HOUSE OF REPRESENTATIVES

921

1995 T80.11

activities can be reduced by 50 percent or

more below the time established in the report of the Department of Energy Office of

Environmental Management titled ‘‘1995

Baseline Environmental Management Report’’, March 1995.

(d) SAVINGS PROVISION.—Nothing in this

section shall be construed as affecting a specific statutory requirement for a specific

project or as modifying or otherwise affecting applicable statutory or regulatory environmental restoration requirements, including substantive standards intended to protect public health and the environment.

Page 326 (section 805), line 5, strike ‘‘VESSEL COMPONENTS.—’’

and insert in lieu thereof ‘‘VESSEL COMPONENTS FOR ALL BRANCHES OF THE ARMED

FORCES.—’’.

Page 326 (section 805), strike lines 14

through 20 and insert in lieu thereof the following:

‘‘(B) The following components of vessels,

to the extent they are unique to marine applications: cable assemblies, hose assemblies,

hydraulics and pumps for steering, gyrocompasses, marine autopilots, electric navigation chart systems, navigators, attitude

and heading reference units, power supplies,

radars, steering controls, pumps, engines,

turbines, reduction gears, motors, refrigeration systems, generators, propulsion and machinery control systems, and totally enclosed lifeboards, including associated davits

and winches.’’.

Page 326, line 3, insert 3, insert ‘‘(1)’’ before

‘‘Paragraph (3)’’.

Page 326, line 20, insert the following:

(2) Section 2534 of such title is amended by

adding at the end the following new subsection:

‘‘(h) IMPLEMENTATION OF MARINE VESSEL

COMPONENT LIMITATION.—In implementing

subsection (a)(3)(B), the Secretary of

Defense—

‘‘(1) may not use contract clauses or certifications; and

‘‘(2) shall use management and oversight

techniques that achieve the objective of the

subsection without imposing a significant

management burden on the Government or

the contractor involved.’’.

At the end of subtitle C of title XXVIII

(page 490, after line 2), insert the following

new sections:

SEC. 2834. MODIFICATION OF EXISTING LAND

CONVEYANCE, HAMILTON AIR

FORCE BASE.

(a) AUTHORITIES IN EVENT OF PARTIAL

SALE.—In the event that the purchaser purchases only a portion of the Sale Parcel and

exercises its option to withdraw from the

sale as to the rest of the Sale Parcel, the

portion of the Sale Parcel that is not purchased (other than Landfill 26 and an appropriate buffer area around it and the groundwater treatment facility site), together with

any of the land referred to in section 9099(e)

of Public Law 102–396 that is not purchased

by the purchaser, may be sold to the City of

Novato, in the State of California, for the

sum of One Dollar as a public benefit transfer for school, classroom or other educational use, for use as a public park or

recreation area or for further conveyance as

provided herein, subject to the following restrictions: (1) if the City sells any portion of

such land to any third party within 10 years

after the transfer to the City, which sale

may be made without the foregoing use restrictions, any proceeds received by the City

in connection with such sale, minus the demonstrated reasonable costs of conducting the

sale and of any improvements made by the

City to the land following its acquisition of

the land (but only to the extent such improvements increase the value of the portion

sold), shall be immediately turned over to

the Army in reimbursement of the withdrawal payment made by the Army to the

contract purchaser and the costs of cleaning

up the Landfill and (2) until one year following completion of the cleanup of contaminated soil in the Landfill and completion of the groundwater treatment facilities,

the sale must be at a per-acre price for the

portion sold that is at least equal to the peracre contract price paid by the purchaser for

the portion of the Sale Parcel purchased

under the Agreement and Modification, as

amended, and thereafter must be at a price

at least equal to the fair market value of the

portion sold. The foregoing restrictions shall

not apply to a transfer to another public or

quasi-public agency for public uses of the

kind described above. The deed to the City

shall contain a clause providing that, if any

of the proceeds referred to in clause (1) are

not delivered to the Army within 30 days

after sale, or any portion of the land not sold

as provided herein is used for other than educational, park or recreational uses, title to

the applicable portion of such land shall revert to the United States at the election of

the Administrator of the General Services

Administration. The Secretary of the Army

shall agree to deliver into the applicable

closing escrow an acknowledgment of receipt

of any proceeds described in clause (1) above

and a release of the reverter right as to the

affected land, effective upon such receipt.

(b) SPECIAL CONVEYANCE REGARDING BUILDING 138 PARCEL.—The Secretary of the Army

may convey the Building 138 parcel, which

has been designated by the parties as Parcel

A4 to the purchaser of the Sale Parcel. The

per-acre price for the portion sold shall be at

least equal to the per-acre contract price

paid by the purchaser for the portion of the

Sale Parcel purchased under the Agreement

and Modification, dated September 25, 1990,

as amended.

SEC. 2835. TRANSFER OF JURISDICTION, FORT

BLISS, TEXAS.

(a) TRANSFER OF LAND FOR NATIONAL CEMETERY.—The Secretary of the Army may

transfer, without reimbursement, to the administrative jurisdiction of the Secretary of

Veterans Affairs a parcel of real property

(including any improvements thereon) consisting of approximately 22 acres and comprising a portion of Fort Bliss, Texas.

(b) USE OF LAND.—The Secretary of Veterans Affairs shall use the real property

transferred under subsection (a) as an addition to the Fort Bliss National Cemetery and

administer such real property pursuant to

chapter 24 of title 38, United States Code.

(c) RETURN OF UNUSED LAND.—If the Secretary of Veterans Affairs determines that

any portion of the real property transferred

under subsection (a) is not needed for use as

a national cemetery, the Secretary of Veterans Affairs shall return such portion to the

administrative jurisdiction of the Secretary

of the Army.

(d) LEGAL DESCRIPTION.—The exact acreage

and legal description of the real property to

be transferred under this section shall be determined by surveys that are satisfactory to

the Secretary of the Army. The cost of such

surveys shall be borne by the Secretary of

Veterans Affairs.

(e) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary of the Army may require such

additional terms and conditions in connection with the transfer under this section as

the Secretary of the Army considers appropriate to protect the interests of the United

States.

In the matter proposed to be added by section 805(c) (page 327, line 8), insert after

‘‘bearings)’’ the following: ‘‘, notwithstanding section 33 of the Office of Federal

Procurement Policy Act (41 U.S.C. 429)’’.

