and the Civilian Marks6 manship Program. Subject to the approval of the

7 Corporation, the Director and civilian employees of

8 the Corporation may enroll or remain enrolled with9 out penalty or loss of credit in all pension and bene10 fits programs available to civilian employees of the

11 Department of Defense, the employer’s contribution

12 to be paid by the Corporation.

13 (b) SOLICITATION AND RECEIPT OF FUNDS.—

14 (1) IN GENERAL.—The Corporation and the Di15 rector may solicit, accept, hold, use, and dispose of,

16 in furtherance of the activities of the Civilian Marks17 manship Program, donations of money, property,

18 and services received by gift, devise, bequest, or oth19 erwise.

20 (2) USE OF PROCEEDS.—Amounts collected by

21 the Civilian Marksmanship Program, including the

22 proceeds from the sale of arms, ammunition, targets

23 and other supplies and appliances, shall be used to

24 carry out the Civilian Marksmanship Program.
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1 (3) TRANSFER OF FUNDS.—Amounts available

2 to the National Board for the Promotion of Rifle

3 Practice as of the date of enactment of this Act

4 from rifle sales programs and from fees in connec5 tion with competitions sponsored by that board shall

6 be transferred to the Corporation to carry out the

7 Civilian Marksmanship Program.

8 (4) FEES CHARGED.—The Corporation may im9 pose such reasonable fees as are necessary to cover

10 the direct and indirect costs to the Corporation, for

11 persons and gun clubs participating in any program

12 or competition conducted under the Civilian Marks13 manship Program for the promotion of rifle practice

14 and firearms safety among civilians.

15 (c) RESPONSIBILITIES.—The Corporation, through

16 the Civilian Marksmanship Program, shall provide for—

17 (1) the operation and maintenance of indoor

18 and outdoor rifle ranges and their accessories and

19 appliances;

20 (2) the instruction of citizens of the United

21 States in marksmanship, and the employment of

22 trained instructors for the purpose;

23 (3) the promotion of practice in the use of ri24 fled arms and the maintenance and management of
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1 matches and competitions in the use of those arms;

2 and

3 (4) the award to competitors of trophies, prizes,

4 badges, and other insignia.

5 (d) YOUTH ACTIVITIES.—The Corporation, through

6 the Civilian Marksmanship Program, shall give priority to

7 activities that benefit firearms safety training and com8 petition for youth and reach as many youth participants

9 as possible.

10 (e) ELIGIBILITY.—

11 (1) AFFIDAVIT.—Before a person may partici12 pate in any activity sponsored or supported by the

13 Civilian Marksmanship Program, the person shall be

14 required to certify by affidavit the following:

15 (A) The person has not been convicted of

16 any violation of section 922 of title 18, United

17 States Code. The Director may require any per18 son to attach certification from the appropriate

19 State or Federal law enforcement agency to the

20 person’s affidavit.

21 (B) The person is not a member of any or22 ganization that advocates the violent overthrow

23 of the United States Government.

24 (2) EFFECT OF CONVICTION.—A person who

25 has been convicted of a violation of section 922 of
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1 title 18, United States Code, shall not be eligible to

2 participate in any activity sponsored or supported by

3 the Corporation through the Civilian Marksmanship

4 Program.

5 (3) FURTHER LIMITATIONS ON PARTICIPA6 TION.—The Director may limit participation as nec7 essary to ensure quality instruction in the rifled

8 arms, participant safety, and firearms security.

9 (f) ARMS AND AMMUNITION.—

10 (1) ISSUANCE.—The Corporation may issue,

11 without cost, the arms, ammunition (including cali12 ber .22 and caliber .30 ammunition), targets, and

13 other supplies and appliances necessary for activities

14 related to the Civilian Marksmanship Program. Issu15 ance shall be made only to gun clubs under the di16 rection of the Corporation that provide training in

17 the use of rifled arms to youth, the Boy Scouts of

18 America, 4–H Clubs, Future Farmers of America,

19 and other youth-oriented organizations for training

20 and competition. The Corporation shall be respon21 sible for ensuring adequate oversight and account22 ability for these arms and ammunition.

23 (2) SALE TO CLUBS.—The Corporation may sell

24 at fair market value caliber .30 rifles and ammuni25 tion for caliber .30 rifles, .22 rifles, and air rifles to
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1 gun clubs that are under the direction of the Cor2 poration and provide training in the use of rifled

3 arms. In lieu of sales, the Civilian Marksmanship

4 Program may loan caliber .30 rifles, .22 rifles, and

5 air rifles to such clubs, but the Corporation is re6 sponsible for ensuring the oversight and accountabil7 ity of such rifles.

8 (3) SALE TO INDIVIDUALS.—The Corporation

9 may sell at fair market value caliber .30 rifles, am10 munition, targets, and other supplies and appliances

11 necessary for target practice to citizens of the Unit12 ed States over 18 years of age who are members of

13 a gun club under the direction of the Corporation.

14 Such sales are subject to applicable Federal, State,

15 and local laws. In addition to any other requirement,

16 the Corporation shall provide for a criminal records

17 check of the person with appropriate Federal and

18 State law enforcement agencies, and the Corporation

19 shall not sell weapons or ammunition to a person

20 who has been convicted of a felony or Federal or

21 State firearms violation.

22 (g) OTHER DUTIES.—The Corporation shall provide

23 for or assist in providing for—

24 (1) the procurement of necessary supplies, ap25 pliances, trophies, prizes, badges, and other insignia,
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1 clerical and other services, and labor to carry out the

2 Civilian Marksmanship Program; and

3 (2) transportation of employees, instructors,

4 and civilians to give or receive instruction or to as5 sist or engage in practice in the use of rifled arms,

6 and the transportation and subsistence, or an allow7 ance in lieu of subsistence, of members of teams au8 thorized by the Corporation to participate in

9 matches or competitions in the use of rifled arms.

10 (h) AUTHORITY OF SECRETARY OF DEFENSE TO

11 SELL SURPLUS ARMS AND AMMUNITION.—Subject to sec12 tion 1208 of the National Defense Authorization Act for

13 Fiscal Years 1990 and 1991 (Public Law 101–189; 10

14 U.S.C. 372 note), relating to the transfer of excess small

15 arms and ammunition to support Government counter16 drug activities, the Secretary of the Army shall reserve

17 for the Civilian Marksmanship Program all remaining M–

18 1 Garand rifles, and ammunition for such rifles, held by

19 the Army on the date of the enactment of this Act. After

20 such date, the Secretary of the Army shall cease demili21 tarization of remaining M–1 Garand rifles in the Army

22 inventory unless such rifles are determined to be irrep23 arable by the Defense Logistics Agency. Any transfers of

24 arms and ammunition to the Corporation under this sec25 tion shall be made without cost to the Civilian Marksman-
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1 ship Program, except that the Corporation shall assume

2 the cost of preparation and transportation of the trans3 ferred rifles.

4 (i) LOGISTICAL SUPPORT TO CIVILIAN MARKSMAN5 SHIP PROGRAM.—The Secretary of Defense, under such

6 regulations as the Secretary may prescribe, may provide

7 logistical support to the Civilian Marksmanship Program,

8 for competitions and other activities conducted by the Cor9 poration. The Secretary shall recoup only the incremental

10 cost for this support from the Corporation. The National

11 Matches may continue to be held at the current Depart12 ment of Defense facilities as part of the support author13 ized under this section.

14 (j) REPEAL.—(1) Sections 4307, 4308, 4310, and

15 4311 of title 10, United States Code, are repealed.

16 (2) The table of sections at the beginning of chapter

17 401 of such title is amended by striking out the items re18 lating to sections 4307, 4308, 4310, and 4311.

19 SEC. 385. PERSONNEL SERVICES AND LOGISTICAL SUP20 PORT FOR CERTAIN ACTIVITIES HELD ON

21 MILITARY INSTALLATIONS.

22 Section 2544 of title 10, United States Code, is

23 amended—

24 (1) by redesignating subsection (g) as sub25 section (h); and
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1 (2) by inserting after subsection (f) the follow2 ing new subsection:

3 ‘‘(g) In the case of a Boy Scout Jamboree held on

4 a United States military installation, the Secretary of De5 fense may provide personnel services and logistical support

6 at the military installation in addition to the support au7 thorized under subsections (a) and (d).’’.

8 SEC. 386. RETENTION OF MONETARY AWARDS.

9 (a) MONETARY AWARDS.—Chapter 155 of title 10,

10 United States Code, is amended by adding at the end the

11 following new section:

12 ‘‘§ 2610. Acceptance of monetary awards from com13 petition for excellence

14 ‘‘(a) ACCEPTANCE AUTHORIZED.—The Secretary of

15 Defense may accept any monetary award given to the De16 partment of Defense by a nongovernmental entity as an

17 award in competition recognizing excellence or innovation

18 in providing services or administering programs.

19 ‘‘(b) DISPOSITION OF AWARDS.—(1) Subject to para20 graph (2), a monetary award accepted under subsection

21 (a) shall be credited to the appropriation supporting the

22 operation of the command, installation, or other activity

23 that is recognized for the award and, in such amount as

24 is provided in advance in appropriation Acts, shall be
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1 available for the same purposes as the underlying appro2 priation.

3 ‘‘(2) Subject to such limitations as may be provided

4 in appropriation Acts, the Secretary of Defense may dis5 burse an amount not to exceed 50 percent of the monetary

6 award to persons who are responsible for the excellence

7 or innovation recognized by the award. A person may not

8 receive more than $10,000 under the authority of this

9 paragraph from any monetary reward.

10 ‘‘(c) INCIDENTAL EXPENSES.—Subject to such limi11 tations as may be provided in appropriation Acts, appro12 priations available to the Department of Defense may be

13 used to pay incidental expenses incurred to compete in a

14 competition described in subsection (a) or to accept a

15 monetary award under this section.

16 ‘‘(d) REGULATIONS AND REPORTING.—(1) The Sec17 retary of Defense shall prescribe regulations to determine

18 the disposition of any monetary awards accepted under

19 this section and the payment of incidental expenses under

20 subsection (c).

21 ‘‘(2) The Secretary of Defense shall submit to Con22 gress an annual report describing the disposition of any

23 monetary awards accepted under this section and the pay24 ment of any incidental expenses under this subsection

25 (c).’’.
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1 (b) CLERICAL AMENDMENT.—The table of sections

2 at the beginning of such chapter is amended by adding

3 at the end the following new item:

‘‘2610. Acceptance of monetary awards from competition for excellence.’’.

4 SEC. 387. CIVIL RESERVE AIR FLEET.

5 Section 9512 of title 10, United States Code, is

6 amended by striking out ‘‘full’’ before ‘‘Civil Reserve Air

7 Fleet’’ in subsections (b)(2) and (e).

8 SEC. 388. PERMANENT AUTHORITY REGARDING USE OF

9 PROCEEDS FROM SALE OF LOST, ABAN10 DONED, AND UNCLAIMED PERSONAL PROP11 ERTY AT CERTAIN INSTALLATIONS.

12 (a) CONVERSION OF EXISTING DEMONSTRATION

13 PROJECT.—Section 343 the National Defense Authoriza14 tion Act for Fiscal Years 1992 and 1993 (Public Law

15 102–190; 105 Stat. 1343) is amended by striking out sub16 sections (d) and (e) and inserting in lieu thereof the fol17 lowing new subsection:

18 ‘‘(d) APPLICATION OF SPECIAL RULE.—The special

19 rule provided by subsection (a) shall apply with respect

20 to the disposal under section 2575 of title 10, United

21 States Code, of property found on the military installa22 tions referred to in subsection (b).’’.

23 (b) CONFORMING AMENDMENTS.—Subsection (a) of

24 such section is amended—
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1 (1) by striking out ‘‘DEMONSTRATION

2 PROJECT’’ in the subsection heading and inserting

3 in lieu thereof ‘‘SPECIAL RULE REGARDING PRO4 CEEDS’’; and

5 (2) by striking out ‘‘demonstration project’’ and

6 inserting in lieu thereof ‘‘permanent program’’.

7 SEC. 389. TRANSFER OF EXCESS PERSONAL PROPERTY TO

8 SUPPORT LAW ENFORCEMENT ACTIVITIES.

9 Section 1208(a)(1)(A) of the National Defense Au10 thorization Act for Fiscal Years 1990 and 1991 (P.L.

11 101–189; 10 U.S.C. 372 note) is amended by striking out

12 ‘‘counter-drug activities’’ and inserting in lieu thereof ‘‘law

13 enforcement activities, including counter-drug activities’’.

14 SEC. 390. DEVELOPMENT AND IMPLEMENTATION OF INNO15 VATIVE PROCESSES TO IMPROVE OPERATION

16 AND MAINTENANCE.

17 Of the amounts authorized to be appropriated under

18 section 301(5), $350,000,000 shall be available to the Sec19 retary of Defense for the development or acquisition of

20 information technologies and reengineered functional proc21 esses, such as in the areas of personnel management, fi22 nance, and depot-level maintenance, for implementation

23 within the Department of Defense. Before obligating or

24 expending funds under this section for an information

25 technology or reengineered functional process, the Sec-
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1 retary shall certify to Congress that the information tech2 nology or reengineered functional process—

3 (1) demonstrates a rate of return, within three

4 years, of 300 percent compared to the investment

5 made under this section; or

6 (2) would have a measurable effect upon the ef7 fectiveness of the readiness of the Armed Forces or

8 the operation and management of the Department of

9 Defense.

10 SEC. 391. REVIEW OF USE OF DEFENSE LOGISTICS AGENCY

11 TO MANAGE INVENTORY CONTROL POINTS.

12 (a) REVIEW OF CONSOLIDATION OF INVENTORY

13 CONTROL POINTS.—The Secretary of Defense shall con14 duct a review regarding the consolidation under the De15 fense Logistics Agency of all inventory control points, in16 cluding the inventory management and acquisition of

17 depot-level repairables.

18 (b) SUBMISSION OF RESULTS.—Not later than

19 March 31, 1996, the Secretary shall complete the review

20 and submit a report to the congressional defense commit21 tees describing the results the review.

22 (c) LIMITATION ON IMPLEMENTATION OF MATERIEL

23 MANAGEMENT STANDARD SYSTEM.—Pending the submis24 sion of the report, the Secretary of Defense may not pro25 ceed with the implementation of the automated data proc-
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1 essing program of the Department of Defense known as

2 the Materiel Management Standard System.

3 SEC. 392. SALE OF 50 PERCENT OF CURRENT WAR RESERVE

4 FUEL STOCKS.

5 (a) SALE REQUIRED.—Notwithstanding section

6 2390(a) of title 10, United States Code, the Secretary of

7 Defense shall reduce war reserve fuel stocks of the Depart8 ment of Defense to a level equal to 50 percent of the level

9 of such stocks on January 1, 1995. The Secretary shall

10 achieve the reduction through consumption of fuel in the

11 Department of Defense and, if necessary, sales of fuel out12 side the Department to the highest qualified bidders.

13 (b) SUBSEQUENT FUEL PURCHASES.—After the date

14 of the enactment of this Act, fuel purchases for the De15 partment of Defense shall be made on the basis of the

16 actual fuel needs of the Department.

17 (c) REPORT.—Not later than March 1, 1996, the

18 Secretary of Defense shall submit to Congress a report

19 describing the manner in which the reduction of war re20 serve fuel stocks is to be made and the time period within

21 which the reduction is to be achieved.

22 (d) SUSPENSION OF REDUCTION; INCREASES.—The

23 Secretary of Defense may suspend the reduction of war

24 reserve fuel stocks, and in fact increase such stocks as

25 otherwise authorized by law, in the event of a national
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1 emergency or to advance the national security interests of

2 the United States.

3 SEC. 393. MILITARY CLOTHING SALES STORES, REPLACE4 MENT SALES.

5 (a) IN GENERAL.—(1) Chapter 651 of title 10, Unit6 ed States Code, is amended by adding at the end the fol7 lowing new section:

8 ‘‘§ 7606. Subsistence and other supplies: members of

9 armed forces; veterans; executive or mili10 tary departments and employees; prices

11 ‘‘(a) The branch, office, or officer designated by the

12 Secretary of the Navy shall procure and sell, for cash or

13 credit—

14 ‘‘(1) articles specified by the Secretary of the

15 Navy or a person designated by the Secretary, to

16 members of the Navy and Marine Corps; and

17 ‘‘(2) items of individual clothing and equipment

18 to members of the Navy and Marine Corps, under

19 such restrictions as the Secretary may prescribe.

20 An account of sales on credit shall be kept and the amount

21 due reported to any branch office, or officer designated

22 by the Secretary. Except for articles and items acquired

23 through the use of working capital funds under section

24 2208 of this title, sales of articles shall be at cost, and

25 sales of individual clothing and equipment shall be at aver-
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1 age current prices, including overhead, as determined by

2 the Secretary.

3 ‘‘(b) The branch, office, or officer designated by the

4 Secretary shall sell subsistence supplies to members of

5 other armed forces at the prices at which like property

6 is sold to members of the Navy and Marine Corps.

7 ‘‘(c) The branch, office, or officer designated by the

8 Secretary may sell serviceable supplies, other than subsist9 ence supplies, to members of other armed forces at the

10 prices at which like property is sold to members of the

11 Navy and Marine Corps.

12 ‘‘(d) A person who has been discharged honorably or

13 under honorable conditions from the Army, Navy, Air

14 Force, or Marine Corps and who is receiving care and

15 medical treatment from the Public Health Service or the

16 Department of Veterans Affairs may buy subsistence sup17 plies and other supplies, except articles of uniform, at the

18 prices at which like property is sold to members of the

19 Navy and Marine Corps.

20 ‘‘(e) Under such conditions as the Secretary may pre21 scribe, exterior articles of uniform may be sold to a person

22 who has been discharged from the Navy or Marine Corps

23 honorably or under honorable conditions at the prices at

24 which like articles are sold to members of the Navy or
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1 Marine Corps. This subsection does not modify section

2 772 or 773 of this title.

3 ‘‘(f) Under regulations prescribed by the Secretary,

4 payment for subsistence supplies shall be made in cash

5 or by commercial credit.

6 ‘‘(g) The Secretary may provide for the procurement

7 and sale of stores designated by him to such civilian offi8 cers and employees of the United States, and such other

9 persons, as he considers proper—

10 ‘‘(1) at military installations outside the United

11 States (provided such sales conform with host nation

12 support agreements); and

13 ‘‘(2) at military installations inside the United

14 States where the Secretary determines that it is im15 practicable for those civilian officers, employees, and

16 persons to obtain those stores from commercial en17 terprises without impairing the efficient operation of

18 military activities.

19 However, sales to such civilian officers and employees in20 side the United States may be only to those who reside

21 within military installations.

22 ‘‘(h) Appropriations for subsistence of the Navy or

23 Marine Corps may be applied to the purchase of subsist24 ence supplies for sale to members of the Navy and Marine
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1 Corps on active duty for the use of themselves and their

2 families.’’.

3 (2) The table of sections at the beginning of such

4 chapter is amended by adding at the end the following

5 new item:

‘‘7606. Subsistence and other supplies: members of armed forces; veterans; executive or military departments and employees; prices.’’.

6 (b) CONFORMING AMENDMENTS FOR OTHER ARMED

7 FORCES.—(1) Section 4621(f) of such title is amended by

8 inserting before the period at the end the following: ‘‘or

9 by commercial credit’’.

10 (2) Section 9621(f) of such title is amended by insert11 ing before the period at the end the following: ‘‘or by com12 mercial credit’’.

13 SEC. 394. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES

14 THAT BENEFIT DEPENDENTS OF MEMBERS

15 OF THE ARMED FORCES AND DEPARTMENT

16 OF DEFENSE CIVILIAN EMPLOYEES.

17 (a) CONTINUATION OF DEPARTMENT OF DEFENSE

18 PROGRAM.—Of the amounts authorized to be appro19 priated in section 301(5)—

20 (1) $50,000,000 shall be available for providing

21 educational agencies assistance (as defined in sub22 section (d)(1)) to local educational agencies; and
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1 (2) $8,000,000 shall be available for making

2 educational agencies payments (as defined in sub3 section (d)(2)) to local educational agencies.

4 (b) NOTIFICATION OF AVAILABILITY OF FUNDS.—

5 Not later than June 30, 1996—

6 (1) the Secretary of Defense shall notify each

7 local educational agency that is eligible for edu8 cational agencies assistance for fiscal year 1996 of

9 that agency’s eligibility for such assistance and the

10 amount of such assistance for which that agency is

11 eligible; and

12 (2) the Secretary of Education shall notify each

13 local educational agency that is eligible for an edu14 cational agencies payment for fiscal year 1996 of

15 that agency’s eligibility for such payment and the

16 amount of the payment for which that agency is eli17 gible.

18 (c) DISBURSEMENT.—The Secretary of Defense

19 (with respect to funds made available under subsection

20 (a)(1)) and the Secretary of Education (with respect to

21 funds made available under subsection (a)(2)) shall dis22 burse such funds not later than 30 days after the date

23 on which notification to the eligible local education agen24 cies is provided pursuant to subsection (b).

25 (d) DEFINITIONS.—For purposes of this section:
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1 (1) The term ‘‘educational agencies assistance’’

2 means assistance authorized under subsection (b) of

3 section 386 of the National Defense Authorization

4 Act for Fiscal Year 1993 (Public Law 102–484; 20

5 U.S.C. 238 note).

6 (2) The term ‘‘educational agencies payments’’

7 means payments authorized under subsection (d) of

8 that section.

9 (e) REDUCTION IN IMPACT THRESHOLD.—Sub10 section (c)(1) of section 386 of the National Defense Au11 thorization Act for Fiscal Year 1993 (Public Law 102–

12 484; 20 U.S.C. 238 note) is amended—

13 (1) by striking out ‘‘30 percent’’ and inserting

14 in lieu thereof ‘‘20 percent’’; and

15 (2) by striking out ‘‘counted under subsection

16 (a) or (b) of section 3 of the Act of September 30,

17 1950 (Public Law 874, Eighty-first Congress; 20

18 U.S.C. 238)’’.

19 (f) EXTENSION OF REPORTING REQUIREMENT.—

20 Subsection (e)(1) of section 386 of the National Defense

21 Authorization Act for Fiscal Year 1993 (Public Law 102–

22 484; 20 U.S.C. 238 note) is amended by striking out ‘‘and

23 1995’’ and inserting in lieu thereof ‘‘1995, and 1996’’.

24 (g) TECHNICAL AMENDMENTS TO CORRECT REF25 ERENCES TO REPEALED LAW.—Section 386 of the Na-
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1 tional Defense Authorization Act for Fiscal Year 1993

2 (Public Law 102–484; 20 U.S.C. 238 note) is amended—

3 (1) in subsection (d), by striking out ‘‘under

4 section 3’’ and all that follows through ‘‘of such sub5 section that result from’’ and inserting in lieu there6 of ‘‘payments under section 8003(e) of the Elemen7 tary and Secondary Education Act of 1965 (20

8 U.S.C. 7703(e)) as a result of’’;

9 (2) in subsection (e)(2)(C), by inserting after

10 ‘‘et seq.),’’ the following: ‘‘title VIII of the Elemen11 tary and Secondary Education Act of 1965 (20

12 U.S.C. 7701 et seq.),’’;

13 (3) in subsection (e)(2)(D), by striking out

14 ‘‘under subsections (a) and (b) of section 3 of such

15 Act (20 U.S.C. 238)’’; and

16 (4) in subsection (h)—

17 (A) in paragraph (1), by striking out ‘‘sec18 tion 1471(12) of the Elementary and Secondary

19 Education Act of 1965 (20 U.S.C. 2891(12))’’

20 and inserting in lieu thereof ‘‘section 8013(9) of

21 the Elementary and Secondary Education Act

22 of 1965 (20 U.S.C. 7713(9))’’; and

23 (B) by striking out paragraph (3) and in24 serting in lieu thereof the following new para25 graph:
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1 ‘‘(3) The term ‘State’ does not include Puerto

2 Rico, Wake Island, Guam, American Samoa, the

3 Northern Mariana Islands, or the Virgin Islands.’’.

4 SEC. 395. CORE LOGISTICS CAPABILITIES OF THE DEPART5 MENT OF DEFENSE.

6 (a) IN GENERAL.—Chapter 146 of title 10, United

7 States Code, is amended by adding at the end the follow8 ing new section:

9 ‘‘§ 2473. Depot-level maintenance and repair work10 load

11 ‘‘(a) IMPORTANCE OF DEPOT-LEVEL MAINTENANCE

12 AND REPAIR CORE CAPABILITIES.—It is essential for the

13 national defense that the United States maintain a core

14 depot-level maintenance and repair capability (including

15 skilled personnel, equipment, and facilities) within facili16 ties owned and operated by the Department of Defense

17 that—

18 ‘‘(1) is of the proper size (A) to ensure a ready

19 and controlled source of technical competence and

20 repair and maintenance capability necessary to meet

21 the requirements of the National Military Strategy

22 and other requirements for responding to military

23 contingencies, and (B) to provide for rapid aug24 mentation in time of emergency; and
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1 ‘‘(2) is assigned sufficient workload to ensure

2 cost efficiency and proficiency in time of peace.

3 ‘‘(b) DETERMINATION OF CORE DEPOT MAINTE4 NANCE ACTIVITIES.—(1) The Secretary of each military

5 department shall identify those depot-level maintenance

6 and repair activities under that Secretary’s jurisdiction

7 that are necessary to ensure for that military department

8 the depot-level maintenance and repair capability de9 scribed in subsection (a) and as required by section 2464

10 of this title.

11 ‘‘(2) The Secretary of each military department shall

12 prescribe the procedures to be used to quantify the re13 quirements necessary to support the capability described

14 in subsection (a).

15 ‘‘(c) PERFORMANCE OF WORKLOAD THAT SUPPORTS

16 DEPOT-LEVEL MAINTENANCE AND REPAIR CORE CAPA17 BILITIES.—The Secretary of each military department

18 shall require the performance of depot-level maintenance

19 and repair of activities identified under subsection (b) at

20 organic Department of Defense maintenance depots at lev21 els sufficient to ensure that the Department of Defense

22 maintains the core depot-level maintenance and repair ca23 pability described in subsection (a).

24 ‘‘(d) INTERSERVICING OF WORKLOAD.—The Sec25 retary of Defense, after consultation with the Secretaries
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1 of the military departments, may transfer workload that

2 supports the core capability described in subsection (a)

3 from one military department to another. The Secretary

4 of Defense shall use merit-based criteria in evaluating

5 such transfers.

6 ‘‘(e) SOURCE OF REPAIR FOR OTHER DEPOT-LEVEL

7 WORKLOADS.—In the case of depot-level maintenance and

8 repair workloads in excess of the workload required pursu9 ant to subsection (c) to be performed at organic Depart10 ment of Defense depots, the Secretary of Defense, after

11 consultation with the Secretaries of the military depart12 ments, may provide for the performance of those work13 loads through sources selected by competition. The Sec14 retary of Defense shall use competition between private

15 firms and organic Department of Defense depots for any

16 such workload when the Secretary determines there are

17 less than two qualified sources of supply among private

18 firms for the performance of that specific depot-level

19 maintenance workload.

20 ‘‘(f) DEPOT-LEVEL WORKLOAD COMPETITIONS.—In

21 any competition under this section for a depot-level work22 load (whether among private firms or between Department

23 of Defense activities and private firms), bids from any en24 tity participating in the competition shall accurately dis25 close all costs properly and consistently derived from ac-
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1 counting systems and practices that comply with laws,

2 policies, and standards applicable to that entity. In any

3 competition between Department of Defense activities and

4 private firms, the Government calculation for the cost of

5 performance of the function by Department of Defense ci6 vilian employees shall be based on an estimate using the

7 most efficient and cost effective manner for performance

8 of such function by Department of Defense civilian em9 ployees.

10 ‘‘(g) ANNUAL REPORT.—Not later than March 1 of

11 each year, the Secretary of Defense shall submit to Con12 gress a report specifying depot maintenance core capabil13 ity requirements determined in accordance with the proce14 dures established to comply with subsection (b)(2) and the

15 planned amount of workload to be accomplished in the or16 ganic depots of each military department in support of

17 those requirements for the following fiscal year. The re18 port shall identify the planned amount of workload meas19 ured by direct labor hours and by amounts expended and

20 shall be shown separately for each commodity group.’’.

21 (b) REPEAL OF 60/40 REQUIREMENT AND REQUIRE22 MENT RELATING TO COMPETITION.—Effective December

23 31, 1996—
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1 (1) section 2466 of title 10, United States

2 Code, is repealed unless Congress takes further ac3 tion regarding such repeal; and

4 (2) section 2469 of title 10, United States

5 Code, is repealed unless Congress takes further ac6 tion regarding such repeal.

7 (c) INTERIM EXCLUSION OF LARGE MAINTENANCE

8 AND REPAIR PROJECTS FROM 60/40 REQUIREMENT.—

9 Effective on the date of the enactment of this Act, section

10 2466(d) of title 10, United States Code, is amended—

11 (1) by striking out ‘‘EXCEPTION.—’’ and insert12 ing in lieu thereof ‘‘EXCEPTIONS.—(1)’’; and

13 (2) by adding at the end the following new

14 paragraph:

15 ‘‘(2) If a maintenance or repair project for a single

16 item that is contracted for performance by non-Federal

17 Government personnel accounts for 5 percent or more of

18 the funds made available in a fiscal year to a military de19 partment or a Defense Agency for depot-level maintenance

20 and repair workload, the project and the funds necessary

21 for the project shall not be considered when applying the

22 percentage limitation specified in subsection (a) to that

23 military department or Defense Agency.’’.

24 (d) CLERICAL AMENDMENTS.—The table of sections

25 at the beginning of chapter 146 of such title is amended—
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1 (1) effective December 31, 1996, by striking

2 out the items relating to sections 2466 and 2469;

3 and

4 (2) by adding at the end the following new

5 item:

‘‘2473. Depot-level maintenance and repair workload.’’.

6 (e) REPORT ON DEPOT-LEVEL MAINTENANCE AND

7 REPAIR WORKLOAD.—Not later than March 1, 1996, the

8 Secretary of Defense shall submit to Congress a report

9 on the depot-level maintenance and repair workload of the

10 Department of Defense. The report shall include the fol11 lowing:

12 (1) The analysis required by subsection (f) of

13 the effect on that workload of the so-called 60/40 re14 quirement.

15 (2) The analysis required by subsection (g) of

16 the projected effect on that workload using a defini17 tion of core capability consistent with the description

18 in section 2473(a) of title 10, United States Code,

19 as added by subsection (a).

20 (3) The comparison of those analyses required

21 by subsection (h).

22 (4) Identification and analysis of significant is23 sues that arise if organic Department of Defense de24 pots are allowed to participate in a full and open
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1 competition with private firms for repair workloads

2 in excess of work that supports core capabilities.

3 (f) 60/40 REQUIREMENT.—(1) The report under sub4 section (e) shall include an analysis of the requirement

5 under section 2466 of title 10, United States Code, that

6 no more than 40 percent of the depot-level maintenance

7 and repair work of the Department of Defense be con8 tracted for performance by non-Government personnel.

9 That analysis shall include the following:

10 (A) A description of the effect on military read11 iness and the national security resulting from that

12 requirement, including a description of any specific

13 difficulties experienced by the Department of De14 fense as a result of that requirement.

15 (B) A determination of the depot-level mainte16 nance and repair workload of the Department of De17 fense allocated for performance by organic Depart18 ment of Defense depots for any fiscal year during

19 which the requirement has been in effect, the per20 centage of funds for that workload that were obli21 gated to private sector entities, shown for each such

22 fiscal year and for the entire period during which

23 the requirement has been in effect.

24 (2) That analysis shall be made with respect to—
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1 (A) the distribution during the five fiscal years

2 ending with fiscal year 1995 of the depot-level main3 tenance and repair workload of the Department of

4 Defense between organic Department of Defense de5 pots and non-Government personnel, measured by

6 direct labor hours and by amounts expended, and

7 displayed, for that five-year period and for each year

8 of that period, so as to show (for each military de9 partment (and separately for the Navy and Marine

10 Corps)) such distribution for each commodity group

11 (such as naval vessels, aircraft, tracked combat vehi12 cles); and

13 (B) the projected distribution during the five

14 fiscal years beginning with fiscal year 1996 of the

15 depot-level maintenance and repair workload of the

16 Department of Defense between organic Department

17 of Defense depots and non-Government personnel,

18 set forth in the same manner as described in sub19 paragraph (A).

20 (g) CORE WORKLOAD ANALYSIS.—The report under

21 subsection (e) shall include an analysis of the depot-level

22 maintenance and repair workload of the Department of

23 Defense in which the Secretary uses the capability de24 scribed in section 2473(a) of title 10, United States Code,

25 as added by subsection (a), as the standard for determin-
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1 ing that portion of such workload that is required to be

2 performed in organic Department of Defense facilities.

3 That analysis shall be made with respect to—

4 (1) the distribution that would (using that

5 standard) have been made during the five fiscal

6 years ending with fiscal year 1995 of the depot-level

7 maintenance and repair workload of the Department

8 of Defense between organic Department of Defense

9 depots and non-Government personnel, measured by

10 direct labor hours and by amounts expended, and

11 displayed, for that five-year period and for each year

12 of that period, so as to show (for each military de13 partment (and separately for the Navy and Marine

14 Corps)) such distribution for each commodity group

15 (such as naval vessels, aircraft, tracked combat vehi16 cles); and

17 (2) the projected distribution (using that stand18 ard) during the five fiscal years beginning with fiscal

19 year 1996 of the depot-level maintenance and repair

20 workload of the Department of Defense between or21 ganic Department of Defense depots and non-Gov22 ernment personnel, set forth in the same manner as

23 described in paragraph (1).

24 (h) COMPARISON.—The report under subsection (e)

25 shall include a comparison of the results of the analysis
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1 of the depot-level maintenance and repair workload of the

2 Department of Defense under subsection (f) with the re3 sults of the analysis of that workload under subsection (g).

4 The comparison shall include a comparison of the two

5 analyses by service and commodity group with respect to

6 each of the following:

7 (1) Identification, based on each analysis, of

8 core workloads and of the capabilities and equipment

9 needed to perform depot-level maintenance and re10 pair for those core workloads.

11 (2) Identification, based on each analysis, of

12 depot-level maintenance and repair work performed

13 (or that would be performed) at organic Department

14 of Defense depots and of depot-level maintenance

15 and repair work performed (or that would be per16 formed) by non-Government personnel.

17 (3) Readiness.

18 (4) The Department of Defense budget.

19 (5) The depot-level maintenance and repair

20 workload distribution, under each analysis, by direct

21 labor hours performed and by dollars expended.

22 (6) Projected level, for each analysis, of Govern23 ment capital investment in public and private depot24 level maintenance and repair facilities.
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1 (i) REVIEW BY GAO.—(1) The Comptroller General

2 of the United States shall conduct an independent audit

3 of the findings of the Secretary of Defense in the report

4 under subsection (e). The Secretary of Defense shall pro5 vide to the Comptroller General for such purpose all infor6 mation used by the Secretary in preparing such report.

7 (2) Not later than April 1, 1996, the Comptroller

8 General shall submit to the congressional defense commit9 tees a report on the analysis by the Comptroller General

10 of the report submitted by the Secretary of Defense under

11 this section.

12 SEC. 396. EXPANSION OF SOUTHWEST BORDER STATES

13 ANTI-DRUG INFORMATION SYSTEM.

14 Congress finds that the Southwest Border States

15 Anti-Drug Information Systems program is an important

16 element in the effort of the Department of Defense to sup17 port law enforcement agencies in the fight against illegal

18 trafficking of narcotics.

19 TITLE IV—MILITARY

20 PERSONNEL AUTHORIZATIONS

21 Subtitle A—Active Forces

22 SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

23 The Armed Forces are authorized strengths for active

24 duty personnel as of September 30, 1996 , as follows:

25 (1) The Army, 495,000.
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1 (2) The Navy, 428,000.

2 (3) The Marine Corps, 174,000.

3 (4) The Air Force, 388,200.

4 SEC. 402. TEMPORARY VARIATIONS IN DOPMA AUTHOR5 IZED END STRENGTH LIMITATIONS FOR AC6 TIVE DUTY NAVY AND AIR FORCE OFFICERS

7 IN CERTAIN GRADES.

8 (a) AIR FORCE OFFICERS IN GRADE OF MAJOR.—

9 Notwithstanding section 523(a)(1) of title 10, United

10 States Code, and except as provided in section 523(c) of

11 such title, of the total number of commissioned officers

12 serving on active duty in the Air Force at the end of any

13 fiscal year through fiscal year 1997 (excluding officers in

14 categories specified in section 523(b) of title 10, United

15 States Code), the number of officers who may be serving

16 on active duty in the grade of major may not, as of the

17 end of such fiscal year, exceed the number determined in

18 accordance with the following table:

Total number of Air Force commissioned officers (excluding officers in categories specified in section 523(b) of title 10, United

States Code) on active duty

Number of officers who may

be serving on

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
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Total number of Air Force commissioned officers (excluding officers in categories specified in section 523(b) of title 10, United

States Code) on active duty

Number of officers who may

be serving on

active duty in

grade of major

120,000 ................................... 22,561

125,000 ................................... 23,356

1 (b) NAVY OFFICERS IN GRADES OF LIEUTENANT

2 COMMANDER, COMMANDER, AND CAPTAIN.—Notwith3 standing section 523(a)(2) of title 10, United States Code,

4 and except as provided in section 523(c) of such title, of

5 the total number of commissioned officers serving on ac6 tive duty in the Navy at the end of any fiscal year through

7 fiscal year 1997 (excluding officers in categories specified

8 in section 523(b) of title 10, United States Code), the

9 number of officers who may be serving on active duty in

10 each of the grades of lieutenant commander, commander,

11 and captain may not, as of the end of such fiscal year,

12 exceed a number determined in accordance with the fol13 lowing table:

Total number of Navy commissioned officers

(excluding officers in categories specified in

section 523(b) of title 10, United States

Code) on active duty

Number of officers who may be serving on active

duty in grade of

Lieutenant

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
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1 Subtitle B—Reserve Forces

2 SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

3 (a) IN GENERAL.—The Armed Forces are authorized

4 strengths for Selected Reserve personnel of the reserve

5 components as of September 30, 1996, as follows:

6 (1) The Army National Guard of the United

7 States, 373,000.

8 (2) The Army Reserve, 230,000.

9 (3) The Naval Reserve, 98,608.

10 (4) The Marine Corps Reserve, 42,000.

11 (5) The Air National Guard of the United

12 States, 109,458.

13 (6) The Air Force Reserve, 73,969.

14 (7) The Coast Guard Reserve, 8,000.

15 (b) WAIVER AUTHORITY.—The Secretary of Defense

16 may vary the end strength authorized by subsection (a)

17 by not more than 2 percent.

18 (c) ADJUSTMENTS.—The end strengths prescribed by

19 subsection (a) for the Selected Reserve of any reserve com20 ponent shall be proportionately reduced by—

21 (1) the total authorized strength of units orga22 nized to serve as units of the Selected Reserve of

23 such component which are on active duty (other

24 than for training) at the end of the fiscal year, and
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1 (2) the total number of individual members not

2 in units organized to serve as units of the Selected

3 Reserve of such component who are on active duty

4 (other than for training or for unsatisfactory partici5 pation in training) without their consent at the end

6 of the fiscal year.

7 Whenever such units or such individual members are re8 leased from active duty during any fiscal year, the end

9 strength prescribed for such fiscal year for the Selected

10 Reserve of such reserve component shall be proportion11 ately increased by the total authorized strengths of such

12 units and by the total number of such individual members.

13 SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE

14 DUTY IN SUPPORT OF THE RESERVES.

15 Within the end strengths prescribed in section

16 411(a), the reserve components of the Armed Forces are

17 authorized, as of September 30, 1996 , the following num18 ber of Reserves to be serving on full-time active duty or

19 full-time duty, in the case of members of the National

20 Guard, for the purpose of organizing, administering, re21 cruiting, instructing, or training the reserve components:

22 (1) The Army National Guard of the United

23 States, 23,390.

24 (2) The Army Reserve, 11,575.

25 (3) The Naval Reserve, 17,490.
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1 (4) The Marine Corps Reserve, 2,285.

2 (5) The Air National Guard of the United

3 States, 9,817.

4 (6) The Air Force Reserve, 628.

5 SEC. 413. COUNTING OF CERTAIN ACTIVE COMPONENT

6 PERSONNEL ASSIGNED IN SUPPORT OF RE7 SERVE COMPONENT TRAINING.

8 Section 414(c) of the National Defense Authorization

9 Act for Fiscal Years 1992 and 1993 (Public Law 102–

10 190; 10 U.S.C. 12001 note) is amended—

11 (1) by inserting ‘‘(1)’’ before ‘‘The Secretary’’;

12 and

13 (2) by adding at the end the following new

14 paragraph:

15 ‘‘(2) The Secretary of Defense may count toward the

16 number of active component personnel required under

17 paragraph (1) to be assigned to serve as advisers under

18 the program under this section any active component per19 sonnel who are assigned to an active component unit (A)

20 that was established principally for the purpose of provid21 ing dedicated training support to reserve component units,

22 and (B) the primary mission of which is to provide such

23 dedicated training support.’’.
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1 Subtitle C—Military Training

2 Student Loads

3 SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.

4 (a) IN GENERAL.—For fiscal year 1996, the compo5 nents of the Armed Forces are authorized average military

6 training loads as follows:

7 (1) The Army, 75,013.

8 (2) The Navy, 44,238.

9 (3) The Marine Corps, 26,095.

10 (4) The Air Force, 33,232.

11 (b) SCOPE.—The average military training student

12 loads authorized for an armed force under subsection (a)

13 apply to the active and reserve components of that armed

14 force.

15 (c) ADJUSTMENTS.—The average military student

16 loads authorized in subsection (a) shall be adjusted con17 sistent with the end strengths authorized in subtitles A

18 and B. The Secretary of Defense shall prescribe the man19 ner in which such adjustments shall be apportioned.

20 Subtitle D—Authorization of

21 Appropriations

22 SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILI23 TARY PERSONNEL.

24 There is hereby authorized to be appropriated to the

25 Department of Defense for military personnel for fiscal
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1 year 1996 a total of $68,951,663,000. The authorization

2 in the preceding sentence supersedes any other authoriza3 tion of appropriations (definite or indefinite) for such pur4 pose for fiscal year 1996.

5 SEC. 432. AUTHORIZATION FOR INCREASE IN ACTIVE-DUTY

6 END STRENGTHS.

7 (a) AUTHORIZATION.—There is hereby authorized to

8 be appropriated to the Department of Defense for fiscal

9 year 1996 for military personnel the sum of

10 $112,000,000. Any amount appropriated pursuant to this

11 section shall be allocated, in such manner as the Secretary

12 of Defense prescribes, among appropriations for active13 component military personnel for that fiscal year and shall

14 be available only to increase the number of members of

15 the Armed Forces on active duty during that fiscal year

16 (compared to the number of members that would be on

17 active duty but for such appropriation).

18 (b) EFFECT ON END STRENGTHS.—The end19 strength authorizations in section 401 shall each be

20 deemed to be increased by such number as necessary to

21 take account of additional members of the Armed Forces

22 authorized by the Secretary of Defense pursuant to sub23 section (a).
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1 TITLE V—MILITARY PERSONNEL

2 POLICY

3 Subtitle A—Officer Personnel

4 Policy

5 SEC. 501. AUTHORITY TO EXTEND TRANSITION PERIOD FOR

6 OFFICERS SELECTED FOR EARLY RETIRE7 MENT.

8 (a) SELECTIVE RETIREMENT OF WARRANT OFFI9 CERS.—Section 581 of title 10, United States Code, is

10 amended by adding at the end the following new sub11 section:

12 ‘‘(e) The Secretary concerned may defer for not more

13 than 90 days the retirement of an officer otherwise ap14 proved for early retirement under this section in order to

15 prevent a personal hardship to the officer or for other hu16 manitarian reasons.’’.

17 (b) SELECTIVE EARLY RETIREMENT OF ACTIVE18 DUTY OFFICERS.—Section 638(b) of title 10, United

19 States Code, is amended by adding at the end the follow20 ing new paragraph:

21 ‘‘(3) The Secretary concerned may defer for not more

22 than 90 days the retirement of an officer otherwise ap23 proved for early retirement under this section or section

24 638a of this title in order to prevent a personal hardship

25 to the officer or for other humanitarian reasons.’’.
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1 Subtitle B—Matters Relating to

2 Reserve Components

3 SEC. 511. MILITARY TECHNICIAN FULL-TIME SUPPORT

4 PROGRAM FOR ARMY AND AIR FORCE RE5 SERVE COMPONENTS.

6 (a) REQUIREMENT OF ANNUAL AUTHORIZATION OF

7 END STRENGTH.—(1) Section 115 of title 10, United

8 States Code, is amended by adding at the end the follow9 ing new subsection:

10 ‘‘(g) Congress shall authorize for each fiscal year the

11 end strength for military technicians for each reserve com12 ponent of the Army and Air Force. Funds available to the

13 Department of Defense for any fiscal year may not be

14 used for the pay of a military technician during that fiscal

15 year unless the technician fills a position that is within

16 the number of such positions authorized by law for that

17 fiscal year for the reserve component of that technician.

18 This subsection applies without regard to section 129 of

19 this title.’’.

20 (2) The amendment made by paragraph (1) does not

21 apply with respect to fiscal year 1995.

22 (b) AUTHORIZATION FOR FISCAL YEARS 1996 AND

23 1997.—For each of fiscal years 1996 and 1997, the num24 ber of military technicians, as of the last day of that fiscal

25 year, for the Army and the Air Force (notwithstanding
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1 section 129 of title 10, United States Code) may not ex2 ceed the following:

3 (1) Army National Guard, 25,500.

4 (2) Army Reserve, 6,630.

5 (3) Air National Guard, 22,906.

6 (4) Air Force Reserve, 9,802.

7 (c) ADMINISTRATION OF MILITARY TECHNICIAN

8 PROGRAM.—(1) Chapter 1007 of title 10, United States

9 Code, is amended by adding at the end the following new

10 section:

11 ‘‘§ 10216. Military technicians

12 ‘‘(a) PRIORITY FOR MANAGEMENT OF MILITARY

13 TECHNICIANS.—(1) As a basis for making the annual re14 quest to Congress pursuant to section 115 of this title for

15 authorization of end strengths for military technicians of

16 the Army and Air Force reserve components, the Sec17 retary of Defense shall give priority to supporting author18 izations for dual status military technicians in the follow19 ing high-priority units and organizations:

20 ‘‘(A) Units of the Selected Reserve that are

21 scheduled to deploy no later than 90 days after mo22 bilization.

23 ‘‘(B) Units of the Selected Reserve that are or

24 will deploy to relieve active duty peacetime oper25 ations tempo.
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1 ‘‘(C) Those organizations with the primary mis2 sion of providing direct support surface and aviation

3 maintenance for the reserve components of the Army

4 and Air Force, to the extent that the military techni5 cians in such units would mobilize and deploy in a

6 skill that is compatible with their civilian position

7 skill.

8 ‘‘(2) For each fiscal year, the Secretary of Defense

9 shall, for the high-priority units and organizations re10 ferred to in paragraph (1), achieve a programmed man11 ning level for military technicians that is not less than 90

12 percent of the programmed manpower structure for those

13 units and organizations for military technicians for that

14 fiscal year.

15 ‘‘(3) For each fiscal year, the Secretary of Defense

16 shall, for reserve component management headquarters

17 organizations (including national and State-level National

18 Guard headquarters, in United States Property and Fiscal

19 Offices, and in similar management-level headquarters in

20 the Army and Air Force Reserve), achieve a programmed

21 manning level for military technicians that is not more

22 than 70 percent of the programmed manpower structure

23 for those organizations for military technicians for that

24 fiscal year.
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1 ‘‘(4) Military technician authorizations and personnel

2 in high-priority units and organizations specified in para3 graph (1) shall be exempt from any requirement (imposed

4 by law or otherwise) for reductions in Department of De5 fense civilian personnel and shall only be reduced as part

6 of military force structure reductions. Planned reductions

7 in Department of Defense civilian personnel that would

8 apply to such technician authorizations and personnel but

9 for this paragraph shall be reallocated by the Secretary

10 of Defense on a proportional basis throughout the Depart11 ment of Defense, with an emphasis on reducing head12 quarters personnel.

13 ‘‘(b) DUAL-STATUS REQUIREMENT.—The Secretary

14 of Defense shall require the Secretary of the Army and

15 the Secretary of the Air Force to establish as a condition

16 of employment for each individual who is hired after the

17 date of the enactment of this section as a military techni18 cian that the individual maintain membership in the Se19 lected Reserve (so as to be a so-called ‘dual-status’ techni20 cian) and shall require that the civilian and military posi21 tion skill requirements of dual-status military technicians

22 be compatible. No Department of Defense funds may be

23 spent for compensation for any military technician hired

24 after the date of the enactment of this section who is not

25 a member of the Selected Reserve, except that compensa-
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1 tion may be paid for up to six months following loss of

2 membership in the selected reserve if such loss of member3 ship was not due to the failure to meet military stand4 ards.’’.

5 (2) The table of sections at the beginning of such

6 chapter is amended by adding at the end the following

7 new item:

‘‘10216. Military technicians.’’.

8 (d) REVIEW OF RESERVE COMPONENT MANAGE9 MENT HEADQUARTERS.—(1) The Secretary of Defense

10 shall, within six months after the date of the enactment

11 of this Act, undertake steps to reduce, consolidate, and

12 streamline management headquarters operations of the re13 serve components. As part of those steps, the Secretary

14 shall identify those military technicians positions in such

15 headquarters operations that are excess to the require16 ments of those headquarters.

17 (2) Of the military technicians positions that are

18 identified under paragraph (1), the Secretary shall reallo19 cate up to 95 percent of those positions to the high-prior20 ity units and activities specified in section 10216(a) of

21 title 10, United States Code, as added by subsection (c).

22 (e) ANNUAL DEFENSE MANPOWER REQUIREMENTS

23 REPORT.—Section 115a of title 10, United States Code,

24 is amended by adding at the end the following new sub25 section:
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1 ‘‘(h) In each such report, the Secretary shall include

2 a separate report on the Army and Air Force military

3 technician programs. The report shall include a presen4 tation, shown by reserve component and shown both as

5 of the end of the preceding fiscal year and for the next

6 fiscal year, of the following:

7 ‘‘(1) The number of military technicians re8 quired to be employed (as specified in accordance

9 with Department of Defense procedures), the num10 ber authorized to be employed under Department of

11 Defense personnel procedures, and the number actu12 ally employed.

13 ‘‘(2) Within each of the numbers under para14 graph (1)—

15 ‘‘(A) the number applicable to a reserve

16 component management headquarter organiza17 tion; and

18 ‘‘(B) the number applicable to high-prior19 ity units and organizations (as specified in sec20 tion 10216(a) of this title).

21 ‘‘(3) Within each of the numbers under para22 graph (1), the numbers of military technicians who

23 are not themselves members of a reserve component

24 (so-called ‘single-status’ technicians), with a further
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1 display of such numbers as specified in paragraph

2 (2).’’.

3 SEC. 512. MILITARY LEAVE FOR MILITARY RESERVE TECH4 NICIANS FOR CERTAIN DUTY OVERSEAS.

5 Section 6323 of title 5, United States Code is amend6 ed by adding at the end the following new subsection:

7 ‘‘(d)(1) A military reserve technician described in sec8 tion 8401(30) is entitled at such person’s request to leave

9 without loss of, or reduction in, pay, leave to which such

10 person is otherwise entitled, credit for time or service, or

11 performance or efficiency rating for each day, not to ex12 ceed 44 workdays in a calendar year, in which such person

13 is on active duty without pay, as authorized pursuant to

14 section 12315 of title 10, under section 12301(b) or

15 12301(d) of title 10 (other than active duty during a war

16 or national emergency declared by the President or Con17 gress) for participation in noncombat operations outside

18 the United States, its territories and possessions.

19 ‘‘(2) An employee who requests annual leave or com20 pensatory time to which the employee is otherwise entitled,

21 for a period during which the employee would have been

22 entitled upon request to leave under this subsection, may

23 be granted such annual leave or compensatory time with24 out regard to this section or section 5519.’’.
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1 SEC. 513. REVISIONS TO ARMY GUARD COMBAT REFORM

2 INITIATIVE TO INCLUDE ARMY RESERVE

3 UNDER CERTAIN PROVISIONS AND MAKE

4 CERTAIN REVISIONS.

5 (a) PRIOR ACTIVE DUTY PERSONNEL.—Section

6 1111 of the Army National Guard Combat Readiness Re7 form Act of 1992 (title XI of Public Law 102–484) is

8 amended—

9 (1) in the section heading, by striking out the

10 first three words;

11 (2) by striking out subsections (a) and (b) and

12 inserting in lieu thereof the following:

13 ‘‘(a) ADDITIONAL PRIOR ACTIVE DUTY OFFICERS.—

14 The Secretary of the Army shall increase the number of

15 qualified prior active-duty officers in the Army National

16 Guard by providing a program that permits the separation

17 of officers on active duty with at least two, but less than

18 three, years of active service upon condition that the offi19 cer is accepted for appointment in the Army National

20 Guard. The Secretary shall have a goal of having not fewer

21 than 150 officers become members of the Army National

22 Guard each year under this section.

23 ‘‘(b) ADDITIONAL PRIOR ACTIVE DUTY ENLISTED

24 MEMBERS.—The Secretary of the Army shall increase the

25 number of qualified prior active-duty enlisted members in

26 the Army National Guard through the use of enlistments
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1 as described in section 8020 of the Department of Defense

2 Appropriations Act, 1994 (Public Law 103–139). The

3 Secretary shall enlist not fewer than 1,000 new enlisted

4 members each year under enlistments described in that

5 section.’’; and

6 (3) by striking out subsections (d) and (e).

7 (b) SERVICE IN THE SELECTED RESERVE IN LIEU

8 OF ACTIVE DUTY SERVICE FOR ROTC GRADUATES.—

9 Section 1112(b) of such Act (106 Stat. 2537) is amended

10 by striking out ‘‘National Guard’’ before the period at the

11 end and inserting in lieu thereof ‘‘Selected Reserve’’.

12 (c) REVIEW OF OFFICER PROMOTIONS.—Section

13 1113 of such Act (106 Stat. 2537) is amended—

14 (1) in subsection (a), by striking out ‘‘National

15 Guard’’ both places it appears and inserting in lieu

16 thereof ‘‘Selected Reserve’’;

17 (2) by striking out subsection (b) and inserting

18 in lieu thereof the following:

19 ‘‘(b) COVERAGE OF SELECTED RESERVE COMBAT

20 AND EARLY DEPLOYING UNITS.—(1) Subsection (a) ap21 plies to officers in all units of the Selected Reserve that

22 are designated as combat units or that are designated for

23 deployment within 75 days of mobilization.

24 ‘‘(2) Subsection (a) shall take effect with respect to

25 officers of the Army Reserve, and with respect to officers
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1 of the Army National Guard in units not subject to sub2 section (a) as of the date of the enactment of the National

3 Defense Authorization Act for Fiscal Year 1996, at the

4 end of the 90-day period beginning on such date of enact5 ment.’’.

6 (d) INITIAL ENTRY TRAINING AND NONDEPLOYABLE

7 PERSONNEL.—Section 1115 of such Act (106 Stat. 2538)

8 is amended—

9 (1) in subsections (a) and (b), by striking out

10 ‘‘National Guard’’ each place it appears and insert11 ing in lieu thereof ‘‘Selected Reserve’’; and

12 (2) in subsection (c)—

13 (A) by striking out ‘‘a member of the

14 Army National Guard enters the National

15 Guard’’ and inserting in lieu thereof ‘‘a member

16 of the Army Selected Reserve enters the Army

17 Selected Reserve’’; and

18 (B) by striking out ‘‘from the Army Na19 tional Guard’’.

20 (e) ACCOUNTING OF MEMBERS WHO FAIL PHYSICAL

21 DEPLOYABILITY STANDARDS.—Section 1116 of such Act

22 (106 Stat. 2539) is amended by striking out ‘‘National

23 Guard’’ each place it appears and inserting in lieu thereof

24 ‘‘Selected Reserve’’.
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1 (f) USE OF COMBAT SIMULATORS.—Section 1120 of

2 such Act (106 Stat. 2539) is amended by inserting ‘‘and

3 the Army Reserve’’ before the period at the end.

4 SEC. 514. ROTC SCHOLARSHIPS FOR THE NATIONAL

5 GUARD.

6 (a) CLARIFICATION OF RESTRICTION ON ACTIVE

7 DUTY.—Paragraph (2) of section 2107(h) of title 10,

8 United States Code, is amended by inserting ‘‘full-time’’

9 before ‘‘active duty’’ in the second sentence.

10 (b) REDESIGNATION OF ROTC SCHOLARSHIPS.—

11 Such paragraph is further amended by inserting after the

12 first sentence the following new sentence: ‘‘A cadet des13 ignated under this paragraph who, having initially con14 tracted for service as provided in subsection (b)(5)(A) and

15 having received financial assistance for two years under

16 an award providing for four years of financial assistance

17 under this section, modifies such contract with the consent

18 of the Secretary of the Army to provide for service as de19 scribed in subsection (b)(5)(B), may be counted, for the

20 year in which the contract is modified, toward the number

21 of appointments required under the preceding sentence for

22 financial assistance awarded for a period of four years.’’.
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1 SEC. 515. REPORT ON FEASIBILITY OF PROVIDING EDU2 CATION BENEFITS PROTECTION INSURANCE

3 FOR SERVICE ACADEMY AND ROTC SCHOLAR4 SHIP STUDENTS WHO BECOME MEDICALLY

5 UNABLE TO SERVE.

6 Not later than June 30, 1996, the Secretary of De7 fense shall submit to Congress a report on the desirability

8 and the feasibility of the establishment of an insurance

9 program, to operate at no cost to the Government, to in10 sure individuals who are cadets or midshipmen at one of

11 the service academies or who hold Reserve Officer Train12 ing Corps scholarships under section 2107 or 2107a of

13 title 10, United States Code, against the loss of the value

14 of attendance at such service academy (in terms of the

15 cost of education at another institution), or the value of

16 the scholarship, in cases in which such attendance or such

17 scholarship is terminated by the Secretary of the military

18 department concerned because the individual has become,

19 through no fault of the individual, medically disqualified

20 from military service.
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1 SEC. 516. ACTIVE DUTY OFFICERS DETAILED TO ROTC

2 DUTY AT SENIOR MILITARY COLLEGES TO

3 SERVE AS COMMANDANT AND ASSISTANT

4 COMMANDANT OF CADETS AND AS TACTICAL

5 OFFICERS.

6 (a) IN GENERAL.—Chapter 103 of title 10, United

7 States Code, is amended by adding at the end the follow8 ing new section:

9 ‘‘§ 2111a. Detail of officers to senior military colleges

10 ‘‘(a) DETAIL OF OFFICERS TO SERVE AS COM11 MANDANT OR ASSISTANT COMMANDANT OF CADETS.—(1)

12 Upon the request of a senior military college, the Sec13 retary of Defense shall detail an officer on the active-duty

14 list to serve as Commandant of Cadets at that college or

15 (in the case of a college with an Assistant Commandant

16 of Cadets) detail an officer on the active-duty list to serve

17 as Assistant Commandant of Cadets at that college (but

18 not both).

19 ‘‘(2) In the case of an officer detailed as Com20 mandant of Cadets, the officer may, upon the request of

21 the college, be assigned from among the Professor of Mili22 tary Science, the Professor of Naval Science (if any), and

23 the Professor of Aerospace Science (if any) at that college

24 or may be in addition to any other officer detailed to that

25 college in support of the program.
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1 ‘‘(3) In the case of an officer detailed as Assistant

2 Commandant of Cadets, the officer may, upon the request

3 of the college, be assigned from among officers otherwise

4 detailed to duty at that college in support of the program

5 or may be in addition to any other officer detailed to that

6 college in support of the program.

7 ‘‘(b) DESIGNATION OF OFFICERS AS TACTICAL OFFI8 CERS.—Upon the request of a senior military college, the

9 Secretary of Defense shall authorize officers (other than

10 officers covered by subsection (a)) who are detailed to duty

11 as instructors at that college to act simultaneously as tac12 tical officers (with or without compensation) for the Corps

13 of Cadets at that college.

14 ‘‘(c) DETAIL OF OFFICERS.—The Secretary of a mili15 tary department shall designate officers for detail to the

16 program at a senior military college in accordance with

17 criteria provided by the college. An officer may not be de18 tailed to a senior military college without the approval of

19 that college.

20 ‘‘(d) SENIOR MILITARY COLLEGES.—The senior mili21 tary colleges are the following:

22 ‘‘(1) Texas A&M University.

23 ‘‘(2) Norwich College.

24 ‘‘(3) The Virginia Military Institute.

25 ‘‘(4) The Citadel.
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1 ‘‘(5) Virginia Polytechnic Institute and State

2 University.

3 ‘‘(6) North Georgia College.’’.

4 (b) CLERICAL AMENDMENT.—The table of sections

5 at the beginning of such chapter is amended by adding

6 at the end the following new item:

‘‘2111a. Detail of officers to senior military colleges.’’.

7 SEC. 517. MOBILIZATION INCOME INSURANCE PROGRAM

8 FOR MEMBERS OF READY RESERVE.

9 (a) ESTABLISHMENT OF PROGRAM.—(1) Subtitle E

10 of title 10, United States Code, is amended by inserting

11 after chapter 1213 the following new chapter:

12 ‘‘CHAPTER 1214—READY RESERVE

13 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.

14 ‘‘§ 12521. Definitions

15 ‘‘In this chapter:

16 ‘‘(1) The term ‘covered service’ means active

17 duty in the armed forces performed by a member of

18 a reserve component under orders for more than 30

19 days which specify that the member’s service is in
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1 support of an operational mission for which mem2 bers of the reserve components have been ordered to

3 active duty without their consent or in support of

4 forces activated during a period of war or during a

5 period of national emergency as declared by the

6 President or Congress.

7 ‘‘(2) The term ‘covered member’ means a mem8 ber of the Ready Reserve who is eligible for and who

9 has not declined coverage under this chapter.

10 ‘‘(3) The term ‘Secretary’ means the Secretary

11 of Defense.

12 ‘‘(4) The term ‘Department’ means the Depart13 ment of Defense.

14 ‘‘(5) The term ‘Board’ means the Board of Ac15 tuaries established under section 2006(e)(1) of this

16 title.

17 ‘‘(6) The term ‘Fund’ means the Department of

18 Defense Ready Reserve Income Insurance Fund.

19 ‘‘§ 12522. Establishment and purpose of program

20 ‘‘(a) ESTABLISHMENT.—There is established an in21 surance program for members of the Ready Reserve to

22 be known as the Department of Defense Ready Reserve

23 Income Insurance Program which shall be administered

24 by the Secretary. There is also established on the books

25 of the Treasury a fund to be known as the Department
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1 of Defense Ready Reserve Income Insurance Fund, which

2 shall be administered by the Secretary of the Treasury.

3 The Fund shall be used for the accumulation of funds in

4 order to finance on an actuarially sound basis liabilities

5 of the Program.

6 ‘‘(b) ASSETS OF FUND.—There shall be deposited

7 into the Fund the following, which shall constitute the as8 sets of the Fund:

9 ‘‘(1) Amounts paid into the Fund under sec10 tions 12526 and 12528 of this title.

11 ‘‘(2) Any amount appropriated to the Fund.

12 ‘‘(3) Any return on investment of the assets of

13 the Fund.

14 ‘‘(c) BOARD OF ACTUARIES.—The Department of

15 Defense Education Benefits Fund Board of Actuaries

16 shall have the actuarial responsibility for the Program.

17 ‘‘(d) DETERMINATION OF CONTRIBUTIONS TO THE

18 FUND.—(1) Not later than six months after the Program

19 is established, the Board shall determine (project) the pre20 mium rate for the coverage to be offered.

21 ‘‘(2) If at the time of any such valuation there has

22 been a change in benefits under the Program that has

23 been made since the last such valuation and such change

24 in benefits increases or decreases the present value of

25 amounts payable from the Fund, the Board shall deter-
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1 mine a premium rate methodology and schedule for the

2 liquidation of any liability (or actuarial gain to the Fund)

3 created by such change and any previous such changes

4 so that the present value of the sum of the scheduled pre5 mium payments (or reduction in payments that would oth6 erwise be made) equals the cumulative increase (or de7 crease) in the present value of such benefits.

8 ‘‘(3) If at the time of any such valuation the Board

9 determines that, based upon changes in actuarial assump10 tions since the last valuation, there has been an actuarial

11 gain or loss to the Fund, the Board shall recommend a

12 premium rate schedule for the amortization of the cumu13 lative gain or loss to the Fund created by such change

14 in assumptions and any previous such changes in assump15 tions through an increase or decrease in the payments that

16 would otherwise be made to the Fund.

17 ‘‘(4) If at any time liabilities exceed assets of the

18 Fund as a result of a call up, and funds are unavailable

19 to pay benefits, the Secretary shall seek a special appro20 priation to cover the unfunded liability. If appropriations

21 are not made, in any fiscal year, the Secretary shall limit

22 the value of any benefits conferred by this program to an

23 amount that does not exceed assets of the Fund expected

24 to accrue at the end of such fiscal year. Benefits that can-
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1 not be paid because of such limitation of funds shall be

2 deferred and paid only after funds become available.

3 ‘‘(e) PAYMENTS INTO THE FUND.—(1) Payment into

4 the Fund under this subsection shall accumulate in ac5 cordance with the provisions of section 12526 of this title.

6 ‘‘(2) At the beginning of each fiscal year, the Sec7 retary shall determine the sum of the following:

8 ‘‘(A) The projected amount of the premiums to

9 be collected, investment earnings, and any special

10 appropriations received for that fiscal year.

11 ‘‘(B) The amount for that year of any cumu12 lative unfunded liability (including any negative

13 amount or any gain to the Fund) resulting from

14 payments of benefits.

15 ‘‘(C) The amount for that year (including any

16 negative amount) of any cumulative actuarial gain

17 or loss to the Fund.

18 ‘‘(f) INVESTMENT OF ASSETS OF FUND.—The Sec19 retary of the Treasury shall invest such portion of the

20 Fund as is not in the judgment of the Secretary of De21 fense required to meet current liabilities. Such investments

22 shall be in public debt securities with maturities suitable

23 to the needs of the Fund, as determined by the Secretary

24 of Defense, and bearing interest at rates determined by

25 the Secretary of the Treasury, taking into consideration
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1 current market yields on outstanding marketable obliga2 tions of the United States of comparable maturities. The

3 income on such investments shall be credited to and form

4 a part of the Fund.

5 ‘‘§ 12523. Program administration

6 ‘‘The insurance program provided for in this chapter

7 shall be administered by the Secretary, who is authorized

8 to adopt such rules, procedures, and policies as in the Sec9 retary’s judgment may be necessary or appropriate to

10 carry out the purposes of this chapter.

11 ‘‘§ 12524. Eligible insurance companies

12 ‘‘(a) The Secretary may, without regard to section

13 3709 of the Revised Statutes (41 U.S.C. 5), purchase

14 from one or more insurance companies a policy or policies

15 of group insurance to offer benefits to all members. Each

16 such insurance company shall (1) be licensed to issue in17 surance in each of the 50 States and in the District of

18 Columbia, and (2) as of the most recent December 31 for

19 which information is available to the Secretary, have in

20 effect at least 1 percent of the total amount of insurance

21 which all such insurance companies have in effect in the

22 United States.

23 ‘‘(b) Any insurance company which issues a policy

24 under subsection (a) shall establish an administrative of-
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1 fice at a place and under a name designated by the Sec2 retary.

3 ‘‘(c) The Secretary may use the facilities and services

4 of any insurance company issuing any policy under this

5 chapter and may designate one such company as the rep6 resentative of the other companies and contract to pay a

7 reasonable fee to the designated company for its services.

8 ‘‘(d) The Secretary shall arrange with the insurance

9 company issuing any policy under this chapter to reinsure,

10 under conditions approved by the Secretary, portions of

11 the total amount of insurance under such policy or policies

12 with such other insurance companies (which meet qualify13 ing criteria set forth by the Secretary) as may elect to

14 participate in such reinsurance.

15 ‘‘(e) The Secretary may at any time discontinue any

16 policy purchased under this section.

17 ‘‘§ 12525. Persons insured; amount

18 ‘‘(a)(1) Any policy of insurance provided under this

19 chapter shall insure each covered member of the Ready

20 Reserve against covered service. Any covered member or21 dered into covered service shall be entitled to payment of

22 a basic benefit of $1,000 for each month of covered service

23 which is in excess of the initial 30 days of covered service,

24 unless the member has elected in writing (A) not to be

25 insured under this chapter, (B) to be insured for a lower
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1 benefit of half the basic benefit, or (C) to be insured in

2 a greater amount, in increments of $500, above the basic

3 benefit not to exceed $5,000 per month of covered service

4 (adjusted pursuant to paragraph (2)), following the initial

5 30 days of covered service, except that no member may

6 be paid under this chapter for more than 12 months of

7 covered service served during any period of 18 months.

8 Payment for any period of covered service less than one

9 month shall be at the rate of one-thirtieth of the monthly

10 rate for each day served. Payment shall be based solely

11 on insured status and on the period of covered service

12 served; no proof of lost income or expenses incurred as

13 a result of covered service shall be required.

14 ‘‘(2) The Secretary shall determine annually the ef15 fect of inflation on the benefits and establish an adjust16 ment rate which ensures that there is no loss of value in

17 the benefits payable to a member. Adjustments shall apply

18 to benefits for members with existing coverage and for

19 newly eligible members. Such adjustments for inflation

20 will be rounded to the nearest $10 increment.

21 ‘‘(3) Members of the Ready Reserve who, under regu22 lations prescribed by the Secretary of Defense in coordina23 tion with the Secretary of Transportation, are serving on

24 active duty (or full-time National Guard duty) shall not

25 be eligible to purchase insurance under this chapter. Addi-
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1 tional categories of members of the Ready Reserve, in the

2 discretion of the Secretary of Defense, may also be ex3 cluded from eligibility to purchase insurance under this

4 chapter.

5 ‘‘(b) Promptly following the effective date of this

6 chapter, the Secretary shall make a one-time offer of in7 surance coverage under this chapter to all persons who

8 were members of the Ready Reserve of an armed force

9 on that date and who remain members of the Ready Re10 serve. Members of the Ready Reserve, first becoming eligi11 ble for coverage after the effective date of this chapter,

12 shall be automatically enrolled for the basic benefit unless

13 declined, or another amount is elected under subsection

14 (a)(1).

15 ‘‘(c) Members shall be given a written explanation of

16 the insurance and be advised that they have the right (1)

17 to decline coverage altogether, (2) to select half the basic

18 benefit, or (3) to select increased benefits. The right of

19 a member of the Ready Reserve to decline, increase, or

20 decrease coverage shall be exercised within 30 days of first

21 being eligible for coverage.

22 ‘‘§ 12526. Deductions; payment

23 ‘‘(a)(1) During any period in which a member insured

24 under this chapter is participating in paid reserve training

25 or other duty, there shall be deducted each month from
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1 the member’s basic pay or compensation for inactive duty

2 training an amount determined by the Secretary to be the

3 same for all members of the Ready Reserve who subscribe

4 to the same amount of insurance as the share of the cost

5 attributable to insuring such member. As provided in sec6 tion 12525 of this title, the Secretary may establish grad7 uated monthly premiums for an amount of insurance less

8 than the basic amount of coverage or in excess of the basic

9 coverage amount.

10 ‘‘(2) Any member insured under this chapter who is

11 not in a pay status in which the member receives pay on

12 a monthly basis shall pay the cost attributable to insuring

13 such member in accordance with regulations to be adopted

14 by the Secretary.

15 ‘‘(b) An amount equal to the first amount due on in16 surance under this chapter may be advanced from current

17 appropriations for military pay to any such member, which

18 amount shall constitute a lien upon the pay for military

19 service accruing to the person to whom such advance was

20 made, and shall be collected therefrom if not otherwise

21 paid. No disbursing or certifying officer shall be respon22 sible for any loss by reason of such advance.

23 ‘‘(c) The sums withheld from the basic or other pay

24 of insured members or deposited by insured members, to25 gether with the income derived from any dividends or pre-
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1 mium rate adjustments, shall be deposited to the credit

2 of the Fund. All premium payments for insurance issued

3 under this chapter shall be deposited into the Fund.

4 ‘‘§ 12527. Payment of insurance; beneficiaries

5 ‘‘(a) A member insured under this chapter who serves

6 in excess of 30 days of covered service shall be paid the

7 amount to which such member is entitled on a monthly

8 basis, with the first payment due no later than one month

9 following the 30th day of covered service. The Secretary

10 shall adopt regulations prescribing the manner in which

11 payments shall be made, either to the member or, in ac12 cordance with subsection (d), to a designated person or

13 entity.

14 ‘‘(b) A member may designate in writing another per15 son (including a spouse, parent, or other person with an

16 insurable interest as determined by the Secretary by regu17 lation) to whom the insurance payments to which such

18 member is entitled are to be paid. Such designation may

19 be made to a bank or other financial institution, to the

20 credit of a designated person. In the latter event, insur21 ance payments to which a member becomes entitled shall

22 be paid to the designated person, bank or financial institu23 tion.

24 ‘‘(c) Any amount of insurance payable under this

25 chapter on account of a deceased member’s period of cov-
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1 ered service shall be paid, upon the establishment of a

2 valid claim therefor, to the beneficiary or beneficiaries

3 which the former member had designated in writing. If

4 no such designation has been made, the amount shall be

5 payable in accordance with the laws of the State of the

6 member’s domicile.

7 ‘‘§ 12528. Premiums; accounting to the Secretary

8 ‘‘(a) Each policy of insurance provided by the Sec9 retary under this chapter shall include for the first policy

10 years a fixed monetary premium per $1,000 of insurance,

11 based, in consultation with the Board, on the best avail12 able estimate of risk and financial exposure, levels of sub13 scription by members, and other relevant factors. Dif14 ferent premium levels may be established for different

15 amounts of coverage, provided that the premium rate es16 tablished for the basic benefit shall not be at a premium

17 rate higher than the premium rate set for increased cov18 erages.

19 ‘‘(b) Each policy shall include provisions whereby the

20 premium rate for the first policy year shall be continued

21 for subsequent policy years (but the premium amount may

22 be increased to account or inflation-adjusted benefit in23 creases). The rate may be readjusted for any subsequent

24 year with the consent of the Secretary based on prior con25 sultation with the Board of Actuaries.
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1 ‘‘§ 12529. Forfeiture

2 ‘‘Any person found guilty of mutiny, treason, spying,

3 or desertion, or who refuses to perform service in the

4 armed forces or refuses to wear the uniform of any of the

5 armed forces, shall forfeit all rights to insurance under

6 this chapter.’’.

7 (2) The tables of chapters at the beginning of subtitle

8 E, and at the beginning of part II of subtitle E, of title

9 10, United States Code, are amended by inserting after

10 the item relating to chapter 1213 the following new item:

‘‘1214. Ready Reserve Income Insurance .................................12521’’.

11 (b) EFFECTIVE DATE.—The insurance program pro12 vided for in chapter 1218 of title 10, United States Code,

13 as added by subsection (a), and the deductions and con14 tributions for that program shall take effect on a date des15 ignated by the Secretary. Such date may not be later than

16 September 30, 1996. The Secretary shall publish in the

17 Federal Register notice of such effective date.

18 SEC. 518. DELAY IN REORGANIZATION OF ARMY ROTC RE19 GIONAL HEADQUARTERS STRUCTURE.

20 (a) DELAY.—The Secretary of the Army may not

21 take any action to reorganize the regional headquarters

22 and basic camp structure of the Reserve Officers Training

23 Corps program of the Army until six months after the date

24 on which the report required by subsection (d) is submit25 ted.
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1 (b) COST-BENEFIT ANALYSIS.—The Secretary of the

2 Army shall conduct a comparative cost-benefit analysis of

3 various options for the reorganization of the regional head4 quarters and basic camp structure of the Army ROTC

5 program. As part of such analysis, the Secretary shall

6 measure each reorganization option considered against a

7 common set of criteria.

8 (c) SELECTION OF REORGANIZATION OPTION FOR

9 IMPLEMENTATION.—Based on the findings resulting from

10 the cost-benefit analysis under subsection (b) and such

11 other factors as the Secretary considers appropriate, the

12 Secretary shall select one reorganization option for imple13 mentation. The Secretary may select an option for imple14 mentation only if the Secretary finds that the cost-benefit

15 analysis and other factors considered clearly demonstrate

16 that such option, better than any other option consid17 ered—

18 (1) provides the structure to meet projected

19 mission requirements;

20 (2) achieves the most significant personnel and

21 cost savings;

22 (3) uses existing basic and advanced camp fa23 cilities to the maximum extent possible;

24 (4) minimizes additional military construction

25 costs; and
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1 (5) makes maximum use of the reserve compo2 nents to support basic and advanced camp oper3 ations, thereby minimizing the effect of those oper4 ations on active duty units.

5 (d) REPORT.—Not later than 60 days after the date

6 of the enactment of this Act, the Secretary of the Army

7 shall submit to the Committee on Armed Services of the

8 Senate and the Committee on National Security of the

9 House of Representatives a report describing the reorga10 nization option selected under subsection (c). The report

11 shall include the results of the cost-benefit analysis under

12 subsection (b) and a detailed rationale for the reorganiza13 tion option selected.

14 SEC. 519. ACTIVE DUTY ASSOCIATE UNIT RESPONSIBILITY.

15 (a) ASSOCIATE UNITS.—Subsection (a) of section

16 1131 of the National Defense Authorization Act for Fiscal

17 Year 1993 (Public Law 102–484; 106 Stat. 2540) is

18 amended to read as follows:

19 ‘‘(a) ASSOCIATE UNITS.—The Secretary of the Army

20 shall require—

21 ‘‘(1) that each ground combat maneuver bri22 gade of the Army National Guard that (as deter23 mined by the Secretary) is essential for the execu24 tion of the National Military Strategy be associated

25 with an active-duty combat unit; and
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1 ‘‘(2) that combat support and combat service

2 support units of the Army Selected Reserve that (as

3 determined by the Secretary) are essential for the

4 execution of the National Military Strategy be asso5 ciated with active-duty units.’’.

6 (b) RESPONSIBILITIES.—Subsection (b) of such sec7 tion is amended—

8 (1) by striking out ‘‘National Guard combat

9 unit’’ in the matter preceding paragraph (1) and in10 serting in lieu thereof ‘‘National Guard unit or

11 Army Selected Reserve unit that (as determined by

12 the Secretary under subsection (a)) is essential for

13 the execution of the National Military Strategy’’;

14 and

15 (2) by striking out ‘‘of the National Guard

16 unit’’ in paragraphs (1), (2), (3), and (4) and insert17 ing in lieu thereof ‘‘of that unit’’.

18 Subtitle C—Matters Relating to

19 Force Levels

20 SEC. 521. FLOOR ON END STRENGTHS.

21 (a) IN GENERAL.—Chapter 39 of title 10, United

22 States Code, is amended by adding at the end the follow23 ing new section:
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1 ‘‘§ 691. Permanent end strength levels to support two

2 major regional contingencies

3 ‘‘(a) The end strengths specified in subsection (b) are

4 the minimum strengths necessary to enable the armed

5 forces to fulfill a national defense strategy calling for the

6 United States to be able to successfully conduct two nearly

7 simultaneous major regional contingencies.

8 ‘‘(b) Unless otherwise provided by law, the number

9 of members of the armed forces (other than the Coast

10 Guard) on active duty at the end of any fiscal year shall

11 be not less than the following:

12 ‘‘(1) For the Army, 495,000.

13 ‘‘(2) For the Navy, 395,000.

14 ‘‘(3) For the Marine Corps, 174,000.

15 ‘‘(4) For the Air Force, 381,000.

16 ‘‘(c) No funds appropriated to the Department of De17 fense may be used to reduce the active duty end strengths

18 for the armed forces below the levels specified in sub19 section (b) unless the Secretary of Defense submits to

20 Congress notice of the proposed lower end strength levels

21 and a justification for those levels. No action may then

22 be taken to reduce such end strengths below the levels

23 specified in subsection (b) until the end of the six-month

24 period beginning on the date of the submission of such

25 notification to Congress.
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1 ‘‘(d) The number of members of the armed forces on

2 active duty shall be counted for purposes of this section

3 in the same manner as applies under section 115(a)(1)

4 of this title.’’.

5 (b) CLERICAL AMENDMENT.—The table of sections

6 at the beginning of such chapter is amended by adding

7 at the end the following new item:

‘‘691. Permanent end strength levels to support two major regional contingencies.’’.

8 SEC. 522. ARMY OFFICER MANNING LEVELS.

9 (a) IN GENERAL.—(1) Chapter 331 of title 10, Unit10 ed States Code, is amended by inserting after the table

11 of sections the following new section:

12 ‘‘§ 3201. Officers on active duty: minimum strength

13 based on requirements

14 ‘‘(a) The Secretary of the Army shall ensure that (be15 ginning with fiscal year 1999) the strength at the end of

16 each fiscal year of officers on active duty is sufficient to

17 enable the Army to meet at least 90 percent of the pro18 grammed manpower structure for the active component of

19 the Army.

20 ‘‘(b) The number of officers on active duty shall be

21 counted for purposes of this section in the same manner

22 as applies under section 115(a)(1) of this title.

23 ‘‘(c) In this section:
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1 ‘‘(1) The term ‘programmed manpower struc2 ture’ means the aggregation of billets describing the

3 full manpower requirements for units and organiza4 tions in the programmed force structure.

5 ‘‘(2) The term ‘programmed force structure’

6 means the set of units and organizations that exist

7 in the current year and that is planned to exist in

8 each future year under the then-current Future9 Years Defense Program.’’.

10 (2) The table of sections at the beginning of such

11 chapter is amended by inserting after ‘‘Sec.’’ the following

12 new item:

‘‘3201. Officers on active duty: minimum strength based on requirements.’’.

13 (b) ASSISTANCE IN ACCOMPLISHING REQUIREMENT.—

14 The Secretary of Defense shall provide to the Army suffi15 cient personnel and financial resources (including re16 sources from outside Army accounts) to enable the Army

17 to meet the requirement specified in section 3201 of title

18 10, United States Code, as added by subsection (a).

19 SEC. 523. COMPTROLLER GENERAL REVIEW OF PROPOSED

20 ARMY END STRENGTH ALLOCATIONS.

21 (a) IN GENERAL.—During fiscal years 1996 through

22 2001, the Comptroller General of the United States shall

23 analyze the plans of the Secretary of the Army for the

24 allocation of assigned active component end strengths for

25 the Army through the requirements process known as
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1 Total Army Analysis 2003 and through any subsequent

2 similar requirements process of the Army that is con3 ducted before 2002. The Comptroller General’s analysis

4 shall consider whether the proposed active component end

5 strengths and planned allocation of forces for that period

6 will be sufficient to implement the national military strat7 egy. In monitoring those plans, the Comptroller General

8 shall determine the extent to which the Army will be able

9 during that period—

10 (1) to man fully the combat force based on the

11 projected active component Army end strength for

12 each of fiscal years 1996 through 2001;

13 (2) to meet the support requirements for the

14 force and strategy specified in the report of the Bot15 tom-Up Review, including requirements for oper16 ations other than war; and

17 (3) to streamline further Army infrastructure in

18 order to eliminate duplication and inefficiencies and

19 replace active duty personnel in overhead positions,

20 whenever practicable, with civilian or reserve person21 nel.

22 (b) ACCESS TO DOCUMENTS, ETC.—The Secretary of

23 the Army shall ensure that the Comptroller General is pro24 vided access, on a timely basis and in accordance with the

25 needs of the Comptroller General, to all analyses, models,
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1 memoranda, reports, and other documents prepared or

2 used in connection with the requirements process of the

3 Army known as Total Army Analysis 2003 and any subse4 quent similar requirements process of the Army that is

5 conducted before 2002.

6 (c) ANNUAL REPORT.—Not later than March 1 of

7 each year through 2002, the Comptroller General shall

8 submit to Congress a report on the findings and conclu9 sions of the Comptroller General under this section.

10 SEC. 524. MANNING STATUS OF HIGHLY DEPLOYABLE SUP11 PORT UNITS.

12 Not later than September 30, 1996, the Secretary of

13 each military department shall submit to the Committee

14 on Armed Services of the Senate and the Committee on

15 National Security of the House of Representatives a re16 port on the units under that Secretary’s jurisdiction that

17 (as determined by the Secretary) are high-priority support

18 units that would deploy early in a contingency operation

19 or other crisis and that are, as a matter of policy, man20 aged at less than 100 percent of their authorized

21 strengths. The Secretary shall include in the report the

22 number of such high-priority support units (shown by type

23 of unit), the level of manning within such high-priority

24 support units, and either the justification for manning of

25 less than 100 percent or the status of corrective action.
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1 SEC. 525. SENSE OF CONGRESS CONCERNING PERSONNEL

2 TEMPO RATES.

3 (a) FINDINGS.—Congress makes the following find4 ings:

5 (1) Excessively high personnel tempo rates for

6 members of the Armed Forces resulting from high7 tempo unit operations degrades unit readiness and

8 morale and eventually can be expected to adversely

9 affect unit retention.

10 (2) The Armed Forces have begun to develop

11 methods to measure and manage personnel tempo

12 rates.

13 (3) The Armed Forces have attempted to re14 duce operations and personnel tempo for heavily

15 tasked units by employing alternative capabilities

16 and reducing tasking requirements.

17 (b) SENSE OF CONGRESS.—The Secretary of Defense

18 should continue to enhance the knowledge within the

19 Armed Forces of personnel tempo and to improve the tech20 niques by which personnel tempo is managed with a view

21 toward establishing and achieving reasonable personnel

22 tempo standards for all personnel, regardless of unit or

23 assignment.
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1 Subtitle D—Amendments to the

2 Uniform Code of Military Justice

3 SEC. 541. REFERENCES TO UNIFORM CODE OF MILITARY

4 JUSTICE.

5 Except as otherwise expressly provided, whenever in

6 this subtitle an amendment or repeal is expressed in terms

7 of an amendment to, or repeal of, a section or other provi8 sion, the reference shall be considered to be made to a

9 section or other provision of chapter 47 of title 10, United

10 States Code (the Uniform Code of Military Justice).

11 SEC. 542. FORFEITURE OF PAY AND ALLOWANCES DURING

12 CONFINEMENT BY SENTENCE OF COURT13 MARTIAL.

14 (a) FORFEITURE.—(1) Subchapter VIII is amended

15 by inserting after section 857 (article 57) the following

16 new section (article):

17 ‘‘§ 857a. Art. 57a. Sentences: forfeiture of pay and al18 lowances during confinement by sentence

19 of court-martial

20 ‘‘(a) A court-martial sentence, as announced by the

21 sentencing authority, that includes confinement shall re22 sult in the forfeiture of pay and allowances due that mem23 ber during the period of the confinement or while on pa24 role. The forfeiture shall be effective on the date on which

25 the sentence is announced. The percentage of pay and al-
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1 lowances forfeited shall be the maximum percentage that

2 the court-martial could have directed as part of the sen3 tence.

4 ‘‘(b) If the sentence of a member who forfeits pay

5 and allowances under subsection (a) is set aside or dis6 approved or, as finally approved, does not provide for con7 finement, the member shall be paid the pay and allowances

8 which the member would have been paid, but for the for9 feiture, for the period during which the forfeiture was in

10 effect.’’.

11 (2) The table of sections at the beginning of sub12 chapter VIII is amended by inserting after the item relat13 ing to section 857 (article 57) the following new item:

‘‘857a. 57a. Sentences: forfeiture of pay and allowances during confinement by

sentence of court-martial.’’.

14 (b) ACTION BY THE CONVENING AUTHORITY.—Sec15 tion 860 (article 60) is amended—

16 (1) by redesignating subsections (d) and (e) as

17 subsections (e) and (f) respectively; and

18 (2) by inserting after subsection (c) the follow19 ing new subsection:

20 ‘‘(d) In a case involving an accused who has depend21 ents and in which the sentence, as approved, includes con22 finement, the convening authority or other person taking

23 action under this section may waive some or all of the for24 feiture of pay and allowances otherwise required by section
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1 857a of this title (article 57a). Any amount of pay and

2 allowances payable only by reason of such a waiver shall

3 be paid, as the convening authority or other person taking

4 action under this section directs, to the dependents of the

5 accused.’’

6 (c) CONFORMING AMENDMENT.—(1) Section 804 of

7 title 37, United States Code, is repealed.

8 (2) The table of sections at the beginning of chapter

9 15 of such title is amended by striking out the item relat10 ing to section 804.

11 SEC. 543. REFUSAL TO TESTIFY BEFORE COURT-MARTIAL.

12 Section 847(b) (article 47(b)) is amended by striking

13 out ‘‘shall be’’ in the second sentence and all that follows

14 inserting in lieu thereof ‘‘shall be fined or imprisoned, or

15 both, at the court’s discretion.’’.

16 SEC. 544. FLIGHT FROM APPREHENSION.

17 (a) IN GENERAL.—Section 895 (article 95) is amend18 ed to read as follows:

19 ‘‘§ 895. Art. 95. Resistance, flight, breach of arrest,

20 and escape

21 ‘‘Any person subject to this chapter who—

22 ‘‘(1) resists apprehension;

23 ‘‘(2) flees from apprehension;

24 ‘‘(3) breaks arrest; or

25 ‘‘(4) escapes from custody or confinement;
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1 shall be punished as a court-martial may direct.’’.

2 (b) CLERICAL AMENDMENT.—The item relating to

3 section 895 (article 95) in the table of sections at the be4 ginning of subchapter X is amended to read as follows:

‘‘895. 95. Resistance, flight, breach of arrest, and escape.’’.

5 SEC. 545. CARNAL KNOWLEDGE.

6 (a) GENDER NEUTRALITY.—Subsection (b) of section

7 920 (article 120) is amended to read as follows:

8 ‘‘(b) Any person subject to this chapter who, under

9 circumstances not amounting to rape, commits an act of

10 sexual intercourse with a person—

11 ‘‘(1) who is not that person’s spouse; and

12 ‘‘(2) who has not attained the age of sixteen

13 years;

14 is guilty of carnal knowledge and shall be punished as a

15 court-martial may direct.’’.

16 (b) MISTAKE OF FACT.—Such section (article) is fur17 ther amended by adding at the end the following new sub18 section:

19 ‘‘(d) In a prosecution under subsection (b), it is a

20 defense that—

21 ‘‘(1) the person with whom the accused commit22 ted the act of sexual intercourse had at the time of

23 the alleged offense attained the age of twelve years;

24 and
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1 ‘‘(2) the accused reasonably believed that that

2 person had at the time of the alleged offense at3 tained the age of sixteen years.’’.

4 SEC. 546. TIME AFTER ACCESSION FOR INITIAL INSTRUC5 TION IN THE UNIFORM CODE OF MILITARY

6 JUSTICE.

7 Section 937(a)(1) (article 137(a)(1)) is amended by

8 striking out ‘‘within six days’’ and inserting in lieu thereof

9 ‘‘within fourteen days’’.

10 SEC. 547. PERSONS WHO MAY APPEAR BEFORE THE UNIT11 ED STATES COURT OF APPEALS FOR THE

12 ARMED FORCES.

13 Section 944 (article 144) is amended by adding at

14 the end the following new sentence: ‘‘However, no person

15 may appear before the court (whether on a brief or in per16 son) other than an attorney who is admitted to practice

17 before the court or who is authorized to appear by the

18 court in a particular case (except that the court may per19 mit a third-year law student certified under a State rule

20 for practical training of law students to appear as an ami21 cus curiae).’’.
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1 SEC. 548. DISCRETIONARY REPRESENTATION BY GOVERN2 MENT APPELLATE DEFENSE COUNSEL IN PE3 TITIONING SUPREME COURT FOR WRIT OF

4 CERTIORARI.

5 Section 870 (article 70) is amended—

6 (1) in subsection (c), by inserting ‘‘(except as

7 provided in subsection (f))’’ before ‘‘the Supreme

8 Court’’; and

9 (2) by adding at the end the following new sub10 section:

11 ‘‘(f) Representation of the accused by appellate de12 fense counsel in preparation of a petition to the Supreme

13 Court for a writ of certiorari shall be at the discretion

14 of the appellate defense counsel.’’.

15 SEC. 549. REPEAL OF TERMINATION OF AUTHORITY FOR

16 CHIEF JUSTICE OF UNITED STATES TO DES17 IGNATE ARTICLE III JUDGES FOR TEM18 PORARY SERVICE ON COURT OF APPEALS

19 FOR THE ARMED FORCES.

20 Subsection (i) of section 1301 of the National De21 fense Authorization Act for Fiscal Years 1990 and 1991

22 (Public Law 101–189; 10 U.S.C. 942 note) is repealed.

23 SEC. 550. TECHNICAL AMENDMENT.

24 Section 866(f) (article 66(f)) is amended by striking

25 out ‘‘Courts of Military Review’’ both places it appears
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1 and inserting in lieu thereof ‘‘Courts of Criminal Ap2 peals’’.

3 Subtitle E—Other Matters

4 SEC. 551. EQUALIZATION OF ACCRUAL OF SERVICE CREDIT

5 FOR OFFICERS AND ENLISTED MEMBERS.

6 (a) ENLISTED SERVICE CREDIT.—Section 972 of

7 title 10, United States Code, is amended—

8 (1) by inserting ‘‘(a) ENLISTED MEMBERS RE9 QUIRED TO MAKE UP TIME LOST.—’’ before ‘‘An

10 enlisted member’’;

11 (2) by striking out paragraphs (3) and (4) and

12 inserting in lieu thereof the following:

13 ‘‘(3) is confined by military or civilian authori14 ties for more than one day before, during, or after

15 trial; or’’; and

16 (3) by redesignating paragraph (5) as para17 graph (4).

18 (b) OFFICER SERVICE CREDIT.—Such section is fur19 ther amended by adding at the end the following:

20 ‘‘(b) OFFICERS NOT ALLOWED SERVICE CREDIT FOR

21 TIME LOST.—In the case of an officer of an armed force

22 who after the date of the enactment of the National De23 fense Authorization Act for Fiscal Year 1996—

24 ‘‘(1) deserts;
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1 ‘‘(2) is absent from his organization, station, or

2 duty for more than one day without proper author3 ity, as determined by competent authority;

4 ‘‘(3) is confined by military or civilian authori5 ties for more than one day before, during, or after

6 trial; or

7 ‘‘(4) is unable for more than one day, as deter8 mined by competent authority, to perform his duties

9 because of intemperate use of drugs or alcoholic liq10 uor, or because of disease or injury resulting from

11 his misconduct;

12 the period of such desertion, absence, confinement, or in13 ability to perform duties may not be counted in computing,

14 for any purpose other than basic pay under section 205

15 of title 37, the officer’s length of service.’’.

16 (c) CLERICAL AMENDMENTS.—(1) The heading of

17 such section is amended to read as follows:

18 ‘‘§ 972. Members: effect of time lost

19 (2) The item relating to section 972 in the table of

20 sections at the beginning of chapter 49 of such title is

21 amended to read as follows:

‘‘972. Members: effect of time lost.’’.

22 (d) CONFORMING AMENDMENTS.—(1) Section

23 1405(c) is amended—
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1 (A) by striking out ‘‘MADE UP.—Time’’ and in2 serting in lieu thereof ‘‘MADE UP OR EXCLUDED.—

3 (1) Time’’;

4 (B) by striking out ‘‘section 972’’ and inserting

5 in lieu thereof ‘‘section 972(a)’’;

6 (C) by inserting after ‘‘of this title’’ the follow7 ing: ‘‘, or required to be made up by an enlisted

8 member of the Navy, Marine Corps, or Coast Guard

9 under that section with respect to a period of time

10 after the date of the enactment of the National De11 fense Authorization Act for Fiscal Year 1995,’’; and

12 (D) by adding at the end the following:

13 ‘‘(2) Section 972(b) of this title excludes from com14 putation of an officer’s years of service for purposes of

15 this section any time identified with respect to that officer

16 under that section.’’.

17 (2) Chapter 367 of such title is amended—

18 (A) in section 3925(b), by striking out ‘‘section

19 972’’ and inserting in lieu thereof ‘‘section 972(a)’’;

20 and

21 (B) by adding at the end of section 3926 the

22 following new subsection:

23 ‘‘(e) Section 972(b) of this title excludes from com24 putation of an officer’s years of service for purposes of
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1 this section any time identified with respect to that officer

2 under that section.’’.

3 (3)(A) Chapter 571 of such title is amended by in4 serting after section 6327 the following new section:

5 ‘‘§ 6328. Computation of years of service: voluntary

6 retirement

7 ‘‘(a) ENLISTED MEMBERS.—Time required to be

8 made up under section 972(a) of this title after the date

9 of the enactment of this section may not be counted in

10 computing years of service under this chapter.

11 ‘‘(b) OFFICERS.—Section 972(b) of this title excludes

12 from computation of an officer’s years of service for pur13 poses of this chapter any time identified with respect to

14 that officer under that section.’’.

15 (B) The table of sections at the beginning of such

16 chapter is amended by inserting after the item relating

17 to section 6327 the following new item:

‘‘6328. Computation of years of service: voluntary retirement.’’.

18 (4) Chapter 867 of such title is amended—

19 (A) in section 8925(b), by striking out ‘‘section

20 972’’ and inserting in lieu thereof ‘‘section 972(a)’’;

21 and

22 (B) by adding at the end of section 8926 the

23 following new subsection:

24 ‘‘(d) Section 972(b) of this title excludes from com25 putation of an officer’s years of service for purposes of
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1 this section any time identified with respect to that officer

2 under that section.’’.

3 (e) EFFECTIVE DATE AND APPLICABILITY.—The

4 amendments made by this section shall take effect on the

5 date of the enactment of this Act and shall apply to any

6 period of time covered by section 972 of title 10, United

7 States Code, that occurs after that date.

8 SEC. 552. EXTENSION OF EXPIRING PERSONNEL AUTHORI9 TIES.

10 (a) GRADE DETERMINATION AUTHORITY FOR CER11 TAIN RESERVE MEDICAL OFFICERS.—Sections 3359(b)

12 and 8359(b) of title 10, United States Code, are amended

13 by striking out ‘‘September 30, 1995’’ and inserting in

14 lieu thereof ‘‘September 30, 1996’’.

15 (n) PROMOTION AUTHORITY FOR CERTAIN RESERVE

16 OFFICERS SERVING ON ACTIVE DUTY.—Sections 3380(d)

17 and 8380(d) of such title are amended by striking out

18 ‘‘September 30, 1995’’ and inserting in lieu thereof ‘‘Sep19 tember 30, 1996’’.

20 (c) YEARS OF SERVICE FOR MANDATORY TRANSFER

21 TO THE RETIRED RESERVE.—Section 1016(d) of the De22 partment of Defense Authorization Act, 1984 (10 U.S.C.

23 3360 note), is amended by striking out ‘‘September 30,

24 1995’’ and inserting in lieu thereof ‘‘September 30,

25 1996’’.
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1 (d) AUTHORITY FOR TEMPORARY PROMOTIONS OF

2 CERTAIN NAVY LIEUTENANTS.—Section 5721 of title 10,

3 United States Code, is amended by striking out ‘‘Septem4 ber 30, 1995’’ and inserting in lieu thereof ‘‘September

5 30, 1998’’.

6 SEC. 553. INCREASE IN EDUCATIONAL ASSISTANCE ALLOW7 ANCE WITH RESPECT TO SKILLS OR SPECIAL8 TIES FOR WHICH THERE IS A CRITICAL

9 SHORTAGE OF PERSONNEL.

10 Section 16131 of title 10, United States Code, is

11 amended by adding at the end the following new sub12 section:

13 ‘‘(j)(1) In the case of a person who has a skill or

14 specialty designated by the Secretary concerned as a skill

15 or specialty in which there is a critical shortage of person16 nel or for which it is difficult to recruit or, in the case

17 of critical units, retain personnel, the Secretary concerned

18 may increase the rate of the educational assistance allow19 ance applicable to that person to such rate in excess of

20 the rate prescribed under subparagraphs (A) through (D)

21 of subsection (b)(1) as the Secretary of Defense considers

22 appropriate, but the amount of any such increase may not

23 exceed $350 per month.

24 ‘‘(2) The authority provided by paragraph (1) shall

25 be exercised by the Secretaries of the military departments
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1 under regulations prescribed by the Secretary of De2 fense.’’.

3 SEC. 554. AMENDMENTS TO EDUCATION LOAN REPAYMENT

4 PROGRAMS.

5 (a) GENERAL EDUCATION LOAN REPAYMENT PRO6 GRAM.—Section 2171(a)(1) of title 10, United States

7 Code, is amended—

8 (1) by striking out ‘‘or’’ at the end of subpara9 graph (A);

10 (2) by redesignating subparagraph (B) as sub11 paragraph (C); and

12 (3) by inserting after subparagraph (A) the fol13 lowing new subparagraph (B):

14 ‘‘(B) any loan made under part D of such title

15 (the William D. Ford Federal Direct Loan Program,

16 20 U.S.C. 1087a et seq.); or’’.

17 (b) EDUCATION LOAN REPAYMENT PROGRAM FOR

18 ENLISTED MEMBERS OF SELECTED RESERVE WITH

19 CRITICAL SPECIALTIES.—Section 16301(a)(1) of such

20 title is amended—

21 (1) by striking out ‘‘or’’ at the end of subpara22 graph (A);

23 (2) by redesignating subparagraph (B) as sub24 paragraph (C); and
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1 (3) by inserting after subparagraph (A) the fol2 lowing new subparagraph (B):

3 ‘‘(B) any loan made under part D of such title

4 (the William D. Ford Federal Direct Loan Program,

5 20 U.S.C. 1087a et seq.); or’’.

6 (c) EDUCATION LOAN REPAYMENT PROGRAM FOR

7 HEALTH PROFESSIONS OFFICERS SERVING IN SELECTED

8 RESERVE WITH WARTIME CRITICAL MEDICAL SKILL

9 SHORTAGES.—Section 16302(a) of such title is amend10 ed—

11 (1) by redesignating paragraphs (2) through

12 (4) as paragraphs (3) through (5) respectively; and

13 (2) by inserting after paragraph (1) the follow14 ing new paragraph (2):

15 ‘‘(2) any loan made under part D of such title

16 (the William D. Ford Federal Direct Loan Program,

17 20 U.S.C. 1087a et seq.); or’’.

18 SEC. 555. RECOGNITION BY STATES OF LIVING WILLS OF

19 MEMBERS, CERTAIN FORMER MEMBERS, AND

20 THEIR DEPENDENTS.

21 (a) RECOGNITION BY STATES REQUIRED.—(1) Chap22 ter 53 of title 10, United States Code, is amended by in23 serting after section 1044b the following new section:
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1 ‘‘§ 1044c. Military advance medical directives: re2 quirement for recognition by States

3 ‘‘(a) INSTRUMENTS TO BE GIVEN LEGAL EFFECT

4 WITHOUT REGARD TO STATE LAW.—A military advance

5 medical directive—

6 ‘‘(1) is exempt from any requirement of form,

7 substance, formality, or recording that is provided

8 for advance medical directives under the laws of a

9 State; and

10 ‘‘(2) shall be given the same legal effect as an

11 advance medical directive prepared and executed in

12 accordance with the laws of the State concerned.

13 ‘‘(b) MILITARY ADVANCE MEDICAL DIRECTIVES.—

14 For the purposes of this section, a military advance medi15 cal directive is any written declaration regarding future

16 medical treatment that—

17 ‘‘(1) is executed by a person eligible for legal

18 assistance under section 1044(a) of this title or reg19 ulations of the Secretary concerned; and

20 ‘‘(2) is intended—

21 ‘‘(A) to provide, withdraw, or withhold life22 prolonging procedures, including hydration and

23 sustenance, in the event of a terminal condition

24 or persistent vegetative state of the declarant;

25 or
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1 ‘‘(B) to appoint another person to make

2 health care decisions for the declarant under

3 circumstances stated in the declaration if the

4 declarant is determined to be incapable of mak5 ing informed health care decisions.

6 ‘‘(c) STATEMENT TO BE INCLUDED.—Under regula7 tions prescribed by the Secretary concerned, a written dec8 laration described in subsection (b) shall contain a state9 ment that clearly indicates the purpose of the declaration

10 to serve as the military advance medical directive of the

11 declarant. However, the failure of a military advance med12 ical directive to include such a statement shall not be con13 strued to negate the legal effect of the directive under sub14 section (a).

15 ‘‘(d) STATE DEFINED.—In this section, the term

16 ‘State’ includes the District of Columbia, the Common17 wealth of Puerto Rico, and a possession of the United

18 States.’’.

19 (2) The table of sections at the beginning of such

20 chapter is amended by inserting after the item relating

21 to section 1044b the following new item:

‘‘1044c. Military advance medical directives: requirement for recognition by

States.’’.

22 (b) EFFECTIVE DATE.—Section 1044c of title 10,

23 United States Code, as added by subsection (a), shall

24 apply with respect to any military advance medical direc-
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1 tive described in such section declared before, on, or after

2 the date of the enactment of this Act.

3 SEC. 556. TRANSITIONAL COMPENSATION FOR DEPEND4 ENTS OF MEMBERS OF THE ARMED FORCES

5 SEPARATED FOR DEPENDENT ABUSE.

6 (a) MANDATORY PROGRAM.—Subsection (a) of sec7 tion 1059 of title 10, United States Code, is amended by

8 striking out ‘‘may each establish a program’’ and inserting

9 in lieu thereof ‘‘shall each establish a program’’.

10 (b) PAYMENT TO DEPENDENTS OF MEMBERS NOT

11 DISCHARGED.—Subsection (d) of such section is amended

12 by striking out ‘‘of a separation from active duty as’’ in

13 the first sentence.

14 SEC. 557. ARMY RANGER TRAINING.

15 (a) IN GENERAL.—(1) Chapter 401 of title 10, Unit16 ed States Code, is amended by inserting after section 4302

17 the following new section:

18 ‘‘§ 4303. Army Ranger Training: instructor staffing;

19 safety

20 ‘‘(a) LEVELS OF PERSONNEL ASSIGNED TO BE NOT

21 LESS THAN NUMBER REQUIRED.—(1) The Secretary of

22 the Army shall ensure that at all times the number of offi23 cers, and the number of enlisted members, permanently

24 assigned to the Army Ranger Training Brigade (or other

25 organizational element of the Army primarily responsible
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1 for ranger student training) are not less than the required

2 manning spaces for that brigade.

3 ‘‘(2) If at any time the number of officers, or the

4 number of enlisted members, permanently assigned to the

5 Ranger Training Brigade is less than the required man6 ning spaces for officers, or for enlisted members, as the

7 case may be, for the Brigade, the Secretary of the Army

8 shall submit to Congress a notice of such shortage, to9 gether with a statement of the reasons for the shortage

10 and of the expected date when the number assigned will

11 be not less than the required manning spaces, in accord12 ance with paragraph (1).

13 ‘‘(b) REQUIRED MANNING SPACES.—(1) The Sec14 retary of the Army may not (except as provided in para15 graph (3)) reduce the required manning spaces for the

16 Ranger Training Brigade below the baseline required

17 manning spaces.

18 ‘‘(2) In this section:

19 ‘‘(A) The term ‘required manning spaces’

20 means the number of personnel spaces for officers,

21 and the number of personnel spaces for enlisted

22 members, that are designated in Army authorization

23 documents as the number required to accomplish the

24 missions of a particular unit or organization.
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1 ‘‘(B) The term ‘baseline required manning

2 spaces’ means the required manning spaces for the

3 Army Ranger Training Brigade as of February 10,

4 1995, of 94 officers and 658 enlisted members.

5 ‘‘(3) The Secretary may (subject to paragraph (4))

6 make reductions in required manning spaces for the Army

7 Ranger Training Brigade from the baseline required man8 ning spaces if—

9 ‘‘(A) reductions in ranger student training

10 loads result in decreased instructor workload; and

11 ‘‘(B) one or more of the three major phases of

12 the Ranger Course (conducted at Fort Benning,

13 Georgia, at the Mountain Ranger Camp, and in

14 Florida) is eliminated.

15 ‘‘(4) Before making a reduction authorized by para16 graph (3) in required manning spaces, the Secretary of

17 the Army shall submit to Congress a report on the pro18 posed reduction. Such a reduction may not be made unless

19 the report includes a certification by the Secretary that

20 the reduction will not reduce the ability of the commander

21 of the Ranger Training Brigade to conduct training safely.

22 The report shall include a description of the reduction (in23 cluding specification of the number of officers and the

24 number of enlisted members that will be considered to be

25 required to carry out the missions of the Army Ranger
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1 Training Brigade after the reduction) and shall set forth

2 the rationale of the Secretary for the reduction.

3 ‘‘(c) TRAINING SAFETY CELLS.—(1) The Secretary

4 of the Army shall establish and maintain an organizational

5 entity known as a ‘safety cell’ as part of the organizational

6 elements of the Army responsible for conducting each of

7 the three major phases of the Ranger Course. The safety

8 cell in each different geographic area of Ranger Course

9 training shall be comprised of personnel who have suffi10 cient continuity and experience in that geographic area of

11 such training to be knowledgeable of the local conditions

12 year-round, including conditions of terrain, weather,

13 water, and climate and other conditions and the potential

14 effect on those conditions on Ranger student training and

15 safety.

16 ‘‘(2) Members of each safety cell shall be assigned

17 in sufficient numbers to serve as advisers to the officers

18 in charge of the major phase of Ranger training and shall

19 assist those officers in making informed daily ‘go’ and ‘no20 go’ decisions regarding training in light of all relevant con21 ditions, including conditions of terrain, weather, water,

22 and climate and other conditions.’’.

23 (2) The table of sections at the beginning of such

24 chapter is amended by inserting after the item relating

25 to section 4302 the following new item:

‘‘4303. Army Ranger Training: instructor staffing; safety.’’.
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1 (b) ACCOMPLISHMENT OF REQUIRED MANNING LEV2 ELS.—(1) If, as of the date of the enactment of this Act,

3 the number of officers, or the number of enlisted members,

4 permanently assigned to the Ranger Training Brigade is

5 not 100 percent (or more) of the requirement specified in

6 subsection (b) of section 4303 of title 10, United States

7 Code, as added by subsection (a), the Secretary of the

8 Army—

9 (A) shall take such steps as necessary to accom10 plish that requirement within 12 months after such

11 date of enactment; and

12 (B) not later than 90 days after such date of

13 enactment, shall submit to Congress a plan to

14 achieve and maintain that requirement.

15 (2) If the Secretary does not accomplish the require16 ment referred to in paragraph (1) with respect to both

17 officers and enlisted members within 12 months after the

18 date of the enactment of this Act (as required by para19 graph (1)(A)), the Secretary shall halt all training activi20 ties of the Ranger Training Brigade until the requirement

21 is met.

22 SEC. 558. REPEAL OF CERTAIN CIVIL-MILITARY PROGRAMS.

23 (a) REPEAL OF CIVIL-MILITARY COOPERATIVE AC24 TION PROGRAM.—(1) Section 410 of title 10, United

25 States Code, and section 1081(a) of the National Defense
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1 Authorization Act for Fiscal Year 1993 (Public Law 102–

2 484; 10 U.S.C. 410 note) are repealed:

3 (2) The table of sections at the beginning of chapter

4 20 of title 10, United States Code, is amended by striking

5 out the item relating to section 410.

6 (b) REPEAL OF RELATED PROVISIONS.—The follow7 ing sections of the National Defense Authorization Act for

8 Fiscal Year 1993 (Public Law 102–484) are repealed:

9 (1) Section 1045 (10 U.S.C. 410 note), relating

10 to a pilot outreach program to reduce demand for il11 legal drugs.

12 (2) Section 1091 (32 U.S.C. 501 note), relating

13 to the National Guard Civilian Youth Opportunities

14 Program.

15 (c) TERMINATION OF SUPPORT OF CIVILIAN COMMU16 NITY CORPS.—(1) The Secretary of Defense may not pro17 vide support to, or participate in, the Civilian Community

18 Corps Demonstration Program established under subtitle

19 E of title I of the National and Community Service Act

20 of 1990 (42 U.S.C. 12611–12626) or the Civilian Commu21 nity Corps required as part of that demonstration pro22 gram.

23 (2) Section 1093 of the National Defense Authoriza24 tion Act for Fiscal Year 1993 (Public Law 102–484; 42

25 U.S.C. 12612 note), relating to coordination between the
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1 National Guard Civilian Youth Opportunities Pilot Pro2 gram and the Civilian Community Corps Demonstration

3 Program, is repealed.

4 SEC. 559. ELIGIBILITY FOR ARMED FORCES EXPEDITION5 ARY MEDAL BASED UPON SERVICE IN EL SAL6 VADOR.

7 (a) IN GENERAL.—For the purpose of determining

8 eligibility of members and former members of the Armed

9 Forces for the Armed Forces Expeditionary Medal, the

10 country of El Salvador during the period beginning on

11 January 1, 1981 and ending on February 1, 1992, shall

12 be treated as having been designated as an area and a

13 period of time in which members of the Armed Forces par14 ticipated in operations in significant numbers and other15 wise met the general requirements for the award of that

16 medal.

17 (b) INDIVIDUAL DETERMINATION.—The Secretary of

18 the military department concerned shall determine wheth19 er individual members or former members of the Armed

20 Forces who served in El Salvador during the period begin21 ning on January 1, 1981 and ending on February 1, 1992

22 meet the individual service requirements for award of the

23 Armed Forces Expeditionary Medal as established in ap24 plicable regulations. Such determinations shall be made as
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1 expeditiously as possible after the date of the enactment

2 of this Act.

3 SEC. 560. REVISION AND CODIFICATION OF MILITARY FAM4 ILY ACT AND MILITARY CHILD CARE ACT.

5 (a) IN GENERAL.—(1) Subtitle A of title 10, United

6 States Code, is amended by inserting after chapter 87 the

7 following new chapter:

8 ‘‘CHAPTER 88—MILITARY FAMILY

9 PROGRAMS AND MILITARY CHILD CARE

‘‘Subchapter Sec.

‘‘I. Military Family Programs ......................................................... 1781

‘‘II. Military Child Care .................................................................... 1791

10 ‘‘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.

11 ‘‘§ 1781. Office of Family Policy

12 ‘‘(a) ESTABLISHMENT.—There is in the Office of the

13 Secretary of Defense an Office of Family Policy (herein14 after in this section referred to as the ‘Office’). The Office

15 shall be under the Assistant Secretary of Defense for

16 Force Management and Personnel.

17 ‘‘(b) DUTIES.—The Office—
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1 ‘‘(1) shall coordinate programs and activities of

2 the military departments to the extent that they re3 late to military families; and

4 ‘‘(2) shall make recommendations to the Sec5 retaries of the military departments with respect to

6 programs and policies regarding military families.

7 ‘‘(c) STAFF.—The Office shall have not less than five

8 professional staff members.

9 ‘‘§ 1782. Surveys of military families

10 ‘‘(a) AUTHORITY.—The Secretary of Defense may

11 conduct surveys of members of the armed forces on active

12 duty or in an active status, members of the families of

13 such members, and retired members of the armed forces

14 to determine the effectiveness of Federal programs relat15 ing to military families and the need for new programs.

16 ‘‘(b) RESPONSES TO BE VOLUNTARY.—Responses to

17 surveys conducted under this section shall be voluntary.

18 ‘‘(c) FEDERAL RECORDKEEPING REQUIREMENTS.—

19 With respect to such surveys, family members of members

20 of the armed forces and reserve and retired members of

21 the armed forces shall be considered to be employees of

22 the United States for purposes of section 3502(4)(A) of

23 title 44.
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1 ‘‘§ 1783. Family members serving on advisory commit2 tees

3 ‘‘A committee within the Department of Defense

4 which advises or assists the Department in the perform5 ance of any function which affects members of military

6 families and which includes members of military families

7 in its membership shall not be considered an advisory com8 mittee under section 3(2) of the Federal Advisory Com9 mittee Act (5 U.S.C. App.) solely because of such member10 ship.

11 ‘‘§ 1784. Employment opportunities for military

12 spouses

13 ‘‘(a) AUTHORITY.—The President shall order such

14 measures as the President considers necessary to increase

15 employment opportunities for spouses of members of the

16 armed forces. Such measures may include—

17 ‘‘(1) excepting, pursuant to section 3302 of title

18 5, from the competitive service positions in the De19 partment of Defense located outside of the United

20 States to provide employment opportunities for

21 qualified spouses of members of the armed forces in

22 the same geographical area as the permanent duty

23 station of the members; and

24 ‘‘(2) providing preference in hiring for positions

25 in nonappropriated fund activities to qualified

26 spouses of members of the armed forces stationed in
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1 the same geographical area as the nonappropriated

2 fund activity for positions in wage grade UA–8 and

3 below and equivalent positions and for positions paid

4 at hourly rates.

5 ‘‘(b) REGULATIONS.—The Secretary of Defense shall

6 prescribe regulations—

7 ‘‘(1) to implement such measures as the Presi8 dent orders under subsection (a);

9 ‘‘(2) to provide preference to qualified spouses

10 of members of the armed forces in hiring for any ci11 vilian position in the Department of Defense if the

12 spouse is among persons determined to be best

13 qualified for the position and if the position is lo14 cated in the same geographical area as the perma15 nent duty station of the member;

16 ‘‘(3) to ensure that notice of any vacant posi17 tion in the Department of Defense is provided in a

18 manner reasonably designed to reach spouses of

19 members of the armed forces whose permanent duty

20 stations are in the same geographic area as the area

21 in which the position is located; and

22 ‘‘(4) to ensure that the spouse of a member of

23 the armed forces who applies for a vacant position

24 in the Department of Defense shall, to the extent

25 practicable, be considered for any such position lo-
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1 cated in the same geographic area as the permanent

2 duty station of the member.

3 ‘‘(c) STATUS OF PREFERENCE ELIGIBLES.—Nothing

4 in this section shall be construed to provide a spouse of

5 a member of the armed forces with preference in hiring

6 over an individual who is a preference eligible.

7 ‘‘§ 1785. Youth sponsorship program

8 ‘‘(a) REQUIREMENT.—The Secretary of Defense shall

9 require that there be at each military installation a youth

10 sponsorship program to facilitate the integration of de11 pendent children of members of the armed forces into new

12 surroundings when moving to that military installation as

13 a result of a parent’s permanent change of station.

14 ‘‘(b) DESCRIPTION OF PROGRAMS.—The program at

15 each installation shall provide for involvement of depend16 ent children of members presently stationed at the military

17 installation and shall be directed primarily toward children

18 in their preteen and teenage years.

19 ‘‘§ 1786. Dependent student travel within the United

20 States

21 ‘‘Funds available to the Department of Defense for

22 the travel and transportation of dependent students of

23 members of the armed forces stationed overseas may be

24 obligated for transportation allowances for travel within

25 or between the contiguous States.
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1 ‘‘§ 1787. Reporting of child abuse

2 ‘‘(a) IN GENERAL.—The Secretary of Defense shall

3 request each State to provide for the reporting to the Sec4 retary of any report the State receives of known or sus5 pected instances of child abuse and neglect in which the

6 person having care of the child is a member of the armed

7 forces (or the spouse of the member).

8 ‘‘(b) DEFINITION.—In this section, the term ‘child

9 abuse and neglect’ has the meaning provided in section

10 3(1) of the Child Abuse Prevention and Treatment Act

11 (42 U.S.C. 5102).

12 ‘‘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.

13 ‘‘§ 1791. Funding for military child care

14 ‘‘It is the policy of Congress that the amount of ap15 propriated funds available during a fiscal year for operat16 ing expenses for military child development centers and

17 programs shall be not less than the amount of child care

18 fee receipts that are estimated to be received by the De19 partment of Defense during that fiscal year.
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1 ‘‘§ 1792. Child care employees

2 ‘‘(a) REQUIRED TRAINING.—(1) The Secretary of

3 Defense shall prescribe regulations implementing, a train4 ing program for child care employees. Those regulations

5 shall apply uniformly among the military departments.

6 Subject to paragraph (2), satisfactory completion of the

7 training program shall be a condition of employment of

8 any person as a child care employee.

9 ‘‘(2) Under those regulations, the Secretary shall re10 quire that each child care employee complete the training

11 program not later than six months after the date on which

12 the employee is employed as a child care employee.

13 ‘‘(3) The training program established under this

14 subsection shall cover, at a minimum, training in the fol15 lowing:

16 ‘‘(A) Early childhood development.

17 ‘‘(B) Activities and disciplinary techniques ap18 propriate to children of different ages.

19 ‘‘(C) Child abuse prevention and detection.

20 ‘‘(D) Cardiopulmonary resuscitation and other

21 emergency medical procedures.

22 ‘‘(b) TRAINING AND CURRICULUM SPECIALISTS.—(1)

23 The Secretary of Defense shall require that at least one

24 employee at each military child development center be a

25 specialist in training and curriculum development. The
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1 Secretary shall ensure that such employees have appro2 priate credentials and experience.

3 ‘‘(2) The duties of such employees shall include the

4 following:

5 ‘‘(A) Special teaching activities at the center.

6 ‘‘(B) Daily oversight and instruction of other

7 child care employees at the center.

8 ‘‘(C) Daily assistance in the preparation of les9 son plans.

10 ‘‘(D) Assistance in the center’s child abuse pre11 vention and detection program.

12 ‘‘(E) Advising the director of the center on the

13 performance of other child care employees.

14 ‘‘(3) Each employee referred to in paragraph (1) shall

15 be an employee in a competitive service position.

16 ‘‘(c) COMPETITIVE RATES OF PAY.—For the purpose

17 of providing military child development centers with a

18 qualified and stable civilian workforce, employees at a

19 military installation who are directly involved in providing

20 child care and are paid from nonappropriated funds—

21 ‘‘(1) in the case of entry-level employees, shall

22 be paid at rates of pay competitive with the rates of

23 pay paid to other entry-level employees at that in24 stallation who are drawn from the same labor pool;

25 and
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1 ‘‘(2) in the case of other employees, shall be

2 paid at rates of pay substantially equivalent to the

3 rates of pay paid to other employees at that installa4 tion with similar training, seniority, and experience.

5 ‘‘(d) EMPLOYMENT PREFERENCE PROGRAM FOR

6 MILITARY SPOUSES.—(1) The Secretary of Defense shall

7 conduct a program under which qualified spouses of mem8 bers of the armed forces shall be given a preference in

9 hiring for the position of child care employee in a position

10 paid from nonappropriated funds if the spouse is among

11 persons determined to be best qualified for the position.

12 ‘‘(2) A spouse who is provided a preference under this

13 subsection at a military child development center may not

14 be precluded from obtaining another preference, in accord15 ance with section 1794 of this title, in the same geographic

16 area as the military child development center.

17 ‘‘(e) COMPETITIVE SERVICE POSITION DEFINED.—

18 In this section, the term ‘competitive service position’

19 means a position in the competitive service, as defined in

20 section 2102(a)(1) of title 5.

21 ‘‘§ 1793. Parent fees

22 ‘‘(a) IN GENERAL.—The Secretary of Defense shall

23 prescribe regulations establishing fees to be charged par24 ents for the attendance of children at military child devel25 opment centers. Those regulations shall be uniform for the
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1 military departments and shall require that, in the case

2 of children who attend the centers on a regular basis, the

3 fees shall be based on family income.

4 ‘‘(b) LOCAL WAIVER AUTHORITY.—The Secretary of

5 Defense may provide authority to installation command6 ers, on a case-by-case basis, to establish fees for attend7 ance of children at child development centers at rates

8 lower than those prescribed under subsection (a) if the

9 rates prescribed under subsection (a) are not competitive

10 with rates at local non-military child development centers.

11 ‘‘§ 1794. Child abuse prevention and safety at facili12 ties

13 ‘‘(a) CHILD ABUSE TASK FORCE.—The Secretary of

14 Defense shall maintain a special task force to respond to

15 allegations of widespread child abuse at a military installa16 tion. The task force shall be composed of personnel from

17 appropriate disciplines, including, where appropriate, med18 icine, psychology, and childhood development. In the case

19 of such allegations, the task force shall provide assistance

20 to the commander of the installation, and to parents at

21 the installation, in helping them to deal with such allega22 tions.

23 ‘‘(b) NATIONAL HOTLINE.—(1) The Secretary of De24 fense shall maintain a national telephone number for per25 sons to use to report suspected child abuse or safety viola-
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1 tions at a military child development center or family

2 home day care site. The Secretary shall ensure that such

3 reports may be made anonymously if so desired by the

4 person making the report. The Secretary shall establish

5 procedures for following up on complaints and information

6 received over that number.

7 ‘‘(2) The Secretary shall publicize the existence of the

8 number.

9 ‘‘(c) ASSISTANCE FROM LOCAL AUTHORITIES.—The

10 Secretary of Defense shall prescribe regulations requiring

11 that, in a case of allegations of child abuse at a military

12 child development center or family home day care site, the

13 commander of the military installation or the head of the

14 task force established under subsection (a) shall seek the

15 assistance of local child protective authorities if such as16 sistance is available.

17 ‘‘(d) SAFETY REGULATIONS.—The Secretary of De18 fense shall prescribe regulations on safety and operating

19 procedures at military child development centers. Those

20 regulations shall apply uniformly among the military de21 partments.

22 ‘‘(e) INSPECTIONS.—The Secretary of Defense shall

23 require that each military child development center be in24 spected not less often than four times a year. Each such

25 inspection shall be unannounced. At least one inspection
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1 a year shall be carried out by a representative of the in2 stallation served by the center, and one inspection a year

3 shall be carried out by a representative of the major com4 mand under which that installation operates.

5 ‘‘(f) REMEDIES FOR VIOLATIONS.—(1) Except as

6 provided in paragraph (2), any violation of a safety,

7 health, or child welfare law or regulation (discovered at

8 an inspection or otherwise) at a military child development

9 center shall be remedied immediately.

10 ‘‘(2) In the case of a violation that is not life threat11 ening, the commander of the major command under which

12 the installation concerned operates may waive the require13 ment that the violation be remedied immediately for a pe14 riod of up to 90 days beginning on the date of the discov15 ery of the violation. If the violation is not remedied as

16 of the end of that 90-day period, the military child devel17 opment center shall be closed until the violation is rem18 edied. The Secretary of the military department concerned

19 may waive the preceding sentence and authorize the center

20 to remain open in a case in which the violation cannot

21 reasonably be remedied within that 90-day period or in

22 which major facility reconstruction is required.

23 ‘‘(3) If a military child development center is closed

24 under paragraph (2), the Secretary of the military depart25 ment concerned shall promptly submit to the Committee
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1 on Armed Services of the Senate and the Committee on

2 National Security of the House of Representatives a re3 port notifying those committees of the closing. The report

4 shall include—

5 ‘‘(A) notice of the violation that resulted in the

6 closing and the cost of remedying the violation; and

7 ‘‘(B) a statement of the reasons why the viola8 tion has not been remedied as of the time of the re9 port.

10 ‘‘§ 1795. Parent partnerships with child development

11 centers

12 ‘‘(a) PARENT BOARDS.—The Secretary of Defense

13 shall require that there be established at each military

14 child development center a board of parents, to be com15 posed of parents of children attending the center. The

16 board shall meet periodically with staff of the center and

17 the commander of the installation served by the center for

18 the purpose of discussing problems and concerns. The

19 board, together with the staff of the center, shall be re20 sponsible for coordinating the parent participation pro21 gram described in subsection (b).

22 ‘‘(b) PARENT PARTICIPATION PROGRAMS.—The Sec23 retary of Defense shall require the establishment of a par24 ent participation program at each military child develop25 ment center. As part of such program, the Secretary of
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1 Defense may establish fees for attendance of children at

2 such a center, in the case of parents who participate in

3 the parent participation program at that center, at rates

4 lower than the rates that otherwise apply.

5 ‘‘§ 1796. Subsidies for family home day care

6 ‘‘The Secretary of Defense may use appropriated

7 funds available for military child care purposes to provide

8 assistance to family home day care providers so that fam9 ily home day care services can be provided to members

10 of the armed forces at a cost comparable to the cost of

11 services provided by military child development centers.

12 The Secretary shall prescribe regulations for the provision

13 of such assistance.

14 ‘‘§ 1797. Early childhood education program

15 ‘‘The Secretary of Defense shall require that all mili16 tary child development centers meet standards of oper17 ation necessary for accreditation by an appropriate na18 tional early childhood programs accrediting body.

19 ‘‘§ 1798. Definitions

20 ‘‘In this subchapter:

21 ‘‘(1) The term ‘military child development cen22 ter’ means a facility on a military installation (or on

23 property under the jurisdiction of the commander of

24 a military installation) at which child care services

25 are provided for members of the armed forces or any
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1 other facility at which such child care services are

2 provided that is operated by the Secretary of a mili3 tary department.

4 ‘‘(2) The term ‘family home day care’ means

5 home-based child care services that are provided for

6 members of the armed forces by an individual who

7 (A) is certified by the Secretary of the military de8 partment concerned as qualified to provide those

9 services, and (B) provides those services on a regu10 lar basis for compensation.

11 ‘‘(3) The term ‘child care employee’ means a ci12 vilian employee of the Department of Defense who

13 is employed to work in a military child development

14 center (regardless of whether the employee is paid

15 from appropriated funds or nonappropriated funds).

16 ‘‘(4) The term ‘child care fee receipts’ means

17 those nonappropriated funds that are derived from

18 fees paid by members of the armed forces for child

19 care services provided at military child development

20 centers.’’.

21 (2) The tables of chapters at the beginning of subtitle

22 A, and at the beginning of part II of subtitle A, of title

23 10, United States Code, are amended by inserting after

24 the item relating to chapter 87 the following new item:

‘‘88. Military Family Programs and Military Child Care ... 1781’’.
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1 (b) REPORT ON FIVE-YEAR DEMAND FOR CHILD

2 CARE.—(1) Not later than the date of the submission of

3 the budget for fiscal year 1997 pursuant to section 1105

4 of title 31, United States Code, the Secretary of Defense

5 shall submit to Congress a report on the expected demand

6 for child care by military and civilian personnel of the De7 partment of Defense during fiscal years 1997 through

8 2001.

9 (2) The report shall include—

10 (A) a plan for meeting the expected child care

11 demand identified in the report; and

12 (B) an estimate of the cost of implementing

13 that plan.

14 (3) The report shall also include a description of

15 methods for monitoring family home day care programs

16 of the military departments.

17 (c) PLAN FOR IMPLEMENTATION OF ACCREDITATION

18 REQUIREMENT.—The Secretary of Defense shall submit

19 to the Committee on Armed Services of the Senate and

20 the Committee on National Security of the House of Rep21 resentatives a plan for carrying out the requirements of

22 section 1787 of title 10, United States Code, as added by

23 subsection (a). The plan shall be submitted not later than

24 April 1, 1997.
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1 (d) CONTINUATION OF DELEGATION OF AUTHORITY

2 WITH RESPECT TO HIRING PREFERENCE FOR QUALIFIED

3 MILITARY SPOUSES.—The provisions of Executive Order

4 No. 12568, issued October 2, 1986 (10 U.S.C. 113 note),

5 shall apply as if the reference in that Executive order to

6 section 806(a)(2) of the Department of Defense Author7 ization Act of 1986 refers to section 1784 of title 10, Unit8 ed States Code, as added by subsection (a).

9 (e) CONFORMING AMENDMENT.—Effective October

10 1, 1995, section 1782(c) of title 10, United States Code,

11 as added by subsection (a), is amended by striking out

12 ‘‘section 3502(4)(A) of title 44’’ and inserting in lieu

13 thereof ‘‘section 3502(3)(A)(i) of title 44’’.

14 (f) REPEALER.—The following provisions of law are

15 repealed:

16 (1) The Military Family Act of 1985 (title VIII

17 of Public Law 99–145; 10 U.S.C. 113 note).

18 (2) The Military Child Care Act of 1989 (title

19 XV of Public Law 101–189; 10 U.S.C. 113 note).

20 SEC. 561. DISCHARGE OF MEMBERS OF THE ARMED

21 FORCES WHO HAVE THE HIV–1 VIRUS.

22 (a) IN GENERAL.—(1) Section 1177 of title 10, Unit23 ed States Code, is amended to read as follows:
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1 ‘‘§ 1177. Members infected with HIV–1 virus: manda2 tory discharge or retirement

3 ‘‘(a) MANDATORY SEPARATION.—A member of the

4 armed forces who is HIV-positive shall be separated. Such

5 separation shall be made on a date determined by the Sec6 retary concerned, which shall be as soon as practicable

7 after the date on which the determination is made that

8 the member is HIV-positive and not later than the last

9 day of the sixth month beginning after such date.

10 ‘‘(b) FORM OF SEPARATION.—If a member to be sep11 arated under this section is eligible to retire under any

12 provision of law or to be transferred to the Fleet Reserve

13 or Fleet Marine Corps Reserve, the member shall be so

14 retired or so transferred. Otherwise, the member shall be

15 discharged. The characterization of the service of the

16 member shall be determined without regard to the deter17 mination that the member is HIV-positive.

18 ‘‘(c) DEFERRAL OF SEPARATION FOR MEMBERS IN

19 18-YEAR RETIREMENT SANCTUARY.—In the case of a

20 member to be discharged under this section who on the

21 date on which the member is to be discharged is within

22 two years of qualifying for retirement under any provision

23 of law, or of qualifying for transfer to the Fleet Reserve

24 or Fleet Marine Corps Reserve under section 6330 of this

25 title, the member may, as determined by the Secretary

26 concerned, be retained on active duty until the member
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1 is qualified for retirement or transfer to the Fleet Reserve

2 or Fleet Marine Corps Reserve, as the case may be, and

3 then be so retired or transferred, unless the member is

4 sooner retired or discharged under any other provision of

5 law.

6 ‘‘(d) SEPARATION TO BE CONSIDERED INVOLUN7 TARY.—A separation under this section shall be consid8 ered to be an involuntary separation for purposes of any

9 other provision of law.

10 ‘‘(e) COUNSELING ABOUT AVAILABLE MEDICAL

11 CARE.—A member to be separated under this section shall

12 be provided information, in writing, before such separation

13 of the available medical care (through the Department of

14 Veterans Affairs and otherwise) to treat the member’s

15 condition. Such information shall include identification of

16 specific medical locations near the member’s home of

17 record or point of discharge at which the member may

18 seek necessary medical care.

19 ‘‘(f) HIV-POSITIVE MEMBERS.—A member shall be

20 considered to be HIV-positive for purposes of this section

21 if there is serologic evidence that the member is infected

22 with the virus known as Human Immunodeficiency Virus–

23 1 (HIV–1), the virus most commonly associated with the

24 acquired immune deficiency syndrome (AIDS) in the Unit25 ed States. Such serologic evidence shall be considered to
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1 exist if there is a reactive result given by an enzyme-linked

2 immunosorbent assay (ELISA) serologic test that is con3 firmed by a reactive and diagnostic immunoelectrophoresis

4 test (Western blot) on two separate samples. Any such se5 rologic test must be one that is approved by the Food and

6 Drug Administration.’’.

7 (2) The item relating to such section in the table of

8 sections at the beginning of chapter 59 of such title is

9 amended to read as follows:

‘‘1177. Members infected with HIV–1 virus: mandatory discharge or retirement.’’.

10 (b) EFFECTIVE DATE.—Section 1177 of title 10,

11 United States Code, as amended by subsection (a), applies

12 with respect to members of the Armed Forces determined

13 to be HIV-positive before, on, or after the date of the en14 actment of this Act. In the case of a member of the Armed

15 Forces determined to be HIV-positive before such date,

16 the deadline for separation of the member under sub17 section (a) of such section, as so amended, shall be deter18 mined from the date of the enactment of this Act (rather

19 than from the date of such determination).
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1 SEC. 562. AUTHORITY TO APPOINT BRIGADIER GENERAL

2 CHARLES E. YEAGER, UNITED STATES AIR

3 FORCES (RETIRED) TO THE GRADE OF MAJOR

4 GENERAL ON THE RETIRED LIST.

5 The President is authorized to appoint, by and with

6 the advice and consent of the Senate, Brigadier General

7 Charles E. Yeager, United States Air Force (retired), to

8 the grade of major general on the retired list of the Air

9 Force. Any such appointment shall not affect the retired

10 pay or other benefits of Charles E. Yeager or any benefits

11 to which any other person is or may become entitled based

12 upon his service.

13 SEC. 563. DETERMINATION OF WHEREABOUTS AND STATUS

14 OF MISSING PERSONS.

15 (a) PURPOSE.—The purpose of this section is to en16 sure that any member of the Armed Forces, and any civil17 ian employee of the United States or contractor of the

18 United States who serves with or accompanies the Armed

19 Forces in the field under orders, is accounted for by the

20 United States (by the return of such person alive, by the

21 return of the remains of such person, or by the decision

22 that credible evidence exists to support another determina23 tion of the status of such person) and, as a general rule,

24 is not declared dead solely because of the passage of time.
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1 (b) IN GENERAL.—(1) Part II of subtitle A of title

2 10, United States Code, is amended by inserting after

3 chapter 75 the following new chapter:

4 ‘‘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.

5 ‘‘§ 1501. System for accounting for missing persons

6 ‘‘(a) OFFICE FOR MISSING PERSONNEL.—(1) The

7 Secretary of Defense shall establish within the Office of

8 the Secretary of Defense an office to have responsibility

9 for Department of Defense policy relating to missing per10 sons. Subject to the authority, direction, and control of

11 the Secretary of Defense, the responsibilities of the office

12 shall include—

13 ‘‘(A) policy, control, and oversight within the

14 Department of Defense of the entire process for in15 vestigation and recovery (including search and res16 cue) related to missing persons; and

17 ‘‘(B) coordination for the Department of De18 fense with other departments and agencies of the
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1 United States on all matters concerning missing per2 sons.

3 ‘‘(2) In carrying out the responsibilities of the office

4 established under this subsection, the head of the office

5 shall coordinate the efforts of that office with those of

6 other departments and agencies and other elements of the

7 Department of Defense for such purposes and shall be re8 sponsible for the coordination for such purposes within the

9 Department of Defense among the military departments,

10 the Joint Staff, and the commanders of the combatant

11 commands.

12 ‘‘(3) The office shall establish policies, which shall

13 apply uniformly through the Department of Defense, for

14 personnel recovery (including search and rescue).

15 ‘‘(4) The office shall establish procedures to be fol16 lowed by Department of Defense boards of inquiry, and

17 by officers reviewing the reports of such boards, under this

18 chapter.

19 ‘‘(b) OTHER DEPARTMENTS AND AGENCIES.—(1)

20 The Secretary of State shall designate an officer of the

21 Department of State to have responsibility within that De22 partment for matters relating to missing persons.

23 ‘‘(2) The Secretary of Transportation shall designate

24 an officer of the Department of Transportation to have
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1 responsibility within that Department for matters relating

2 to missing persons.

3 ‘‘(3) The Director of Central Intelligence shall des4 ignate an officer of the Central Intelligence Agency to

5 have responsibility within that Agency for matters relating

6 to missing persons.

7 ‘‘(4) The President shall direct the heads of such

8 other departments and agencies as the President considers

9 appropriate to make a similar designation for their respec10 tive departments and agencies.

11 ‘‘(c) UNIFORM DOD PROCEDURES.—(1) The Sec12 retary of Defense shall prescribe procedures, to apply uni13 formly through the Department of Defense, for—

14 ‘‘(A) the determination of the status of persons

15 described in subsection (d); and

16 ‘‘(B) for the systematic, comprehensive, and

17 timely collection, analysis, review, dissemination, and

18 periodic update of information related to such per19 sons.

20 ‘‘(2) Such procedures shall be prescribed in a single

21 directive applicable to all elements of the Department of

22 Defense.

23 ‘‘(3) As part of such procedures, the Secretary may

24 provide for the extension, on a case-by-case basis, of any

25 time limit specified in section 1502, 1503, or 1504 of this
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1 title. Any such extension may not be for a period in excess

2 of one-half of the period with respect to which the exten3 sion is provided. Subsequent extensions may be provided

4 on the same basis.

5 ‘‘(d) COVERED PERSONS.—Section 1502 of this title

6 applies in the case of the following persons:

7 ‘‘(1) Any member of the armed forces on active

8 duty who disappears as a result of a hostile action,

9 or under circumstances suggesting that the dis10 appearance is a result of a hostile action, and whose

11 status is undetermined or who is unaccounted for

12 (except under circumstances suggesting that the dis13 appearance is voluntary).

14 ‘‘(2) Any civilian employee of the United States

15 or employee of a contractor of the United States

16 who, while serving with or accompanying the armed

17 forces in the field, disappears under circumstances

18 described in paragraph (1) and whose status is un19 determined or who is unaccounted for (except under

20 circumstances suggesting that the disappearance is

21 voluntary).

22 ‘‘(e) PRIMARY NEXT OF KIN.—The individual who is

23 primary next of kin of a person described in subsection

24 (d) may for purposes of this chapter designate another

25 individual to act on behalf of that individual as primary
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1 next of kin. The Secretary of Defense shall treat an indi2 vidual so designated as if the individual designated were

3 the primary next of kin for purposes of this chapter. A

4 designation under this subsection may be revoked at any

5 time by the person who made the designation.

6 ‘‘(f) TERMINATION OF APPLICABILITY OF PROCE7 DURES WHEN MISSING PERSON IS ACCOUNTED FOR.—

8 The provisions of this chapter relating to boards of inquiry

9 and to actions by the Secretary concerned on the reports

10 of those boards shall cease to apply in the case of a miss11 ing person upon that person becoming accounted for or

12 otherwise being determined to be in a status other than

13 the status of missing or missing in action.

14 ‘‘§ 1502. Missing persons: initial report by unit com15 mander

16 ‘‘(a) PRELIMINARY ASSESSMENT AND RECOMMENDA17 TION BY COMMANDER.—After receiving information that

18 the whereabouts or status of a person described in section

19 1501(d) of this title is uncertain and that the absence of

20 the person may be involuntary, the commander of the unit,

21 facility, or area to or in which the person is assigned shall

22 make a preliminary assessment of the circumstances. If,

23 as a result of that assessment, the commander concludes

24 that the person is missing, the commander shall—
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1 ‘‘(1) recommend that the person be placed in a

2 missing status; and

3 ‘‘(2) not later than 48 hours after receiving

4 such information, transmit that recommendation to

5 the theater component commander with jurisdiction

6 over the missing person in accordance with proce7 dures prescribed under section 1501(c) of this title.

8 ‘‘(b) FORWARDING OF RECORDS.—The commander

9 making the initial assessment shall (in accordance with

10 procedures prescribed under section 1501(c) of this title)

11 safeguard and forward for official use any information re12 lating to the whereabouts or status of the person that re13 sult from the preliminary assessment or from actions

14 taken to locate the person.

15 ‘‘§ 1503. Initial board inquiry; actions of theater com16 ponent commander and head of the

17 agency

18 ‘‘(a) APPOINTMENT OF BOARD.—Not later than ten

19 days after receiving notification under section 1502(a)(2)

20 of this title that a person has been recommended for place21 ment in a missing status, the theater component com22 mander to whom the notification is transmitted shall ap23 point a board to conduct an inquiry into the whereabouts

24 and status of the person.
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1 ‘‘(b) INQUIRIES INVOLVING MORE THAN ONE MISS2 ING PERSON.—If it appears to the commander who ap3 points a board under this section that the absence or miss4 ing status of two or more persons is factually related, the

5 commander may appoint a single board under this section

6 to conduct the inquiry into the whereabouts or status of

7 all such persons.

8 ‘‘(c) COMPOSITION.—(1) A board appointed under

9 this section shall consist of at least one individual de10 scribed in paragraph (2) who has experience with and un11 derstanding of military operations or activities similar to

12 the operation or activity in which the person disappeared.

13 ‘‘(2) An individual referred to in paragraph (1) is the

14 following:

15 ‘‘(A) A military officer, in the case of an in16 quiry with respect to a member of the armed forces.

17 ‘‘(B) A civilian, in the case of an inquiry with

18 respect to a civilian employee of the United States

19 or of a contractor of the United States.

20 ‘‘(3) An individual may be appointed as a member

21 of a board under this section only if the individual has

22 a security clearance that affords the member access to all

23 information relating to the whereabouts and status of the

24 missing persons covered by the inquiry.
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1 ‘‘(d) DUTIES OF BOARD.—A board appointed to con2 duct an inquiry into the whereabouts or status of a miss3 ing person under this section shall—

4 ‘‘(1) collect, develop, and investigate all facts

5 and evidence relating to the disappearance, where6 abouts, or status of that person;

7 ‘‘(2) collect appropriate documentation of the

8 facts and evidence covered by the investigation;

9 ‘‘(3) analyze the facts and evidence, make find10 ings based on that analysis, and draw conclusions as

11 to the current whereabouts and status of the person;

12 and

13 ‘‘(4) with respect to each person covered by the

14 inquiry, recommend to the commander who ap15 pointed the board that—

16 ‘‘(A) the person be placed in a missing sta17 tus; or

18 ‘‘(B) the person be declared to have de19 serted, to be absent without leave, or to be

20 dead.

21 ‘‘(e) INQUIRY PROCEEDINGS.—(1) During the pro22 ceedings of an inquiry under this section, a board shall—

23 ‘‘(A) collect, record, and safeguard all facts,

24 documents, statements, photographs, tapes, mes25 sages, maps, sketches, reports, and other informa-
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1 tion (whether classified or unclassified) relating to

2 the whereabouts or status of each person covered by

3 the inquiry;

4 ‘‘(B) gather information relating to actions

5 taken to find the person, including any evidence of

6 the whereabouts or status of the person arising from

7 such actions; and

8 ‘‘(C) maintain a record of its proceedings.

9 ‘‘(2) The commander who appoints a board under

10 this section may request the commander of the combatant

11 command to provide such assistance as the board or the

12 commander may require for purposes of this section.

13 ‘‘(f) COUNSEL FOR MISSING PERSON.—(1) The com14 mander appointing a board to conduct an inquiry under

15 this section shall appoint counsel to represent each person

16 covered by the inquiry, or, in the case described by

17 1503(c) of this title, one counsel to represent all persons

18 covered by the inquiry. Counsel appointed under this para19 graph may be referred to as ‘missing person’s counsel’.

20 ‘‘(2) To be appointed as a missing person’s counsel,

21 a person must—

22 ‘‘(A) have the qualifications specified in section

23 827(b) of this title (article 27(b) of the Uniform

24 Code of Military Justice) for trial counsel or defense

25 counsel detailed for a general court-martial; and
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1 ‘‘(B) have a security clearance that affords the

2 counsel access to all information relating to the

3 whereabouts or status of the person or persons cov4 ered by the inquiry.

5 ‘‘(3) A missing person’s counsel—

6 ‘‘(A) shall have access to all facts and evidence

7 considered by the board during the proceedings

8 under the inquiry for which the counsel is appointed;

9 ‘‘(B) shall observe all official activities of the

10 board during such proceedings;

11 ‘‘(C) may question witnesses before the board;

12 and

13 ‘‘(D) shall monitor the deliberations of the

14 board.

15 ‘‘(4) A missing person’s counsel shall review the re16 port of the board under subsection (i) and submit to the

17 commander who appointed the board an independent re18 view of that report. That review shall be made an official

19 part of the record of the board.

20 ‘‘(g) ACCESS TO PROCEEDINGS.—The proceedings of

21 a board during an inquiry under this section shall be

22 closed to the public (including, with respect to any missing

23 person covered by the inquiry, the primary next of kin,

24 other members of the immediate family, and any other
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1 previously designated person designated under section 655

2 of this title).

3 ‘‘(h) RECOMMENDATION ON STATUS OF MISSING

4 PERSONS.—(1) Upon completion of its inquiry, a board

5 appointed under this section shall make a recommendation

6 to the commander who appointed the board as to the ap7 propriate determination of the current whereabouts or sta8 tus of each person whose whereabouts were covered by the

9 inquiry.

10 ‘‘(2)(A) A board may not recommend under para11 graph (1) that a person be declared dead unless the board

12 determines that the evidence before it established conclu13 sive proof of the death of the person.

14 ‘‘(B) In this paragraph, the term ‘conclusive proof

15 of death’ means evidence establishing that death is the

16 only credible explanation for the absence of the person.

17 ‘‘(i) REPORT.—(1) A board appointed under this sec18 tion shall submit to the commander who appointed it a

19 report on the inquiry carried out by the board. The report

20 shall include—

21 ‘‘(A) a discussion of the facts and evidence con22 sidered by the board in the inquiry;

23 ‘‘(B) the recommendation of the board under

24 subsection (h) with respect to each person covered

25 by the report; and
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1 ‘‘(C) disclosure of whether classified documents

2 and information were reviewed by the board or were

3 otherwise used by the board in forming rec4 ommendations under subparagraph (B).

5 ‘‘(2) A report under this subsection with respect to

6 a missing person shall be submitted not later than 45 days

7 after the date on which that person is first reported miss8 ing.

9 ‘‘(3) A report submitted under this subsection may

10 not be made public until one year after the date on which

11 the report is submitted.

12 ‘‘(j) REVIEW AND DETERMINATION OF STATUS BY

13 COMPONENT COMMANDER.—(1) Not later than 15 days

14 after the date of the receipt of a report under subsection

15 (i), the commander who appointed the board shall re16 view—

17 ‘‘(A) the report; and

18 ‘‘(B) the review of that report submitted under

19 subsection (f)(4) by the missing person’s counsel.

20 ‘‘(2) In reviewing a report under paragraph (1), the

21 commander receiving the report shall determine whether

22 or not the report is complete and free of administrative

23 error. If the commander determines that the report is in24 complete, or that the report is not free of administrative
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1 error, the commander may return the report to the board

2 for further action on the report by the board.

3 ‘‘(3) Upon a determination by the commander review4 ing a report under this subsection that the report is com5 plete and free of administrative error, the commander

6 shall make a determination of the status of each person

7 covered by the report.

8 ‘‘(4) The report, together with the determination

9 under paragraph (3), shall be promptly forwarded to the

10 commander of the combatant command for the geographic

11 area in which the missing person disappeared.

12 ‘‘(k) REVIEW BY CINC.—(1) The commander of the

13 combatant command shall review a report received under

14 subsection (j)(4). Not later than 30 days after receiving

15 such report, that commander shall forward that report to

16 the Secretary concerned. In the case of a missing person

17 who is a member of the Army, Navy, Air Force, or Marine

18 Corps, the report shall be forwarded to or through the Sec19 retary of Defense in accordance with procedures pre20 scribed under section 1501(c) of this title.

21 ‘‘(2) The review under paragraph (1) shall be con22 ducted in accordance with procedures prescribed under

23 section 1501(a)(3) of this title.

24 ‘‘(l) DETERMINATION BY SECRETARY.—(1) The Sec25 retary of Defense (or the Secretary of the military depart-
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1 ment concerned acting under delegation of authority from

2 the Secretary of Defense) shall review the determinations

3 of a theater component commander in a report forwarded

4 under this section.

5 ‘‘(2) After conducting such review, the Secretary

6 shall make a determination, with respect to each person

7 whose status is covered by the report, whether to leave

8 unchanged the status of such person as determined by the

9 theater component commander under subsection (j)(3) or

10 whether to change that status to another appropriate sta11 tus, as determined by the Secretary.

12 ‘‘(3) In making such determination, the Secretary

13 may convene a board in accordance with section 1504 of

14 this title.

15 ‘‘(m) REPORT TO FAMILY MEMBERS AND OTHER IN16 TERESTED PERSONS.—Not later than 30 days after the

17 date on which the Secretary makes a determination under

18 subsection (k), the Secretary of Defense, acting through

19 the head of the office established under section 1501(a)

20 of this title, shall—

21 ‘‘(1) provide an unclassified summary of the re22 port of the board (including the name of the missing

23 person’s counsel for the inquiry, the names of the

24 members of the board, and the name of the com25 mander who convened the board) to the primary
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1 next of kin, to the other members of the immediate

2 family, and to any other previously designated per3 son of the missing person; and

4 ‘‘(2) inform each individual to whom such sum5 mary is provided that the United States will conduct

6 a subsequent inquiry into the whereabouts or status

7 of the person not earlier than one year after the

8 date of the first official notice of the disappearance

9 of the missing person, unless information becomes

10 available sooner that would result in a substantial

11 change in the determination of the status of the per12 son.

13 ‘‘§ 1504. Subsequent board inquiry; actions of head of

14 the agency

15 ‘‘(a) ADDITIONAL BOARD.—If information on the

16 whereabouts or status of a person covered by an inquiry

17 under section 1503 of this title becomes available within

18 one year after the date of the submission of the report

19 submitted under section 1502 of this title, the Secretary

20 of Defense, acting through the head of the office estab21 lished under section 1501(a) of this title, shall appoint a

22 board under this section to conduct an inquiry into the

23 information.
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1 ‘‘(b) AUTHORITY FOR INQUIRY.—The Secretary of

2 Defense may delegate authority over such subsequent in3 quiry to the Secretary concerned.

4 ‘‘(c) SECRETARY CONCERNED.—In this chapter, the

5 term ‘Secretary concerned’, in the case of a civilian em6 ployee of the United States or contractor of the United

7 States, means the Secretary of the executive department

8 or head of the agency employing the employee or contract9 ing with the contractor, as the case may be.

10 ‘‘(d) DATE OF APPOINTMENT.—The Secretary shall

11 appoint a board under this section to conduct an inquiry

12 into the whereabouts and status of a missing person on

13 or about one year after the date of the report concerning

14 that person submitted under section 1502 of this title.

15 ‘‘(e) COMBINED INQUIRIES.—If it appears to the Sec16 retary that the absence or status of two or more persons

17 is factually related, the Secretary may appoint one board

18 under this section to conduct the inquiry into the where19 abouts or status of all such persons.

20 ‘‘(f) COMPOSITION.—(1) Subject to paragraphs (2)

21 and (3), a board appointed under this section shall consist

22 of the following:

23 ‘‘(A) In the case of a board appointed to in24 quire into the whereabouts or status of a member of

25 the armed forces, not less than three officers having
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1 the grade of major or lieutenant commander or

2 above.

3 ‘‘(B) In the case of a board appointed to in4 quire into the whereabouts or status of a civilian em5 ployee of the United States or an employee of a con6 tractor of the United States—

7 ‘‘(i) not less than three employees of the

8 Department of Defense whose rate of annual

9 pay is equal to or greater than the rate of an10 nual pay payable for grade GS–13 of the Gen11 eral Schedule under section 5332 of title 5; and

12 ‘‘(ii) such members of the armed forces as

13 the Secretary of Defense considers advisable.

14 ‘‘(2) The Secretary shall designate one member of a

15 board appointed under this section as president of the

16 board. The president of the board shall have a security

17 clearance that affords the president access to all informa18 tion relating to the whereabouts and status of each person

19 covered by the inquiry.

20 ‘‘(3)(A) One member of each board appointed under

21 this subsection shall be an attorney or judge advocate who

22 has expertise in the public law relating to missing persons,

23 the determination of death of such persons, and the rights

24 of family members and dependents of such persons.
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1 ‘‘(B) One member of each board appointed under this

2 subsection shall be an individual who—

3 ‘‘(i) has an occupational specialty similar to

4 that of one or more of the persons covered by the

5 inquiry; and

6 ‘‘(ii) has an understanding of and expertise in

7 the official activities of one or more such persons at

8 the time such person or persons disappeared.

9 ‘‘(g) DUTIES OF BOARD.—A board appointed under

10 this section to conduct an inquiry into the whereabouts

11 or status of a person shall—

12 ‘‘(1) review the report under subsection (i) of

13 section 1503 of this title of the board appointed to

14 conduct the inquiry into the status or whereabouts

15 of the person under section 1503 of this title and

16 the recommendation under subsection (j)(3) of that

17 section of the commander who appointed the board

18 under that subsection as to the status of the person;

19 ‘‘(2) collect and evaluate any document, fact, or

20 other evidence with respect to the whereabouts or

21 status of the person that has become available since

22 the completion of the inquiry under section 1503 of

23 this title;

24 ‘‘(3) draw conclusions as to the whereabouts or

25 status of the person;
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1 ‘‘(4) determine on the basis of the activities

2 under paragraphs (1) and (2) whether the status of

3 the person should be continued or changed; and

4 ‘‘(5) submit to the Secretary of Defense a re5 port describing the findings and conclusions of the

6 board, together with a recommendation for a deter7 mination by the Secretary concerning the where8 abouts or status of the person.

9 ‘‘(h) COUNSEL FOR MISSING PERSONS.—(1) When

10 the Secretary appoints a board to conduct an inquiry

11 under this section, the Secretary shall appoint counsel to

12 represent each person covered by the inquiry.

13 ‘‘(2) A person appointed as counsel under this sub14 section shall meet the qualifications and have the duties

15 set forth in section 1503(f) of this title for a missing per16 son’s counsel appointed under that section.

17 ‘‘(3) The review of the report of a board on an inquiry

18 that is submitted by such counsel shall be made an official

19 part of the record of the board with respect to the inquiry.

20 ‘‘(i) ATTENDANCE OF FAMILY MEMBERS AND CER21 TAIN OTHER INTERESTED PERSONS AT PROCEEDINGS.—

22 (1) With respect to any person covered by an inquiry

23 under this section, the primary next of kin, other members

24 of the immediate family, and any other previously des25 ignated person of the missing person may attend the pro-
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1 ceedings of the board during the inquiry in accordance

2 with this section.

3 ‘‘(2) The Secretary shall notify each individual re4 ferred to in paragraph (1) of the opportunity to attend

5 the proceedings of a board. Such notice shall be provided

6 not less than 60 days before the first meeting of the board.

7 ‘‘(3) An individual who receives a notice under para8 graph (2) shall notify the Secretary of the intent, if any,

9 of that individual to attend the proceedings of the board

10 not less than 21 days after the date on which the individ11 ual receives the notice.

12 ‘‘(4) Each individual who notifies the Secretary under

13 paragraph (3) of the individual’s intent to attend the pro14 ceedings of the board—

15 ‘‘(A) in the case of an individual who is the pri16 mary next of kin or the previously designated per17 son, may attend the proceedings of the board with

18 private counsel;

19 ‘‘(B) shall have access to the personnel file of

20 the missing person, to unclassified reports (if any)

21 of the board appointed under section 1503 of this

22 title to conduct the inquiry into the whereabouts and

23 status of the person, and to any other unclassified

24 information or documents relating to the where25 abouts and status of the person;
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1 ‘‘(C) shall be afforded the opportunity to

2 present information at the proceedings of the board

3 that such individual considers to be relevant to those

4 proceedings; and

5 ‘‘(D) subject to paragraph (5), shall be given

6 the opportunity to submit in writing objection to any

7 recommendation of the board under subsection (k)

8 as to the status of the missing person.

9 ‘‘(5) Objections under paragraph (4)(D) to any rec10 ommendation of the board shall be submitted to the presi11 dent of the board not later than 30 days after the date

12 on which the recommendations are made. The president

13 shall include any such objections in the report of the board

14 under subsection (k).

15 ‘‘(6) An individual referred to in paragraph (1) who

16 attends the proceedings of a board under this subsection

17 shall not be entitled to reimbursement by the United

18 States for any costs (including travel, lodging, meals, local

19 transportation, legal fees, transcription costs, witness ex20 penses, and other expenses) incurred by that individual

21 in attending such proceedings.

22 ‘‘(j) AVAILABILITY OF INFORMATION TO BOARDS.—

23 (1) In conducting proceedings in an inquiry under this sec24 tion, a board may secure directly from any department

25 or agency of the United States any information that the
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1 board considers necessary in order to conduct the proceed2 ings.

3 ‘‘(2) Upon written request from the president of a

4 board, the head of a department or agency of the United

5 States shall release information covered by the request to

6 the board. In releasing such information, the head of the

7 department or agency shall—

8 ‘‘(A) declassify to an appropriate degree classi9 fied information; or

10 ‘‘(B) release the information in a manner not

11 requiring the removal of markings indicating the

12 classified nature of the information.

13 ‘‘(3)(A) If a request for information under paragraph

14 (2) covers classified information that cannot be declas15 sified, cannot be removed before release from the informa16 tion covered by the request, or cannot be summarized in

17 a manner that prevents the release of classified informa18 tion, the classified information shall be made available

19 only to president of the board making the request and the

20 counsel for the missing person appointed under subsection

21 (f).

22 ‘‘(B) The president of a board shall close to persons

23 who do not have appropriate security clearances those por24 tions of the proceeding of the Board during which classi25 fied information is discussed. Participants at a proceeding
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1 of a board at which classified information is discussed

2 shall comply with all applicable laws and regulations relat3 ing to the disclosure of classified information. The Sec4 retary concerned shall assist the president of a board in

5 ensuring that classified information is not compromised

6 through board proceedings.

7 ‘‘(k) RECOMMENDATION ON STATUS.—(1) Upon

8 completion of an inquiry under this subsection, a board

9 shall make a recommendation as to the current where10 abouts or status of each missing person covered by the

11 inquiry.

12 ‘‘(2) A board may not recommend under paragraph

13 (1) that a person be declared dead unless—

14 ‘‘(A) proof of death is established by the board;

15 and

16 ‘‘(B) in making the recommendation, the board

17 complies with section 1507 of this title.

18 ‘‘(l) REPORT.—A board appointed under this section

19 shall submit to the Secretary of Defense a report on the

20 inquiry carried out by the board, together with the evi21 dence considered by the board during the inquiry. The re22 port may include a classified annex.

23 ‘‘(m) ACTIONS BY SECRETARY.—(1) Not later than

24 30 days after the receipt of a report from a board under

25 subsection (k), the Secretary shall review—
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1 ‘‘(A) the report;

2 ‘‘(B) the review of the report submitted to the

3 Secretary under subsection (f)(3) by the counsel for

4 each person covered by the report; and

5 ‘‘(C) the objections, if any, to the report sub6 mitted to the president of the board under sub7 section (g)(6).

8 ‘‘(2) In reviewing a report under paragraph (1) (in9 cluding the review and objections described in subpara10 graphs (A) and (B) of that paragraph), the Secretary shall

11 determine whether or not the report is complete and free

12 of administrative error. If the Secretary determines that

13 the report is incomplete, or that the report is not free of

14 administrative error, the Secretary may return the report

15 to the board for further action on the report by the board.

16 ‘‘(3) Upon a determination by the Secretary that a

17 report reviewed under this subsection is complete and free

18 of administrative error, the Secretary shall make a deter19 mination concerning the status of each person covered by

20 the report.

21 ‘‘(n) REPORT TO FAMILY MEMBERS AND OTHER IN22 TERESTED PERSONS.—Not later than 90 days after the

23 date on which a board submits a report on a person under

24 subsection (l), the Secretary of Defense shall—
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1 ‘‘(1) with respect to each missing person whose

2 status or whereabouts are covered by the report,

3 provide an unclassified summary of the report to the

4 primary next of kin, the other members of the imme5 diate family, and any other previously designated

6 person; and

7 ‘‘(2) in the case of a person who continues to

8 be in a missing status, inform each individual re9 ferred to in paragraph (1) that the United States

10 will conduct a further investigation into the where11 abouts or status of the person not later than three

12 years after the date of the official notice of the dis13 appearance of the person, unless information be14 comes available within that time that would result in

15 a substantial change in the official status of the per16 son.

17 ‘‘§ 1505. Further review

18 ‘‘(a) SUBSEQUENT REVIEW.—The Secretary shall

19 conduct subsequent inquiries into the whereabouts or sta20 tus of any person determined by the Secretary under sec21 tion 1504 of this title to be in a missing status.

22 ‘‘(b) FREQUENCY OF SUBSEQUENT REVIEWS.—(1)

23 Subject to paragraph (3), the Secretary shall appoint a

24 board to conduct an inquiry with respect to a person under

25 this subsection—
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1 ‘‘(A) on or about three years after the date of

2 the official notice of the disappearance of the person;

3 and

4 ‘‘(B) not later than every three years there5 after.

6 ‘‘(2) In addition to appointment of boards under

7 paragraph (1), the Secretary shall appoint a board to con8 duct an inquiry with respect to a person under this sub9 section upon receipt of information that could result in

10 a change or revision of status of a missing person. When11 ever the Secretary appoints a board under this paragraph,

12 the time for subsequent appointments of a board under

13 paragraph (1)(B) shall be determined from the date of the

14 receipt of such information.

15 ‘‘(3) The Secretary is not required to appoint a board

16 under paragraph (1) with respect to the disappearance of

17 any person—

18 ‘‘(A) more than 30 years after the first notice

19 of the disappearance of the missing person; or

20 ‘‘(B) if, before the end of such 30-year period,

21 the missing person is accounted for.

22 ‘‘(c) CONDUCT OF PROCEEDINGS.—The appointment

23 of, and activities before, a board appointed under this sec24 tion shall be governed by the provisions of section 1504
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1 of this title with respect to a board appointed under that

2 section.

3 ‘‘§ 1506. Personnel files

4 ‘‘(a) INFORMATION IN FILES.—Except as provided in

5 subsection (b), the Secretary of the department having ju6 risdiction over a missing person at the time of the person’s

7 disappearance shall, to the maximum extent practicable,

8 ensure that the personnel file of the person contains all

9 information in the possession of the United States relating

10 to the disappearance and whereabouts or status of the per11 son.

12 ‘‘(b) CLASSIFIED INFORMATION.—(1) The Secretary

13 concerned may withhold classified information from a per14 sonnel file under this section.

15 ‘‘(2) If the Secretary concerned withholds classified

16 information from the personnel file of a person, the Sec17 retary shall ensure that the file contains the following:

18 ‘‘(A) A notice that the withheld information ex19 ists.

20 ‘‘(B) A notice of the date of the most recent re21 view of the classification of the withheld information.

22 ‘‘(c) WRONGFUL WITHHOLDING.—Any person who

23 knowingly and willfully withholds from the personnel file

24 of a missing person any information (other than classified

25 information) relating to the disappearance or whereabouts
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1 or status of a missing person shall be fined as provided

2 in title 18 or imprisoned not more than one year, or both.

3 ‘‘(d) AVAILABILITY OF INFORMATION.—The Sec4 retary concerned shall, upon request, make available the

5 contents of the personnel file of a missing person to the

6 missing person’s primary next of kin, the other members

7 of the missing person’s immediate family, or any other

8 previously designated person of the missing person.

9 ‘‘§ 1507. Recommendation of status of death

10 ‘‘(a) REQUIREMENTS RELATING TO RECOMMENDA11 TION.—A board appointed under section 1504 or 1505 of

12 this title may not recommend that a person be declared

13 dead unless—

14 ‘‘(1) credible evidence exists to suggest that the

15 person is dead;

16 ‘‘(2) the United States possesses no credible

17 evidence that suggests that the person is alive;

18 ‘‘(3) representatives of the United States have

19 made a complete search of the area where the per20 son was last seen (unless, after making a good faith

21 effort to obtain access to such area, such representa22 tives are not granted such access); and

23 ‘‘(4) representatives of the United States have

24 examined the records of the government or entity

25 having control over the area where the person was
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1 last seen (unless, after making a good faith effort to

2 obtain access to such records, such representatives

3 are not granted such access).

4 ‘‘(b) SUBMITTAL OF INFORMATION ON DEATH.—If

5 a board appointed under section 1504 or 1505 of this title

6 makes a recommendation that a missing person be de7 clared dead, the board shall include in the report of the

8 board with respect to the person under such section the

9 following:

10 ‘‘(1) A detailed description of the location

11 where the death occurred.

12 ‘‘(2) A statement of the date on which the

13 death occurred.

14 ‘‘(3) A description of the location of the body,

15 if recovered.

16 ‘‘(4) If the body has been recovered and is not

17 identifiable through visual means, a certification by

18 a practitioner of an appropriate forensic science that

19 the body recovered is that of the missing person.

20 ‘‘§ 1508. Judicial review

21 ‘‘(a) IN GENERAL.—(1) A person referred to in para22 graph (2) may obtain review of a finding described in

23 paragraph (3) by the court of appeals of the United States

24 for the circuit in which the person resides or in which the
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1 finding was made. Judicial review under this section shall

2 be as provided in section 706 of title 5.

3 ‘‘(2) Paragraph (1) applies to any of the following

4 persons with respect to a missing person subject to a find5 ing described in paragraph (3):

6 ‘‘(A) The primary next of kin of the person.

7 ‘‘(B) A member of the immediate family of the

8 person.

9 ‘‘(C) A dependent of the person.

10 ‘‘(D) A person previously designated by the per11 son.

12 ‘‘(3) Paragraph (1) applies to the following findings:

13 ‘‘(A) A finding by a board appointed under sec14 tion 1504 or 1505 of this title that a missing person

15 is dead.

16 ‘‘(B) A finding by a board appointed under sec17 tion 1509 of this title that confirms that a missing

18 person formerly declared dead is in fact dead.

19 ‘‘(4) A person referred to in paragraph (2) shall re20 quest review of a finding under this subsection by filing

21 with the appropriate court a written petition requesting

22 that the finding be set aside.

23 ‘‘(b) FINALITY.—The decision of the court of appeals

24 on a petition for review under subsection (a) is final, ex25 cept that such decision is subject to review by the Supreme
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1 Court upon certiorari, as provided in section 1254 of title

2 28.