It was decided in the Yeas ....... 411 ! affirmative ................... Nays ...... 14

T80.11 [Roll No. 383]

AYES—411

Abercrombie

Ackerman

Allard

Andrews

Archer

Armey

Bachus

Baesler

Baker (CA)

Baker (LA)

Baldacci

Ballenger

Barcia

Barr

Barrett (NE)

Barrett (WI)

Bartlett

Barton

Bass

Bateman

Bentsen

Bereuter

Berman

Bevill

Bilbray

Bilirakis

Bishop

Bliley

Blute

Boehlert

Boehner

Bonilla

Bonior

Bono

Borski

Boucher

Brewster

Browder

Brown (CA)

Brown (FL)

Brown (OH)

Brownback

Bryant (TN)

Bryant (TX)

Bunn

Bunning

Burr

Burton

Buyer

Callahan

Calvert

Camp

Canady

Castle

Chabot

Chambliss

Chenoweth

Christensen

Chrysler

Clay

Clayton

Clement

Clinger

Clyburn

Coble

Coburn

Coleman

Collins (GA)

Collins (IL)

Collins (MI)

Combest

Condit

Cooley

Costello

Cox

Coyne

Cramer

Crane

Crapo

Cremeans

Cubin

Cunningham

Danner

Davis

de la Garza

Deal

DeLauro

DeLay

Dellums

Deutsch

Diaz-Balart

Dicks

Dingell

Dixon

Doggett

Dooley

Doolittle

Dornan

Doyle

Dreier

Duncan

Dunn

Durbin

Edwards

Ehlers

Ehrlich

Emerson

Engel

English

Ensign

Evans

Everett

Ewing

Farr

Fattah

Fawell

Fazio

Fields (LA)

Fields (TX)

Flanagan

Foglietta

Foley

Forbes

Ford

Fowler

Fox

Franks (CT)

Franks (NJ)

Frelinghuysen

Frisa

Frost

Funderburk

Gallegly

Ganske

Gejdenson

Gekas

Gephardt

Geren

Gibbons

Gilchrest

Gillmor

Gilman

Gonzalez

Goodlatte

Goodling

Gordon

Goss

Graham

Green

Greenwood

Gunderson

Gutierrez

Gutknecht

Hall (OH)

Hall (TX)

Hamilton

Hancock

Hansen

Harman

Hastert

Hastings (FL)

Hastings (WA)

Hayes

Hayworth

Hefley

Hefner

Heineman

Herger

Hilleary

Hilliard

Hinchey

Hobson

Hoekstra

Hoke

Holden

Horn

Hostettler

Houghton

Hoyer

Hunter

Hutchinson

Hyde

Inglis

Istook

Jackson-Lee

Jacobs

Jefferson

Johnson (CT)

Johnson (SD)

Johnson, E. B.

Johnson, Sam

Johnston

Jones

Kanjorski

Kaptur

Kasich

Kelly

Kennedy (MA)

Kennedy (RI)

Kennelly

Kildee

Kim

King

Kingston

Klink

Klug

Knollenberg

Kolbe

LaFalce

Lantos

Largent

Latham

LaTourette

Laughlin

Lazio

Leach

Levin

Lewis (CA)

Lewis (GA)

Lewis (KY)

Lightfoot

Lincoln

Linder

Lipinski

Livingston

LoBiondo

Lofgren

Longley

Lowey

Lucas

Luther

Maloney

Manton

Manzullo

Markey

Martinez

Martini

Mascara

Matsui

McCarthy

McCollum

McCrery

McDade

McDermott

McHale

McHugh

McInnis

McIntosh

McKinney

Meehan

Meek

Menendez

Metcalf

Meyers

Mfume

Mica

Miller (FL)

Mineta

Minge

Mink

Moakley

Molinari

Mollohan

Montgomery

Moorhead

Moran

Morella

Murtha

Myers

Neal

Nethercutt

Neumann

Ney

Norwood

Nussle

Oberstar

Obey

Olver

Ortiz

Orton

Owens

Oxley
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922

T80.11 JUNE 15

Packard

Pallone

Parker

Pastor

Paxon

Payne (NJ)

Payne (VA)

Pelosi

Peterson (FL)

Peterson (MN)

Petri

Pickett

Pombo

Pomeroy

Porter

Portman

Poshard

Pryce

Quillen

Quinn

Radanovich

Rahall

Ramstad

Rangel

Reed

Regula

Reynolds

Richardson

Riggs

Rivers

Roberts

Roemer

Rogers

Rohrabacher

Ros-Lehtinen

Rose

Roth

Roukema

Roybal-Allard

Royce

Rush

Sabo

Salmon

Sanders

Sanford

Sawyer

Saxton

Scarborough

Schaefer

Schiff

Schroeder

Schumer

Scott

Seastrand

Sensenbrenner

Serrano

Shadegg

Shaw

Shays

Shuster

Sisisky

Skaggs

Skeen

Skelton

Slaughter

Smith (MI)

Smith (NJ)

Smith (TX)

Smith (WA)

Solomon

Souder

Spence

Spratt

Stark

Stearns

Stenholm

Stokes

Studds

Stump

Stupak

Talent

Tanner

Tate

Tauzin

Taylor (MS)

Taylor (NC)

Tejeda

Thomas

Thompson

Thornberry

Thurman

Tiahrt

Torkildsen

Torres

Torricelli

Towns

Traficant

Tucker

Upton

Velazquez

Vento

Visclosky

Volkmer

Vucanovich

Waldholtz

Walker

Walsh

Wamp

Ward

Waters

Watt (NC)

Watts (OK)

Waxman

Weldon (FL)

Weldon (PA)

Weller

White

Whitfield

Wicker

Williams

Wilson

Wise

Wolf

Woolsey

Wyden

Wynn

Young (FL)

Zeliff

Zimmer

NOES—14

Becerra

Beilenson

Cardin

Conyers

DeFazio

Eshoo

Filner

Frank (MA)

Furse

LaHood

Miller (CA)

Myrick

Nadler

Stockman

NOT VOTING—9

Chapman

Dickey

Flake

Kleczka

McKeon

McNulty

Thornton

Yates

Young (AK)

So the amendments, en bloc, were

agreed to.

After some further time,

The SPEAKER pro tempore, Mr.

HAYWORTH, assumed the Chair.

When Mr. EMERSON, Chairman, pursuant to House Resolution 164, reported

the bill back to the House with an

amendment adopted by the Committee.

The previous question having been

ordered by said resolution.

The following amendment, reported

from the Committee of the Whole

House on the state of the Union, was

agreed to:

Strike out all after the enacting clause and

insert:

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘National Defense Authorization Act for Fiscal Year

1996’’.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS;

TABLE OF CONTENTS.