3 ‘‘(c) ADDITIONAL REVIEW.—(1) Subject to para4 graph (2), upon request by a person referred to in sub5 section (a)(2), the Secretary concerned shall appoint a

6 board to review the status of a person covered by a finding

7 described in subsection (a)(3) if the court of appeals sets

8 aside the finding and—

9 ‘‘(A) the time allowed for filing a petition for

10 certiorari has expired and no such petition has been

11 duly filed;

12 ‘‘(B) the petition for certiorari has been denied;

13 or

14 ‘‘(C) the decision of the court of appeals has

15 been affirmed by the Supreme Court.

16 ‘‘(2) A person referred to in paragraph (1) shall make

17 a request referred to in that paragraph not later than

18 three years after the date of the event under that para19 graph that entitles the person to request the appointment

20 of a board.

21 ‘‘§ 1509. Persons previously declared dead

22 ‘‘(a) REVIEW OF STATUS.—(1) Not later than three

23 years after the date of the enactment of this chapter, a

24 person referred to in paragraph (2) may submit a request

25 for appointment of a board to review the status of a person
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1 previously declared dead while in a missing status, in a

2 case in which the death is declared to have occurred on

3 or after December 7, 1941.

4 ‘‘(2) A board shall be appointed under this section

5 with respect to the death of any person based on the re6 quest of any of the following persons:

7 ‘‘(A) The primary next of kin of such person.

8 ‘‘(B) An adult member of the immediate family

9 of the person previously declared dead.

10 ‘‘(C) An adult dependent of such person.

11 ‘‘(D) A person previously designated by such

12 person.

13 ‘‘(3) A request under this section shall be submitted

14 to the Secretary of the executive department or head of

15 the agency of the United States that had jurisdiction over

16 the person covered by the request at the time of the per17 son’s disappearance.

18 ‘‘(b) APPOINTMENT OF BOARD.—Upon receiving a

19 request under subsection (a), the official to whom the re20 quest is submitted shall appoint a board to review the sta21 tus of the person covered by the request.

22 ‘‘(c) DUTIES OF BOARD.—A board appointed under

23 this section to review the status of a person previously de24 clared dead shall—
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1 ‘‘(1) conduct an investigation to determine the

2 status of the person; and

3 ‘‘(2) issue a report describing the findings of

4 the board under the investigation and the rec5 ommendations of the board as to the status of the

6 person.

7 ‘‘(d) EFFECT OF CHANGE IN STATUS.—If a board

8 appointed under this section recommends placing in a

9 missing status a person previously declared dead, such

10 person shall accrue no pay or allowances as a result of

11 the placement of the person in such status.

12 ‘‘(e) CONDUCT OF PROCEEDINGS.—The appointment

13 of, and activities before, a board appointed under this sec14 tion shall, to the extent practicable, be governed by the

15 provisions of section 1504 of this title with respect to a

16 board appointed under that section.

17 ‘‘§ 1510. Procedures applicable in case of civilians

18 ‘‘(a) IN GENERAL.—In applying the procedures spec19 ified in this chapter in the case of a person described in

20 section 1501(d)(2) of this title—

21 ‘‘(1) any reference to the commander of the

22 unit, facility, or area to which the missing person is

23 assigned shall be treated as referring to the local au24 thority or supervisor of the department or agency of

25 the United States under whom the missing person
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1 was directly operating or to whom the missing per2 son was responsible;

3 ‘‘(2) any reference to the theater component

4 commander shall be treated as referring to the sen5 ior official in the region in which the missing person

6 disappeared of the department or agency of the

7 United States with jurisdiction over the missing per8 son (or, if there is no such official, such other per9 son (including the appropriate theater component

10 commander) as may be designated by the head of

11 that department of agency);

12 ‘‘(3) any reference to the Secretary concerned

13 shall be treated as referring to the head of the de14 partment or agency of the United States with juris15 diction over the missing person.

16 ‘‘(b) CINC REVIEW NOT TO APPLY.—The provisions

17 of section 1503(k) shall not apply in the case of a person

18 described in section 1501(d)(2) of this title. In such a

19 case, the report under section 1503(j)(4) of this title shall

20 be submitted directly to the head of the department or

21 agency of the United States with jurisdiction over the

22 missing person.

23 ‘‘(c) RULE FOR DEPARTMENT OF DEFENSE CIVIL24 IANS.—In the case of a person described in section

25 1501(d)(2) of this title who is an employee of the Depart-
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1 ment of Defense, or an employee of a contractor of the

2 Department of Defense, the head of the department or

3 agency of the United States with jurisdiction over that

4 person—

5 ‘‘(1) if the person is an employee of, or an em6 ployee of a contractor of, a military department,

7 shall be considered to be the Secretary of that mili8 tary department; and

9 ‘‘(2) otherwise shall be considered to be the

10 Secretary of Defense.

11 ‘‘§ 1511. Return alive of person declared missing or

12 dead

13 ‘‘(a) PAY AND ALLOWANCES.—Any person in a miss14 ing status or declared dead under the Missing Persons Act

15 of 1942 (56 Stat. 143) or chapter 10 of title 37 or by

16 a board appointed under this chapter who is found alive

17 and returned to the control of the United States shall be

18 paid for the full time of the absence of the person while

19 given that status or declared dead under the law and regu20 lations relating to the pay and allowances of persons re21 turning from a missing status.

22 ‘‘(b) EFFECT ON GRATUITIES PAID AS A RESULT OF

23 STATUS.—Subsection (a) shall not be interpreted to invali24 date or otherwise affect the receipt by any person of a

25 death gratuity or other payment from the United States
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1 on behalf of a person referred to in subsection (a) before

2 the date of the enactment of this chapter.

3 ‘‘§ 1512. Effect on State law

4 ‘‘(a) NONPREEMPTION OF STATE AUTHORITY.—

5 Nothing in this chapter shall be construed to invalidate

6 or limit the power of any State court or administrative

7 entity, or the power of any court or administrative entity

8 of any political subdivision thereof, to find or declare a

9 person dead for purposes of the laws of such State or polit10 ical subdivision.

11 ‘‘(b) STATE DEFINED.—In this section, the term

12 ‘State’ includes the District of Columbia, the Common13 wealth of Puerto Rico, and any territory or possession of

14 the United States.

15 ‘‘§ 1513. Definitions

16 ‘‘In this chapter:

17 ‘‘(1) The term ‘missing person’ means—

18 ‘‘(A) a member of the armed forces on ac19 tive duty who is in a missing status; or

20 ‘‘(B) a civilian employee of the United

21 States or of a contractor of the United States

22 who is serving with or accompanying the armed

23 forces under orders and who is in a missing sta24 tus.
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1 ‘‘(2) The term ‘missing status’ means the sta2 tus of a missing person who is determined to be ab3 sent in a status of—

4 ‘‘(A) missing;

5 ‘‘(B) missing in action;

6 ‘‘(C) interned in a foreign country;

7 ‘‘(D) captured, beleaguered, or besieged by

8 a hostile force; or

9 ‘‘(E) detained in a foreign country against

10 that person’s will.

11 ‘‘(3) The term ‘accounted for’, with respect to

12 a person in a missing status, means that—

13 ‘‘(A) the person is returned to United

14 States control alive;

15 ‘‘(B) the remains of the person are re16 turned to the United States; or

17 ‘‘(C) credible evidence exists to support an18 other determination of the person’s status.

19 ‘‘(4) The term ‘member of the immediate fam20 ily’, in the case of a missing person, means the

21 spouse or a child, parent, or sibling of the person.

22 ‘‘(5) The term ‘previously designated person’, in

23 the case of a missing person, means an individual

24 designated by the missing person under section 655

25 of this title for purposes of this chapter.
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1 ‘‘(6) The term ‘classified information’ means

2 any information the unauthorized disclosure of

3 which (as determined under applicable law and regu4 lations) could reasonably be expected to damage the

5 national security.

6 ‘‘(7) The term ‘theater component commander’

7 means, with respect to any of the combatant com8 mands, an officer of any of the armed forces who

9 (A) is commander of all forces of that armed force

10 assigned to that combatant command, and (B) is di11 rectly subordinate to the commander of the combat12 ant command.’’.

13 (2) The tables of chapters at the beginning of subtitle

14 A, and at the beginning of part II of subtitle A, of title

15 10, United States Code, are amended by inserting after

16 the item relating to chapter 75 the following new item:

‘‘76. Missing Persons ......................................................................... 1501’’.

17 (c) CONFORMING AMENDMENTS.—Chapter 10 of title

18 37, United States Code, is amended as follows:

19 (1) Section 555 is amended—

20 (A) in subsection (a), by striking out

21 ‘‘When a member’’ and inserting in lieu thereof

22 ‘‘Except as provided in subsection (d), when a

23 member’’; and

24 (B) by adding at the end the following new

25 subsection:
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1 ‘‘(d) This section does not apply in a case to which

2 section 1502 of title 10 applies.’’.

3 (2) Section 552 is amended—

4 (A) in subsection (a), by striking out ‘‘for

5 all purposes,’’ in the second sentence of the

6 matter following paragraph (2) and all that fol7 lows through the end of the sentence and in8 serting in lieu thereof ‘‘for all purposes.’’;

9 (B) in subsection (b), by inserting ‘‘or is

10 determined under chapter 76 title 10’’ before

11 the period at the end; and

12 (C) in subsection (e), by inserting ‘‘or

13 under chapter 76 of title 10’’ after ‘‘section 555

14 of this title’’.

15 (3) Section 553 is amended—

16 (A) in subsection (f), by striking out ‘‘the

17 date the Secretary concerned receives evidence

18 that’’ and inserting in lieu thereof ‘‘the date on

19 which, in a case covered by section 555 of this

20 title, the Secretary concerned receives evidence,

21 or, in a case covered by chapter 76 of title 10

22 the Secretary concerned determines pursuant to

23 that chapter, that’’; and
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1 (B) in subsection (g), by inserting ‘‘or

2 under chapter 76 of title 10’’ after ‘‘section 555

3 of this title’’.

4 (4) Section 556 is amended—

5 (A) in subsection (a), by inserting after

6 paragraph (7) the following:

7 ‘‘Paragraphs (1), (5), (6), and (7) shall only apply with

8 respect to a case to which section 555 of this title ap9 plies.’’;

10 (B) in subsection (b), by inserting ‘‘, in a

11 case to which section 555 of this title applies,’’

12 after ‘‘When the Secretary concerned’’; and

13 (C) in subsection (h)—

14 (i) in the first sentence, by striking

15 out ‘‘status’’ and inserting in lieu thereof

16 ‘‘pay’’; and

17 (ii) in the second sentence, by insert18 ing ‘‘in a case to which section 555 of this

19 title applies’’ after ‘‘under this section’’.

20 (d) DESIGNATION OF INDIVIDUALS HAVING INTER21 EST IN STATUS OF SERVICE MEMBERS.—(1) Chapter 37

22 of title 10, United States Code, is amended by adding at

23 the end the following new section:
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1 ‘‘§ 655. Designation of persons having interest in sta2 tus of member as a missing person

3 ‘‘(a) The Secretary concerned shall, upon the enlist4 ment or appointment of a person in the armed forces, re5 quire that the person specify in writing the person (if any),

6 other than that person’s primary next of kin, to whom in7 formation on the whereabouts or status of the member

8 shall be provided if such whereabouts or status are inves9 tigated under chapter 76 of this title. The Secretary shall

10 periodically, and whenever the member is deployed as part

11 of a contingency operation or in other circumstances speci12 fied by the Secretary, require that such designation be re13 confirmed, or modified, by the member.

14 ‘‘(b) The Secretary concerned shall, upon the request

15 of a member, permit the member to change the person

16 or persons specified by the member under subsection (a)

17 at any time. Any such change shall be in writing.’’.

18 (2) The table of sections at the beginning of such

19 chapter is amended by adding at the end the following

20 new item:

‘‘655. Designation of persons having interest in status of member as a missing

person.’’.
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1 SEC. 564. NOMINATIONS TO SERVICE ACADEMIES FROM

2 COMMONWEALTH OF THE NORTHERN MARI3 ANAS ISLANDS.

4 (a) MILITARY ACADEMY.—Section 4342(a) of title

5 10, United States Code, is amended by inserting after

6 paragraph (9) the following new paragraph:

7 ‘‘(10) One cadet from the Commonwealth of the

8 Northern Marianas Islands, nominated by the resi9 dent representative from the commonwealth.’’.

10 (b) NAVAL ACADEMY.—Section 6954(a) of title 10,

11 United States Code, is amended by inserting after para12 graph (9) the following new paragraph:

13 ‘‘(10) One from the Commonwealth of the

14 Northern Marianas Islands, nominated by the resi15 dent representative from the commonwealth.’’.

16 (c) AIR FORCE ACADEMY.—Section 9342(a) of title

17 10, United States Code, is amended by inserting after

18 paragraph (9) the following new paragraph:

19 ‘‘(10) One cadet from the Commonwealth of the

20 Northern Marianas Islands, nominated by the resi21 dent representative from the commonwealth.’’.
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1 SEC. 565. REPORT ON THE CONSISTENCY OF REPORTING

2 OF FINGERPRINT CARDS AND FINAL DISPOSI3 TION FORMS TO THE FEDERAL BUREAU OF

4 INVESTIGATION.

5 (a) REPORT.—The Secretary of Defense shall submit

6 to Congress a report on the consistency with which finger7 print cards and final disposition forms, as described in

8 Criminal Investigations Policy Memorandum 10 issued by

9 the Defense Inspector General on March 25, 1987, are

10 reported by the Defense Criminal Investigative Organiza11 tions to the Federal Bureau of Investigation for inclusion

12 in the Bureau’s criminal history identification files.

13 (b) MATTERS TO BE INCLUDED.—In the report, the

14 Secretary shall—

15 (1) survey fingerprint cards and final disposi16 tion forms filled out in the past 24 months by each

17 investigative organization;

18 (2) compare the fingerprint cards and final dis19 position forms filled out to all judicial and

20 nonjudicial procedures initiated as a result of actions

21 taken by each investigative service in the past 24

22 months;

23 (3) account for any discrepancies between the

24 forms filled out and the judicial and nonjudicial pro25 cedures initiated;
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1 (4) compare the fingerprint cards and final dis2 position forms filled out with the information held

3 by the Federal Bureau of Investigation criminal his4 tory identification files;

5 (5) identify any weaknesses in the collection of

6 fingerprint cards and final disposition forms and in

7 the reporting of that information to the Federal Bu8 reau of Investigation; and

9 (6) determine whether or not other law enforce10 ment activities of the military services collect and re11 port such information or, if not, should collect and

12 report such information.

13 (c) SUBMISSION OF REPORT.—The report shall be

14 submitted not later than 180 days after the date of the

15 enactment of this Act.

16 (d) DEFINITION.—For the purposes of this section,

17 the term ‘‘criminal history identification files’’, with re18 spect to the Federal Bureau of Investigation, means the

19 criminal history record system maintained by the Federal

20 Bureau of Investigation based on fingerprint identification

21 and any other method of positive identification.
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1 SEC. 566. SEPARATION BENEFITS DURING FORCE REDUC2 TION FOR OFFICERS OF COMMISSIONED

3 CORPS OF NATIONAL OCEANIC AND ATMOS4 PHERIC ADMINISTRATION.

5 (a) SEPARATION BENEFITS.—Subsection (a) of sec6 tion 3 of the Act of August 10, 1956 (33 U.S.C. 857a),

7 is amended by adding at the end the following new para8 graph:

9 ‘‘(15) Section 1174a, special separation benefits

10 (except that benefits under subsection (b)(2)(B) of

11 such section are subject to the availability of appro12 priations for such purpose and are provided at the

13 discretion of the Secretary of Commerce).’’.

14 (b) TECHNICAL CORRECTIONS.—Such section is fur15 ther amended—

16 (1) by striking out ‘‘Coast and Geodetic Sur17 vey’’ in subsections (a) and (b) and inserting in lieu

18 thereof ‘‘commissioned officer corps of the National

19 Oceanic and Atmospheric Administration’’; and

20 (2) in subsection (a), by striking out ‘‘including

21 changes in those rules made after the effective date

22 of this Act’’ in the matter preceding paragraph (1)

23 and inserting in lieu thereof ‘‘as those provisions are

24 in effect from time to time’’.

25 (c) TEMPORARY EARLY RETIREMENT AUTHOR26 ITY..—Section 4403 (other than subsection (f)) of the Na-
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1 tional Defense Authorization Act for Fiscal Year 1993

2 (Public Law 102–484; 106 Stat. 2702; 10 U.S.C. 1293

3 note) shall apply to the commissioned officer corps of the

4 National Oceanic and Atmospheric Administration in the

5 same manner and to the same extent as that section ap6 plies to the Department of Defense. The Secretary of

7 Commerce shall implement the provisions of that section

8 with respect to such commissioned officer corps and shall

9 apply the provisions of that section to the provisions of

10 the Coast and Geodetic Survey Commissioned Officers’

11 Act of 1948 relating to the retirement of members of such

12 commissioned officer corps.

13 (d) EFFECTIVE DATE.—This section shall apply only

14 to members of the commissioned officer corps of the Na15 tional Oceanic and Atmospheric Administration who are

16 separated after September 30, 1995.

17 TITLE VI—COMPENSATION AND

18 OTHER PERSONNEL BENEFITS

19 Subtitle A—Pay and Allowances

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

21 (a) WAIVER OF SECTION 1009 ADJUSTMENT.—Any

22 adjustment required by section 1009 of title 37, United

23 States Code, in elements of compensation of members of

24 the uniformed services to become effective during fiscal

25 year 1996 shall not be made.
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1 (b) INCREASE IN BASIC PAY AND BAS.—Effective on

2 January 1, 1996, the rates of basic pay and basic allow3 ance for subsistence of members of the uniformed services

4 are increased by 2.4 percent.

5 (c) INCREASE IN BAQ.—Effective on January 1,

6 1996, the rates of basic allowance for quarters of members

7 of the uniformed services are increased by 5.2 percent.

8 (d) UNIFORMED SERVICES DEFINED.—For purposes

9 of this section, the term ‘‘uniformed services’’ does not in10 clude the National Oceanic and Atmospheric Administra11 tion.

12 SEC. 602. LIMITATION ON BASIC ALLOWANCE FOR SUBSIST13 ENCE FOR MEMBERS WITHOUT DEPENDENTS

14 RESIDING IN GOVERNMENT QUARTERS.

15 (a) PERCENTAGE LIMITATION.—Subsection (b) of

16 section 402 of title 37, United States Code, is amended

17 by adding after the last sentence the following new para18 graph:

19 ‘‘(4) In the case of members of the Army, Navy, Air

20 Force, or Marine Corps who, when present at their perma21 nent duty station, reside without dependents in Govern22 ment quarters, the Secretary concerned may not provide

23 a basic allowance for subsistence to more than 12 percent

24 of such members under the jurisdiction of the Secretary

25 concerned. The Secretary concerned may exceed such per-
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1 centage during a fiscal year if the Secretary determines

2 that compliance would increase costs to the Government,

3 would impose financial hardships on members otherwise

4 entitled to a basic allowance for subsistence, or would re5 duce the quality of life for such members. This paragraph

6 shall not apply to members described in the first sentence

7 when the members are not residing at their permanent

8 duty station. The percentage limitation specified in this

9 paragraph shall be achieved as soon as possible after the

10 date of the enactment of this paragraph, but in no case

11 later than September 30, 1996.’’.

12 (b) STYLISTIC AMENDMENTS.—Such subsection is

13 further amended—

14 (1) by redesignating paragraphs (1), (2), and

15 (3) as subparagraphs (A), (B), and (C);

16 (2) by inserting ‘‘(1)’’ after ‘‘(b)’’;

17 (3) by designating the second sentence as para18 graph (2); and

19 (4) by designating the fifth sentence as para20 graph (3).

21 (c) CONFORMING AMENDMENTS.—(1) Subsection (e)

22 of such section is amended—

23 (A) in paragraph (1), by striking out ‘‘the third

24 sentence of subsection (b)’’ and inserting in lieu

25 thereof ‘‘subsection (b)(2)’’; and
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1 (B) in paragraph (2), by striking out ‘‘sub2 section (b)’’ and inserting in lieu thereof ‘‘subsection

3 (b)(2)’’.

4 (2) Section 1012 of title 37, United States Code, is

5 amended by striking out ‘‘the last sentence of section

6 402(b)’’ and inserting in lieu thereof ‘‘section 402(b)(3)’’.

7 (d) REPORT REQUIRED.—Not later than March 31,

8 1996, the Secretary of Defense shall submit to Congress

9 a report identifying, for the Army, Navy, Air Force, and

10 the Marine Corps—

11 (1) the number of members without dependents

12 who reside in Government quarters at their perma13 nent duty stations and receive a basic allowance for

14 subsistence under section 402 of title 37, United

15 States Code;

16 (2) such number as a percentage of the total

17 number of members without dependents who reside

18 in Government quarters;

19 (3) a recommended maximum percentage of

20 members without dependents who reside in Govern21 ment quarters at their permanent duty station and

22 should receive a basic allowance for subsistence; and

23 (4) the reasons such maximum percentage was

24 selected.
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1 SEC. 603. AUTHORIZATION OF PAYMENT OF BASIC ALLOW2 ANCE FOR QUARTERS TO ADDITIONAL MEM3 BERS ASSIGNED TO SEA DUTY.

4 (a) EXPANSION OF ELIGIBLE MEMBERS.—Section

5 403(c)(2) of title 37, United States Code, is amended—

6 (1) in the first sentence, by striking out ‘‘E–7’’

7 and inserting in lieu thereof ‘‘E–6’’; and

8 (2) in the second sentence, by striking out ‘‘E–

9 6’’ and inserting in lieu thereof ‘‘E–5’’.

10 (b) EFFECTIVE DATE.—The amendments made by

11 subsection (a) shall take effect on July 1, 1996.

12 SEC. 604. ESTABLISHMENT OF MINIMUM AMOUNTS OF

13 VARIABLE HOUSING ALLOWANCE FOR HIGH

14 HOUSING COST AREAS AND ADDITIONAL LIM15 ITATION ON REDUCTION OF ALLOWANCE FOR

16 CERTAIN MEMBERS.

17 (a) MINIMUM AMOUNTS OF VHA.—Subsection (c) of

18 section 403a of title 37, United States Code, is amended

19 by striking out paragraph (1) and inserting in lieu thereof

20 the following new paragraph:

21 ‘‘(1) The monthly amount of a variable housing allow22 ance under this section for a member of a uniformed serv23 ice with respect to an area is equal to the greater of the

24 following:

25 ‘‘(A) An amount equal to the difference be26 tween—
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1 ‘‘(i) the median monthly cost of housing in

2 that area for members of the uniformed services

3 serving in the same pay grade and with the

4 same dependency status as that member; and

5 ‘‘(ii) 80 percent of the median monthly

6 cost of housing in the United States for mem7 bers of the uniformed services serving in the

8 same pay grade and with the same dependency

9 status as that member.

10 ‘‘(B) An amount determined by the Secretary

11 of Defense as the minimum necessary to meet the

12 cost of adequate housing in that area, as determined

13 by the Secretary, for all residents in that area with

14 an appropriate income level selected by the Sec15 retary.’’.

16 (b) LIMITATION ON REDUCTION IN VHA.—Para17 graph (3) of such subsection is amended by adding at the

18 end the following new sentence: ‘‘However, on and after

19 January 1, 1996, the monthly amount of a variable hous20 ing allowance under this section for a member of a uni21 formed service with respect to an area may not be reduced

22 so long as the member retains uninterrupted eligibility to

23 receive a variable housing allowance within that area and

24 the member’s certified housing costs are not reduced, as
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1 indicated by certifications provided by the member under

2 subsection (b)(4).’’.

3 (c) EFFECT ON TOTAL AMOUNT AVAILABLE FOR

4 VHA.—Subsection (d)(3) of such section is amended by

5 inserting after the first sentence the following new sen6 tence: ‘‘In addition, the total amount determined under

7 paragraph (1) shall be adjusted to ensure that sufficient

8 amounts are available to allow payment of any additional

9 variable housing allowance necessary as a result of para10 graph (1)(B) and the requirements of the second sentence

11 of paragraph (3).’’

12 (d) CONFORMING AMENDMENTS.—Subsection (c) of

13 such section is further amended—

14 (1) in paragraph (3), as amended by subsection

15 (b), by striking out ‘‘this subsection’’ and inserting

16 in lieu thereof ‘‘paragraph (1)(A) or minimum levels

17 of variable housing allowances under paragraph

18 (1)(B)’’; and

19 (2) in paragraph (5), by inserting ‘‘or minimum

20 levels of variable housing allowances’’ after ‘‘costs of

21 housing’’.

22 (e) DELAYED IMPLEMENTATION OF MINIMUM

23 AMOUNTS OF VHA.—Subsection (c)(1)(B) of section 403a

24 of title 37, United States Code, as added by subsection

25 (a), shall be used to determine the monthly amount of a
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1 variable housing allowance under such section for mem2 bers of the uniformed services only for months beginning

3 after June 30, 1996.

4 (f) REPORT ON IMPLEMENTATION.—Not later than

5 June 1, 1996, the Secretary of Defense shall submit to

6 Congress a report describing the procedures to be used

7 to implement the amendments made by this section and

8 the costs of such amendments.

9 SEC. 605. CLARIFICATION OF LIMITATION ON RECEIPT OF

10 FAMILY SEPARATION ALLOWANCE.

11 Section 427(b)(4) of title 37, United States Code, is

12 amended by inserting before the period at the end of the

13 first sentence the following: ‘‘unless such entitlement is

14 based on paragraph (1)(B)’’.

15 Subtitle B—Bonuses and Special

16 and Incentive Pays

17 SEC. 611. EXTENSION OF CERTAIN BONUSES FOR RESERVE

18 FORCES.

19 (a) SELECTED RESERVE REENLISTMENT BONUS.—

20 Section 308b(f) of title 37, United States Code, is amend21 ed by striking out ‘‘September 30, 1996’’ and inserting

22 in lieu thereof ‘‘September 30, 1998’’.

23 (b) SELECTED RESERVE ENLISTMENT BONUS.—Sec24 tion 308c(e) of such title is amended by striking out ‘‘Sep-
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1 tember 30, 1996’’ and inserting in lieu thereof ‘‘Septem2 ber 30, 1998’’.

3 (c) SELECTED RESERVE AFFILIATION BONUS.—Sec4 tion 308e(e) of such title is amended by striking out ‘‘Sep5 tember 30, 1996’’ and inserting in lieu thereof ‘‘Septem6 ber 30, 1998’’.

7 (d) READY RESERVE ENLISTMENT AND REENLIST8 MENT BONUS.—Section 308h(g) of such title is amended

9 by striking out ‘‘September 30, 1996’’ and inserting in

10 lieu thereof ‘‘September 30, 1998’’.

11 (e) PRIOR SERVICE ENLISTMENT BONUS.—Section

12 308i(i) of such title is amended by striking out ‘‘Septem13 ber 30, 1996’’ and inserting in lieu thereof ‘‘September

14 30, 1998’’.

15 SEC. 612. EXTENSION OF CERTAIN BONUSES AND SPECIAL

16 PAY FOR NURSE OFFICER CANDIDATES, REG17 ISTERED NURSES, AND NURSE ANES18 THETISTS.

19 (a) NURSE OFFICER CANDIDATE ACCESSION PRO20 GRAM.—Section 2130a(a)(1) of title 10, United States

21 Code, is amended by striking out ‘‘September 30, 1996’’

22 and inserting in lieu thereof ‘‘September 30, 1998’’.

23 (b) ACCESSION BONUS FOR REGISTERED NURSES.—

24 Section 302d(a)(1) of title 37, United States Code, is
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1 amended by striking out ‘‘September 30, 1996’’ and in2 serting in lieu thereof ‘‘September 30, 1998’’.

3 (c) INCENTIVE SPECIAL PAY FOR NURSE ANES4 THETISTS.—Section 302e(a)(1) of title 37, United States

5 Code, is amended by striking out ‘‘September 30, 1996’’

6 and inserting in lieu thereof ‘‘September 30, 1998’’.

7 SEC. 613. EXTENSION OF AUTHORITY RELATING TO PAY8 MENT OF OTHER BONUSES AND SPECIAL

9 PAYS.

10 (a) AVIATION OFFICER RETENTION BONUS.—Sec11 tion 301b(a) of title 37, United States Code, is amended

12 by striking out ‘‘September 30, 1995’’ and inserting in

13 lieu thereof ‘‘September 30, 1998’’.

14 (b) REENLISTMENT BONUS FOR ACTIVE MEM15 BERS.—Section 308(g) of such title is amended by strik16 ing out ‘‘September 30, 1996’’ and inserting in lieu there17 of ‘‘September 30, 1998’’.

18 (c) ENLISTMENT BONUSES FOR CRITICAL SKILLS.—

19 Sections 308a(c) and 308f(c) of such title are each amend20 ed by striking out ‘‘September 30, 1996’’ and inserting

21 in lieu thereof ‘‘September 30, 1998’’.

22 (d) SPECIAL PAY FOR ENLISTED MEMBERS OF THE

23 SELECTED RESERVE ASSIGNED TO CERTAIN HIGH PRI24 ORITY UNITS.—Section 308d(c) of such title is amended
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1 by striking out ‘‘September 30, 1996’’ and inserting in

2 lieu thereof ‘‘September 30, 1998’’.

3 (e) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI4 CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section

5 312(e) of such title is amended by striking out ‘‘Septem6 ber 30, 1996’’ and inserting in lieu thereof ‘‘September

7 30, 1998’’.

8 (f) NUCLEAR CAREER ACCESSION BONUS.—Section

9 312b(c) of such title is amended by striking out ‘‘Septem10 ber 30, 1996’’ and inserting in lieu thereof ‘‘September

11 30, 1998’’.

12 (g) NUCLEAR CAREER ANNUAL INCENTIVE

13 BONUS.—Section 312c(d) of such title is amended by

14 striking out ‘‘October 1, 1996’ and inserting in lieu there15 of ‘‘October 1, 1998’’.

16 (h) REPAYMENT OF EDUCATION LOANS FOR CER17 TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE18 LECTED RESERVE.—Section 16302(d) of title 10, United

19 States Code, is amended by striking out ‘‘October 1,

20 1996’’ and inserting in lieu thereof ‘‘October 1, 1998’’.
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1 SEC. 614. CODIFICATION AND EXTENSION OF SPECIAL PAY

2 FOR CRITICALLY SHORT WARTIME HEALTH

3 SPECIALISTS IN THE SELECTED RESERVES.

4 (a) SPECIAL PAY AUTHORIZED.—(1) Chapter 5 of

5 title 37, United States Code, is amended by inserting after

6 section 302f the following new section:

7 ‘‘§ 302g. Special pay: Selected Reserve health care

8 professionals in critically short wartime

9 specialties

10 ‘‘(a) SPECIAL PAY AUTHORIZED.—An officer of a re11 serve component of the armed forces described in sub12 section (b) who executes a written agreement under which

13 the officer agrees to serve in the Selected Reserve of an

14 armed force for a period of not less than one year nor

15 more than three years, beginning on the date the officer

16 accepts the award of special pay under this section, may

17 be paid special pay at an annual rate not to exceed

18 $10,000.

19 ‘‘(b) ELIGIBLE OFFICERS.—An officer referred to in

20 subsection (a) is an officer in a health care profession who

21 is qualified in a specialty designated by regulations as a

22 critically short wartime specialty.

23 ‘‘(c) TIME FOR PAYMENT.—Special pay under this

24 section shall be paid annually at the beginning of each

25 twelve-month period for which the officer has agreed to

26 serve.
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1 ‘‘(d) REFUND REQUIREMENT.—An officer who volun2 tarily terminates service in the Selected Reserve of an

3 armed force before the end of the period for which a pay4 ment was made to such officer under this section shall

5 refund to the United States the full amount of the pay6 ment made for the period on which the payment was

7 based.

8 ‘‘(e) INAPPLICABILITY OF DISCHARGE IN BANK9 RUPTCY.—A discharge in bankruptcy under title 11 that

10 is entered less than five years after the termination of an

11 agreement under this section does not discharge the per12 son receiving special pay under the agreement from the

13 debt arising under the agreement.

14 ‘‘(f) TERMINATION OF AGREEMENT AUTHORITY.—

15 No agreement under this section may be entered into after

16 September 30, 1998.’’.

17 (2) The table of sections at the beginning of such

18 chapter is amended by inserting after the item relating

19 to section 302f the following new item:

‘‘302g. Special pay: Selected Reserve health care professionals in critically short

wartime specialties.’’.

20 (b) CONFORMING AMENDMENT.—Section 303a of

21 title 37, United States Code is amended by striking out

22 ‘‘302, 302a, 302b, 302c, 302d, 302e,’’ each place it ap23 pears and inserting in lieu thereof ‘‘302 through 302g,’’.
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1 (c) CONFORMING REPEAL.—(1) Section 613 of the

2 National Defense Authorization Act, Fiscal Year 1989

3 (Public Law 100–456; 37 U.S.C. 302 note) is repealed.

4 (2) The repeal of section 613 of the National Defense

5 Authorization Act, Fiscal Year 1989, by paragraph (1)

6 shall not affect the validity or terms of any agreement en7 tered into under such section before the date of the enact8 ment of this Act.

9 SEC. 615. CHANGE IN ELIGIBILITY REQUIREMENTS FOR

10 CONTINUOUS MONTHLY AVIATION INCEN11 TIVE PAY.

12 (a) LOWER INCENTIVE PAY GATE.—Section

13 301a(a)(4) of title 37, United States Code, is amended

14 by striking out ‘‘9’’ in the first sentence and inserting in

15 lieu thereof ‘‘8’’.

16 (b) EFFECTIVE DATE.—The amendment made by

17 subsection (a) shall take effect on October 1, 1995.

18 SEC. 616. CONTINUOUS ENTITLEMENT TO CAREER SEA PAY

19 FOR CREWMEMBERS OF SHIPS DESIGNATED

20 AS TENDERS.

21 (a) CONTINUOUS ENTITLEMENT.—Section

22 305a(d)(1)(A) of title 37, United States Code, is amend23 ed—

24 (1) by striking out ‘‘or’’ after ‘‘under way’’ and

25 inserting in lieu thereof a comma; and
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1 (2) by inserting before the semicolon at the end

2 the following: ‘‘, or while serving as a member of a

3 tender-class ship (with the hull classification of sub4 marine or destroyer)’’.

5 (b) EFFECTIVE DATE.—The amendments made by

6 subsection (a) shall take effect on October 1, 1995.

7 SEC. 617. INCREASE IN MAXIMUM RATE OF SPECIAL DUTY

8 ASSIGNMENT PAY FOR ENLISTED MEMBERS

9 SERVING AS RECRUITERS.

10 (a) SPECIAL MAXIMUM RATE FOR RECRUITERS.—

11 Section 307(a) of title 37, United States Code, is amended

12 by adding at the end the following new sentence: ‘‘In the

13 case of a member who is serving as a military recruiter

14 and is eligible for special duty assignment pay under this

15 subsection on account of such duty, the Secretary con16 cerned may increase the monthly rate of special duty as17 signment pay for the member to not more than $375.’’.

18 (b) EFFECTIVE DATE.—The amendment made by

19 subsection (a) shall take effect on January 1, 1996.
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1 Subtitle C—Travel and

2 Transportation Allowances

3 SEC. 621. AUTHORIZATION OF RETURN TO UNITED STATES

4 OF FORMERLY DEPENDENT CHILDREN OF

5 MEMBERS.

6 (a) RETURN AT GOVERNMENT EXPENSE.—Section

7 406(h)(1) of title 37, United States Code, is amended in

8 the last sentence—

9 (1) by striking out ‘‘who became 21 years of

10 age’’ and inserting in lieu thereof ‘‘who, by reason

11 of age or graduation from (or cessation of enroll12 ment in) an institution of higher education, would

13 otherwise cease to be a dependent of the member’’;

14 and

15 (2) by inserting ‘‘still’’ after ‘‘shall’’.

16 (b) EFFECTIVE DATE.—The amendments made by

17 this section shall take effect on October 1, 1995.

18 SEC. 622. AUTHORIZATION OF DISLOCATION ALLOWANCE

19 FOR MOVES IN CONNECTION WITH BASE

20 REALIGNMENTS AND CLOSURES.

21 (a) DISLOCATION ALLOWANCE AUTHORIZED.—Sub22 section (a) of section 407 of title 37, United States Code,

23 is amended—

24 (1) by striking out ‘‘or’’ at the end of para25 graph (3);
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1 (2) by striking out the period at the end of

2 paragraph (4)(B) and inserting in lieu thereof ‘‘;

3 or’’; and

4 (3) by inserting after paragraph (4)(B) the fol5 lowing new paragraph:

6 ‘‘(5) the member’s dependents actually make an

7 authorized move in connection with the member’s di8 rected order to move as a result of the closure or re9 alignment of a military installation.’’.

10 (b) CONFORMING AMENDMENTS.—Such section is

11 further amended—

12 (1) in the sentence following subsection

13 (a)(4)—

14 (A) by striking out ‘‘clause (3) or (4)(B)’’

15 and inserting in lieu thereof ‘‘paragraph (3) or

16 (4)(B)’’; and

17 (B) by striking out ‘‘clause (1)’’ and in18 serting in lieu thereof ‘‘paragraph (1) or (5)’’;

19 (2) in subsection (b)—

20 (A) by striking out ‘‘subsection (a)(3) or

21 (a)(4)(B)’’ and inserting in lieu thereof ‘‘para22 graph (3) or (4)(B) of subsection (a)’’; and

23 (B) by striking out ‘‘subsection (a)(1)’’

24 and inserting in lieu thereof ‘‘paragraph (1) or

25 (5) of subsection (a)’’.
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1 SEC. 623. REPEAL OF PROHIBITION ON PAYMENT OF LODG2 ING EXPENSES WHEN ADEQUATE GOVERN3 MENT QUARTERS ARE AVAILABLE.

4 (a) REPEAL.—Section 1589 of title 10, United States

5 Code, is repealed.

6 (b) CLERICAL AMENDMENT.—The table of sections

7 at the beginning of chapter 81 of such title is amended

8 by striking out the item relating to section 1589.

9 Subtitle D—Other Matters

10 SEC. 631. ELIMINATION OF UNNECESSARY ANNUAL RE11 PORTING REQUIREMENTS REGARDING COM12 PENSATION MATTERS.

13 (a) REPORT ON TRAVEL AND TRANSPORTATION AL14 LOWANCES FOR DEPENDENTS.—(1) Section 406 of title

15 37, United States Code, is amended—

16 (A) by striking out subsection (i); and

17 (B) by redesignating subsections (j), (k), (l),

18 (m), and (n) as subsections (i), (j), (k), (l), and (m),

19 respectively.

20 (2) Section 2634(d) of title 10, United States Code,

21 is amended by striking out ‘‘section 406(l) of title 37’’

22 and inserting in lieu thereof ‘‘section 406(k) of title 37’’.

23 (b) ANNUAL REVIEW OF PAY AND ALLOWANCES.—

24 Subsection (a) of section 1008 of title 37, United States

25 Code, is amended to read as follows:
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1 ‘‘(a) Not later than March 31 of each year, the Presi2 dent shall submit to Congress such recommendations (if

3 any) as the President considers appropriate for adjust4 ments in the rates of pay and allowances authorized by

5 this title for members of the uniformed services.’’.

6 SEC. 632. STUDY REGARDING JOINT PROCESS FOR DETER7 MINING LOCATION OF RECRUITING STA8 TIONS.

9 (a) STUDY REQUIRED.—The Secretary of Defense

10 shall conduct a study regarding the feasibility of—

11 (1) using a joint process among the Armed

12 Forces for determining the location of recruiting sta13 tions and the number of military personnel required

14 to operate such stations; and

15 (2) basing such determinations on market re16 search and analysis conducted jointly by the Armed

17 Forces.

18 (b) REPORT.—Not later than March 31, 1996, the

19 Secretary of Defense shall submit to Congress a report

20 describing the results of the study. The report shall in21 clude a recommended method for measuring the efficiency

22 of individual recruiting stations, such as cost per accession

23 or other efficiency standard, as determined by the Sec24 retary.
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1 SEC. 633. ELIMINATION OF DISPARITY BETWEEN EFFEC2 TIVE DATES FOR MILITARY AND CIVILIAN RE3 TIREE COST-OF-LIVING ADJUSTMENTS FOR

4 FISCAL YEAR 1996.

5 (a) IN GENERAL.—The fiscal year 1996 increase in

6 military retired pay shall (notwithstanding subparagraph

7 (B) of section 1401a(b)(2) of title 10, United States Code)

8 first be payable as part of such retired pay for the month

9 of March 1996.

10 (b) DEFINITIONS.—For the purposes of subsection

11 (a):

12 (1) The term ‘‘fiscal year 1996 increase in mili13 tary retired pay’’ means the increase in retired pay

14 that, pursuant to paragraph (1) of section 1401a(b)

15 of title 10, United States Code, becomes effective on

16 December 1, 1995.

17 (2) The term ‘‘retired pay’’ includes retainer

18 pay.

19 (c) LIMITATION.—Subsection (a) shall be effective

20 only if there is appropriated to the Department of Defense

21 Military Retirement Fund (in an Act making appropria22 tions for the Department of Defense for fiscal year 1996

23 that is enacted before March 1, 1996) such amount as

24 is necessary to offset increased outlays to be made from

25 that fund during fiscal year 1996 by reason of the provi26 sions of subsection (a).
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1 (d) AUTHORIZATION OF APPROPRIATIONS.—There is

2 authorized to be appropriated for fiscal year 1996 to the

3 Department of Defense Military Retirement Fund the sum

4 of $403,000,000 to offset increased outlays to be made

5 from that fund during fiscal year 1996 by reason of the

6 provisions of subsection (a).

7 TITLE VII—HEALTH CARE

8 PROVISIONS

9 Subtitle A—Health Care Services

10 SEC. 701. MODIFICATION OF REQUIREMENTS REGARDING

11 ROUTINE PHYSICAL EXAMINATIONS AND IM12 MUNIZATIONS UNDER CHAMPUS.

13 Section 1079(a) of title 10, United States Code, is

14 amended by striking out paragraph (2) and inserting in

15 lieu thereof the following new paragraph:

16 ‘‘(2) consistent with such regulations as the

17 Secretary of Defense may prescribe regarding the

18 content of health promotion and disease prevention

19 visits, the schedule of pap smears and mammo20 grams, and the types and schedule of immuniza21 tions—

22 ‘‘(A) for dependents under six years of age,

23 both health promotion and disease prevention

24 visits and immunizations may be provided; and
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1 ‘‘(B) for dependents six years of age or

2 older, health promotion and disease prevention

3 visits may be provided in connection with im4 munizations or with diagnostic or preventive

5 pap smears and mammograms;’’.

6 SEC. 702. CORRECTION OF INEQUITIES IN MEDICAL AND

7 DENTAL CARE AND DEATH AND DISABILITY

8 BENEFITS FOR CERTAIN RESERVISTS.

9 (a) MEDICAL AND DENTAL CARE.—Section 1074a(a)

10 of title 10, United States Code, is amended by adding at

11 the end the following new paragraph:

12 ‘‘(3) Each member of the armed forces who in13 curs or aggravates an injury, illness, or disease in

14 the line of duty while remaining overnight, between

15 successive periods of inactive-duty training, at or in

16 the vicinity of the site of the inactive-duty training,

17 and the site is outside reasonable commuting dis18 tance from the member’s residence.’’.

19 (b) RECOVERY, CARE, AND DISPOSITION OF RE20 MAINS.—Section 1481(a)(2) of title 10, United States

21 Code, is amended—

22 (1) in subparagraph (C), by striking out ‘‘or’’

23 at the end of the subparagraph;

24 (2) by redesignating subparagraph (D) as sub25 paragraph (E); and
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1 (3) by inserting after subparagraph (C) the fol2 lowing new subparagraph:

3 ‘‘(D) remaining overnight, between succes4 sive periods of inactive-duty training, at or in

5 the vicinity of the site of the inactive-duty

6 training, and the site is outside reasonable com7 muting distance from the member’s residence;

8 or’’.

9 (c) ENTITLEMENT TO BASIC PAY.—(1) Subsection

10 (g)(1) of section 204 of title 37, United States Code, is

11 amended—

12 (A) in subparagraph (B), by striking out ‘‘or’’

13 at the end of the subparagraph;

14 (B) in subparagraph (C), by striking out the

15 period at the end of the subparagraph and inserting

16 in lieu thereof ‘‘; or’’; and

17 (C) by inserting after subparagraph (C) the fol18 lowing new subparagraph:

19 ‘‘(D) in line of duty while remaining overnight,

20 between successive periods of inactive-duty training,

21 at or in the vicinity of the site of the inactive-duty

22 training, and the site is outside reasonable commut23 ing distance from the member’s residence.’’.

24 (2) Subsection (h)(1) of such section is amended—
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1 (A) in subparagraph (B), by striking out ‘‘or’’

2 at the end of the subparagraph;

3 (B) in subparagraph (C), by striking out the

4 period at the end of the subparagraph and inserting

5 in lieu thereof ‘‘; or’’; and

6 (C) by inserting after subparagraph (C) the fol7 lowing new subparagraph:

8 ‘‘(D) in line of duty while remaining overnight,

9 between successive periods of inactive-duty training,

10 at or in the vicinity of the site of the inactive-duty

11 training, and the site is outside reasonable commut12 ing distance from the member’s residence.’’.

13 (d) COMPENSATION FOR INACTIVE-DUTY TRAIN14 ING.—Section 206(a)(3) of title 37, United States Code,

15 is amended—

16 (1) in subparagraph (A), by striking out ‘‘or’’

17 at the end of clause (ii);

18 (2) in subparagraph (B), by striking out the pe19 riod at the end of the subparagraph and inserting in

20 lieu thereof ‘‘; or’’; and

21 (3) by inserting after subparagraph (B) the fol22 lowing new subparagraph:

23 ‘‘(C) in line of duty while remaining over24 night, between successive periods of inactive25 duty training, at or in the vicinity of the site of
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1 the inactive-duty training, and the site is out2 side reasonable commuting distance from the

3 member’s residence.’’.

4 SEC. 703. MEDICAL AND DENTAL CARE FOR MEMBERS OF

5 THE SELECTED RESERVE.

6 (a) MEMBERS OF EARLY DEPLOYING UNITS OF THE

7 ARMY SELECTED RESERVE.—Section 1074a of title 10,

8 United States Code, is amended—

9 (1) in subsection (c), by striking out ‘‘this sec10 tion’’ and inserting in lieu thereof ‘‘subsection (b)’’;

11 and

12 (2) by adding at the end the following new sub13 section:

14 ‘‘(d)(1) The Secretary of the Army shall provide to

15 members of the Selected Reserve of the Army who are as16 signed to units scheduled for deployment within 75 days

17 after mobilization the following medical and dental serv18 ices:

19 ‘‘(A) An annual medical screening.

20 ‘‘(B) For members who are over 40 years of

21 age, a full physical examination not less often than

22 once every two years.

23 ‘‘(C) An annual dental screening.

24 ‘‘(D) The dental care identified in an annual

25 dental screening as required to ensure that a mem-
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1 ber meets the dental standards required for deploy2 ment in the event of mobilization.

3 ‘‘(2) The services provided under this subsection shall

4 be provided at no cost to the member.’’.

5 (b) VOLUNTARY DEMONSTRATION PROGRAM TO IM6 PROVE DENTAL READINESS OF SELECTED RESERVE.—

7 (1) For members of the Selected Reserve who are not cov8 ered by subsection (a), the Secretary of Defense shall con9 duct a demonstration program to offer such members af10 fordable dental care for the purpose of ensuring that such

11 members meet the dental standards required for deploy12 ment in the event of mobilization. The Secretary shall de13 termine the geographical scope of the demonstration pro14 gram and the number of members of the Selected Reserve

15 who will be invited to participate in the program. However,

16 participation in the demonstration program shall be of17 fered to the members of at least one ground combat ma18 neuver unit of the Selected Reserve of the Army scheduled

19 for deployment within 90 days after mobilization.

20 (2) The Secretary may model the dental demonstra21 tion program after the dependents’ dental program au22 thorized under section 1076a of title 10, United States

23 Code, except that participants in the demonstration pro24 gram shall be responsible for all costs incurred to provide

25 dental care under the program. The Secretary shall pro-
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1 vide for allotment or deduction from the military pay of

2 participants as a means to pay any premiums required

3 under the demonstration program.

4 (3) The authority to carry out the dental demonstra5 tion program under this subsection shall expire on Sep6 tember 30, 1997.

7 (c) EVALUATION OF DEMONSTRATION PROGRAM.—

8 Not later than March 1, 1997, the Secretary shall submit

9 to Congress a report evaluating the success of the dental

10 demonstration program conducted under subsection (b) in

11 improving the dental readiness of the Selected Reserve.

12 The Secretary shall submit a revised report under this

13 subsection not later than 30 days after the expiration of

14 the demonstration program.

15 (d) CONFORMING REPEALS.—Sections 1117 and

16 1118 of the Army National Guard Combat Readiness Re17 form Act of 1992 (title XI of Public Law 102–484; 10

18 U.S.C. 3077 note) are repealed.

19 Subtitle B—TRICARE Program

20 SEC. 711. PRIORITY USE OF MILITARY TREATMENT FACILI21 TIES FOR PERSONS ENROLLED IN MANAGED

22 CARE INITIATIVES.

23 Section 1097(c) of title 10, United States Code, is

24 amended in the third sentence by striking out ‘‘However,

25 the Secretary may’’ and inserting in lieu thereof ‘‘Notwith-
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1 standing the preferences established by sections 1074(b)

2 and 1076 of this title, the Secretary shall’’.

3 SEC. 712. STAGGERED PAYMENT OF ENROLLMENT FEES

4 FOR TRICARE.

5 Section 1097(e) of title 10, United States Code, is

6 amended by adding at the end the following new sentence:

7 ‘‘Without imposing additional costs on covered bene8 ficiaries who participate in contracts for health care serv9 ices under this section or health care plans offered under

10 section 1099 of this title, the Secretary shall permit such

11 covered beneficiaries to pay, on a monthly or quarterly

12 basis, any enrollment fee required for such participation.’’.

13 SEC. 713. REQUIREMENT OF BUDGET NEUTRALITY FOR

14 TRICARE TO BE BASED ON ENTIRE PRO15 GRAM.

16 (a) CHANGE IN BUDGET NEUTRALITY REQUIRE17 MENTS.—Subsection (c) of section 731 of the National

18 Defense Authorization Act for Fiscal Year 1994 (Public

19 Law 103–160; 10 U.S.C. 1073 note) is amended—

20 (1) by striking out ‘‘each managed health care

21 initiative that includes the option’’ and inserting in

22 lieu thereof ‘‘the TRICARE program’’; and

23 (2) by striking out ‘‘covered beneficiaries who

24 enroll in the option’’ and inserting in lieu thereof

25 ‘‘members of the uniformed services and covered
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1 beneficiaries who participate in the TRICARE pro2 gram’’.

3 (b) ADDITION OF DEFINITION OF TRICARE PRO4 GRAM.—Subsection (d) of such section is amended to read

5 as follows:

6 ‘‘(d) DEFINITIONS.—For purposes of this section:

7 ‘‘(1) The term ‘covered beneficiary’ means a

8 beneficiary under chapter 55 of title 10, United

9 States Code, other than a beneficiary under section

10 1074(a) of such title.

11 ‘‘(2) The term ‘TRICARE program’ means the

12 managed health care program that is established by

13 the Secretary of Defense under the authority of

14 chapter 55 of title 10, United States Code, prin15 cipally section 1097 of such title, and includes the

16 competitive selection of contractors to financially un17 derwrite the delivery of health care services under

18 the Civilian Health and Medical Program of the

19 Uniformed Services.’’.

20 SEC. 714. TRAINING IN HEALTH CARE MANAGEMENT AND

21 ADMINISTRATION FOR TRICARE LEAD

22 AGENTS.

23 (a) PROVISION OF TRAINING.—Not later than six

24 months after the date of the enactment of this Act, the

25 Secretary of Defense shall implement a professional edu-
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1 cational program to provide appropriate training in health

2 care management and administration to each commander

3 of a military medical treatment facility of the Department

4 of Defense who is selected to serve as a lead agent to co5 ordinate the delivery of health care by military and civilian

6 providers under the TRICARE program.

7 (b) TRICARE PROGRAM DEFINED.—For purposes

8 of this section, the term ‘‘TRICARE program’’ means the

9 managed health care program that is established by the

10 Secretary of Defense under the authority of chapter 55

11 of title 10, United States Code, principally section 1097

12 of such title, and includes the competitive selection of con13 tractors to financially underwrite the delivery of health

14 care services under the Civilian Health and Medical Pro15 gram of the Uniformed Services.

16 (c) REPORT ON IMPLEMENTATION.—Not later than

17 six months after the date of the enactment of this Act,

18 the Secretary of Defense shall submit to Congress a report

19 describing the professional educational program imple20 mented pursuant to this section.

21 SEC. 715. EVALUATION AND REPORT ON TRICARE EFFEC22 TIVENESS.

23 (a) EVALUATION REQUIRED.—The Secretary of De24 fense shall arrange for an on-going evaluation of the effec25 tiveness of the TRICARE program in meeting the goals
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1 of increasing the access of covered beneficiaries under

2 chapter 55 of title 10, United States Code, to health care

3 and improving the quality of health care provided to cov4 ered beneficiaries, without increasing the costs incurred by

5 the Government or covered beneficiaries. The evaluation

6 shall specifically address the impact of the TRICARE pro7 gram on military retirees with regard to access, costs, and

8 quality of health care services and identify noncatchment

9 areas in which the HMO option of the TRICARE program

10 will be available. The Secretary shall use a federally fund11 ed research and development center to conduct the evalua12 tion required by this section.

13 (b) ANNUAL REPORT.—Not later than March 1 of

14 each year, the center conducting the evaluation under sub15 section (a) shall submit to Congress a report describing

16 the results of the evaluation during the preceding year.

17 (c) TRICARE PROGRAM DEFINED.—For purposes

18 of this section, the term ‘‘TRICARE program’’ means the

19 managed health care program that is established by the

20 Secretary of Defense under the authority of chapter 55

21 of title 10, United States Code, principally section 1097

22 of such title, and includes the competitive selection of con23 tractors to financially underwrite the delivery of health

24 care services under the Civilian Health and Medical Pro25 gram of the Uniformed Services.
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1 Subtitle C—Uniformed Services

2 Treatment Facilities

3 SEC. 721. LIMITATION ON EXPENDITURES TO SUPPORT

4 UNIFORMED SERVICES TREATMENT FACILI5 TIES AND LIMITATION ON NUMBER OF PAR6 TICIPANTS IN USTF MANAGED CARE PLANS.

7 Subsection (f) of section 1252 of the Department of

8 Defense Authorization Act, 1984 (42 U.S.C. 248d), is

9 amended to read as follows:

10 ‘‘(f) LIMITATION ON EXPENDITURES AND PARTICI11 PANTS.—(1) The total amount of expenditures by the Sec12 retary of Defense to carry out this section and section 911

13 of the Military Construction Authorization Act, 1982 (42

14 U.S.C. 248c), for fiscal year 1996 may not exceed

15 $300,000,000, adjusted by the Secretary to reflect the in16 flation factor used by the Department of Defense for such

17 year.

18 ‘‘(2) During fiscal year 1996, the number of covered

19 beneficiaries under chapter 55 of title 10, United States

20 Code (including covered beneficiaries described in section

21 1086(d)(1) of such title), who are enrolled in managed

22 care plans offered by facilities described in subsection (a)

23 and designated under subsection (c) may not exceed the

24 number of such covered beneficiaries so enrolled as of Oc25 tober 1, 1994.’’.
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1 SEC. 722. APPLICATION OF FEDERAL ACQUISITION REGU2 LATION TO PARTICIPATION AGREEMENTS

3 WITH UNIFORMED SERVICES TREATMENT FA4 CILITIES.

5 (a) Section 718(c) of the National Defense Author6 ization Act for Fiscal Year 1991 (Public Law 101–510;

7 104 Stat. 1587) is amended—

8 (1) in the second sentence of paragraph (1), by

9 striking out ‘‘A participation agreement’’ and insert10 ing in lieu thereof ‘‘Except as provided in paragraph

11 (4), a participation agreement’’;

12 (2) by redesignating paragraph (4) as para13 graph (6); and

14 (3) by inserting after paragraph (3) the follow15 ing new paragraph:

16 ‘‘(4) APPLICATION OF FEDERAL ACQUISITION

17 REGULATION.—On and after the date of the enact18 ment of this paragraph, Uniformed Services Treat19 ment Facilities and any participation agreement be20 tween Uniformed Services Treatment Facilities and

21 the Secretary of Defense shall be subject to the Fed22 eral Acquisition Regulation issued pursuant to sec23 tion 25(c) of the Office of Federal Procurement Pol24 icy Act (41 U.S.C. 421(c)) notwithstanding any pro25 vision to the contrary in such a participation agree26 ment. The requirements regarding competition in
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1 the Federal Acquisition Regulation shall apply with

2 regard to the negotiation of any new participation

3 agreement between the Uniformed Services Treat4 ment Facilities and the Secretary of Defense under

5 this subsection or any other provision of law.’’.

6 (b) SENSE OF CONGRESS.—(1) Congress finds that

7 the Uniformed Services Treatment Facilities provide qual8 ity health care to the 120,000 Department of Defense

9 beneficiaries enrolled in the Uniformed Services Family

10 Health Plan provided by these facilities.

11 (2) In light of such finding, it is the sense of Con12 gress that the Uniformed Services Family Health Plan

13 provided by the Uniformed Services Treatment Facilities

14 should not be terminated for convenience under provisions

15 of the Federal Acquisition Regulation by the Secretary of

16 Defense before the expiration of the current participation

17 agreements.

18 SEC. 723. DEVELOPMENT OF PLAN FOR INTEGRATING UNI19 FORMED SERVICES TREATMENT FACILITIES

20 IN MANAGED CARE PROGRAMS OF DEPART21 MENT OF DEFENSE.

22 Section 718(c) of the National Defense Authorization

23 Act for Fiscal Year 1991 (Public Law 101–510; 104 Stat.

24 1587) is amended by inserting after paragraph (4), as

25 added by section 722, the following new paragraph:
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1 ‘‘(5) PLAN FOR INTEGRATING FACILITIES.—(A)

2 Not later than March 1, 1996, the Secretary of De3 fense shall submit to Congress a plan under which

4 Uniformed Services Treatment Facilities, on or be5 fore September 30, 1997, shall be included in the

6 exclusive health care provider networks established

7 by the Secretary for the geographic regions in which

8 the facilities are located. The Secretary shall address

9 in the plan the feasibility of implementing the man10 aged care plan of the Uniformed Services Treatment

11 Facilities, known as Option II, on a mandatory basis

12 for all USTF Medicare-eligible beneficiaries and the

13 potential cost savings to the Military Health Care

14 Program that could be achieved under such option.

15 ‘‘(B) The plan developed under this paragraph

16 shall be consistent with the requirements specified in

17 paragraph (4). If the plan is not submitted to Con18 gress by the expiration date of the participation

19 agreements entered into under this section, the par20 ticipation agreements shall remain in effect, at the

21 option of the Uniformed Services Treatment Facili22 ties, until the end of the 180-day period beginning

23 on the date the plan is finally submitted.

24 ‘‘(C) For purposes of this paragraph, the term

25 ‘USTF Medicare-eligible beneficiaries’ means cov-
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1 ered beneficiaries under chapter 55 of title 10, Unit2 ed States Code, who are enrolled in a managed

3 health plan offered by the Uniformed Services Treat4 ment Facilities and entitled to hospital insurance

5 benefits under part A of title XVIII of the Social Se6 curity Act (42 U.S.C. 1395c et seq.).’’.

7 SEC. 724. EQUITABLE IMPLEMENTATION OF UNIFORM

8 COST SHARING REQUIREMENTS FOR UNI9 FORMED SERVICES TREATMENT FACILITIES.

10 (a) TIME FOR FEE IMPLEMENTATION.—The uniform

11 managed care benefit fee and copayment schedule devel12 oped by the Secretary of Defense for use in all managed

13 care initiatives of the military health service system, in14 cluding the managed care program of the Uniformed Serv15 ices Treatment Facilities, shall be extended to the man16 aged care program of a Uniformed Services Treatment

17 Facility only after the later of—

18 (1) the implementation of the TRICARE re19 gional program covering the service area of the Uni20 formed Services Treatment Facility; or

21 (2) the end of the 180-day period beginning on

22 the date of the enactment of this Act.

23 (b) SUBMISSION OF ACTUARIAL ESTIMATES.—Para24 graph (2) of subsection (a) shall operate as a condition

25 on the extension of the uniform managed care benefit fee
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1 and copayment schedule to the Uniformed Services Treat2 ment Facilities only if the Uniformed Services Treatment

3 Facilities submit to the Comptroller General of the United

4 States, within 30 days after the date of the enactment of

5 this Act, actuarial estimates in support of their contention

6 that the extension of such fees and copayments will have

7 an adverse effect on the operation of the Uniformed Serv8 ices Treatment Facilities and the enrollment of partici9 pants.

10 (c) EVALUATION.—Except as provided in paragraph

11 (2), not later than 90 days after the date of the enactment

12 of this Act, the Comptroller General shall submit to Con13 gress the results of an evaluation of the effect on the Uni14 formed Services Treatment Facilities of the extension of

15 the uniform benefit fee and copayment schedule to the

16 Uniformed Services Treatment Facilities. The evaluation

17 shall include an examination of whether the benefit fee

18 and copayment schedule may—

19 (A) cause adverse selection of enrollees;

20 (B) be inappropriate for a fully at-risk program

21 similar to civilian health maintenance organizations;

22 or

23 (C) result in an enrolled population dissimilar

24 to the general beneficiary population.
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1 (2) The Comptroller General shall not be required to

2 prepare or submit the evaluation under paragraph (1) if

3 the Uniformed Services Treatment Facilities fail to satis4 factorily comply with subsection (b), as determined by the

5 Comptroller General.

6 Subtitle D—Other Changes to Ex7 isting Laws Regarding Health

8 Care Management

9 SEC. 731. MAXIMUM ALLOWABLE PAYMENTS TO INDIVID10 UAL HEALTH-CARE PROVIDERS UNDER

11 CHAMPUS.

12 (a) MAXIMUM PAYMENT.—Subsection (h) of section

13 1079 of title 10, United States Code, is amended by strik14 ing out paragraph (1) and inserting in lieu thereof the

15 following new paragraph:

16 ‘‘(1) Payment for a charge for services by an individ17 ual health care professional (or other noninstitutional

18 health care provider) for which a claim is submitted under

19 a plan contracted for under subsection (a) may not exceed

20 the lesser of—

21 ‘‘(A) an amount equivalent to the 80th percent22 ile of billed charges made for similar services in the

23 same locality during a 12-month base period; or

24 ‘‘(B) an amount determined to be appropriate,

25 to the extent practicable, in accordance with the
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1 same reimbursement rules as apply to payments for

2 similar services under title XVIII of the Social Secu3 rity Act (42 U.S.C. 1395 et seq.).’’.

4 (b) COMPARISON TO MEDICARE PAYMENTS.—Such

5 subsection is further amended by adding at the end the

6 following new paragraph:

7 ‘‘(3) For the purposes of paragraph (1)(B), the ap8 propriate payment amount shall be determined by the Sec9 retary of Defense, in consultation with the other admin10 istering Secretaries.’’.

11 (c) EXCEPTIONS AND LIMITATIONS.—Such sub12 section is further amended by inserting after paragraph

13 (3), as added by subsection (b), the following new para14 graphs:

15 ‘‘(4) The Secretary of Defense, in consultation with

16 the other administering Secretaries, shall prescribe regula17 tions to provide for such exceptions to the payment limita18 tions under paragraph (1) as the administering Secretar19 ies determine to be necessary to assure that covered bene20 ficiaries retain adequate access to health care services.

21 Such exceptions may include the payment of amounts

22 greater than the amount allowed under paragraph (1)

23 when enrollees in managed care programs obtain covered

24 emergency services from nonparticipating providers. To

25 transition from the payment methods in effect before the
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1 date of the enactment of this paragraph to the methodol2 ogy required by paragraph (1), the amount allowable for

3 any service may not be reduced by more than 15 percent

4 from the amount allowed for the same service during the

5 immediately preceding 12-month period (or other period

6 as established by the Secretary of Defense).

7 ‘‘(5) The Secretary of Defense, in consultation with

8 the other administering Secretaries, shall prescribe regula9 tions to establish limitations (similar to those limitations

10 established under title XVIII of the Social Security Act

11 (42 U.S.C. 1395 et seq.)) on beneficiary liability for

12 charges of an individual health care professional (or other

13 noninstitutional health care provider).’’.

14 (d) CONFORMING AMENDMENT.—Paragraph (2) of

15 such subsection is amended by striking out ‘‘paragraph

16 (1)’’ and inserting in lieu thereof ‘‘paragraph (1)(A)’’.

17 (e) REPORT ON EFFECT OF AMENDMENTS.—Not

18 later than March 1, 1996, the Secretary of Defense shall

19 submit to Congress a report analyzing the effect of the

20 amendments made by this section on the ability or willing21 ness of individual health care professionals and other

22 noninstitutional health care providers to participate in the

23 Civilian Health and Medical Program of the Uniformed

24 Services.
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1 SEC. 732. EXPANSION OF EXISTING RESTRICTION ON USE

2 OF DEFENSE FUNDS FOR ABORTIONS.

3 (a) INCLUSION OF DEFENSE FACILITIES.—Section

4 1093 of title 10, United States Code, is amended by in5 serting after ‘‘Department of Defense’’ the following: ‘‘,

6 and medical treatment facilities or other facilities of the

7 Department of Defense,’’.

8 (b) CLERICAL AMENDMENTS.—(1) The heading of

9 such section is amended by inserting ‘‘or facilities’’

10 after ‘‘funds’’.

11 (2) The item relating to such section in the table of

12 sections at the beginning of chapter 55 of such title is

13 amended to read as follows:

‘‘1093. Restriction on use of funds or facilities for abortions.’’.

14 SEC. 733. IDENTIFICATION OF THIRD-PARTY PAYER SITUA15 TIONS.

16 Section 1095 of title 10, United States Code, is

17 amended by adding at the end the following new sub18 section:

19 ‘‘(k)(1) To improve the administration of this section

20 and sections 1079(j)(1) and 1086(d) of this title, the Sec21 retary of Defense, in consultation with the other admin22 istering Secretaries, may prescribe regulations to collect

23 information regarding insurance, medical service, or

24 health plans of third-party payers held by covered bene25 ficiaries.
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1 ‘‘(2) The collection of information under regulations

2 issued under paragraph (1) shall be conducted in the same

3 manner as provided in section 1862(b)(5) of the Social

4 Security Act (42 U.S.C. 1395y(b)(5)). The Secretary may

5 provide for obtaining from the Commissioner of Social Se6 curity employment information comparable to the infor7 mation provided to the Administrator of the Health Care

8 Financing Administration pursuant to such section. Such

9 regulations may require the mandatory disclosure of social

10 security account numbers for all covered beneficiaries.

11 ‘‘(3) The Secretary of Defense may disclosure rel12 evant employment information collected under this sub13 section to fiscal intermediaries or other designated con14 tractors.

15 ‘‘(4) The Secretary of Defense may provide for con16 tacting employers of covered beneficiaries to obtain group

17 health plan information comparable to the information au18 thorized to be obtained under section 1862(b)(5)(C) of the

19 Social Security Act (42 U.S.C. 1395y(b)(5)(C)). Clause

20 (ii) of such section regarding the imposition of civil money

21 penalties shall apply to the collection of information under

22 this paragraph.

23 ‘‘(5) Information obtained under this subsection may

24 not be disclosed for any purpose other than to carry out
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1 the purpose of this section and sections 1079(j)(1) and

2 1086(d) of this title.’’.

3 SEC. 734. REDESIGNATION OF MILITARY HEALTH CARE AC4 COUNT AS DEFENSE HEALTH PROGRAM AC5 COUNT AND TWO-YEAR AVAILABILITY OF

6 CERTAIN ACCOUNT FUNDS.

7 (a) REDESIGNATION.—Section 1100 of title 10, Unit8 ed States Code, is amended—

9 (1) in subsection (a)(1)—

10 (A) by striking out ‘‘Military Health Care

11 Account’’ and inserting in lieu thereof ‘‘Defense

12 Health Program Account’’; and

13 (B) by striking out ‘‘the Civilian Health

14 and Medical Program of the Uniformed Serv15 ices’’ and inserting in lieu thereof ‘‘medical and

16 health care programs of the Department of De17 fense’’; and

18 (2) in subsection (b)—

19 (A) by striking out ‘‘entering into a con20 tract’’ and inserting in lieu thereof ‘‘conducting

21 programs and activities under this chapter, in22 cluding contracts entered into’’; and

23 (B) by inserting a comma after ‘‘title’’.
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1 (b) TWO YEAR AVAILABILITY OF CERTAIN APPRO2 PRIATIONS.—Subsection (a)(2) of such section is amended

3 to read as follows:

4 ‘‘(2) Three percent of the funds appropriated annu5 ally for the operation and maintenance of the programs

6 and activities authorized by this chapter shall remain

7 available for obligation until the end of the fiscal year fol8 lowing the fiscal year for which the funds were appro9 priated. This paragraph shall not apply for a fiscal year

10 to the extent that a provision of law specifically refers to

11 this paragraph and specifies that this paragraph shall not

12 apply for that fiscal year.’’.

13 (c) CONFORMING AMENDMENTS.—Such section is

14 further amended—

15 (1) by striking out subsections (c), (d), and (f);

16 and

17 (2) by redesignating subsection (e) as sub18 section (c).

19 (d) CLERICAL AMENDMENTS.—(1) The heading of

20 such section is amended to read as follows:

21 ‘‘§ 1100. Defense Health Program Account’’.

22 (2) The item relating to such section in the table of

23 sections at the beginning of chapter 55 of such title is

24 amended to read as follows:

‘‘1100. Defense Health Program Account.’’.
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1 SEC. 735. EXPANSION OF FINANCIAL ASSISTANCE PRO2 GRAM FOR HEALTH-CARE PROFESSIONALS IN

3 RESERVE COMPONENTS TO INCLUDE DEN4 TAL SPECIALTIES.

5 Section 16201(b) of title 10, United States Code, is

6 amended—

7 (1) in the subsection heading, by inserting

8 ‘‘AND DENTISTS’’ after ‘‘PHYSICIANS’’;

9 (2) in paragraph (1)(A), by inserting ‘‘or dental

10 school’’ after ‘‘medical school’’;

11 (3) in paragraphs (1)(B) and (2)(B), by insert12 ing ‘‘or dental officer’’ after ‘‘medical officer’’; and

13 (4) in paragraph (1)(C), by striking out ‘‘physi14 cians in a medical specialty’’ and inserting in lieu

15 thereof ‘‘physicians or dentists in a medical or den16 tal specialty’’.

17 SEC. 736. ELIMINATION OF UNNECESSARY ANNUAL RE18 PORTING REQUIREMENTS REGARDING MILI19 TARY HEALTH CARE.

20 Section 1252 of the Department of Defense Author21 ization Act, 1984 (42 U.S.C. 248d), is amended by strik22 ing out subsection (d).
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1 Subtitle E—Other Matters

2 SEC. 741. TERMINATION OF PROGRAM TO TRAIN AND UTI3 LIZE MILITARY PSYCHOLOGISTS TO PRE4 SCRIBE PSYCHOTROPIC MEDICATIONS.

5 (a) TERMINATION.—Immediately after the date of

6 the enactment of this Act, the Secretary of Defense shall

7 terminate the demonstration pilot program for training

8 and utilizing military psychologists in the prescription of

9 psychotropic medications, which is referred to in section

10 8097 of the Department of Defense Appropriations Act,

11 1991 (Public Law 101–511; 104 Stat. 1897). None of the

12 funds appropriated to the Department of Defense for a

13 fiscal year after fiscal year 1995 may be used to train psy14 chologists to be able to prescribe psychotropic medications.

15 (b) EFFECT ON AUTHORITY TO PRESCRIBE PSYCHO16 TROPIC MEDICATIONS.—Psychologists who participated in

17 the demonstration pilot training program regarding the

18 prescription of psychotropic medications shall not be au19 thorized to prescribe such medications despite the comple20 tion of training under the program.

21 SEC. 742. WAIVER OF COLLECTION OF PAYMENTS DUE

22 FROM CERTAIN PERSONS UNAWARE OF LOSS

23 OF CHAMPUS ELIGIBILITY.

24 (a) AUTHORITY TO WAIVE COLLECTION.—The ad25 ministering Secretaries may waive the collection of pay-
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1 ments otherwise due from a person described in subsection

2 (b) as a result of the receipt by the person of health bene3 fits under section 1086 of title 10, United States Code,

4 after the termination of the person’s eligibility for such

5 benefits.

6 (b) PERSONS ELIGIBLE FOR WAIVER.—A person

7 shall be eligible for relief under subsection (a) if the per8 son—

9 (1) is a person described in paragraph (1) of

10 subsection (d) of section 1086 of title 10, United

11 States Code;

12 (2) in the absence of such paragraph, would

13 have been eligible for health benefits under such sec14 tion; and

15 (3) at the time of the receipt of such benefits,

16 satisfied the criteria specified in subparagraphs (A)

17 and (B) of paragraph (2) of such subsection.

18 (c) EXTENT OF WAIVER AUTHORITY.—The authority

19 to waive the collection of payments pursuant to this sec20 tion shall apply with regard to health benefits provided

21 under section 1086 of title 10, United States Code, to per22 sons described in subsection (b) during the period begin23 ning on January 1, 1967, and ending on the later of—

24 (1) the termination date of any special enroll25 ment period provided under title XVIII of the Social
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1 Security Act (42 U.S.C. 1395c et seq.) specifically

2 for such persons; and

3 (2) July 1, 1996.

4 (d) DEFINITIONS.—For purposes of this section, the

5 term ‘‘administering Secretaries’’ has the meaning given

6 such term in section 1072(3) of title 10, United States

7 Code.

8 SEC. 743. NOTIFICATION OF CERTAIN CHAMPUS COVERED

9 BENEFICIARIES OF LOSS OF CHAMPUS ELIGI10 BILITY.

11 Section 1086(d) of title 10, United States Code, is

12 amended by adding at the end the following new para13 graph:

14 ‘‘(4) The administering Secretaries shall develop a

15 mechanism by which persons described in paragraph (1)

16 who satisfy only the criteria specified in subparagraphs

17 (A) and (B) of paragraph (2), but not subparagraph (C)

18 of such paragraph, are promptly notified of their ineligibil19 ity for health benefits under this section. The administer20 ing Secretaries shall consult with the Secretary of Health

21 and Human Services and the Health Care Financing Ad22 ministration regarding a method to promptly identify per23 sons requiring notice under this subsection.’’.
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1 SEC. 744. DEMONSTRATION PROGRAM TO TRAIN MILITARY

2 MEDICAL PERSONNEL IN CIVILIAN SHOCK

3 TRAUMA UNITS.

4 (a) DEMONSTRATION PROGRAM.—Not later than

5 April 1, 1996, the Secretary of Defense shall implement

6 a demonstration program to evaluate the feasibility of pro7 viding shock trauma training for military medical person8 nel through the use of civilian hospitals. Pursuant to an

9 agreement between the Secretary and one or more public

10 or nonprofit hospitals, the Secretary shall assign military

11 medical personnel participating in the demonstration pro12 gram to temporary duty in shock trauma units operated

13 by the hospitals that are parties to the agreement. As con14 sideration for the services provided by military medical

15 personnel under the agreement, the agreement shall re16 quire the hospitals to provide appropriate care to members

17 of the Armed Forces and to other persons whose care in

18 the hospital would otherwise require reimbursement by the

19 Secretary. The value of the services provided by the hos20 pitals shall be at least equal to the value of the services

21 provided by military medical personnel under the agree22 ment.

23 (b) TERMINATION OF PROGRAM.—The authority of

24 the Secretary of Defense to conduct the demonstration

25 program under this section, and any agreement entered
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1 into under the demonstration program, shall expire on

2 March 31, 1998.

3 (c) REPORT AND EVALUATION OF PROGRAM.—(1)

4 Not later than March 1 of each year in which the dem5 onstration program is conducted under this section, the

6 Secretary of Defense shall submit to Congress a report

7 describing the scope and activities of the demonstration

8 program during the preceding year.

9 (2) Not later than May 1, 1998, the Comptroller Gen10 eral of the United States shall submit to Congress a report

11 evaluating the effectiveness of the demonstration program

12 in providing shock trauma training for military medical

13 personnel.

14 SEC. 745. STUDY REGARDING DEPARTMENT OF DEFENSE

15 EFFORTS TO DETERMINE APPROPRIATE

16 FORCE LEVELS OF WARTIME MEDICAL PER17 SONNEL.

18 (a) STUDY REQUIRED.—The Comptroller General of

19 the United States shall conduct a study to evaluate the

20 reasonableness of the models used by each military depart21 ment for determining the appropriate wartime force level

22 for medical personnel in the department. The study shall

23 include the following:

24 (1) An assessment of the modeling techniques

25 used by each department.
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1 (2) An analysis of the data used in the models

2 to identify medical personnel requirements.

3 (3) An identification of the ability of the models

4 to integrate personnel of reserve components to meet

5 department requirements.

6 (4) An evaluation of the ability of the Secretary

7 of Defense to integrate the various modeling efforts

8 into a comprehensive, coordinated plan for obtaining

9 the optimum force level for wartime medical person10 nel.

11 (b) REPORT OF STUDY.—Not later than June 30,

12 1996, the Comptroller General shall report to Congress

13 on the results of the study conducted under subsection (a).

14 SEC. 746. STUDY REGARDING EXPANDED MENTAL HEALTH

15 SERVICES FOR CERTAIN COVERED BENE16 FICIARIES.

17 (a) STUDY REQUIRED.—In connection with the men18 tal health services already available for covered bene19 ficiaries under chapter 55 of title 10, United States Code,

20 who are children and require residential treatment, the

21 Secretary of Defense shall conduct a study regarding the

22 feasibility of expanding such services to include a program

23 of individualized continued care following completion of

24 the residential treatment to compliment the residential

25 treatment and prevent recidivism.
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1 (b) REPORT OF STUDY.—Not later than March 1,

2 1996, the Secretary of Defense shall submit to Congress

3 a report describing the results of the study conducted

4 under subsection (a).

5 SEC. 747. REPORT ON IMPROVED ACCESS TO MILITARY

6 HEALTH CARE FOR COVERED BENEFICIARIES

7 ENTITLED TO MEDICARE.

8 Not later than March 1, 1996, the Secretary of De9 fense shall submit to Congress a report evaluating the fea10 sibility, costs, and consequences for the military health

11 care system of improving access to the system for covered

12 beneficiaries under chapter 55 of title 10, United States

13 Code, who have limited access to military medical treat14 ment facilities and are ineligible for the Civilian Health

15 and Medical Program of the Uniformed Services under

16 section 1086(d)(1) of such title. The alternatives the Sec17 retary shall consider to improve access for such covered

18 beneficiaries shall include—

19 (1) whether CHAMPUS should serve as a sec20 ond payer for covered beneficiaries who are entitled

21 to hospital insurance benefits under part A of title

22 XVIII of the Social Security Act (42 U.S.C. 1395c

23 et seq.); and

24 (2) whether such covered beneficiaries should be

25 offered enrollment in the Federal Employees Health
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1 Benefits program under chapter 89 of title 5, United

2 States Code.

3 SEC. 748. SENSE OF CONGRESS ON CONTINUITY OF

4 HEALTH CARE SERVICES FOR COVERED

5 BENEFICIARIES ADVERSELY AFFECTED BY

6 CLOSURES OF MILITARY MEDICAL TREAT7 MENT FACILITIES.

8 (a) FINDING.—Congress finds the following:

9 (1) Military installations selected for closure in

10 the 1991 and 1993 rounds of the base closure proc11 ess are approaching their closing dates.

12 (2) Additional military installations are being

13 selected for closure in the 1995 round of the base

14 closure process.

15 (3) As a result of these base closures, tens of

16 thousands of covered beneficiaries under chapter 55

17 of title 10, United States Code, who reside in the vi18 cinity of affected installations will be left without im19 mediate access to military medical treatment facili20 ties.

21 (b) SENSE OF CONGRESS.—In light of the findings

22 specified in subsection (a), it is the sense of Congress that

23 the Secretary of Defense should take all appropriate steps

24 necessary to ensure the continuation of medical and phar-
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1 maceutical benefits to covered beneficiaries adversely af2 fected by the closure of military installations.

3 TITLE VIII—ACQUISITION POL4 ICY, ACQUISITION MANAGE5 MENT, AND RELATED MAT6 TERS

7 Subtitle A—Competition

8 SEC. 801. COMPETITION PROVISIONS.

9 (a) CONFERENCE BEFORE SUBMISSION OF BIDS OR

10 PROPOSALS.—(1) Section 2305(a) of title 10, United

11 States Code, is amended by adding at the end the follow12 ing paragraph:

13 ‘‘(6) To the extent practicable, for each procurement

14 of property or services by an agency, the head of the agen15 cy shall provide for a conference on the procurement to

16 be held for anyone interested in submitting a bid or pro17 posal in response to the solicitation for the procurement.

18 The purpose of the conference shall be to inform potential

19 bidders and offerors of the needs of the agency and the

20 qualifications considered necessary by the agency to com21 pete successfully in the procurement.’’.

22 (2) Section 303A of the Federal Property and Admin23 istrative Services Act of 1949 (41 U.S.C. 253a) is amend24 ed by adding at the end the following new subsection:
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1 ‘‘(f) To the extent practicable, for each procurement

2 of property or services by an agency, an executive agency

3 shall provide for a conference on the procurement to be

4 held for anyone interested in submitting a bid or proposal

5 in response to the solicitation for the procurement. The

6 purpose of the conference shall be to inform potential bid7 ders and offerors of the needs of the executive agency and

8 the qualifications considered necessary by the executive

9 agency to compete successfully in the procurement.’’.

10 (b) DESCRIPTION OF SOURCE SELECTION PLAN IN

11 SOLICITATION.—(1) Section 2305(a) of title 10, United

12 States Code, is further amended in paragraph (2)—

13 (A) by striking out ‘‘and’’ after the semicolon

14 at the end of subparagraph (A);

15 (B) by striking out the period at the end of

16 subparagraph (B) and inserting in lieu thereof ‘‘;

17 and’’; and

18 (C) by adding at the end the following new sub19 paragraph:

20 ‘‘(C) a description, in as much detail as is prac21 ticable, of the source selection plan of the agency, or

22 a notice that such plan is available upon request.’’.

23 (2) Section 303A of the Federal Property and Admin24 istrative Services Act of 1949 (41 U.S.C. 253a) is further

25 amended in subsection (b)—
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1 (A) by striking out ‘‘and’’ after the semicolon

2 at the end of paragraph (1);

3 (B) by striking out the period at the end of

4 paragraph (2) and inserting in lieu thereof ‘‘; and’’;

5 and

6 (C) by adding at the end the following new

7 paragraph:

8 ‘‘(3) a description, in as much detail as is prac9 ticable, of the source selection plan of the executive

10 agency, or a notice that such plan is available upon

11 request.’’.

12 (c) DISCUSSIONS NOT NECESSARY WITH EVERY

13 OFFEROR.—(1) Section 2305(b)(4)(A)(i) of title 10, Unit14 ed States Code, is amended by inserting before the semi15 colon the following: ‘‘and provided that discussions need

16 not be conducted with an offeror merely to permit that

17 offeror to submit a technically acceptable revised pro18 posal’’.

19 (2) Section 303B(d)(1)(A) of the Federal Property

20 and Administrative Services Act of 1949 (41 U.S.C. 253b)

21 is amended by inserting before the semicolon the following:

22 ‘‘and provided that discussions need not be conducted with

23 an offeror merely to permit that offeror to submit a tech24 nically acceptable revised proposal’’.
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1 (d) PRELIMINARY ASSESSMENTS OF COMPETITIVE

2 PROPOSALS.—(1) Section 2305(b)(2) of title 10, United

3 States Code, is amended by adding at the end the follow4 ing: ‘‘With respect to competitive proposals, the head of

5 the agency may make a preliminary assessment of a pro6 posal received, rather than a complete evaluation of the

7 proposal, and may eliminate the proposal from further

8 consideration if the head of the agency determines the pro9 posal has no chance for contract award.’’.

10 (2) Section 303B(b) of the Federal Property and Ad11 ministrative Services Act of 1949 (41 U.S.C. 253b(b)) is

12 amended by adding at the end the following: ‘‘With respect

13 to competitive proposals, the head of the agency may make

14 a preliminary assessment of a proposal received, rather

15 than a complete evaluation of the proposal, and may elimi16 nate the proposal from further consideration if the head

17 of the agency determines the proposal has no chance for

18 contract award.’’.