(a) DIVISIONS.—This Act is organized into

three divisions as follows:

(1) Division A—Department of Defense Authorizations.

(2) Division B—Military Construction Authorizations.

(3) Division C—Department of Energy National Security Authorizations and Other

Authorizations.

(b) TABLE OF CONTENTS.—The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Organization of Act into divisions;

table of contents.

Sec. 3. Congressional defense committees

defined.

DIVISION A—DEPARTMENT OF DEFENSE

AUTHORIZATIONS

TITLE I—PROCUREMENT

Subtitle A—Authorization of Appropriations

Sec. 101. Army.

Sec. 102. Navy and Marine Corps.

Sec. 103. Air Force.

Sec. 104. Defense-wide activities.

Sec. 105. Reserve components.

Sec. 106. Chemical demilitarization program.

Subtitle B—Army Programs

Sec. 111. Procurement of helicopters.

Sec. 112. Repeal of requirements for armored

vehicle upgrades.

Subtitle C—Navy Programs

Sec. 131. Repeal of prohibition on backfit of

Trident submarines.

Sec. 132. Repeal of limitation on total cost

for SSN–21 and SSN–22 Seawolf

submarines.

Sec. 133. Competition required for selection

of shipyards for construction of

vessels for next generation attack submarine program.

Sec. 134. Sonobuoy programs.

Subtitle D—Air Force Programs

Sec. 141. Repeal of limitations.

Subtitle E—Chemical Demilitarization

Program

Sec. 151. Repeal of requirement to proceed

expeditiously with development

of chemical demilitarization

cryofracture facility at Tooele

Army Depot, Utah.

Sec. 152. Sense of Congress regarding cost

growth in program for destruction of the existing stockpile of

lethal chemical agents and munitions.

Sec. 153. Assistance for chemical weapons

stockpile communities affected

by base closure.

TITLE II—RESEARCH, DEVELOPMENT,

TEST, AND EVALUATION

Subtitle A—Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Sec. 202. Amount for basic research and exploratory development.

Sec. 203. Modifications to Strategic Environmental Research and Development Program.

Subtitle B—Program Requirements,

Restrictions, and Limitations

Sec. 211. Space launch modernization.

Sec. 212. Maneuver variant unmanned aerial

vehicle.

Sec. 213. Tactical manned reconnaissance.

Sec. 214. Advanced lithography program.

Sec. 215. Enhanced fiber optic guided missile

system.

Sec. 216. Joint Advanced Strike Technology

(JAST) program.

Sec. 217. Development of laser program.

Subtitle C—Ballistic Missile Defense Act of

1995

Sec. 231. Short title.

Sec. 232. Ballistic missile defense policy of

the United States.

Sec. 233. Implementation of policy.

Sec. 234. Follow-on technologies research

and development.

Sec. 235. Policy on compliance with the

ABM Treaty.

Sec. 236. Ballistic missile defense program

accountability.

Sec. 237. ABM Treaty defined.

Sec. 238. Repeal of Missile Defense Act of

1991.

Subtitle D—Other Ballistic Missile Defense

Provisions

Sec. 241. Ballistic missile defense funding

for fiscal year 1996.

Sec. 242. Policy concerning ballistic missile

defense.

Sec. 243. Testing of theater missile defense

interceptors.

Sec. 244. Repeal of missile defense provisions.

Subtitle E—Other Matters

Sec. 251. Allocation of funds for medical

countermeasures against biowarfare threats.

Sec. 252. Analysis of consolidation of basic

research accounts of military

departments.

Sec. 253. Change in reporting period from

calendar year to fiscal year for

annual report on certain contracts to colleges and universities.

Sec. 254. Modification to University Research Initiative Support Program.

Sec. 255. Advanced Field Artillery System

(Crusader).

Sec. 256. Review of C4I by National Research

Council.

Sec. 257. Five-year plan for federally funded

research and development centers (FFRDCs).

Sec. 258. Manufacturing technology program.

Sec. 259. Five-year plan for consolidation of

defense laboratories and test

and evaluation centers.

Sec. 260. Aeronautical research and test capabilities assessment.

Sec. 261. Limitation on T–38 Avionics Upgrade Program.

Sec. 262. Cross reference to congressional defense policy concerning national technology and industrial base, reinvestment, and

conversion in operation of defense research and development

programs.

Sec. 263. Demilitarization of conventional

munitions, rockets, and explosives.

Sec. 264. Fiber optic acoustic sensor system.

Sec. 265. Joint targeting support system

testbed.

TITLE III—OPERATION AND

MAINTENANCE

Subtitle A—Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

Sec. 302. Working capital funds.

Sec. 303. Armed Forces Retirement Home.

Sec. 304. Office of Economic Adjustment.

Subtitle B—Defense Business Operations

Fund

Sec. 311. Codification of Defense Business

Operations Fund.

Sec. 312. Retention of centralized management of Defense Business Operations Fund and prohibition on

further expansion of Fund.

Sec. 313. Charges for goods and services provided through Defense Business

Operations Fund and termination of advance billing practices.

Sec. 314. Annual proposed budget for operation of Defense Business Operations Fund.

Sec. 315. Reduction in requests for transportation funded through Defense

Business Operations Fund.

Subtitle C—Environmental Provisions

Sec. 321. Clarification of services and property that may be exchanged to

benefit the historical collection

of the Armed Forces.

Sec. 322. Addition of amounts creditable to

Defense Environmental Restoration Account.

Sec. 323. Repeal of certain environmental

education programs.
HOUSE OF REPRESENTATIVES

923

1995 T80.11

Sec. 324. Repeal of limitation on obligation

of amounts transferred from environmental restoration transfer account.

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

profiles.

Sec. 326. Sense of Congress on use of Defense

Environmental Restoration Account.

Subtitle D—Civilian Employees and Nonappropriated Fund Instrumentality Employees

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

Sec. 332. Management of depot employees.

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

positions.

Sec. 334. Personnel actions involving employees of nonappropriated fund

instrumentalities.

Sec. 335. Limitation on provision of overseas

living quarters allowances for

nonappropriated fund instrumentality employees.

Sec. 336. Overtime exemption for nonappropriated fund employees.

Sec. 337. Continued health insurance coverage.

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

Subtitle E—Commissaries and

Nonappropriated Fund Instrumentalities

Sec. 341. Operation of commissary store system.

Sec. 342. Pricing policies for commissary

store merchandise.

Sec. 343. Limited release of commissary

stores sales information to

manufacturers, distributors,

and other vendors doing business with Defense Commissary

Agency.

Sec. 344. Economical distribution of distilled

spirits by nonappropriated fund

instrumentalities.

Sec. 345. Transportation by commissaries

and exchanges to overseas locations.

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

at certain military installations.

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

Naval Air Station and authority to expand base exchange

mart program.

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

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

Air Force Exchange Service on

account of troop reductions in

Europe.

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

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

fund instrumentalities.

Subtitle F—Contracting Out

Sec. 357. Procurement of electricity from

most economical source.

Sec. 358. Procurement of certain commodities from most economical

source.

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

Sec. 360. Direct delivery of assorted

consumable inventory items of

Department of Defense.

Sec. 361. Private operation of functions of

Defense Reutilization and Marketing Service.

Sec. 362. Private operation of payroll functions of Department of Defense

for payment of civilian employees.

Sec. 363. Demonstration program to identify

underdeductions and overpayments made to vendors.

Sec. 364. Pilot program to evaluate potential

for private operation of overseas dependents’ schools.

Sec. 365. Pilot program for evaluation of improved defense travel processing prototypes.

Sec. 366. Pilot program for private operation

of consolidated information

technology functions of Department of Defense.

Sec. 367. Increased reliance on the private

sector.

Sec. 368. Pilot program for private operation

of payroll and accounting functions of nonappropriated fund

instrumentalities.

Subtitle G—Miscellaneous Reviews, Studies,

and Reports

Sec. 371. Quarterly readiness reports.

Sec. 372. Reports required regarding expenditures for emergency and extraordinary expenses.

Sec. 373. Restatement of requirement for

semiannual reports to Congress

on transfers from high-priority

readiness appropriations.

Sec. 374. Modification of notification requirement regarding use of core

logistics functions waiver.

Sec. 375. Limitation on development or modernization of automated information systems of Department

of Defense pending report.

Sec. 376. Report regarding reduction of costs

associated with contract management oversight.

Subtitle H—Other Matters

Sec. 381. Prohibition on capital lease for Defense Business Management

University.

Sec. 382. Authority of Inspector General

over investigations of procurement fraud.

Sec. 383. Provision of equipment and facilities to assist in emergency response actions.

Sec. 384. Conversion of the Civilian Marksmanship Program to a federally

chartered nonprofit corporation.

Sec. 385. Personnel services and logistical

support for certain activities

held on military installations.

Sec. 386. Retention of monetary awards.

Sec. 387. Civil Reserve Air Fleet.

Sec. 388. Permanent authority regarding use

of proceeds from sale of lost,

abandoned, and unclaimed personal property at certain installations.

Sec. 389. Transfer of excess personal property to support law enforcement activities.

Sec. 390. Development and implementation

of innovative processes to improve operation and maintenance.

Sec. 391. Review of use of Defense Logistics

Agency to manage inventory

control points.

Sec. 392. Sale of 50 percent of current war reserve fuel stocks.

Sec. 393. Military clothing sales stores, replacement sales.

Sec. 394. Assistance to local educational

agencies that benefit dependents of members of the Armed

Forces and Department of Defense civilian employees.

Sec. 395. Core logistics capabilities of the

Department of Defense.

Sec. 396. Expansion of Southwest Border

States Anti-Drug Information

System.

TITLE IV—MILITARY PERSONNEL

AUTHORIZATIONS

Subtitle A—Active Forces

Sec. 401. End strengths for active forces.

Sec. 402. Temporary variations in DOPMA

authorized end strength limitations for active duty Navy and

Air Force officers in certain

grades.

Subtitle B—Reserve Forces

Sec. 411. End strengths for Selected Reserve.

Sec. 412. End strengths for Reserves on active duty in support of the Reserves.

Sec. 413. Counting of certain active component personnel assigned in support of Reserve component

training.

Subtitle C—Military Training Student Loads

Sec. 421. Authorization of training student

loads.

Subtitle D—Authorization of Appropriations

Sec. 431. Authorization of appropriations for

military personnel.

Sec. 432. Authorization for increase in active-duty end strengths.

TITLE V—MILITARY PERSONNEL POLICY

Subtitle A—Officer Personnel Policy

Sec. 501. Authority to extend transition period for officers selected for

early retirement.

Subtitle B—Matters Relating to Reserve

Components

Sec. 511. Military technician full-time support program for Army and Air

Force reserve components.

Sec. 512. Military leave for military reserve

technicians for certain duty

overseas.

Sec. 513. Revisions to Army Guard combat

reform initiative to include

Army reserve under certain

provisions and make certain revisions.

Sec. 514. ROTC scholarships for the National

Guard.

Sec. 515. Report on feasibility of providing

education benefits protection

insurance for service academy

and ROTC scholarship students

who become medically unable

to serve.

Sec. 516. Active duty officers detailed to

ROTC duty at senior military

colleges to serve as Commandant and Assistant Commandant of Cadets and as tactical officers.

Sec. 517. Mobilization income insurance program for members of Ready Reserve.

Sec. 518. Delay in reorganization of Army

ROTC regional headquarters

structure.

Sec. 519. Active duty associate unit responsibility.

Subtitle C—Matters Relating to Force Levels

Sec. 521. Floor on end strengths.

Sec. 522. Army officer manning levels.

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

Sec. 524. Manning status of highly

deployable support units.

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

Subtitle D—Amendments to the Uniform

Code of Military Justice

Sec. 541. References to Uniform Code of

Military Justice.
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T80.11 JUNE 15

Sec. 542. Forfeiture of pay and allowances

during confinement by sentence

of court-martial.

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

Sec. 544. Flight from apprehension.

Sec. 545. Carnal knowledge.

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

of Military Justice.

Sec. 547. Persons who may appear before the

United States Court of Appeals

for the Armed Forces.

Sec. 548. Discretionary representation by

Government appellate defense

counsel in petitioning Supreme

Court for writ of certiorari.

Sec. 549. Repeal of termination of authority

for Chief Justice of United

States to designate Article III

judges for temporary service on

Court of Appeals for the Armed

Forces.

Sec. 550. Technical amendment.

Subtitle E—Other Matters

Sec. 551. Equalization of accrual of service

credit for officers and enlisted

members.

Sec. 552. Extension of expiring personnel authorities.

Sec. 553. Increase in educational assistance

allowance with respect to skills

or specialties for which there is

a critical shortage of personnel.

Sec. 554. Amendments to education loan repayment programs.

Sec. 555. Recognition by States of living

wills of members, certain

former members, and their dependents.