19 (e) FEDERAL ACQUISITION REGULATION.—The Fed20 eral Acquisition Regulation shall be revised to reflect the

21 amendments made by subsections (a), (b), (c), and (d).

22 SEC. 802. PREAWARD DEBRIEFINGS.

23 (a) ARMED SERVICES ACQUISITIONS.—Section

24 2305(b) of title 10, United States Code, is amended—
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1 (1) by striking out subparagraph (F) of para2 graph (5);

3 (2) by redesignating paragraph (6) as para4 graph (8); and

5 (3) by inserting after paragraph (5) the follow6 ing new paragraphs:

7 ‘‘(6)(A) When the contracting officer excludes

8 an offeror submitting a competitive proposal from

9 the competitive range (or otherwise excludes such an

10 offeror from further consideration prior to the final

11 source selection decision), the excluded offeror may

12 request in writing, within three days after the date

13 on which the excluded offeror receives notice of its

14 exclusion, a debriefing prior to award. The contract15 ing officer shall make every effort to debrief the un16 successful offeror as soon as practicable and may

17 refuse the request for a debriefing if it is not in the

18 best interests of the Government to conduct a de19 briefing at that time.

20 ‘‘(B) The contracting officer is required to de21 brief an excluded offeror in accordance with para22 graph (5) of this section only if that offeror re23 quested and was refused a preaward debriefing

24 under subparagraph (A) of this paragraph.
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1 ‘‘(C) The debriefing conducted under this sub2 section shall include—

3 ‘‘(i) the executive agency’s evaluation of

4 the significant elements in the offeror’s offer;

5 ‘‘(ii) a summary of the rationale for the

6 offeror’s exclusion; and

7 ‘‘(iii) reasonable responses to relevant

8 questions posed by the debriefed offeror as to

9 whether source selection procedures set forth in

10 the solicitation, applicable regulations, and

11 other applicable authorities were followed by the

12 executive agency.

13 ‘‘(D) The debriefing conducted pursuant to this

14 subsection may not disclose the number or identity

15 of other offerors and shall not disclose information

16 about the content, ranking, or evaluation of other

17 offerors’ proposals.

18 ‘‘(7) The contracting officer shall include a summary

19 of any debriefing conducted under paragraph (5) or (6)

20 in the contract file.’’.

21 (b) CIVILIAN AGENCY ACQUISITIONS.—Section 303B

22 of the Federal Property and Administrative Services Act

23 of 1949 (41 U.S.C. 253b) is amended—

24 (1) by striking out paragraph (6) of subsection

25 (e);
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1 (2) by redesignating subsections (f), (g), (h),

2 and (i) as subsections (h), (i), (j), and (k), respec3 tively; and

4 (3) by inserting after subsection (e) the follow5 ing new subsections:

6 ‘‘(f)(1) When the contracting officer excludes an

7 offeror submitting a competitive proposal from the com8 petitive range (or otherwise excludes such an offeror from

9 further consideration prior to the final source selection de10 cision), the excluded offeror may request in writing, within

11 3 days after the date on which the excluded offeror re12 ceives notice of its exclusion, a debriefing prior to award.

13 The contracting officer shall make every effort to debrief

14 the unsuccessful offeror as soon as practicable and may

15 refuse the request for a debriefing if it is not in the best

16 interests of the Government to conduct a debriefing at

17 that time.

18 ‘‘(2) The contracting officer is required to debrief an

19 excluded offeror in accordance with subsection (e) of this

20 section only if that offeror requested and was refused a

21 preaward debriefing under paragraph (1) of this sub22 section.

23 ‘‘(3) The debriefing conducted under this subsection

24 shall include—
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1 ‘‘(A) the executive agency’s evaluation of the

2 significant elements in the offeror’s offer;

3 ‘‘(B) a summary of the rationale for the

4 offeror’s exclusion; and

5 ‘‘(C) reasonable responses to relevant questions

6 posed by the debriefed offeror as to whether source

7 selection procedures set forth in the solicitation, ap8 plicable regulations, and other applicable authorities

9 were followed by the executive agency.

10 ‘‘(4) The debriefing conducted pursuant to this sub11 section may not disclose the number or identity of other

12 offerors and shall not disclose information about the con13 tent, ranking, or evaluation of other offerors’ proposals.

14 ‘‘(g) The contracting officer shall include a summary

15 of the any debriefing conducted under subsection (e) or

16 (f) in the contract file.’’.

17 SEC. 803. CONTRACT TYPES.

18 (a) ARMED SERVICES ACQUISITIONS.—(1) Section

19 2306 of title 10, United States Code, is amended—

20 (A) by inserting before the period at the end of

21 subsection (a) the following: ‘‘, based on market con22 ditions, established commercial practice (if any) for

23 the product or service being acquired, and sound

24 business judgment’’;
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1 (B) by striking out subsections (b), (d), (e), (f),

2 and (h); and

3 (C) by redesignating subsection (g) as sub4 section (b).

5 (2) The heading of such section is amended to read

6 as follows:

7 ‘‘§ 2306. Contract types’’.

8 (b) CIVILIAN AGENCY ACQUISITIONS.—(1) Section

9 304 of the Federal Property and Administrative Services

10 Act of 1949 (41 U.S.C. 254) is amended—

11 (A) by inserting before the period at the end of

12 the first sentence of subsection (a) the following: ‘‘,

13 based on market conditions, established commercial

14 practice (if any) for the product or service being ac15 quired, and sound business judgment’’; and

16 (B) by striking out ‘‘Every contract award’’ in

17 the second sentence of subsection (a) and all that

18 follows through the end of the section.

19 (2) The heading of such section is amended to read

20 as follows:

21 ‘‘SEC. 304. CONTRACT TYPES.’’.

22 (c) CONFORMING REPEALS.—(1) Sections 4540,

23 7212, and 9540 of title 10, United States Code, are re24 pealed.
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1 (2) The table of sections at the beginning of chapter

2 433 of such title is amended by striking out the item relat3 ing to section 4540.

4 (3) The table of sections at the beginning of chapter

5 631 of such title is amended by striking out the item relat6 ing to section 7212.

7 (4) The table of sections at the beginning of chapter

8 933 of such title is amended by striking out the item relat9 ing to section 9540.

10 (d) CIVIL WORKS AUTHORITY.—(1) Chapter 137 of

11 title 10, United States Code, is amended by adding at the

12 end the following new section:

13 ‘‘§ 2332. Contracts for architectural and engineering

14 services and construction design

15 ‘‘The Secretary of Defense and the Secretaries of the

16 military departments may enter into contracts for archi17 tectural and engineering services in connection with a mili18 tary construction or family housing project or for other

19 Department of Defense or military department purposes.

20 Such contracts shall be awarded in accordance with the

21 Brooks Architect-Engineers Act (40 U.S.C. 541 et seq.).’’.

22 (2) The table of sections at the beginning of chapter

23 137 of such title is amended by adding at the end the

24 following new item:

‘‘2332. Contracts for architectural and engineering services and construction design.’’.
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1 (3) Section 2855 of such title is repealed. The table

2 of sections at the beginning of chapter 169 of such title

3 is amended by striking out the item relating to such sec4 tion.

5 Subtitle B—Commercial Items

6 SEC. 811. COMMERCIAL ITEM EXCEPTION TO REQUIRE7 MENT FOR COST OR PRICING DATA AND IN8 FORMATION LIMITATIONS.

9 (a) ARMED SERVICES ACQUISITIONS.—(1) Sub10 sections (b), (c), and (d) of section 2306a of title 10, Unit11 ed States Code, are amended to read as follows:

12 ‘‘(b) EXCEPTIONS.—

13 ‘‘(1) IN GENERAL.—Submission of cost or pric14 ing data shall not be required under subsection (a)

15 in the case of a contract, a subcontract, or modifica16 tion of a contract or subcontract—

17 ‘‘(A) for which the price agreed upon is

18 based on—

19 ‘‘(i) adequate price competition; or

20 ‘‘(ii) prices set by law or regulation;

21 ‘‘(B) for the acquisition of a commercial

22 item; or

23 ‘‘(C) in an exceptional case when the head

24 of the procuring activity, without delegation, de25 termines that the requirements of this section
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1 may be waived and justifies in writing the rea2 sons for such determination.

3 ‘‘(2) MODIFICATIONS OF CONTRACTS AND SUB4 CONTRACTS FOR COMMERCIAL ITEMS.—In the case

5 of a modification of a contract or subcontract for a

6 commercial item that is not covered by the exception

7 on the submission of cost or pricing data in para8 graph (1)(A) or (1)(B), submission of cost or pricing

9 data shall not be required under subsection (a) if—

10 ‘‘(A) the contract or subcontract being

11 modified is a contract or subcontract for which

12 submission of cost or pricing data may not be

13 required by reason of paragraph (1)(A) or

14 (1)(B); and

15 ‘‘(B) the modification would not change

16 the contract or subcontract, as the case may be,

17 from a contract or subcontract for the acquisi18 tion of a commercial item to a contract or sub19 contract for the acquisition of an item other

20 than a commercial item.

21 ‘‘(c) AUTHORITY TO REQUIRE COST OR PRICING

22 DATA ON BELOW-THRESHOLD CONTRACTS.—(1) Subject

23 to paragraph (2), when certified cost or pricing data are

24 not required to be submitted by subsection (a) for a con25 tract, subcontract, or modification of a contract or sub-
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1 contract, such data may nevertheless be required to be

2 submitted by the head of the procuring activity, but only

3 if the head of the procuring activity determines that such

4 data are necessary for the evaluation by the agency of the

5 reasonableness of the price of the contract, subcontract,

6 or modification of a contract or subcontract. In any case

7 in which the head of the procuring activity requires such

8 data to be submitted under this subsection, the head of

9 the procuring activity shall justify in writing the reason

10 for such requirement.

11 ‘‘(2) The head of the procuring activity may not re12 quire certified cost or pricing data to be submitted under

13 this paragraph for any contract or subcontract, or modi14 fication of a contract or subcontract, covered by the excep15 tions in subparagraph (A) or (B) of subsection (b)(1).

16 ‘‘(3) The head of a procuring activity may not dele17 gate functions under this paragraph.

18 ‘‘(d) LIMITATIONS ON OTHER INFORMATION.—The

19 Federal Acquisition Regulation shall include the following:

20 ‘‘(1) Provisions concerning the types of infor21 mation that contracting officers may consider in de22 termining whether the price of a procurement to the

23 Government is fair and reasonable when certified

24 cost or pricing data are not required to be submitted

25 under this section, including appropriate information
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1 on the prices at which the same item or similar

2 items have previously been sold that is adequate for

3 evaluating the reasonableness of the price of the pro4 posed contract or subcontract for the procurement.

5 ‘‘(2) Reasonable limitations on requests for

6 sales data relating to commercial items.

7 ‘‘(3) A requirement that a contracting officer

8 shall, to the maximum extent practicable, limit the

9 scope of any request for information relating to com10 mercial items from an offeror to only that informa11 tion that is in the form regularly maintained by the

12 offeror in commercial operations.

13 ‘‘(4) A statement that any information received

14 relating to commercial items that is exempt from

15 disclosure under section 552(b) of title 5 shall not

16 be disclosed by the Federal Government.’’.

17 (2) Section 2306a of such title is further amended—

18 (A) by striking out subsection (h); and

19 (B) by redesignating subsection (i) as sub20 section (h).

21 (3) Section 2375 of title 10, United States Code, is

22 amended by striking out subsection (c).

23 (b) CIVILIAN AGENCY ACQUISITIONS.—(1) Sub24 sections (b), (c) and (d) of section 304A of the Federal
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1 Property and Administrative Services Act of 1949 (41

2 U.S.C. 254b) are amended to read as follows:

3 ‘‘(b) EXCEPTIONS.—

4 ‘‘(1) IN GENERAL.—Submission of cost or pric5 ing data shall not be required under subsection (a)

6 in the case of a contract, a subcontract, or a modi7 fication of a contract or subcontract—

8 ‘‘(A) for which the price agreed upon is

9 based on—

10 ‘‘(i) adequate price competition; or

11 ‘‘(ii) prices set by law or regulation;

12 ‘‘(B) for the acquisition of a commercial

13 item; or

14 ‘‘(C) in an exceptional case when the head

15 of the procuring activity, without delegation, de16 termines that the requirements of this section

17 may be waived and justifies in writing the rea18 sons for such determination.

19 ‘‘(2) MODIFICATIONS OF CONTRACTS AND SUB20 CONTRACTS FOR COMMERCIAL ITEMS.—In the case

21 of a modification of a contract or subcontract for a

22 commercial item that is not covered by the exception

23 on the submission of cost or pricing data in para24 graph (1)(A) or (1)(B), submission of cost or pricing

25 data shall not be required under subsection (a) if—
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1 ‘‘(A) the contract or subcontract being

2 modified is a contract or subcontract for which

3 submission of cost or pricing data may not be

4 required by reason of paragraph (1)(A) or

5 (1)(B); and

6 ‘‘(B) the modification would not change

7 the contract or subcontract, as the case may be,

8 from a contract or subcontract for the acquisi9 tion of a commercial item to a contract or sub10 contract for the acquisition of an item other

11 than a commercial item.

12 ‘‘(c) AUTHORITY TO REQUIRE COST OR PRICING

13 DATA ON BELOW-THRESHOLD CONTRACTS.—(1) Subject

14 to paragraph (2), when certified cost or pricing data are

15 not required to be submitted by subsection (a) for a con16 tract, subcontract, or modification of a contract or sub17 contract, such data may nevertheless be required to be

18 submitted by the head of the procuring activity, but only

19 if the head of the procuring activity determines that such

20 data are necessary for the evaluation by the agency of the

21 reasonableness of the price of the contract, subcontract,

22 or modification of a contract or subcontract. In any case

23 in which the head of the procuring activity requires such

24 data to be submitted under this subsection, the head of
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1 the procuring activity shall justify in writing the reason

2 for such requirement.

3 ‘‘(2) The head of the procuring activity may not re4 quire certified cost or pricing data to be submitted under

5 this paragraph for any contract or subcontract, or modi6 fication of a contract or subcontract, covered by the excep7 tions in subparagraph (A) or (B) of subsection (b)(1).

8 ‘‘(3) The head of a procuring activity may not dele9 gate the functions under this paragraph.

10 ‘‘(d) LIMITATIONS ON OTHER INFORMATION.—The

11 Federal Acquisition Regulation shall include the following:

12 ‘‘(1) Provisions concerning the types of infor13 mation that contracting officers may consider in de14 termining whether the price of a procurement to the

15 Government is fair and reasonable when certified

16 cost or pricing data are not required to be submitted

17 under this section, including appropriate information

18 on the prices at which the same item or similar

19 items have previously been sold that is adequate for

20 evaluating the reasonableness of the price of the pro21 posed contract or subcontract for the procurement.

22 ‘‘(2) Reasonable limitations on requests for

23 sales data relating to commercial items.

24 ‘‘(3) A requirement that a contracting officer

25 shall, to the maximum extent practicable, limit the
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1 scope of any request for information relating to com2 mercial items from an offeror to only that informa3 tion that is in the form regularly maintained by the

4 offeror in commercial operations.

5 ‘‘(4) A statement that any information received

6 relating to commercial items that is exempt from

7 disclosure under section 552(b) of title 5 shall not

8 be disclosed by the Federal Government.’’.

9 (2) Section 304A of such Act is further amended—

10 (A) by striking out subsection (h); and

11 (B) by redesignating subsection (i) as sub12 section (h).

13 SEC. 812. APPLICATION OF SIMPLIFIED PROCEDURES TO

14 COMMERCIAL ITEMS.

15 (a) ARMED SERVICES ACQUISITIONS.—Section

16 2304(e) of title 10, United States Code, as added by sec17 tion 801(a), is amended—

18 (1) in paragraph (1), by inserting after ‘‘special

19 simplified procedures’’ the following: ‘‘for purchases

20 of commercial items and’’; and

21 (2) by adding at the end the following new

22 paragraph:

23 ‘‘(4) The Federal Acquisition Regulation shall pro24 vide that, in the case of a purchase of commercial items

25 in an amount greater than the simplified acquisition
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1 threshold, the head of an agency may not conduct the pur2 chase on a sole source basis unless the need to do so is

3 justified in writing and approved in accordance with the

4 Federal Acquisition Regulation.

5 (b) CIVILIAN AGENCY ACQUISITIONS.—Section

6 303(e) of the Federal Property and Administrative Serv7 ices Act of 1949 (41 U.S.C. 253), as added by section

8 801(b), is amended—

9 (1) in paragraph (1), by inserting after ‘‘special

10 simplified procedures’’ the following: ‘‘for purchases

11 of commercial items and’’; and

12 (2) by adding at the end the following new

13 paragraph:

14 ‘‘(5) The Federal Acquisition Regulation shall pro15 vide that, in the case of a purchase of commercial items

16 in an amount greater than the simplified acquisition

17 threshold, an executive agency may not conduct the pur18 chase on a sole source basis unless the need to do so is

19 justified in writing and approved in accordance with the

20 Federal Acquisition Regulation.’’.

21 (c) SIMPLIFIED NOTICE.—Section 18 of the Office

22 of Federal Procurement Policy Act (41 U.S.C. 416) is

23 amended in subsection (a)(5) (as redesignated by section

24 801(d))—

25 (1) by striking out ‘‘limited’’; and
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1 (2) by inserting before ‘‘submission’’ the follow2 ing: ‘‘issuance of solicitations and the’’.

3 SEC. 813. AMENDMENT TO DEFINITION OF COMMERCIAL

4 ITEMS.

5 Section 4(12)(F) of the Office of Federal Procure6 ment Policy Act (41 U.S.C. 403(12)(F)) is amended by

7 striking out ‘‘catalog’’.

8 SEC. 814. INAPPLICABILITY OF COST ACCOUNTING STAND9 ARDS TO CONTRACTS AND SUBCONTRACTS

10 FOR COMMERCIAL ITEMS.

11 Subparagraph (B) of section 26(f)(2) of the Office

12 of Federal Procurement Policy Act (41 U.S.C. 422(f)(2))

13 is amended—

14 (1) by striking out clause (i) and inserting in

15 lieu thereof the following:

16 ‘‘(i) Contracts or subcontracts for the acquisi17 tion of commercial items.’’; and

18 (2) by striking out clause (iii).

19 Subtitle C—Additional Reform

20 Provisions

21 SEC. 821. REPEALS OF CERTAIN PROCUREMENT PROVI22 SIONS.

23 (a) POST-EMPLOYMENT RESTRICTIONS.—Sections

24 2397, 2397a, 2397b, and 2397c of title 10, United States

25 Code, are repealed.
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1 (b) LIMITATION ON EXPENDITURE OF APPROPRIA2 TIONS.—Section 2207 of such title is repealed.

3 (c) CERTAIN DELEGATION AUTHORITY.—Section

4 2356 of such title is repealed.

5 (d) SPARE PARTS CONTROL.—Section 2383 of such

6 title is repealed.

7 (e) CLERICAL AMENDMENTS.—(1) The table of sec8 tions at the beginning of chapter 131 of title 10, United

9 States Code, is amended by striking out the item relating

10 to section 2207.

11 (2) The table of sections at the beginning of chapter

12 139 of such title is amended by striking out the item relat13 ing to section 2356.

14 (3) The table of sections at the beginning of chapter

15 141 of title 10, United States Code, is amended by strik16 ing out the items relating to sections 2383, 2397, 2397a,

17 2397b, and 2397c.

18 SEC. 822. FEES FOR CERTAIN TESTING SERVICES.

19 Section 2539b(c) of title 10, United States Code, is

20 amended by inserting ‘‘and indirect’’ after ‘‘recoup the di21 rect’’.

22 SEC. 823. TESTING OF DEFENSE ACQUISITION PROGRAMS.

23 (a) IN GENERAL.—Section 2366 to title 10, United

24 States Code, is amended—
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1 (1) by striking out ‘‘survivability’’ each place it

2 appears (including in the section heading) and in3 serting in lieu thereof ‘‘vulnerability’’; and

4 (2) in subsection (b)—

5 (A) by striking out ‘‘Survivability’’ and in6 serting in lieu thereof ‘‘Vulnerability’’; and

7 (B) by inserting after paragraph (2) the

8 following new paragraph:

9 ‘‘(3) Testing should begin at the component, sub10 system, and subassembly level, culminating with tests of

11 the complete system configured for combat.’’.

12 (b) CLERICAL AMENDMENT.—The item relating to

13 such section in the table of sections at the beginning of

14 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.’’.

15 SEC. 824. COORDINATION AND COMMUNICATION OF DE16 FENSE RESEARCH ACTIVITIES.

17 Section 2364 of title 10, United States Code, is

18 amended—

19 (1) in subsection (b)(5), by striking out ‘‘mile20 stone O, milestone I, and milestone II’’ and insert21 ing in lieu thereof ‘‘acquisition program’’; and

22 (2) in subsection (c), by striking out para23 graphs (2), (3), and (4) and inserting in lieu thereof

24 the following:
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1 ‘‘(2) The term ‘acquisition program decisions’

2 has the meaning prescribed by the Secretary of De3 fense in regulations.’’.

4 SEC. 825. ADDITION OF CERTAIN ITEMS TO DOMESTIC

5 SOURCE LIMITATION.

6 (a) LIMITATION.—(1) Paragraph (3) of section

7 2534(a) of title 10, United States Code, is amended to

8 read as follows:

9 ‘‘(3) VESSEL COMPONENTS FOR ALL BRANCHES

10 OF THE ARMED FORCES.—(A) The following compo11 nents of vessels:

12 ‘‘(i) Air circuit breakers.

13 ‘‘(ii) Vessel propellers with a diameter of

14 six feet or more, if the propellers incorporate

15 only castings poured and finished in the United

16 States.

17 ‘‘(iii) Welded shipboard anchor and moor18 ing chain with a diameter of four inches or less.

19 ‘‘(B) The following components of vessels, to

20 the extent they are unique to marine applications:

21 cable assemblies, hose assemblies, hydraulics and

22 pumps for steering, gyrocompasses, marine

23 autopilots, electronic navigation chart systems, navi24 gators, attitude and heading reference units, power

25 supplies, radars, steering controls, pumps, engines,
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1 turbines, reduction gears, motors, refrigeration sys2 tems, generators, propulsion and machinery control

3 systems, and totally enclosed lifeboards, including

4 associated davits and winches.’’.

5 (2) Section 2534 of such title is amended by adding

6 at the end the following new subsection:

7 ‘‘(h) IMPLEMENTATION OF MARINE VESSEL COMPO8 NENT LIMITATION.—In implementing subsection

9 (a)(3)(B), the Secretary of Defense—

10 ‘‘(1) may not use contract clauses or certifi11 cations; and

12 ‘‘(2) shall use management and oversight tech13 niques that achieve the objective of the subsection

14 without imposing a significant management burden

15 on the Government or the contractor involved.’’.

16 (b) EXTENSION OF LIMITATION RELATING TO BALL

17 BEARINGS AND ROLLER BEARINGS.—Section 2534(c)(3)

18 of such title is amended by striking out ‘‘October 1, 1995’’

19 and inserting in lieu thereof ‘‘October 1, 2000’’.

20 (c) INAPPLICABILITY OF SIMPLIFIED ACQUISITION

21 LIMITATION TO CONTRACTS FOR BALL BEARINGS AND

22 ROLLER BEARINGS.—Section 2534(g) of title 10, United

23 States Code, is amended—

24 (1) by inserting ‘‘(1)’’ before ‘‘This section’’;

25 and
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1 (2) by adding at the end the following new

2 paragraph:

3 ‘‘(2) Paragraph (1) does not apply to contracts for

4 items described in subsection (a)(5) (relating to ball bear5 ings and roller bearings), notwithstanding section 33 of

6 the Office of Federal Procurement Policy Act (41 U.S.C.

7 429).’’.

8 SEC. 826. REVISIONS TO PROCUREMENT NOTICE PROVI9 SIONS.

10 Section 18(a) of the Office of Federal Procurement

11 Policy Act (41 U.S.C. 416(a)) is amended—

12 (1) in subparagraph (B) of paragraph (1)—

13 (A) by striking out ‘‘subsection (f)—’’ and

14 all that follows through the end of the subpara15 graph and inserting in lieu thereof ‘‘subsection

16 (b); and’’; and

17 (B) by inserting after ‘‘property or serv18 ices’’ the following: ‘‘for a price expected to ex19 ceed $10,000 but not to exceed $25,000’’;

20 (2) by striking out paragraph (4); and

21 (3) by redesignating paragraphs (5) and (6) as

22 paragraphs (4) and (5), respectively.
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1 SEC. 827. ENCOURAGEMENT OF USE OF LEASING AUTHOR2 ITY.

3 (a) IN GENERAL.—(1) Chapter 137 of title 10, Unit4 ed States Code, is amended by inserting after section 2316

5 the following new section:

6 ‘‘§ 2317. Equipment leasing

7 ‘‘The Secretary of Defense shall authorize and en8 courage the use of leasing in the acquisition of equipment

9 whenever such leasing is practicable and otherwise author10 ized by law.’’.

11 (2) The table of sections at the beginning of such

12 chapter is amended by adding at the end the following

13 new item:

‘‘2317. Equipment leasing.’’.

14 (b) REPORT.—Not later than 90 days after the date

15 of the enactment of this Act, the Secretary of Defense

16 shall submit to Congress a report setting forth changes

17 in legislation that would be required in order to facilitate

18 the use of leases by the Department of Defense in the

19 acquisition of equipment.

20 SEC. 828. GOVERNMENT RELIANCE ON THE PRIVATE SEC21 TOR.

22 (a) GOVERNMENT RELIANCE ON THE PRIVATE SEC23 TOR.—The Office of Federal Procurement Policy Act (41

24 U.S.C. 401 et seq.) is amended by inserting after section

25 16 the following new section:
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1 ‘‘SEC. 17. GOVERNMENT RELIANCE ON THE PRIVATE SEC2 TOR.

3 ‘‘It is the policy of the Federal Government to rely

4 on the private sector to supply the products and services

5 the Federal Government needs.’’.

6 (b) CLERICAL AMENDMENT.—The table of contents

7 for the Office of Federal Procurement Policy Act (con8 tained in section 1(b)) is amended by inserting after the

9 item relating to section 16 the following new item:

‘‘Sec. 17. Government reliance on the private sector.’’.

10 SEC. 829. ELIMINATION OF CERTAIN CERTIFICATION RE11 QUIREMENTS.

12 (a) ELIMINATION OF CERTAIN STATUTORY CERTIFI13 CATION REQUIREMENTS.—(1)(A) Section 2410 of title 10,

14 United States Code, is amended—

15 (i) in the heading, by striking out ‘‘: certifi16 cation’’; and

17 (ii) in subsection (a)—

18 (I) in the heading, by striking out ‘‘CER19 TIFICATION’’;

20 (II) by striking out ‘‘unless’’ and all that

21 follows through ‘‘that—’’ and inserting in lieu

22 thereof ‘‘unless—’’; and

23 (III) in paragraph (2), by striking out ‘‘to

24 the best of that person’s knowledge and belief’’.
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1 (B) The item relating to section 2410 in the table

2 of sections at the beginning of chapter 141 of such title

3 is amended to read as follows:

‘‘Sec. 2410. Requests for equitable adjustment or other relief.’’.

4 (2) Section 2410b of title 10, United States Code,

5 is amended in paragraph (2) by striking out ‘‘certification

6 and’’.

7 (3) Section 1352(b)(2) of title 31, United States

8 Code, is amended—

9 (A) by striking out subparagraph (C); and

10 (B) by inserting ‘‘and’’ after the semicolon at

11 the end of subparagraph (A).

12 (4) Section 5152 of the Drug-Free Workplace Act of

13 1988 (41 U.S.C. 701) is amended—

14 (A) in subsection (a)(1), by striking out ‘‘has

15 certified to the contracting agency that it will’’ and

16 inserting in lieu thereof ‘‘agrees to’’;

17 (B) in subsection (a)(2), by striking out ‘‘con18 tract includes a certification by the individual’’ and

19 inserting in lieu thereof ‘‘individual agrees’’; and

20 (C) in subsection (b)(1)—

21 (i) by striking out subparagraph (A);

22 (ii) by redesignating subparagraph (B) as

23 subparagraph (A) and in that subparagraph by

24 striking out ‘‘such certification by failing to

25 carry out’’; and
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1 (iii) by redesignating subparagraph (C) as

2 subparagraph (B).

3 (b) ELIMINATION OF CERTAIN REGULATORY CER4 TIFICATION REQUIREMENTS.—

5 (1) CURRENT CERTIFICATION REQUIRE6 MENTS.—Not later than 210 days after the date of

7 the enactment of this Act, any certification required

8 of contractors or offerors by the Federal Acquisition

9 Regulation or an executive agency procurement reg10 ulation that is not specifically imposed by statute

11 shall be removed by the Administrator for Federal

12 Procurement Policy from the Federal Acquisition

13 Regulation or such agency regulation unless—

14 (A) written justification for such certifi15 cation is provided to the Administrator (i) by

16 the Federal Acquisition Regulatory Council (in

17 the case of a certification in the Federal Acqui18 sition Regulation), or (ii) by the head of an ex19 ecutive agency (in the case of a certification in

20 an executive agency procurement regulation);

21 and

22 (B) the Administrator approves in writing

23 the retention of such certification.
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1 (2) FUTURE CERTIFICATION REQUIREMENTS.—

2 (A) Section 29 of the Office of Federal Procurement

3 Policy Act (41 U.S.C. 425) is amended—

4 (i) by amending the heading to read as fol5 lows:

6 ‘‘SEC. 22. CONTRACT CLAUSES AND CERTIFICATIONS.’’;

7 (ii) by inserting ‘‘(a) NONSTANDARD CON8 TRACT CLAUSES.—’’ before ‘‘The Federal Ac9 quisition’’; and

10 (iii) by adding at the end the following new

11 subsection:

12 ‘‘(b) PROHIBITION ON CERTIFICATION REQUIRE13 MENTS.—A requirement for a certification by a contractor

14 or offeror may not be included in the Federal Acquisition

15 Regulation or an executive agency procurement regulation

16 unless—

17 ‘‘(1) the certification is specifically imposed by

18 statute; or

19 ‘‘(2) written justification for such certification

20 is provided to the Administrator for Federal Pro21 curement Policy (A) by the Federal Acquisition Reg22 ulatory Council (in the case of a certification in the

23 Federal Acquisition Regulation), or (B) the head of

24 an executive agency (in the case of a certification in

25 an executive agency procurement regulation), and
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1 the Administrator approves in writing the inclusion

2 of such certification.’’.

3 (B) The item relating to section 29 in the table of

4 contents for the Office of Federal Procurement Policy Act

5 (contained in section 1(b)) (41 U.S.C. 401 note) is amend6 ed to read as follows:

‘‘Sec. 29. Contract clauses and certifications.’’.

7 SEC. 830. AMENDMENT TO COMMENCEMENT AND EXPIRA8 TION OF AUTHORITY TO CONDUCT CERTAIN

9 TESTS OF PROCUREMENT PROCEDURES.

10 Subsection (j) of section 5061 of the Federal Acquisi11 tion Streamlining Act of 1994 (41 U.S.C. 413 note) is

12 amended to read as follows:

13 ‘‘(j) COMMENCEMENT AND EXPIRATION OF AUTHOR14 ITY.—The authority to conduct a test under subsection

15 (a) in an agency and to award contracts under such a test

16 shall take effect on August 1, 1995, and shall expire on

17 August 1, 2000. Contracts entered into before such au18 thority expires in an agency pursuant to a test shall re19 main in effect, notwithstanding the expiration of the au20 thority to conduct the test under this section.’’.

21 SEC. 831. PROCUREMENT INTEGRITY.

22 (a) AMENDMENT OF PROCUREMENT INTEGRITY PRO23 VISION.—Section 27 of the Office of Federal Procurement

24 Policy Act (41 U.S.C. 423) is amended to read as follows:
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1 ‘‘SEC. 27. RESTRICTIONS ON DISCLOSING AND OBTAINING

2 CONTRACTOR BID OR PROPOSAL INFORMA3 TION OR SOURCE SELECTION INFORMATION.

4 ‘‘(a) PROHIBITION ON DISCLOSING PROCUREMENT

5 INFORMATION.—(1) A person described in paragraph (2)

6 shall not, other than as provided by law, knowingly dis7 close contractor bid or proposal information or source se8 lection information before the award of a Federal agency

9 procurement contract to which the information relates.

10 ‘‘(2) Paragraph (1) applies to any person who—

11 ‘‘(A) is a present or former officer or employee

12 of the United States, or a person who is acting or

13 has acted for or on behalf of, or who is advising or

14 has advised the United States with respect to, a

15 Federal agency procurement; and

16 ‘‘(B) by virtue of that office, employment, or re17 lationship has or had access to contractor bid or pro18 posal information or source selection information.

19 ‘‘(b) PROHIBITION ON OBTAINING PROCUREMENT

20 INFORMATION.—A person shall not, other than as pro21 vided by law, knowingly obtain contractor bid or proposal

22 information or source selection information before the

23 award of a Federal agency procurement contract to which

24 the information relates.

25 ‘‘(c) PROHIBITION ON DISCLOSING OR OBTAINING

26 PROCUREMENT INFORMATION IN CONNECTION WITH A
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1 PROTEST.—(1) A person shall not, other than as provided

2 by law, knowingly violate the terms of a protective order

3 described in paragraph (2) by disclosing or obtaining con4 tractor bid or proposal information or source selection in5 formation related to the procurement contract concerned.

6 ‘‘(2) Paragraph (1) applies to any protective order

7 issued by the the United States Board of Contract Appeals

8 in connection with a protest against the award or proposed

9 award of a Federal agency procurement contract.

10 ‘‘(d) PENALTIES AND ADMINISTRATIVE ACTIONS.—

11 ‘‘(1) CRIMINAL PENALTIES.—

12 ‘‘(A) Whoever engages in conduct con13 stituting an offense under subsection (a), (b),

14 or (c) shall be imprisoned for not more than

15 one year or fined as provided under title 18,

16 United States Code, or both.

17 ‘‘(B) Whoever engages in conduct con18 stituting an offense under subsection (a), (b),

19 or (c) for the purpose of either—

20 ‘‘(i) exchanging the information cov21 ered by such subsection for anything of

22 value, or

23 ‘‘(ii) obtaining or giving anyone a

24 competitive advantage in the award of a

25 Federal agency procurement contract,
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1 shall be imprisoned for not more than 15 years

2 or fined as provided under title 18, United

3 States Code, or both.

4 ‘‘(2) CIVIL PENALTIES.—The Attorney General

5 may bring a civil action in the appropriate United

6 States district court against any person who engages

7 in conduct constituting an offense under subsection

8 (a), (b), or (c). Upon proof of such conduct by a

9 preponderance of the evidence, the person is subject

10 to a civil penalty. An individual who engages in such

11 conduct is subject to a civil penalty of not more than

12 $50,000 for each violation plus twice the amount of

13 compensation which the individual received or of14 fered for the prohibited conduct. An organization

15 that engages in such conduct is subject to a civil

16 penalty of not more than $500,000 for each violation

17 plus twice the amount of compensation which the or18 ganization received or offered for the prohibited con19 duct.

20 ‘‘(3) ADMINISTRATIVE ACTIONS.—(A) If a Fed21 eral agency receives information that a contractor or

22 a person has engaged in conduct constituting an of23 fense under subsection (a), (b), or (c), the Federal

24 agency shall consider taking one or more of the fol25 lowing actions, as appropriate:
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1 ‘‘(i) Cancellation of the Federal agency

2 procurement, if a contract has not yet been

3 awarded.

4 ‘‘(ii) Rescission of a contract with respect

5 to which—

6 ‘‘(I) the contractor or someone acting

7 for the contractor has been convicted for

8 an offense under subsection (a), (b), or (c),

9 or

10 ‘‘(II) the head of the agency that

11 awarded the contract has determined,

12 based upon a preponderance of the evi13 dence, that the contractor or someone act14 ing for the contractor has engaged in con15 duct constituting such an offense.

16 ‘‘(iii) Initiation of suspension or debarment

17 proceedings for the protection of the Govern18 ment in accordance with procedures in the Fed19 eral Acquisition Regulation.

20 ‘‘(iv) Initiation of adverse personnel action,

21 pursuant to the procedures in chapter 75 of

22 title 5, United States Code, or other applicable

23 law or regulation.

24 ‘‘(B) If a Federal agency rescinds a contract

25 pursuant to subparagraph (A)(ii), the United States
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1 is entitled to recover, in addition to any penalty pre2 scribed by law, the amount expended under the con3 tract.

4 ‘‘(C) For purposes of any suspension or debar5 ment proceedings initiated pursuant to subpara6 graph (A)(iii), engaging in conduct constituting an

7 offense under subsection (a), (b), or (c) affects the

8 present responsibility of a Government contractor or

9 subcontractor.

10 ‘‘(e) DEFINITIONS.—As used in this section:

11 ‘‘(1) The term ‘contractor bid or proposal infor12 mation’ means any of the following information sub13 mitted to a Federal agency as part of or in connec14 tion with a bid or proposal to enter into a Federal

15 agency procurement contract, if that information has

16 not been previously made available to the public or

17 disclosed publicly:

18 ‘‘(A) Cost or pricing data (as defined by

19 section 2306a(h) of title 10, United States

20 Code, with respect to procurements subject to

21 that section, and section 304A(h) of Federal

22 Property and Administrative Services Act of

23 1949 (41 U.S.C. 254b(h), with respect to pro24 curements subject to that section).

25 ‘‘(B) Indirect costs and direct labor rates.
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1 ‘‘(C) Proprietary information about manu2 facturing processes, operations, or techniques

3 marked by the contractor in accordance with

4 applicable law or regulation.

5 ‘‘(D) Information marked by the contrac6 tor as ‘contractor bid or proposal information’,

7 in accordance with applicable law or regulation.

8 ‘‘(2) The term ‘source selection information’

9 means any of the following information prepared for

10 use by a Federal agency for the purpose of evaluat11 ing a bid or proposal to enter into a Federal agency

12 procurement contract, if that information has not

13 been previously made available to the public or dis14 closed publicly:

15 ‘‘(A) Bid prices submitted in response to a

16 Federal agency solicitation for sealed bids, or

17 lists of those bid prices before public bid open18 ing.

19 ‘‘(B) Proposed costs or prices submitted in

20 response to a Federal agency solicitation, or

21 lists of those proposed costs or prices.

22 ‘‘(C) Source selection plans.

23 ‘‘(D) Technical evaluation plans.

24 ‘‘(E) Technical evaluations of proposals.
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1 ‘‘(F) Cost or price evaluations of propos2 als.

3 ‘‘(G) Competitive range determinations

4 that identify proposals that have a reasonable

5 chance of being selected for award of a con6 tract.

7 ‘‘(H) Rankings of bids, proposals, or com8 petitors.

9 ‘‘(I) The reports and evaluations of source

10 selection panels, boards, or advisory councils.

11 ‘‘(J) Other information marked as ‘source

12 selection information’ based on a case-by-case

13 determination by the head of the agency, his

14 designee, or the contracting officer that its dis15 closure would jeopardize the integrity or suc16 cessful completion of the Federal agency pro17 curement to which the information relates.

18 ‘‘(3) The term ‘Federal agency’ has the mean19 ing provided such term in section 3 of the Federal

20 Property and Administrative Services Act of 1949

21 (40 U.S.C. 472).

22 ‘‘(4) The term ‘Federal agency procurement’

23 means the acquisition (by using competitive proce24 dures and awarding a contract) of goods or services
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1 (including construction) from non-Federal sources

2 by a Federal agency using appropriated funds.

3 ‘‘(5) The term ‘contracting officer’ means a

4 person who, by appointment in accordance with ap5 plicable regulations, has the authority to enter into

6 a Federal agency procurement contract on behalf of

7 the Government and to make determinations and

8 findings with respect to such a contract.

9 ‘‘(6) The term ‘protest’ means a written objec10 tion by an interested party to the award or proposed

11 award of a Federal agency procurement contract,

12 pursuant to title IV of the Federal Acquisition Re13 form Act of 1995.

14 ‘‘(f) LIMITATION ON PROTESTS.—No person may file

15 a protest against the award or proposed award of a Fed16 eral agency procurement contract alleging an offense

17 under subsection (a), (b), or (c), of this section, nor may

18 the United States Board of Contract Appeals consider

19 such an allegation in deciding a protest, unless that person

20 reported to the Federal agency responsible for the pro21 curement information that the person believed constituted

22 evidence of the offense no later than 14 days after the

23 person first discovered the possible offense.

24 ‘‘(g) SAVINGS PROVISIONS.—This section does not—
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1 ‘‘(1) restrict the disclosure of information to, or

2 its receipt by, any person or class of persons author3 ized, in accordance with applicable agency regula4 tions or procedures, to receive that information;

5 ‘‘(2) restrict a contractor from disclosing its

6 own bid or proposal information or the recipient

7 from receiving that information;

8 ‘‘(3) restrict the disclosure or receipt of infor9 mation relating to a Federal agency procurement

10 after it has been canceled by the Federal agency be11 fore contract award unless the Federal agency plans

12 to resume the procurement;

13 ‘‘(4) prohibit individual meetings between a

14 Federal agency employee and an offeror or potential

15 offeror for, or a recipient of, a contract or sub16 contract under a Federal agency procurement, pro17 vided that unauthorized disclosure or receipt of con18 tractor bid or proposal information or source selec19 tion information does not occur;

20 ‘‘(5) authorize the withholding of information

21 from, nor restrict its receipt by, Congress, a commit22 tee or subcommittee of Congress, the Comptroller

23 General, a Federal agency, or an inspector general

24 of a Federal agency;
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1 ‘‘(6) authorize the withholding of information

2 from, nor restrict its receipt by, any board of con3 tract appeals of a Federal agency or the Comptroller

4 General in the course of a protest against the award

5 or proposed award of a Federal agency procurement

6 contract; or

7 ‘‘(7) limit the applicability of any requirements,

8 sanctions, contract penalties, and remedies estab9 lished under any other law or regulation.’’.

10 (b) REPEALS.—The following provisions of law are

11 repealed:

12 (1) Sections 2397, 2397a, 2397b, and 2397c of

13 title 10, United States Code.

14 (2) Section 33 of the Federal Energy Adminis15 tration Act of 1974 (15 U.S.C. 789).

16 (3) Section 281 of title 18, United States Code.

17 (4) Subsection (c) of section 32 of the Office of

18 Federal Procurement Policy Act (41 U.S.C. 428).

19 (5) The first section 19 of the Federal Non20 nuclear Energy Research and Development Act of

21 1974 (42 U.S.C. 5918).

22 (c) CLERICAL AMENDMENTS.—

23 (1) The table of sections at the beginning of

24 chapter 141 of title 10, United States Code, is
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1 amended by striking out the items relating to sec2 tions 2397, 2397a, 2397b, and 2397c.

3 (2) The table of sections at the beginning of

4 chapter 15 of title 18, United States Code, is

5 amended by striking out the item relating to section

6 281.

7 (3) Section 32 of the Office of Federal Procure8 ment Policy Act (41 U.S.C. 428) is amended by re9 designating subsections (d), (e), (f), and (g) as sub10 sections (c), (d), (e), and (f), respectively.

11 SEC. 832. FURTHER ACQUISITION STREAMLINING PROVI12 SIONS.

13 (a) PURPOSE OF OFFICE OF FEDERAL PROCURE14 MENT POLICY.—(1) Section 5(a) of the Office of Federal

15 Procurement Policy Act (41 U.S.C. 404) is amended to

16 read as follows:

17 ‘‘(a) To promote economy, efficiency, and effective18 ness in the procurement of property and services by the

19 executive branch of the Federal Government, there shall

20 be an Office of Federal Procurement Policy (hereinafter

21 referred to as the ‘Office’) in the Office of Management

22 and Budget to provide overall direction of Government23 wide procurement policies, regulations, procedures, and

24 forms for executive agencies.’’.
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1 (2) Sections 2 and 3 of such Act (41 U.S.C. 401 and

2 402) are repealed.

3 (b) REPEAL OF REPORT REQUIREMENT.—Section 8

4 of the Office of Federal Procurement Policy Act (41

5 U.S.C. 407) is repealed.

6 (c) REPEAL OF OBSOLETE PROVISIONS.—(1) Sec7 tions 10 and 11 of the Office of Federal Procurement Pol8 icy Act (41 U.S.C. 409 and 410) are repealed.

9 (d) CLERICAL AMENDMENTS.—The table of contents

10 for the Office of Federal Procurement Policy Act (con11 tained in section 1(b)) is amended by striking out the

12 items relating to sections 2, 3, 8, 10, and 11.

13 SEC. 833. JUSTIFICATION OF MAJOR DEFENSE ACQUISI14 TION PROGRAMS NOT MEETING GOALS.

15 Section 2220(b) of title 10, United States Code, is

16 amended by adding at the end the following: ‘‘In addition,

17 the Secretary shall include in such annual report a jus18 tification for the continuation of any program that—

19 ‘‘(1) is more than 50 percent over the cost goal

20 established for the development, procurement, or

21 operational phase of the program;

22 ‘‘(2) fails to achieve at least 50 percent of the

23 performance capability goals established for the de24 velopment, procurement, or operational phase of the

25 program; or
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1 ‘‘(3) is more than 50 percent behind schedule,

2 as determined in accordance with the schedule goal

3 established for the development, procurement, or

4 operational phase of the program.’’.

5 SEC. 834. ENHANCED PERFORMANCE INCENTIVES FOR AC6 QUISITION WORKFORCE.

7 (a) ARMED SERVICES ACQUISITIONS.—Subsection

8 (b) of section 5001 of the Federal Acquisition Streamlin9 ing Act of 1994 (Public Law 103–355; 108 Stat. 3350;

10 10 U.S.C. 2220 note) is amended—

11 (1) by redesignating paragraphs (1) and (2) as

12 subparagraphs (A) and (B), respectively;

13 (2) by designating the second sentence as para14 graph (2);

15 (3) by inserting ‘‘(1)’’ after ‘‘(b) ENHANCED

16 SYSTEM OF PERFORMANCE INCENTIVES.—’’; and

17 (4) by adding at the end the following:

18 ‘‘(3) The Secretary shall include in the enhanced sys19 tem of incentives the following:

20 ‘‘(A) Pay bands.

21 ‘‘(B) Significant and material pay and pro22 motion incentives to be awarded, and significant and

23 material unfavorable personnel actions to be im24 posed, under the system exclusively, or primarily, on

25 the basis of the contributions of personnel to the
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1 performance of the acquisition program in relation

2 to cost goals, performance goals, and schedule goals.

3 ‘‘(C) Provisions for pay incentives and pro4 motion incentives to be awarded under the system.’’.

5 (b) CIVILIAN AGENCY ACQUISITIONS.—Subsection

6 (c) of section 5051 of the Federal Acquisition Streamlin7 ing Act of 1994 (Public Law 103–355; 108 Stat. 3351;

8 41 U.S.C. 263 note) is amended—

9 (1) by redesignating subparagraphs (A) and

10 (B) of paragraph (2) as clauses (i) and (ii); respec11 tively;

12 (2) by redesignating paragraphs (1) and (2) as

13 subparagraphs (A) and (B), respectively;

14 (3) by inserting ‘‘(1)’’ after ‘‘(c) ENHANCED

15 SYSTEM OF PERFORMANCE INCENTIVES.—’’; and

16 (4) by adding at the end the following:

17 ‘‘(2) The Deputy Director shall include in the en18 hanced system of incentives under paragraph (1)(B) the

19 following:

20 ‘‘(A) Pay bands.

21 ‘‘(B) Significant and material pay and pro22 motion incentives to be awarded, and significant and

23 material unfavorable personnel actions to be im24 posed, under the system exclusively, or primarily, on

25 the basis of the contributions of personnel to the
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1 performance of the acquisition program in relation

2 to cost goals, performance goals, and schedule goals.

3 ‘‘(C) Provisions for pay incentives and pro4 motion incentives to be awarded under the system.’’.

5 SEC. 835. RESULTS ORIENTED ACQUISITION PROGRAM

6 CYCLE.

7 Section 5002(a) of the Federal Acquisition Stream8 lining Act of 1994 (Public Law 103–355; 108 Stat. 3350)

9 is amended—

10 (1) by inserting ‘‘(1)’’ before ‘‘to ensure’’; and

11 (2) by striking out the period at the end and inserting

12 in lieu thereof the following: ‘‘; (2) to ensure that the regu13 lations compress the time periods associated with develop14 ing, procuring, and making operational new systems; and

15 (3) to ensure that Department of Defense directives relat16 ing to development and procurement of information sys17 tems (numbered in the 8000 series) and the Department

18 of Defense directives numbered in the 5000 series are con19 solidated into one series of directives that is consistent

20 with such compressed time periods.’’.

21 SEC. 836. RAPID CONTRACTING GOAL.

22 (a) GOAL.—The Office of Federal Procurement Pol23 icy Act is amended by adding at the end the following new

24 section:
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1 ‘‘SEC. 35. RAPID CONTRACTING GOAL.

2 The Administrator for Federal Procurement Policy

3 shall establish a goal of reducing by 50 percent the time

4 necessary for executive agencies to acquire an item for the

5 user of that item.’’.

6 (b) CLERICAL AMENDMENT.—The table of contents

7 for such Act, contained in section 1(b), is amended by add8 ing at the end the following new item:

‘‘Sec. 35. Rapid contracting goal.’’.

9 SEC. 837. ENCOURAGEMENT OF MULTIYEAR CONTRACTING.

10 (a) ARMED SERVICES ACQUISITIONS.—Section

11 2306b(a) of title 10, United States Code, is amended in

12 the matter preceding paragraph (1) by striking out ‘‘may’’

13 and inserting in lieu thereof ‘‘shall, to the maximum ex14 tent possible,’’.

15 (b) CIVILIAN AGENCY ACQUISITIONS.—Section

16 304B(a) of the Federal Property and Administrative Serv17 ices Act of 1949 (41 U.S.C. 254c(a)) is amended in the

18 matter preceding paragraph (1) by striking out ‘‘may’’

19 and inserting in lieu thereof ‘‘shall, to the maximum ex20 tent possible,’’.
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1 SEC. 838. CONTRACTOR SHARE OF GAINS AND LOSSES

2 FROM COST, SCHEDULE, AND PERFORMANCE

3 EXPERIENCE.

4 (a) ARMED SERVICES ACQUISITIONS.—(1) Chapter

5 137 of title 10, United States Code, is amended by insert6 ing after section 2306b the following new section:

7 ‘‘§ 2306c. Contractor share of gains and losses from

8 cost, schedule, and performance experi9 ence

10 ‘‘The Federal Acquisition Regulation shall contain

11 provisions to ensure that, for any cost-type contract or in12 centive-type contract, the contractor may be rewarded for

13 contract performance exceeding the contract cost, sched14 ule, or performance parameters to the benefit of the Unit15 ed States and may be penalized for failing to adhere to

16 cost, schedule, or performance parameters to the det17 riment of the United States.’’.

18 (2) The table of sections at the beginning of such

19 chapter is amended by inserting after the item relating

20 to section 2306b the following new item:

‘‘2306c. Contractor share of gains and losses from cost, schedule, and performance experience.’’.

21 (b) CIVILIAN AGENCY ACQUISITIONS.—(1) Title III

22 of the Federal Property and Administrative Services Act

23 of 1949 (41 U.S.C. 251 et seq.) is amended by inserting

24 after section 304C the following new section:
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1 ‘‘SEC. 304D. CONTRACTOR SHARE OF GAINS AND LOSSES

2 FROM COST, SCHEDULE, AND PERFORMANCE

3 EXPERIENCE.

4 ‘‘The Federal Acquisition Regulation shall contain

5 provisions to ensure that, for any cost-type contract or in6 centive-type contract, the contractor may be rewarded for

7 contract performance exceeding the contract cost, sched8 ule, or performance parameters to the benefit of the Unit9 ed States and may be penalized for failing to adhere to

10 cost, schedule, or performance parameters to the det11 riment of the United States.’’.

12 (2) The table of contents for such Act, contained in

13 section 1(b), is amended by inserting after the item relat14 ing to section 304C the following new item:

‘‘Sec. 304D. Contractor share of gains and losses from cost, schedule, and performance experience.’’.

15 SEC. 839. PHASE FUNDING OF DEFENSE ACQUISITION PRO16 GRAMS.

17 Chapter 131 of title 10, United States Code, is

18 amended by adding at the end the following new section:

19 ‘‘§ 2221. Funding for results oriented acquisition pro20 gram cycle

21 ‘‘Before initial funding is made available for the de22 velopment, procurement, or operational phase of an acqui23 sition program for which an authorization of appropria24 tions is required by section 114 of this title, the Secretary
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1 of Defense shall submit to Congress information about the

2 objectives and plans for the conduct of that phase and the

3 funding requirements for the entire phase. The informa4 tion shall identify the intended user of the system to be

5 acquired under the program and shall include objective,

6 quantifiable criteria for assessing the extent to which the

7 objectives and goals determined pursuant to section 2435

8 of this title are achieved.’’.

9 (2) The table of sections at the beginning of such

10 chapter is amended by adding at the end the following

11 new item:

‘‘2221. Funding for results oriented acquisition program cycle.’’.

12 SEC. 840. IMPROVED DEPARTMENT OF DEFENSE CON13 TRACT PAYMENT PROCEDURES.

14 (a) REVIEW AND IMPROVEMENT OF PROCEDURES.—

15 The Comptroller General of the United States shall review

16 commercial practices regarding accounts payable and, con17 sidering the results of the review, develop standards for

18 the Secretary of Defense to consider using for improving

19 the contract payment procedures and financial manage20 ment systems of the Department of Defense.

21 (b) GAO REPORT.—Not later than September 30,

22 1996, the Comptroller General shall submit to Congress

23 a report containing the following matters:

24 (1) The weaknesses in the financial manage25 ment processes of the Department of Defense.
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1 (2) Deviations of the Department of Defense

2 payment procedures and financial management sys3 tems from the standards developed pursuant to sub4 section (a), expressed quantitatively.

5 (3) The officials of the Department of Defense

6 who are responsible for resolving the deviations.

7 SEC. 841. CONSIDERATION OF PAST PERFORMANCE IN AS8 SIGNMENT TO ACQUISITION POSITIONS.

9 (a) REQUIREMENT.—Section 1701(a) of title 10,

10 United States Code, is amended by adding at the end the

11 following: ‘‘The policies and procedures shall provide that

12 education and training in acquisition matters, and past

13 performance of acquisition responsibilities, are major fac14 tors in the selection of personnel for assignment to acqui15 sition positions in the Department of Defense.’’.

16 (b) PERFORMANCE REQUIREMENTS FOR ASSIGN17 MENT.—(1) Section 1723(a) of title 10, United States

18 Code, is amended by inserting ‘‘, including requirements

19 relating to demonstrated past performance of acquisition

20 duties,’’ in the first sentence after ‘‘experience require21 ments’’.

22 (2) Section 1724(a)(2) of such title is amended by

23 inserting before the semicolon at the end the following:

24 ‘‘and have demonstrated proficiency in the performance of
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1 acquisition duties in the contracting position or positions

2 previously held’’.

3 (3) Section 1735 of such title is amended—

4 (A) in subsection (b)—

5 (i) by striking out ‘‘and’’ at the end of

6 paragraph (2);

7 (ii) by striking out the period at the end

8 of paragraph (3) and inserting in lieu thereof ‘‘;

9 and’’; and

10 (iii) by adding at the end the following:

11 ‘‘(4) must have demonstrated proficiency in the

12 performance of acquisition duties.’’;

13 (B) in subsection (c)—

14 (i) by striking out ‘‘and’’ at the end of

15 paragraph (2);

16 (ii) by striking out the period at the end

17 of paragraph (3) and inserting in lieu thereof ‘‘;

18 and’’; and

19 (iii) by adding at the end the following:

20 ‘‘(4) must have demonstrated proficiency in the

21 performance of acquisition duties.’’;

22 (C) in subsection (d), by inserting before the

23 period at the end the following: ‘‘, and have dem24 onstrated proficiency in the performance of acquisi25 tion duties’’; and
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1 (D) in subsection (e), by inserting before the

2 period at the end the following: ‘‘, and have dem3 onstrated proficiency in the performance of acquisi4 tion duties’’.

5 SEC. 842. VALUE ENGINEERING FOR FEDERAL AGENCIES.

6 (a) USE OF VALUE ENGINEERING.—The Office of

7 Federal Procurement Policy Act (41 U.S.C. 401 et seq.),

8 as amended by section 837, is further amended by adding

9 at the end the following new section:

10 ‘‘SEC. 37. VALUE ENGINEERING.

11 ‘‘(a) IN GENERAL.—Each executive agency shall es12 tablish and maintain effective value engineering proce13 dures and processes.

14 ‘‘(b) THRESHOLD.—The procedures and processes

15 established pursuant to subsection (a) shall be applied to

16 those programs, projects, systems, and products of an ex17 ecutive agency that, in a ranking of all programs, projects,

18 systems, and products of the agency according to greatest

19 dollar value, are within the highest 20th percentile.

20 ‘‘(c) DEFINITION.—As used in this section, the term

21 ‘value engineering’ means a team effort, performed by

22 qualified agency or contractor personnel, directed at ana23 lyzing the functions of a program, project, system, prod24 uct, item of equipment, building, facility, service, or supply

25 for the purpose of achieving the essential functions at the
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1 lowest life-cycle cost that is consistent with required or

2 improved performance, reliability, quality, and safety.’’.

3 (b) CLERICAL AMENDMENT.—The table of contents

4 for such Act, contained in section 1(b), is amended by add5 ing at the end the following new item:

‘‘Sec. 37. Value engineering.’’.

6 SEC. 843. ACQUISITION WORKFORCE.

7 (a) ACQUISITION WORKFORCE.—(1) The Office of

8 Federal Procurement Policy Act (41 U.S.C. 401 et seq.),

9 as amended by section 843, is further amended by adding

10 at the end the following new section:

11 ‘‘SEC. 38. ACQUISITION WORKFORCE.

12 ‘‘(a) APPLICABILITY.—This section does not apply to

13 an executive agency that is subject to chapter 87 of title

14 10, United States Code.

15 ‘‘(b) MANAGEMENT POLICIES.—

16 ‘‘(1) POLICIES AND PROCEDURES.—The head

17 of each executive agency, after consultation with the

18 Administrator for Federal Procurement Policy, shall

19 establish policies and procedures for the effective

20 management (including accession, education, train21 ing, career development, and performance incentives)

22 of the acquisition workforce of the agency. The de23 velopment of acquisition workforce policies under

24 this section shall be carried out consistent with the

25 merit system principles set forth in paragraphs (1)
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1 and (2) of section 2301(b) of title 5, United States

2 Code.

3 ‘‘(2) UNIFORM IMPLEMENTATION.—The head

4 of each executive agency shall ensure that, to the

5 maximum extent practicable, acquisition workforce

6 policies and procedures established are uniform in

7 their implementation throughout the agency.

8 ‘‘(3) GOVERNMENTWIDE POLICIES AND EVAL9 UATION.—The Administrator shall issue policies to

10 promote uniform implementation of this section by

11 executive agencies, with due regard for differences in

12 program requirements among agencies that may be

13 appropriate and warranted in view of the agency

14 mission. The Administrator shall coordinate with the

15 Deputy Director for Management of the Office of

16 Management and Budget to ensure that such poli17 cies are consistent with the policies and procedures

18 established and enhanced system of incentives pro19 vided pursuant to section 5051(c) of the Federal Ac20 quisition Streamlining Act of 1994 (41 U.S.C. 263

21 note). The Administrator shall evaluate the imple22 mentation of the provisions of this section by execu23 tive agencies.

24 ‘‘(c) SENIOR PROCUREMENT EXECUTIVE AUTHORI25 TIES AND RESPONSIBILITIES.—Subject to the authority,
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1 direction, and control of the head of an executive agency,

2 the senior procurement executive of the agency shall carry

3 out all powers, functions, and duties of the head of the

4 agency with respect to implementation of this section. The

5 senior procurement executive shall ensure that the policies

6 of the head of the executive agency established in accord7 ance with this section are implemented throughout the

8 agency.

9 ‘‘(d) MANAGEMENT INFORMATION SYSTEMS.—The

10 Administrator shall ensure that the heads of executive

11 agencies collect and maintain standardized information on

12 the acquisition workforce related to implementation of this

13 section. To the maximum extent practicable, such data re14 quirements shall conform to standards established by the

15 Office of Personnel Management for the Central Personnel

16 Data File.

17 ‘‘(e) ACQUISITION WORKFORCE.—The programs es18 tablished by this section shall apply to all employees in

19 the General Schedule Contracting series (GS–1102) and

20 the General Schedule Purchasing series (GS–1105), and

21 to any employees regardless of series who have been ap22 pointed as contracting officers whose authority exceeds the

23 micro-purchase threshold, as that term is defined in sec24 tion 32(g). The head of each executive agency may include
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1 employees in other series who perform acquisition or ac2 quisition-related functions.

3 ‘‘(f) CAREER DEVELOPMENT.—

4 ‘‘(1) CAREER PATHS.—The head of each execu5 tive agency shall ensure that appropriate career

6 paths for personnel who desire to pursue careers in

7 acquisition are identified in terms of the education,

8 training, experience, and assignments necessary for

9 career progression to the most senior acquisition po10 sitions. The head of each executive agency shall

11 make information available on such career paths.

12 ‘‘(2) CRITICAL DUTIES AND TASKS.—For each

13 career path, the head of each executive agency shall

14 identify the critical acquisition-related duties and

15 tasks in which, at minimum, employees of the agen16 cy in the career path shall be competent to perform

17 at full performance grade levels. For this purpose,

18 the head of the executive agency shall provide appro19 priate coverage of the critical duties and tasks iden20 tified by the Director of the Federal Acquisition In21 stitute.

22 ‘‘(3) MANDATORY TRAINING AND EDU23 CATION.—For each career path, the head of each ex24 ecutive agency shall establish requirements for the

25 completion of course work and related on-the-job
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1 training in the critical acquisition-related duties and

2 tasks of the career path. The head of each executive

3 agency shall also encourage employees to maintain

4 the currency of their acquisition knowledge and gen5 erally enhance their knowledge of related acquisition

6 management disciplines through academic programs

7 and other self-developmental activities.

8 ‘‘(4) PERFORMANCE INCENTIVES.—The head of

9 each executive agency, acting through the senior

10 procurement executive for the agency, shall provide

11 for an enhanced system of incentives for the encour12 agement of excellence in the acquisition workforce

13 which rewards performance of employees that con14 tribute to achieving the agency’s performance goals.

15 The system of incentives shall include provisions

16 that—

17 ‘‘(A) relate pay to performance;

18 ‘‘(B) provide for consideration, in person19 nel evaluations and promotion decisions, of the

20 extent to which the performance of personnel

21 contributed to achieving the agency’s perform22 ance goals; and

23 ‘‘(C) provide pay and promotion incentives

24 to be awarded, and unfavorable personnel ac25 tions to be imposed, under the system on the
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1 basis of the contributions of personnel to

2 achieving the agency’s performance goals.

3 ‘‘(g) QUALIFICATION REQUIREMENTS.—

4 ‘‘(1) GENERAL SCHEDULE CONTRACTING SE5 RIES (GS–1102).—

6 ‘‘(A) ENTRY LEVEL QUALIFICATIONS.—

7 The Director of the Office of Personnel Man8 agement shall require that, after October 1,

9 1996, a person may not be appointed to a posi10 tion in the GS–1102 occupational series unless

11 the person—

12 ‘‘(i) has received a baccalaureate de13 gree from an accredited educational insti14 tution authorized to grant baccalaureate

15 degrees,

16 ‘‘(ii) has completed at least 24 semes17 ter credit hours (or the equivalent) of

18 study from an accredited institution of

19 higher education in any of the following

20 disciplines: accounting, business finance,

21 law, contracts, purchasing, economics, in22 dustrial management, marketing, quan23 titative methods, or organization and man24 agement, or
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1 ‘‘(iii) has passed a written test deter2 mined by the Administrator for Federal

3 Procurement Policy, after consultation

4 with the Director of the Office of Person5 nel Management, to demonstrate the

6 judgmental skills necessary for positions in

7 this series.

8 ‘‘(B) QUALIFICATIONS FOR SENIOR CON9 TRACTING POSITIONS.—The Director of the Of10 fice of Personnel Management shall require

11 that, after October 1, 1996, persons may be ap12 pointed to positions at and above full perform13 ance grade levels in the GS–1102 occupational

14 series only if those persons—

15 ‘‘(i) have satisfied the educational re16 quirement either of subsection (g)(1)(A)(i)

17 or subsection (g)(1)(A)(ii),

18 ‘‘(ii) have successfully completed all

19 training required for the position under

20 subsection (f)(3), and

21 ‘‘(iii) have satisfied experience and

22 other requirements established by the Di23 rector for such positions.

24 However, this requirement shall apply to per25 sons employed on October 1, 1996, in GS–1102
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1 positions at those grade levels only as a pre2 requisite for promotion to a GS–1102 position

3 at a higher grade.

4 ‘‘(2) GENERAL SCHEDULE PURCHASING SERIES

5 (GS–1105).—The Director of the Office of Personnel

6 Management shall require that, after October 1,

7 1996, a person may not be appointed to a position

8 in the GS–1105 occupational series unless the per9 son—

10 ‘‘(A) has successfully completed 2 years of

11 course work from an accredited educational in12 stitution authorized to grant degrees, or

13 ‘‘(B) has passed a written test determined

14 by the Administrator for Federal Procurement

15 Policy, after consultation with the Director of

16 the Office of Personnel Management, to dem17 onstrate the judgmental skills necessary for po18 sitions in this series.

19 ‘‘(3) CONTRACTING OFFICERS.—The head of

20 each executive agency shall require that, beginning

21 after October 1, 1996, a person may be appointed

22 as a contracting officer with authority to award or

23 administer contracts for amounts above the micro24 purchase threshold, as that term is defined in sec25 tion 32(g), only if the person—
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1 ‘‘(A) has successfully completed all manda2 tory training required of an employee in an

3 equivalent GS–1102 or 1105 position under

4 subsection (f)(3); and

5 ‘‘(B) meets experience and other require6 ments established by the head of the agency,

7 based on the dollar value and complexity of the

8 contracts that the employee will be authorized

9 to award or administer under the appointment

10 as a contracting officer.

11 ‘‘(4) EXCEPTIONS.—(A) The requirements set

12 forth in subsection (g)(1) and (2), as applicable,

13 shall not apply to any person employed in the GS–

14 1101 or GS–1105 series on October 1, 1996.

15 ‘‘(B) Employees of an executive agency who do

16 not satisfy the full qualification requirements for ap17 pointment as a contracting officer under subsection

18 (g)(3) may be appointed as a contracting officer for

19 a temporary period of time under procedures estab20 lished by the agency head. The procedures shall—

21 ‘‘(i) require that the person have completed

22 a significant portion of the required training,

23 ‘‘(ii) require a plan be established for the

24 balance of the required training,
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1 ‘‘(iii) specify a period of time for comple2 tion of the training, and

3 ‘‘(iv) include provisions for withdrawing or

4 terminating the appointment prior to the sched5 uled expiration date, where appropriate.

6 ‘‘(5) WAIVER.—The senior procurement execu7 tive for an executive agency may waive any or all of

8 the qualification requirements of subsections (g)(1)

9 and (2) for a person if the person possesses signifi10 cant potential for advancement to levels of greater

11 responsibility and authority, based on demonstrated

12 job performance and qualifying experience. This au13 thority may not be redelegated by the senior pro14 curement executive. With respect to each waiver

15 granted under this subsection, the senior procure16 ment executive shall set forth in writing the ration17 ale for the decision to waive such requirements.

18 ‘‘(h) PROGRAM ESTABLISHMENT AND IMPLEMENTA19 TION.—

20 ‘‘(1) FUNDING LEVELS.—(A) The head of an

21 executive agency shall request in the budget for a

22 fiscal year for the agency—

23 ‘‘(i) for education and training under this

24 section, an amount equal to no less than 2.5

25 percent of the base aggregate salary cost of the
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1 acquisition workforce subject to this section for

2 that fiscal year; and

3 ‘‘(ii) for salaries of the acquisition

4 workforce, an amount equal to no more than

5 97.5 percent of such base aggregate salary cost.

6 ‘‘(B) The head of the executive agency shall set

7 forth separately the funding levels requested in the

8 budget justification documents submitted in support

9 of the President’s budget submitted to Congress

10 under section 1105 of title 31, United States Code.

11 ‘‘(C) Funds appropriated for education and

12 training under this section may not be obligated or

13 used for any other purpose.

14 ‘‘(2) INTERAGENCY AGREEMENTS.—The head

15 of an executive agency may enter into a written

16 agreement with another agency to participate in pro17 grams established under this section on a reimburs18 able basis.

19 ‘‘(3) TUITION ASSISTANCE.—Notwithstanding

20 the prohibition in section 4107(b) of title 5, United

21 States Code, the head of each executive agency may

22 provide for tuition reimbursement and education (in23 cluding a full-time course of study leading to a de24 gree) for acquisition personnel in the agency related

25 to the purposes of this section.
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1 ‘‘(4) INTERN PROGRAMS.—The head of each ex2 ecutive agency may establish intern programs in

3 order to recruit highly qualified and talented individ4 uals and provide them with opportunities for acceler5 ated promotions, career broadening assignments,

6 and specified training for advancement to senior ac7 quisition positions. For such programs, the head of

8 an executive agency, without regard to the provisions

9 of title 5, United States Code, may appoint individ10 uals to competitive GS–5, GS–7, or GS–9 positions

11 in the General Schedule Contracting series (GS–

12 1102) who have graduated from baccalaureate or

13 master’s programs in purchasing or contracting

14 from accredited educational institutions authorized

15 to grant baccalaureate and master’s degrees.

16 ‘‘(5) COOPERATIVE EDUCATION PROGRAM.—

17 The head of each executive agency may establish an

18 agencywide cooperative education credit program for

19 acquisition positions. Under the program, the head

20 of the executive agency may enter into cooperative

21 arrangements with one or more accredited institu22 tions of higher education which provide for such in23 stitutions to grant undergraduate credit for work

24 performed in such position.

25 ‘‘(6) SCHOLARSHIP PROGRAM.—
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1 ‘‘(A) ESTABLISHMENT.—Where deemed

2 appropriate, the head of each executive agency

3 may establish a scholarship program for the

4 purpose of qualifying individuals for acquisition

5 positions in the agency.

6 ‘‘(B) ELIGIBILITY.—To be eligible to par7 ticipate in a scholarship program established

8 under this paragraph by an executive agency,

9 an individual must—

10 ‘‘(i) be accepted for enrollment or be

11 currently enrolled as a full-time student at

12 an accredited educational institution au13 thorized to grant baccalaureate or grad14 uate degrees (as appropriate);

15 ‘‘(ii) be pursuing a course of edu16 cation that leads toward completion of a

17 bachelor’s, master’s, or doctor’s degree (as

18 appropriate) in a qualifying field of study,

19 as determined by the head of the agency;

20 ‘‘(iii) sign an agreement described in

21 subparagraph (C) under which the partici22 pant agrees to serve a period of obligated

23 service in the agency in an acquisition po24 sition in return for payment of educational
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1 assistance as provided in the agreement;

2 and

3 ‘‘(iv) meet such other requirements as

4 the head of the agency prescribes.

5 ‘‘(C) AGREEMENT.—An agreement be6 tween the head of an executive agency and a

7 participant in a scholarship program established

8 under this paragraph shall be in writing, shall

9 be signed by the participant, and shall include

10 the following provisions:

11 ‘‘(i) The agreement of the head of the

12 agency to provide the participant with edu13 cational assistance for a specified number

14 of school years, not to exceed 4, during

15 which the participant is pursuing a course

16 of education in a qualifying field of study.

17 The assistance may include payment of

18 tuition, fees, books, laboratory expenses,

19 and a stipend.

20 ‘‘(ii) The participant’s agreement—

21 ‘‘(I) to accept such educational

22 assistance,

23 ‘‘(II) to maintain enrollment and

24 attendance in the course of education

25 until completed,
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1 ‘‘(III) while enrolled in such

2 course, to maintain an acceptable level

3 of academic standing (as prescribed

4 by the head of the agency), and

5 ‘‘(IV) after completion of the

6 course of education, to serve as a full7 time employee in an acquisition posi8 tion in the agency for a period of time

9 of one calendar year for each school

10 year or part thereof for which the par11 ticipant was provided a scholarship

12 under the program.

13 ‘‘(D) REPAYMENT.—(i) Any person partici14 pating in a program established under this

15 paragraph shall agree to pay to the United

16 States the total amount of educational assist17 ance provided to the person under the program

18 if the person is voluntarily separated from the

19 agency or involuntarily separated for cause

20 from the agency before the end of the period for

21 which the person has agreed to continue in the

22 service of the agency in an acquisition position.

23 ‘‘(ii) If an employee fails to fulfill the

24 agreement to pay to the Government the total

25 amount of educational assistance provided to
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1 the person under the program, a sum equal to

2 the amount of the educational assistance may

3 be recovered by the Government from the em4 ployee (or the estate of the employee) by setoff

5 against accrued pay, compensation, amount of

6 retirement credit, or other amount due the em7 ployee from the Government; and by such other

8 method as is provided by law for the recovery

9 of amounts owing to the Government.

10 ‘‘(iii) The head of an executive agency may

11 waive in whole or in part a repayment required

12 under this paragraph if the head of the agency

13 determines the recovery would be against equity

14 and good conscience or would be contrary to the

15 best interests of the United States.

16 ‘‘(E) TERMINATION OF AGREEMENT.—

17 There shall be no requirement that a position

18 be offered to a person after such person suc19 cessfully completes a course of education re20 quired by an agreement under this paragraph.

21 If no position is offered, the agreement shall be

22 considered terminated.’’.

23 (2) The table of contents for such Act, contained in

24 section 1(b), is amended by adding at the end the follow25 ing new item:

‘‘Sec. 38. Acquisition workforce.’’.
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1 (b) FEDERAL ACQUISITION INSTITUTE.—Section 6

2 of the Office of Federal Procurement Policy Act (41

3 U.S.C. 405), is amended—

4 (1) in subsection (d) by amending paragraph

5 (5) to read as follows:

6 ‘‘(5) providing for and directing the activities of

7 the Federal Acquisition Institute (including rec8 ommending to the Administrator of General Services

9 a sufficient budget for such activities), which shall

10 be located in the General Services Administration;’’;

11 and

12 (2) by adding at the end the following new sub13 section:

14 ‘‘(l) The Federal Acquisition Institute shall—

15 ‘‘(1) recommend policies, procedures, and

16 guidelines to the Administrator, for—

17 ‘‘(A) fostering and promoting the develop18 ment of a professional acquisition workforce

19 governmentwide, and

20 ‘‘(B) administering the provisions of sec21 tion 35;

22 ‘‘(2) collect data and analyze acquisition

23 workforce data from the Office of Personnel Man24 agement, the heads of executive agencies, and,

25 through periodic surveys, from individual employees;
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1 ‘‘(3) periodically analyze acquisition career

2 fields to identify critical competencies, duties, tasks,

3 and related academic prerequisites, skills, and

4 knowledge;

5 ‘‘(4) coordinate and assist agencies in identify6 ing and recruiting highly qualified candidates for ac7 quisition fields;

8 ‘‘(5) develop instructional materials for acquisi9 tion personnel in coordination with private and pub10 lic acquisition colleges and training facilities;

11 ‘‘(6) evaluate the effectiveness of training and

12 career development programs for acquisition person13 nel;

14 ‘‘(7) promote the establishment and utilization

15 of academic programs by colleges and universities in

16 acquisition fields;

17 ‘‘(8) promote, coordinate, or conduct govern18 mentwide research and studies to improve the acqui19 sition process and the laws, policies, methods, regu20 lations, procedures, and forms relating to acquisition

21 by the executive agencies;

22 ‘‘(9) facilitate, to the extent requested by agen23 cies, interagency intern and training programs; and

24 ‘‘(10) perform other career management or re25 search functions as directed by the Administrator.’’.
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1 (c) REPEAL OF SUPERSEDED PROVISION.—Section

2 502 of the Small Business and Federal Procurement Com3 petition Enhancement Act of 1984 (41 U.S.C. 414a) is

4 repealed.

5 SEC. 844. COST REIMBURSEMENT RULES FOR INDIRECT

6 COSTS ATTRIBUTABLE TO PRIVATE SECTOR

7 WORK OF DEFENSE CONTRACTORS.

8 (a) DEFENSE CAPABILITY PRESERVATION AGREE9 MENT.—The Secretary of Defense may enter into an

10 agreement, to be known as a ‘‘defense capability preserva11 tion agreement’’, with a defense contractor under which

12 the cost reimbursement rules described in subsection (b)

13 shall be applied. Such an agreement may be entered into

14 in any case in which the Secretary determines that the

15 application of such cost reimbursement rules would facili16 tate the achievement of the policy set forth in section

17 2501(c) of title 10, United States Code.

18 (b) COST REIMBURSEMENT RULES.—(1) The cost re19 imbursement rules applicable under an agreement entered

20 into under subsection (a) are as follows:

21 (A) The Department of Defense shall, in deter22 mining the reimbursement due a contractor for its

23 indirect costs of performing a defense contract, allow

24 the contractor to allocate indirect costs to its private

25 sector work only to the extent of the contractor’s al-
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1 locable indirect private sector costs, subject to sub2 paragraph (C).

3 (B) For purposes of subparagraph (A), the allo4 cable indirect private sector costs of a contractor are

5 those costs of the contractor that are equal to the

6 amount by which the revenue attributable to the pri7 vate sector work of the contractor exceeds the sum

8 of—

9 (i) the direct costs attributable to such

10 work, and

11 (ii) the incremental indirect costs attrib12 utable to such work.

13 (C) The total amount of allocable indirect pri14 vate sector costs for a contract in any year of the

15 agreement may not exceed the amount of indirect

16 costs that a contractor would have allocated to its

17 private sector work during that year in accordance

18 with the contractor’s accounting practices.

19 (2) The cost reimbursement rules set forth in para20 graph (1) may be modified if the Secretary of Defense de21 termines that modifications are appropriate to the particu22 lar situation to facilitate achievement of the policy set

23 forth in section 2501(c) of title 10, United States Code.

24 (c) RELATIONSHIP TO ACCOUNTING PRACTICE

25 CHANGE.—The use of the cost reimbursement rules de-
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1 scribed in subsection (b) under such an agreement with

2 a contractor and the implementation of such an agreement

3 does not constitute a change in cost accounting practices

4 of the contractor within the meaning of section

5 26(h)(1)(B) of the Office of Federal Procurement Policy

6 Act (41 U.S.C. 422(h)(1)(B)).

7 (d) CONTRACTS COVERED.—An agreement entered

8 into with a contractor under subsection (a) shall apply to

9 all Department of Defense contracts with the contractor

10 either existing on the date on which the agreement was

11 entered into or awarded during the term of the agreement.

12 Subtitle D—Streamlining of

13 Dispute Resolution

14 PART I—GENERAL PROVISIONS

15 SEC. 850. DEFINITIONS.

16 In this subtitle:

17 (1) The term ‘‘Board’’ means the United States

18 Board of Contract Appeals.

19 (2) The term ‘‘Board judge’’ means a member

20 of the United States Board of Contract Appeals.

21 (3) The term ‘‘Chairman’’ means the Chairman

22 of the United States Board of Contract Appeals.

23 (4) The term ‘‘executive agency’’ has the mean24 ing given by section 2(2) of the Contract Disputes

25 Act of 1978 (41 U.S.C. 601(2)).
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1 (5) The term ‘‘alternative means of dispute res2 olution’’ has the meaning given by section 571(3) of

3 title 5, United States Code.

4 (6) The term ‘‘protest’’ means a written objec5 tion by an interested party to any of the following:

6 (A) A solicitation or other request by an

7 executive agency for offers for a contract for

8 the procurement of property or services.

9 (B) The cancellation of such a solicitation

10 or other request.

11 (C) An award or proposed award of such

12 a contract.

13 (D) A termination or cancellation of an

14 award of such a contract, if the written objec15 tion contains an allegation that the termination

16 or cancellation is based in whole or in part on

17 improprieties concerning the award of the con18 tract.

19 (7) The term ‘‘interested party’’, with respect

20 to a contract or a solicitation or other request for of21 fers, means an actual or prospective bidder or

22 offeror whose direct economic interest would be af23 fected by the award of the contract or by failure to

24 award the contract.
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1 (8) The term ‘‘prevailing party’’, with respect

2 to a determination of the Board under section

3 864(b) that a decision of a contracting officer vio4 lates a statute or regulation, means a party that

5 demonstrated such violation.

6 PART II—ESTABLISHMENT OF THE UNITED

7 STATES BOARD OF CONTRACT APPEALS

8 SEC. 851. ESTABLISHMENT.

9 There is established in the executive branch of the

10 Government an independent establishment to be known as

11 the United States Board of Contract Appeals.

12 SEC. 852. MEMBERSHIP.

13 (a) APPOINTMENT.—(1) The Board shall consist of

14 Board judges appointed by the Chairman, without regard

15 to political affiliation and solely on the basis of the profes16 sional qualifications required to perform the duties and

17 responsibilities of a Board judge, from a register of appli18 cants maintained by the Board.

19 (2) The members of the Board shall be selected and

20 appointed to serve in the same manner as administrative

21 law judges appointed pursuant to section 3105 of title 5,

22 United States Code, with an additional requirement that

23 such members shall have had not fewer than five years’

24 experience in public contract law.
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1 (3) Notwithstanding paragraph (2) and subject to

2 subsection (b), the following persons shall serve as Board

3 judges:

4 (A) Any full-time member of an agency board

5 of contract appeals serving as such on the day before

6 the effective date of this subtitle.

7 (B) Any person serving on the day before the

8 date of the enactment of this Act in a position at

9 a level of assistant general counsel or higher with

10 authority delegated from the Comptroller General to

11 decide bid protests under subchapter V of chapter

12 35 of title 31, United States Code.

13 (b) REMOVAL.—Members of the Board shall be sub14 ject to removal in the same manner as administrative law

15 judges, as provided in section 7521 of title 5, United

16 States Code.

17 (c) COMPENSATION.—Compensation for the Chair18 man and all other members of the Board shall be deter19 mined under section 5273a of title 5, United States Code.

20 SEC. 853. CHAIRMAN.

21 (a) DESIGNATION.—(1) The Chairman shall be des22 ignated by the President to serve for a term of five years.

23 The President shall select the Chairman from among sit24 ting Board judges each of whom has had at least five years

25 of service—
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1 (A) as a member of an agency board of contract

2 appeals; or

3 (B) in a position at a level of assistant general

4 counsel or higher with authority delegated from the

5 Comptroller General to decide bid protests under

6 subchapter V of chapter 35 of title 31, United

7 States Code (as in effect on the day before the effec8 tive date of this subtitle).

9 (2) A Chairman may continue to serve after the expi10 ration of the Chairman’s term until a successor has taken

11 office. A Chairman may be reappointed any number of

12 times.

13 (b) RESPONSIBILITIES.—The Chairman shall be re14 sponsible on behalf of the Board for the executive and ad15 ministrative operation of the Board, including functions

16 of the Board with respect to the following:

17 (1) The selection, appointment, and fixing of

18 the compensation of such personnel, pursuant to

19 part III of title 5, United States Code, as the Chair20 man considers necessary or appropriate, including a

21 Clerk of the Board, a General Counsel, and clerical

22 and legal assistance for Board judges.

23 (2) The supervision of personnel employed by or

24 assigned to the Board, and the distribution of work

25 among such personnel.
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1 (3) The response to any request that may be

2 made by Congress or the Office of Management and

3 Budget.

4 (4) The allocation of funds among the various

5 functions of the Board.

6 (5) The entering into and performance of such

7 contracts, leases, cooperative agreements, or other

8 similar transactions with public agencies and private

9 organizations and persons, and the making of such

10 payments, as the Chairman considers necessary or

11 appropriate to carry out functions vested in the

12 Board.

13 (6) The operation of an Office of the Clerk of

14 the Board, including the receipt of all filings made

15 with the Board, the assignment of cases, and the

16 maintenance of all records of the Board.

17 (7) The acquisition, operation, and maintenance

18 of such automatic data processing resources as may

19 be needed by the Board.

20 (8) The prescription of such rules and regula21 tions as the Chairman considers necessary or appro22 priate for the administration and management of the

23 Board.

24 (c) VICE CHAIRMEN.—The Chairman may designate

25 up to four other Board judges as Vice Chairmen. The
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1 Chairman may divide the Board into two or more divi2 sions, and, if such division is made, shall assign a Vice

3 Chairman to head each division. The Vice Chairmen, in

4 the order designated by the Chairman, shall act in the

5 place and stead of the Chairman during the absence of

6 the Chairman.