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

Armed Forces separated for dependent abuse.

Sec. 557. Army ranger training.

Sec. 558. Repeal of certain civil-military

programs.

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

service in El Salvador.

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

Child Care Act.

Sec. 561. Discharge of members of the Armed

Forces who have the HIV–1

virus.

Sec. 562. Authority to appoint Brigadier

General Charles E. Yeager,

United States Air Forces (retired) to the grade of major

general on the retired list.

Sec. 563. Determination of whereabouts and

status of missing persons.

Sec. 564. Nominations to service academies

from Commonwealth of the

Northern Marianas Islands.

Sec. 565. Report on the consistency of reporting of fingerprint cards and

final disposition forms to the

Federal Bureau of Investigation.

Sec. 566. Separation benefits during force reduction for officers of commissioned corps of National Oceanic and Atmospheric Administration.

TITLE VI—COMPENSATION AND OTHER

PERSONNEL BENEFITS

Subtitle A—Pay and Allowances

Sec. 601. Military pay raise for fiscal year

1996.

Sec. 602. Limitation on basic allowance for

subsistence for members without dependents residing in Government quarters.

Sec. 603. Authorization of payment of basic

allowance for quarters to additional members assigned to sea

duty.

Sec. 604. Establishment of minimum

amounts of variable housing allowance for high housing cost

areas and additional limitation

on reduction of allowance for

certain members.

Sec. 605. Clarification of limitation on receipt of family separation allowance.

Subtitle B—Bonuses and Special and

Incentive Pays

Sec. 611. Extension of certain bonuses for reserve forces.

Sec. 612. Extension of certain bonuses and

special pay for nurse officer

candidates, registered nurses,

and nurse anesthetists.

Sec. 613. Extension of authority relating to

payment of other bonuses and

special pays.

Sec. 614. Codification and extension of special pay for critically short

wartime health specialists in

the Selected Reserves.

Sec. 615. Change in eligibility requirements

for continuous monthly aviation incentive pay.

Sec. 616. Continuous entitlement to career

sea pay for crewmembers of

ships designated as tenders.

Sec. 617. Increase in maximum rate of special duty assignment pay for

enlisted members serving as recruiters.

Subtitle C—Travel and Transportation

Allowances

Sec. 621. Authorization of return to United

States of formerly dependent

children of members.

Sec. 622. Authorization of dislocation allowance for moves in connection

with base realignments and closures.

.Sec. 623. Repeal of prohibition on payment

of lodging expenses when adequate Government quarters are

available.

Subtitle D—Other Matters

Sec. 631. Elimination of unnecessary annual

reporting requirements regarding compensation matters.

Sec. 632. Study regarding joint process for

determining location of recruiting stations.

Sec. 633. Elimination of disparity between

effective dates for military and

civilian retiree cost-of-living

adjustments for fiscal year 1996.

TITLE VII—HEALTH CARE PROVISIONS

Subtitle A—Health Care Services

Sec. 701. Modification of requirements regarding routine physical examinations and immunizations

under CHAMPUS.

Sec. 702. Correction of inequities in medical

and dental care and death and

disability benefits for certain

Reservists.

Sec. 703. Medical and dental care for members of the Selected Reserve.

Subtitle B—TRICARE Program

Sec. 711. Priority use of military treatment

facilities for persons enrolled in

managed care initiatives.

Sec. 712. Staggered payment of enrollment

fees for TRICARE.

Sec. 713. Requirement of budget neutrality

for TRICARE to be based on entire program.

Sec. 714. Training in health care management and administration for

TRICARE lead agents.

Sec. 715. Evaluation and report on TRICARE

effectiveness.

Subtitle C—Uniformed Services Treatment

Facilities

Sec. 721. Limitation on expenditures to support Uniformed Services Treatment Facilities and limitation

on number of participants in

USTF managed care plans.

Sec. 722. Application of Federal acquisition

regulation to participation

agreements with Uniformed

Services Treatment Facilities.

Sec. 723. Development of plan for integrating Uniformed Services

Treatment Facilities in managed care programs of Department of Defense.

Sec. 724. Equitable implementation of uniform cost sharing requirements

for Uniformed Services Treatment Facilities.

Subtitle D—Other Changes to Existing Laws

Regarding Health Care Management

Sec. 731. Maximum allowable payments to

individual health-care providers

under CHAMPUS.

Sec. 732. Expansion of existing restriction

on use of defense funds for abortions.

Sec. 733. Identification of third-party payer

situations.

Sec. 734. Redesignation of Military Health

Care Account as Defense Health

Program Account and two-year

availability of certain Account

funds.

Sec. 735. Expansion of financial assistance

program for health-care professionals in reserve components

to include dental specialties.

Sec. 736. Elimination of unnecessary annual

reporting requirements regarding military health care.

Subtitle E—Other Matters

Sec. 741. Termination of program to train

and utilize military psychologists to prescribe psychotropic

medications.

Sec. 742. Waiver of collection of payments

due from certain persons unaware of loss of CHAMPUS eligibility.

Sec. 743. Notification of certain CHAMPUS

covered beneficiaries of loss of

CHAMPUS eligibility.

Sec. 744. Demonstration program to train

military medical personnel in

civilian shock trauma units.

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

Sec. 746. Study regarding expanded mental

health services for certain covered beneficiaries.

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

beneficiaries entitled to Medicare.

Sec. 748. Sense of Congress on continuity of

health care services for covered

beneficiaries adversely affected

by closures of military medical

treatment facilities.

TITLE VIII—ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED

MATTERS

Subtitle A—Competition

Sec. 801. Competition provisions.

Sec. 802. Preaward debriefings.

Sec. 803. Contract types.

Subtitle B—Commercial Items

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

data and information limitations.

Sec. 812. Application of simplified procedures to commercial items.
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1995 T80.11

Sec. 813. Amendment to definition of commercial items.

Sec. 814. Inapplicability of cost accounting

standards to contracts and subcontracts for commercial

items.

Subtitle C—Additional Reform Provisions

Sec. 821. Repeals of certain procurement

provisions.

Sec. 822. Fees for certain testing services.

Sec. 823. Testing of defense acquisition programs.

Sec. 824. Coordination and communication

of defense research activities.

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

Sec. 826. Revisions to procurement notice

provisions.

Sec. 827. Encouragement of use of leasing

authority.

Sec. 828. Government reliance on the private

sector.

Sec. 829. Elimination of certain certification

requirements.

Sec. 830. Amendment to commencement and

expiration of authority to conduct certain tests of procurement procedures.