7 SEC. 854. RULEMAKING AUTHORITY.

8 (a) IN GENERAL.—The Board may establish—

9 (1) such procedural rules and regulations as are

10 necessary to the exercise of its functions, including

11 internal rules for the assignment of cases; and

12 (2) statements of policy of general applicability

13 with respect to its functions.

14 (b) PROHIBITION ON REVIEW BY OTHER AGENCY OR

15 PERSON.—Rules and regulations established by the Board

16 (including forms which are a part thereof) shall not be

17 subject to review by any other agency or person (including

18 the Administrator of Information and Regulatory Affairs,

19 pursuant to chapter 35 of title 44, United States Code)

20 in advance of publication.

21 SEC. 855. LITIGATION AUTHORITY.

22 Except as provided in section 518 of title 28, United

23 States Code, relating to litigation before the Supreme

24 Court, attorneys designated by the Chairman may appear
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1 for, and represent the Board in, any civil action brought

2 in connection with any function carried out by the Board.

3 SEC. 856. SEAL OF BOARD.

4 The Chairman shall cause a seal of office to be made

5 for the Board of such design as the Board shall approve.

6 Judicial notice shall be taken of such seal.

7 SEC. 857. AUTHORIZATION OF APPROPRIATIONS.

8 There are authorized to be appropriated for fiscal

9 year 1997 and each succeeding fiscal year such sums as

10 may be necessary to carry out the provisions of this sub11 title and to enable the Board to perform its functions.

12 Funds appropriate pursuant to this section shall remain

13 available until expended.

14 PART III—FUNCTIONS OF UNITED STATES BOARD

15 OF CONTRACT APPEALS

16 SEC. 861. ALTERNATIVE DISPUTE RESOLUTION SERVICES.

17 (a) REQUIREMENT TO PROVIDE SERVICES UPON RE18 QUEST.—The Board shall provide alternative means of

19 dispute resolution for any disagreement regarding a con20 tract or prospective contract of an executive agency upon

21 the request of all parties to the disagreement.

22 (b) PERSONNEL QUALIFIED TO ACT.—Each Board

23 judge and each attorney employed by the Board shall be

24 considered to be qualified to act for the purpose of con-
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1 ducting alternative means of dispute resolution under this

2 section.

3 (c) SERVICES TO BE PROVIDED WITHOUT

4 CHARGE.—Any services provided by the Board or any

5 Board judge or employee pursuant to this section shall be

6 provided without charge.

7 (d) RECUSAL OF CERTAIN PERSONNEL UPON RE8 QUEST.—In the event that a matter which is presented

9 to the Board for alternative means of dispute resolution,

10 pursuant to this section, later becomes the subject of for11 mal proceedings before the Board, any Board judge or em12 ployee who was involved in the alternative means shall,

13 if requested by any party to the formal proceeding, take

14 no part in that proceeding.

15 SEC. 862. ALTERNATIVE DISPUTE RESOLUTION OF DIS16 PUTES AND PROTESTS SUBMITTED TO

17 BOARD.

18 With reasonable promptness after the submission to

19 the Board of a contract dispute under section 863 or a

20 bid protest under section 864, a Board judge to whom the

21 contract dispute or protest is assigned shall request the

22 parties to meet with a Board judge, or an attorney em23 ployed by the Board, for the purpose of attempting to re24 solve the dispute or protest through alternative means of

25 dispute resolution. Formal proceedings in the appeal shall
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1 then be suspended until such time as any party or a Board

2 judge to whom the dispute or protest is assigned deter3 mines that alternative means of dispute resolution are not

4 appropriate for resolution of the dispute or protest.

5 SEC. 863. CONTRACT DISPUTES.

6 The Board shall have jurisdiction as provided by sec7 tion 8(a) of the Contract Disputes Act of 1978 (41 U.S.C.

8 601–613).

9 SEC. 864. PROTESTS.

10 (a) REVIEW REQUIRED UPON REQUEST.—Upon re11 quest of an interested party in connection with any pro12 curement conducted by any executive agency, the Board

13 shall review, as provided in this section, any decision by

14 a contracting officer alleged to violate a statute or regula15 tion. The authority of the Board to conduct such review

16 shall include the authority to review regulations to deter17 mine their consistency with applicable statutes. A decision

18 or order of the Board pursuant to this section shall not

19 be subject to interlocutory appeal or review.

20 (b) STANDARD OF REVIEW.—In deciding a protest,

21 the Board may consider all evidence that is relevant to

22 the decision under protest. It shall accord a presumption

23 of correctness to all facts found and determinations made

24 by the contracting officer whose decision is being pro25 tested. The protester may rebut this presumption by show-
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1 ing, by a preponderance of the evidence, that a finding

2 or determination was incorrect. The Board may find that

3 a decision by a contracting officer violates a statute or

4 regulation for any of the reasons stated in section 706(2)

5 of title 5, United States Code.

6 (c) DETERMINATION OF WHETHER TO SUSPEND AU7 THORITY TO CONDUCT PROCUREMENT IN PROTEST

8 FILED BEFORE CONTRACT AWARD.—(1) When a protest

9 under this section is filed before the award of a contract

10 in a protested procurement, the Board, at the request of

11 an interested party and within 10 days after the submis12 sion of the protest, shall hold a hearing to determine

13 whether the Board should suspend the authority of the

14 executive agency involved (or its head) to conduct such

15 procurement until the Board can decide the protest.

16 (2) The Board shall suspend the authority of the ex17 ecutive agency (or its head) unless the agency concerned

18 establishes that—

19 (A) absent action by the Board, contract award

20 is likely to occur within 30 days after the hearing;

21 and

22 (B) urgent and compelling circumstances which

23 significantly affect interests of the United States will

24 not permit waiting for the decision of the Board.
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1 (3) A suspension under paragraph (2) shall not pre2 clude the executive agency concerned from continuing the

3 procurement process up to but not including award of the

4 contract unless the Board determines such action is not

5 in the best interests of the United States.

6 (d) DETERMINATION OF WHETHER TO SUSPEND AU7 THORITY TO CONDUCT PROCUREMENT IN PROTEST

8 FILED AFTER CONTRACT AWARD.—(1) If, with respect

9 to an award of a contract, the Board receives notice of

10 a protest under this section within the period described

11 in paragraph (2), the Board shall, at the request of an

12 interested party, hold a hearing to determine whether the

13 Board should suspend the authority of the executive agen14 cy involved (or its head) to conduct such procurement

15 until the Board can decide the protest.

16 (2) The period referred to in paragraph (1) is the

17 period beginning on the date on which the contract is

18 awarded and ending at the end of the later of—

19 (A) the tenth day after the date of contract

20 award; or

21 (B) the fifth day after the debriefing date of22 fered to an unsuccessful offeror for any debriefing

23 that is requested and, when requested, is required.

24 (3) The Board shall hold the requested hearing with25 in 5 days after the date of the filing of the protest or,
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1 in the case of a request for debriefing, within 5 days after

2 the later of the date of the filing of the protest or the

3 date of the debriefing.

4 (4) The Board shall suspend the procurement author5 ity of the executive agency involved (or its head) to acquire

6 any goods or services under the contract which are not

7 previously delivered and accepted unless such agency es8 tablishes that urgent and compelling circumstances which

9 significantly affect interests of the United States will not

10 permit waiting for the decision of the Board.

11 (e) PROCEDURES.—

12 (1) PROCEEDINGS AND DISCOVERY.—The

13 Board shall conduct proceedings and allow such dis14 covery as may be required for the expeditious, fair,

15 and reasonable resolution of the protest. The Board

16 shall limit discovery to material which is relevant to

17 the grounds of protest or to such affirmative de18 fenses as the executive agency involved, or any inter19 venor supporting the agency, may raise.

20 (2) PRIORITY.—The Board shall give priority to

21 protests filed under this section over contract dis22 putes and alternative dispute services. Except as

23 provided in paragraph (3), the Board shall issue its

24 final decision within 65 days after the date of the

25 filing of the protest, unless the Chairman determines
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1 that the specific and unique circumstances of the

2 protest require a longer period, in which case the

3 Board shall issue such decision within the longer pe4 riod determined by the Chairman. An amendment

5 that adds a new ground of protest should be re6 solved, to the maximum extent practicable, within

7 the time limits established for resolution of the ini8 tial protest.

9 (3) THRESHOLD.—Any protest in which the an10 ticipated value of the contract award that will result

11 from the protested procurement, as estimated by the

12 executive agency involved, is less than $1,000,000

13 shall be considered under simplified rules of proce14 dure. These rules shall provide that discovery in

15 such protests shall be in writing only. Such protests

16 shall be decided by a single Board judge, whose deci17 sion shall be final and conclusive and shall not be set

18 aside except in cases of fraud. The Board shall issue

19 its final decision in each such protest within 35 days

20 after the date of the filing of the protest.

21 (4) CALCULATION OF TIME FOR ADR.—In cal22 culating time for purposes of paragraph (2) or (3)

23 of this subsection, any days during which proceed24 ings are suspended for the purpose of attempting to

25 resolve the protest by alternative means of dispute
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1 resolution, up to a maximum of 20 days, shall not

2 be counted.

3 (5) DISMISSAL OF FRIVOLOUS PROTESTS.—The

4 Board may dismiss a protest that the Board deter5 mines is frivolous or which, on its face, does not

6 state a valid basis for protest.

7 (6) PAYMENT OF COSTS FOR FRIVOLOUS PRO8 TESTS.—(A) If the Board expressly finds that a pro9 test or a portion of a protest is frivolous or does not

10 state on its face a valid basis for protest, the Board

11 shall declare that the protester or other interested

12 party who joins the protest is liable to the United

13 States for payment of the costs described in sub14 paragraph (B) unless—

15 (i) special circumstances would make such

16 payment unjust; or

17 (ii) the protester obtains documents or

18 other information after the protest is filed with

19 the Board that establishes that the protest or

20 a portion of the protest is frivolous or does not

21 state on its face a valid basis for protest, and

22 the protester then promptly withdraws the pro23 test or portion of the protest.

24 (B) The costs referred to in subparagraph (A)

25 are all of the costs incurred by the United States of
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1 reviewing the protest, or of reviewing that portion of

2 the protest for which the finding is made, including

3 the fees and other expenses (as defined in section

4 2412(d)(2)(A) of title 28, United States Code) in5 curred by the United States in defending the pro6 test.

7 (f) DECISIONS AND CORRECTIVE ACTIONS ON PRO8 TESTS.—(1) In making a decision on protests filed under

9 this section, the Board shall accord due weight to the goals

10 of economic and efficient procurement, and shall take due

11 account of the rule of prejudicial error.

12 (2) If the Board determines that a decision of a con13 tracting officer violates a statute or regulation, the Board

14 may order the agency (or its head) to take such corrective

15 action as the Board considers appropriate. Corrective ac16 tion includes requiring that the Federal agency—

17 (A) refrain from exercising any of its options

18 under the contract;

19 (B) recompete the contract immediately;

20 (C) issue a new solicitation;

21 (D) terminate the contract;

22 (E) award a contract consistent with the re23 quirements of such statute and regulation;

24 (F) implement any combination of requirements

25 under subparagraphs (A), (B), (C), (D), and (E); or
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1 (G) implement such other actions as the Board

2 determines necessary.

3 (3) If the Board orders corrective action after the

4 contract award, the affected contract shall be presumed

5 valid as to all goods or services delivered and accepted

6 under the contract before the corrective action was or7 dered.

8 (4) Any agreement that provides for the dismissal of

9 a protest and involves a direct or indirect expenditure of

10 appropriated funds shall be submitted to the Board and

11 shall be made a part of the public record (subject to any

12 protective order considered appropriate by the Board) be13 fore dismissal of the protest.

14 (g) AUTHORITY TO DECLARE ENTITLEMENT TO

15 COSTS.—(1)(A) Whenever the Board determines that a

16 decision of a contracting officer violates a statute or regu17 lation, it may, in accordance with section 1304 of title 31,

18 United States Code, further declare an appropriate pre19 vailing party to be entitled to the costs of—

20 (i) filing and pursuing the protest, including

21 reasonable attorneys’ fees and consultant and expert

22 witness fees, and

23 (ii) bid and proposal preparation.

24 (B) No party (other than a small business concern

25 (within the meaning of section 3(a) of the Small Business
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1 Act)) may be declared entitled under this paragraph to

2 costs for—

3 (i) consultants and expert witness fees that ex4 ceed the highest rate of compensation for expert wit5 nesses paid by the Federal Government, or

6 (ii) attorneys’ fees that exceed $150 per hour

7 unless the Board, on a case by case basis, deter8 mines that an increase in the cost of living or a spe9 cial factor, such as the limited availability of quali10 fied attorneys for the proceedings involved, justifies

11 a higher fee.

12 (2) Payment of amounts due from an agency under

13 paragraph (1) or under the terms of a settlement agree14 ment under subsection (e)(4) shall be made from the ap15 propriation made by section 1304 of title 31, United

16 States Code, for the payment of judgments. The executive

17 agency concerned shall reimburse that appropriation ac18 count out of funds available for the procurement.

19 (h) APPEALS.—Except as provided in subsection

20 (e)(3), a final decision of the Board may be appealed as

21 set forth in section 8(d)(1) of the Contract Disputes Act

22 of 1978 by the head of the executive agency concerned

23 and by any interested party, including interested parties

24 who intervene in any protest filed under this section.
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1 (i) ADDITIONAL RELIEF.—Nothing contained in this

2 section shall affect the power of the Board to order any

3 additional relief which it is authorized to provide under

4 any statute or regulation.

5 (j) NONEXCLUSIVITY OF REMEDIES.—Nothing con6 tained in this section shall affect the right of any inter7 ested party to file a protest with the contracting agency

8 or to file an action in the United States Court of Federal

9 Claims or in a United States district court.

10 SEC. 865. APPLICABILITY TO CONTRACTS FOR COMMER11 CIAL ITEMS.

12 Notwithstanding section 34 of the Office of Federal

13 Procurement Policy Act (41 U.S.C. 430), the authority

14 conferred on the Board by this subtitle is applicable to

15 contracts for the procurement of commercial items.

16 PART IV—REPEAL OF OTHER STATUTES

17 AUTHORIZING ADMINISTRATIVE PROTESTS

18 SEC. 871. REPEALS.

19 (a) GSBCA PROVISIONS.—Subsection (f) of the

20 Brooks Automatic Data Processing Act (section 111 of the

21 Federal Property and Administrative Services Act of

22 1949; 40 U.S.C. 759) is repealed.

23 (b) GAO PROVISIONS.—Subchapter V of chapter 35

24 of title 31, United States Code (31 U.S.C. 3551-3556)

25 is repealed.
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1 PART V—TRANSFERS AND TRANSITIONAL,

2 SAVINGS, AND CONFORMING PROVISIONS

3 SEC. 881. TRANSFER AND ALLOCATION OF APPROPRIA4 TIONS AND PERSONNEL.

5 (a) TRANSFER.—The personnel employed in connec6 tion with, and the assets, liabilities, contracts, property,

7 records, and unexpended balance of appropriations, au8 thorizations, allocations, and other funds employed, held,

9 used, arising from, available to, or to be made available

10 in connection with the functions vested by law in the

11 Comptroller General pursuant to subchapter V of chapter

12 35 of title 31, United States Code, and in the boards of

13 contract appeals established pursuant to section 8 of the

14 Contract Disputes Act of 1978 (41 U.S.C. 607) (as in ef15 fect on the day before the effective date of this Act), shall

16 be transferred to the Board for appropriate allocation by

17 the Chairman.

18 (b) EFFECT ON PERSONNEL.—Personnel transferred

19 pursuant to this subtitle shall not be separated or reduced

20 in compensation for one year after such transfer, except

21 for cause.

22 (c) REGULATIONS.—(1) The Board shall prescribe

23 regulations for the release of competing employees in a

24 reduction in force that gives due effect to—

25 (A) efficiency or performance ratings;

26 (B) military preference; and
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1 (C) tenure of employment.

2 (2) In prescribing the regulations, the Board shall

3 provide for military preference in the same manner as set

4 forth in subchapter I of chapter 35 of title 5, United

5 States Code.

6 SEC. 882. TERMINATIONS AND SAVINGS PROVISIONS.

7 (a) TERMINATION OF BOARDS OF CONTRACT AP8 PEALS.—On the effective date of this subtitle, the boards

9 of contract appeals established pursuant to section 8 of

10 the Contract Disputes Act of 1978 (41 U.S.C. 607) (as

11 in effect on the day before the effective date of this Act)

12 shall terminate.

13 (b) SAVINGS PROVISION FOR CONTRACT DISPUTE

14 MATTERS PENDING BEFORE BOARDS.—The provisions of

15 this subtitle shall not affect any proceedings (other than

16 bid protests pending before the board of contract appeals

17 of the General Services Administration) pending on the

18 effective date of this Act before any board of contract ap19 peals described in subsection (a). Such proceedings shall

20 be continued by the Board, and orders which were issued

21 in any such proceeding by any board of contract appeals

22 shall continue in effect until modified, terminated, super23 seded, or revoked by the Board, by a court of competent

24 jurisdiction, or by operation of law.
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1 (c) BID PROTEST TRANSITION PROVISIONS.—(1) No

2 protest may be submitted to the Comptroller General pur3 suant to section 3553(a) of title 31, United States Code,

4 or to the board of contract appeals for the General Serv5 ices Administration pursuant to the Brooks Automatic

6 Data Processing Act (40 U.S.C. 759) on or after the effec7 tive date of this Act.

8 (2) The provisions repealed by section 871 shall con9 tinue to apply to proceedings pending on the effective date

10 of this subtitle before the board of contract appeals of the

11 General Services Administration and the Comptroller Gen12 eral pursuant to those provisions, until the board or the

13 Comptroller General determines such proceedings have

14 been completed.

15 SEC. 883. CONTRACT DISPUTE AUTHORITY OF BOARD.

16 (a) Section 2 of the Contract Disputes Act of 1978

17 (41 U.S.C. 601) is amended by striking out paragraph (6)

18 and inserting in lieu thereof the following:

19 ‘‘(6) the term ‘Board’ means the United States

20 Board of Contract Appeals; and’’.

21 (b) Section 6(c) of the Contract Disputes Act of 1978

22 (41 U.S.C. 605(c)) is amended—

23 (1) in paragraph (4)—

24 (A) by striking out ‘‘the agency board of

25 contract appeals’’ and inserting in lieu thereof
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1 ‘‘the United States Board of Contract Ap2 peals’’; and

3 (B) by striking out ‘‘the board’’ and insert4 ing in lieu thereof ‘‘the Board’’; and

5 (2) in paragraph (6)—

6 (A) by striking out ‘‘an agency board of

7 contract appeals’’ and inserting in lieu thereof

8 ‘‘the United States Board of Contract Ap9 peals’’; and

10 (B) by striking out ‘‘agency board’’ and in11 serting in lieu thereof ‘‘the Board’’.

12 (c) Section 7 of the Contract Disputes Act of 1978

13 (41 U.S.C. 606) is amended by striking out ‘‘an agency

14 board of contract appeals’’ and inserting in lieu thereof

15 ‘‘the United States Board of Contract Appeals’’.

16 (d) Section 8 of the Contract Disputes Act of 1978

17 (41 U.S.C. 607) is amended—

18 (1) by amending the heading to read as follows:

19 ‘‘UNITED STATES BOARD OF CONTRACT APPEALS’’;

20 (2) by striking out subsections (a), (b), and (c);

21 (3) in subsection (d)—

22 (A) by striking out the first sentence and

23 inserting in lieu thereof the following:

24 ‘‘The United States Board of Contract Appeals shall have

25 jurisdiction to decide any appeal from a decision of a con-
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1 tracting officer of any executive agency relative to a con2 tract made by that agency.’’; and

3 (B) in the second sentence, by striking out

4 ‘‘the agency board’’ and inserting in lieu thereof

5 ‘‘the Board’’;

6 (4) in subsection (e), by striking out ‘‘An agen7 cy board’’ and inserting in lieu thereof ‘‘The United

8 States Board of Contract Appeals’’;

9 (5) in subsection (f), by striking out ‘‘each

10 agency board’’ and inserting in lieu thereof ‘‘the

11 United States Board of Contract Appeals’’;

12 (6) in subsection (g)—

13 (A) in the first sentence of paragraph (1),

14 by striking out ‘‘an agency board of contract

15 appeals’’ and inserting in lieu thereof ‘‘the

16 United States Board of Contract Appeals’’;

17 (B) by striking out paragraph (2); and

18 (C) by redesignating paragraph (3) as

19 paragraph (2);

20 (7) by striking out subsections (h) and (i); and

21 (8) by redesignating subsections (d), (e), (f),

22 and (g) (as amended) as subsections (a), (b), (c),

23 and (d), respectively.

24 (e) Section 9 of the Contract Disputes Act of 1978

25 (41 U.S.C. 608) is amended—
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1 (1) in subsection (a), by striking out ‘‘each

2 agency board’’ and inserting in lieu thereof ‘‘the

3 United States Board of Contract Appeals’’; and

4 (2) in subsection (b), by striking out ‘‘the agen5 cy board’’ and inserting in lieu thereof ‘‘the Board’’.

6 (f) Section 10 of the Contract Disputes Act of 1978

7 (41 U.S.C. 609) is amended—

8 (1) in subsection (a)—

9 (A) in the first sentence of paragraph

10 (1)—

11 (i) by striking out ‘‘Except as pro12 vided in paragraph (2), and in’’ and insert13 ing in lieu thereof ‘‘In’’; and

14 (ii) by striking out ‘‘an agency board’’

15 and inserting in lieu thereof ‘‘the United

16 States Board of Contract Appeals’’;

17 (B) by striking out paragraph (2); and

18 (C) by redesignating paragraph (3) as

19 paragraph (2), and in that paragraph, by strik20 ing out ‘‘or (2)’’;

21 (2) in subsection (b), by striking out ‘‘any

22 agency board’’ and ‘‘the agency board’’ and inserting

23 in lieu of each ‘‘the Board’’;
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1 (3) in subsection (c), by striking out ‘‘an agen2 cy board’’ and ‘‘the agency board’’ and inserting in

3 lieu of each ‘‘the Board’’; and

4 (4) in subsection (d), by striking out ‘‘one or

5 more agency boards’’ and ‘‘or among the agency

6 boards involved’’ and inserting in lieu of each ‘‘the

7 Board’’.

8 (g) Section 11 of the Contract Disputes Act of 1978

9 (41 U.S.C. 610) is amended—

10 (1) in the first sentence, by striking out ‘‘an

11 agency board of contract appeals’’ and inserting in

12 lieu thereof ‘‘the United States Board of Contract

13 Appeals’’; and

14 (2) in the second sentence, by striking out ‘‘the

15 agency board through the Attorney General; or upon

16 application by the board of contract appeals of the

17 Tennessee Valley Authority’’ and inserting in lieu

18 thereof ‘‘the Board’’.

19 (h) Section 13 of the Contract Disputes Act of 1978

20 (41 U.S.C. 612) is amended—

21 (1) in subsection (b), by striking out ‘‘an agen22 cy board of contract appeals’’ and inserting in lieu

23 thereof ‘‘the United States Board of Contract Ap24 peals’’; and
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1 (2) in subsection (d)(2), by striking out ‘‘by the

2 board of contract appeals for’’ and inserting in lieu

3 thereof ‘‘by the Board from’’.

4 SEC. 884. REFERENCES TO AGENCY BOARDS OF CONTRACT

5 APPEALS.

6 Any reference to an agency board of contract appeals

7 in any provision of law or in any rule, regulation, or other

8 paper of the United States shall be treated as referring

9 to the United States Board of Contract Appeals.

10 SEC. 885. CONFORMING AMENDMENTS.

11 (a) TITLE 5.—Section 5372a of title 5, United States

12 Code, is amended—

13 (1) in subsection (a)(1), by striking out ‘‘an

14 agency board of contract appeals appointed under

15 section 8 of the Contract Disputes Act of 1978’’ and

16 inserting in lieu thereof ‘‘the United States Board of

17 Contract Appeals’’;

18 (2) in subsection (a)(2), by striking out ‘‘an

19 agency board of contract appeals established pursu20 ant to section 8 of the Contract Disputes Act of

21 1978’’ and inserting in lieu thereof ‘‘the United

22 States Board of Contract Appeals’’; and

23 (3) in subsection (b), by striking out ‘‘an ap24 peals board’’ each place it appears and inserting in

25 lieu thereof ‘‘the appeals board’’.
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1 (b) TITLE 10.—(1) Section 2305(e) of title 10, Unit2 ed States Code, is amended—

3 (A) in paragraph (1), by striking out ‘‘sub4 chapter V of chapter 35 of title 31’’ and inserting

5 in lieu thereof ‘‘title IV of the Federal Acquisition

6 Reform Act of 1995’’; and

7 (B) by striking out paragraph (3).

8 (2) Section 2305(f) of such title is amended—

9 (A) in paragraph (1), by striking out ‘‘in sub10 paragraphs (A) through (F) of subsection (b)(1) of

11 section 3554 of title 31’’ and inserting in lieu there12 of ‘‘section 424(f)(2) of the Federal Acquisition Re13 form Act of 1995’’; and

14 (B) in paragraph (2), by striking out ‘‘para15 graph (1) of section 3554(c) of title 31’’ and insert16 ing in lieu thereof ‘‘section 424(g)(1)(A) of the Fed17 eral Acquisition Reform Act of 1995’’.

18 (c) FEDERAL PROPERTY AND ADMINISTRATIVE

19 SERVICES ACT OF 1949.—(1) Section 303B(h) of the

20 Federal Property and Administrative Services Act of 1949

21 (41 U.S.C. 253b(h)) is amended—

22 (A) in paragraph (1), by striking out ‘‘sub23 chapter V of chapter 35 of title 31’’ and inserting

24 in lieu thereof ‘‘title IV of the Federal Acquisition

25 Reform Act of 1995’’; and
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1 (B) by striking out paragraph (3).

2 (2) Section 303B(i) of such Act (41 U.S.C. 253b(i))

3 is amended—

4 (A) in paragraph (1), by striking out ‘‘in sub5 paragraphs (A) through (F) of subsection (b)(1) of

6 section 3554 of title 31’’ and inserting in lieu there7 of ‘‘section 424(f)(2) of the Federal Acquisition Re8 form Act of 1995’’; and

9 (B) in paragraph (2), by striking out ‘‘para10 graph (1) of section 3554(c) of title 31’’ and insert11 ing in lieu thereof ‘‘section 424(g)(1)(A) of the Fed12 eral Acquisition Reform Act of 1995’’.

13 PART VI—EFFECTIVE DATE; INTERIM

14 APPOINTMENT AND RULES

15 SEC. 891. EFFECTIVE DATE.

16 This subtitle shall take effect on October 1, 1996.

17 SEC. 892. INTERIM APPOINTMENT.

18 The Board judge serving as chairman of the board

19 of contract appeals of the General Services Administration

20 on the date of the enactment of this Act shall serve as

21 Chairman during the two-year period beginning on the ef22 fective date of this subtitle, unless such individual resigns

23 such position or the position otherwise becomes vacant be24 fore the expiration of such period. The authority vested

25 in the President by section 853 shall take effect upon the
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1 expiration of such two-year period or on the date such po2 sition is vacated, whichever occurs earlier.

3 SEC. 893. INTERIM RULES.

4 (a) RULES OF PROCEDURE.—Until such date as the

5 Board promulgates rules of procedure, the rules of proce6 dure of the board of contract appeals of the General Serv7 ices Administration, as in effect on the effective date of

8 this Act, shall be the rules of procedure of the Board.

9 (b) RULES REGARDING BOARD JUDGES.—Until such

10 date as the Board promulgates rules governing the estab11 lishment and maintenance of a register of eligible appli12 cants and the selection of Board judges, the rules of the

13 Armed Services Board of Contract Appeals governing the

14 establishment and maintenance of a register of eligible ap15 plicants and the selection of board members shall be the

16 rules of the Board governing the establishment and main17 tenance of a register of eligible applicants and the selec18 tion of Board judges, except that any provisions of the

19 rules of the Armed Services Board of Contract Appeals

20 that authorize any individual other than the chairman of

21 such board to select a Board judge shall have no effect.
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1 Subtitle E—Effective Dates and

2 Implementation

3 SEC. 895. EFFECTIVE DATE AND APPLICABILITY.

4 (a) EFFECTIVE DATE.—Except as otherwise provided

5 in this title, this title and the amendments made by this

6 title shall take effect on the date of the enactment of this

7 Act.

8 (b) APPLICABILITY OF AMENDMENTS.—(1) An

9 amendment made by this title shall apply, in the manner

10 prescribed in the final regulations promulgated pursuant

11 to section 896 to implement such amendment, with respect

12 to any solicitation that is issued, any unsolicited proposal

13 that is received, and any contract entered into pursuant

14 to such a solicitation or proposal, on or after the date de15 scribed in paragraph (3).

16 (2) An amendment made by this title shall also apply,

17 to the extent and in the manner prescribed in the final

18 regulations promulgated pursuant to section 896 to imple19 ment such amendment, with respect to any matter related

20 to—

21 (A) a contract that is in effect on the date de22 scribed in paragraph (3);

23 (B) an offer under consideration on the date

24 described in paragraph (3); or
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1 (C) any other proceeding or action that is ongo2 ing on the date described in paragraph (3).

3 (3) The date referred to in paragraphs (1) and (2)

4 is the date specified in such final regulations. The date

5 so specified shall be October 1, 1996, or any earlier date

6 that is not within 30 days after the date on which such

7 final regulations are published.

8 SEC. 896. IMPLEMENTING REGULATIONS.

9 (a) PROPOSED REVISIONS.—Proposed revisions to

10 the Federal Acquisition Regulation and such other pro11 posed regulations (or revisions to existing regulations) as

12 may be necessary to implement this title shall be published

13 in the Federal Register not later than 210 days after the

14 date of the enactment of this Act.

15 (b) PUBLIC COMMENT.—The proposed regulations

16 described in subsection (a) shall be made available for

17 public comment for a period of not less than 60 days.

18 (c) FINAL REGULATIONS.—Final regulations shall be

19 published in the Federal Register not later than 330 days

20 after the date of enactment of this Act.

21 (d) MODIFICATIONS.—Final regulations promulgated

22 pursuant to this section to implement an amendment

23 made by this title may provide for modification of an exist24 ing contract without consideration upon the request of the

25 contractor.
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1 (e) SAVINGS PROVISIONS.—(1) Nothing in this title

2 shall be construed to affect the validity of any action taken

3 or any contract entered into before the date specified in

4 the regulations pursuant to section 895(b)(3) except to the

5 extent and in the manner prescribed in such regulations.

6 (2) Except as specifically provided in this title, noth7 ing in this title shall be construed to require the renegoti8 ation or modification of contracts in existence on the date

9 of the enactment of this Act.

10 (3) Except as otherwise provided in this title, a law

11 amended by this title shall continue to be applied accord12 ing to the provisions thereof as such law was in effect on

13 the day before the date of the enactment of this Act

14 until—

15 (A) the date specified in final regulations imple16 menting the amendment of that law (as promulgated

17 pursuant to this section); or

18 (B) if no such date is specified in regulations,

19 October 1, 1996.
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1 TITLE IX—DEPARTMENT OF DE2 FENSE ORGANIZATION AND

3 MANAGEMENT

4 SEC. 901. REORGANIZATION OF OFFICE OF THE SEC5 RETARY OF DEFENSE.

6 (a) REORGANIZATION.—The Secretary of Defense

7 shall carry out in accordance with this section a reorga8 nization of the Office of the Secretary of Defense. The

9 reorganization shall include a substantial streamlining and

10 reduction in size of that office, as provided in this section.

11 (b) PLAN FOR REORGANIZATION.—The Secretary

12 shall submit to Congress a report setting forth a com13 prehensive plan by which the Secretary will carry out the

14 reorganization of the Office of the Department of Defense

15 required by this section. The Secretary shall include in the

16 report identification of all provisions of law (or other con17 gressional directives) that preclude or inhibit any proposed

18 reorganization or streamlining of the Office of the Sec19 retary of Defense set forth in the plan. The report shall

20 be submitted when the budget of the President for fiscal

21 year 1997 is submitted to Congress.

22 (c) CONTENT OF PLAN.—The plan required by sub23 section (b) shall enable the Secretary to accomplish the

24 following:
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1 (1) Reduce the number of military and civilian

2 personnel assigned to, or employed in, the Office of

3 the Secretary of Defense by 25 percent over a period

4 of four years, as required by subsection (e).

5 (2) Increase organizational efficiency and civil6 ian control.

7 (3) Eliminate (or substantially reduce) duplica8 tion of functions between the Office of the Secretary

9 of Defense and the military departments.

10 (4) Eliminate (or substantially reduce) duplica11 tion of functions between the Office of the Secretary

12 of Defense and the Joint Chiefs of Staff.

13 (d) DEVELOPMENT OF PLAN.—In developing the

14 plan required by subsection (b), the Secretary shall—

15 (1) reassess the appropriate function and mis16 sion of the Office of the Secretary of Defense;

17 (2) reassess whether the current organization of

18 the Office of the Secretary of Defense provides the

19 most efficient and effective organization to support

20 the Secretary in carrying out the Secretary’s respon21 sibilities;

22 (3) examine alternative organizational struc23 tures for that office and alternative allocations of

24 functional responsibilities within that office, includ25 ing—
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1 (A) a reduction in the number of Under

2 Secretaries of Defense;

3 (B) a reduction in the number of Deputy

4 Assistant Secretaries of Defense and Deputy

5 Under Secretaries of Defense; and

6 (C) decentralizing functions of the Office

7 of the Secretary of Defense; and

8 (4) reassess the size, number, and functional al9 location of the Defense Agencies and other Depart10 ment of Defense support organizations.

11 (e) PERSONNEL REDUCTION.—(1) The number of

12 military and civilian personnel of the Department of De13 fense who as of October 1, 1998, are assigned to, or em14 ployed in, functions in the Office of the Secretary of De15 fense (including Direct Support Activities of that Office

16 and the Washington Headquarters Services of the Depart17 ment of Defense) may not exceed 75 percent of the num18 ber of such personnel as of October 1, 1994.

19 (2) In carrying out reductions under paragraph (1),

20 the Secretary may not reassign functions solely in order

21 to evade the requirement contained in that paragraph.

22 (f) REDUCTION IN NUMBER AND SPECIFICATION OF

23 ASSISTANT SECRETARY OF DEFENSE POSITIONS.—(1)

24 Section 138 of title 10, United States Code, is amended—
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1 (A) in subsection (a), by striking out ‘‘eleven’’

2 and inserting in lieu thereof ‘‘nine’’; and

3 (B) by striking out subsection (b) and inserting

4 in lieu thereof the following:

5 ‘‘(b) The Assistant Secretaries shall perform such du6 ties and exercise such powers as the Secretary of Defense

7 may prescribe.’’.

8 (2) Section 5315 of title 5, United States Code, is

9 amended by striking out ‘‘(11)’’ after ‘‘Assistant Secretar10 ies of Defense’’ and inserting in lieu thereof ‘‘(9)’’.

11 (g) REPEAL OF STATUTORY ESTABLISHMENT OF

12 VARIOUS OSD POSITIONS.—(1)(A) The following sections

13 of chapter 4 of title 10, United States Code, are repealed:

14 sections 133a, 134a, 137, 139, and 142.

15 (B) The table of sections at the beginning of such

16 chapter is amended by striking out the items relating to

17 the sections specified in paragraph (1).

18 (2) Section 1056 is amended by striking out sub19 section (d).

20 (h) SENIOR STAFF FLOOR FOR SPECIFIED ASSIST21 ANT SECRETARY OF DEFENSE.—Section 355 of the Na22 tional Defense Authorization Act for Fiscal Year 1991

23 (Public Law 101–510; 104 Stat. 1540) is repealed.
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1 (i) CONFORMING AMENDMENTS TO TITLE 10, UNIT2 ED STATES CODE.—Title 10, United States Code, is

3 amended as follows:

4 (1) Section 131(b) is amended—

5 (A) by striking out paragraphs (6) and

6 (8); and

7 (B) by redesignating paragraphs (7), (9),

8 (10), and (11), as paragraphs (6), (7), (8), and

9 (9), respectively.

10 (2) Section 138(d) is amended by striking out

11 ‘‘the Under Secretaries of Defense, and the Director

12 of Defense Research and Engineering’’ and inserting

13 in lieu thereof ‘‘and the Under Secretaries of De14 fense’’.

15 (3) Section 176(a)(3) is amended—

16 (A) by striking out ‘‘Assistant Secretary of

17 Defense for Health Affairs’’ and inserting in

18 lieu thereof ‘‘official in the Department of De19 fense with principal responsibility for health af20 fairs’’; and

21 (B) by striking out ‘‘Chief Medical Direc22 tor of the Department of Veterans Affairs’’ and

23 inserting in lieu thereof ‘‘Under Secretary for

24 Health of the Department of Veterans Affairs’’.
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1 (4) Section 1216(d) is amended by striking out

2 ‘‘Assistant Secretary of Defense for Health Affairs’’

3 and inserting in lieu thereof ‘‘official in the Depart4 ment of Defense with principal responsibility for

5 health affairs’’.

6 (5) Section 1587(d) is amended by striking out

7 ‘‘Assistant Secretary of Defense for Manpower and

8 Logistics’’ and inserting in lieu thereof ‘‘official in

9 the Department of Defense with principal respon10 sibility for personnel and readiness’’.

11 (6) The text of section 10201 is amended to

12 read as follows:

13 ‘‘The official in the Department of Defense with re14 sponsibility for overall supervision of reserve component

15 affairs of the Department of Defense is the official des16 ignated by the Secretary of Defense to have that respon17 sibility.’’.

18 (j) CONFORMING AMENDMENTS RELATING TO OPER19 ATIONAL TEST AND EVALUATION AUTHORITY.—Section

20 2399 of such title is amended—

21 (1) in subsection (a)—

22 (A) in paragraph (2)—

23 (i) by inserting ‘‘a conventional weap24 ons system that’’ after ‘‘means’’ in the

25 matter preceding subparagraph (A); and
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1 (ii) in subparagraph (A), by striking

2 out ‘‘a conventional weapons system that’’;

3 and

4 (B) by adding at the end the following new

5 paragraph:

6 ‘‘(3) The Secretary of Defense shall designate an offi7 cial of the Department of Defense to perform the duties

8 of the position referred to in this section as the ‘designated

9 OT&E official’.’’;

10 (2) in subsection (b)—

11 (A) by striking out ‘‘Director of Oper12 ational Test and Evaluation of the Department

13 of Defense’’ in paragraph (1) and inserting in

14 lieu thereof ‘‘designated OT&E official’’; and

15 (B) by striking out ‘‘Director’’ each place

16 it appears in paragraphs (2) and (3) and insert17 ing in lieu thereof ‘‘designated OT&E official’’;

18 (3) in subsection (c), by striking out ‘‘Director

19 of Operational Test and Evaluation of the Depart20 ment of Defense’’ and inserting in lieu thereof ‘‘des21 ignated OT&E official’’;

22 (4) in subsection (e), by striking out ‘‘Director’’

23 each place it appears and inserting in lieu thereof

24 ‘‘designated OT&E official’’;

25 (5) by striking out subsection (g); and
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1 (6) by redesignating subsection (h) as sub2 section (g).

3 (k) OTHER CONFORMING AMENDMENT.—Section

4 1211(b)(2) of the National Defense Authorization Act for

5 Fiscal Year 1988 and 1989 (P.L. 100–180; 101 Stat

6 1155; 10 U.S.C. 167 note) is amended by striking out

7 ‘‘the Assistant Secretary of Defense for Special Oper8 ations and Low Intensity Conflict’’ and inserting in lieu

9 thereof ‘‘the official designated by the Secretary of De10 fense to have principal responsibility for matters relating

11 to special operations and low intensity conflict’’.

12 SEC. 902. RESTRUCTURING OF DEPARTMENT OF DEFENSE

13 ACQUISITION ORGANIZATION AND

14 WORKFORCE.

15 (a) RESTRUCTURING REPORT.—Not later than

16 March 1, 1996, the Secretary of Defense shall submit to

17 Congress a report on the acquisition organization and

18 workforce of the Department of Defense. The report shall

19 include—

20 (1) the plan described in subsection (b); and

21 (2) the assessment of streamlining and restruc22 turing options described in subsection (c).

23 (b) PLAN FOR RESTRUCTURING.—(1) The Secretary

24 shall include in the report under subsection (a) a plan on

25 how to restructure the current acquisition organization of
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1 the Department of Defense in a manner that would enable

2 the Secretary to accomplish the following:

3 (A) Reduce the number of military and civilian

4 personnel assigned to, or employed in, acquisition or5 ganizations of the Department of Defense by 25 per6 cent over a period of four years, as required by sub7 section (d).

8 (B) Eliminate duplication of functions among

9 existing acquisition organizations of the Department

10 of Defense.

11 (C) Maximize opportunity for consolidation

12 among acquisition organizations of the Department

13 of Defense to reduce management overhead.

14 (2) In the report, the Secretary shall also identify any

15 statutory requirement or congressional directive that in16 hibits any proposed restructuring plan or reduction in the

17 size of the defense acquisition organization.

18 (3) In designing the plan under paragraph (1), the

19 Secretary shall give full consideration to the process effi20 ciencies expected to be achieved through the implementa21 tion of the Federal Acquisition Streamlining Act of 1994

22 (Public Law 103–355) and other ongoing initiatives to in23 crease the use of commercial practices and reduce contract

24 overhead in the defense procurement system.
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1 (c) ASSESSMENT OF SPECIFIED RESTRUCTURING

2 OPTIONS.—The Secretary shall include in the report

3 under subsection (a) a detailed assessment of each of the

4 following options for streamlining and restructuring the

5 existing defense acquisition organization, together with a

6 specific recommendation as to whether each such option

7 should be implemented:

8 (1) Consolidation of certain functions of the

9 Defense Contract Audit Agency and the Defense

10 Contract Management Command.

11 (2) Contracting for performance of a significant

12 portion of the workload of the Defense Contract

13 Audit Agency and other Defense Agencies that per14 form acquisition functions.

15 (3) Consolidation or selected elimination of De16 partment of Defense acquisition organizations.

17 (4) Any other defense acquisition infrastructure

18 streamlining or restructuring option the Secretary

19 may determine.

20 (d) REDUCTION OF ACQUISITION WORKFORCE.—(1)

21 Effective as of October 1, 1998, the total number of de22 fense acquisition personnel may not exceed 75 percent of

23 the total number of defense acquisition personnel as of Oc24 tober 1, 1994.
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1 (2) In carrying out paragraph (1), the Secretary of

2 Defense shall exempt personnel who possess technical

3 competence in trade-skill maintenance and repair positions

4 involved in performing depot maintenance functions for

5 the Department of Defense.

6 (3) In carrying out paragraph (1), the Secretary of

7 Defense shall accomplish reductions in defense acquisition

8 personnel positions during fiscal year 1996 so that the

9 total number of such personnel as of October 1, 1996, is

10 less than the total number of such personnel as of October

11 1, 1995, by at least 30,000.

12 (4) For purposes of this section, the term ‘‘defense

13 acquisition personnel’’ means military and civilian person14 nel of the Department of Defense assigned to, or employed

15 in, acquisition organizations of the Department of De16 fense.

17 (e) ACQUISITION ORGANIZATION DEFINED.—For

18 purposes of this section, acquisition organizations of the

19 Department of Defense are those organizations specified

20 in Department of Defense Instruction Numbered 5000.58,

21 dated January 14, 1992.
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1 SEC. 903. PLAN FOR INCORPORATION OF DEPARTMENT OF

2 ENERGY NATIONAL SECURITY FUNCTIONS IN

3 DEPARTMENT OF DEFENSE.

4 (a) REPORT REQUIRED.—The Secretary of Defense

5 shall submit to Congress a report setting forth the Sec6 retary’s plan for the incorporation into the Department

7 of Defense of the national security programs of the De8 partment of Energy. The plan submitted shall be one

9 which could be implemented if the Department of Energy

10 is abolished and the national security programs of that

11 department are transferred to the Department of Defense

12 and consolidated with programs of the Department of De13 fense.

14 (b) MATTERS TO BE INCLUDED.—The plan submit15 ted in the report under subsection (a) shall include the

16 following:

17 (1) A detailed plan for the integration into the

18 Department of Defense of the offices and labora19 tories of the Department of Energy which could be

20 anticipated to be transferred to the Department of

21 Defense as part of such a transfer of functions.

22 (2) An assessment of the personnel end23 strength reductions estimated to be achieved as a re24 sult of such a transfer of functions.

25 (3) An assessment of costs, or savings, associ26 ated with the various transfer of function options.
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1 (4) An identification of all applicable provisions

2 of law that may inhibit or preclude such a transfer

3 of functions.

4 (c) PRESERVATION OF INTEGRITY OF DOE NA5 TIONAL SECURITY PROGRAMS.—In developing the plan

6 under subsection (a), the Secretary shall make every effort

7 to ensure that the mission and functioning of the national

8 security programs of the Department of Energy are not

9 unduly affected adversely during the transfer of those

10 functions to the Department of Defense and the consolida11 tion of those functions into activities of the Department.

12 (d) SUBMISSION OF REPORT.—The report required

13 under subsection (a) shall be submitted not later than

14 February 1, 1996.

15 SEC. 904. CHANGE IN TITLES OF CERTAIN MARINE CORPS

16 GENERAL OFFICER BILLETS RESULTING

17 FROM REORGANIZATION OF THE HEAD18 QUARTERS, MARINE CORPS.

19 (a) HEADQUARTERS, MARINE CORPS, FUNCTION;

20 COMPOSITION.—Subsection (b) of section 5041 of title 10,

21 United States Code, is amended by striking out para22 graphs (2) through (5) and inserting in lieu thereof the

23 following:

24 ‘‘(2) The Vice Commandant of the Marine

25 Corps.
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1 ‘‘(3) The Director of the Marine Corps Staff.

2 ‘‘(4) The Deputy Commandants of the Marine

3 Corps.

4 ‘‘(5) The Assistant Commandants of the Marine

5 Corps.’’.

6 (b) VICE COMMANDANT.—(1) Section 5044 of such

7 title is amended by striking out ‘‘Assistant Commandant’’

8 each place it appears and inserting in lieu thereof ‘‘Vice

9 Commandant’’.

10 (2) The heading of such section is amended to read

11 as follows:

12 ‘‘§ 5044. Vice Commandant of the Marine Corps’’.

13 (c) DIRECTOR OF THE MARINE CORPS STAFF; DEP14 UTY AND ASSISTANT COMMANDANTS.—Section 5045 of

15 such title is amended to read as follows:

16 ‘‘§ 5045. Director of the Marine Corps Staff; Deputy

17 and Assistant Commandants

18 ‘‘(a) There are in the Headquarters, Marine Corps,

19 the following:

20 ‘‘(1) A Director of the Marine Corps Staff.

21 ‘‘(2) Not more than five Deputy Commandants

22 of the Marine Corps.

23 ‘‘(3) Not more than three Assistant Com24 mandants of the Marine Corps.
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1 ‘‘(b) The officers specified in subsection (a) shall be

2 detailed by the Secretary of the Navy from officers on the

3 active-duty list of the Marine Corps.’’.

4 (d) CLERICAL AMENDMENT.—The items relating to

5 sections 5044 and 5045 in the table of sections at the be6 ginning of chapter 506 of such title are amended to read

7 as follows:

‘‘5044. Vice Commandant of the Marine Corps.

‘‘5045. Director of the Marine Corps Staff; Deputy and Assistant Commandants.’’.

8 SEC. 905. INCLUSION OF INFORMATION RESOURCES MAN9 AGEMENT COLLEGE IN THE NATIONAL DE10 FENSE UNIVERSITY.

11 (a) TECHNICAL AMENDMENT AND ADDITION OF IN12 FORMATION RESOURCES MANAGEMENT COLLEGE TO THE

13 DEFINITION OF THE NATIONAL DEFENSE UNIVERSITY.—

14 Section 1595(d)(2) of title 10, United States Code, is

15 amended by striking out ‘‘the Institute for National Stra16 tegic Study,’’ and inserting in lieu thereof ‘‘the Institute

17 for National Strategic Studies, the Information Resources

18 Management College,’’.

19 (b) CONFORMING AMENDMENT.—Section 2162(d)(2)

20 of such title is amended by inserting ‘‘the Institute for

21 National Strategic Studies, the Information Resources

22 Management College,’’ after ‘‘the Armed Forces Staff Col23 lege,’’.
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1 SEC. 906. EMPLOYMENT OF CIVILIANS AT THE ASIA-PA2 CIFIC CENTER FOR SECURITY STUDIES.

3 Section 1595 of title 10, United States Code, is

4 amended—

5 (1) in subsection (c), by adding at the end the

6 following new paragraph:

7 ‘‘(4) The Asia-Pacific Center for Security Stud8 ies.’’; and

9 (2) by adding at the end the following new sub10 section:

11 ‘‘(f) APPLICATION TO DIRECTOR AND DEPUTY DI12 RECTOR AT ASIA-PACIFIC CENTER FOR SECURITY STUD13 IES.—In the case of the Asia-Pacific Center for Security

14 Studies, this section also applies with respect to the Direc15 tor and the Deputy Director.’’.

16 SEC. 907. CONTINUED OPERATION OF UNIFORMED SERV17 ICES UNIVERSITY OF THE HEALTH SCIENCES.

18 (a) CLOSURE PROHIBITED.—In light of the impor19 tant role of the Uniformed Services University of the

20 Health Sciences in providing trained health care providers

21 for the uniformed services, Congress reaffirms the require22 ment contained in section 922 of the National Defense Au23 thorization Act for Fiscal Year 1995 (Public Law 103–

24 337; 108 Stat 2829) that the Uniformed Services Univer25 sity of the Health Sciences may not be closed.
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1 (b) BUDGETARY COMMITMENT TO CONTINUATION.—

2 It is the sense of Congress that the Secretary of Defense

3 should budget for the operation of the Uniformed Services

4 University of the Health Sciences during fiscal year 1997

5 at a level at least equal to the level of operations conducted

6 at the University during fiscal year 1995.

7 SEC. 908. REDESIGNATION OF ADVANCED RESEARCH

8 PROJECTS AGENCY.

9 (a) REDESIGNATION.—The agency in the Depart10 ment of Defense known as the Advanced Research

11 Projects Agency shall after the date of the enactment of

12 this Act be designated as the Defense Advanced Research

13 Projects Agency.

14 (b) REFERENCES.—Any reference in any law, regula15 tion, document, record, or other paper of the United

16 States to the Advanced Research Projects Agency shall be

17 considered to be a reference to the Defense Advanced Re18 search Projects Agency.

19 SEC. 909. NAVAL NUCLEAR PROPULSION PROGRAM.

20 No department or agency may regulate or direct any

21 change in function for facilities under the Naval Nuclear

22 Propulsion Program unless otherwise permitted or speci23 fied by law.
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1 SEC. 910. AVIATION TESTING CONSOLIDATION.

2 (a) LIMITATION.—The Secretary of the Army may

3 not consolidate the Aviation Technical Test Center, Fort

4 Rucker, Alabama, with any other aviation testing facility

5 until 60 days after the date on which a report containing

6 the results of the evaluation of such consolidation de7 scribed in subsection (b) is received by the congressional

8 defense committees.

9 (b) INDEPENDENT EVALUATION.—The Secretary of

10 the Army shall provide for an evaluation by the Institute

11 for Defense Analyses (a Federal contract research center)

12 of the proposal of the Test and Evaluation Command of

13 the Army to relocate the Aviation Technical Test Center

14 to Yuma Proving Ground, Arizona. The evaluation of such

15 proposal shall include consideration of the following:

16 (1) A review and validation of studies con17 ducted by the Army Materiel Command and the

18 Army Test and Evaluation Command of the pro19 posed relocation.

20 (2) The effect on, and cost of, maintenance and

21 logistics capability (including maintenance of a parts

22 inventory) to support the test evaluation fleet.

23 (3) The availability of facilities and infrastruc24 ture necessary to conduct the aviation testing mis25 sion at Yuma Proving Ground.
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1 (4) The availability of engineers and mainte2 nance technicians to support the aviation testing

3 mission at Yuma Proving Ground.

4 (5) The effect on current and planned aircraft

5 programs.

6 (6) Consistency with the efforts of the Army to

7 become the Department of Defense leader for ro8 tary-wing aircraft.

9 (7) Potential savings, including the time period

10 over which such savings could be realized.

11 (8) Comparison of live-fire testing with com12 puter-simulated testing.

13 (c) TIME REQUIREMENT FOR COMPLETION OF EVAL14 UATION.—The evaluation under subsection (b) shall be

15 completed not later than 120 days after the date of the

16 enactment of this Act.

17 TITLE X—GENERAL PROVISIONS

18 Subtitle A—Financial Matters

19 SEC. 1001. TRANSFER AUTHORITY.

20 (a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—

21 (1) Upon determination by the Secretary of Defense that

22 such action is necessary in the national interest, the Sec23 retary may transfer amounts of authorizations made avail24 able to the Department of Defense in this division for fis25 cal year 1996 between any such authorizations for that
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1 fiscal year (or any subdivisions thereof). Amounts of au2 thorizations so transferred shall be merged with and be

3 available for the same purposes as the authorization to

4 which transferred.

5 (2) The total amount of authorizations that the Sec6 retary of Defense may transfer under the authority of this

7 section may not exceed $2,000,000,000.

8 (b) LIMITATIONS.—The authority provided by this

9 section to transfer authorizations—

10 (1) may only be used to provide authority for

11 items that have a higher priority than the items

12 from which authority is transferred; and

13 (2) may not be used to provide authority for an

14 item that has been denied authorization by Con15 gress.

16 (c) EFFECT ON AUTHORIZATION AMOUNTS.—A

17 transfer made from one account to another under the au18 thority of this section shall be deemed to increase the

19 amount authorized for the account to which the amount

20 is transferred by an amount equal to the amount trans21 ferred.

22 SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

23 (a) STATUS OF CLASSIFIED ANNEX.—The Classified

24 Annex prepared by the Committee on National Security

25 of the House of Representatives to accompany the bill
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1 H.R. 1530 of the One Hundred Fourth Congress and

2 transmitted to the President is hereby incorporated into

3 this Act.

4 (b) CONSTRUCTION WITH OTHER PROVISIONS OF

5 ACT.—The amounts specified in the Classified Annex are

6 not in addition to amounts authorized to be appropriated

7 by other provisions of this Act.

8 (c) LIMITATION ON USE OF FUNDS.—Funds appro9 priated pursuant to an authorization contained in this Act

10 that are made available for a program, project, or activity

11 referred to in the Classified Annex may only be expended

12 for such program, project, or activity in accordance with

13 such terms, conditions, limitations, restrictions, and re14 quirements as are set out for that program, project, or

15 activity in the Classified Annex.

16 (d) DISTRIBUTION OF CLASSIFIED ANNEX.—The

17 President shall provide for appropriate distribution of the

18 Classified Annex, or of appropriate portions of the annex,

19 within the executive branch of the Government.

20 SEC. 1003. IMPROVED FUNDING MECHANISMS FOR

21 UNBUDGETED OPERATIONS.

22 (a) REVISION OF FUNDING MECHANISM.—(1) Chap23 ter 3 of title 10, United States Code, is amended by strik24 ing out section 127a and inserting in lieu thereof the fol25 lowing:
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1 ‘‘§ 127a. Operations for which funds are not provided

2 in advance: funding mechanisms

3 ‘‘(a) IN GENERAL.—(1) The Secretary of Defense

4 shall use the procedures prescribed by this section with

5 respect to any operation of the Department of Defense—

6 ‘‘(A) that involves the deployment (other than

7 for a training exercise) of elements of the armed

8 forces for a purpose other than a purpose for which

9 funds have been specifically provided in advance; or

10 ‘‘(B) that involves humanitarian assistance, dis11 aster relief, or support for law enforcement (includ12 ing immigration control) for which funds have not

13 been specifically provided in advance.

14 ‘‘(2) Whenever any operation described in paragraph

15 (1) is commenced, the Secretary of Defense shall designate

16 and identify that operation for the purposes of this section

17 and shall promptly notify Congress of that designation

18 (and of the identification of the operation).

19 ‘‘(3) This section does not provide authority for the

20 President or the Secretary of Defense to carry out any

21 operation, but establishes mechanisms for the Department

22 of Defense by which funds are provided for operations that

23 the armed forces are required to carry out under some

24 other authority.

25 ‘‘(b) WAIVER OF REQUIREMENT TO REIMBURSE

26 SUPPORT UNITS.—(1) The Secretary of Defense shall di-
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1 rect that, when a unit of the armed forces participating

2 in an operation described in subsection (a) receives serv3 ices from an element of the Department of Defense that

4 operates through the Defense Business Operations Fund

5 (or a successor fund), such unit of the armed forces may

6 not be required to reimburse that element for the incre7 mental costs incurred by that element in providing such

8 services, notwithstanding any other provision of law or any

9 Government accounting practice.

10 ‘‘(2) The amounts which but for paragraph (1) would

11 be required to be reimbursed to an element of the Depart12 ment of Defense (or a fund) shall be recorded as an ex13 pense attributable to the operation and shall be accounted

14 for separately.

15 ‘‘(c) TRANSFER AUTHORITY.—(1) Whenever there is

16 an operation of the Department of Defense described in

17 subsection (a), the Secretary of Defense may, subject to

18 the provisions of appropriations Acts, transfer amounts

19 described in paragraph (3) to accounts from which incre20 mental expenses for that operation were incurred in order

21 to reimburse those accounts for those incremental ex22 penses. Amounts so transferred shall be merged with and

23 be available for the same purposes as the accounts to

24 which transferred.
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1 ‘‘(2) The total amount that the Secretary of Defense

2 may transfer under the authority of this section in any

3 fiscal year is $200,000,000.

4 ‘‘(3) Transfers under this subsection may only be

5 made from amounts appropriated to the Department of

6 Defense for any fiscal year that remain available for obli7 gation from any of the following accounts:

8 ‘‘(A) Environmental Restoration, Defense.

9 ‘‘(B) Cooperative Threat Reduction programs.

10 ‘‘(C) Overseas Humanitarian, Disaster, and

11 Civic Aid (OHDACA) programs.

12 ‘‘(D) Operations and Maintenance, Defense13 Wide (but only from funds available for administra14 tion and service-wide activities).

15 ‘‘(4) The authority provided by this subsection is in

16 addition to any other authority provided by law authoriz17 ing the transfer of amounts available to the Department

18 of Defense. However, the Secretary may not use any such

19 authority under another provision of law for a purpose de20 scribed in paragraph (1) if there is authority available

21 under this subsection for that purpose.

22 ‘‘(5) The authority provided by this subsection to

23 transfer amounts may not be used to provide authority

24 for an activity that has been denied authorization by Con25 gress.
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1 ‘‘(6) A transfer made from one account to another

2 under the authority of this subsection shall be deemed to

3 increase the amount authorized for the account to which

4 the amount is transferred by an amount equal to the

5 amount transferred.

6 ‘‘(d) FINANCIAL PLAN.—(1) Within 30 days after the

7 beginning of an operation described in subsection (a), the

8 Secretary of Defense shall submit to Congress a financial

9 plan for the operation that sets forth the manner by which

10 the Secretary proposes to obtain funds for the cost to the

11 United States of the operation. The plan shall specify in

12 detail how the Secretary proposes to restore balances in

13 the Defense Business Operations Fund (or a successor

14 fund) to the levels that would have been anticipated but

15 for the provisions of subsection (b). The Secretary may

16 not include in such a plan a means to restore such bal17 ances that is prohibited by paragraph (2) or (4).

18 ‘‘(2) The Secretary may not restore (or propose in

19 a plan under paragraph (1) to restore) balances in the

20 Defense Business Operations Fund through increases in

21 rates charged by that fund in order to compensate for

22 costs incurred and not reimbursed due to subsection (b).

23 ‘‘(3) If the Secretary of Defense transfers funds

24 under subsection (c), the Secretary shall submit to Con25 gress, within 30 days of such transfer, a plan for the res-
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1 toration of the balance in the each account from which

2 the transfer was made to the level that would have been

3 the case but for the transfer.

4 ‘‘(4) The Secretary may not restore (or propose in

5 a plan under paragraph (1) or (3) to restore) balances

6 in any the Defense Business Operations Fund or any

7 other fund or account through the use of unobligated

8 amounts in an appropriation made for operation and

9 maintenance that are available within that appropriation

10 for an account (known as a budget activity 1 account) that

11 is specified as being for operating forces.

12 ‘‘(e) SUBMISSION OF REQUESTS FOR SUPPLEMENTAL

13 APPROPRIATIONS.—(1) Whenever there is an operation

14 described in subsection (a), the President shall submit to

15 Congress a request for the enactment of supplemental ap16 propriations for the then-current fiscal year, to be des17 ignated as an emergency supplemental appropriations, in

18 order to provide funds to replenish the Defense Business

19 Operations Fund or any other fund or account of the De20 partment of Defense from which funds for the incremental

21 expenses of that operation were derived under this section.

22 ‘‘(2) A request under paragraph (1) shall be submit23 ted not later than the earlier of (A) the time at which

24 incremental expenses for the operation exceed

25 $10,000,000, or (B) 90 days after the date on which the
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1 operation begins. The request shall be submitted as a sep2 arate request from any other legislative proposal.

3 ‘‘(f) INCREMENTAL COSTS.—For purposes of this

4 section, incremental costs of the Department of Defense

5 with respect to an operation are the costs of the Depart6 ment that are directly attributable to the operation (and

7 would not have been incurred but for the operation).

8 ‘‘(g) RELATIONSHIP TO WAR POWERS RESOLU9 TION.—This section may not be construed as altering or

10 superseding the War Powers Resolution. This section does

11 not provide authority to conduct any military operation.

12 ‘‘(h) GAO COMPLIANCE REVIEWS.—The Comptroller

13 General of the United States shall from time to time, and

14 when requested by a committee of Congress, conduct a

15 review of the defense funding structure under this section

16 to determine whether the Department of Defense is com17 plying with the requirements and limitations of this sec18 tion.

19 ‘‘§ 127b. Budgeting for ongoing operations

20 ‘‘(a) REQUIREMENT FOR INCLUSION IN BUDGET.—

21 In the case of an operation of the Department of Defense

22 described in subsection (c), the President shall include

23 with the budget submitted to Congress pursuant to section

24 1105 of title 31 for the next fiscal year a specific request

25 for enactment of legislation to provide for the provision
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1 of funds for such operation for that fiscal year in a man2 ner that will result in there not being a lower amount of

3 funds available to the Department of Defense for that fis4 cal year than would be the case if that operation were not

5 carried out during that year. Such a request shall include

6 one or more of the following:

7 ‘‘(1) A request for enactment of appropriation

8 of funds for the incremental costs for that operation

9 that are expected to be incurred by the Department

10 of Defense during the fiscal year for which the budg11 et is submitted, with such funds to be provided in,

12 and charged to, a budget function other than the na13 tional defense budget function (function 050).

14 ‘‘(2) A request for enactment of appropriation

15 of funds for the incremental costs for that operation

16 that are expected to be incurred by the Department

17 of Defense during the fiscal year for which the budg18 et is submitted, with such designations or waivers as

19 may be necessary to ensure that (if enacted) such

20 appropriations are not counted against the total

21 amount of funds for the Department of Defense, or

22 for the national defense budget function, for purpose

23 of any statutory limitation or restriction.

24 ‘‘(3) A request for enactment of rescissions.
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1 ‘‘(b) LIMITATION.—In the case of any operation to

2 which the requirement of subsection (a) applies, no funds

3 may be obligated or expended for that operation after the

4 beginning of the fiscal year for which the budget is submit5 ted if the requirement in subsection (a) is not complied

6 with.

7 ‘‘(c) COVERED OPERATIONS.—This section applies

8 with respect to any operation of the Department of De9 fense involving the use of the Armed Forces that—

10 ‘‘(1) is ongoing in the first quarter of a fiscal

11 year;

12 ‘‘(2) is not expected to end during the current

13 fiscal year;

14 ‘‘(3) for which appropriations were not specifi15 cally provided in advance for the current fiscal year.

16 ‘‘(d) WAIVER AUTHORITY.—The President may

17 waive the provisions of this section for any fiscal year—

18 ‘‘(1) during which there is in effect a declara19 tion of war; or

20 ‘‘(2) during which authority is in effect pursu21 ant to section 12302 of this title to order units and

22 members of the Ready Reserve to active duty with23 out the consent of the persons concerned.’’.
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1 (2) The table of sections at the beginning of such

2 chapter is amended by striking out the item relating to

3 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.’’.

4 (b) EFFECTIVE DATE.—The amendment to section

5 127a of title 10, United States Code, made by subsection

6 (a) shall take effect on October 1, 1995, and shall apply

7 to any operation of the Department of Defense, whether

8 begun before, on, or after such date. In the case of any

9 operation begun before such date, any reference in such

10 section to the date of the beginning of such operation shall

11 be treated as referring to the effective date under the pre12 ceding sentence.

13 SEC. 1004. DESIGNATION AND LIABILITY OF DISBURSING

14 AND CERTIFYING OFFICIALS.

15 (a) DISBURSING OFFICIALS.—(1) Section 3321(c) of

16 title 31, United States Code, is amended by striking out

17 paragraph (2) and inserting in lieu thereof the following:

18 ‘‘(2) The Department of Defense.

19 ‘‘(3) The Coast Guard (when not operating as

20 a service in the Navy).’’.

21 (2) Section 2773 of title 10, United States Code, is

22 amended—

23 (A) in subsection (a)—
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1 (i) by striking out ‘‘With the approval of

2 the Secretary of a military department when

3 the Secretary considers it necessary, a disburs4 ing official of the military department’’ and in5 serting in lieu thereof ‘‘Subject to paragraph

6 (3), a disbursing official of the Department of

7 Defense’’; and

8 (ii) by adding at the end the following new

9 paragraph:

10 ‘‘(3) A disbursing official may make a designation

11 under paragraph (1) only with the approval of the Sec12 retary of Defense or, in the case of a disbursing official

13 of a military department, the Secretary of that military

14 department.’’; and

15 (B) in subsection (b)(1)—

16 (i) by striking out ‘‘any military depart17 ment’’ and inserting in lieu thereof ‘‘the De18 partment of Defense’’; and

19 (ii) by striking out ‘‘2d month’’ and insert20 ing in lieu thereof ‘‘second month’’.

21 (b) DESIGNATION OF MEMBERS OF THE ARMED

22 FORCES TO HAVE AUTHORITY TO CERTIFY VOUCH23 ERS.—(1) Section 3325(b) of title 31, United States Code,

24 is amended to read as follows:
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1 ‘‘(b) In addition to officers and employees referred

2 to in subsection (a)(1)(B) of this section as having author3 ization to certify vouchers, the Secretary of Defense and

4 the Secretary of Transportation (with respect to the Coast

5 Guard when it is not operating as a service in the Navy)

6 may authorize, in writing, members of the armed forces

7 under their jurisdiction to certify vouchers.’’.

8 (2) Section 3528(d) of title 31, United States Code,

9 is repealed.

10 (c) RELIEF OF ACCOUNTABLE OFFICIALS AND

11 AGENTS FROM LIABILITY.—Section 3527(b)(1) of title

12 31, United States Code, is amended—

13 (1) by striking out ‘‘armed forces’’ in the mat14 ter preceding subparagraph (A) and inserting in lieu

15 thereof ‘‘Department of Defense or the Coast

16 Guard’’; and

17 (2) in subparagraph (A), by striking out ‘‘ap18 propriate Secretary of the military department of

19 the Department of Defense’’ and inserting in lieu

20 thereof ‘‘Secretary of Transportation (with respect

21 to the Coast Guard when it is not operating as a

22 service in the Navy)’’.

23 (d) CONFORMING AMENDMENTS.—(1) Section 1012

24 of title 37, United States Code, is amended by striking
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1 out ‘‘Secretary concerned’’ both places it appears and in2 serting in lieu thereof ‘‘Secretary of Defense’’.

3 (2)(A) Section 7863 of title 10, United States Code,

4 is amended—

5 (i) in the first sentence, by striking out ‘‘dis6 bursements of public moneys or’’ and ‘‘the money

7 was paid or’’; and

8 (ii) in the second sentence, by striking out ‘‘dis9 bursement or’’.

10 (B)(i) The heading of such section is amended to read

11 as follows:

12 ‘‘§ 7863. Disposal of public stores by order of com13 manding officer’’.

14 (ii) The item relating to such section in the table of

15 sections at the beginning of chapter 661 of such title is

16 amended to read as follows:

‘‘7863. Disposal of public stores by order of commanding officer.’’.

17 SEC. 1005. AUTHORITY FOR OBLIGATION OF CERTAIN UN18 AUTHORIZED FISCAL YEAR 1995 DEFENSE AP19 PROPRIATIONS.

20 (a) AUTHORITY.—The amounts described in sub21 section (b) may be obligated and expended for programs,

22 projects, and activities of the Department of Defense in

23 accordance with fiscal year 1995 defense appropriations.

24 (b) COVERED AMOUNTS.—The amounts referred to

25 in subsection (a) are the amounts provided for programs,
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1 projects, and activities of the Department of Defense in

2 fiscal year 1995 defense appropriations that are in excess

3 of the amounts provided for such programs, projects, and

4 activities in fiscal year 1995 defense authorizations.

5 (c) DEFINITIONS.—For the purposes of this section:

6 (1) FISCAL YEAR 1995 DEFENSE APPROPRIA7 TIONS.—The term ‘‘fiscal year 1995 defense appro8 priations’’ means amounts appropriated or otherwise

9 made available to the Department of Defense for fis10 cal year 1995 in the Department of Defense Appro11 priations Act, 1995 (Public Law 103–335).

12 (2) FISCAL YEAR 1995 DEFENSE AUTHORIZA13 TIONS.—The term ‘‘fiscal year 1995 defense author14 izations’’ means amounts authorized to be appro15 priated for the Department of Defense for fiscal

16 year 1995 in the National Defense Authorization

17 Act for Fiscal Year 1995 (Public Law 103–337).

18 SEC. 1006. AUTHORIZATION OF PRIOR EMERGENCY SUP19 PLEMENTAL APPROPRIATIONS FOR FISCAL

20 YEAR 1995.

21 (a) ADJUSTMENT TO PREVIOUS AUTHORIZATIONS.—

22 Amounts authorized to be appropriated to the Department

23 of Defense for fiscal year 1995 in the National Defense

24 Authorization Act for Fiscal Year 1995 (Public Law 103–

25 337) are hereby adjusted, with respect to any such author-
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1 ized amount, by the amount by which appropriations pur2 suant to such authorization were increased (by a supple3 mental appropriation) or decreased (by a rescission), or

4 both, in title I of the Emergency Supplemental Appropria5 tions and Rescissions for the Department of Defense to

6 Preserve and Enhance Military Readiness Act of 1995

7 (Public Law 104–6).

8 (b) NEW AUTHORIZATION.—The appropriation pro9 vided in section 104 of such Act is hereby authorized.

10 SEC. 1007. PROHIBITION OF INCREMENTAL FUNDING OF

11 PROCUREMENT ITEMS.

12 Section 114 of title 10, United States Code, is

13 amended by adding at the end the following new sub14 section:

15 ‘‘(f)(1) No funds may be appropriated, or authorized

16 to be appropriated, for any fiscal year for a purpose

17 named in paragraph (1), (3), (4), or (5) of subsection (a)

18 using incremental funding.

19 ‘‘(2) In the budget submitted by the President for

20 any fiscal year, the President may not request appropria21 tions, or authorization of appropriations, on the basis of

22 incremental funding for a purpose specified in paragraph

23 (1).

24 ‘‘(3) In this subsection, the term ‘incremental fund25 ing’ means the provision of funds for a fiscal year for a
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1 procurement in less than the full amount required for pro2 curement of a complete and usable product, with the ex3 pectation (or plan) for additional funding to be made for

4 subsequent fiscal years to complete the procurement of a

5 complete and usable product.

6 ‘‘(4) This subsection does not apply with respect to

7 funding classified as advance procurement funding.’’.

8 Subtitle B—Naval Vessels and

9 Shipyards

10 SEC. 1021. CONTRACT OPTIONS FOR LMSR VESSELS.

11 (a) FINDINGS.—Congress makes the following find12 ings:

13 (1) A requirement for the Department of the

14 Navy to acquire 19 large, medium-speed, roll-on/roll15 off (LMSR) vessels was established by the Secretary

16 of Defense in the Mobility Requirements Study con17 ducted after the Persian Gulf War pursuant to sec18 tion 909 of the National Defense Authorization Act

19 for Fiscal Year 1991 (Public law 101–510; 104

20 Stat. 1623) and was revalidated by the Secretary of

21 Defense in the report entitled ‘‘Mobility Require22 ments Study Bottom-Up Review Update’’, submitted

23 to Congress in April 1995.

24 (2) The Strategic Sealift Program is a vital ele25 ment of the national military strategy calling for the
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1 Nation to be able to fight and win two nearly simul2 taneous major regional contingencies.

3 (3) The Secretary of the Navy has entered into

4 contracts with shipyards covering acquisition of a

5 total of 17 such LMSR vessels, of which five are ves6 sel conversions and 12 are new construction vessels.

7 Under those contracts, the Secretary has placed or8 ders for the acquisition of 11 vessels and has options

9 for the acquisition of six more, all of which would be

10 new construction vessels. The options allow the Sec11 retary to place orders for one vessel to be con12 structed at each of two shipyards for award before

13 December 31, 1995, December 31, 1996, and De14 cember 31, 1997, respectively.

15 (4) Acquisition of an additional two such

16 LMSR vessels, for a total of 19 vessels (the require17 ment described in paragraph (1)) would contribute

18 to preservation of the industrial base of United

19 States shipyards capable of building auxiliary and

20 sealift vessels.

21 (b) SENSE OF CONGRESS.—It is the sense of Con22 gress that the Secretary of the Navy should plan for, and

23 budget to provide for, the acquisition as soon as possible

24 of a total of 19 large, medium-speed, roll-on/roll-off

25 (LMSR) vessels (the number determined to be required
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1 in the Mobility Requirements Study referred to in sub2 section (a)(1)), rather than only 17 such vessels (the num3 ber of vessels under contract as of May 1995).

4 (c) ADDITIONAL NEW CONSTRUCTION CONTRACT

5 OPTION.—The Secretary of the Navy should negotiate

6 with each of the two shipyards holding new construction

7 contracts referred to in subsection (a)(3) (Department of

8 the Navy contracts numbered N00024–93–C–2203 and

9 N00024–93–C–2205) for an option under each such con10 tract for construction of one additional such LMSR vessel,

11 with such option to be available to the Secretary for exer12 cise during 1995, 1996, or 1997.

13 (d) REPORT.—The Secretary of the Navy shall sub14 mit to the congressional defense committees, by March 31,

15 1996, a report stating the intentions of the Secretary re16 garding the acquisition of options for the construction of

17 two additional LMSR vessels as described in subsection

18 (c).

19 SEC. 1022. VESSELS SUBJECT TO REPAIR UNDER PHASED

20 MAINTENANCE CONTRACTS.

21 (a) IN GENERAL.—(1) Chapter 633 of title 10, Unit22 ed States Code, is amended by adding at the end the fol23 lowing new section:
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1 ‘‘§ 7315. Phased maintenance contracts: vessels cov2 ered

3 ‘‘In any case in which the Secretary of the Navy en4 ters into a contract for the phased maintenance of a class

5 of vessels or vessels of an identified type, the Secretary

6 shall ensure that—

7 ‘‘(1) any vessel that is covered by the contract

8 when it is entered into remains covered by the con9 tract, regardless of operating command to which the

10 vessel is subsequently assigned, unless the vessel is

11 taken out of service for the Department of the Navy;

12 and

13 ‘‘(2) any vessel of a class or type covered by the

14 contract that is delivered to the Navy while the con15 tract is in effect is covered by the contract.’’.

16 (2) The table of sections at the beginning of such

17 chapter is amended by adding at the end the following

18 new item:

‘‘7315. Phased maintenance contracts: vessels covered.’’.

19 (b) EFFECTIVE DATE.—Section 7315 of title 10, Unit20 ed States Code, as added by subsection (a), shall apply

21 with respect to contracts entered into after the date of

22 the enactment of this Act.
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1 SEC. 1023. CLARIFICATION OF REQUIREMENTS RELATING

2 TO REPAIRS OF VESSELS.

3 Section 7310(a) of title 10, United States Code, is

4 amended by inserting ‘‘or Guam’’ after ‘‘the United

5 States’’ the second place it appears.

6 SEC. 1024. NAMING OF NAVAL VESSEL.

7 It is the sense of Congress that the Secretary of the

8 Navy should name an appropriate ship of the United

9 States Navy the U.S.S. Joseph Vittori, in honor of Marine

10 Corporal Joseph Vittori (1929–1951) of Beverly, Massa11 chusetts, who was posthumously awarded the Medal of

12 Honor for actions against the enemy in Korea on Septem13 ber 15–16, 1951.

14 SEC. 1025. TRANSFER OF RIVERINE PATROL CRAFT.

15 (a) AUTHORITY TO TRANSFER VESSEL.—Notwith16 standing subsections (a) and (d) of section 7306 of title

17 10, United States Code, but subject to subsections (b) and

18 (c) of that section, the Secretary of the Navy may transfer

19 a vessel described in subsection (b) to Tidewater Commu20 nity College, Portsmouth, Virginia, for scientific and edu21 cational purposes.

22 (b) VESSEL.—The authority under subsection (a) ap23 plies in the case of a riverine patrol craft of the U.S.S.

24 Swift class.

25 (c) LIMITATION.—The transfer authorized by sub26 section (a) may be made only if the Secretary determines
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1 that the vessel to be transferred is of no further use to

2 the United States for national security purposes.

3 (d) TERMS AND CONDITIONS.—The Secretary may

4 require such terms and conditions in connection with the

5 transfer authorized by this section as the Secretary consid6 ers appropriate.

7 Subtitle C—Other Matters

8 SEC. 1031. TERMINATION AND MODIFICATION OF AUTHORI9 TIES REGARDING NATIONAL DEFENSE TECH10 NOLOGY AND INDUSTRIAL BASE, DEFENSE

11 REINVESTMENT, AND DEFENSE CONVERSION

12 PROGRAMS.

13 (a) CONGRESSIONAL DEFENSE POLICY.—Section

14 2501 of title 10, United States Code, is amended—

15 (1) in subsection (a), by striking out paragraph

16 (5); and

17 (2) in subsection (b)—

18 (A) by striking out ‘‘DEFENSE REINVEST19 MENT, DIVERSIFICATION, AND CONVERSION’’ in

20 the subsection heading and inserting in lieu

21 thereof ‘‘TECHNOLOGY DEVELOPMENT FOR NA22 TIONAL SECURITY’’;

23 (B) by striking out ‘‘, during a period of

24 reduction in defense expenditures,’’ in the mat25 ter preceding paragraph (1);
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1 (C) by striking out ‘‘of reinvestment, diver2 sification, and conversion of defense resources’’

3 in the matter preceding paragraph (1); and

4 (D) in paragraph (5), by striking out ‘‘de5 fense economic reinvestment’’ and inserting in

6 lieu thereof ‘‘economic investment’’.

7 (b) NATIONAL DEFENSE TECHNOLOGY AND INDUS8 TRIAL BASE COUNCIL.—Section 2502(c) of such title is

9 amended—

10 (1) in paragraph (1)(B), by striking out ‘‘, dur11 ing a period of reduction in defense expenditures,

12 the defense reinvestment, diversification, and conver13 sion objectives’’ and inserting in lieu thereof ‘‘the

14 objectives’’;

15 (2) by striking out paragraph (2); and

16 (3) by redesignating paragraph (3) as para17 graph (2).

18 (c) MODIFICATION OF DEFENSE DUAL-USE CRITI19 CAL TECHNOLOGY PARTNERSHIPS PROGRAM.—(1) Sub20 section (a) of section 2511 of such title is amended—

21 (A) by striking out ‘‘PARTNERSHIPS’’ in the

22 subsection heading and inserting in lieu thereof

23 ‘‘PROGRAM’’;

24 (B) in the first sentence, by striking out ‘‘, by

25 providing for the establishment’’ and all that follows
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1 through ‘‘encourage and provide’’ and inserting in

2 lieu thereof ‘‘by encouraging and providing’’;

3 (C) in the second sentence, by striking out ‘‘in

4 order to establish the partnerships’’ and inserting in

5 lieu thereof ‘‘in furtherance of the program’’; and

6 (D) by adding at the end the following new sen7 tence: ‘‘The Secretary shall identify projects to be

8 conducted as part of the program.’’.

9 (2) Such section is further amended by striking out

10 subsections (b), (c), and (d) and inserting in lieu thereof

11 the following new subsection:

12 ‘‘(b) ASSISTANCE AUTHORIZED.—The Secretary of

13 Defense may provide technical and other assistance to fa14 cilitate the achievement of the purposes of projects con15 ducted under the program. In providing such assistance,

16 the Secretary may make available, as appropriate for the

17 work to be performed, equipment and facilities of Depart18 ment of Defense laboratories (including the scientists and

19 engineers at those laboratories) for purposes of projects

20 selected by the Secretary.’’.

21 (3) Such section is further amended—

22 (A) by redesignating subsections (e), (f), and

23 (g), as subsections (c), (d), and (e), respectively;

24 (B) in subsection (c), as so redesignated, by

25 striking out ‘‘establishment of partnerships’’ and in-
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1 serting in lieu thereof ‘‘conduct of the program’’;

2 and

3 (C) in subsection (d), as so redesignated—

4 (i) by striking out ‘‘proposed partnerships

5 for establishment under this section’’ in the

6 matter preceding paragraph (1) and inserting

7 in lieu thereof ‘‘projects under the program’’;

8 (ii) in paragraphs (1) and (2), by striking

9 out ‘‘program proposed to be conducted by the

10 partnership’’ both places it appears and insert11 ing in lieu thereof ‘‘proposed project’’;

12 (iii) in paragraph (3), by striking out

13 ‘‘partnership’s’’ and inserting in lieu thereof

14 ‘‘proposed project’s’’; and

15 (iv) in paragraphs (4) through (7), by

16 striking out ‘‘partnership’’ each place it appears

17 and inserting in lieu thereof ‘‘project’’.

18 (d) REPEAL OF COMMERCIAL-MILITARY INTEGRA19 TION PARTNERSHIPS PROGRAM.—Section 2512 of such

20 title is repealed.

21 (e) REPEAL OF REGIONAL TECHNOLOGY ALLIANCES

22 ASSISTANCE PROGRAM.—Section 2513 of such title is re23 pealed.
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1 (f) MILITARY-CIVILIAN INTEGRATION AND TECH2 NOLOGY TRANSFER ADVISORY BOARD.—Section 2516(b)

3 of such title is amended—

4 (1) by inserting ‘‘and’’ at the end of paragraph

5 (2);

6 (2) by striking out ‘‘; and’’ at the end of para7 graph (3) and inserting in lieu thereof a period; and

8 (3) by striking out paragraph (4).

9 (g) FEDERAL DEFENSE LABORATORY DIVERSIFICA10 TION PROGRAM.—Section 2519 of such title is amended—

11 (1) in subsection (b), by striking out ‘‘referred

12 to in section 2511(b) of this title’’;

13 (2) in subsection (d)—

14 (A) by striking out ‘‘(1)’’ before ‘‘The Sec15 retary shall’’; and

16 (B) by striking out paragraph (2); and

17 (3) in subsection (f), by striking out ‘‘section

18 2511(f)’’ and inserting in lieu thereof ‘‘section

19 2511(d)’’.

20 (h) REPEAL OF NAVY REINVESTMENT PROGRAM.—

21 Section 2520 of such title is repealed.

22 (i) REPEAL OF NATIONAL DEFENSE MANUFACTUR23 ING TECHNOLOGY PROGRAM.—Section 2521 of such title

24 is repealed.
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1 (j) REPEAL OF DEFENSE ADVANCED MANUFACTUR2 ING TECHNOLOGY PARTNERSHIPS PROGRAM.—Section

3 2522 of such title is repealed.

4 (k) REPEAL OF MANUFACTURING EXTENSION PRO5 GRAM.—Section 2523 of such title is repealed.

6 (l) REPEAL OF DEFENSE DUAL-USE ASSISTANCE

7 EXTENSION PROGRAM.—Section 2524 of such title is re8 pealed.

9 (m) CLERICAL AMENDMENTS.—(1) The heading of

10 section 2511 of such title is amended to read as follows:

11 ‘‘§ 2511. Defense dual-use critical technology pro12 gram’’.

13 (2) The table of sections at the beginning of sub14 chapter III of chapter 148 of such title is amended—

15 (A) by striking out the item relating to section

16 2511 and inserting in lieu thereof the following new

17 item:

‘‘2511. Defense dual-use critical technology program.’’; and

18 (B) by striking out the items relating to sec19 tions 2512, 2513, and 2520.