Sec. 831. Procurement integrity.

Sec. 832. Further acquisition streamlining

provisions.

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

goals.

Sec. 834. Enhanced performance incentives

for acquisition workforce.

Sec. 835. Results oriented acquisition program cycle.

Sec. 836. Rapid contracting goal.

Sec. 837. Encouragement of multiyear contracting.

Sec. 838. Contractor share of gains and

losses from cost, schedule, and

performance experience.

Sec. 839. Phase funding of defense acquisition programs.

Sec. 840. Improved Department of Defense

contract payment procedures.

Sec. 841. Consideration of past performance

in assignment to acquisition

positions.

Sec. 842. Value engineering for Federal

agencies.

Sec. 843. Acquisition workforce.

Sec. 844. Cost reimbursement rules for indirect costs attributable to private sector work of defense contractors.

Subtitle D—Streamlining of Dispute

Resolution

PART I—GENERAL PROVISIONS

Sec. 850. Definitions.

PART II—ESTABLISHMENT OF THE UNITED

STATES BOARD OF CONTRACT APPEALS

Sec. 851. Establishment.

Sec. 852. Membership.

Sec. 853. Chairman.

Sec. 854. Rulemaking authority.

Sec. 855. Litigation authority.

Sec. 856. Seal of Board.

Sec. 857. Authorization of appropriations.

PART III—FUNCTIONS OF UNITED STATES

BOARD OF CONTRACT APPEALS

Sec. 861. Alternative dispute resolution services.

Sec. 862. Alternative dispute resolution of

disputes and protests submitted

to Board.

Sec. 863. Contract disputes.

Sec. 864. Protests.

Sec. 865. Applicability to contracts for commercial items.

PART IV—REPEAL OF OTHER STATUTES

AUTHORIZING ADMINISTRATIVE PROTESTS

Sec. 871. Repeals.

PART V—TRANSFERS AND TRANSITIONAL,

SAVINGS, AND CONFORMING PROVISIONS

Sec. 881. Transfer and allocation of appropriations and personnel.

Sec. 882. Terminations and savings provisions.

Sec. 883. Contract dispute authority of

Board.

Sec. 884. References to agency boards of contract appeals.

Sec. 885. Conforming amendments.

PART VI—EFFECTIVE DATE; INTERIM

APPOINTMENT AND RULES

Sec. 891. Effective date.

Sec. 892. Interim appointment.

Sec. 893. Interim rules.

Subtitle E—Effective Dates and

Implementation

Sec. 895. Effective date and applicability.

Sec. 896. Implementing regulations.

TITLE IX—DEPARTMENT OF DEFENSE

ORGANIZATION AND MANAGEMENT

Sec. 901. Reorganization of Office of the Secretary of Defense.

Sec. 902. Restructuring of Department of Defense acquisition organization

and workforce.

Sec. 903. Plan for incorporation of Department of Energy national security functions in Department of

Defense.

Sec. 904. Change in titles of certain Marine

Corps general officer billets resulting from reorganization of

the Headquarters, Marine

Corps.

Sec. 905. Inclusion of Information Resources

Management College in the National Defense University.

Sec. 906. Employment of civilians at the

Asia-Pacific Center for Security Studies.

Sec. 907. Continued operation of Uniformed

Services University of the

Health Sciences.

Sec. 908. Redesignation of Advanced Research Projects Agency.

Sec. 909. Naval Nuclear Propulsion Program.

Sec. 910. Aviation testing consolidation.

TITLE X—GENERAL PROVISIONS

Subtitle A—Financial Matters

Sec. 1001. Transfer authority.

Sec. 1002. Incorporation of Classified Annex.

Sec. 1003. Improved funding mechanisms for

unbudgeted operations.

Sec. 1004. Designation and liability of disbursing and certifying officials.

Sec. 1005. Authority for obligation of certain

unauthorized fiscal year 1995

defense appropriations.

Sec. 1006. Authorization of prior emergency

supplemental appropriations

for fiscal year 1995.

Sec. 1007. Prohibition of incremental funding of procurement items.

Subtitle B—Naval Vessels and Shipyards

Sec. 1021. Contract options for LMSR vessels.

Sec. 1022. Vessels subject to repair under

phased maintenance contracts.

Sec. 1023. Clarification of requirements relating to repairs of vessels.

Sec. 1024. Naming of naval vessel.

Sec. 1025. Transfer of riverine patrol craft.

Subtitle C—Other Matters

Sec. 1031. Termination and modification of

authorities regarding national

defense technology and industrial base, defense reinvestment, and defense conversion

programs.

Sec. 1032. Repeal of miscellaneous provisions

of law.

Sec. 1033. Policy concerning excess defense

industrial capacity.

Sec. 1034. ROTC access to campuses.

Sec. 1035. Application of Buy American Act

principles.

TITLE XI—COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET

UNION

Sec. 1101. Specification of Cooperative

Threat Reduction programs.

Sec. 1102. Fiscal year 1996 authorization.

Sec. 1103. Repeal of demilitarization enterprise fund authority.

Sec. 1104. Prohibition on use of funds for

peacekeeping exercises and related activities with Russia.

Sec. 1105. Revision to authority for assistance for weapons destruction.

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

Sec. 1107. Report on accounting for United

States assistance.

Sec. 1108. Limitation on Cooperative Threat

Reduction program relating to

offensive biological weapons

program in Russia.

TITLE XII—MATTERS RELATING TO

OTHER NATIONS

Subtitle A—Peacekeeping Provisions

Sec. 1201. Limitation on expenditure of Department of Defense funds for

United States forces placed

under United Nations command

or control.

Sec. 1202. Limitation on use of Department

of Defense funds for United

States share of costs of United

Nations peacekeeping activities.

Subtitle B—Humanitarian Assistance

Programs

Sec. 1211. Overseas Humanitarian, Disaster,

and Civic Aid programs.

Sec. 1212. Humanitarian assistance.

Sec. 1213. Landmine clearance program.

Subtitle C—Other Matters

Sec. 1221. Revision of definition of landmine

for purposes of landmine export

moratorium.

Sec. 1222. Extension and amendment of

counterproliferation authorities.

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

United States-People’s Republic of China Joint Defense Conversion Commission.

Sec. 1224. Defense export loan guarantees.

Sec. 1225. Accounting for burdensharing contributions.

Sec. 1226. Authority to accept contributions

for expenses of relocation within host nation of United States

Armed Forces overseas.

Sec. 1227. Sense of Congress on ABM treaty

violations.

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

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

II Treaty.

Sec. 1230. Sense of the Congress regarding

the Chemical Weapons Convention.

DIVISION B—MILITARY CONSTRUCTION

AUTHORIZATIONS

Sec. 2001. Short title.

TITLE XXI—ARMY

Sec. 2101. Authorized Army construction

and land acquisition projects.

Sec. 2102. Family housing.

Sec. 2103. Improvements to military family

housing units.

Sec. 2104. Authorization of appropriations,

Army.

TITLE XXII—NAVY

Sec. 2201. Authorized Navy construction and

land acquisition projects.

Sec. 2202. Family housing.

Sec. 2203. Improvements to military family

housing units.
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Sec. 2204. Authorization of appropriations,

Navy.

TITLE XXIII—AIR FORCE

Sec. 2301. Authorized Air Force construction

and land acquisition projects.

Sec. 2302. Family housing.

Sec. 2303. Improvements to military family

housing units.

Sec. 2304. Authorization of appropriations,

Air Force.

Sec. 2305. Retention of accrued interest on

funds deposited for construction of family housing, Scott

Air Force Base, Illinois.

TITLE XXIV—DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition

projects.

Sec. 2402. Family housing private investment.

Sec. 2403. Improvements to military family

housing units.

Sec. 2404. Energy conservation projects.

Sec. 2405. Authorization of appropriations,

Defense Agencies.

Sec. 2406. Modification of authority to carry

out fiscal year 1995 projects.

Sec. 2407. Limitation on expenditures for

construction project at

Umatilla Army Depot, Oregon.

TITLE XXV—NORTH ATLANTIC TREATY

ORGANIZATION INFRASTRUCTURE

Sec. 2501. Authorized NATO construction

and land acquisition projects.

Sec. 2502. Authorization of appropriations,

NATO.

TITLE XXVI—GUARD AND RESERVE

FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve

construction and land acquisition projects.

Sec. 2602. Correction in authorized uses of

funds for Army National Guard

projects in Mississippi.

TITLE XXVII—EXPIRATION AND

EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and

amounts required to be specified by law.

Sec. 2702. Extension of authorizations of certain fiscal year 1993 projects.

Sec. 2703. Extension of authorizations of certain fiscal year 1992 projects.

Sec. 2704. Effective date.

TITLE XXVIII—GENERAL PROVISIONS

Subtitle A—Military Construction Program

and Military Family Housing Changes

Sec. 2801. Alternative means of acquiring

and improving military family

housing and supporting facilities for the Armed Forces.

Sec. 2802. Inclusion of other Armed Forces

in Navy program of limited

partnerships with private developers for military housing.

Sec. 2803. Special unspecified minor construction thresholds for

projects to correct life, health,

and safety deficiencies and clarification of unspecified minor

construction authority.

Sec. 2804. Disposition of amounts recovered

as a result of damage to real

property.

Sec. 2805. Rental of family housing in foreign countries.

Sec. 2806. Pilot program to provide interest

rate buy down authority on

loans for housing within housing shortage areas at military

installations.

Subtitle B—Base Closure and Realignment

Sec. 2811. Authority to transfer property at

military installations to be

closed to persons who construct

or provide military family

housing.

Sec. 2812. Deposit of proceeds from leases of

property located at installations being closed or realigned.

Sec. 2813. Agreements for certain services at

installations being closed.

Sec. 2814. Removal of base closure properties

from application of section 501

of the Stewart B. McKinney

Homeless Assistance Act.

Subtitle C—Land Conveyances Generally

Sec. 2821. Transfer of jurisdiction, Fort Sam

Houston, Texas.

Sec. 2822. Land acquisition or exchange,

Shaw Air Force Base, Sumter,

South Carolina.

Sec. 2823. Transfer of certain real property

at Naval Weapons Industrial

Reserve Plant, Calverton, New

York, for use as national cemetery.

Sec. 2824. Land conveyance, Fort Ord, California.

Sec. 2825. Land conveyance, Indiana Army

Ammunition Plant, Charlestown, Indiana.

Sec. 2826. Land conveyance, Naval Air Station, Pensacola, Florida.

Sec. 2827. Land conveyance, Avon Park Air

Force Range, Sebring, Florida.

Sec. 2828. Land conveyance, Parks Reserve

Forces Training Area, Dublin,

California.

Sec. 2829. Land conveyance, Holston Army

Ammunition Plant, Mount Carmel, Tennessee.

Sec. 2830. Land conveyance, Naval Weapons

Industrial Reserve Plant,

McGregor, Texas.

Sec. 2831. Transfer of jurisdiction and land

conveyance, Fort Devens Military Reservation, Massachusetts.

Sec. 2832. Land conveyance, Elmendorf Air

Force Base, Alaska.

Sec. 2833. Land conveyance alternative to

existing lease authority, Naval

Supply Center, Oakland, California.

Sec. 2834. Land conveyance, Army Reserve

Center, Youngstown, Ohio.

Sec. 2835. Modification of land conveyance,

Naval Weapons Industrial Reserve Plant, Calverton, New

York.

Sec. 2836. Land exchange, Fort Lewis, Washington.

Sec. 2837. Modification of existing land conveyance, Hamilton Air Force

Base.

Sec. 2838. Transfer of jurisdiction, Fort

Bliss, Texas.

Subtitle D—Land Conveyances Involving

Utilities

Sec. 2841. Conveyance of resource recovery

facility, Fort Dix, New Jersey.

Sec. 2842. Conveyance of water and wastewater treatment plants, Fort

Gordon, Georgia.

Sec. 2843. Conveyance of electrical distribution system, Fort Irwin, California.

Subtitle E—Other Matters

Sec. 2851. Expansion of authority to sell

electricity.

Sec. 2852. Authority for Mississippi State

Port Authority to use Navy

property at Naval Construction

Battalion Center, Gulfport,

Mississippi.

Sec. 2853. Prohibition on joint civil aviation

use of Naval Air Station

Miramar, California.

Sec. 2854. Report regarding Army water

craft support facilities and activities.

DIVISION C—DEPARTMENT OF ENERGY

NATIONAL SECURITY AUTHORIZATIONS

AND OTHER AUTHORIZATIONS

TITLE XXXI—DEPARTMENT OF ENERGY

NATIONAL SECURITY PROGRAMS

Subtitle A—National Security Programs

Authorizations

Sec. 3101. Weapons activities.

Sec. 3102. Environmental restoration and

waste management.

Sec. 3103. Payment of penalties.

Sec. 3104. Other defense activities.