20 (3) The table of sections at the beginning of sub21 chapter IV of such chapter is amended by striking out the

22 items relating to sections 2521, 2522, 2523, and 2524.
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1 SEC. 1032. REPEAL OF MISCELLANEOUS PROVISIONS OF

2 LAW.

3 (a) VOLUNTEERS INVESTING IN PEACE AND SECU4 RITY PROGRAM.—(1) Chapter 89 of title 10, United

5 States Code, is repealed.

6 (2) The tables of chapters at the beginning of subtitle

7 A, and at the beginning of part II of subtitle A, of such

8 title are amended by striking out the item relating to chap9 ter 89.

10 (b) SECURITY AND CONTROL OF SUPPLIES.—(1)

11 Chapter 171 of such title is repealed.

12 (2) The tables of sections at the beginning of subtitle

13 A, and at the beginning of part IV of subtitle A, of such

14 title are each amended by striking out the item relating

15 to chapter 171.

16 (c) ANNUAL AUTHORIZATION OF MILITARY TRAIN17 ING STUDENT LOADS.—Section 115 of such title is

18 amended—

19 (1) in subsection (a), by striking out paragraph

20 (3);

21 (2) in subsection (b)—

22 (A) by inserting ‘‘or’’ at the end of para23 graph (1);

24 (B) by striking out ‘‘; or’’ at the end of

25 paragraph (2) and inserting in lieu thereof a

26 period; and
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1 (C) by striking out paragraph (3); and

2 (3) by striking out subsection (f).

3 (d) PORTIONS OF ANNUAL MANPOWER REQUIRE4 MENTS REPORT.—Section 115a of such title is amended—

5 (1) in subsection (b)(2), by striking out sub6 paragraph (C);

7 (2) by striking out subsection (d);

8 (3) by redesignating subsection (e) as sub9 section (d) and striking out paragraphs (4) and (5)

10 thereof;

11 (4) by striking out subsection (f); and

12 (5) by redesignating subsection (g) as sub13 section (e).

14 (e) OBSOLETE AUTHORITY FOR PAYMENT OF STI15 PENDS FOR MEMBERS OF CERTAIN ADVISORY COMMIT16 TEES AND BOARDS OF VISITORS OF SERVICE ACAD17 EMIES.—(1) The second sentence of each of sections

18 173(b) and 174(b) of such title is amended to read as fol19 lows: ‘‘Other members and part-time advisers shall (except

20 as otherwise specifically authorized by law) serve without

21 compensation for such service.’’.

22 (2) Sections 4355(h), 6968(h), and 9355(h) of such

23 title are amended by striking out ‘‘is entitled to not more

24 than $5 a day and’’.
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1 (f) ANNUAL BUDGET INFORMATION CONCERNING

2 RECRUITING COSTS.—(1) Section 227 of such title is re3 pealed.

4 (2) The table of sections at the beginning of chapter

5 9 of such title is amended by striking out the item relating

6 to section 227.

7 (g) EXPIRED AUTHORITY RELATING TO PEACEKEEP8 ING ACTIVITIES.—(1) Section 403 of such title is repealed.

9 (2) The table of sections at the beginning of sub10 chapter I of chapter 20 of such title is amended by strik11 ing out the item relating to section 403.

12 (h) MANAGEMENT TRAINING PROGRAM IN JAPANESE

13 LANGUAGE AND CULTURE.—(1) Section 2198 of such

14 title is repealed.

15 (2) The table of sections at the beginning of chapter

16 111 of such title is amended by striking out the item relat17 ing to section 2198.

18 (i) PROCUREMENT OF GASOHOL FOR DEPARTMENT

19 OF DEFENSE MOTOR VEHICLES.—(1) Subsection (a) of

20 section 2398 of such title is repealed.

21 (2) Such section is further amended—

22 (A) by redesignating subsections (b) and (c) as

23 subsections (a) and (b), respectively; and
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1 (B) in subsection (b), as so redesignated, by

2 striking out ‘‘subsection (b)’’ and inserting in lieu

3 thereof ‘‘subsection (a)’’.

4 (j) REQUIREMENT OF NOTICE OF CERTAIN DISPOS5 ALS AND GIFTS BY SECRETARY OF NAVY.—Section 7545

6 of such title is amended by striking out subsection (c).

7 (k) ANNUAL REPORT ON BIOLOGICAL DEFENSE RE8 SEARCH PROGRAM.—(1) Section 2370 of such title is re9 pealed.

10 (2) The table of sections at the beginning of chapter

11 139 of such title is amended by striking out the item relat12 ing to such section.

13 (l) REPORTS AND NOTIFICATIONS RELATING TO

14 CHEMICAL AND BIOLOGICAL AGENTS.—(1) Subsection (a)

15 of section 409 of Public Law 91–121 (50 U.S.C. 1511)

16 is repealed.

17 (2) Subsection (b) of such section (50 U.S.C. 1512)

18 is amended—

19 (A) by inserting ‘‘and’’ at the end of paragraph

20 (2);

21 (B) by striking out ‘‘; and’’ at the end of para22 graph (3) and inserting in lieu thereof a period; and

23 (C) by striking out paragraph (4).
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1 (3) Subsection (c) of such section (50 U.S.C. 1513)

2 is amended by striking out the second sentence of para3 graph (1).

4 (m) PROVISION GIVING PERMANENT STATUS TO EX5 ECUTIVE ORDER RELATING TO NAVAL NUCLEAR PRO6 PULSION PROGRAM.—Section 1634 of the Department of

7 Defense Authorization, 1985 (Public Law 98–525; 98

8 Stat. 2649; 42 U.S.C. 7158 note), is repealed.

9 (n) ANNUAL REPORT ON BALANCED TECHNOLOGY

10 INITIATIVE.—Subsection (e) of section 211 of the Na11 tional Defense Authorization Act for Fiscal Years 1990

12 and 1991 (Public Law 101–189; 103 Stat. 1394) is re13 pealed.

14 (o) OBSOLETE AUTHORITY REGARDING ANNISTON

15 ARMY DEPOT, ALABAMA.—Section 352 of the National

16 Defense Authorization Act for Fiscal Year 1991 (Public

17 Law 101–510; 104 Stat. 1539) is repealed.

18 (p) REPORT ON ENVIRONMENTAL RESTORATION

19 COSTS FOR INSTALLATIONS TO BE CLOSED UNDER 1990

20 BASE CLOSURE LAW.—Section 2827 of the National De21 fense Authorization Act for Fiscal Years 1992 and 1993

22 (Public Law 102–190; 10 U.S.C. 2687 note) is amended

23 by striking out subsection (b).

24 (q) LIMITATION ON AMERICAN DIPLOMATIC FACILI25 TIES IN GERMANY.—Section 1432 of the National Defense
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1 Authorization Act for Fiscal Year 1994 (Public Law 103–

2 160; 107 Stat. 1833) is repealed.

3 (r) REQUIREMENT RELATING TO ATHLETIC DIREC4 TOR OF NAVAL ACADEMY.—Section 556(b) of the Na5 tional Defense Authorization Act for Fiscal Year 1995

6 (Public Law 103–337; 108 Stat. 2774) (including the sec7 tion of title 10, United States Code, added by that section

8 effective January 1, 1996, and the table of sections item

9 added by that section) is repealed.

10 SEC. 1033. POLICY CONCERNING EXCESS DEFENSE INDUS11 TRIAL CAPACITY.

12 (a) FINDINGS.—Congress finds as follows:

13 (1) The Base Closure and Realignment Com14 missions have recommended that certain Govern15 ment-owned defense industrial facilities which

16 produce goods and services that were required dur17 ing the Cold War, but which are no longer required

18 for the national security, be closed.

19 (2) The Secretary of Defense has determined

20 that the maintenance of certain other Government21 owned defense industrial facilities is necessary to

22 support the research, development, and manufacture

23 of goods and services that are still required to pro24 tect the security of the United States.
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1 (3) These Government-owned defense industrial

2 facilities are critical to the security of the Nation

3 and should remain under Government control.

4 (4) Current work requirements at some of these

5 Government-owned defense industrial facilities have

6 fallen below a reasonably economic level of oper7 ation, increasing the cost of producing required

8 goods and services.

9 (5) Existing law and policy have failed to ad10 dress adequately the supplemental requirements nec11 essary to operate these Government-owned defense

12 industrial facilities in a cost-efficient manner and,

13 thereby, to maintain appropriate readiness for future

14 national security needs.

15 (6) The security interests of the United States

16 would be served by the establishment under law of

17 a policy that requires the best-value operation of

18 Government-owned defense industrial facilities.

19 (7) Such a policy should include, but not nec20 essarily be limited to, requirements that—

21 (A) the required capability and capacity

22 not being fully used at such Government-owned

23 facilities be maintained with separate funding

24 so as to stabilize operational costs; and
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1 (B) those facilities not be limited by

2 workyear/end strength hiring constraints.

3 (b) PROHIBITION.—No funds appropriated pursuant

4 to an authorization of appropriations in this Act may be

5 used for capital investment in, or the development and

6 construction of, a Government-owned, Government-oper7 ated defense industrial facility unless the Secretary of De8 fense certifies to the Congress that no similar capability

9 or minimally used capacity exists in any other Govern10 ment-owned, Government-operated defense industrial fa11 cility.

12 SEC. 1034. ROTC ACCESS TO CAMPUSES.

13 (a) IN GENERAL.—Chapter 49 of title 10, United

14 States Code, is amended by adding at the end the follow15 ing new section:

16 ‘‘§ 983. Institutions of higher education that prohibit

17 Senior ROTC units: denial of Department

18 of Defense grants and contracts

19 ‘‘(a) DENIAL OF DEPARTMENT OF DEFENSE GRANTS

20 AND CONTRACTS.—(1) No funds appropriated or other21 wise available to the Department of Defense may be made

22 obligated by contract or by grant (including a grant of

23 funds to be available for student aid) to any institution

24 of higher education that, as determined by the Secretary

25 of Defense, has an anti-ROTC policy and at which, as de-
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1 termined by the Secretary, the Secretary would otherwise

2 maintain or seek to establish a unit of the Senior Reserve

3 Officer Training Corps or at which the Secretary would

4 otherwise enroll or seek to enroll students for participation

5 in a unit of the Senior Reserve Officer Training Corps

6 at another nearby institution of higher education.

7 ‘‘(2) In the case of an institution of higher education

8 that is ineligible for Department of Defense grants and

9 contracts by reason of paragraph (1), the prohibition

10 under that paragraph shall cease to apply to that institu11 tion upon a determination by the Secretary that the insti12 tution no longer has an anti-ROTC policy.

13 ‘‘(b) NOTICE OF DETERMINATION.—Whenever the

14 Secretary makes a determination under subsection (a)

15 that an institution has an anti-ROTC policy, or that an

16 institution previously determined to have an anti-ROTC

17 policy no longer has such a policy, the Secretary—

18 ‘‘(1) shall transmit notice of that determination

19 to the Secretary of Education and to the Committee

20 on Armed Services of the Senate and the Committee

21 on National Security of the House of Representa22 tives; and

23 ‘‘(2) shall publish in the Federal Register notice

24 of that determination and of the effect of that deter25 mination under subsection (a)(1) on the eligibility of
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1 that institution for Department of Defense grants

2 and contracts.

3 ‘‘(c) SEMIANNUAL NOTICE IN FEDERAL REG4 ISTER.—The Secretary shall publish in the Federal Reg5 ister once every six months a list of each institution of

6 higher education that is currently ineligible for Depart7 ment of Defense grants and contracts by reason of a de8 termination of the Secretary under subsection (a).

9 ‘‘(d) ANTI-ROTC POLICY.—In this section, the term

10 ‘anti-ROTC policy’ means a policy or practice of an insti11 tution of higher education that—

12 ‘‘(1) prohibits, or in effect prevents, the Sec13 retary of Defense from maintaining or establishing

14 a unit of the Senior Reserve Officer Training Corps

15 at that institution, or

16 ‘‘(2) prohibits, or in effect prevents, a student

17 at that institution from enrolling in a unit of the

18 Senior Reserve Officer Training Corps at another in19 stitution of higher education.’’.

20 (b) CLERICAL AMENDMENT.—The table of sections

21 at the beginning of such chapter is amended by adding

22 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.’’.
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1 SEC. 1035. APPLICATION OF BUY AMERICAN ACT PRIN2 CIPLES.

3 (a) REINSTATEMENT OF PRINCIPLES.—(1) If the

4 Secretary of Defense, after consultation with the United

5 States Trade Representative, determines that a foreign

6 country which is party to an agreement described in para7 graph (2) has violated the terms of the agreement by dis8 criminating against certain types of products produced in

9 the United States that are covered by the agreement, the

10 Secretary of Defense shall rescind the Secretary’s blanket

11 waiver of the Buy American Act with respect to such types

12 of products produced in that foreign country.

13 (2) An agreement referred to in paragraph (1) is any

14 reciprocal defense procurement memorandum of under15 standing, between the United States and a foreign country

16 pursuant to which the Secretary of Defense has prospec17 tively waived the Buy American Act for certain products

18 in that country.

19 (b) REPORT.—The Secretary of Defense shall submit

20 to Congress a report on the amount of Department of De21 fense purchases from foreign entities in fiscal year 1996.

22 Such report shall separately indicate the dollar value of

23 items for which the Buy American Act was waived pursu24 ant to any agreement described in subsection (a)(2), the

25 Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.),
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1 or any international agreement to which the United States

2 is a party.

3 (c) DEFINITION.—For purposes of this section, the

4 term ‘‘Buy American Act’’ means title III of the Act enti5 tled ‘‘An Act making appropriations for the Treasury and

6 Post Office Departments for the fiscal year ending June

7 30, 1934, and for other purposes’’, approved March 3,

8 1933 (41 U.S.C. 10a et seq.).

9 TITLE XI—COOPERATIVE

10 THREAT REDUCTION WITH

11 STATES OF FORMER SOVIET

12 UNION

13 SEC. 1101. SPECIFICATION OF COOPERATIVE THREAT RE14 DUCTION PROGRAMS.

15 (a) IN GENERAL.—For purposes of section 301 and

16 other provisions of this Act, Cooperative Threat Reduction

17 programs are the programs specified in subsection (b).

18 (b) SPECIFIED PROGRAMS.—The programs referred

19 to in subsection (a) are the following:

20 (1) Programs to facilitate the elimination, and

21 the safe and secure transportation and storage, of

22 nuclear, chemical, and other weapons and their de23 livery vehicles.
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1 (2) Programs to facilitate the safe and secure

2 storage of fissile materials derived from the elimi3 nation of nuclear weapons.

4 (3) Programs to prevent the proliferation of

5 weapons, weapons components, and weapons-related

6 technology and expertise.

7 (4) Programs to expand military-to-military and

8 defense contacts.

9 SEC. 1102. FISCAL YEAR 1996 AUTHORIZATION.

10 Of the amount authorized in section 301 for Coopera11 tive Threat Reduction programs, not more than the follow12 ing amounts shall be available for the purposes specified:

13 (1) $50,000,000 for elimination of Russian

14 strategic offensive weapons.

15 (2) $20,000,000 for elimination of Ukraine

16 strategic nuclear weapons.

17 (3) $15,000,000 for elimination of Kazakhstan

18 strategic nuclear weapons.

19 (4) $5,000,000 for elimination of Belarus stra20 tegic nuclear weapons.

21 (5) $6,000,000 for design of a storage facility

22 for Russian fissile material.

23 (6) $42,500,000 for weapons security in Rus24 sia.
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1 (7) $35,000,000 for nuclear infrastructure

2 elimination in Ukraine, Belarus, and Kazakhstan.

3 (8) $10,000,000 for activities designated as De4 fense and Military Contacts/General Support/Train5 ing in Russia, Ukraine, Belarus, and Kazakhstan.

6 (9) $16,500,000 for activities designated as

7 Other Assessments/Support.

8 SEC. 1103. REPEAL OF DEMILITARIZATION ENTERPRISE

9 FUND AUTHORITY.

10 Section 1204 of the Cooperative Threat Reduction

11 Act of 1993 (title XII of Public Law 103–160; 22 U.S.C.

12 5953) is repealed.

13 SEC. 1104. PROHIBITION ON USE OF FUNDS FOR PEACE14 KEEPING EXERCISES AND RELATED ACTIVI15 TIES WITH RUSSIA.

16 None of the funds appropriated pursuant to the au17 thorization in section 301 for Cooperative Threat Reduc18 tion programs may be obligated or expended for the pur19 pose of conducting with Russia any peacekeeping exercise

20 or other peacekeeping-related activity.

21 SEC. 1105. REVISION TO AUTHORITY FOR ASSISTANCE FOR

22 WEAPONS DESTRUCTION.

23 Section 211(b) of Public Law 102–228 (105 Stat.

24 1694) is amended by striking out ‘‘committed to’’ in the

25 matter preceding paragraph (1).
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1 SEC. 1106. PRIOR NOTICE TO CONGRESS OF OBLIGATION

2 OF FUNDS.

3 (a) ANNUAL REQUIREMENT.—(1) Not less than 15

4 days before any obligation of any funds appropriated for

5 any fiscal year for a program specified under section 1101

6 as a Cooperative Threat Reduction program, the Secretary

7 of Defense shall submit to the congressional committees

8 specified in paragraph (2) a report on that proposed obli9 gation for that program for that fiscal year.

10 (2) The congressional committees referred to in para11 graph (1) are the following:

12 (A) The Committee on Armed Services, the

13 Committee on Foreign Relations, and the Committee

14 on Appropriations of the Senate.

15 (B) The Committee on National Security, the

16 Committee on International Relations, and the Com17 mittee on Appropriations of the House of Represent18 atives.

19 (b) MATTERS TO BE SPECIFIED IN REPORTS.—Each

20 such report shall specify—

21 (1) the activities and forms of assistance for

22 which the Secretary of Defense plans to obligate

23 funds;

24 (2) the amount of the proposed obligation; and

25 (3) the projected involvement (if any) of any de26 partment or agency of the United States (in addition
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1 to the Department of Defense) and of the private

2 sector of the United States in the activities and

3 forms of assistance for which the Secretary of De4 fense plans to obligate such funds.

5 SEC. 1107. REPORT ON ACCOUNTING FOR UNITED STATES

6 ASSISTANCE.

7 (a) REPORT.—(1) The Secretary of Defense shall

8 submit to Congress an annual report on the efforts made

9 by the United States (including efforts through the use

10 of audits, examinations, and on-site inspections) to ensure

11 that assistance provided under Cooperative Threat Reduc12 tion programs is fully accounted for and that such assist13 ance is being used for its intended purposes.

14 (2) A report shall be submitted under this section not

15 later than January 31 of each year until the Cooperative

16 Threat Reduction programs are completed.

17 (b) INFORMATION TO BE INCLUDED.—Each report

18 under this section shall include the following:

19 (1) A list of cooperative threat reduction assist20 ance that has been provided before the date of the

21 report.

22 (2) A description of the current location of the

23 assistance provided and the current condition of

24 such assistance.
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1 (3) A determination of whether the assistance

2 has been used for its intended purpose.

3 (4) A description of the activities planned to be

4 carried out during the next fiscal year to ensure that

5 cooperative threat reduction assistance provided dur6 ing that fiscal year is fully accounted for and is used

7 for its intended purpose.

8 (c) COMPTROLLER GENERAL ASSESSMENT.—Not

9 later than 30 days after the date on which a report of

10 the Secretary under subsection (a) is submitted to Con11 gress, the Comptroller General of the United States shall

12 submit to Congress a report giving the Comptroller Gen13 eral’s assessment of the report and making any rec14 ommendations that the Comptroller General considers ap15 propriate.

16 SEC. 1108. LIMITATION ON COOPERATIVE THREAT REDUC17 TION PROGRAM RELATING TO OFFENSIVE BI18 OLOGICAL WEAPONS PROGRAM IN RUSSIA.

19 None of the funds appropriated pursuant to the au20 thorization in section 301 for Cooperative Threat Reduc21 tion programs may be obligated or expended for programs

22 or activities with Russia unless and until the President

23 submits to Congress a certification in writing that Russia

24 has terminated its offensive biological weapons program.
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1 TITLE XII—MATTERS RELATING

2 TO OTHER NATIONS

3 Subtitle A—Peacekeeping

4 Provisions

5 SEC. 1201. LIMITATION ON EXPENDITURE OF DEPARTMENT

6 OF DEFENSE FUNDS FOR UNITED STATES

7 FORCES PLACED UNDER UNITED NATIONS

8 COMMAND OR CONTROL.

9 (a) IN GENERAL.—(1) Chapter 20 of title 10, United

10 States Code, is amended by inserting after section 404 the

11 following new section:

12 ‘‘§ 405. Placement of United States forces under Unit13 ed Nations command or control: limita14 tion

15 ‘‘(a) LIMITATION.—Except as provided in subsections

16 (b) and (c), funds appropriated or otherwise made avail17 able for the Department of Defense may not be obligated

18 or expended for activities of any element of the Armed

19 Forces that after the date of the enactment of this section

20 is placed under United Nations command or control, as

21 defined in subsection (f).

22 ‘‘(b) EXCEPTION FOR PRESIDENTIAL CERTIFI23 CATION.—(1) Subsection (a) shall not apply in the case

24 of a proposed placement of an element of the Armed

25 Forces under United Nations command or control if the
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1 President, not less than 15 days before the date on which

2 such United Nations command or control is to become ef3 fective (or as provided in paragraph (2)), meets the re4 quirements of subsection (d).

5 ‘‘(2) If the President certifies to Congress that an

6 emergency exists that precludes the President from meet7 ing the requirements of subsection (d) 15 days before plac8 ing an element of the Armed Forces under United Nations

9 command or control, the President may place such forces

10 under such command or control and meet the require11 ments of subsection (d) in a timely manner, but in no

12 event later than 48 hours after such command or control

13 becomes effective.

14 ‘‘(c) ADDITIONAL EXCEPTIONS.—

15 ‘‘(1) EXCEPTION FOR AUTHORIZATION BY

16 LAW.—Subsection (a) shall not apply in the case of

17 a proposed placement of any element of the Armed

18 Forces under United Nations command or control if

19 the Congress specifically authorizes by law that par20 ticular placement of United States forces under

21 United Nations command or control.

22 ‘‘(2) EXCEPTION FOR NATO OPERATIONS.—

23 Subsection (a) shall not apply in the case of a pro24 posed placement of any element of the armed forces
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1 in an operation conducted by the North Atlantic

2 Treaty Organization.

3 ‘‘(d) PRESIDENTIAL CERTIFICATIONS.—The require4 ments referred to in subsection (b)(1) are that the Presi5 dent submit to Congress the following:

6 ‘‘(1) Certification by the President that—

7 ‘‘(A) such a United Nations command or

8 control arrangement is necessary to protect na9 tional security interests of the United States;

10 ‘‘(B) the commander of any unit of the

11 Armed Forces proposed for placement under

12 United Nations command or control will at all

13 times retain the right—

14 ‘‘(i) to report independently to supe15 rior United States military authorities; and

16 ‘‘(ii) to decline to comply with orders

17 judged by the commander to be illegal,

18 militarily imprudent, or beyond the man19 date of the mission to which the United

20 States agreed with the United Nations,

21 until such time as that commander receives

22 direction from superior United States mili23 tary authorities with respect to the orders

24 that the commander has declined to com25 ply with;
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1 ‘‘(C) any element of the Armed Forces

2 proposed for placement under United Nations

3 command or control will at all times remain

4 under United States administrative command

5 for such purposes as discipline and evaluation;

6 and

7 ‘‘(D) the United States will retain the au8 thority to withdraw any element of the Armed

9 Forces from the proposed operation at any time

10 and to take any action it considers necessary to

11 protect those forces if they are engaged.

12 ‘‘(2) A report setting forth the following:

13 ‘‘(A) A description of the national security

14 interests that require the placement of United

15 States forces under United Nations command

16 or control.

17 ‘‘(B) The mission of the United States

18 forces involved.

19 ‘‘(C) The expected size and composition of

20 the United States forces involved.

21 ‘‘(D) The incremental cost to the United

22 States of participation in the United Nations

23 operation by the United States forces which are

24 proposed to be placed under United Nations

25 command or control.
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1 ‘‘(E) The precise command and control re2 lationship between the United States forces in3 volved and the United Nations command struc4 ture.

5 ‘‘(F) The precise command and control re6 lationship between the United States forces in7 volved and the commander of the United States

8 unified command for the region in which those

9 United States forces are to operate.

10 ‘‘(G) The extent to which the United

11 States forces involved will rely on non-United

12 States forces for security and self-defense and

13 an assessment on the ability of those non-Unit14 ed States forces to provide adequate security to

15 the United States forces involved.

16 ‘‘(H) The timetable for complete with17 drawal of the United States forces involved.

18 ‘‘(e) CLASSIFICATION OF REPORT.—A report under

19 subsection (d) shall be submitted in unclassified form and,

20 if necessary, in classified form.

21 ‘‘(f) UNITED NATIONS COMMAND OR CONTROL.—

22 For purposes of this section, an element of the Armed

23 Forces shall be considered to be placed under United Na24 tions command or control if—
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1 ‘‘(1) that element is under the command or

2 operational control of an individual acting on behalf

3 of the United Nations for the purpose of inter4 national peacekeeping, peacemaking, peace-enforc5 ing, or similar activity that is authorized by the Se6 curity Council under chapter VI or VII of the Char7 ter of the United Nations; and

8 ‘‘(2) the senior military commander of the Unit9 ed Nations force or operation—

10 ‘‘(A) is a foreign national or is a citizen of

11 the United States who is not a United States

12 military officer serving on active duty; or

13 ‘‘(B) is a United States military officer

14 serving on active duty but—

15 ‘‘(i) that element of the armed forces

16 is under the command or operational con17 trol of a subordinate commander who is a

18 foreign national or a citizen of the United

19 States who is not a United States military

20 officer serving on active duty; and

21 ‘‘(ii) that senior military commander

22 does not have the authority—

23 ‘‘(I) to dismiss any subordinate

24 officer in the chain of command who

25 is exercising command or operational
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1 control over United States forces and

2 who is a foreign national or a citizen

3 of the United States who is not a

4 United States military officer serving

5 on active duty;

6 ‘‘(II) to establish rules of engage7 ment for United States forces in8 volved; and

9 ‘‘(III) to establish criteria gov10 erning the operational employment of

11 United States forces involved.

12 ‘‘(g) INTERPRETATION.—Nothing in this section may

13 be construed—

14 ‘‘(1) as authority for the President to use any

15 element of the armed forces in any operation;

16 ‘‘(2) as authority for the President to place any

17 element of the armed forces under the command or

18 operational control of a foreign national; or

19 ‘‘(3) as an unconstitutional infringement on the

20 authority of the President as commander-in-chief.’’.

21 (2) The table of sections at the beginning of sub22 chapter I of such chapter is amended by adding at the

23 end the following new item:

‘‘405. Placement of United States forces under United Nations command or

control: limitation.’’.
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1 (b) REPORT RELATING TO CONSTITUTIONALITY.—

2 No certification may be submitted by the President under

3 section 405(d)(1) of title 10, United States Code, as added

4 by subsection (a), until the President has submitted to the

5 Congress (after the date of the enactment of this Act) a

6 memorandum of legal points and authorities explaining

7 why the placement of elements of United States Armed

8 Forces under the command or operational control of a for9 eign national acting on behalf of the United Nations does

10 not violate the Constitution.

11 (c) EXCEPTION FOR ONGOING OPERATIONS IN MAC12 EDONIA AND CROATIA.—Section 405 of title 10, United

13 States Code, as added by subsection (a), does not apply

14 in the case of activities of the Armed Forces as part of

15 the United Nations force designated as the United Na16 tions Protection Force (UNPROFOR) that are carried

17 out—

18 (1) in Macedonia pursuant to United Nations

19 Security Council Resolution 795, adopted December

20 11, 1992, and subsequent reauthorization Resolu21 tions; or

22 (2) in Croatia pursuant to United Nations Se23 curity Council Resolution 743, adopted February 21,

24 1992, and subsequent reauthorization Resolutions.
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1 SEC. 1202. LIMITATION ON USE OF DEPARTMENT OF DE2 FENSE FUNDS FOR UNITED STATES SHARE

3 OF COSTS OF UNITED NATIONS PEACEKEEP4 ING ACTIVITIES.

5 (a) IN GENERAL.—(1) Chapter 20 of title 10, United

6 States Code, is amended by inserting after section 405,

7 as added by section 1201, the following new section:

8 ‘‘§ 406. Use of Department of Defense funds for Unit9 ed States share of costs of United Nations

10 peacekeeping activities: limitation

11 ‘‘(a) PROHIBITION ON USE OF FUNDS.—Funds avail12 able to the Department of Defense may not be used to

13 make a financial contribution (directly or through another

14 department or agency of the United States) to the United

15 Nations—

16 ‘‘(1) for the costs of a United Nations peace17 keeping activity; or

18 ‘‘(2) for any United States arrearage to the

19 United Nations.

20 ‘‘(b) APPLICATION OF PROHIBITION.—The prohibi21 tion in subsection (a) applies to voluntary contributions,

22 as well as to contributions pursuant to assessment by the

23 United Nations for the United States share of the costs

24 of a peacekeeping activity.’’.

25 (2) The table of sections at the beginning of such

26 chapter is amended by inserting after the item relating
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1 to section 405, as added by section 1201, the following

2 new item:

‘‘406. Use of Department of Defense funds for United States share of costs of

United Nations peacekeeping activities: limitation.’’.

3 (b) EFFECTIVE DATE.—Section 406 of title 10, Unit4 ed States Code, as added by subsection (a), shall take ef5 fect on October 1, 1995.

6 Subtitle B—Humanitarian

7 Assistance Programs

8 SEC. 1211. OVERSEAS HUMANITARIAN, DISASTER, AND

9 CIVIC AID PROGRAMS.

10 For purposes of section 301 and other provisions of

11 this Act, programs of the Department of Defense des12 ignated as Overseas Humanitarian, Disaster, and Civic

13 Aid (OHDACA) programs are the programs provided by

14 sections 401, 402, 404, 2547, and 2551 of title 10, United

15 States Code.

16 SEC. 1212. HUMANITARIAN ASSISTANCE.

17 Section 2551 of title 10, United States Code is

18 amended—

19 (1) by striking out subsections (b) and (c);

20 (2) by redesignating subsection (d) as sub21 section (b);

22 (3) by striking out subsection (e) and inserting

23 in lieu thereof the following:
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1 ‘‘(c) STATUS REPORTS.—(1) The Secretary of De2 fense shall submit to the congressional committees speci3 fied in subsection (f) an annual report on the provision

4 of humanitarian assistance pursuant to this section for the

5 prior fiscal year. The report shall be submitted each year

6 at the time of the budget submission by the President for

7 the next fiscal year.

8 ‘‘(2) Each report required by paragraph (1) shall

9 cover all provisions of law that authorize appropriations

10 for humanitarian assistance to be available from the De11 partment of Defense for the purposes of this section.

12 ‘‘(3) Each report under this subsection shall set forth

13 the following information regarding activities during the

14 previous fiscal year:

15 ‘‘(A) The total amount of funds obligated for

16 humanitarian relief under this section.

17 ‘‘(B) The number of scheduled and completed

18 transportation missions for purposes of providing

19 humanitarian assistance under this section.

20 ‘‘(C) A description of any transfer of excess

21 nonlethal supplies of the Department of Defense

22 made available for humanitarian relief purposes

23 under section 2547 of this title. The description

24 shall include the date of the transfer, the entity to
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1 whom the transfer is made, and the quantity of

2 items transferred.’’;

3 (4) by redesignating subsection (f) as sub4 section (d) and in that subsection striking out ‘‘the

5 Committees on’’ and all that follows through ‘‘House

6 of Representatives of the’’ and inserting in lieu

7 thereof ‘‘the congressional committees specified in

8 subsection (f) and the Committees on Appropriations

9 of the Senate and House of Representatives of the’’;

10 (5) by redesignating subsection (g) as sub11 section (e); and

12 (6) by adding at the end the following new sub13 section:

14 ‘‘(f) CONGRESSIONAL COMMITTEES.—The congres15 sional committees referred to in subsections (c)(1) and (d)

16 are the following:

17 ‘‘(1) The Committee on Armed Services and the

18 Committee on Foreign Relations of the Senate.

19 ‘‘(2) The Committee on National Security and

20 the Committee on International Relations of the

21 House of Representatives.’’.

22 SEC. 1213. LANDMINE CLEARANCE PROGRAM.

23 (a) INCLUSION IN GENERAL HUMANITARIAN ASSIST24 ANCE PROGRAM.—Subsection (e) of section 401 of title

25 10, United States Code, is amended—
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1 (1) by striking out ‘‘means—’’ and inserting in

2 lieu thereof ‘‘means:’’;

3 (2) by revising the first word in each of para4 graphs (1) through (4) so that the first letter of

5 such word is upper case;

6 (3) by striking out the semicolon at the end of

7 paragraphs (1) and (2) and inserting in lieu thereof

8 a period;

9 (4) by striking out ‘‘; and’’ at the end of para10 graph (3) and inserting in lieu thereof a period; and

11 (5) by adding at the end the following new

12 paragraph:

13 ‘‘(5) Detection and clearance of landmines, in14 cluding activities relating to the furnishing of edu15 cation, training, and technical assistance with re16 spect to the detection and clearance of landmines.’’.

17 (b) LIMITATION ON LANDMINE ASSISTANCE BY

18 MEMBERS OF ARMED FORCES.—Subsection (a) of such

19 section is amended by adding at the end the following new

20 paragraph:

21 ‘‘(4) The Secretary of Defense shall ensure that no

22 member of the armed forces, while providing assistance

23 under this section that is described in subsection (e)(5)—

24 ‘‘(A) engages in the physical detection, lifting,

25 or destroying of landmines (unless the member does
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1 so for the concurrent purpose of supporting a Unit2 ed States military operation); or

3 ‘‘(B) provides such assistance as part of a mili4 tary operation that does not involve the armed

5 forces.’’.

6 (c) REPEAL.—Section 1413 of the National Defense

7 Authorization Act for Fiscal Year 1995 (Public Law 103–

8 337; 108 Stat. 2913; 10 U.S.C. 401 note) is repealed.

9 Subtitle C—Other Matters

10 SEC. 1221. REVISION OF DEFINITION OF LANDMINE FOR

11 PURPOSES OF LANDMINE EXPORT MORATO12 RIUM.

13 Section 1423(d)(3) of the National Defense Author14 ization Act for Fiscal Year 1994 (Public Law 103–160;

15 107 Stat. 1831) is amended by striking out ‘‘by remote

16 control or’’ .

17 SEC. 1222. EXTENSION AND AMENDMENT OF

18 COUNTERPROLIFERATION AUTHORITIES.

19 (a) ONE-YEAR EXTENSION OF PROGRAM.—Section

20 1505 of the Weapons of Mass Destruction Control Act of

21 1992 (title XV of Public Law 102–484; 22 U.S.C. 5859a)

22 is amended—

23 (1) in subsection (a), by striking out ‘‘during

24 fiscal years 1994 and 1995’’;
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1 (2) in subsection (e)(1), by striking out ‘‘fiscal

2 years 1994 and 1995’’ and inserting in lieu thereof

3 ‘‘a fiscal year during which the authority of the Sec4 retary of Defense to provide assistance under this

5 section is in effect’’; and

6 (3) by adding at the end the following new sub7 section:

8 ‘‘(f) TERMINATION OF AUTHORITY.—The authority

9 of the Secretary of Defense to provide assistance under

10 this section terminates at the close of fiscal year 1996.’’.

11 (b) PROGRAM AUTHORITIES.—(1) Subsections (b)(2)

12 and (d)(3) of such section are amended by striking out

13 ‘‘the On-Site Inspection Agency’’ and inserting in lieu

14 thereof ‘‘the Department of Defense’’.

15 (2) Subsection (c)(3) of such section is amended by

16 striking out ‘‘will be counted’’ and all that follows and in17 serting in lieu thereof ‘‘will be counted as discretionary

18 spending in the national defense budget function (function

19 050).’’.

20 (c) AMOUNT OF ASSISTANCE.—Subsection (d) of

21 such section is amended—

22 (1) in paragraph (1)—

23 (A) by striking out ‘‘for fiscal year 1994’’

24 the first place it appears and all that follows

25 through the period at the end of the second
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1 sentence and inserting in lieu thereof ‘‘for any

2 fiscal year shall be derived from amounts made

3 available to the Department of Defense for that

4 fiscal year.’’; and

5 (B) by striking out ‘‘referred to in this

6 paragraph’’; and

7 (2) in paragraph (3)—

8 (A) by striking out ‘‘may not exceed’’ and

9 all that follows through ‘‘1995’’; and

10 (B) by inserting before the period at the

11 end the following: ‘‘, may not exceed

12 $25,000,000 for fiscal year 1994, $20,000,000

13 for fiscal year 1995, or $15,000,000 for fiscal

14 year 1996’’.

15 SEC. 1223. PROHIBITION ON USE OF FUNDS FOR ACTIVI16 TIES ASSOCIATED WITH THE UNITED STATES17 PEOPLE’S REPUBLIC OF CHINA JOINT DE18 FENSE CONVERSION COMMISSION.

19 Funds appropriated to the Department of Defense

20 for fiscal year 1996 may not be obligated or expended for

21 any activity associated with the United States-People’s

22 Republic of China Joint Defense Conversion Commission.
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1 SEC. 1224. DEFENSE EXPORT LOAN GUARANTEES.

2 (a) ESTABLISHMENT OF PROGRAM.—(1) Chapter

3 148 of title 10, United States Code, is amended by adding

4 at the end the following new subchapter:

5 ‘‘SUBCHAPTER VI—DEFENSE EXPORT LOAN

6 GUARANTEES

‘‘Sec.

‘‘2540. Establishment of loan guarantee program.

‘‘2540a. Transferability.

‘‘2540b. Limitations.

‘‘2540c. Fees charged and collected.

‘‘2540d. Definitions.

7 ‘‘§ 2540. Establishment of loan guarantee program

8 ‘‘(a) ESTABLISHMENT.—In order to meet the na9 tional security objectives in section 2501(a) of this title,

10 the Secretary of Defense shall establish a program under

11 which the Secretary may issue guarantees assuring a lend12 er against losses of principal or interest, or both principal

13 and interest, arising out of the financing of the sale or

14 long-term lease of defense articles, defense services, or de15 sign and construction services to a country referred to in

16 subsection (b).

17 ‘‘(b) COVERED COUNTRIES.—The authority under

18 subsection (a) applies with respect to the following coun19 tries:

20 ‘‘(1) A member nation of the North Atlantic

21 Treaty Organization (NATO).
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1 ‘‘(2) A country designated as of March 31,

2 1995, as a major non-NATO ally pursuant to sec3 tion 2350a(i)(3) of this title.

4 ‘‘(3) A country that was a member nation of

5 the Asia Pacific Economic Cooperation (APEC) as

6 of March 31, 1995.

7 ‘‘(c) AUTHORITY SUBJECT TO PROVISIONS OF AP8 PROPRIATION ACTS.—The Secretary may guarantee a

9 loan under this subchapter only to such extent or in such

10 amounts as may be provided in advance in appropriations

11 Acts.

12 ‘‘§ 2540a. Transferability

13 ‘‘A guarantee issued under this subchapter shall be

14 fully and freely transferable.

15 ‘‘§ 2540b. Limitations

16 ‘‘(a) TERMS AND CONDITIONS OF LOAN GUARAN17 TEES.—In issuing a guarantee under this subchapter for

18 a medium-term or long-term loan, the Secretary may not

19 offer terms and conditions more beneficial than those that

20 would be provided to the recipient by the Export-Import

21 Bank of the United States under similar circumstances

22 in conjunction with the provision of guarantees for

23 nondefense articles and services.

24 ‘‘(b) LOSSES ARISING FROM FRAUD OR MISREPRE25 SENTATION.—No payment may be made under a guaran-
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1 tee issued under this subchapter for a loss arising out of

2 fraud or misrepresentation for which the party seeking

3 payment is responsible.

4 ‘‘(c) NO RIGHT OF ACCELERATION.—The Secretary

5 of Defense may not accelerate any guaranteed loan or in6 crement, and may not pay any amount, in respect of a

7 guarantee issued under this subchapter, other than in ac8 cordance with the original payment terms of the loan.

9 ‘‘§ 2540c. Fees charged and collected

10 ‘‘(a) IN GENERAL.—The Secretary of Defense shall

11 charge a fee (known as ‘exposure fee’) for each guarantee

12 issued under this subchapter.

13 ‘‘(b) AMOUNT.—To the extent that the cost of the

14 loan guarantees under this subchapter is not otherwise

15 provided for in appropriations Acts, the fee imposed under

16 this section with respect to a loan guarantee shall be fixed

17 in an amount sufficient to meet potential liabilities of the

18 United States under the loan guarantee.

19 ‘‘(c) PAYMENT TERMS.—The fee for each guarantee

20 shall become due as the guarantee is issued. In the case

21 of a guarantee for a loan which is disbursed incrementally,

22 and for which the guarantee is correspondingly issued in23 crementally as portions of the loan are disbursed, the fee

24 shall be paid incrementally in proportion to the amount

25 of the guarantee that is issued.
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1 ‘‘§ 2540d. Definitions

2 ‘‘In this subchapter:

3 ‘‘(1) The terms ‘defense article’, ‘defense serv4 ices’, and ‘design and construction services’ have the

5 meanings given those terms in section 47 of the

6 Arms Export Control Act (22 U.S.C. 2794).

7 ‘‘(2) The term ‘cost’, with respect to a loan

8 guarantee, has the meaning given that term in sec9 tion 502 of the Congressional Budget and Impound10 ment Control Act of 1974 (2 U.S.C. 661a).’’.

11 (2) The table of subchapters at the beginning of such

12 chapter is amended by adding at the end the following

13 new item:

‘‘VI. Defense Export Loan Guarantees .................................................... 2540’’.

14 (b) REPORT.—Not later than two years after the date

15 of the enactment of this Act, the President shall submit

16 to Congress a report on the loan guarantee program estab17 lished pursuant to section 2540 of title 10, United States

18 Code, as added by subsection (a). The report shall in19 clude—

20 (1) an analysis of the costs and benefits of the

21 loan guarantee program; and

22 (2) any recommendations for modification of

23 the program that the President considers appro24 priate, including—
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1 (A) any recommended addition to the list

2 of countries for which a guarantee may be is3 sued under the program; and

4 (B) any proposed legislation necessary to

5 authorize a recommended modification.

6 SEC. 1225. ACCOUNTING FOR BURDENSHARING CONTRIBU7 TIONS.

8 (a) AUTHORITY TO MANAGE CONTRIBUTIONS IN

9 LOCAL CURRENCY, ETC.—Subsection (b) of section 2350j

10 of title 10, United States Code, is amended to read as

11 follows:

12 ‘‘(b) ACCOUNTING.—Contributions accepted under

13 subsection (a) which are not related to security assistance

14 may be accepted, managed, and expended in dollars or in

15 the currency of the host nation (or, in the case of a con16 tribution from a regional organization, in the currency in

17 which the contribution was provided). Any such contribu18 tion shall be placed in an account established for such pur19 pose and shall remain available until expended for the pur20 poses specified in subsection (c). The Secretary of Defense

21 shall establish a separate account for such purpose for

22 each country or regional organization from which such

23 contributions are accepted under subsection (a).’’.

24 (b) CONFORMING AMENDMENT.—Subsection (d) of

25 such section is amended by striking out ‘‘credited under
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1 subsection (b) to an appropriation account of the Depart2 ment of Defense’’ and inserting in lieu thereof ‘‘placed in

3 an account established under subsection (b)’’.

4 (c) TECHNICAL AMENDMENT.—Such section is fur5 ther amended—

6 (1) in subsection (e)(1), by striking out ‘‘a re7 port to the congressional defense committees’’ and

8 inserting in lieu thereof ‘‘to the congressional com9 mittees specified in subsection (g) a report’’; and

10 (2) by adding at the end the following new sub11 section:

12 ‘‘(g) CONGRESSIONAL COMMITTEES.—The congres13 sional committees referred to in subsection (e)(1) are—

14 ‘‘(1) the Committee on Armed Services and the

15 Committee on Appropriations of the Senate; and

16 ‘‘(2) the Committee on National Security and

17 the Committee on Appropriations of the House of

18 Representatives.’’.

19 SEC. 1226. AUTHORITY TO ACCEPT CONTRIBUTIONS FOR

20 EXPENSES OF RELOCATION WITHIN HOST NA21 TION OF UNITED STATES ARMED FORCES

22 OVERSEAS.

23 (a) IN GENERAL.—(1) Subchapter II of chapter 138

24 of title 10, United States Code, is amended by adding at

25 the end the following new section:
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1 ‘‘§ 2350k. Relocation within host nation of elements of

2 armed forces overseas

3 ‘‘(a) AUTHORITY TO ACCEPT CONTRIBUTIONS.—The

4 Secretary of Defense may accept contributions from any

5 nation because of or in support of the relocation of ele6 ments of the armed forces from or to any location within

7 that nation. Such contributions may be accepted in dollars

8 or in the currency of the host nation. Any such contribu9 tion shall be placed in an account established for such pur10 pose and shall remain available until expended for the pur11 poses specified in subsection (b). The Secretary shall es12 tablish a separate account for such purpose for each coun13 try from which such contributions are accepted.

14 ‘‘(b) USE OF CONTRIBUTIONS.—The Secretary may

15 use a contribution accepted under subsection (a) only for

16 payment of costs incurred in connection with the reloca17 tion concerning which the contribution was made. Those

18 costs include the following:

19 ‘‘(1) Design and construction services, including

20 development and review of statements of work, mas21 ter plans and designs, acquisition of construction,

22 and supervision and administration of contracts re23 lating thereto.

24 ‘‘(2) Transportation and movement services, in25 cluding packing, unpacking, storage, and transpor26 tation.
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1 ‘‘(3) Communications services, including instal2 lation and deinstallation of communications equip3 ment, transmission of messages and data, and rental

4 of transmission capability.

5 ‘‘(4) Supply and administration, including ac6 quisition of expendable office supplies, rental of of7 fice space, budgeting and accounting services, audit8 ing services, secretarial services, and translation

9 services.

10 ‘‘(5) Personnel costs, including salary, allow11 ances and overhead of employees whether full-time

12 or part-time, temporary or permanent (except for

13 military personnel), and travel and temporary duty

14 costs.

15 ‘‘(6) All other clearly identifiable expenses di16 rectly related to relocation.

17 ‘‘(c) METHOD OF CONTRIBUTION.—Contributions

18 may be accepted in any of the following forms:

19 ‘‘(1) Irrevocable letter of credit issued by a fi20 nancial institution acceptable to the Treasurer of the

21 United States.

22 ‘‘(2) Drawing rights on a commercial bank ac23 count established and funded by the host nation,

24 which account is blocked such that funds deposited
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1 cannot be withdrawn except by or with the approval

2 of the United States.

3 ‘‘(3) Cash, which shall be deposited in a sepa4 rate trust fund in the United States Treasury pend5 ing expenditure and which shall accrue interest in

6 accordance with section 9702 of title 31.

7 ‘‘(d) ANNUAL REPORT TO CONGRESS.—Not later

8 than 30 days after the end of each fiscal year, the Sec9 retary shall submit to Congress a report specifying—

10 ‘‘(1) the amount of the contributions accepted

11 by the Secretary during the preceding fiscal year

12 under subsection (a) and the purposes for which the

13 contributions were made; and

14 ‘‘(2) the amount of the contributions expended

15 by the Secretary during the preceding fiscal year

16 and the purposes for which the contributions were

17 expended.’’.

18 (2) The table of sections at the beginning of sub19 chapter II of chapter 138 of such title is amended by add20 ing at the end the following new item:

‘‘2350k. Relocation within host nation of elements of armed forces overseas.’’.

21 (b) EFFECTIVE DATE.—Section 2350k of title 10,

22 United States Code, as added by subsection (a), shall take

23 effect on October 1, 1995, and shall apply to contributions

24 for relocation of elements of the Armed Forces in or to

25 any nation received on or after such date.
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1 SEC. 1227. SENSE OF CONGRESS ON ABM TREATY VIOLA2 TIONS.

3 (a) FINDINGS.—The Congress finds the following:

4 (1) The 1972 Anti-Ballistic Missile Treaty pro5 hibits either party from deploying ballistic missile

6 early warning radars except at locations along the

7 periphery of its national territory and oriented out8 ward.

9 (2) The 1972 Anti-Ballistic Missile Treaty pro10 hibits either party from deploying an ABM system

11 to defend its national territory and from providing

12 a base for any such nationwide defense.

13 (3) Large phased-array radars were recognized

14 during negotiation of the Anti-Ballistic Missile Trea15 ty as the critical long lead-time element of a nation16 wide defense against ballistic missiles.

17 (4) In 1983 the United States discovered the

18 construction, in the interior of the Soviet Union near

19 the town of Krasnoyarsk, of a large phased-array

20 radar that was judged to be for ballistic missile early

21 warning and tracking.

22 (5) The Krasnoyarsk radar was certified by the

23 Reagan Administration and previous sessions of

24 Congress as an unequivocal violation by the Soviet

25 Union of the Anti-Ballistic Missile Treaty.
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1 (6) Retired Soviet General Y.V. Votintsev, Di2 rector of the Soviet National Air Defense Forces

3 from 1967 to 1985, has publicly stated that he was

4 directed by the Chief of the Soviet General staff to

5 locate the large phased-array radar at Krasnoyarsk

6 despite the recognition that its location would be a

7 clear violation of the ABM Treaty.

8 (7) General Votintsev has publicly stated that

9 Marshal D.F. Ustinov, Soviet Minister of Defense,

10 threatened to relieve from duty any Soviet officer

11 who continued to object to the construction of a

12 large-phased array radar at Krasnoyarsk.

13 (b) SENSE OF CONGRESS.—It is the sense of Con14 gress that—

15 (1) the government of the Soviet Union inten16 tionally violated its legal obligations under the 1972

17 Anti-Ballistic Missile Treaty in order to advance its

18 national security interests; and

19 (2) the United States should remain vigilant in

20 ensuring compliance by Russia with its arms control

21 obligations and should, when pursuing future arms

22 control agreements with Russia, bear in mind viola23 tions of arms control obligations by the Soviet

24 Union.
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1 SEC. 1228. REDUCTION OF UNITED STATES MILITARY

2 FORCES IN EUROPE.

3 (a) END STRENGTH REDUCTIONS FOR MILITARY

4 PERSONNEL IN EUROPE.—Notwithstanding section

5 1002(c)(1) of the National Defense Authorization Act,

6 1985 (22 U.S.C. 1928 note), but subject to subsection (d),

7 for each of fiscal years 1996, 1997, 1998, and 1999, the

8 Secretary of Defense shall reduce the end strength level

9 of members of the Armed Forces of the United States as10 signed to permanent duty ashore in European member na11 tions of the North Atlantic Treaty Organization (NATO)

12 in accordance with subsection (b).

13 (b) REDUCTION FORMULA.—

14 (1) APPLICATION OF FORMULA.—For each per15 centage point by which, as of the end of a fiscal

16 year, the allied contribution level determined under

17 paragraph (2) is less than the allied contribution

18 goal specified in subsection (c), the Secretary of De19 fense shall reduce the end strength level of members

20 of the Armed Forces of the United States assigned

21 to permanent duty ashore in European member na22 tions of NATO by 1,000 for the next fiscal year.

23 The reduction shall be made from the end strength

24 level in effect, pursuant to section 1002(c)(1) of the

25 National Defense Authorization Act, 1985 (22

26 U.S.C. 1928 note), and subsection (a) of this section
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1 (if applicable), for the fiscal year in which the allied

2 contribution level is less than the goal specified in

3 subsection (c).

4 (2) DETERMINATION OF ALLIED CONTRIBUTION

5 LEVEL.—To determine the allied contribution level

6 with respect to a fiscal year, the Secretary of De7 fense shall calculate the aggregate amount of

8 nonpersonnel costs for United States military instal9 lations in European member nations of NATO that

10 are assumed during that fiscal year by such nations,

11 except that the Secretary may consider only those

12 cash and in-kind contributions by such nations that

13 replace expenditures that would otherwise be made

14 by the Secretary using funds appropriated or other15 wise made available in defense appropriations Acts.

16 (c) ANNUAL ALLIED CONTRIBUTION GOALS.—

17 (1) GOALS.—In continuing efforts to enter into

18 revised host-nation agreements as described in the

19 provisions of law specified in paragraph (2), the

20 President is urged to seek to have European member

21 nations of NATO assume an increased share of the

22 nonpersonnel costs of United States military instal23 lations in those nations in accordance with the fol24 lowing timetable:
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1 (A) By September 30, 1996, 18.75 percent

2 of such costs should be assumed by those na3 tions.

4 (B) By September 30, 1997, 37.5 percent

5 of such costs should be assumed by those na6 tions.

7 (C) By September 30, 1998, 56.25 percent

8 of such costs should be assumed by those na9 tions.

10 (D) By September 30, 1999, 75 percent of

11 such costs should be assumed by those nations.

12 (2) SPECIFIED LAWS.—The provisions of law

13 referred to in paragraph (1) are—

14 (A) section 1301(e) of National Defense

15 Authorization Act for Fiscal Year 1993 (Public

16 Law 102–484; 106 Stat. 2545);

17 (B) section 1401(c) of the National De18 fense Authorization Act for Fiscal Year 1994

19 (Public Law 103–160; 107 Stat. 1824); and

20 (C) section 1304 of the National Defense

21 Authorization Act for Fiscal Year 1995 (Public

22 Law 103–337; 108 Stat. 2890),

23 (d) EXCEPTIONS.—

24 (1) MINIMUM END STRENGTH AUTHORITY.—

25 Notwithstanding reductions required pursuant to
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1 subsection (a), the Secretary of Defense may main2 tain an end strength of at least 25,000 members of

3 the Armed Forces of the United States assigned to

4 permanent duty ashore in European member nations

5 of NATO.

6 (2) WAIVER AUTHORITY.—The President may

7 waive operation of this section if the President de8 clares an emergency. The President shall imme9 diately inform Congress of any such waiver and the

10 reasons for the waiver.

11 (e) ALLOCATION OF FORCE REDUCTIONS.—To the

12 extent that there is a reduction in end strength level for

13 any of the Armed Forces in European member nations

14 of NATO in a fiscal year pursuant to subsection (a)—

15 (1) half of the reduction shall be used to make

16 a corresponding reduction in the authorized end

17 strength level for active duty personnel for such

18 Armed Force for that fiscal year; and

19 (2) half of the reduction shall be used to make

20 a corresponding increase in permanent assignments

21 or deployments of forces in the United States or

22 other nations (other than European member nations

23 of NATO) for each such Armed Force for that fiscal

24 year, as determined by the Secretary of Defense.
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1 (f) NONPERSONNEL COSTS DEFINED.—For purposes

2 of this section, the term ‘‘nonpersonnel costs’’, with re3 spect to United States military installations in European

4 member nations of NATO, means costs for those installa5 tions other than costs paid from military personnel ac6 counts.

7 SEC. 1229. SENSE OF CONGRESS CONCERNING UNILATERAL

8 IMPLEMENTATION OF START II TREATY.

9 (a) FINDINGS.—Congress finds that—

10 (1) the START II Treaty has not entered into

11 force; and

12 (2) the United States is nevertheless taking

13 unilateral steps to implement the reductions in stra14 tegic forces called for by that treaty.

15 (b) SENSE OF CONGRESS.—It is the sense of Con16 gress that the Secretary of Defense should not implement

17 any reduction in strategic forces that is called for in the

18 START II Treaty unless and until that treaty enters into

19 force.

20 (c) DEFINITIONS.—For purposes of this section, the

21 term ‘‘START II Treaty’’ means the Treaty between the

22 United States of America and the Russian Federation on

23 Further Reduction and Limitation of Strategic Offensive

24 Arms.
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1 SEC. 1230. SENSE OF THE CONGRESS REGARDING THE

2 CHEMICAL WEAPONS CONVENTION.

3 (a) FINDINGS.—The Congress finds that—

4 (1) events such as the March 1995 terrorist re5 lease of a chemical nerve agent in the Tokyo sub6 way, the threatened use of chemical weapons during

7 the 1991 Persian Gulf War, and the widespread use

8 of chemical weapons during the Iran-Iraq War of the

9 1980’s are all potent reminders of the menace posed

10 by chemical weapons, of the fact that the threat of

11 chemical weapons is unappreciated and not suffi12 ciently addressed, and of the need to outlaw the de13 velopment, production, and possession of chemical

14 weapons;

15 (2) the Convention on the Prohibition of the

16 Development, Production, Stockpiling, and Use of

17 Chemical Weapons and on Their Destruction (here18 after in this section referred to as the ‘‘Convention’’)

19 would establish a comprehensive ban on chemical

20 weapons, and its negotiation has enjoyed strong bi21 partisan congressional support, as well as the sup22 port of the last 6 administrations, both Republican

23 and Democratic;

24 (3) United States military authorities, including

25 Chairman of the Joint Chiefs of Staff General John

26 Shalikashvili, have stated that United States mili-
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1 tary forces will deter and respond to chemical weap2 ons threats with a robust chemical defense and an

3 overwhelming superior conventional response, as

4 demonstrated in the Persian Gulf War, and have

5 testified in support of the Convention’s ratification;

6 (4) the Congress in 1985 mandated the unilat7 eral destruction of the bulk of the chemical weapons

8 stockpile of the United States, and the Convention,

9 which requires participating states to destroy their

10 chemical arsenals and production facilities under

11 international supervision, would accelerate progress

12 toward the disarmament of chemical weapons in a

13 majority of the states believed to harbor chemical

14 weapons capabilities, as this majority is among the

15 Convention’s 159 signatories;

16 (5) the United States chemical industry was an

17 important partner during the negotiation of the Con18 vention, assisted in crafting a reasonable, effective

19 verification protocol, participated in both United

20 States and international trials to test provisions of

21 the Convention during its negotiation, and testified

22 in support of the Convention’s ratification;

23 (6) the United States intelligence community

24 has testified that the Convention will provide new

25 and important sources of information, through regu-
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1 lar data exchanges and routine and challenge inspec2 tions, to improve the ability of the United States to

3 assess the chemical weapons status in countries of

4 concern;

5 (7) the Convention will gradually isolate and

6 automatically penalize states that refuse to join by

7 preventing them from gaining access to dual-use

8 chemicals and creating a basis for monitoring illegal

9 diversions of those materials;

10 (8) the Convention has not entered into force

11 for lack of the requisite number of ratifications;

12 (9) the United States played a leading role in

13 drafting the Convention, and, as a global leader,

14 must remain at the helm of this effort to deter fur15 ther proliferation of chemical weapons and provide

16 the legal framework that will minimize the threat

17 posed by chemical weapons;

18 (10) Russia has signed the Convention, but has

19 not yet ratified it;

20 (11) there have been reports by Russian sources

21 of continued Russian production and testing of

22 chemical weapons, including a statement by a

23 spokesman of the Russian Ministry of Defense on

24 December 5, 1994, that ‘‘We cannot say that all
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1 chemical weapons production and testing has

2 stopped altogether.’’; and

3 (12) the Convention will impose a legally bind4 ing obligation on Russia and other nations that pos5 sess chemical weapons to cease offensive chemical

6 weapons activities and to destroy their chemical

7 weapons stockpiles and production facilities.

8 (b) SENSE OF CONGRESS.—It is the sense of the

9 Congress that—

10 (1) the United States should signify its commit11 ment to reducing the threat posed by chemical weap12 ons by promptly joining the 28 other nations that

13 have ratified the Convention;

14 (2) both Houses of Congress should further

15 demonstrate United States preparedness to adopt

16 the Convention by acting expeditiously to pass the

17 required implementing legislation as soon as the

18 Senate gives its advice and consent to the ratifica19 tion of the Convention;

20 (3) both Houses of Congress should continue to

21 lend their full support for the indefinite future to

22 programs that maintain, as the Convention allows

23 and monitors, United States defensive preparedness

24 against chemical weapons;
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1 (4) the United States must be prepared to exer2 cise fully its rights under the Convention, including

3 the request of challenge inspections when warranted,

4 and to exercise leadership in pursuing punitive

5 measures against violators of the Convention, when

6 warranted;

7 (5) the United States should strongly encourage

8 full implementation at the earliest possible date of

9 the terms and conditions of the United States - Rus10 sia bilateral chemical weapons destruction agreement

11 signed in 1990;

12 (6) understanding that Western assistance

13 would be helpful to a successful Russian chemical

14 weapons destruction program, the United States

15 should encourage Russia to ratify promptly the Con16 vention and implement a plan that will ensure full

17 compliance with the Convention, including the de18 struction of chemical weapons stockpiles in accord19 ance with the Convention’s time lines; and

20 (7) the United States should seek to encourage

21 other nations to ratify promptly the Convention and

22 to implement faithfully all its terms and conditions.
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1 DIVISION B—MILITARY CON2 STRUCTION AUTHORIZA3 TIONS

4 SEC. 2001. SHORT TITLE.

5 This division may be cited as the ‘‘Military Construc6 tion Authorization Act for Fiscal Year 1996’’.

7 TITLE XXI—ARMY

8 SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND

9 ACQUISITION PROJECTS.

10 (a) INSIDE THE UNITED STATES.—Using amounts

11 appropriated pursuant to the authorization of appropria12 tions in section 2104(a)(1), the Secretary of the Army

13 may acquire real property and carry out military construc14 tion projects for the installations and locations inside the

15 United States, and in the amounts, set forth in the follow16 ing table:

Army: Inside the United States

State Installation or location Amount

Alabama ............................ Fort Rucker ............................................... $5,900,000

Redstone Arsenal ....................................... $5,000,000

Arizona ............................. Fort Huachuca .......................................... $18,550,000

California .......................... Fort Irwin .................................................. $25,500,000

Presidio of San Francisco ......................... $3,000,000

Colorado ............................ Fort Carson ............................................... $30,850,000

District of Columbia ......... Fort McNair .............................................. $13,500,000

Georgia ............................. Fort Benning ............................................. $37,900,000

Fort Gordon .............................................. $5,750,000

Fort Stewart .............................................. $8,400,000

Hawaii .............................. Schofield Barracks .................................... $15,000,000

Kentucky .......................... Fort Knox .................................................. $5,600,000

Missouri ............................ Fort Leonard Wood ................................... $3,900,000

New Jersey ....................... Picatinny Arsenal ...................................... $5,500,000
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Army: Inside the United States—Continued

State Installation or location Amount

New Mexico ...................... White Sands Missile Range ....................... $2,050,000

New York .......................... Fort Drum ................................................. $11,450,000

United States Military Academy ............... $8,300,000

Watervliet Arsenal ..................................... $680,000

North Carolina ................. Fort Bragg ................................................ $29,700,000

Oklahoma .......................... Fort Sill ..................................................... $14,300,000

South Carolina ................. Naval Weapons Station, Charleston .......... $25,700,000

Fort Jackson ............................................. $32,000,000

Texas ................................ Fort Hood .................................................. $32,500,000

Fort Bliss .................................................. $56,900,000

Fort Sam Houston .................................... $7,000,000

Virginia ............................. Fort Eustis ................................................ $16,400,000

Fort Myer .................................................. $17,000,000

Washington ....................... Fort Lewis ................................................. $32,100,000

CONUS Classified ............ Classified Location .................................... $1,900,000

Total: ................................................. $472,330,000

1 (b) OUTSIDE THE UNITED STATES.—Using amounts

2 appropriated pursuant to the authorization of appropria3 tions in section 2104(a)(2), the Secretary of the Army

4 may acquire real property and carry out military construc5 tion projects for the locations outside the United States,

6 and in the amounts, set forth in the following table:

Army: Outside the United States

Country Installation or location Amount

Korea .................................... Camp Casey ........................................... $4,150,000

Camp Hovey ........................................... $13,500,000

Camp Pelham ......................................... $5,600,000

Camp Stanley ......................................... $6,800,000

Yongsan ................................................. $1,450,000

Overseas Classified ............... Classified Location ................................. $48,000,000

Total: .............................................. $79,500,000
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1 SEC. 2102. FAMILY HOUSING.

2 (a) CONSTRUCTION AND ACQUISITION.—Using

3 amounts appropriated pursuant to the authorization of ap4 propriations in section 2104(a)(5)(A), the Secretary of the

5 Army may construct or acquire family housing units (in6 cluding land acquisition) at the installations, for the pur7 poses, and in the amounts set forth in the following table:

Army: Family Housing

State Installation Purpose Amount

Alabama ................... Redstone Arsenal ......... 118 units ................. $12,000,000

Kentucky .................. Fort Knox .................... 262 units ................. $19,000,000

New York ................. United States Military

Academy, West Point 119 units ................. $16,500,000

Virginia .................... Fort Lee ....................... 135 units ................. $19,500,000

Washington .............. Fort Lewis ................... 84 units ................... $10,800,000

Total: ............... $77,800,000

8 (b) PLANNING AND DESIGN.—Using amounts appro9 priated pursuant to the authorization of appropriations in

10 section 2104(a)(5)(A), the Secretary of the Army may

11 carry out architectural and engineering services and con12 struction design activities with respect to the construction

13 or improvement of family housing units in an amount not

14 to exceed $2,000,000.

15 SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING

16 UNITS.

17 Subject to section 2825 of title 10, United States

18 Code, and using amounts appropriated pursuant to the

19 authorization of appropriations in section 2104(a)(5)(A),
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1 the Secretary of the Army may improve existing military

2 family housing in an amount not to exceed $46,600,000.

3 SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

4 (a) IN GENERAL.—Funds are hereby authorized to

5 be appropriated for fiscal years beginning after September

6 30, 1995, for military construction, land acquisition, and

7 military family housing functions of the Department of the

8 Army in the total amount of $2,167,190,000 as follows:

9 (1) For military construction projects inside the

10 United States authorized by section 2101(a),

11 $472,330,000.

12 (2) For military construction projects outside

13 the United States authorized by section 2101(b),

14 $79,500,000.

15 (3) For unspecified minor military construction

16 projects authorized by section 2805 of title 10, Unit17 ed States Code, $9,000,000.

18 (4) For architectural and engineering services

19 and construction design under section 2807 of title

20 10, United States Code, $70,778,000.

21 (5) For military family housing functions:

22 (A) For construction and acquisition, plan23 ning and design, and improvements of military

24 family housing and facilities, $126,400,000.
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1 (B) For support of military family housing

2 (including the functions described in section

3 2833 of title 10, United States Code),

4 $1,333,596,000.

5 (6) For the Homeowners Assistance Program,

6 as authorized by section 2832 of title 10, United

7 States Code, $75,586,000, to remain available until

8 expended.

9 (b) LIMITATION ON TOTAL COST OF CONSTRUCTION

10 PROJECTS.—Notwithstanding the cost variations author11 ized by section 2853 of title 10, United States Code, and

12 any other cost variation authorized by law, the total cost

13 of all projects carried out under section 2101 of this Act

14 may not exceed the total amount authorized to be appro15 priated under paragraphs (1) and (2) of subsection (a).

16 TITLE XXII—NAVY

17 SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND

18 ACQUISITION PROJECTS.

19 (a) INSIDE THE UNITED STATES.—Using amounts

20 appropriated pursuant to the authorization of appropria21 tions in section 2204(a)(1), the Secretary of the Navy may

22 acquire real property and carry out military construction

23 projects for the installations and locations inside the Unit24 ed States, and in the amounts, set forth in the following

25 table:
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Navy: Inside the United States

State Installation or location Amount

California .......................... Marine Corps Air-Ground Combat Center,

Twentynine Palms ................................. $2,490,000

Marine Corps Base, Camp Pendleton ....... $27,584,000

Nav Com Control & Ocean Sur Cen

RDT&E Div, San Diego ........................ $3,170,000

Naval Air Station, Lemoore ...................... $7,600,000

Naval Air Station, North Island ............... $99,150,000

Naval Air Warfare Center Weapons Division, China Lake ................................... $3,700,000

Naval Air Warfare Center Weapons Division, Point Mugu ................................... $1,300,000

Naval Construction Batallion Center, Port

Hueneme ................................................ $16,700,000

Naval Station, San Diego .......................... $19,960,000

Florida .............................. Naval School Explosive Ordinance Disposal, Eglin Air Force Base .................. $16,150,000

Naval Technical Training Center, Corry

Station, Pensacola ................................. $2,565,000

Georgia ............................. Strategic Weapons Facility, Atlantic,

Kings Bay .............................................. $2,450,000

Marine Corps Logistics Base, Albany ....... $1,300,000

Hawaii .............................. Intelligence Center Pacific, Pearl Harbor . $2,200,000

Naval Com & Telecoms Area MASTSTA

EASTPAC, Honolulu ............................ $1,980,000

Naval Submarine Base, Pearl Harbor ...... $22,500,000

Illinois ............................... Naval Training Center, Great Lakes ........ $12,440,000

Indiana ............................. Crane Naval Surface Warfare Center ....... $3,300,000

Maryland .......................... Naval Academy, Annapolis ........................ $3,600,000

Various Maryland Locations ..................... $1,200,000

New Jersey ....................... Naval Air Warfare Center Aircraft Division, Lakehurst ...................................... $1,700,000

North Carolina ................. Marine Corps Air Station, Cherry Point ... $11,430,000

Marine Corps Air Station, New River ....... $14,650,000

Marine Corps Base, Camp LeJeune ......... $59,300,000

Pennsylvania ..................... Philadelphia Naval Shipyard ..................... $6,000,000

South Carolina ................. Marine Corps Air Station, Beaufort ......... $15,000,000

Texas ................................ Naval Air Station, Corpus Christi ............ $4,400,000

Naval Air Station, Kingsville .................... $2,710,000

Naval Station, Ingleside ............................ $2,640,000

Virginia ............................. Fleet and Industrial Supply Center, Williamsburg ............................................... $8,390,000

Marine Corps Combat Development Command, Quantico ..................................... $3,500,000

Naval Hospital, Portsmouth ...................... $9,500,000

Naval Station, Norfolk .............................. $28,580,000

Naval Weapons Station, Yorktown ........... $1,300,000

Washington ....................... Naval Undersea Warfare Center Division,

Keyport .................................................. $5,300,000

Puget Sound Naval Shipyard, Bremerton $19,870,000

Total: ................................................. $445,609,000
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1 (b) OUTSIDE THE UNITED STATES.—Using amounts

2 appropriated pursuant to the authorization of appropria3 tions in section 2204(a)(2), the Secretary of the Navy may

4 acquire real property and carry out military construction

5 projects for the installations and locations outside the

6 United States, and in the amounts, set forth in the follow7 ing table:

Navy: Outside the United States

Country Installation or location Amount

Guam ................................ Naval Com & Telecoms Area MASTSTA

WESTPAC ............................................ $2,250,000

Navy Public Works Center, Guam ............ $16,180,000

Italy .................................. Naval Air Station, Sigonella ...................... $12,170,000

Naval Support Activity, Naples ................. $24,950,000

Puerto Rico ....................... Naval Security Group Activity, Sabana

Seca ....................................................... $2,200,000

Naval Station, Roosevelt Roads ................ $11,500,000

Total .................................................. $69,250,000

8 SEC. 2202. FAMILY HOUSING.

9 (a) CONSTRUCTION AND ACQUISITION.—Using

10 amounts appropriated pursuant to the authorization of ap11 propriations in section 2204(a)(5)(A), the Secretary of the

12 Navy may construct or acquire family housing units (in13 cluding land acquisition) at the installations, for the pur14 poses, and in the amounts set forth in the following table:

Navy: Family Housing

State Installation Purpose Amount

California ................. Marine Corps Base,

Camp Pendleton ....... 205 units ................. $30,080,000

Marine Corps Base,

Camp Pendleton ....... Community Center .. $1,438,000

Marine Corps Base,

Camp Pendleton ....... Housing Office ........ $707,000
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Navy: Family Housing—Continued

State Installation Purpose Amount

Naval Air Station,

Lemoore ................... 240 units ................. $34,900,000

Pacific Missile Test

Center, Point Mugu . Housing Office ........ $1,020,000

Public Works Center,

San Diego ................. 346 units ................. $49,310,000

Hawaii ...................... Naval Complex, Oahu .. 252 units ................. $48,400,000

Maryland .................. Naval Air Test Center,

Patuxent River ......... Warehouse ............... $890,000

US Naval Academy,

Annapolis .................. Housing Office ........ $800,000

North Carolina ......... Marine Corps Air Station, Cherry Point .... Community Center .. $1,003,000

Pennsylvania ............ Navy Ships Parts Control Center, Mechanicsburg ...................... Housing Office ........ $300,000

Puerto Rico .............. Naval Station, Roosevelt Roads ............. Housing Office ........ $710,000

Virginia .................... Naval Surface Warfare

Center, Dahlgren ...... Housing Office ........ $520,000

Public Works Center,

Norfolk ..................... 320 units ................. $42,500,000

Public Works Center,

Norfolk ..................... Housing Office ........ $1,390,000

Total: ............... $230,752,000

1 (b) PLANNING AND DESIGN.—Using amounts appro2 priated pursuant to the authorization of appropriations in

3 section 2204(a)(5)(A), the Secretary of the Navy may

4 carry out architectural and engineering services and con5 struction design activities with respect to the construction

6 or improvement of military family housing units in an

7 amount not to exceed $24,390,000.

8 SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING

9 UNITS.

10 Subject to section 2825 of title 10, United States

11 Code, and using amounts appropriated pursuant to the
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1 authorization of appropriations in section 2204(a)(5)(A),

2 the Secretary of the Navy may improve existing military

3 family housing units in an amount not to exceed

4 $292,931,000.

5 SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

6 (a) IN GENERAL.—Funds are hereby authorized to

7 be appropriated for fiscal years beginning after September

8 30, 1994, for military construction, land acquisition, and

9 military family housing functions of the Department of the

10 Navy in the total amount of $2,164,861,000 as follows:

11 (1) For military construction projects inside the

12 United States authorized by section 2201(a),

13 $445,609,000.

14 (2) For military construction projects outside

15 the United States authorized by section 2201(b),

16 $69,250,000.

17 (3) For unspecified minor construction projects

18 authorized by section 2805 of title 10, United States

19 Code, $7,200,000.

20 (4) For architectural and engineering services

21 and construction design under section 2807 of title

22 10, United States Code, $66,184,000.

23 (5) For military family housing functions:
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1 (A) For construction and acquisition, plan2 ning and design, and improvement of military

3 family housing and facilities, $531,289,000.

4 (B) For support of military housing (in5 cluding functions described in section 2833 of

6 title 10, United States Code), $1,045,329,000.

7 (b) LIMITATION ON TOTAL COST OF CONSTRUCTION

8 PROJECTS.—Notwithstanding the cost variations author9 ized by section 2853 of title 10, United States Code, and

10 any other cost variation authorized by law, the total cost

11 of all projects carried out under section 2201 of this Act

12 may not exceed the total amount authorized to be appro13 priated under paragraphs (1) and (2) of subsection (a).

14 TITLE XXIII—AIR FORCE

15 SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND

16 LAND ACQUISITION PROJECTS.

17 (a) INSIDE THE UNITED STATES.—Using amounts

18 appropriated pursuant to the authorization of appropria19 tions in section 2304(a)(1), the Secretary of the Air Force

20 may acquire real property and carry out military construc21 tion projects for the installations and locations inside the

22 United States, and in the amounts, set forth in the follow23 ing table:

Air Force: Inside the United States

State Installation or location Amount

Alabama ............................ Maxwell Air Force Base ............................ $3,700,000
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Air Force: Inside the United States—Continued

State Installation or location Amount

Alaska ............................... Eielson Air Force Base ............................. $3,850,000

Elmendorf Air Force Base ........................ $9,100,000

Tin City Long Range RADAR Site .......... $2,500,000

Arizona ............................. Davis-Monthan Air Force Base ................ $4,800,000

Luke Air Force Base ................................. $5,200,000

Arkansas ........................... Little Rock Air Force Base ....................... $2,500,000

California .......................... Beale Air Force Base ................................ $7,500,000

Edwards Air Force Base ........................... $33,800,000

Travis Air Force Base ............................... $26,700,000

Vandenberg Air Force Base ...................... $6,000,000

Colorado ............................ Buckley Air National Guard Base ............ $5,500,000

Peterson Air Force Base ........................... $4,390,000

US Air Force Academy ............................. $12,874,000

Delaware ........................... Dover Air Force Base ............................... $5,500,000

District of Columbia ......... Bolling Air Force Base ............................. $12,100,000

Florida .............................. Cape Canaveral Air Force Station ............ $1,600,000

Eglin Air Force Base ................................ $13,500,000

Tyndall Air Force Base ............................. $1,200,000

Georgia ............................. Moody Air Force Base .............................. $19,190,000

Robins Air Force Base .............................. $6,900,000

Hawaii .............................. Hickam Air Force Base ............................ $10,700,000

Idaho ................................. Mountain Home Air Force Base ............... $18,650,000

Illinois ............................... Scott Air Force Base ................................. $12,700,000

Kansas .............................. McConnell Air Force Base ........................ $15,950,000

Louisiana .......................... Barksdale Air Force Base ......................... $2,500,000

Maryland .......................... Andrews Air Force Base ........................... $12,886,000

Mississippi ........................ Columbus Air Force Base ......................... $1,150,000

Keesler Air Force Base ............................. $14,800,000

Missouri ............................ Whiteman Air Force Base ......................... $24,600,000

Nevada .............................. Nellis Air Force Base ................................ $10,500,000

New Jersey ....................... McGuire Air Force Base ........................... $21,500,000

New Mexico ...................... Cannon Air Force Base ............................. $13,420,000

Kirtland Air Force Base ........................... $9,156,000

North Carolina ................. Pope Air Force Base ................................. $8,250,000

Seymour Johnson Air Force Base ............ $7,530,000

North Dakota ................... Grand Forks Air Force Base .................... $14,800,000

Minot Air Force Base ................................ $1,550,000

Ohio .................................. Wright Patterson Air Force Base ............. $4,100,000

Oklahoma .......................... Altus Air Force Base ................................ $5,200,000

Tinker Air Force Base .............................. $5,100,000

South Carolina ................. Charleston Air Force Base ........................ $12,500,000

Shaw Air Force Base ................................ $1,300,000

Tennessee ......................... Arnold Air Force Base .............................. $5,000,000

Texas ................................ Dyess Air Force Base ............................... $5,400,000

Goodfellow Air Force Base ........................ $1,000,000

Kelly Air Force Base ................................. $3,244,000

Laughlin Air Force Base ........................... $1,400,000

Randolph Air Force Base .......................... $3,100,000

Reese Air Force Base ................................ $1,200,000
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Air Force: Inside the United States—Continued

State Installation or location Amount

Sheppard Air Force Base .......................... $1,500,000

Virginia ............................. Langley Air Force Base ............................ $1,000,000

Washington ....................... Fairchild Air Force Base .......................... $15,700,000

McChord Air Force Base .......................... $9,900,000

Wyoming ........................... F.E. Warren Air Force Base .................... $13,000,000

CONUS Classified ............ Classified Location .................................... $700,000

Total: ................................................. $479,390,000

1 (b) OUTSIDE THE UNITED STATES.—Using amounts

2 appropriated pursuant to the authorization of appropria3 tions in section 2304(a)(2), the Secretary of the Air Force

4 may acquire real property and may carry out military con5 struction projects for the installations and locations out6 side the United States, and in the amounts, set forth in

7 the following table:

Air Force: Outside the United States

Country Installation or location Amount

Germany ........................... Spangdahlem Air Base .............................. $8,380,000

Vogelweh Annex ........................................ 2,600,000

Greece ............................... Araxos Radio Relay Site ........................... 1,950,000

Italy .................................. Aviano Air Base ........................................ 2,350,000

Ghedi Radio Relay Site ............................. 1,450,000

Turkey .............................. Ankara Air Station .................................... 7,000,000

Incirlik Air Base ........................................ 4,500,000

United Kingdom ............... Lakenheath Royal Air Force Base ............ 1,820,000

Mildenhall Royal Air Force Base .............. 2,250,000

Overseas Classified ........... Classified Location .................................... 17,100,000

Total: ................................................. $49,400,000

8 SEC. 2302. FAMILY HOUSING.

9 (a) CONSTRUCTION AND ACQUISITION.—Using

10 amounts appropriated pursuant to the authorization of ap-
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1 propriations in section 2304(a)(5)(A), the Secretary of the

2 Air Force may construct or acquire family housing units

3 (including land acquisition) at the installations, for the

4 purposes, and in the amounts set forth in the following

5 table:

Air Force: Family Housing

State/Country Installation Purpose Amount

Alaska ...................... Elmendorf Air Force

Base ......................... Housing Office/

Maintenance Facility ..................... $3,000,000

Arizona ..................... Davis-Monthan Air

Force Base ............... 80 units ................... 9,498,000

Arkansas .................. Little Rock Air Force

Base ......................... Replace 1 General

Officer Quarters .. 210,000

California ................. Beale Air Force 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 Officer Quarter ........................ 513,000

Guam ........................ Andersen Air Force

Base ......................... Housing Maintenance Facility ...... 1,700,000

Idaho ........................ Mountain Home Air

Force Base ............... Housing Management Facility ....... 844,000

Kansas ..................... McConnell Air Force

Base ......................... 39 units ................... 5,193,000

Louisiana ................. Barksdale Air Force

Base ......................... 62 units ................... 10,299,000
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Air Force: Family Housing—Continued

State/Country Installation Purpose Amount

Massachusetts .......... Hanscom Air Force

Base ......................... 32 units ................... 4,900,000

Mississippi ................ Keesler Air Force Base 98 units ................... 9,300,000

Missouri ................... Whiteman Air Force

Base ......................... 72 units ................... 9,948,000

Nevada ..................... Nellis Air Force Base .. 143 Units ................ 22,357,000

New Mexico .............. Holloman Air Force

Base ......................... 1 General Officer

Quarters .............. 225,000

Kirtland Air Force

Base ......................... 105 units ................. 11,000,000

North Carolina ......... Pope Air Force Base .... 104 units ................. 9,984,000

Seymour Johnson Air

Force Base ............... 1 General Officer

Quarters .............. 204,000

South Carolina ......... Shaw Air Force Base ... Housing Maintenance Facility ...... 715,000

Texas ........................ Dyess Air Force Base .. Housing Maintenance Facility ...... 580,000

Lackland Air Force

Base ......................... 67 units ................... 6,200,000

Sheppard Air Force

Base ......................... Management Office . 500,000

Sheppard Air Force

Base ......................... Housing Maintenance Facility ...... 600,000

Turkey ...................... Incirlik Air Base .......... 150 units ................. 10,146,000

Washington .............. McChord Air Force

Base ......................... 50 units ................... 9,504,000

Total: ............... $194,555,000

1 (b) PLANNING AND DESIGN.—Using amounts appro2 priated pursuant to the authorization of appropriations in

3 section 2304(a)(5)(A), the Secretary of the Air Force may

4 carry out architectural and engineering services and con5 struction design activities with respect to the construction

6 or improvement of military family housing units in an

7 amount not to exceed $8,989,000.
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1 SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING

2 UNITS.

3 Subject to section 2825 of title 10, United States

4 Code, and using amounts appropriated pursuant to the

5 authorization of appropriations in section 2304(a)(5)(A),

6 the Secretary of the Air Force may improve existing mili7 tary family housing units in an amount not to exceed

8 $90,959,000.

9 SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR

10 FORCE.

11 (a) IN GENERAL.—Funds are hereby authorized to

12 be appropriated for fiscal years beginning after September

13 30, 1995, for military construction, land acquisition, and

14 military family housing functions of the Department of the

15 Air Force in the total amount of $1,727,557,000 as fol16 lows:

17 (1) For military construction projects inside the

18 United States authorized by section 2301(a),

19 $479,390,000.

20 (2) For military construction projects outside

21 the United States authorized by section 2301(b),

22 $49,400,000.

23 (3) For unspecified minor construction projects

24 authorized by section 2805 of title 10, United States

25 Code, $9,030,000.
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1 (4) For architectural and engineering services

2 and construction design under section 2807 of title

3 10, United States Code, $49,021,000.

4 (5) For military housing functions:

5 (A) For construction and acquisition, plan6 ning and design and improvement of military

7 family housing and facilities, $294,503,000.

8 (B) For support of military family housing

9 (including the functions described in section

10 2833 of title 10, United States Code),

11 $846,213,000.

12 (b) LIMITATION ON TOTAL COST OF CONSTRUCTION

13 PROJECTS.—Notwithstanding the cost variations author14 ized by section 2853 of title 10, United States Code, and

15 any other cost variation authorized by law, the total cost

16 of all projects carried out under section 2301 of this Act

17 may not exceed the total amount authorized to be appro18 priated under paragraphs (1) and (2) of subsection (a).

19 SEC. 2305. RETENTION OF ACCRUED INTEREST ON FUNDS

20 DEPOSITED FOR CONSTRUCTION OF FAMILY

21 HOUSING, SCOTT AIR FORCE BASE, ILLINOIS.

22 (a) RETENTION OF INTEREST.—Section 2310 of the

23 Military Construction Authorization Act for Fiscal Year

24 1994 (division B of Public Law 103–160; 107 Stat. 1874)

25 is amended—
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1 (1) by redesignating subsection (b) as sub2 section (c); and

3 (2) by inserting after subsection (a) the follow4 ing new subsection:

5 ‘‘(b) RETENTION OF INTEREST.—Interest accrued on

6 the funds transferred to the County pursuant to sub7 section (a) shall be retained in the same account as the

8 transferred funds and shall be available to the County for

9 the same purpose as the transferred funds.’’.

10 (b) LIMITATION ON UNITS CONSTRUCTED.—Sub11 section (c) of such section, as redesignated by subsection

12 (a)(1), is amended by adding at the end the following new

13 sentence: ‘‘The number of units constructed using the

14 transferred funds (and interest accrued on these funds)

15 may not exceed the number of units of military family

16 housing authorized for Scott Air Force Base, Illinois, in

17 section 2302(a) of the Military Construction Authorization

18 Act for Fiscal Year 1993 (division B of Public Law 102–

19 484; 106 Stat. 2595).’’.

20 (c) EFFECT OF COMPLETION OF CONSTRUCTION.—

21 Such section is further amended by adding at the end the

22 following new subsection:

23 ‘‘(d) COMPLETION OF CONSTRUCTION.—Upon the

24 completion of the construction authorized by this section,

25 all funds remaining from the funds transferred pursuant
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1 to subsection (a) and the interest accrued on these funds

2 shall be deposited in the general fund of the Treasury of

3 the United States.’’.

4 TITLE XXIV—DEFENSE

5 AGENCIES

6 SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUC7 TION AND LAND ACQUISITION PROJECTS.

8 (a) INSIDE THE UNITED STATES.—Using amounts

9 appropriated pursuant to the authorization of appropria10 tions in section 2405(a)(1), and, in the case of the project

11 described in section 2405(b)(2), other amounts appro12 priated pursuant to authorizations enacted after this Act

13 for that project, the Secretary of Defense may acquire real

14 property and carry out military construction projects for

15 the installations and locations inside the United States,

16 and in the amounts, set forth in the following table:

Defense Agencies: Inside the United States

Agency/State Installation or location Amount

Ballistic Missile Defense Organization

Texas ................................ Fort Bliss .................................................. $13,600,000

Defense Finance &

Accounting Service

Ohio .................................. Columbus Center ....................................... $72,403,000

Defense Intelligence

Agency

District of Columbia ......... Bolling Air Force Base ............................. $1,743,000

Defense Logistics

Agency

Alabama ............................ Defense Distribution Anniston .................. $3,550,000

California .......................... Defense Distribution Stockton .................. $15,000,000

DFSC, Point Mugu ................................... $750,000
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Defense Agencies: Inside the United States—Continued

Agency/State Installation or location Amount

Delaware ........................... DFSC, Dover Air Force Base ................... $15,554,000

Florida .............................. DFSC, Eglin Air Force Base .................... $2,400,000

Louisiana .......................... DFSC, Barksdale Air Force Base ............ $13,100,000

New Jersey ....................... DFSC, McGuire Air Force Base ............... $12,000,000

Pennsylvania ..................... Def Distribution New Cumberland—

DDSP .................................................... $4,600,000

Virginia ............................. Defense Distribution Depot—DDNV ....... $10,400,000

Defense Mapping

Agency

Missouri ............................ Defense Mapping Agency Aerospace Center.. ........................................................ $40,300,000

Defense Medical Facility Office

Arizona ............................. Luke Air Force Base ................................. $8,100,000

California .......................... Fort Irwin .................................................. $6,900,000

Marine Corps Base, Camp Pendleton ....... $1,700,000

Vandenberg Air Force Base ...................... $5,700,000

Delaware ........................... Dover Air Force Base ............................... $4,400,000

Georgia ............................. Fort Benning ............................................. $5,600,000

Louisiana .......................... Barksdale Air Force Base ......................... $4,100,000

Maryland .......................... Bethesda Naval Hospital ........................... $1,300,000

Walter Reed Army Institute of Research .. $1,550,000

Texas ................................ Fort Hood .................................................. $5,500,000

Lackland Air Force Base .......................... $6,100,000

Reese Air Force Base ................................ $1,000,000

Virginia ............................. Northwest Naval Security Group Activity $4,300,000

National Security

Agency

Maryland .......................... Fort Meade ................................................ $18,733,000

Office of the Secretary of Defense

Inside the United States Classified location ...................................... $11,500,000

Department of Defense Dependents

Schools

Alabama ............................ Maxwell Air Force Base ............................ $5,479,000

Georgia ............................. Fort Benning ............................................. $1,116,000

South Carolina ................. Fort Jackson ............................................. $576,000

Special Operations

Command

California .......................... Naval Air Station, Miramar ...................... $5,200,000

Florida .............................. Duke Field ................................................. $2,400,000

Eglin Auxiliary Field 9 .............................. $14,150,000

Louisiana .......................... Naval Support Activity, New Orleans ....... $730,000
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Defense Agencies: Inside the United States—Continued

Agency/State Installation or location Amount

North Carolina ................. Fort Bragg ................................................ $23,800,000

Pennsylvania ..................... Olmstead Field, Harrisburg IAP .............. $1,643,000

Virginia ............................. Dam Neck .................................................. $6,100,000

Naval Amphibious Base, Little Creek ....... $4,500,000

Total: ................................................. $357,577,000

1 (b) OUTSIDE THE UNITED STATES.—Using amounts

2 appropriated pursuant to the authorization of appropria3 tions in section 2405(a)(2), the Secretary of Defense may

4 acquire real property and carry out military construction

5 projects for the installations and locations outside the

6 United States, and in the amounts, set forth in the follow7 ing table:

Defense Agencies: Outside the United States

Agency/Country Installation Name Amount

Defense Logistics

Agency

Puerto Rico ....................... Defense Fuel Support Point, Roosevelt

Roads ..................................................... $6,200,000

Spain ................................ DFSC Rota ............................................... $7,400,000

Defense Medical Facility Office

Italy .................................. Naval Support Activity, Naples ................. $5,000,000

Department of Defense Dependents

Schools

Germany ........................... Ramstein Air Force Base .......................... $19,205,000

Italy .................................. Naval Air Station, Sigonella ...................... $7,595,000

National Security

Agency

United Kingdom ............... Menwith Hill Station ................................. $677,000

Special Operations

Command

Guam ................................ Naval Station, Guam ................................. $8,800,000

Total: ................................................. $54,877,000
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1 SEC. 2402. FAMILY HOUSING PRIVATE INVESTMENT.

2 Using amounts appropriated pursuant to the author3 ization of appropriations in section 2405(a)(13)(A), the

4 Secretary of Defense may enter into agreements to con5 struct, acquire, and improve family housing units (includ6 ing land acquisition) at or near military installations, for

7 the purpose of encouraging private investments, in the

8 amount of $22,000,000. Amounts appropriated pursuant

9 to such section may be transferred from the Department

10 of Defense Family Housing Improvement Fund estab11 lished under section 2873 of title 10, United States Code,

12 to the family housing accounts of the military departments

13 for the purpose of encouraging private investments.

14 SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING

15 UNITS.

16 Subject to section 2825 of title 10, United States

17 Code, and using amounts appropriated pursuant to the

18 authorization of appropriations in section 2405(a)(13)(A),

19 the Secretary of Defense may improve existing military

20 family housing units in an amount not to exceed

21 $3,772,000.

22 SEC. 2404. ENERGY CONSERVATION PROJECTS.

23 Using amounts appropriated pursuant to the author24 ization of appropriations in section 2405(a)(11), the Sec25 retary of Defense may carry out energy conservation
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1 projects under section 2865 of title 10, United States

2 Code.

3 SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DE4 FENSE AGENCIES.

5 (a) IN GENERAL.—Funds are hereby authorized to

6 be appropriated for fiscal years beginning after September

7 30, 1995, for military construction, land acquisition, and

8 military family housing functions of the Department of

9 Defense (other than the military departments), in the total

10 amount of $4,692,463,000 as follows:

11 (1) For military construction projects inside the

12 United States authorized by section 2401(a),

13 $322,574,000.

14 (2) For military construction projects outside

15 the United States authorized by section 2401(b),

16 $54,877,000.

17 (3) For military construction projects at Ports18 mouth Naval Hospital, Virginia, authorized by sec19 tion 2401(a) of the Military Construction Authoriza20 tion Act for Fiscal Years 1990 and 1991 (division

21 B of Public Law 101–189; 103 Stat. 1640),

22 $47,900,000.

23 (4) For military construction projects at El24 mendorf Air Force Base, Alaska, hospital replace25 ment, authorized by section 2401(a) of the Military
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1 Construction Authorization Act for Fiscal Year 1993

2 (division B of Public Law 102–484; 106 Stat.

3 2599), $28,100,000.

4 (5) For military construction projects at Walter

5 Reed Army Institute of Research, Maryland, hospital

6 replacement, authorized by section 2401(a) of the

7 Military Construction Authorization Act for Fiscal

8 Year 1993 (division B of Public Law 102–484; 106

9 Stat. 2599), $27,000,000.

10 (6) For military construction projects at Pine

11 Bluff Arsenal, Arkansas, authorized by section

12 2401(a) of the Military Construction Authorization

13 Act for Fiscal Year 1995 (division B of Public Law

14 103–337; 108 Stat. 3040), $40,000,000.

15 (7) For military construction projects at

16 Umatilla Army Depot, Oregon, authorized by section

17 2401(a) of the Military Construction Authorization

18 Act for Fiscal Year 1995 (division B of Public Law

19 103–337; 108 Stat. 3040), $55,000,000.

20 (8) For unspecified minor construction projects

21 under section 2805 of title 10, United States Code,

22 $23,007,000.

23 (9) For contingency construction projects of the

24 Secretary of Defense under section 2804 of title 10,

25 United States Code, $11,037,000.
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1 (10) For architectural and engineering services

2 and construction design under section 2807 of title

3 10, United State Code, $68,837,000.

4 (11) For energy conservation projects author5 ized by section 2404, $50,000,000.

6 (12) For base closure and realignment activities

7 as authorized by the Defense Base Closure and Re8 alignment Act of 1990 (part A of title XXIX of

9 Public Law 101–510; 10 U.S.C. 2687 note),

10 $3,897,892,000.

11 (13) For military family housing functions:

12 (A) For construction and acquisition and

13 improvement of military family housing and fa14 cilities, $25,772,000.

15 (B) For support of military housing (in16 cluding functions described in section 2833 of

17 title 10, United States Code), $40,467,000, of

18 which not more than $24,874,000 may be obli19 gated or expended for the leasing of military

20 family housing units worldwide.

21 (b) LIMITATION OF TOTAL COST OF CONSTRUCTION

22 PROJECTS.—Notwithstanding the cost variation author23 ized by section 2853 of title 10, United States Code, and

24 any other cost variations authorized by law, the total cost
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1 of all projects carried out under section 2401 of this Act

2 may not exceed—

3 (1) the total amount authorized to be appro4 priated under paragraphs (1) and (2) of subsection

5 (a); and

6 (2) $35,003,000 (the balance of the amount au7 thorized under section 2401(a) for the construction

8 of a center of the Defense Finance and Accounting

9 Service at Columbus, Ohio).

10 SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT

11 FISCAL YEAR 1995 PROJECTS.

12 The table in section 2401 of the Military Construc13 tion Authorization Act for Fiscal Year 1995 (division B

14 of Public Law 103–337; 108 Stat. 3040), under the agen15 cy heading relating to Chemical Weapons and Munitions

16 Destruction, is amended—

17 (1) in the item relating to Pine Bluff Arsenal,

18 Arkansas, by striking out ‘‘$3,000,000’’ in the

19 amount column and inserting in lieu thereof

20 ‘‘$115,000,000’’; and

21 (2) in the item relating to Umatilla Army

22 Depot, Oregon, by striking out ‘‘$12,000,000’’ in

23 the amount column and inserting in lieu thereof

24 ‘‘$186,000,000’’.
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1 SEC. 2407. LIMITATION ON EXPENDITURES FOR CONSTRUC2 TION PROJECT AT UMATILLA ARMY DEPOT,

3 OREGON.

4 None of the funds appropriated to the Department

5 of Defense for fiscal year 1996 for the construction of a

6 chemical munitions incinerator facility at Umatilla Army

7 Depot may be obligated or expended before March 1,

8 1996.

9 TITLE XXV—NORTH ATLANTIC

10 TREATY ORGANIZATION IN11 FRASTRUCTURE

12 SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND

13 ACQUISITION PROJECTS.

14 The Secretary of Defense may make contributions for

15 the North Atlantic Treaty Organization Infrastructure

16 program as provided in section 2806 of title 10, United

17 States Code, in an amount not to exceed the sum of the

18 amount authorized to be appropriated for this purpose in

19 section 2502 and the amount collected from the North At20 lantic Treaty Organization as a result of construction pre21 viously financed by the United States.

22 SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

23 Funds are hereby authorized to be appropriated for

24 fiscal years beginning after September 30, 1995, for con25 tributions by the Secretary of Defense under section 2806

26 of title 10, United States Code, for the share of the United
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1 States of the cost of projects for the North Atlantic Treaty

2 Organization Infrastructure program, as authorized by

3 section 2501, in the amount of $161,000,000.

4 TITLE XXVI—GUARD AND

5 RESERVE FORCES FACILITIES

6 SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUC7 TION AND LAND ACQUISITION PROJECTS.

8 There are authorized to be appropriated for fiscal

9 years beginning after September 30, 1995, for the costs

10 of acquisition, architectural and engineering services, and

11 construction of facilities for the Guard and Reserve

12 Forces, and for contributions therefor, under chapter 133

13 of title 10, United States Code (including the cost of ac14 quisition of land for those facilities), the following

15 amounts:

16 (1) For the Department of the Army—

17 (A) for the Army National Guard of the

18 United States, $72,537,000; and

19 (B) for the Army Reserve, $42,963,000.

20 (2) For the Department of the Navy, for the

21 Naval and Marine Corps Reserve, $19,655,000.

22 (3) For the Department of the Air Force—

23 (A) for the Air National Guard of the

24 United States, $118,267,000; and
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1 (B) for the Air Force Reserve,

2 $31,502,000.

3 SEC. 2602. CORRECTION IN AUTHORIZED USES OF FUNDS

4 FOR ARMY NATIONAL GUARD PROJECTS IN

5 MISSISSIPPI.

6 Amounts appropriated pursuant to the authorization

7 of appropriations in section 2601(1)(A) of the Military

8 Construction Authorization Act for Fiscal Year 1994 (di9 vision B of Public Law 103–160; 107 Stat. 1878) for the

10 addition or alteration of Army National Guard Armories

11 at various locations in the State of Mississippi shall be

12 available for the addition, alteration, or new construction

13 of armory facilities and an operation and maintenance

14 shop facility (including the acquisition of land for such fa15 cilities) at various locations in the State of Mississippi.

16 TITLE XXVII—EXPIRATION AND

17 EXTENSION OF AUTHORIZA18 TIONS

19 SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND

20 AMOUNTS REQUIRED TO BE SPECIFIED BY

21 LAW.

22 (a) EXPIRATION OF AUTHORIZATIONS AFTER THREE

23 YEARS.—Except as provided in subsection (b), all author24 izations contained in titles XXI through XXVI for military

25 construction projects, land acquisition, family housing
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1 projects and facilities, and contributions to the North At2 lantic Treaty Organization Infrastructure program (and

3 authorizations of appropriations therefor) shall expire on

4 the later of—

5 (1) October 1, 1998; or

6 (2) the date of the enactment of an Act author7 izing funds for military construction for fiscal year

8 1999.

9 (b) EXCEPTION.—Subsection (a) shall not apply to

10 authorizations for military construction projects, land ac11 quisition, family housing projects and facilities, and con12 tributions to the North Atlantic Treaty Organization In13 frastructure program (and authorizations of appropria14 tions therefor), for which appropriated funds have been

15 obligated before the later of—

16 (1) October 1, 1998; or

17 (2) the date of the enactment of an Act author18 izing funds for fiscal year 1999 for military con19 struction projects, land acquisition, family housing

20 projects and facilities, or contributions to the North

21 Atlantic Treaty Organization Infrastructure pro22 gram.
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1 SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN

2 FISCAL YEAR 1993 PROJECTS.

3 (a) EXTENSIONS.—Notwithstanding section 2701 of

4 the Military Construction Authorization Act for Fiscal

5 Year 1993 (division B of Public Law 102–484; 106 Stat.

6 2602), authorizations for the projects set forth in the ta7 bles in subsection (b), as provided in section 2101, 2102,

8 2201, 2301, or 2601 of that Act, shall remain in effect

9 until October 1, 1996, or the date of the enactment of

10 an Act authorizing funds for military construction for fis11 cal year 1997, whichever is later.

12 (b) TABLES.—The tables referred to in subsection (a)

13 are as follows:

Army: Extension of 1993 Project Authorizations

State Installation or location Project Amount

Arkansas ........... Pine Bluff Arsenal ........ Ammunition Demilitarization Support Facility ........................... $15,000,000

Hawaii .............. Schofield Barracks ........ Additions and Alterations Sewage Treatment Plant ................. $17,500,000

Virginia ............. Fort Pickett ................... Sewage Treatment Plant $5,800,000

Family Housing (26

Units) ........................ $2,300,000

Navy: Extension of 1993 Project Authorizations

State Installation or location Project Amount

California .......... Camp Pendleton Marine

Corps Base ................ Sewage Treatment Plant $19,740,000

Maryland .......... Patuxent River Naval

Warfare Center .......... Advanced Systems Integration Facility .......... $60,990,000
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Navy: Extension of 1993 Project Authorizations—Continued

State Installation or location Project Amount

Mississippi ........ Meridian Naval Air Station ............................ Child Development Center .............................. $1,100,000

Virginia ............. Dam Neck Fleet Combat

Training Center ......... Land Acquisition ........... $4,500,000

Air Force: Extension of 1993 Project Authorization

State or countryInstallation 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 Reserve Center $1,921,000

Clarksburg ..................... Additions and Alterations AMSA ............. $1,156,000

Grantville ....................... Reserve Center/OMS ..... $2,785,000

Jane Lew ....................... Reserve Center .............. $1,566,000

Lewisburg ...................... Reserve Center/OMS ..... $1,631,000

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

Army National Guard: Extension of 1993 Project Authorizations

State Location Project Amount

Alabama ............ Tuscaloosa ..................... Additions and Alternations Armory .......... $800,000

Union Springs ............... Additions and Alternations Armory .......... $300,000

New Jersey ....... Fort Dix ........................ Additions and Alternations Armory .......... $4,750,000

Oregon .............. La Grande ..................... OMS .............................. $995,000

Armory Addition ........... $3,049,000
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1 SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN

2 FISCAL YEAR 1992 PROJECTS.

3 (a) EXTENSIONS.—Notwithstanding section 2701 of

4 the Military Construction Authorization Act for Fiscal

5 Year 1992 (division B of Public Law 102–190; 105 Stat.

6 1535), authorizations for the projects set forth in the ta7 bles in subsection (b), as provided in section 2101 or 2601

8 of that Act and extended by section 2702(a) of the Mili9 tary Construction Authorization Act for Fiscal Year 1995

10 (division B of Public Law 103–337; 108 Stat. 3047), shall

11 remain in effect until October 1, 1996, or the date of the

12 enactment of an Act authorizing funds for military con13 struction for fiscal year 1997, whichever is later.

14 (b) TABLES.—The tables referred to in subsection (a)

15 are as follows:

Army: Extension of 1992 Project Authorizations

State Installation or location Project Amount

Oregon .............. Umatilla Army Depot .... Ammunition Demilitarization Support Facility ........................... $3,600,000

Ammunition Demilitarization Utilities ..... $7,500,000

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
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1 SEC. 2704. EFFECTIVE DATE.

2 Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI

3 shall take effect on the later of—

4 (1) October 1, 1995; or

5 (2) the date of the enactment of this Act.

6 TITLE XXVIII—GENERAL

7 PROVISIONS

8 Subtitle A—Military Construction

9 Program and Military Family

10 Housing Changes

11 SEC. 2801. ALTERNATIVE MEANS OF ACQUIRING AND IM12 PROVING MILITARY FAMILY HOUSING AND

13 SUPPORTING FACILITIES FOR THE ARMED

14 FORCES.

15 (a) FINDINGS AND PURPOSE.—(1) Congress finds

16 the following:

17 (A) Adequate military family housing is essen18 tial to the retention of well-trained and professional

19 members of the Armed Forces.

20 (B) Current military family housing is in many

21 circumstances substandard, inadequately main22 tained, or obsolete. Of the more than 375,000 mili23 tary families living on military installations, two24 thirds of such families reside in unsuitable quarters.

25 (C) Traditional military construction techniques

26 are frequently lengthy and more expensive than com-
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1 mercial methods. At current appropriation levels,

2 modernization of military family housing located on

3 military installations could require more than 30

4 years to accomplish.

5 (D) A combination of private housing capital

6 and commercial construction techniques could help

7 to alleviate the shortage of suitable military family

8 housing in a far more timely and cost effective man9 ner.

10 (2) It is the purpose of this section to obtain new

11 and improved military family housing and ancillary sup12 porting facilities for the Armed Forces using private cap13 ital and expertise.

14 (b) ALTERNATIVE PROVISION OF HOUSING AND FA15 CILITIES.—(1) Chapter 169 of title 10, United States

16 Code, is amended by adding at the end the following new

17 subchapter:

18 ‘‘SUBCHAPTER IV—ALTERNATIVE PROVISION

19 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.

20 ‘‘§ 2871. Definitions

21 ‘‘In this subchapter:
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1 ‘‘(1) The term ‘construction’ means the con2 struction of additional units of military family hous3 ing and ancillary supporting facilities or the replace4 ment or renovation of existing units or ancillary sup5 porting facilities.

6 ‘‘(2) The term ‘ancillary supporting facilities’

7 means facilities related to military family housing,

8 such as day care centers, community centers, hous9 ing offices, maintenance complexes, tot lots, and

10 parks. Such term does not include commercial facili11 ties that could not otherwise be constructed using

12 funds appropriated to the Department of Defense.

13 ‘‘(3) The term ‘contract’ includes any contract,

14 lease, or other agreement entered into under the au15 thority of this subchapter.

16 ‘‘(4) The term ‘Fund’ means the Department of

17 Defense Family Housing Improvement Fund estab18 lished under section 2873(a) of this title.

19 ‘‘§ 2872. General limitations and authorities

20 ‘‘(a) USE OF AUTHORITIES.—The Secretary con21 cerned may use the authorities provided by this sub22 chapter, singly or in conjunction with other authorities

23 provided under this chapter, to help meet the military fam24 ily housing needs of members of the armed forces and the

25 dependents of such members at military installations at
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1 which there is a shortage of suitable housing for members

2 and their dependents.

3 ‘‘(b) TERM.—Subject to section 2873(d)(2) of this

4 title, a contract entered into under this subchapter may

5 be for such term as the Secretary concerned considers to

6 be in the best interests of the United States.

7 ‘‘(c) PHASED OCCUPANCY.—A contract under this

8 subchapter may provide for phased occupancy of com9 pleted family housing units under one or more interim

10 leases during the period of the construction or renovation

11 of the housing units. In no case shall any such interim

12 lease extend beyond the construction or renovation period.

13 ‘‘(d) UNIT SIZE AND TYPE.—Section 2826 of this

14 title shall not apply to military family housing units ac15 quired or constructed under this subchapter, except that

16 room and floor area size of such housing units should gen17 erally be comparable to private sector housing available

18 in the same locality. When acquiring existing family hous19 ing in lieu of construction under section 2824 of this title,

20 the Secretary concerned may vary the number of types of

21 units to be acquired as long as the total number of units

22 is substantially the same as authorized by law.

23 ‘‘(e) LOCATION.—The Secretary concerned may use

24 the authorities provided under this subchapter to acquire

25 or construct military family housing units and ancillary
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1 supporting facilities in the United States, the Common2 wealth of Puerto Rico, and in any territory or possession

3 of the United States.

4 ‘‘(f) NOTIFICATION REQUIRED FOR CONTRACTS.—

5 The Secretary concerned may not enter into a contract

6 under this subchapter until after the end of the 21-day

7 period beginning on the date the Secretary concerned sub8 mits to the appropriate committees of Congress written

9 notice of the nature and terms of the contract.

10 ‘‘(g) ASSIGNMENTS.—The Secretary concerned may

11 assign members of the armed forces to any military family

12 housing obtained using the authorities provided in this

13 subchapter in accordance with section 403(b) of title 37.

14 ‘‘(h) ALLOTMENTS.—The Secretary concerned may

15 require a member of the armed forces to pay rent by allot16 ment as a condition of occupying military family housing

17 obtained using the authorities provided in this subchapter.

18 ‘‘(i) SUPPORTING FACILITIES.—Any contract entered

19 into under this subchapter may include provisions for the

20 construction or acquisition of ancillary supporting facili21 ties.

22 ‘‘(j) AUTHORITY TO LEASE OR SELL LAND, HOUS23 ING, AND SUPPORTING FACILITIES.—(1) The Secretary

24 concerned may lease or sell land, housing, and ancillary

25 supporting facilities under the jurisdiction of the Secretary
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1 for the purpose of providing additional military family

2 housing or improving existing military family housing

3 under this subchapter, except that the authority to lease

4 or sell real property under this subchapter shall not extend

5 to property located at a military installation approved for

6 closure.

7 ‘‘(2) A sale or lease under this subsection may be

8 made for such consideration and upon such terms and

9 conditions as the Secretary concerned shall determine to

10 be consistent with the purposes of this subchapter and the

11 public interest. The acreage and legal description of any

12 property leased or conveyed under this subsection shall be

13 determined by a survey satisfactory to the Secretary con14 cerned.

15 ‘‘(3) Section 2667 of this title, the Federal Property

16 and Administrative Services Act of 1949 (40 U.S.C. 471),

17 section 501 of the Stewart B. McKinney Homeless Assist18 ance Act (42 U.S.C. 11411), and section 321 of the Act

19 of June 30, 1932 (47 Stat. 412) shall not apply to leases

20 and sales under this subsection.

21 ‘‘(4) As part or all of the consideration for the sale

22 or lease of property under this subsection, the Secretary

23 concerned shall require an ancillary agreement under

24 which the person receiving the property agrees to give pri25 ority to military members and their dependents in the
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1 leasing of existing or new housing units under the control

2 or provided by the person. Such agreements may provide

3 for the payment by the Secretary concerned of security

4 or damage deposits.

5 ‘‘§ 2873. Department of Defense Family Housing Im6 provement Fund

7 ‘‘(a) ESTABLISHMENT.—There is hereby established

8 on the books of the Treasury an account to be known as

9 the Department of Defense Family Housing Improvement

10 Fund, which shall be administered by the Secretary of De11 fense as a single account. Amounts in the Fund shall be

12 available without fiscal year limitation.

13 ‘‘(b) DEPOSITS.—There shall be deposited into the

14 Fund the following:

15 ‘‘(1) Amounts authorized for and appropriated

16 into the Fund.

17 ‘‘(2) Subject to subsection (c), any amounts

18 that the Secretary of Defense may transfer to the

19 Fund from amounts appropriated to the Department

20 of Defense for construction of military family hous21 ing.

22 ‘‘(3) Proceeds received from the conveyance or

23 lease of real property under section 2872(j) of this

24 title, income from operations conducted under this

25 subchapter, including refunds of deposits, and any
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1 return of capital or return on investments entered

2 into under this subchapter.

3 ‘‘(c) NOTIFICATION REQUIRED FOR TRANSFERS.—A

4 transfer of appropriated amounts to the Fund under sub5 section (b)(2) may be made only after the end of the 30-

6 day period beginning on the date the Secretary of Defense

7 submits written notice of, and justification for, the trans8 fer to the appropriate committees of Congress.

9 ‘‘(d) USE OF FUNDS.—(1) In such total amount as

10 is provided in advance in appropriation Acts, the Secretary

11 of Defense may use amounts in the Fund for alternative

12 means of financing military family housing and ancillary

13 supporting facilities as authorized in this subchapter.

14 ‘‘(2) The Secretary may not enter into a contract

15 under this subchapter unless the Fund contains sufficient

16 amounts, as of the time the contract is entered into, to

17 satisfy the total obligations to be incurred by the United

18 States under the contract.

19 ‘‘(3) The total value in budget authority of all con20 tracts and investments undertaken using the authorities

21 provided in the subchapter shall not exceed

22 $1,000,000,000.

23 ‘‘(e) LOANS AND LOAN GUARANTEES.—Loans and

24 loan guarantees may be entered into under this subchapter

25 only to the extent that appropriations of budget authority
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1 to cover their costs (as defined in section 502(5) of the

2 Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)))

3 are made in advance, or authority is otherwise provided

4 in appropriations Acts.

5 ‘‘(f) ANNUAL REPORT.—The Secretary of Defense

6 shall submit to the appropriate committees of Congress

7 an annual report detailing the expenditures from and de8 posits into the Fund during the preceding year and the

9 utilization and effectiveness of the authorities provided by

10 this subchapter. The Secretary shall submit the report at

11 the same time that the President submits the budget to

12 Congress under section 1105 of title 31.

13 ‘‘§ 2875. Housing finance and acquisition authorities

14 ‘‘(a) GUARANTEES.—(1) The Secretary concerned

15 may enter into contracts that provide for guarantees, in16 surance, or other contingent payments to owners, mortga17 gors, or assignees of housing units and ancillary support18 ing facilities that are made available for use by members

19 of the armed forces.

20 ‘‘(2) Contingencies under which payments may be

21 made under such a contract include the following:

22 ‘‘(A) A failure to pay interest or principal on

23 mortgages, generally or as a result of a base closure

24 or realignment, a reduction in force, an extended de25 ployment of assigned forces, or similar contingencies.
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1 ‘‘(B) A failure to achieve specified occupancy

2 levels of, or rental income from, housing units cov3 ered by a contract.

4 ‘‘(3) Such contracts may be on such terms and condi5 tions as the Secretary concerned considers necessary or

6 desirable to induce the provision of housing and ancillary

7 supporting facilities, whether by acquisition or construc8 tion, for use by members of the armed forces, and to pro9 tect the financial interests of the United States.

10 ‘‘(b) LEASES.—The Secretary concerned may enter

11 into a contract for the lease of housing units to be ac12 quired or constructed on or near a military installation.

13 Such a contract may provide for the owner of the property

14 to operate and maintain the facilities.

15 ‘‘(c) DIFFERENTIAL PAYMENTS.—In entering into

16 contracts under this subchapter, the Secretary concerned

17 may make a differential payment in addition to rental pay18 ments made by individual members.

19 ‘‘(d) INVESTMENTS.—(1) The Secretary concerned

20 may make investments in nongovernmental entities in21 volved in the acquisition or construction of housing and

22 ancillary supporting facilities on or near a military instal23 lation for such consideration and upon such terms and

24 conditions as the Secretary concerned determines to be
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1 consistent with the purposes of this subchapter and the

2 public interest.

3 ‘‘(2) Such investments may take the form of limited

4 partnership interests, stock, debt instruments, or a com5 bination thereof.

6 ‘‘(3) The investment made by the Secretary con7 cerned in an acquisition or construction project under this

8 subsection, whether the investment is in the form of cash,

9 land or buildings under section 2872(j) of this title, or

10 other form, may not exceed 35 percent of the capital costs

11 of the acquisition or construction project.

12 ‘‘(e) COLLATERAL INCENTIVE AGREEMENTS.—The

13 Secretary concerned may also enter into collateral incen14 tive agreements in connection with investments made

15 under subsection (d) to ensure that a suitable preference

16 will be afforded members of the armed forces to lease or

17 purchase, at affordable rates, a reasonable number of the

18 housing units covered by the investment contract.

19 ‘‘§ 2876. Expiration of authority

20 ‘‘The authority of the Secretaries concerned to enter

21 into contracts and partnerships and to make investments

22 under this subchapter shall expire on September 30,

23 2000.’’.

24 (2) The table of subchapters at the beginning of

25 chapter 169 of title 10, United States Code, is amended
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1 by inserting after the item relating to subchapter III the

2 following new item:

‘‘IV. Alternative Provision of Military Family Housing ..................... 2871’’.

3 SEC. 2802. INCLUSION OF OTHER ARMED FORCES IN NAVY

4 PROGRAM OF LIMITED PARTNERSHIPS WITH

5 PRIVATE DEVELOPERS FOR MILITARY

6 HOUSING.

7 (a) EXPANDED AUTHORITY FOR HOUSING PARTNER8 SHIPS.—(1) Subchapter IV of chapter 169 of title 10,

9 United States Code, as added by section 2801, is amended

10 by inserting after section 2873 the following new section:

11 § ‘‘2874. Limited partnerships with private developers

12 of housing

13 ‘‘(a) LIMITED PARTNERSHIPS.—In order to meet the

14 housing requirements of members of the armed forces, and

15 the dependents of such members, at a military installation

16 described in section 2872(a) of this title, the Secretary

17 concerned may enter into a limited partnership with one

18 or more private developers to encourage the construction

19 of housing and ancillary supporting facilities within com20 muting distance of the installation. Section 2875(d) of this

21 title shall apply with respect to the investments the Sec22 retary concerned may make toward development costs

23 under a limited partnership.

24 ‘‘(b) COLLATERAL INCENTIVE AGREEMENTS.—The

25 Secretary concerned may also enter into collateral incen-
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1 tive agreements with private developers who enter into a

2 limited partnership under subsection (a) to ensure that,

3 where appropriate—

4 ‘‘(1) a suitable preference will be afforded mem5 bers of the armed forces in the lease or purchase, as

6 the case may be, of a reasonable number of the

7 housing units covered by the limited partnership; or

8 ‘‘(2) the rental rates or sale prices, as the case

9 may be, for some or all of such units will be afford10 able for such members.

11 ‘‘(c) SELECTION OF INVESTMENT OPPORTUNITIES.—

12 (1) The Secretary concerned shall use publicly advertised,

13 competitively bid or competitively negotiated, contracting

14 procedures, as provided in chapter 137 of this title, to

15 enter into limited partnerships under subsection (a).

16 ‘‘(2) When a decision is made by the Secretary con17 cerned to enter into a limited partnership under subsection

18 (a), the Secretary shall submit a report in writing to the

19 appropriate committees of Congress on that decision.

20 Each such report shall include the justification for the lim21 ited partnership, the terms and conditions of the limited

22 partnership, a description of the development costs for

23 projects under the limited partnership, and a description

24 of the share of such costs to be incurred by the Secretary

25 concerned. The Secretary concerned may then enter into
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1 the limited partnership only after the end of the 21-day

2 period beginning on the date the report is received by such

3 committees.

4 ‘‘(d) HOUSING INVESTMENT BOARDS.—(1) Each

5 Secretary concerned shall establish a housing investment

6 board, which shall have the duties—

7 ‘‘(A) of advising the Secretary concerned re8 garding those proposed limited partnerships under

9 subsection (a), if any, that are financially and other10 wise sound investments for meeting the objectives of

11 this section;

12 ‘‘(B) of administering amounts in the Account

13 established under section 2873 of this title that are

14 made available to the Secretary concerned to carry

15 out this section; and

16 ‘‘(C) of performing such other tasks as the Sec17 retary concerned determines to be necessary and ap18 propriate to assist the Secretary to carry out the du19 ties of the Secretary under this section.

20 ‘‘(2) A housing investment board shall be composed

21 of seven members appointed for a two-year term by the

22 Secretary concerned. Among such members, the Secretary

23 concerned may appoint two persons from the private sec24 tor who have knowledge and experience in the financing
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1 and the construction of housing. The Secretary concerned

2 shall designate one of the members as chairperson.

3 ‘‘(3) Members of a housing investment board, other

4 than those members regularly employed by the Federal

5 Government, may be paid while attending meetings of the

6 board or otherwise serving at the request of the Secretary

7 concerned, compensation at a rate equal to the daily equiv8 alent of the minimum annual rate of basic pay payable

9 for level IV of the Executive Schedule under section 5315

10 of title 5 for each day (including travel time) during which

11 the member is engaged in the actual performance of duties

12 vested in the board. Members shall receive travel expenses,

13 including per diem in lieu of subsistence, in accordance

14 with sections 5702 and 5703 of title 5.

15 ‘‘(4) The Federal Advisory Committee Act (5 U.S.C.

16 App.) shall not apply to the housing investment boards.

17 ‘‘(5) The housing investment boards shall terminate

18 on September 30, 2000.’’.

19 (2) The table of sections at the beginning of such sub20 chapter is amended by inserting after the item relating

21 to section 2873 the following new item:

‘‘2874. Limited partnerships with private developers of housing.’’.

22 (b) PROCEEDS FROM PARTICIPATION IN PARTNER23 SHIPS.—Section 2873(b) of title 10, United States Code,

24 as added by section 2801, is amended by adding at the

25 end the following new paragraph:
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1 ‘‘(4) Proceeds received by the Secretary con2 cerned from the repayment of investments or profits

3 on investments of the Secretary under section

4 2874(a) of this title.’’.

5 (c) CONFORMING REPEAL.—(1) Section 2837 of title

6 10, United States Code, is repealed. The repeal of such

7 section shall not be construed to affect the validity or

8 terms of any limited partnership or collateral incentive

9 agreement entered into by the Secretary of the Navy

10 under such section before the date of the enactment of

11 this Act. Amounts in the Navy Housing Investment Ac12 count shall be transferred to the Department of Defense

13 Family Housing Improvement Fund established under

14 section 2873 of such title, as added by section 2801.

15 (2) The table of sections at the beginning of sub16 chapter II of chapter 169 of title 10, United States Code,

17 is amended by striking out the item relating to section

18 2837.

19 SEC. 2803. SPECIAL UNSPECIFIED MINOR CONSTRUCTION

20 THRESHOLDS FOR PROJECTS TO CORRECT

21 LIFE, HEALTH, AND SAFETY DEFICIENCIES

22 AND CLARIFICATION OF UNSPECIFIED

23 MINOR CONSTRUCTION AUTHORITY.

24 (a) SPECIAL THRESHOLDS.—Section 2805 of title

25 10, United States Code, is amended—
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1 (1) in subsection (a)(1), by adding at the end

2 the following new sentence: ‘‘However, if the military

3 construction project is intended solely to correct a

4 life, health, or safety deficiency, a minor military

5 construction project may have an approved cost

6 equal to or less than $3,000,000.’’; and

7 (2) in subsection (c)(1), by striking out ‘‘not

8 more than $300,000.’’ and inserting in lieu thereof

9 the following: ‘‘not more than—

10 ‘‘(A) $1,000,000, in the case of an unspecified

11 military construction project intended solely to cor12 rect a life, health, or safety deficiency; or

13 ‘‘(B) $300,000, in the case of other unspecified

14 military construction projects.’’.

15 (b) DESCRIPTION OF MINOR CONSTRUCTION.—Sub16 section (a)(1) of such section is further amended by strik17 ing out ‘‘(1) that is for a single undertaking at a military

18 installation, and (2)’’.

19 SEC. 2804. DISPOSITION OF AMOUNTS RECOVERED AS A RE20 SULT OF DAMAGE TO REAL PROPERTY.

21 (a) IN GENERAL.—Chapter 165 of title 10, United

22 States Code, is amended by inserting after section 2781

23 the following new section:
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1 ‘‘§ 2782. Damage to real property: disposition of

2 amounts recovered

3 ‘‘Except as provided in section 2775 of this title,

4 amounts recovered for damage caused to real property

5 under the jurisdiction of the Secretary of a military de6 partment or, with respect to the Defense Agencies, under

7 the jurisdiction of the Secretary of Defense shall be cred8 ited to the account available for the repair or replacement

9 of the real property at the time of recovery. In such

10 amounts as are provided in advance in appropriation Acts,

11 amounts so credited shall be available for use for the same

12 purposes and under the same circumstances as other

13 funds in the account.’’.

14 (b) CLERICAL AMENDMENT.—The table of sections

15 at the beginning of such chapter is amended by inserting

16 after the item relating to section 2781 the following new

17 item:

‘‘2782. Damage to real property: disposition of amounts recovered.’’.

18 SEC. 2805. RENTAL OF FAMILY HOUSING IN FOREIGN

19 COUNTRIES.

20 Section 2828(e) of title 10, United States Code, is

21 amended—

22 (1) in paragraph (1)—

23 (A) by striking out ‘‘300 units’’ in the first

24 sentence and inserting in lieu thereof ‘‘450

25 units’’; and
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1 (B) by striking out ‘‘220 such units’’ in

2 the second sentence and inserting in lieu there3 of ‘‘350 such units’’; and

4 (2) in paragraph (2), by striking out ‘‘300

5 units’’ and inserting in lieu thereof ‘‘450 units’’.

6 SEC. 2806. PILOT PROGRAM TO PROVIDE INTEREST RATE

7 BUY DOWN AUTHORITY ON LOANS FOR HOUS8 ING WITHIN HOUSING SHORTAGE AREAS AT

9 MILITARY INSTALLATIONS.

10 (a) SHORT TITLE.—This section may be cited as the

11 ‘‘Military Housing Assistance Act of 1995’’.

12 (b) MORTGAGE ASSISTANCE PAYMENT AUTHORITY

13 OF THE SECRETARY OF VETERANS AFFAIRS.—(1) Chap14 ter 37 of title 38, United States Code, is amended by in15 serting after section 3707 the following:

16 ‘‘§ 3708. Authority to buy down interest rates: pilot

17 program

18 ‘‘(a) In order to enable the purchase of housing in

19 areas where the supply of suitable military housing is in20 adequate, the Secretary may conduct a pilot program

21 under which the Secretary may make periodic or lump

22 sum assistance payments on behalf of an eligible veteran

23 for the purpose of buying down the interest rate on a loan

24 to that veteran that is guaranteed under this chapter for
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1 a purpose described in paragraph (1), (2), (3), (6), or (10)

2 of section 3710(a).

3 ‘‘(b) An individual is an eligible veteran for the pur4 poses of this section if—

5 ‘‘(1) the individual is a veteran, as defined in

6 section 3701(b)(4) of this title, or is on active Guard

7 and Reserve duty, as defined by section 101(d) of

8 title 10;

9 ‘‘(2) the individual submits an application for a

10 loan guaranteed under this chapter within one year

11 of an assignment of the individual to duty at a mili12 tary installation in the United States designated by

13 the Secretary of Defense as a housing shortage area;

14 ‘‘(3) at the time the loan referred to in sub15 section (a) is made, the individual is an enlisted

16 member, warrant officer, or an officer (other than a

17 warrant officer) at a pay grade of O–3 or below;

18 ‘‘(4) the individual has not previously used any

19 of the individual’s entitlement to housing loan bene20 fits under this chapter; and

21 ‘‘(5) the individual receives comprehensive

22 prepurchase counseling from the Secretary (or the

23 designee of the Secretary) before making application

24 for a loan guaranteed under this chapter.
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1 ‘‘(c) Loans with respect to which the Secretary may

2 exercise the buy down authority under subsection (a)

3 shall—

4 ‘‘(1) provide for a buy down period of not more

5 than three years in duration;

6 ‘‘(2) specify the maximum and likely amounts

7 of increases in mortgage payments that the loans

8 would require; and

9 ‘‘(3) be subject to such other terms and condi10 tions as the Secretary may prescribe by regulation.

11 ‘‘(d) The Secretary shall promulgate underwriting

12 standards for loans for which the interest rate assistance

13 payments may be made under subsection (a). Such stand14 ards shall be based on the interest rate for the second year

15 of the loan.

16 ‘‘(e) The Secretary or lender shall provide com17 prehensive prepurchase counseling to eligible veterans ex18 plaining the features of interest rate buy downs under sub19 section (a), including a hypothetical payment schedule

20 that displays the increases in monthly payments to the

21 mortgagor over the first five years of the mortgage term.

22 For the purposes of this subsection, the Secretary may

23 assign personnel to military installations referred to in

24 subsection (b)(2).
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1 ‘‘(f) There is authorized to be appropriated

2 $3,000,000 annually to carry out this section.

3 ‘‘(g) The Secretary may not guarantee a loan under

4 this chapter after September 30, 1998, on which the Sec5 retary is obligated to make payments under this section.’’.

6 (2) The table of sections at the beginning of chapter

7 37 of title 38, United States Code, is amended by inserting

8 after the item relating to section 3707 to following new

9 item:

‘‘3708. Authority to buy down interest rates: pilot program.’’.

10 (c) AUTHORITY OF SECRETARY OF DEFENSE.—

11 (1) REIMBURSEMENT FOR BUY DOWN COSTS.—

12 The Secretary of Defense shall reimburse the Sec13 retary of Veterans Affairs for amounts paid by the

14 Secretary of Veterans Affairs to mortgagees under

15 section 3708 of title 38, United States Code.

16 (2) DESIGNATION OF HOUSING SHORTAGE

17 AREAS.—For purposes of section 3708 of title 38,

18 United States Code, the Secretary of Defense may

19 designate as a housing shortage area a military in20 stallation in the United States at which the Sec21 retary determines there is a shortage of suitable

22 housing to meet the military family needs of mem23 bers of the Armed Forces and the dependents of

24 such members.
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1 (3) REPORT.—Not later than six months after

2 September 30, 1998, the Secretary shall submit a

3 report to Congress regarding the effectiveness in

4 providing housing to members of the Armed Forces

5 and their dependents through the provisions of this

6 subsection and section 3708 of title 38, United

7 States Code.

8 (4) EARMARK.—Of the amount provided in sec9 tion 2405(a)(13)(B), $10,000,000 for fiscal year

10 1996 shall be available to carry out this subsection.

11 (5) SUNSET.—This subsection shall not apply

12 with respect to housing loans guaranteed after Sep13 tember 30, 1998, for which assistance payments are

14 paid under section 3708 of title 38, United States

15 Code.

16 Subtitle B—Base Closure and

17 Realignment

18 SEC. 2811. AUTHORITY TO TRANSFER PROPERTY AT MILI19 TARY INSTALLATIONS TO BE CLOSED TO

20 PERSONS WHO CONSTRUCT OR PROVIDE

21 MILITARY FAMILY HOUSING.

22 (a) BASE CLOSURES UNDER 1988 ACT.—Section

23 204 of the Defense Authorization Amendments and Base

24 Closure and Realignment Act (title II of Public Law 100–
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1 526; 10 U.S.C. 2687 note) is amended by adding at the

2 end the following new subsection:

3 ‘‘(e) TRANSFER AUTHORITY IN CONNECTION WITH

4 CONSTRUCTION OR PROVISION OF MILITARY FAMILY

5 HOUSING.—(1) Subject to paragraph (2), the Secretary

6 may enter into an agreement to transfer by deed real prop7 erty or facilities located at an installation closed or to be

8 closed under this title with any person who agrees, in ex9 change for the real property or facilities, to transfer to

10 the Secretary housing units that are constructed or pro11 vided by the person and located at or near a military in12 stallation at which there is a shortage of suitable housing

13 to meet the requirements of members of the Armed Forces

14 and their dependents. The Secretary may not select real

15 property for transfer under this paragraph if the property

16 is identified in the redevelopment plan for the installation

17 as items essential to the reuse or redevelopment of the

18 installation.

19 ‘‘(2) A transfer of real property or facilities may be

20 made under paragraph (1) only if—

21 ‘‘(A) the fair market value of the housing units

22 to be received by the Secretary in exchange for the

23 property or facilities to be transferred is equal to or

24 greater than the fair market value of such property

25 or facilities, as determined by the Secretary; or
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1 ‘‘(B) the recipient of the property or facilities

2 agrees to pay to the Secretary the difference be3 tween the fair market values if the fair market value

4 of the housing units is lower than the fair market

5 value of the property or facilities to be transferred.

6 ‘‘(3) Notwithstanding section 207(a)(7), the Sec7 retary shall deposit funds received under paragraph (2)(B)

8 in the Department of Defense Family Housing Improve9 ment Fund established under section 2873(a) of title 10,

10 United States Code.

11 ‘‘(4) The Secretary shall submit to the appropriate

12 committees of Congress a report describing each agree13 ment proposed to be entered into under paragraph (1),

14 including the consideration to be received by the United

15 States under the agreement. The Secretary may not enter

16 into the agreement until the end of the 21-day period be17 ginning on the date the appropriate committees of Con18 gress receive the report regarding the agreement.

19 ‘‘(5) The Secretary may require any additional terms

20 and conditions in connection with an agreement author21 ized by this subsection as the Secretary considers appro22 priate to protect the interests of the United States.’’.

23 (b) BASE CLOSURES UNDER 1990 ACT.—Section

24 2905 of the Defense Base Closure and Realignment Act

25 of 1990 (part A of title XXIX of Public Law 101–510;
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1 10 U.S.C. 2687 note) is amended by adding at the end

2 the following new subsection:

3 ‘‘(f) TRANSFER AUTHORITY IN CONNECTION WITH

4 CONSTRUCTION OR PROVISION OF MILITARY FAMILY

5 HOUSING.—(1) Subject to paragraph (2), the Secretary

6 may enter into an agreement to transfer by deed real prop7 erty or facilities located at an installation closed or to be

8 closed under this part with any person who agrees, in ex9 change for the real property or facilities, to transfer to

10 the Secretary housing units that are constructed or pro11 vided by the person and located at or near a military in12 stallation at which there is a shortage of suitable housing

13 to meet the requirements of members of the Armed Forces

14 and their dependents. The Secretary may not select real

15 property for transfer under this paragraph if the property

16 is identified in the redevelopment plan for the installation

17 as items essential to the reuse or redevelopment of the

18 installation.

19 ‘‘(2) A transfer of real property or facilities may be

20 made under paragraph (1) only if—

21 ‘‘(A) the fair market value of the housing units

22 to be received by the Secretary in exchange for the

23 property or facilities to be transferred is equal to or

24 greater than the fair market value of such property

25 or facilities, as determined by the Secretary; or
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1 ‘‘(B) the recipient of the property or facilities

2 agrees to pay to the Secretary the difference be3 tween the fair market values if the fair market value

4 of the housing units is lower than the fair market

5 value of the property or facilities to be transferred.

6 ‘‘(3) Notwithstanding section 2906(a)(2), the Sec7 retary shall deposit funds received under paragraph (2)(B)

8 in the Department of Defense Family Housing Improve9 ment Fund established under section 2873(a) of title 10,

10 United States Code.

11 ‘‘(4) The Secretary shall submit to the appropriate

12 committees of Congress a report describing each agree13 ment proposed to be entered into under paragraph (1),

14 including the consideration to be received by the United

15 States under the agreement. The Secretary may not enter

16 into the agreement until the end of the 30-day period be17 ginning on the date the appropriate committees of Con18 gress receive the report regarding the agreement.

19 ‘‘(5) The Secretary may require any additional terms

20 and conditions in connection with an agreement author21 ized by this subsection as the Secretary considers appro22 priate to protect the interests of the United States.’’.

23 (c) REGULATIONS.—Not later than nine months after

24 the date of the enactment of this Act, the Secretary of

25 Defense shall prescribe any regulations necessary to carry
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1 out subsection (e) of section 204 of the Defense Authoriza2 tion Amendments and Base Closure and Realignment Act

3 (title II of Public Law 100–526; 10 U.S.C. 2687 note),

4 as added by subsection (a), and subsection (f) of section

5 2905 of the Defense Base Closure and Realignment Act

6 of 1990 (part A of title XXIX of Public Law 101–510;

7 10 U.S.C. 2687 note), as added by subsection (b).

8 SEC. 2812. DEPOSIT OF PROCEEDS FROM LEASES OF PROP9 ERTY LOCATED AT INSTALLATIONS BEING

10 CLOSED OR REALIGNED.

11 (a) EXCEPTION TO EXISTING REQUIREMENTS.—Sec12 tion 2667(d) of title 10, United States Code, is amended—

13 (1) in paragraph (1)(A)(ii), by inserting ‘‘or

14 (5)’’ after ‘‘paragraph (4)’’; and

15 (2) by adding at the end the following new

16 paragraph:

17 ‘‘(5) Money rentals received by the United States

18 from a lease under subsection (f) shall be deposited into

19 the relevant account established under section 207(a) of

20 the Defense Authorization Amendments and Base Closure

21 and Realignment Act (Public Law 100–526; 10 U.S.C.

22 2687 note) or section 2906(a) of the Defense Base Closure

23 and Realignment Act of 1990 (part A of title XXIX of

24 Public Law 101–510; 10 U.S.C. 2687 note).’’.
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1 (b) CORRESPONDING AMENDMENTS TO BASE CLO2 SURE LAWS.—(1) Section 207(a) of the Defense Author3 ization Amendments and Base Closure and Realignment

4 Act (Public Law 100–526; 10 U.S.C. 2687 note) is

5 amended—

6 (A) in paragraph (2)—

7 (i) by striking out ‘‘and’’ at the end of

8 subparagraph (B);

9 (ii) by striking out the period at the end

10 of subparagraph (C) and inserting in lieu there11 of ‘‘; and’’; and

12 (iii) by adding at the end the following new

13 subparagraph:

14 ‘‘(D) proceeds from leases of property under

15 section 2667(f) of title 10, United States Code, at

16 a military installation to be closed or realigned

17 under this title.’’; and

18 (B) in paragraph (7), by striking out ‘‘transfer

19 or disposal’’ and inserting in lieu thereof ‘‘lease,

20 transfer, or disposal’’.

21 (2) Section 2906(a)(2) of the Defense Base Closure

22 and Realignment Act of 1990 (part A of title XXIX of

23 Public Law 101–510; 10 U.S.C. 2867 note) is amended—
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1 (A) in subparagraph (C), by striking out

2 ‘‘transfer or disposal’’ and inserting in lieu thereof

3 ‘‘lease, transfer, or disposal’’; and

4 (B) in subparagraph (D), by striking out

5 ‘‘transfer or disposal’’ and inserting in lieu thereof

6 ‘‘lease, transfer, or disposal’’.

7 SEC. 2813. AGREEMENTS FOR CERTAIN SERVICES AT IN8 STALLATIONS BEING CLOSED.

9 (a) CLOSURES UNDER 1988 ACT.—Section 204(b)(8)

10 of the Defense Authorization Amendments and Base Clo11 sure and Realignment Act (Public Law 100–526; 10

12 U.S.C. 2687 note) is amended by striking out subpara13 graph (A) and inserting in lieu thereof the following new

14 subparagraph:

15 ‘‘(A) Subject to subparagraph (C), the Secretary may

16 enter into agreements (including contracts, cooperative

17 agreements, or other arrangements for reimbursement)

18 with local governments for the provision of police or secu19 rity services, fire protection services, airfield operation

20 services, or other community services by such governments

21 at military installations to be closed under this title if the

22 Secretary determines that the provision of such services

23 under such an agreement is in the best interests of the

24 Department of Defense.’’.
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1 (b) CLOSURES UNDER 1990 ACT.—Section

2 2905(b)(8) of the Defense Base Closure and Realignment

3 Act of 1990 (part A of title XXIX of Public Law 101–

4 510; 10 U.S.C. 2867 note) is amended by striking out sub5 paragraph (A) and inserting in lieu thereof the following

6 new subparagraph:

7 ‘‘(A) Subject to subparagraph (C), the Secretary may

8 enter into agreements (including contracts, cooperative

9 agreements, or other arrangements for reimbursement)

10 with local governments for the provision of police or secu11 rity services, fire protection services, airfield operation

12 services, or other community services by such governments

13 at military installations to be closed under this part if the

14 Secretary determines that the provision of such services

15 under such an agreement is in the best interests of the

16 Department of Defense.’’.

17 SEC. 2814. REMOVAL OF BASE CLOSURE PROPERTIES FROM

18 APPLICATION OF SECTION 501 OF THE STEW19 ART B. MCKINNEY HOMELESS ASSISTANCE

20 ACT.

21 (a) CLOSURES UNDER 1988 ACT.—(1) Section

22 204(b) of the Defense Authorization Amendments and

23 Base Closure and Realignment Act (Public Law 100–526;

24 10 U.S.C. 2687 note) is amended by striking out para-
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1 graph (6) and inserting in lieu thereof the following new

2 paragraph:

3 ‘‘(6) Section 501 of the Stewart B. McKinney Home4 less Assistance Act (42 U.S.C. 11411) shall not apply with

5 respect to the transfer or disposal of real property located

6 at military installations closed or realigned under this

7 title.’’.

8 (b) CLOSURES UNDER 1990 ACT.—(1) Section

9 2905(b) of the Defense Base Closure and Realignment Act

10 of 1990 (part A of title XXIX of Public Law 101–510;

11 10 U.S.C. 2687 note) is amended by striking out para12 graphs (6) and (7) and inserting in lieu thereof the follow13 ing new paragraph:

14 ‘‘(7) Section 501 of the Stewart B. McKinney Home15 less Assistance Act (42 U.S.C. 11411) shall not apply with

16 respect to the transfer or disposal of real property located

17 at military installations closed or realigned under this

18 part.’’.

19 Subtitle C—Land Conveyances

20 Generally

21 SEC. 2821. TRANSFER OF JURISDICTION, FORT SAM HOUS22 TON, TEXAS.

23 (a) TRANSFER OF LAND FOR NATIONAL CEME24 TERY.—The Secretary of the Army may transfer, without

25 reimbursement, to the administrative jurisdiction of the
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1 Secretary of Veterans Affairs a parcel of real property (in2 cluding any improvements thereon) consisting of approxi3 mately 53 acres and comprising a portion of Fort Sam

4 Houston, Texas.

5 (b) USE OF LAND.—The Secretary of Veterans Af6 fairs shall use the real property transferred under sub7 section (a) as a national cemetery under chapter 24 of

8 title 38, United States Code.

9 (c) RETURN OF UNUSED LAND.—If the Secretary of

10 Veterans Affairs determines that any portion of the real

11 property transferred under subsection (a) is not needed

12 for use as a national cemetery, the Secretary of Veterans

13 Affairs shall return such portion to the administrative ju14 risdiction of the Secretary of the Army.

15 (d) LEGAL DESCRIPTION.—The exact acreage and

16 legal description of the real property to be transferred

17 under this section shall be determined by surveys that are

18 satisfactory to the Secretary of the Army. The cost of such

19 surveys shall be borne by the Secretary of Veterans Af20 fairs.

21 (e) ADDITIONAL TERMS AND CONDITIONS.—The

22 Secretary of the Army may require such additional terms

23 and conditions in connection with the transfer under this

24 section as the Secretary of the Army considers appropriate

25 to protect the interests of the United States.
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1 SEC. 2822. LAND ACQUISITION OR EXCHANGE, SHAW AIR

2 FORCE BASE, SUMTER, SOUTH CAROLINA.

3 (a) LAND ACQUISITION.—By means of an exchange

4 of property, acceptance as a gift, or other means that does

5 not require the use of appropriated funds, the Secretary

6 of the Air Force may acquire all right, title, and interest

7 in and to a parcel of real property (together with any im8 provements thereon) consisting of approximately 1,100

9 acres and located adjacent to the eastern end of Shaw Air

10 Force Base, South Carolina, and extending to Stamey

11 Livestock Road in Sumter County, South Carolina.

12 (b) LAND EXCHANGE AUTHORIZED.—For purposes

13 of acquiring the real property described in subsection (a),

14 the Secretary may participate in a land exchange and con15 vey all right, title, and interest of the United States in

16 and to a parcel of real property in the possession of the

17 Air Force if—

18 (1) the Secretary determines that the land ex19 change is in the best interests of the Air Force; and

20 (2) the fair market value of the Air Force par21 cel to be conveyed does not exceed the fair market

22 value of the parcel to be acquired.

23 (c) DETERMINATIONS OF FAIR MARKET VALUE.—

24 The Secretary shall determine the fair market value of the

25 parcels of real property to be conveyed pursuant to sub26 sections (a) and (b). Such determinations shall be final.
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1 (d) DESCRIPTIONS OF PROPERTY.—The exact acre2 age and legal descriptions of the parcels of real property

3 to be conveyed pursuant to subsections (a) and (b) shall

4 be determined by surveys that are satisfactory to the Sec5 retary.

6 (e) ADDITIONAL TERMS AND CONDITIONS.—The

7 Secretary may require such additional terms and condi8 tions in connection with the acquisition under subsection

9 (a) or conveyance under subsection (b) as the Secretary

10 considers appropriate to protect the interests of the Unit11 ed States.

12 (f) REVERSION OF GIFT CONVEYANCE.—If the Sec13 retary acquires the real property described in subsection

14 (a) by way of gift, the Secretary may accept in the deed

15 of conveyance terms or conditions that require that the

16 land be reconveyed to the donor, or the heirs of the donor,

17 if Shaw Air Force Base ceases operations and is closed.

18 SEC. 2823. TRANSFER OF CERTAIN REAL PROPERTY AT

19 NAVAL WEAPONS INDUSTRIAL RESERVE

20 PLANT, CALVERTON, NEW YORK, FOR USE AS

21 NATIONAL CEMETERY.

22 (a) TRANSFER AUTHORIZED.—Notwithstanding sec23 tion 2854 of the Military Construction Authorization Act

24 for Fiscal Year 1993 (division B of Public Law 102–484;

25 106 Stat. 2626), the Secretary of the Navy may transfer,
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1 without reimbursement, to the Secretary of Veterans Af2 fairs a parcel of real property consisting of approximately

3 150 acres located adjacent to the Calverton National Cem4 etery, Calverton, New York, and comprising a portion of

5 the buffer zone of the Naval Weapons Industrial Reserve

6 Plant, Calverton.

7 (b) USE OF PROPERTY.—The Secretary of Veterans

8 Affairs shall use the real property transferred under sub9 section (a) as an addition to the Calverton National Ceme10 tery and administer such real property pursuant to chap11 ter 24 of title 38, United States Code.

12 (c) SURVEYS.—The cost of any surveys necessary for

13 the transfer of jurisdiction of the real property described

14 in subsection (a) from the Secretary of the Navy to the

15 Secretary of Veterans Affairs shall be borne by the Sec16 retary of Veterans Affairs.

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

18 (a) CONVEYANCE AUTHORIZED.—The Secretary of

19 the Army may convey to the City of Seaside, California

20 (in this section referred to as the ‘‘City’’), all right, title,

21 and interest of the United States in and to a parcel of

22 real property (including improvements thereon) consisting

23 of approximately 477 acres located in Monterey County,

24 California, and comprising a portion of the former Fort

25 Ord Military Complex. The real property to be conveyed
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1 to the City includes the two Fort Ord Golf Courses, Black

2 Horse and Bayonet, and the Hayes Housing Facilities.

3 (b) CONSIDERATION.—As consideration for the con4 veyance of the real property and improvements under sub5 section (a), the City shall pay to the United States an

6 amount equal to the fair market value of the property to

7 be conveyed, as determined by the Secretary under such

8 terms and conditions as are determined to be fair and eq9 uitable to both parties.

10 (c) USE AND DEPOSIT OF PROCEEDS.—(1) From the

11 funds paid by the City under subsection (b), the Secretary

12 shall deposit in the Morale, Welfare, and Recreation Fund

13 Account of the Department of the Army an amount equal

14 to the portion of such funds corresponding to the fair mar15 ket value of the two Fort Ord Golf Courses conveyed

16 under subsection (a), as established under subsection (b).

17 (2) The Secretary shall deposit the balance of the

18 funds paid by the City under subsection (b), after deduct19 ing the amount deposited under paragraph (1), in the De20 partment of Defense Base Closure Account 1990.

21 (d) DESCRIPTION OF PROPERTY.—The exact acreage

22 and legal description of the real property (including im23 provements thereon) to be conveyed under subsection (a)

24 shall be determined by a survey satisfactory to the Sec-
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1 retary and the City. The cost of the survey shall be borne

2 by the City.

3 (e) ADDITIONAL TERMS AND CONDITIONS.—The

4 Secretary may require such additional terms and condi5 tions in connection with the conveyance under this section

6 as the Secretary considers appropriate to protect the inter7 ests of the United States.

8 SEC. 2825. LAND CONVEYANCE, INDIANA ARMY AMMUNI9 TION PLANT, CHARLESTOWN, INDIANA.

10 (a) CONVEYANCE AUTHORIZED.—The Secretary of

11 the Army may convey, without consideration, to the State

12 of Indiana (in this section referred to as the ‘‘State’’), all

13 right, title, and interest of the United States in and to

14 a parcel of real property, including any improvements

15 thereon, that consists of approximately 1125 acres at the

16 inactivated Indiana Army Ammunition Plant in Charles17 town, Indiana, and is the subject of a 25-year lease be18 tween the Secretary and the State.

19 (b) CONDITION OF CONVEYANCE.—The conveyance

20 authorized under subsection (a) shall be subject to the

21 condition that the State use the conveyed property for rec22 reational purposes.

23 (c) DESCRIPTION OF PROPERTY.—The exact acreage

24 and legal description of the real property to be conveyed

25 under subsection (a) shall be determined by a survey satis-
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1 factory to the Secretary. The cost of such survey shall be

2 borne by the State.

3 (d) ADDITIONAL TERMS AND CONDITIONS.—The

4 Secretary may require such additional terms and condi5 tions in connection with the conveyance under subsection

6 (a) as the Secretary considers appropriate to protect the

7 interests of the United States.

8 SEC. 2826. LAND CONVEYANCE, NAVAL AIR STATION, PEN9 SACOLA, FLORIDA.

10 (a) CONVEYANCE AUTHORIZED.—The Secretary of

11 the Navy may convey to West Florida Developers, Inc. (in

12 this section referred to as ‘‘WFD’’), all right, title, and

13 interest of the United States in and to a parcel of unim14 proved real property consisting of approximately 135 acres

15 at Naval Air Station, Pensacola, Florida.

16 (b) CONSIDERATION.—(1) As consideration for the

17 conveyance under subsection (a), WFD shall agree to re18 strict the use of all lands located within the Air Installa19 tion Compatible Use Zones of Naval Air Station Pensacola

20 and owned by WFD at the time of the conveyance under

21 subsection (a) in such manner as specified by the Sec22 retary. The lands subject to such restriction shall total at

23 least 300 acres.

24 (2) If the fair market value of the property conveyed

25 under subsection (a) is more than the fair market value
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1 of the restriction on usage under paragraph (1), WFD

2 shall pay to the United States an amount equal to the

3 difference between the fair market values.

4 (c) DETERMINATION OF FAIR MARKET VALUE.—The

5 Secretary shall determine the fair market value of the

6 property to be conveyed under subsection (a) and the fair

7 market value of the restriction on usage under subsection

8 (b)(1). Such determination shall be final.

9 (d) DESCRIPTION OF PROPERTY.—The exact acreage

10 and legal description of the real property to be conveyed

11 under subsection (a) shall be determined by a survey satis12 factory to the Secretary. The cost of such survey shall be

13 borne by WFD.

14 (e) ADDITIONAL TERMS AND CONDITIONS.—The

15 Secretary may require such additional terms and condi16 tions in connection with the conveyance authorized by sub17 section (a) as the Secretary considers appropriate to pro18 tect the interests of the United States.

19 SEC. 2827. LAND CONVEYANCE, AVON PARK AIR FORCE

20 RANGE, SEBRING, FLORIDA.

21 (a) CONVEYANCE AUTHORIZED.—The Secretary of

22 the Air Force may convey, without consideration, to High23 lands County, Florida (in this section referred to as the

24 ‘‘County’’), all right, title, and interest of the United

25 States in and to a parcel of real property (including any
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1 improvements thereon) located within the boundaries of

2 the Avon Park Air Force Range near Sebring, Florida,

3 which has previously served as the location of a support

4 complex and recreational facilities for the Avon Park Air

5 Force Range.

6 (b) CONDITIONS OF CONVEYANCE.—The conveyance

7 authorized under subsection (a) shall be subject to the

8 conditions that the County—

9 (1) directly or through an agreement with an

10 appropriate public or private entity, use the con11 veyed property, including the support complex and

12 recreational facilities, for operation of a juvenile or

13 other correctional facility; and

14 (2) enter into an agreement with the Secretary

15 to reconvey the property to the United States if the

16 Secretary determines that the conveyed property is

17 necessary to accomplish the military mission of the

18 Avon Park Air Force Range.

19 (c) REVERSIONARY INTEREST.—If the Secretary de20 termines at any time that the property conveyed under

21 subsection (a) is not being used in accordance with sub22 section (b), all right, title, and interest in the property

23 shall revert to the United States, and the United States

24 shall have the right of immediate entry onto the property.
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1 (d) DESCRIPTION OF PROPERTY.—The exact acreage

2 and legal description of the real property to be conveyed

3 under subsection (a) shall be determined by a survey satis4 factory to the Secretary. The cost of such survey shall be

5 borne by the County.

6 (e) ADDITIONAL TERMS AND CONDITIONS.—The

7 Secretary may require such additional terms and condi8 tions in connection with the conveyance under this section

9 as the Secretary considers appropriate to protect the inter10 ests of the United States.

11 SEC. 2828. LAND CONVEYANCE, PARKS RESERVE FORCES

12 TRAINING AREA, DUBLIN, CALIFORNIA.

13 (a) CONVEYANCE AUTHORIZED.—(1) Except as pro14 vided in paragraph (2), the Secretary of the Army may

15 convey to the County of Alameda, California (in this sec16 tion referred to as the ‘‘County’’), all right, title, and in17 terest of the United States in and to a parcel of real prop18 erty consisting of approximately 31 acres, together with

19 improvements thereon, located at Parks Reserve Forces

20 Training Area, Dublin, California.

21 (2) The conveyance authorized by this section shall

22 not include any oil, gas, or mineral interest of the United

23 States in the real property to be conveyed.

24 (b) CONSIDERATION.—(1) As consideration for the

25 conveyance under subsection (a)(1), the County shall pro-
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1 vide the Army with services at the portion of Parks Re2 serve Forces Training Area retained by the Army—

3 (A) to relocate the main gate of the retained

4 Army Training Area from Dougherty Road to Dub5 lin Boulevard across from the Bay Area Rapid Tran6 sit District East Dublin station, including the clo7 sure of the existing main gate on Dougherty Road,

8 construction of a security facility, and construction

9 of a roadway from the new entrance to Fifth Street;

10 (B) to fence and landscape the southern bound11 ary of the retained Army Training Area installation

12 located northerly of Dublin Boulevard;

13 (C) to fence and landscape the eastern bound14 ary of the retained Army Training Area from Dublin

15 Boulevard to Gleason Drive;

16 (D) to resurface roadways within the retained

17 Army Training Area;

18 (E) to provide such other services in connection

19 with the retained Army Training Area, including re20 location or reconstruction of water lines, relocation

21 or reconstruction of sewer lines, construction of

22 drainage improvements, and construction of build23 ings, as the Secretary and the County may deter24 mine to be appropriate; and
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1 (F) to provide for and fund any environmental

2 mitigation that is necessary as a result of a change

3 in use of the conveyed property by the County.

4 (2) The detailed specifications for the services to be

5 provided under paragraph (1) may be determined and ap6 proved on behalf of the Secretary by the Commander of

7 Parks Reserve Forces Training Area. The preparation

8 costs of such specifications shall be borne by the County.

9 (3) The value of improvements and services received

10 by the United States from the County under paragraph

11 (1) must be equal to or exceed the appraised value of the

12 real property to be conveyed under subsection (a)(1). The

13 appraisal of the value of the property shall be subject to

14 Government review and approval.

15 (c) DESCRIPTION OF PROPERTY.—The exact acreage

16 and legal description of the real property to be conveyed

17 under subsection (a)(1) shall be determined by a survey

18 satisfactory to the Secretary. The cost of such survey shall

19 be borne by the County.

20 (d) TIME FOR TRANSFER OF TITLE.—The transfer

21 of title to the County under subsection (a)(1) may be exe22 cuted by the Secretary only upon the satisfactory guaran23 tee by the County of completion of the services to be pro24 vided under subsection (b).
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1 (e) ADDITIONAL TERMS AND CONDITIONS.—The

2 Secretary may require such additional terms and condi3 tions in connection with the conveyance under subsection

4 (a)(1) as the Secretary considers appropriate to protect

5 the interests of the United States.

6 SEC. 2829. LAND CONVEYANCE, HOLSTON ARMY AMMUNI7 TION PLANT, MOUNT CARMEL, TENNESSEE.

8 (a) CONVEYANCE AUTHORIZED.—The Secretary of

9 the Army may convey, without reimbursement, to the City

10 of Mount Carmel, Tennessee (in this section referred to

11 as the ‘‘City’’), all right, title, and interest of the United

12 States in and to a parcel of real property consisting of

13 approximately 6.5 acres, together with any improvements

14 thereon, located at Holston Army Ammunition Plant, Ten15 nessee. The property is located adjacent to the Mount Car16 mel Cemetery and is intended for expansion of the ceme17 tery.

18 (b) DESCRIPTION OF PROPERTY.—The exact acreage

19 and legal description of the real property to be conveyed

20 under subsection (a) shall be determined by a survey satis21 factory to the Secretary. The cost of such survey shall be

22 borne by the City.

23 (c) ADDITIONAL TERMS AND CONDITIONS.—The

24 Secretary may require such additional terms and condi25 tions in connection with the conveyance under subsection
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1 (a) as the Secretary considers appropriate to protect the

2 interests of the United States.

3 SEC. 2830. LAND CONVEYANCE, NAVAL WEAPONS INDUS4 TRIAL RESERVE PLANT, MCGREGOR, TEXAS.

5 (a) CONVEYANCE AUTHORIZED.—The Secretary of

6 the Navy may convey, without consideration, to the City

7 of McGregor, Texas (in this section referred to as the

8 ‘‘City’’), all right, title, and interest of the United States

9 in and to a parcel of real property, including any improve10 ments thereon, containing the Naval Weapons Industrial

11 Reserve Plant in McGregor, Texas. After screening the fa12 cilities, equipment, and fixtures (including special tooling

13 and special test equipment) located on the parcel for other

14 uses within the Department of the Navy, the Secretary

15 may include in the conveyance remaining facilities, equip16 ment, and fixtures if the Secretary determines that manu17 facturing activities requiring the use of such facilities,

18 equipment, and fixtures are likely to continue or be rein19 stated on the parcel after conveyance.

20 (b) LEASE AUTHORITY.—Until such time as the real

21 property described in subsection (a) is conveyed by deed,

22 the Secretary may lease the property, along with improve23 ments thereon, to the City in exchange for security serv24 ices, fire protection, and maintenance provided by the City

25 for the property.
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1 (c) CONDITION OF CONVEYANCE.—The conveyance

2 authorized under subsection (a) shall be subject to the

3 condition that the City, directly or through an agreement

4 with a public or private entity, use the conveyed property

5 (or offer the conveyed property for use) for economic rede6 velopment to replace all or a part of the economic activity

7 being lost at the parcel.

8 (d) DESCRIPTION OF PROPERTY.—The exact acreage

9 and legal description of the real property to be conveyed

10 under subsection (a) shall be determined by a survey satis11 factory to the Secretary. The cost of such survey shall be

12 borne by the City.

13 (e) ADDITIONAL TERMS AND CONDITIONS.—The

14 Secretary may require such additional terms and condi15 tions in connection with the conveyance under subsection

16 (a) or a lease under subsection (b) as the Secretary consid17 ers appropriate to protect the interests of the United

18 States.

19 SEC. 2831. TRANSFER OF JURISDICTION AND LAND CON20 VEYANCE, FORT DEVENS MILITARY RESERVA21 TION, MASSACHUSETTS.

22 (a) TRANSFER OF LAND FOR WILDLIFE REFUGE.—

23 Subject to subsection (b), the Secretary of the Army shall

24 transfer, without reimbursement, to the administrative ju25 risdiction of the Secretary of the Interior that portion of
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1 Fort Devens Military Reservation in the State of Massa2 chusetts that is situated south of Massachusetts State

3 Route 2, for inclusion in the Oxbow National Wildlife Ref4 uge. The transfer shall be made as soon as possible after

5 the date on which the property is determined to be excess

6 to the needs of the Department of Defense.

7 (b) LAND CONVEYANCE AUTHORIZED.—The Sec8 retary of the Army shall convey to the Town of Lancaster,

9 Massachusetts (in this section referred to as the ‘‘Town’’),

10 all right, title, and interest of the United States in and

11 to a parcel of real property consisting of approximately

12 100 acres of the parcel available for transfer under sub13 section (a) and located adjacent to Massachusetts State

14 Highway 70.

15 (c) LEGAL DESCRIPTION.—(1) The exact acreage

16 and legal description of the real property to be transferred

17 under subsection (a) shall be determined by surveys that

18 are mutually satisfactory to the Secretary of the Army and

19 the Secretary of the Interior. The cost of such surveys

20 shall be borne by the Secretary of the Interior.

21 (2) The exact acreage and legal description of the real

22 property to be conveyed under subsection (b) shall be de23 termined by surveys that are mutually satisfactory to the

24 Secretary of the Army, the Secretary of the Interior, and
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1 the Board of Selectman of the Town. The cost of such

2 surveys shall be borne by the Town.

3 (d) ADDITIONAL TERMS AND CONDITIONS.—The

4 Secretary of the Army may require such additional terms

5 and conditions in connection with the transfer and convey6 ance under this section as the Secretary of the Army con7 siders appropriate to protect the interests of the United

8 States.

9 SEC. 2832. LAND CONVEYANCE, ELMENDORF AIR FORCE

10 BASE, ALASKA.

11 (a) SALE TO PRIVATE PERSON AUTHORIZED.—(1)

12 The Secretary of the Air Force may sell to a private per13 son all right, title, and interest of the United States in

14 and to a parcel of real property consisting of approxi15 mately 31.69 acres that is located at Elmendorf Air Force

16 Base, Anchorage, Alaska, and identified in land lease W–

17 95–507–ENG–58.

18 (2) The Secretary may select as purchaser of the real

19 property such private person as the Secretary, in the sole

20 exercise of the Secretary’s discretion, considers appro21 priate. The conveyance shall be subject to the condition

22 that the purchaser agree to provide appropriate mainte23 nance for the apartment complex located on the property

24 to be conveyed and used by members of the Armed Forces
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1 stationed at Elmendorf Air Force Base and their depend2 ents.

3 (b) CONSIDERATION.—In consideration for the con4 veyance under subsection (a), the purchaser shall pay to

5 the United States an amount equal to the fair market

6 value of the real property to be conveyed, as determined

7 by an appraisal satisfactory to the Secretary. In determin8 ing the fair market value of the real property, the Sec9 retary shall consider the property as encumbered by land

10 lease W–95–507–ENG–58, with an expiration date of

11 June 13, 2024.

12 (c) DEPOSIT OF PROCEEDS.—The Secretary shall de13 posit the amount received from the purchaser under sub14 section (b) in the special account established under section

15 204(h)(2) of the Federal Property and Administrative

16 Services Act of 1949 (40 U.S.C. 585(h)(2)).

17 (d) DESCRIPTION OF PROPERTY.—The exact acreage

18 and legal description of the real property to be conveyed

19 under subsection (a) shall be determined by a survey satis20 factory to the Secretary. The cost of such survey shall be

21 borne by the purchaser.

22 (e) ADDITIONAL TERMS AND CONDITIONS.—The

23 Secretary may require such additional terms and condi24 tions in connection with the conveyance under this section
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1 as the Secretary considers appropriate to protect the inter2 ests of the United States.

3 SEC. 2833. LAND CONVEYANCE ALTERNATIVE TO EXISTING

4 LEASE AUTHORITY, NAVAL SUPPLY CENTER,

5 OAKLAND, CALIFORNIA.

6 Section 2834(b) of the Military Construction Author7 ization Act for Fiscal Year 1993 (division B of Public Law

8 102–484; 106 Stat. 2614), as amended by section 2833

9 of the Military Construction Authorization Act for Fiscal

10 Year 1994 (division B of Public Law 103–160) and sec11 tion 2821 of the Military Construction Authorization Act

12 for Fiscal Year 1995 (division B of Public Law 103–337),

13 is further amended by adding at the end the following new

14 paragraphs:

15 ‘‘(4) In lieu of entering into a lease under paragraph

16 (1), or in place of an existing lease under such paragraph,

17 the Secretary may convey, without consideration, the prop18 erty described in such paragraph to the City of Oakland,

19 California, the Port of Oakland, California, or the City

20 of Alameda, California, under such terms and conditions

21 as the Secretary considers appropriate.

22 ‘‘(5) The exact acreage and legal description of any

23 property conveyed under paragraph (4) shall be deter24 mined by a survey satisfactory to the Secretary. The cost
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1 of each survey shall be borne by the recipient of the prop2 erty.’’.

3 SEC. 2834. LAND CONVEYANCE, ARMY RESERVE CENTER,

4 YOUNGSTOWN, OHIO.

5 (a) CONVEYANCE AUTHORIZED.—The Secretary of

6 the Army may convey, without consideration, to the City

7 of Youngstown, Ohio, all right, title, and interest of the

8 United States in and to a parcel of excess real property,

9 including improvements thereon, that is located at 399

10 Miller Street in Youngstown, Ohio, and contains the

11 Kefurt Army Reserve Center.

12 (b) CONDITION OF CONVEYANCE.—The conveyance

13 authorized under subsection (a) shall be subject to the

14 condition that the City of Youngstown retain the conveyed

15 property for the use and benefit of the Youngstown Fire

16 Department.

17 (c) DESCRIPTION OF PROPERTY.—The exact acreage

18 and legal description of the real property to be conveyed

19 under subsection (a) shall be determined by a survey satis20 factory to the Secretary. The cost of such survey shall be

21 borne by the City of Youngstown.

22 (d) ADDITIONAL TERMS AND CONDITIONS.—The

23 Secretary may require such additional terms and condi24 tions in connection with the conveyance under subsection
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1 (a) as the Secretary considers appropriate to protect the

2 interests of the United States.

3 SEC. 2835. MODIFICATION OF LAND CONVEYANCE, NAVAL

4 WEAPONS INDUSTRIAL RESERVE PLANT,

5 CALVERTON, NEW YORK.

6 (a) CONDITION ON CONVEYANCE.—Subsection (b) of

7 section 2833 of the Military Construction Authorization

8 Act for Fiscal Year 1995 (division B of Public Law 103–

9 337; 108 Stat. 3061) is amended by striking out ‘‘to re10 place all or a part of the economic activity lost at the

11 Naval Weapons Industrial Reserve Plant’’.

12 (b) REMOVAL OF REVERSIONARY INTEREST; ADDI13 TION OF LEASE AUTHORITY.—Subsection (c) of such sec14 tion is amended to read as follows:

15 ‘‘(c) LEASE AUTHORITY.—Until such time as the real

16 property described in subsection (a) is conveyed by deed,

17 the Secretary may lease the property, along with improve18 ments thereon, to the Community Development Agency in

19 exchange for security services, fire protection, and mainte20 nance provided by the Community Development Agency

21 for the property.’’.

22 (c) CONFORMING AMENDMENTS.—Subsection (e) of

23 such section is amended by striking out ‘‘subsection (a)’’

24 and inserting in lieu thereof ‘‘subsection (a) or a lease

25 under subsection (c)’’.
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1 SEC. 2836. LAND EXCHANGE, FORT LEWIS, WASHINGTON.

2 (a) CONVEYANCE AUTHORIZED.—The Secretary of

3 the Army may convey to Weyerhaeuser Real Estate Com4 pany, Tacoma, Washington (in this section referred to as

5 ‘‘WRECO’’), all right, title, and interest of the United

6 States in and to a parcel of real property at Fort Lewis,

7 Washington, known as an unimproved portion of Tract

8 1000 (formerly being in the DuPont Steilacoom Road,

9 consisting of approximately 1.23 acres), and Tract 26E,

10 0.03 acre.

11 (b) CONSIDERATION.—As consideration for the con12 veyance authorized by subsection (a), WRECO shall con13 vey or cause to be conveyed to the United States by war14 ranty deed all right, title, and interest in and to a 0.39

15 acre parcel of real property located within the boundaries

16 of Fort Lewis, Washington, together with other consider17 ation acceptable to the Secretary. The total consideration

18 conveyed to the United States shall not be less than the

19 fair market value of the land conveyed under subsection

20 (a).

21 (c) DETERMINATION OF FAIR MARKET VALUE.—The

22 determinations of the Secretary of the Army regarding the

23 fair market values of the parcels of real property and im24 provements to be conveyed pursuant to subsections (a)

25 and (b) shall be final.
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1 (d) DESCRIPTION OF PROPERTY.—The exact acreage

2 and legal description of the parcels of real property to be

3 conveyed pursuant to subsections (a) and (b) shall be de4 termined by surveys that are satisfactory to the Secretary

5 of the Army. The cost of such surveys shall be borne by

6 WRECO.

7 (e) EFFECT ON EXISTING REVERSIONARY INTER8 EST.—The Secretary may enter into an agreement with

9 the appropriate officials of Pierce County, Washington,

10 under which—

11 (1) the existing reversionary interest of Pierce

12 County in the lands to be conveyed by the United

13 States under subsection (a) is extinguished; and

14 (2) the conveyance to the United States under

15 subsection (b) is made subject to a similar reversion16 ary interest in favor of Pierce County in the lands

17 conveyed under such subsection.

18 (f) ADDITIONAL TERMS AND CONDITIONS.—The Sec19 retary may require such additional terms and conditions

20 in connection with the conveyances under this section as

21 the Secretary considers appropriate to protect the inter22 ests of the United States.
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1 SEC. 2837. MODIFICATION OF EXISTING LAND CONVEY2 ANCE, HAMILTON AIR FORCE BASE.

3 (a) AUTHORITIES IN EVENT OF PARTIAL SALE.—In

4 the event that the purchaser purchases only a portion of

5 the Sale Parcel and exercises its option to withdraw from

6 the sale as to the rest of the Sale Parcel, the portion of

7 the Sale Parcel that is not purchased (other than Landfill

8 26 and an appropriate buffer area around it and the

9 groundwater treatment facility site), together with any of

10 the land referred to in section 9099(e) of Public Law 102–

11 396 that is not purchased by the purchaser, may be sold

12 to the City of Novato, in the State of California, for the

13 sum of One Dollar as a public benefit transfer for school,

14 classroom or other educational use, for use as a public

15 park or recreation area or for further conveyance as pro16 vided herein, subject to the following restrictions: (1) if

17 the City sells any portion of such land to any third party

18 within 10 years after the transfer to the City, which sale

19 may be made without the foregoing use restrictions, any

20 proceeds received by the City in connection with such sale,

21 minus the demonstrated reasonable costs of conducting

22 the sale and of any improvements made by the City to

23 the land following its acquisition of the land (but only to

24 the extent such improvements increase the value of the

25 portion sold), shall be immediately turned over to the

26 Army in reimbursement of the withdrawal payment made
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1 by the Army to the contract purchaser and the costs of

2 cleaning up the Landfill and (2) until one year following

3 completion of the cleanup of contaminated soil in the

4 Landfill and completion of the groundwater treatment fa5 cilities, the sale must be at a per-acre price for the portion

6 sold that is at least equal to the per-acre contract price

7 paid by the purchaser for the portion of the Sale Parcel

8 purchased under the Agreement and Modification, as

9 amended, and thereafter must be at a price at least equal

10 to the fair market value of the portion sold. The foregoing

11 restrictions shall not apply to a transfer to another public

12 or quasi-public agency for public uses of the kind de13 scribed above. The deed to the City shall contain a clause

14 providing that, if any of the proceeds referred to in clause

15 (1) are not delivered to the Army within 30 days after

16 sale, or any portion of the land not sold as provided herein

17 is used for other than educational, park or recreational

18 uses, title to the applicable portion of such land shall re19 vert to the United States at the election of the Adminis20 trator of the General Services Administration. The Sec21 retary of the Army shall agree to deliver into the applica22 ble closing escrow an acknowledgement of receipt of any

23 proceeds described in clause (1) above and a release of

24 the reverter right as to the affected land, effective upon

25 such receipt.
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1 (b) SPECIAL CONVEYANCE REGARDING BUILDING

2 138 PARCEL.—The Secretary of the Army may convey the

3 Building 138 parcel, which has been designated by the

4 parties as Parcel A4 to the purchaser of the Sale Parcel.

5 The per-acre price for the portion sold shall be at least

6 equal to the per-acre contract price paid by the purchaser

7 for the portion of the Sale Parcel purchased under the

8 Agreement and Modification, dated September 25, 1990,

9 as amended.

10 SEC. 2838. TRANSFER OF JURISDICTION, FORT BLISS,

11 TEXAS.

12 (a) TRANSFER OF LAND FOR NATIONAL CEME13 TERY.—The Secretary of the Army may transfer, without

14 reimbursement, to the administrative jurisdiction of the

15 Secretary of Veterans Affairs a parcel of real property (in16 cluding any improvements thereon) consisting of approxi17 mately 22 acres and comprising a portion of Fort Bliss,

18 Texas.

19 (b) USE OF LAND.—The Secretary of Veterans Af20 fairs shall use the real property transferred under sub21 section (a) as an addition to the Fort Bliss National Cem22 etery and administer such real property pursuant to chap23 ter 24 of title 38, United States Code.

24 (c) RETURN OF UNUSED LAND.—If the Secretary of

25 Veterans Affairs determines that any portion of the real
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1 property transferred under subsection (a) is not needed

2 for use as a national cemetery, the Secretary of Veterans

3 Affairs shall return such portion to the administrative ju4 risdiction of the Secretary of the Army.

5 (d) LEGAL DESCRIPTION.—The exact acreage and

6 legal description of the real property to be transferred

7 under this section shall be determined by surveys that are

8 satisfactory to the Secretary of the Army. The cost of such

9 surveys shall be borne by the Secretary of Veterans Af10 fairs.

11 (e) ADDITIONAL TERMS AND CONDITIONS.—The

12 Secretary of the Army may require such additional terms

13 and conditions in connection with the transfer under this

14 section as the Secretary of the Army considers appropriate

15 to protect the interests of the United States.

16 Subtitle D—Land Conveyances

17 Involving Utilities

18 SEC. 2841. CONVEYANCE OF RESOURCE RECOVERY FACIL19 ITY, FORT DIX, NEW JERSEY.

20 (a) AUTHORITY TO CONVEY.—The Secretary of the

21 Army may convey to Burlington County, New Jersey (in

22 this section referred to as the ‘‘County’’), all right, title,

23 and interest of the United States in and to a parcel of

24 real property at Fort Dix, New Jersey, consisting of ap-
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1 proximately two acres and containing a resource recovery

2 facility, known as the Fort Dix resource recovery facility.

3 (b) RELATED EASEMENTS.—The Secretary may

4 grant to the County any easement that is necessary for

5 access to and operation of the resource recovery facility

6 conveyed under subsection (a).

7 (c) CONDITIONS ON CONVEYANCE.—The conveyance

8 of the resource recovery facility authorized by subsection

9 (a) is subject to the following conditions:

10 (1) That the County accept the resource recov11 ery facility in its existing condition at the time of

12 conveyance.

13 (2) That the County provide refuse and steam

14 service to Fort Dix, New Jersey, at the rate estab15 lished by the appropriate Federal or State regu16 latory authority.

17 (3) That the County comply with all applicable

18 environmental laws and regulations relating to the

19 resource recovery facility, including any permit or li20 cense requirements.

21 (4) That the County assume full responsibility

22 for ownership, operation, maintenance, repair, and

23 all regulatory compliance requirements for the re24 source recovery facility.
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1 (d) CONDITION ON EXPANSION.—The conveyance of

2 the resource recovery facility under subsection (a) shall

3 also be subject to the condition that the County may not

4 expand the resource recovery facility without prior ap5 proval by the Secretary.

6 (e) ENVIRONMENTAL COMPLIANCE.—The County

7 shall be responsible for owning, operating, and upgrading

8 the resource recovery facility in accordance with all appli9 cable Federal, State, and municipal laws and regulations

10 promulgated thereunder.

11 (f) DESCRIPTION OF THE PROPERTY.—The exact

12 acreage and legal description of the real property to be

13 conveyed under subsection (a), and of any easements to

14 be granted under subsection (b), shall be determined by

15 a survey satisfactory to the Secretary. The cost of such

16 survey shall be borne by the County.

17 (g) ADDITIONAL TERMS AND CONDITIONS.—The

18 Secretary may require such additional terms and condi19 tions in connection with the conveyance under subsection

20 (a) and the grant of any easement under subsection (b)

21 as the Secretary considers appropriate to protect the inter22 ests of the United States.
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1 SEC. 2842. CONVEYANCE OF WATER AND WASTEWATER

2 TREATMENT PLANTS, FORT GORDON, GEOR3 GIA.

4 (a) CONVEYANCE AUTHORIZED.—The Secretary of

5 the Army may convey to the city of Augusta, Georgia (in

6 this section referred to as the ‘‘City’’), all right, title, and

7 interest of the United States to several parcels of real

8 property located at Fort Gordon, Georgia, and consisting

9 of approximately seven acres each. The parcels are im10 proved with a water filtration plant, water distribution

11 system with storage tanks, sewage treatment plant, and

12 sewage collection system.

13 (b) RELATED EASEMENTS.—The Secretary may

14 grant to the City any easement that is necessary for access

15 to the real property conveyed under subsection (a) and op16 eration of the conveyed facilities.

17 (c) CONDITIONS ON CONVEYANCE.—The conveyance

18 authorized by subsection (a) is subject to the following

19 conditions:

20 (1) That the City accept the water and

21 wastewater treatment plants and distribution and

22 collection systems in their existing condition at the

23 time of conveyance.

24 (2) That the City provide water and sewer serv25 ice to Fort Gordon, Georgia, at a rate established by
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1 the appropriate Federal or State regulatory author2 ity.

3 (3) That the City comply with all applicable en4 vironmental laws and regulations regarding the real

5 property conveyed under subsection (a), including

6 any permit or license requirements.

7 (4) That the City assume full responsibility for

8 ownership, operation, maintenance, repair, and all

9 regulatory compliance requirements for the water

10 and wastewater treatment plants and distribution

11 and collection systems.

12 (d) CONDITION ON EXPANSION.—The conveyance

13 under subsection (a) shall also be subject to the condition

14 that the City may not expand the water and wastewater

15 treatment plants and distribution and collection systems

16 without prior approval by the Secretary.

17 (e) ENVIRONMENTAL COMPLIANCE.—The City shall

18 be responsible for owning, operating, and upgrading the

19 water and wastewater treatment plants and distribution

20 and collection systems in accordance with all applicable

21 Federal, State, and municipal laws and regulations pro22 mulgated thereunder.

23 (f) DESCRIPTION OF PROPERTY.—The exact acreage

24 and legal description of the real property to be conveyed

25 under subsection (a), and of any easements granted under
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1 subsection (b), shall be determined by a survey satisfac2 tory to the Secretary. The cost of such survey shall be

3 borne by the City.

4 (g) ADDITIONAL TERMS AND CONDITIONS.—The

5 Secretary may require such additional terms and condi6 tions in connection with the conveyance under subsection

7 (a) and the grant of any easement under subsection (b)

8 as the Secretary considers appropriate to protect the inter9 ests of the United States.

10 SEC. 2843. CONVEYANCE OF ELECTRICAL DISTRIBUTION

11 SYSTEM, FORT IRWIN, CALIFORNIA.

12 (a) CONVEYANCE AUTHORIZED.—The Secretary of

13 the Army may convey to the Southern California Edison

14 Company, California (in this section referred to as the

15 ‘‘Company’’), all right, title, and interest of the United

16 States in and to the electrical distribution system located

17 at Fort Irwin, California.

18 (b) DESCRIPTION OF SYSTEM AND CONVEYANCE.—

19 The electrical distribution system authorized to be con20 veyed under subsection (a) consists of approximately 115

21 miles of electrical distribution lines, including poles,

22 switches, reclosers, transformers, regulators, switchgears,

23 and service lines. The conveyance includes the equipment,

24 fixtures, structures, and other improvements the Federal
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1 Government utilizes to provide electrical services at Fort

2 Irwin. The conveyance shall not include any real property.

3 (c) RELATED EASEMENTS.—The Secretary may

4 grant to the Company any easement that is necessary for

5 access to and operation of the electrical distribution sys6 tem conveyed under subsection (a).

7 (d) CONDITIONS ON CONVEYANCE.—The conveyance

8 authorized by subsection (a) is subject to the following

9 conditions:

10 (1) That the Company accept the electrical dis11 tribution system in its existing condition at the time

12 of conveyance.

13 (2) That the Company provide electrical service

14 to Fort Irwin, California, at a rate established by

15 the appropriate Federal or State regulatory author16 ity.

17 (3) That the Company comply with all applica18 ble environmental laws and regulations regarding the

19 electrical distribution system, including any permit

20 or license requirements.

21 (4) That the Company assume full responsibil22 ity for ownership, operation, maintenance, repair,

23 and all regulatory compliance requirements for the

24 electrical distribution system.
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1 (e) CONDITION ON EXPANSION.—The conveyance

2 under subsection (a) shall also be subject to the condition

3 that the Company may not expand the electrical distribu4 tion system without prior approval by the Secretary.

5 (f) ENVIRONMENTAL COMPLIANCE.—The Company

6 shall be responsible for owning, operating, and upgrading

7 the electrical distribution system in accordance with all ap8 plicable Federal, State, and municipal laws and regula9 tions promulgated thereunder.

10 (g) DESCRIPTION OF EASEMENT.—The exact acreage

11 and legal description of any easement granted under sub12 section (c) shall be determined by a survey satisfactory

13 to the Secretary. The cost of such survey shall be borne

14 by the Company.

15 (h) ADDITIONAL TERMS AND CONDITIONS.—The

16 Secretary may require such additional terms and condi17 tions in connection with the conveyance under subsection

18 (a) and the grant of any easement under subsection (c)

19 as the Secretary considers appropriate to protect the inter20 ests of the United States.

21 Subtitle E—Other Matters

22 SEC. 2851. EXPANSION OF AUTHORITY TO SELL ELEC23 TRICITY.

24 (a) INCLUSION OF ADDITIONAL ENERGY PRODUC25 TION FACILITIES.—Subsection (a) of section 2483 of title
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1 10, United States Code, is amended by striking out ‘‘alter2 nate energy and cogeneration type production facilities’’

3 in the first sentence and inserting in lieu thereof ‘‘energy

4 production facilities’’.

5 (b) CLERICAL AMENDMENTS.—(1) The heading of

6 such section is amended to read as follows:

7 ‘‘§ 2483. Special sale authority regarding electricity’’.

8 (2) The table of sections at the beginning of chapter

9 147 of title 10, United States Code, is amended by strik10 ing out the item relating to section 2483 and inserting

11 in lieu thereof the following new item:

‘‘2483. Special sale authority regarding electricity.’’.

12 SEC. 2852. AUTHORITY FOR MISSISSIPPI STATE PORT AU13 THORITY TO USE NAVY PROPERTY AT NAVAL

14 CONSTRUCTION BATTALION CENTER, GULF15 PORT, MISSISSIPPI.

16 (a) JOINT USE AGREEMENT AUTHORIZED.—The

17 Secretary of the Navy may enter into an agreement with

18 the Port Authority of the State of Mississippi (in this sec19 tion referred to as the ‘‘Port Authority’’), under which the

20 Port Authority may use real property comprising up to

21 50 acres located at the Naval Construction Battalion Cen22 ter, Gulfport, Mississippi (in this section referred to as

23 the ‘‘Center’’).

24 (b) TERM OF AGREEMENT.—The agreement author25 ized under subsection (a) may be for an initial period of
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1 not more than 15 years. Under the agreement, the Sec2 retary shall provide the Port Authority with an option to

3 extend the agreement for at least three additional periods

4 of five years each.

5 (c) CONDITIONS ON USE.—The agreement author6 ized under subsection (a) shall require the Port Author7 ity—

8 (1) to suspend operations under the agreement

9 in the event Navy contingency operations are con10 ducted at the Center; and

11 (2) to use the property covered by the agree12 ment in a manner consistent with Navy operations

13 conducted at the Center.

14 (d) CONSIDERATION.—(1) As consideration for the

15 use of the property covered by the agreement under sub16 section (a), the Port Authority shall pay to the Navy an

17 amount equal to the fair market rental value of the prop18 erty, as determined by the Secretary taking into consider19 ation the Port Authority’s use of the property.

20 (2) The Secretary may include a provision in the

21 agreement requiring the Port Authority—

22 (A) to pay the Navy an amount (as determined

23 by the Secretary) to cover the costs of replacing at

24 the Center any facilities vacated by the Navy on ac-
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1 count of the agreement or to construct suitable re2 placement facilities for the Navy; and

3 (B) to pay the Navy an amount (as determined

4 by the Secretary) for the costs of relocating Navy

5 operations from the vacated facilities to the replace6 ment facilities.

7 (e) CONGRESSIONAL NOTIFICATION.—The Secretary

8 may not enter into the agreement authorized by subsection

9 (a) until the end of the 21-day period beginning on the

10 date on which the Secretary submits to Congress a report

11 containing an explanation of the terms of the proposed

12 agreement and a description of the consideration that the

13 Secretary expects to receive under the agreement.

14 (f) USE OF PAYMENT.—(1) In such amounts as are

15 provided in advance in appropriation Acts, the Secretary

16 may use amounts paid under subsection (d)(1) to pay for

17 general supervision, administration, and overhead ex18 penses and for improvement, maintenance, repair, con19 struction, or restoration of the roads, railways, and facili20 ties serving the Center.

21 (2) In such amounts as are provided in advance in

22 appropriation Acts, the Secretary may use amounts paid

23 under subsection (d)(2) to pay for constructing new facili24 ties, or making modifications to existing facilities, that are

25 necessary to replace facilities vacated by the Navy on ac-
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1 count of the agreement under subsection (a) and for relo2 cating operations of the Navy from the vacated facilities

3 to replacement facilities.

4 (g) CONSTRUCTION BY PORT AUTHORITY.—The Sec5 retary may authorize the Port Authority to demolish exist6 ing facilities located on the property covered by the agree7 ment under subsection (a) and, consistent with the restric8 tion specified in subsection (c)(2), construct new facilities

9 on the property for joint use by the Port Authority and

10 the Navy.

11 (h) ADDITIONAL TERMS AND CONDITIONS.—The

12 Secretary may require such additional terms and condi13 tions in connection with the agreement authorized under

14 subsection (a) as the Secretary considers appropriate to

15 protect the interests of the United States.

16 SEC. 2853. PROHIBITION ON JOINT CIVIL AVIATION USE OF

17 NAVAL AIR STATION MIRAMAR, CALIFORNIA.

18 The Secretary of the Navy may not enter into any

19 agreement that would provide for or permit civil aircraft

20 to regularly use Naval Air Station Miramar, California.

21 SEC. 2854. REPORT REGARDING ARMY WATER CRAFT SUP22 PORT FACILITIES AND ACTIVITIES.

23 Not later than February 15, 1996, the Secretary of

24 the Army shall submit to Congress a report describing—
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1 (1) the location, assets, and mission of each

2 Army facility, active or reserve component, that sup3 ports water transportation operations;

4 (2) an infrastructure inventory and utilization

5 rate of each Army facility supporting water trans6 portation operations;

7 (3) options for consolidating these operations to

8 reduce overhead; and

9 (4) actions that can be taken to affirmatively

10 respond to requests from the residents of Marcus

11 Hook, Pennsylvania, to close the Army Reserve facil12 ity located in Marcus Hook and make the facility

13 available for use by the community.

14 DIVISION C—DEPARTMENT OF

15 ENERGY NATIONAL

16 SECURITY AUTHORIZATIONS

17 AND OTHER AUTHORIZATIONS

18 TITLE XXXI—DEPARTMENT OF

19 ENERGY NATIONAL SECURITY

20 PROGRAMS

21 Subtitle A—National Security

22 Programs Authorizations

23 SEC. 3101. WEAPONS ACTIVITIES.

24 (a) STOCKPILE STEWARDSHIP.—Subject to sub25 section (d), funds are hereby authorized to be appro-
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1 priated to the Department of Energy for fiscal year 1996

2 for stockpile stewardship in carrying out weapons activi3 ties necessary for national security programs in the

4 amount of $3,610,914,000, to be allocated as follows:

5 (1) For core stockpile stewardship,

6 $1,189,708,000 for fiscal year 1996, to be allocated

7 as follows:

8 (A) For operation and maintenance,

9 $1,098,403,000.

10 (B) For plant projects (including mainte11 nance, restoration, planning, construction, ac12 quisition, modification of facilities, and the con13 tinuation of projects authorized in prior years,

14 and land acquisition related thereto),

15 $96,305,000, to be allocated as follows:

16 Project 96–D–102, stockpile steward17 ship facilities revitalization, Phase VI, var18 ious locations, $2,520,000.

19 Project 96–D–103, ATLAS, Los Ala20 mos National Laboratory, Los Alamos,

21 New Mexico, $8,400,000.

22 Project 96–D–104, processing and en23 vironmental technology laboratory

24 (PETL), Sandia National Laboratories,

25 Albuquerque, New Mexico, $1,800,000.
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1 Project 96–D–105, contained firing

2 facility addition, Lawrence Livermore Na3 tional Laboratory, Livermore, California,

4 $6,600,000.

5 Project 95–D–102, Chemical and

6 Metallurgy Research Building upgrades

7 project, Los Alamos National Laboratory,

8 Los Alamos, New Mexico, $9,940,000.

9 Project 94–D–102, nuclear weapons

10 research, development, and testing facili11 ties revitalization, Phase V, various loca12 tions, $12,200,000.

13 Project 93–D–102, Nevada support

14 facility, North Las Vegas, Nevada,

15 $15,650,000.

16 Project 90–D–102, nuclear weapons

17 research, development, and testing facili18 ties revitalization, Phase III, various loca19 tions, $6,200,000.

20 Project 88–D–106, nuclear weapons

21 research, development, and testing facili22 ties revitalization, Phase II, various loca23 tions, $27,995,000.

24 (2) For inertial fusion, $240,667,000, to be al25 located as follows:
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1 (A) For operation and maintenance,

2 $203,267,000.

3 (B) For plant projects (including mainte4 nance, restoration, planning, construction, ac5 quisition, modification of facilities, and the con6 tinuation of projects authorized in prior years,

7 and land acquisition related thereto),

8 $37,400,000 to be allocated as follows:

9 Project 96–D–111, national ignition

10 facility, TBD, $37,400,000.

11 (3) For technology transfer, $25,000,000.

12 (4) For Marshall Islands, $6,800,000.

13 (b) STOCKPILE MANAGEMENT.—Subject to sub14 section (d), funds are hereby authorized to be appro15 priated to the Department of Energy for fiscal year 1996

16 for stockpile management in carrying out weapons activi17 ties necessary for national security programs in the

18 amount of $2,142,083,000, to be allocated as follows:

19 (1) For operation and maintenance,

20 $2,028,458,000.

21 (2) For plant projects (including maintenance,

22 restoration, planning, construction, acquisition,

23 modification of facilities, and the continuation of

24 projects authorized in prior years, and land acquisi-
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1 tion related thereto), $113,625,000, to be allocated

2 as follows:

3 Project 96–D–122, sewage treatment qual4 ity upgrade (STQU), Pantex Plant, Amarillo,

5 Texas, $600,000.

6 Project 96–D–123, retrofit HVAC and

7 chillers for ozone protection, Y–12 Plant, Oak

8 Ridge, Tennessee, $3,100,000.

9 Project 96–D–125, Washington measure10 ments operations facility, Andrews Air Force

11 Base, Camp Springs, Maryland, $900,000.

12 Project 96–D–126, tritium loading line

13 modifications, Savannah River Site, South

14 Carolina, $12,200,000.

15 Project 95–D–122, sanitary sewer up16 grade, Y–12 Plant, Oak Ridge, Tennessee,

17 $6,300,000.

18 Project 94–D–124, hydrogen fluoride sup19 ply system, Y–12 Plant, Oak Ridge, Tennessee,

20 $8,700,000.

21 Project 94–D–125, upgrade life safety,

22 Kansas City Plant, Kansas City, Missouri,

23 $5,500,000.
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1 Project 94–D–127, emergency notification

2 system, Pantex Plant, Amarillo, Texas,

3 $2,000,000.

4 Project 94–D–128, environmental safety

5 and health analytical laboratory, Pantex Plant,

6 Amarillo, Texas, $4,000,000.

7 Project 93–D–122, life safety upgrades,

8 Y–12 Plant, Oak Ridge, Tennessee,

9 $7,200,000.

10 Project 93–D–123, complex-21, various lo11 cations, $41,065,000.

12 Project 88–D–122, facilities capability as13 surance program, various locations, $8,660,000.

14 Project 88–D–123, security enhancement,

15 Pantex Plant, Amarillo, Texas, $13,400,000.

16 (c) PROGRAM DIRECTION.—Subject to subsection

17 (d), funds are hereby authorized to be appropriated to the

18 Department of Energy for fiscal year 1996 for program

19 direction in carrying out weapons activities necessary for

20 national security programs in the amount of

21 $118,000,000.

22 (d) ADJUSTMENTS.—The total amount authorized to

23 be appropriated pursuant to this section is the sum of the

24 amounts authorized to be appropriated in subsections (a)

25 through (c) reduced by the sum of—
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1 (1) $25,000,000, for savings resulting from

2 procurement reform; and

3 (2) $86,344,000, for use in prior year balances.

4 SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE

5 MANAGEMENT.

6 (a) CORRECTIVE ACTIVITIES.—Subject to subsection

7 (i), funds are hereby authorized to be appropriated to the

8 Department of Energy for fiscal year 1996 for corrective

9 activities in carrying out environmental restoration and

10 waste management activities necessary for national secu11 rity programs in the amount of $3,406,000, all of which

12 shall be available for the following plant project (including

13 maintenance, restoration, planning, construction, acquisi14 tion, modification of facilities, and land acquisition related

15 thereto):

16 Project 90–D–103, environment, safety and

17 health improvements, weapons research and develop18 ment complex, Los Alamos National Laboratory,

19 Los Alamos, New Mexico.

20 (b) ENVIRONMENTAL RESTORATION.—Subject to

21 subsection (i), funds are hereby authorized to be appro22 priated to the Department of Energy for fiscal year 1996

23 for environmental restoration in carrying out environ24 mental restoration and waste management activities nec-
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1 essary for national security programs in the amount of

2 $1,575,973,000.

3 (c) WASTE MANAGEMENT.—Subject to subsection (i),

4 funds are hereby authorized to be appropriated to the De5 partment of Energy for fiscal year 1996 for waste man6 agement in carrying out environmental restoration and

7 waste management activities necessary for national secu8 rity programs in the amount of $2,351,596,000, to be allo9 cated as follows:

10 (1) For operation and maintenance,

11 $2,168,994,000.

12 (2) For plant projects (including maintenance,

13 restoration, planning, construction, acquisition,

14 modification of facilities, and the continuation of

15 projects authorized in prior years, and land acquisi16 tion related thereto), $182,602,000, to be allocated

17 as follows:

18 Project 96–D–406, K-Basin operations

19 program, Richland, Washington, $26,000,000.

20 Project 96–D–407, mixed waste low level

21 waste treatment projects, Rocky Flats, Golden,

22 Colorado, $2,900,000.

23 Project 96–D–408, waste management up24 grades, various locations, $5,615,000.
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1 Project 95–D–402, install permanent elec2 trical service for the Waste Isolation Pilot

3 Plant, Carlsbad, New Mexico, $4,314,000.

4 Project 95–D–405, industrial landfill V

5 and construction/demolition landfill VII, Phase

6 III, Y–12 Plant, Oak Ridge, Tennessee,

7 $4,600,000.

8 Project 95–D–406, road 5–01 reconstruc9 tion, area 5, Nevada Test Site, Nevada,

10 $1,023,000.

11 Project 94–D–400, high explosive

12 wastewater treatment system, Los Alamos Na13 tional Laboratory, Los Alamos, New Mexico,

14 $4,445,000.

15 Project 94–D–402, liquid waste treatment

16 system, Nevada Test Site, Nevada, $282,000.

17 Project 94–D–404, Melton Valley storage

18 tanks capacity increase, Oak Ridge National

19 Laboratory, Oak Ridge, Tennessee,

20 $11,000,000.

21 Project 94–D–407, initial tank retrieval

22 systems, Richland, Washington, $9,400,000.

23 Project 94–D–411, solid waste operations

24 complex project, Richland, Washington,

25 $5,500,000.
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1 Project 94–D–417, intermediate level and

2 low activity waste vaults, Savannah River Site,

3 Aiken, South Carolina, $2,704,000.

4 Project 93–D–178, building 374 liquid

5 waste treatment facility, Rocky Flats Environ6 mental Technology Site, Golden, Colorado,

7 $3,900,000.

8 Project 93–D–182, replacement of cross9 site transfer system, Richland, Washington,

10 $19,795,000.

11 Project 93–D–183, multi-function waste

12 remediation facility, Richland, Washington,

13 $31,000,000.

14 Project 93–D–187, high-level waste re15 moval from filled waste tanks, Savannah River

16 Site, Aiken, South Carolina, $19,700,000.

17 Project 92–D–171, mixed waste receiving

18 and storage facility, Los Alamos National Lab19 oratory, Los Alamos, New Mexico, $1,105,000.

20 Project 92–D–188, waste management en21 vironmental, safety and health (ES&H) and

22 compliance activities, various locations,

23 $1,100,000.

24 Project 90–D–172, aging waste transfer

25 lines, Richland, Washington, $2,000,000.
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1 Project 90–D–177, RWMC transuranic

2 (TRU) waste characterization and storage facil3 ity, Idaho National Engineering Laboratory,

4 Idaho, $1,428,000.

5 Project 90–D–178, TSA retrieval enclo6 sure, Idaho National Engineering Laboratory,

7 Idaho, $2,606,000.

8 Project 89–D–173, tank farm ventilation

9 upgrade, Richland, Washington, $800,000.

10 Project 89–D–174, replacement high-level

11 waste evaporator, Savannah River Site, Aiken,

12 South Carolina, $11,500,000.

13 Project 86–D–103, decontamination and

14 waste treatment facility, Lawrence Livermore

15 National Laboratory, Livermore, California,

16 $8,885,000.

17 Project 83–D–148, nonradioactive hazard18 ous waste management, Savannah River Site,

19 Aiken, South Carolina, $1,000,000.

20 (d) TECHNOLOGY DEVELOPMENT.—Subject to sub21 section (i), funds are hereby authorized to be appropriated

22 to the Department of Energy for fiscal year 1996 for tech23 nology development in carrying out environmental restora24 tion and waste management activities necessary for na25 tional security programs in the amount of $390,510,000.
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1 (e) TRANSPORTATION MANAGEMENT.—Subject to

2 subsection (i), funds are hereby authorized to be appro3 priated to the Department of Energy for fiscal year 1996

4 for transportation management in carrying out environ5 mental restoration and waste management activities nec6 essary for national security programs in the amount of

7 $10,158,000.

8 (f) NUCLEAR MATERIALS AND FACILITIES STA9 BILIZATION.—Subject to subsection (i), funds are hereby

10 authorized to be appropriated to the Department of En11 ergy for fiscal year 1996 for nuclear materials and facili12 ties stabilization in carrying out environmental restoration

13 and waste management activities necessary for national

14 security programs in the amount of $1,514,504,000 to be

15 allocated as follows:

16 (1) For operation and maintenance,

17 $1,427,108,000.

18 (2) For plant projects (including maintenance,

19 restoration, planning, construction, acquisition,

20 modification of facilities, and the continuation of

21 projects authorized in prior years, and land acquisi22 tion related thereto), $87,396,000, to be allocated as

23 follows:

24 Project 96–D–458, site drainage control,

25 Mound Plant, Miamisburg, Ohio, $885,000.
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1 Project 96–D–461, Idaho National Engi2 neering Laboratory electrical distribution up3 grade, Idaho National Engineering Laboratory,

4 Idaho, $1,539,000.

5 Project 96–D–462, health physics instru6 ment laboratory, Idaho National Engineering

7 Laboratory, Idaho, $1,126,000.

8 Project 96–D–464, electrical and utility

9 systems upgrade, Idaho Chemical Processing

10 Plant, Idaho National Engineering Laboratory,

11 Idaho, $4,952,000.

12 Project 96–D–470, environmental monitor13 ing laboratory, Savannah River Site, Aiken,

14 South Carolina, $3,500,000.

15 Project 96–D–471, CFC HVAC/chiller ret16 rofit, Savannah River Site, Aiken, South Caro17 lina, $1,500,000.

18 Project 96–D–473, health physics site sup19 port facility, Savannah River Site, Aiken, South

20 Carolina, $2,000,000.

21 Project 95–D–155, upgrade site road in22 frastructure, Savannah River site, Aiken, South

23 Carolina, $2,900,000.
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1 Project 95–D–156, radio trunking system,

2 Savannah River site, Aiken, South Carolina,

3 $6,000,000.

4 Project 95–D–454, 324 facility compliance/

5 renovation, Richland, Washington, $3,500,000.

6 Project 95–D–456, security facilities con7 solidation, Idaho Chemical Processing Plant,

8 Idaho National Engineering Laboratory, Idaho,

9 $8,382,000.

10 Project 94–D–122, underground storage

11 tanks, Rocky Flats Plant, Golden, Colorado,

12 $5,000,000.

13 Project 94–D–401, emergency response fa14 cility, Idaho National Engineering Laboratory,

15 Idaho, $5,074,000.

16 Project 94–D–412, 300 area process sewer

17 piping system upgrade, Richland, Washington,

18 $1,000,000.

19 Project 94–D–415, Idaho National Engi20 neering Laboratory medical facilities, Idaho Na21 tional Engineering Laboratory, Idaho,

22 $3,601,000.

23 Project 94–D–451, infrastructure replace24 ment, Rocky Flats Plant, Golden, Colorado,

25 $2,940,000.
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1 Project 93–D–147, domestic water system

2 upgrade, Phase I and II, Savannah River Site,

3 Aiken, South Carolina, $7,130,000.

4 Project 93–D–172, Idaho National Engi5 neering Laboratory electrical upgrade, Idaho

6 National Engineering Laboratory, Idaho,

7 $124,000.

8 Project 92–D–123, plant fire/security

9 alarm system replacement, Rocky Flats Plant,

10 Golden, Colorado, $9,560,000.

11 Project 92–D–125, master safeguards and

12 security agreement/materials surveillance task

13 force security upgrades, Rocky Flats Plant,

14 Golden, Colorado, $7,000,000.

15 Project 92–D–181, Idaho National Engi16 neering Laboratory fire and life safety improve17 ments, Idaho National Engineering Laboratory,

18 Idaho, $6,883,000.

19 Project 91–D–127, criticality alarm and

20 plant annunciation utility replacement, Rocky

21 Flats Plant, Golden, Colorado, $2,800,000.

22 (g) COMPLIANCE AND PROGRAM COORDINATION.—

23 Subject to subsection (i), funds are hereby authorized to

24 be appropriated to the Department of Energy for fiscal

25 year 1996 for compliance and program coordination in
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1 carrying out environmental restoration and waste manage2 ment activities necessary for national security programs

3 in the amount of $31,251,000, to be allocated as follows:

4 (1) For operation and maintenance,

5 $16,251,000.

6 (2) For the following plant project (including

7 maintenance, restoration, planning, construction, ac8 quisition, modification of facilities, and the continu9 ation of projects authorized in prior years, and land

10 acquisition related thereto):

11 Project 95–E–600, hazardous materials

12 management and emergency response training

13 center, Richland, Washington, $15,000,000.

14 (h) ANALYSIS, EDUCATION, AND RISK MANAGE15 MENT.—Subject to subsection (i), funds are hereby au16 thorized to be appropriated to the Department of Energy

17 for fiscal year 1996 analysis, education, and risk manage18 ment in carrying out environmental restoration and waste

19 management activities necessary for national security pro20 grams in the amount of $77,022,000.

21 (i) ADJUSTMENTS.—The total amount authorized to

22 be appropriated pursuant to this section is the sum of the

23 amounts specified in subsections (a) through (h) reduced

24 by the sum of—
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1 (1) $651,942,000, for use of prior year bal2 ances; and

3 (2) $37,000,000 for Savannah River Pension

4 Refund.

5 SEC. 3103. PAYMENT OF PENALTIES.

6 The Secretary of Energy may pay to the Hazardous

7 Substance Superfund established under section 9507 of

8 the Internal Revenue Code of 1986 (26 U.S.C. 9507),

9 from funds appropriated to the Department of Energy for

10 environmental restoration and waste management activi11 ties pursuant to section 3102, stipulated civil penalties as12 sessed under the Comprehensive Environmental Response,

13 Compensation, and Liability Act of 1980 (42 U.S.C. 9601

14 et seq.) in the amount of $350,000 assessed against the

15 Rocky Flats site, Colorado, under such Act.

16 SEC. 3104. OTHER DEFENSE ACTIVITIES.

17 (a) OTHER DEFENSE ACTIVITIES.—Subject to sub18 section (b), funds are hereby authorized to be appro19 priated to the Department of Energy for fiscal year 1996

20 for other defense activities in carrying out programs nec21 essary for national security in the amount of

22 $1,328,841,000, to be allocated as follows:

23 (1) For verification and control technology,

24 $353,200,000, to be allocated as follows:
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1 (A) For nonproliferation and verification

2 research and development, $163,500,000.

3 (B) For arms control, $147,364,000.

4 (C) For intelligence, $42,336,000.

5 (2) For nuclear safeguards and security,

6 $83,395,000.

7 (3) For security investigations, $25,000,000.

8 (4) For security evaluations, $14,707,000.

9 (5) For the Office of Nuclear Safety,

10 $15,050,000.

11 (6) For worker and community transition as12 sistance, $75,000,000.

13 (7) For fissile materials disposition,

14 $70,000,000.

15 (8) For emergency management, $23,321,000.

16 (9) For naval reactors development,

17 $682,168,000, to be allocated as follows:

18 (A) For operation and infrastructure,

19 $659,168,000.

20 (B) For plant projects (including mainte21 nance, restoration, planning, construction, ac22 quisition, modification of facilities, and the con23 tinuation of projects authorized in prior years,

24 and land acquisition related thereto),

25 $23,000,000, to be allocated as follows:
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1 Project 95–D–200, laboratory systems

2 and hot cell upgrades, various locations,

3 $11,300,000.

4 Project 95–D–201, advanced test re5 actor radioactive waste system upgrades,

6 Idaho National Engineering Laboratory,

7 Idaho, $4,800,000.

8 Project 93–D–200, engineering serv9 ices facilities, Knolls Atomic Power Lab10 oratory, Niskayuna, New York,

11 $3,900,000.

12 Project 90–N–102, expended core fa13 cility dry cell project, Naval Reactors facil14 ity, Idaho, $3,000,000.

15 (b) ADJUSTMENT.—The total amount that may be

16 appropriated pursuant to this section is the amount au17 thorized to be appropriated in subsection (a) reduced by

18 the sum of $13,000,000, for use of prior year balances.

19 SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

20 Funds are hereby authorized to be appropriated to

21 the Department of Energy for fiscal year 1996 for pay22 ment to the Nuclear Waste Fund established in section

23 302(c) of the Nuclear Waste Policy Act of 1982 (42

24 U.S.C. 10222(c)) in the amount of $198,400,000.
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1 Subtitle B—Recurring General

2 Provisions

3 SEC. 3121. REPROGRAMMING.

4 (a) IN GENERAL.—Until the Secretary of Energy

5 submits to the congressional defense committees the re6 port referred to in subsection (b) and a period of 30 days

7 has elapsed after the date on which such committees re8 ceive the report, the Secretary may not use amounts ap9 propriated pursuant to this title for any program—

10 (1) in amounts that exceed, in a fiscal year—

11 (A) 110 percent of the amount authorized

12 for that program by this title; or

13 (B) $1,000,000 more than the amount au14 thorized for that program by this title; or

15 (2) which has not been presented to, or re16 quested of, Congress.

17 (b) REPORT.—(1) The report referred to in sub18 section (a) is a report containing a full and complete state19 ment of the action proposed to be taken and the facts and

20 circumstances relied upon in support of such proposed ac21 tion.

22 (2) In the computation of the 30-day period under

23 subsection (a), there shall be excluded any day on which

24 either House of Congress is not in session because of an

25 adjournment of more than 3 days to a day certain.
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1 (c) LIMITATIONS.—(1) In no event may the total

2 amount of funds obligated pursuant to this title exceed

3 the total amount authorized to be appropriated by this

4 title.

5 (2) Funds appropriated pursuant to this title may not

6 be used for an item for which Congress has specifically

7 denied funds.

8 SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

9 (a) IN GENERAL.—The Secretary of Energy may

10 carry out any construction project under the general plant

11 projects authorized by this title if the total estimated cost

12 of the construction project does not exceed $2,000,000.

13 (b) REPORT TO CONGRESS.—If, at any time during

14 the construction of any general plant project authorized

15 by this title, the estimated cost of the project is revised

16 because of unforeseen cost variations and the revised cost

17 of the project exceeds $2,000,000, the Secretary shall im18 mediately furnish a complete report to the congressional

19 defense committees explaining the reasons for the cost

20 variation.

21 SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

22 (a) IN GENERAL.—(1) Except as provided in para23 graph (2), construction on a construction project may not

24 be started or additional obligations incurred in connection

25 with the project above the total estimated cost, whenever
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1 the current estimated cost of the construction project,

2 which is authorized by sections 3101, 3102, and 3104, or

3 which is in support of national security programs of the

4 Department of Energy and was authorized by any pre5 vious Act, exceeds by more than 25 percent the higher

6 of—

7 (A) the amount authorized for the project; or

8 (B) the amount of the total estimated cost for

9 the project as shown in the most recent budget jus10 tification data submitted to Congress.

11 (2) An action described in paragraph (1) may be

12 taken if—

13 (A) the Secretary of Energy has submitted to

14 the congressional defense committees a report on the

15 actions and the circumstances making such action

16 necessary; and

17 (B) a period of 30 days has elapsed after the

18 date on which the report is received by the commit19 tees.

20 (3) In the computation of the 30-day period under

21 paragraph (2), there shall be excluded any day on which

22 either House of Congress is not in session because of an

23 adjournment of more than 3 days to a day certain.
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1 (b) EXCEPTION.—Subsection (a) shall not apply to

2 any construction project which has a current estimated

3 cost of less than $5,000,000.

4 SEC. 3124. FUND TRANSFER AUTHORITY.

5 (a) TRANSFER TO OTHER FEDERAL AGENCIES.—

6 The Secretary of Energy may transfer funds authorized

7 to be appropriated to the Department of Energy pursuant

8 to this title to other Federal agencies for the performance

9 of work for which the funds were authorized. Funds so

10 transferred may be merged with and be available for the

11 same purposes and for the same time period as the author12 izations of the Federal agency to which the amounts are

13 transferred.

14 (b) TRANSFER WITHIN DEPARTMENT OF ENERGY;

15 LIMITATIONS.—(1) Subject to paragraph (2), the Sec16 retary of Energy may transfer funds authorized to be ap17 propriated to the Department of Energy pursuant to this

18 title between any such authorizations. Amounts of author19 izations so transferred may be merged with and be avail20 able for the same purposes and for the same time period

21 as the authorization to which the amounts are transferred.

22 (2) Not more than 5 percent of any such authoriza23 tion may be transferred between authorizations under

24 paragraph (1). No such authorization may be increased
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1 or decreased by more than 5 percent by a transfer under

2 such paragraph.

3 (3) The authority provided by this section to transfer

4 authorizations—

5 (A) may only be used to provide funds for items

6 that have a higher priority than the items from

7 which the funds are transferred; and

8 (B) may not be used to provide authority for an

9 item that has been denied funds by Congress.

10 (c) NOTICE TO CONGRESS.—The Secretary of Energy

11 shall promptly notify the Committee on Armed Services

12 of the Senate and the Committee on National Security of

13 the House of Representatives of any transfer of funds to

14 or from authorizations under this title.

15 SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUC16 TION DESIGN.

17 (a) REQUIREMENT FOR CONCEPTUAL DESIGN.—(1)

18 Subject to paragraph (2) and except as provided in para19 graph (3), before submitting to Congress a request for

20 funds for a construction project that is in support of a

21 national security program of the Department of Energy,

22 the Secretary of Energy shall complete a conceptual de23 sign for that project.

24 (2) If the estimated cost of completing a conceptual

25 design for a construction project exceeds $3,000,000, the
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1 Secretary shall submit to Congress a request for funds for

2 the conceptual design before submitting a request for

3 funds for the construction project.

4 (3) The requirement in paragraph (1) does not apply

5 to a request for funds—

6 (A) for a construction project the total esti7 mated cost of which is less than $2,000,000, or

8 (B) for emergency planning, design, and con9 struction activities under section 3126.

10 (b) AUTHORITY FOR CONSTRUCTION DESIGN.—(1)

11 Within the amounts authorized by this title, the Secretary

12 of Energy may carry out construction design services (in13 cluding architectural and engineering services) in connec14 tion with any proposed construction project if the total

15 estimated cost for such design does not exceed $600,000.

16 (2) If the total estimated cost for construction design

17 in connection with any construction project exceeds

18 $600,000, funds for such design must be specifically au19 thorized by law.

20 SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DE21 SIGN, AND CONSTRUCTION ACTIVITIES.

22 (a) AUTHORITY.—The Secretary of Energy may use

23 any funds available to the Department of Energy pursuant

24 to an authorization in this title, including those funds au25 thorized to be appropriated for advance planning and con-
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1 struction design under sections 3101, 3102, and 3104, to

2 perform planning, design, and construction activities for

3 any Department of Energy defense activity construction

4 project that, as determined by the Secretary, must proceed

5 expeditiously in order to protect public health and safety,

6 meet the needs of national defense, or to protect property.

7 (b) LIMITATION.—The Secretary may not exercise

8 the authority under subsection (a) in the case of any con9 struction project until the Secretary has submitted to the

10 congressional defense committees a report on the activities

11 that the Secretary intends to carry out under this section

12 and the circumstances making such activities necessary.

13 (c) SPECIFIC AUTHORITY.—The requirement of sec14 tion 3125(b)(2) does not apply to emergency planning, de15 sign, and construction activities conducted under this sec16 tion.

17 (d) REPORT.—The Secretary of Energy shall report

18 to the congressional defense committees any exercise of

19 authority under this section.

20 SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECU21 RITY PROGRAMS OF THE DEPARTMENT OF

22 ENERGY.

23 Subject to the provisions of appropriations Acts and

24 section 3121 of this title, amounts appropriated pursuant

25 to this title for management and support activities and
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1 for general plant projects are available for use, when nec2 essary, in connection with all national security programs

3 of the Department of Energy.

4 SEC. 3128. AVAILABILITY OF FUNDS.

5 When so specified in an appropriation Act, amounts

6 appropriated for operating expenses or for plant and cap7 ital equipment may remain available until expended.

8 Subtitle C—Program Authoriza9 tions, Restrictions, and Limita10 tions

11 SEC. 3131. AUTHORITY TO CONDUCT PROGRAM RELATING

12 TO FISSILE MATERIALS.

13 (a) AUTHORITY.—The Secretary of Energy may con14 duct programs designed to improve the protection, control,

15 and accountability of fissile materials in Russia.

16 (b) PRIOR NOTICE TO CONGRESS OF OBLIGATION OF

17 FUNDS.—

18 (1) ANNUAL REQUIREMENT.—(A) Not less than

19 15 days before any obligation of any funds appro20 priated for any fiscal year for a program described

21 in subsection (a), the Secretary of Energy shall sub22 mit to the congressional committees specified in sub23 paragraph (B) a report on that proposed obligation

24 for that program for that fiscal year.
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1 (B) The congressional committees referred to in

2 subparagraph (A) are the following:

3 (i) The Committee on Armed Services, the

4 Committee on Foreign Relations, and the Com5 mittee on Appropriations of the Senate.

6 (ii) The Committee on National Security,

7 the Committee on International Relations, and

8 the Committee on Appropriations of the House

9 of Representatives.

10 (2) MATTERS TO BE SPECIFIED IN REPORTS.—

11 Each such report shall specify—

12 (A) the activities and forms of assistance

13 for which the Secretary of Energy plans to obli14 gate funds;

15 (B) the amount of the proposed obligation;

16 and

17 (C) the projected involvement (if any) of

18 any department or agency of the United States

19 (in addition to the Department of Energy) and

20 of the private sector of the United States in the

21 activities and forms of assistance for which the

22 Secretary of Energy plans to obligate such

23 funds.
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1 SEC. 3132. NATIONAL IGNITION FACILITY.

2 None of the funds appropriated pursuant to this title

3 for the National Ignition Facility may be obligated until—

4 (1) the Secretary of Energy concludes that the

5 construction of the National Ignition Facility will

6 not impede the nuclear nonproliferation objectives of

7 the United States; and

8 (2) the Secretary of Energy notifies the con9 gressional defense committees of that conclusion.

10 SEC. 3133. TRITIUM PRODUCTION.

11 (a) NEW TRITIUM PRODUCTION ACTIVITIES.—

12 (1) Of the amounts authorized to be appro13 priated in section 3101(b), not more than

14 $50,000,000 shall be available for a project to pro15 vide a long-term source of tritium, subject to para16 graph (2).

17 (2) The amount made available under para18 graph (1) may not be used until such time as the

19 Secretary of Energy has completed a record of deci20 sion on a tritium production program and congres21 sional hearings have been conducted to determine

22 the appropriate option, in light of the national secu23 rity needs and nonproliferation and environmental

24 consequences, for establishing a long-term source of

25 tritium.
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1 (b) FISSILE MATERIALS CONTROL AND DISPOSI2 TION.—Funds authorized to be appropriated for fiscal

3 year 1996 for fissile materials storage and disposition ac4 tivities shall be available only for completing the evalua5 tion and beginning the implementation of the plutonium

6 storage and disposition option, including the multipurpose

7 advanced light water reactor, in the amount of

8 $70,000,000, of which—

9 (1) $5,000,000 shall be made available to the

10 Idaho National Engineering Laboratory for evalua11 tion of plutonium conversion to oxide fuel material

12 in the multipurpose advanced light water reactor;

13 and

14 (2) sufficient funds shall be made available for

15 a complete consideration of the multipurpose ad16 vanced light water reactor in the Department of En17 ergy programmatic environmental impact statement.

18 Subtitle D—Other Matters

19 SEC. 3141. REPORT ON FOREIGN TRITIUM PURCHASES.

20 Not later than February 1, 1996, the President shall

21 submit to Congress a report on the feasibility of, the cost

22 of, and the political, legal, and other issues associated with

23 purchasing tritium from various foreign suppliers in order

24 to ensure an adequate supply of tritium in the United

25 States for nuclear weapons.
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1 SEC. 3142. STUDY ON NUCLEAR TEST READINESS POS2 TURES.

3 Not later than February 15, 1996, the Secretary of

4 Energy shall submit to Congress a report on the cost of,

5 and the programmatic and other issues associated with,

6 sustaining an ability to conduct an underground nuclear

7 test in 6, 18, and 36 months from the date on which the

8 President determines that such a test is necessary to en9 sure the national security of the United States.

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

11 STOCKPILE.

12 (a) MASTER PLAN.—Not later than March 15, 1996,

13 the President shall submit to Congress a master plan that

14 describes in detail how the Government plans to dem15 onstrate, by 2002—

16 (1) the capability to refabricate and certify war17 heads in the enduring stockpile; and

18 (2) the capability to design, fabricate, and cer19 tify new warheads.

20 (b) FORM OF PLAN.—The plan should be submitted

21 in classified and unclassified forms.
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1 SEC. 3144. PROHIBITION ON INTERNATIONAL INSPECTIONS

2 OF DEPARTMENT OF ENERGY FACILITIES UN3 LESS PROTECTION OF RESTRICTED DATA IS

4 CERTIFIED.

5 (a) PROHIBITION ON INSPECTIONS.—The Secretary

6 of Energy may not allow an inspection of a nuclear weap7 ons facility by the International Atomic Energy Agency

8 until—

9 (1) the Secretary certifies to Congress that no

10 restricted data or classified information will be re11 vealed during such inspection; and

12 (2) a period of 30 days has passed since the

13 date on which such certification was made.

14 (b) RESTRICTED DATA DEFINED.—In this section,

15 the term ‘‘restricted data’’ has the meaning provided by

16 section 11 y. of the Atomic Energy Act of 1954 (42 U.S.C.

17 2014(y)).

18 SEC. 3145. ACCELERATED SCHEDULE FOR ENVIRON19 MENTAL MANAGEMENT ACTIVITIES.

20 (a) ACCELERATED CLEANUP.—The Secretary of En21 ergy shall accelerate the schedule for environmental man22 agement activities and projects for any specific Depart23 ment of Energy defense nuclear facility site if, in the opin24 ion of the Secretary, such an accelerated schedule will re25 sult in substantial long-term cost savings to the Federal
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1 Government and speed up release of land for economic de2 velopment.

3 (b) SITE SELECTION.—In selecting sites for an accel4 erated schedule under subsection (a), the Secretary shall

5 give highest priority to sites that are in close proximity

6 to populated areas, that pose significant risk, and that

7 have the greatest potential to result in privatization, com8 mercialization, and economic development of unneeded fa9 cilities.

10 (c) ELIGIBILITY.—For purposes of subsection (a),

11 environmental management activities and projects shall be

12 eligible for an accelerated schedule under subsection (a)

13 if the time for completion at the site of such activities can

14 be reduced by 50 percent or more below the time estab15 lished in the report of the Department of Energy Office

16 of Environmental Management titled ‘‘1995 Baseline En17 vironmental Management Report’’, March 1995.

18 (d) SAVINGS PROVISION.—Nothing in this section

19 shall be construed as affecting a specific statutory require20 ment for a specific project or as modifying or otherwise

21 affecting applicable statutory or regulatory environmental

22 restoration requirements, including substantive standards

23 intended to protect public health and the environment.
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1 TITLE XXXII—DEFENSE NU2 CLEAR FACILITIES SAFETY

3 BOARD

4 SEC. 3201. AUTHORIZATION.

5 There are authorized to be appropriated for fiscal

6 year 1996 $17,000,000 for the operation of the Defense

7 Nuclear Facilities Safety Board under chapter 21 of the

8 Atomic Energy Act of 1954 (42 U.S.C. 2286 et seq.)

9 TITLE XXXIII—NATIONAL

10 DEFENSE STOCKPILE

11 SEC. 3301. FISCAL YEAR 1996 AUTHORIZED USES OF STOCK12 PILE FUNDS.

13 (a) OBLIGATION OF STOCKPILE FUNDS.—During fis14 cal year 1996, the National Defense Stockpile Manager

15 may obligate up to $77,100,000 of the funds in the Na16 tional Defense Stockpile Transaction Fund established

17 under subsection (a) of section 9 of the Strategic and Crit18 ical Materials Stock Piling Act (50 U.S.C. 98h) for the

19 authorized uses of such funds under subsection (b)(2) of

20 such section.

21 (b) ADDITIONAL OBLIGATIONS.—The National De22 fense Stockpile Manager may obligate amounts in excess

23 of the amount specified in subsection (a) if the National

24 Defense Stockpile Manager notifies Congress that extraor25 dinary or emergency conditions necessitate the additional
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1 obligations. The National Defense Stockpile Manager may

2 make the additional obligations described in the notifica3 tion after the end of the 45-day period beginning on the

4 date Congress receives the notification.

5 (c) LIMITATIONS.—The authorities provided by this

6 section shall be subject to such limitations as may be pro7 vided in appropriations Acts.

8 SEC. 3302. PREFERENCE FOR DOMESTIC UPGRADERS IN

9 DISPOSAL OF CHROMITE AND MANGANESE

10 ORES AND CHROMIUM FERRO AND MAN11 GANESE METAL ELECTROLYTIC.

12 (a) PREFERENCE FOR DOMESTIC UPGRADING.—In

13 offering to enter into agreements pursuant to any provi14 sion of law for the disposal from the National Defense

15 Stockpile of chromite and manganese ores of metallurgical

16 grade or chromium ferro and manganese metal electro17 lytic, the President shall give a right of first refusal on

18 all such offers to domestic ferroalloy upgraders.

19 (b) DOMESTIC FERROALLOY UPGRADER DEFINED.—

20 For purposes of this section, the term ‘‘domestic ferroalloy

21 upgrader’’ means a company or other business entity that,

22 as determined by the President—

23 (1) is engaged in (or is capable of engaging in)

24 operations to upgrade chromite or manganese ores
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1 of metallurgical grade or chromium ferro and man2 ganese metal electrolytic; and

3 (2) conducts a significant level of its research,

4 development, engineering, and upgrading operations

5 in the United States.

6 (c) NATIONAL DEFENSE STOCKPILE DEFINED.—For

7 purposes of this section, the term ‘‘National Defense

8 Stockpile’’ means the stockpile provided for in section 4

9 of the Strategic and Critical Materials Stock Piling Act

10 (50 U.S.C. 98c).

11 SEC. 3303. RESTRICTIONS ON DISPOSAL OF MANGANESE

12 FERRO.

13 (a) DISPOSAL OF LOWER GRADE MATERIAL

14 FIRST.—The President may not dispose of high carbon

15 manganese ferro in the National Defense Stockpile that

16 meets the National Defense Stockpile classification of

17 Grade One, Specification 30(a), as revised on May 22,

18 1992, until completing the disposal of all manganese ferro

19 in the National Defense Stockpile that does not meet such

20 classification. The President may not reclassify man21 ganese ferro in the National Defense Stockpile after the

22 date of the enactment of this Act.

23 (b) REQUIREMENT FOR DOMESTIC UPGRADING.—

24 Manganese ferro in the National Defense Stockpile that

25 does not meet the classification specified in subsection (a)
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1 shall only be sold for domestic remelting in a submerged

2 arc ferromanganese furnace.

3 (c) NATIONAL DEFENSE STOCKPILE DEFINED.—For

4 purposes of this section, the term ‘‘National Defense

5 Stockpile’’ means the stockpile provided for in section 4

6 of the Strategic and Critical Materials Stock Piling Act

7 (50 U.S.C. 98c).

8 SEC. 3304. TITANIUM INITIATIVE TO SUPPORT BATTLE

9 TANK UPGRADE PROGRAM.

10 (a) TRANSFER OF TITANIUM.—During each of the

11 fiscal years 1996 through 2003, the Secretary of Defense

12 shall transfer from stocks of the National Defense Stock13 pile up to 250 short tons of titanium sponge to the Sec14 retary of the Army for use in the weight reduction portion

15 of the main battle tank upgrade program. Transfers under

16 this section shall be without charge to the Army, except

17 that the Secretary of the Army shall pay all transportation

18 and related costs incurred in connection with the transfer.

19 (b) NATIONAL DEFENSE STOCKPILE DEFINED.—

20 For purposes of this section, the term ‘‘National Defense

21 Stockpile’’ means the stockpile provided for in section 4

22 of the Strategic and Critical Materials Stock Piling Act

23 (50 U.S.C. 98c).
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1 TITLE XXXIV—NAVAL

2 PETROLEUM RESERVES

3 SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

4 There is hereby authorized to be appropriated to the

5 Secretary of Energy $101,028,000 for fiscal year 1996 for

6 the purpose of carrying out activities under chapter 641

7 of title 10, United States Code, relating to the naval petro8 leum reserves (as defined in section 7420(2) of such title).

9 Funds appropriated pursuant to such authorization shall

10 remain available until expended.

11 SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PE12 TROLEUM DURING FISCAL YEAR 1996.

13 Notwithstanding section 7430(b)(2) of title 10, Unit14 ed States Code, during fiscal year 1996, any sale of any

15 part of the United States share of petroleum produced

16 from Naval Petroleum Reserves Numbered 1, 2, and 3

17 shall be made at a price not less than 90 percent of the

18 current sales price, as estimated by the Secretary of En19 ergy, of comparable petroleum in the same area.

20 SEC. 3403. SALE OF NAVAL PETROLEUM RESERVE NUM21 BERED 1 (ELK HILLS).

22 (a) SALE OF ELK HILLS UNIT REQUIRED.—Chapter

23 641 of title 10, United States Code, is amended by insert24 ing after section 7421 the following new section:
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1 ‘‘§ 7421a. Sale of Naval Petroleum Reserve Numbered

2 1 (Elk Hills)

3 ‘‘(a) SALE REQUIRED.—(1) Notwithstanding any

4 other provision of this chapter, the Secretary shall sell all

5 right, title, and interest of the United States in and to

6 lands owned or controlled by the United States inside

7 Naval Petroleum Reserve Numbered 1, commonly referred

8 to as the Elk Hills Unit, located in Kern County, Califor9 nia, and established by Executive order of the President,

10 dated September 2, 1912. Within one year after the effec11 tive date, the Secretary shall enter into one or more con12 tracts for the sale of all of the interest of the United

13 States in the reserve.

14 ‘‘(2) In this section:

15 ‘‘(A) The term ‘reserve’ means Naval Petroleum

16 Reserve Numbered 1.

17 ‘‘(B) The term ‘unit plan contract’ means the

18 unit plan contract between equity owners of the

19 lands within the boundaries of Naval Petroleum Re20 serve Numbered 1 entered into on June 19, 1944.

21 ‘‘(C) The term ‘effective date’ means the date

22 of the enactment of the National Defense Authoriza23 tion Act for Fiscal Year 1996.

24 ‘‘(b) EQUITY FINALIZATION.—(1) Not later than five

25 months after the effective date, the Secretary shall finalize

26 equity interests of the known oil and gas zones in Naval
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1 Petroleum Reserve Numbered 1 in the manner provided

2 by this subsection.

3 ‘‘(2) The Secretary shall retain the services of an

4 independent petroleum engineer, mutually acceptable to

5 the equity owners, who shall prepare a recommendation

6 on final equity figures. The Secretary may accept the rec7 ommendation of the independent petroleum engineer for

8 final equity in each known oil and gas zone and establish

9 final equity interest in the Naval Petroleum Reserve Num10 bered 1 in accordance with such recommendation, or the

11 Secretary may use such other method to establish final

12 equity interest in the reserve as the Secretary considers

13 appropriate.

14 ‘‘(3) If, on the effective date, there is an ongoing eq15 uity redetermination dispute between the equity owners

16 under section 9(b) of the unit plan contract, such dispute

17 shall be resolved in the manner provided in the unit plan

18 contract within five months after the effective date. Such

19 resolution shall be considered final for all purposes under

20 this section.

21 ‘‘(c) TIMING AND ADMINISTRATION OF SALE.—(1)

22 Not later than two months after the effective date, the

23 Secretary shall retain the services of five independent ex24 perts in the valuation of oil and gas fields to conduct sepa25 rate assessments, in a manner consistent with commercial
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1 practices, of the fair market value of the interest of the

2 United States in Naval Petroleum Reserve Numbered 1.

3 In making their assessments, the independent experts

4 shall consider (among other factors) all equipment and fa5 cilities to be included in the sale, the net present value

6 of the reserve, and the net present value of the anticipated

7 revenue stream that the Secretary determines the Treas8 ury would receive from the reserve if the reserve were not

9 sold, adjusted for any anticipated increases in tax reve10 nues that would result if the reserve were sold. The inde11 pendent experts shall complete their assessments within

12 five months after the effective date. In setting the mini13 mum acceptable price for the reserve, the Secretary shall

14 consider the average of the five assessments or, if more

15 advantageous to the Government, the average of three as16 sessments after excluding the high and low assessments.

17 ‘‘(2) Not later than two months after the effective

18 date, the Secretary shall retain the services of an invest19 ment banker to independently administer, in a manner

20 consistent with commercial practices and in a manner that

21 maximizes sale proceeds to the Government, the sale of

22 Naval Petroleum Reserve Numbered 1 under this section.

23 ‘‘(3) Not later than five months after the effective

24 date, the sales administrator selected under paragraph (2)

25 shall complete a draft contract for the sale of Naval Petro-
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1 leum Reserve Numbered 1, which shall accompany the in2 vitation for bids and describe the terms and provisions of

3 the sale of the interest of the United States in the reserve.

4 The draft contract shall identify all equipment and facili5 ties to be included in the sale. The draft contract, includ6 ing the terms and provisions of the sale of the interest

7 of the United States in the reserve, shall be subject to

8 review and approval by the Secretary, the Secretary of the

9 Treasury, and the Director of the Office of Management

10 and Budget.

11 ‘‘(4) Not later than six months after the effective

12 date, the Secretary shall publish an invitation for bids for

13 the purchase of the reserve.

14 ‘‘(5) Not later than nine months after the effective

15 date, the Secretary shall accept the highest responsible

16 offer for purchase of the interest of the United States in

17 Naval Petroleum Reserve Numbered 1 that meets or ex18 ceeds the minimum acceptable price determined under

19 paragraph (1).

20 ‘‘(d) FUTURE LIABILITIES.—The United States shall

21 hold harmless and fully indemnify the purchaser of the

22 interest of the United States in Naval Petroleum Reserve

23 Numbered 1 from and against any claim or liability as

24 a result of ownership in the reserve by the United States.
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1 ‘‘(e) TREATMENT OF STATE OF CALIFORNIA

2 CLAIM.—(1) All claims against the United States by the

3 State of California or the Teachers’ Retirement Fund of

4 the State of California with respect to land within the

5 Naval Petroleum Reserve Numbered 1 or production or

6 proceeds of sale from the reserve shall be resolved only

7 as follows:

8 ‘‘(A) A payment from funds provided for this

9 purpose in advance in appropriation Acts.

10 ‘‘(B) A grant of nonrevenue generating land in

11 lieu of such a payment pursuant to sections 2275

12 and 2276 of the Revised Statutes of the United

13 States (43 U.S.C. 851 and 852).

14 ‘‘(C) Any other means that would not be incon15 sistent with the Congressional Budget Act of 1974

16 (2 U.S.C. 621 et seq.).

17 ‘‘(D) Any combination of subparagraphs (A),

18 (B), and (C).

19 ‘‘(2) The value of any payment, grant, or means (or

20 combination thereof) under paragraph (1) may not exceed

21 an amount equal to seven percent of the proceeds from

22 the sale of the reserve, after deducting the costs incurred

23 to conduct the sale.

24 ‘‘(f) PRODUCTION ALLOCATION FOR SALE.—(1) As

25 part of the contract for purchase of Naval Petroleum Re-
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1 serve Numbered 1, the purchaser of the interest of the

2 United States in the reserve shall agree to make up to

3 25 percent of the purchaser’s share of annual petroleum

4 production from the purchased lands available for sale to

5 small refiners, which do not have their own adequate

6 sources of supply of petroleum, for processing or use only

7 in their own refineries. None of the reserved production

8 sold to small refiners may be resold in kind. The purchaser

9 of the reserve may reduce the quantity of petroleum re10 served under this subsection in the event of an insufficient

11 number of qualified bids. The seller of this petroleum pro12 duction has the right to refuse bids that are less than the

13 prevailing market price of comparable oil.

14 ‘‘(2) The purchaser of the reserve shall also agree to

15 ensure that the terms of every sale of the purchaser’s

16 share of annual petroleum production from the purchased

17 lands shall be so structured as to give full and equal op18 portunity for the acquisition of petroleum by all interested

19 persons, including major and independent oil producers

20 and refiners alike.

21 ‘‘(g) MAINTAINING ELK HILLS UNIT PRODUC22 TION.—Until the sale of Naval Petroleum Reserve Num23 bered 1 is completed under this section, the Secretary shall

24 continue to produce the reserve at the maximum daily oil

25 or gas rate from a reservoir, which will permit maximum
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1 economic development of the reservoir consistent with

2 sound oil field engineering practices in accordance with

3 section 3 of the unit plan contract. The definition of maxi4 mum efficient rate in section 7420(6) of this title shall

5 not apply to the reserve.

6 ‘‘(h) EFFECT ON EXISTING CONTRACTS.—(1) In the

7 case of any contract, in effect on the effective date, for

8 the purchase of production from any part of the United

9 States’ share of Naval Petroleum Reserve Numbered 1,

10 the sale of the interest of the United States in the reserve

11 shall be subject to the contract for a period of three

12 months after the closing date of the sale or until termi13 nation of the contract, whichever occurs first. The term

14 of any contract entered into after the effective date for

15 the purchase of such production shall not exceed the an16 ticipated closing date for the sale of the reserve.

17 ‘‘(2) The Secretary shall exercise the termination pro18 cedures provided in the contract between the United

19 States and Bechtel Petroleum Operation, Inc., Contract

20 Number DE–ACO1–85FE60520 so that the contract ter21 minates not later than the date of closing of the sale of

22 Naval Petroleum Reserve Numbered 1 under subsection

23 (c).

24 ‘‘(3) The Secretary shall exercise the termination pro25 cedures provided in the unit plan contract so that the unit
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1 plan contract terminates not later than the date of closing

2 of the sale of reserve under subsection (c).

3 ‘‘(i) EFFECT ON ANTITRUST LAWS.—Nothing in this

4 section shall be construed to alter the application of the

5 antitrust laws of the United States to the purchaser of

6 Naval Petroleum Reserve Numbered 1 or to the lands in

7 the reserve subject to sale under this section upon the

8 completion of the sale.

9 ‘‘(j) PRESERVATION OF PRIVATE RIGHT, TITLE, AND

10 INTEREST.—Nothing in this section shall be construed to

11 adversely affect the ownership interest of any other entity

12 having any right, title, and interest in and to lands within

13 the boundaries of Naval Petroleum Reserve Numbered 1

14 and which are subject to the unit plan contract.

15 ‘‘(k) CONGRESSIONAL NOTIFICATION.—Section 7431

16 of this title shall not apply to the sale of Naval Petroleum

17 Reserve Numbered 1 under this section. However, the Sec18 retary may not enter into a contract for the sale of the

19 reserve until the end of the 31-day period beginning on

20 the date on which the Secretary notifies the Committee

21 on Armed Services of the Senate and the Committee on

22 National Security and the Committee on Commerce of the

23 House of Representatives of the proposed sale.’’.

24 (b) CLERICAL AMENDMENT.—The table of sections

25 at the beginning of such chapter is amended by inserting
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1 after the item relating to section 7421 the following new

2 item:

‘‘7421a. Sale of Naval Petroleum Reserve Numbered 1 (Elk Hills).’’.

3 SEC. 3404. STUDY REGARDING FUTURE OF NAVAL PETRO4 LEUM RESERVES (OTHER THAN NAVAL PE5 TROLEUM RESERVE NUMBERED 1).

6 (a) STUDY REQUIRED.—The Secretary of Energy

7 shall conduct a study to determine which of the following

8 options regarding the naval petroleum reserves represents

9 the most cost-effective option for the United States:

10 (1) Retention and operation of the naval petro11 leum reserves by the Secretary under chapter 641 of

12 title 10, United States Code.

13 (2) Transfer of all or a part of the naval petro14 leum reserves to the jurisdiction of another Federal

15 agency.

16 (3) Lease of the naval petroleum reserves.

17 (4) Sale of the interest of the United States in

18 the naval petroleum reserves.

19 (b) CONDUCT OF STUDY.—The Secretary shall retain

20 an independent petroleum consultant to conduct the study.

21 (c) CONSIDERATIONS UNDER STUDY.—An examina22 tion of the benefits to be derived by the United States

23 from the sale of the naval petroleum reserves shall include

24 an assessment and estimate, in a manner consistent with

25 commercial practices, of the fair market value of the inter-
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1 est of the United States in the naval petroleum reserves.

2 An examination of the benefits to be derived by the United

3 States from the lease of the naval petroleum reserves shall

4 consider full exploration, development, and production of

5 petroleum products in the naval petroleum reserves, with

6 a royalty payment to the United States.

7 (d) REPORT REGARDING STUDY.—Not later than

8 December 31, 1995, the Secretary shall submit to Con9 gress a report describing the results of the study and con10 taining such recommendations as the Secretary considers

11 necessary to implement the most cost-effective option

12 identified in the study.

13 (e) NAVAL PETROLEUM RESERVES DEFINED.—For

14 purposes of this section, the term ‘‘naval petroleum re15 serves’’ has the meaning given that term in section

16 7420(2) of title 10, United States Code, except that such

17 term does not include Naval Petroleum Reserve Numbered

18 1.

19 TITLE XXXV—PANAMA CANAL

20 COMMISSION

21 Subtitle A—Authorization of

22 Appropriations

23 SEC. 3501. SHORT TITLE.

24 This subtitle may be cited as the ‘‘Panama Canal

25 Commission Authorization Act for Fiscal Year 1996’’.
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1 SEC. 3502. AUTHORIZATION OF EXPENDITURES.

2 (a) IN GENERAL.—Subject to subsection (b), the

3 Panama Canal Commission is authorized to make such ex4 penditures within the limits of funds and borrowing au5 thority available to it in accordance with law, and to make

6 such contracts and commitments without regard to fiscal

7 year limitations, as may be necessary under the Panama

8 Canal Act of 1979 (22 U.S.C. 3601 et seq.) for the oper9 ation, maintenance, and improvement of the Panama

10 Canal for fiscal year 1996.

11 (b) LIMITATIONS.—For fiscal year 1996, the Panama

12 Canal Commission may expend from funds in the Panama

13 Canal Revolving Fund not more than $50,741,000 for ad14 ministrative expenses, of which not more than—

15 (1) $11,000 may be used for official reception

16 and representation expenses of the Supervisory

17 Board of the Commission;

18 (2) $5,000 may be used for official reception

19 and representation expenses of the Secretary of the

20 Commission; and

21 (3) $30,000 may be used for official reception

22 and representation expenses of the Administrator of

23 the Commission.

24 (c) REPLACEMENT VEHICLES.—Funds available to

25 the Panama Canal Commission shall be available for the

26 purchase of not to exceed 38 passenger motor vehicles
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1 built in the United States (including large heavy-duty ve2 hicles to be used to transport Commission personnel

3 across the isthmus of Panama). A vehicle may be pur4 chased with such funds only as necessary to replace an5 other passenger motor vehicle of the Commission.

6 SEC. 3503. EXPENDITURES IN ACCORDANCE WITH OTHER

7 LAWS.

8 Expenditures authorized under this subtitle may be

9 made only in accordance with the Panama Canal Treaties

10 of 1977 and any law of the United States implementing

11 those treaties.

12 Subtitle B—Reconstitution of Com13 mission as Government Cor14 poration

15 SEC. 3521. SHORT TITLE.

16 This subtitle may be cited as the ‘‘Panama Canal

17 Amendments Act of 1995’’.

18 SEC. 3522. RECONSTITUTION OF COMMISSION AS GOVERN19 MENT CORPORATION.

20 Section 1101 of the Panama Canal Act of 1979 (22

21 U.S.C. 3611) is amended to read as follows:

22 ‘‘ESTABLISHMENT, PURPOSES, OFFICES, AND RESIDENCE

23 OF THE COMMISSION

24 ‘‘SEC. 1101. (a) For the purposes of managing, oper25 ating, and maintaining the Panama Canal and its com26 plementary works, installations and equipment, and of
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1 conducting operations incident thereto, in accordance with

2 the Panama Canal Treaty of 1977 and related agree3 ments, the Panama Canal Commission (hereinafter in this

4 Act referred to as the ‘Commission’) is established as a

5 wholly owned government corporation (as that term is

6 used in chapter 91 of title 31, United States Code) within

7 the executive branch of the Government of the United

8 States. The authority of the President with respect to the

9 Commission shall be exercised through the Secretary of

10 Defense.

11 ‘‘(b) The principal office of the Commission shall be

12 located in the Republic of Panama in one of the areas

13 made available for use of the United States under the

14 Panama Canal Treaty of 1977 and related agreements,

15 but the Commission may establish branch offices in such

16 other places as it deems necessary or appropriate for the

17 conduct of its business. Within the meaning of the laws

18 of the United States relating to venue in civil actions, the

19 Commission is an inhabitant and resident of the District

20 of Columbia and the eastern judicial district of Louisi21 ana.’’.

22 SEC. 3523. SUPERVISORY BOARD.

23 Section 1102 of the Panama Canal Act of 1979 (22

24 U.S.C. 3612) is amended by striking so much as precedes

25 subsection (b) and inserting the following:
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1 ‘‘SUPERVISORY BOARD

2 ‘‘SEC. 1102. (a) The Commission shall be supervised

3 by a Board composed of nine members, one of whom shall

4 be the Secretary of Defense or an officer of the Depart5 ment of Defense designated by the Secretary. Not less

6 than five members of the Board shall be nationals of the

7 United States and the remaining members of the Board

8 shall be nationals of the Republic of Panama. Three mem9 bers of the Board who are nationals of the United States

10 shall hold no other office in, and shall not be employed

11 by, the Government of the United States, and shall be cho12 sen for the independent perspective they can bring to the

13 Commission’s affairs. Members of the Board who are na14 tionals of the United States shall cast their votes as di15 rected by the Secretary of Defense or a designee of the

16 Secretary of Defense.’’.

17 SEC. 3524. INTERNATIONAL ADVISORS.

18 Section 1102 of the Panama Canal Act of 1979 (22

19 U.S.C. 3612) is amended by adding at the end the follow20 ing new subsection:

21 ‘‘(d)(1) In order to enhance the prestige of the Com22 mission in the world shipping community and allow for

23 the exchange of varied perspectives between the Board and

24 distinguished international guests in the important delib25 erations of the Commission, the Government of the United
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1 States and the Republic of Panama may each invite to

2 attend meetings of the Board, as a designated inter3 national advisor to the Board, one individual chosen for

4 the independent perspective that individual can bring to

5 the Commission’s affairs, and who—

6 ‘‘(A) is not a citizen of Panama;

7 ‘‘(B) does not represent any user or customer

8 of the Panama Canal, or any particular interest

9 group or nation; and

10 ‘‘(C) does not have any financial interest which

11 could constitute an actual or apparent conflict with

12 regard to the relationship of the individual with the

13 Board of the Commission.

14 ‘‘(2) Such designated international advisors may be

15 compensated by the Commission in the same manner and

16 under the same circumstances as apply under subsection

17 (b) with regard to members of the Board. Such designated

18 international advisors shall have no vote on matters pend19 ing before the Board.’’.

20 SEC. 3525. GENERAL AND SPECIFIC POWERS OF COMMIS21 SION.

22 The Panama Canal Act of 1979 (22 U.S.C. 3601 et

23 seq.) is amended by inserting after section 1102 the fol24 lowing new sections:
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1 ‘‘GENERAL POWERS OF THE COMMISSION

2 ‘‘SEC. 1102a. (a) The Commission, subject to the

3 Panama Canal Treaty of 1977 and related agreements,

4 and to chapter 91 of title 31, United States Code, popu5 larly known as the Government Corporation Control Act—

6 ‘‘(1) may adopt, alter, and use a corporate seal,

7 which shall be judicially noticed;

8 ‘‘(2) may by action of the Board of Directors

9 adopt, amend, and repeal bylaws governing the con10 duct of its general business and the performance of

11 the powers and duties granted to or imposed upon

12 it by law;

13 ‘‘(3) may sue and be sued in its corporate

14 name, except that—

15 ‘‘(A) its amenability to suit is limited by

16 Article VIII of the Panama Canal Treaty of

17 1977, section 1401 of this Act, and otherwise

18 by law;

19 ‘‘(B) an attachment, garnishment, or simi20 lar process may not be issued against salaries

21 or other moneys owed by the Commission to its

22 employees except as provided by section 5520a

23 of title 5, United States Code, and section 459,

24 461, and 462 of the Social Security Act (42

25 U.S.C. 659, 661, 662), or as otherwise specifi-
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1 cally authorized by the laws of the United

2 States; and

3 ‘‘(C) it is exempt from the payment of in4 terest on claims and judgments;

5 ‘‘(4) may enter into contracts, leases, agree6 ments, or other transactions; and

7 ‘‘(5) may determine the character of, and neces8 sity for, its obligations and expenditures and the

9 manner in which they shall be incurred, allowed, and

10 paid, and may incur, allow, and pay them, subject

11 to pertinent provisions of law generally applicable to

12 Government corporations.

13 ‘‘(b) The Commission shall have the priority of the

14 Government of the United States in the payment of debts

15 out of bankrupt estates.

16 ‘‘SPECIFIC POWERS OF COMMISSION

17 ‘‘SEC. 1102b. (a) Subject to the Panama Canal Trea18 ty of 1977 and related agreements, and to chapter 91 of

19 title 31, United States Code, popularly known as the Gov20 ernment Corporation Control Act, the Commission may—

21 ‘‘(1) manage, operate, and maintain the Pan22 ama Canal;

23 ‘‘(2) construct or acquire, establish, maintain,

24 and operate docks, wharves, piers, shoreline facili25 ties, shops, yards, marine railways, salvage and tow26 ing facilities, fuel-handling facilities, motor transpor-
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1 tation facilities, power systems, water systems, a

2 telephone system, construction facilities, living quar3 ters and other buildings, warehouses, storehouses, a

4 printing plant, and manufacturing, processing, or

5 service facilities in connection therewith, recreational

6 facilities, and other activities, facilities, and appur7 tenances necessary and appropriate for the accom8 plishment of the purposes of this Act;

9 ‘‘(3) use the United States mails in the same

10 manner and under the same conditions as the execu11 tive departments of the Federal Government; and

12 ‘‘(4) take such actions as are necessary or ap13 propriate to carry out the powers specifically con14 ferred upon it.’’.

15 SEC. 3526. CONGRESSIONAL REVIEW OF BUDGET.

16 Section 1302 of the Panama Canal Act of 1979 (22

17 U.S.C. 3712) is amended—

18 (1) in subsection (c)(1) by striking ‘‘and subject

19 to paragraph (2)’’;

20 (2) by striking paragraph (2);

21 (3) by redesignating paragraph (3) as para22 graph (2); and

23 (4) by amending subsection (e) to read as fol24 lows:
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1 ‘‘(e) In accordance with section 9104 of title 31,

2 United States Code, the Congress shall review the annual

3 budget of the Commission.’’.

4 SEC. 3527. AUDITS.

5 Section 1313 of the Panama Canal Act of 1979 (22

6 U.S.C. 3723) is amended—

7 (1) by striking the heading for the section and

8 inserting the following:

9 ‘‘AUDITS’’;

10 (2) in subsection (a) by striking ‘‘Financial

11 transactions’’ and inserting ‘‘Subject to subsection

12 (d), financial transactions’’;

13 (3) in subsection (b) in the first sentence by

14 striking ‘‘The Comptroller General’’ and inserting

15 ‘‘Subject to subsection (d), the Comptroller Gen16 eral’’; and

17 (4) by adding at the end the following new sub18 sections:

19 ‘‘(d) At the discretion of the Board provided for in

20 section 1102, the Commission may hire independent audi21 tors to perform, in lieu of the Comptroller General, the

22 audit and reporting functions prescribed in subsections (a)

23 and (b).

24 ‘‘(e) In addition to auditing the financial statements

25 of the Commission, the independent auditor shall, in ac26 cordance with standards for an examination of a financial
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1 forecast established by the American Institute of Certified

2 Public Accountants, examine and report on the Commis3 sion’s financial forecast that it will be in a position to meet

4 its financial liabilities on December 31, 1999.’’.

5 SEC. 3528. PRESCRIPTION OF MEASUREMENT RULES AND

6 RATES OF TOLLS.

7 Section 1601 of the Panama Canal Act of 1979 (22

8 U.S.C. 3791) is amended to read as follows:

9 ‘‘PRESCRIPTION OF MEASUREMENT RULES AND RATES OF

10 TOLLS

11 ‘‘SEC. 1601. The Commission may, subject to the

12 provisions of this Act, prescribe and from time to time

13 change—

14 ‘‘(1) the rules for the measurement of vessels

15 for the Panama Canal; and

16 ‘‘(2) the tolls that shall be levied for use of the

17 Panama Canal.’’.

18 SEC. 3529. PROCEDURES FOR CHANGES IN RULES OF MEAS19 UREMENT AND RATES OF TOLLS.

20 Section 1604 of the Panama Canal Act of 1979 (22

21 U.S.C. 3794) is amended—

22 (1) in subsection (a) in the first sentence by

23 striking ‘‘1601(a)’’ and inserting ‘‘1601’’;

24 (2) by amending subsection (c) to read as fol25 lows:
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1 ‘‘(c) After the proceedings have been conducted pur2 suant to subsections (a) and (b) of this section, the Com3 mission may change the rules of measurement or rates of

4 tolls, as the case may be. The Commission shall, however,

5 publish notice of such change in the Federal Register not

6 less than 30 days before the effective date of the change.’’;

7 and

8 (3) by striking subsections (d) and (e) and re9 designating subsection (f) as subsection (d).

10 SEC. 3530. MISCELLANEOUS TECHNICAL AMENDMENTS.

11 The Panama Canal Act of 1979 is amended—

12 (1) in section 1205 (22 U.S.C. 3645) in the last

13 sentence by striking ‘‘appropriation’’ and inserting

14 ‘‘fund’’;

15 (2) in section 1303 (22 U.S.C. 3713) by strik16 ing ‘‘The authority of this section may not be used

17 for administrative expenses.’’;

18 (3) in section 1321(d) (22 U.S.C. 3731(d)) in

19 the second sentence by striking ‘‘appropriations or’’;

20 (4) in section 1401(c) (22 U.S.C. 3761(c)) by

21 striking ‘‘appropriated for or’’;

22 (5) in section 1415 (22 U.S.C. 3775) by strik23 ing ‘‘appropriated or’’; and

24 (6) in section 1416 (22 U.S.C. 3776) in the

25 third sentence by striking ‘‘appropriated or’’.
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1 SEC. 3531. CONFORMING AMENDMENT TO TITLE 31, UNITED

2 STATES CODE.

3 Section 9101(3) of title 31, United States Code, is

4 amended by adding at the end the following:

5 ‘‘(P) the Panama Canal Commission.’’.

Passed the House of Representatives June 15, 1995.

Attest: ROBIN H. CARLE,

Clerk.

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