Sec. 3105. Defense nuclear waste disposal.

Subtitle B—Recurring General Provisions

Sec. 3121. Reprogramming.

Sec. 3122. Limits on general plant projects.

Sec. 3123. Limits on construction projects.

Sec. 3124. Fund transfer authority.

Sec. 3125. Authority for conceptual and construction design.

Sec. 3126. Authority for emergency planning, design, and construction

activities.

Sec. 3127. Funds available for all national

security programs of the Department of Energy.

Sec. 3128. Availability of funds.

Subtitle C—Program Authorizations,

Restrictions, and Limitations

Sec. 3131. Authority to conduct program relating to fissile materials.

Sec. 3132. National Ignition Facility.

Sec. 3133. Tritium production.

Subtitle D—Other Matters

Sec. 3141. Report on foreign tritium purchases.

Sec. 3142. Study on nuclear test readiness

postures.

Sec. 3143. Master plan on warheads in the

enduring stockpile.

Sec. 3144. Prohibition on international inspections of Department of Energy facilities unless protection

of restricted data is certified.

Sec. 3145. Accelerated schedule for environmental management activities.

TITLE XXXII—DEFENSE NUCLEAR

FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

TITLE XXXIII—NATIONAL DEFENSE

STOCKPILE

Sec. 3301. Fiscal year 1996 authorized uses of

stockpile funds.

Sec. 3302. Preference for domestic upgraders

in disposal of chromite and

manganese ores and chromium

ferro and manganese metal

electrolytic.

Sec. 3303. Restrictions on disposal of manganese ferro.

Sec. 3304. Titanium initiative to support

battle tank upgrade program.

TITLE XXXIV—NAVAL PETROLEUM

RESERVES

Sec. 3401. Authorization of appropriations.

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

year 1996.

Sec. 3403. Sale of Naval Petroleum Reserve

Numbered 1 (Elk Hills).

Sec. 3404. Study regarding future of naval

petroleum reserves (other than

Naval Petroleum Reserve Numbered 1).

TITLE XXXV—PANAMA CANAL

COMMISSION

Subtitle A—Authorization of Appropriations

Sec. 3501. Short title.

Sec. 3502. Authorization of expenditures.

Sec. 3503. Expenditures in accordance with

other laws.

Subtitle B—Reconstitution of Commission as

Government Corporation

Sec. 3521. Short title.
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1995 T80.11

Sec. 3522. Reconstitution of commission as

government corporation.

Sec. 3523. Supervisory board.

Sec. 3524. International advisors.

Sec. 3525. General and specific powers of

commission.

Sec. 3526. Congressional review of budget.

Sec. 3527. Audits.

Sec. 3528. Prescription of measurement rules

and rates of tolls.

Sec. 3529. Procedures for changes in rules of

measurement and rates of tolls.

Sec. 3530. Miscellaneous technical amendments.

Sec. 3531. Conforming amendment to title

31, United States Code.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES

DEFINED.

For purposes of this Act, the term ‘‘congressional defense committees’’ means—

(1) the Committee on Armed Services and

the Committee on Appropriations of the Senate; and

(2) the Committee on National Security

and the Committee on Appropriations of the

House of Representatives.

DIVISION A—DEPARTMENT OF DEFENSE

AUTHORIZATIONS

TITLE I—PROCUREMENT

Subtitle A—Authorization of Appropriations

SEC. 101. ARMY.

Funds are hereby authorized to be appropriated for fiscal year 1996 for procurement

for the Army as follows:

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

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

(3) For weapons and tracked combat vehicles, $1,359,664,000.

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

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

SEC. 102. NAVY AND MARINE CORPS.

(a) NAVY.—Funds are hereby authorized to

be appropriated for fiscal year 1996 for procurement for the Navy as follows:

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

(2) For weapons, including missiles and

torpedoes, $1,626,411,000.

(3) For shipbuilding and conversion,

$6,227,958,000.

(4) For other procurement, $2,461,472,000.

(b) MARINE CORPS.—Funds are hereby authorized to be appropriated for fiscal year

1996 for procurement for the Marine Corps in

the amount of $399,247,000.

(c) NAVY AND MARINE CORPS AMMUNITION.—

Funds are hereby authorized to be appropriated for procurement of ammunition for

Navy and the Marine Corps in the amount of

$461,779,000.

SEC. 103. AIR FORCE.

Funds are hereby authorized to be appropriated for fiscal year 1996 for procurement

for the Air Force as follows:

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

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

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

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

SEC. 104. DEFENSE-WIDE ACTIVITIES.

Funds are hereby authorized to be appropriated for fiscal year 1996 for Defense-wide

procurement in the amount of $2,205,917,000.

SEC. 105. RESERVE COMPONENTS.

Funds are hereby authorized to be appropriated for fiscal year 1996 for procurement

of aircraft, vehicles, communications equipment, and other equipment for the reserve

components of the Armed Forces as follows:

(1) For the Army National Guard,

$150,000,000.

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

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

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

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

(6) For the Marine Corps Reserve,

$50,700,000.

SEC. 106. CHEMICAL DEMILITARIZATION PROGRAM.

(a) AUTHORIZATION.—There is hereby authorized to be appropriated for fiscal year

1996 the amount of $746,698,000 for—

(1) the destruction of lethal chemical

agents and munitions in accordance with

section 1412 of the Department of Defense

Authorization Act, 1986 (50 U.S.C. 1521); and

(2) the destruction of chemical warfare materiel of the United States that is not covered by section 1412 of such Act.

(b) ALLOCATION.—Of the funds specified in

subsection (a)—

(1) $393,850,000 is for operations and maintenance;

(2) $299,448,000 is for procurement; and

(3) $53,400,000 is for research and development.

Subtitle B—Army Programs

SEC. 111. PROCUREMENT OF HELICOPTERS.

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

National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101–189;

103 Stat. 1383) does not apply to the obligation of funds in amounts not to exceed

$125,000,000 for the procurement of not more

than 20 OH–58D AHIP Scout aircraft from

funds appropriated for fiscal year 1996 pursuant to section 101.

SEC. 112. REPEAL OF REQUIREMENTS FOR ARMORED VEHICLE UPGRADES.

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

Subtitle C—Navy Programs

SEC. 131. REPEAL OF PROHIBITION ON BACKFIT

OF TRIDENT SUBMARINES.

Section 124 of the National Defense Authorization Act for Fiscal Year 1995 (Public

Law 103–337; 108 Stat. 2683) is repealed.

SEC. 132. REPEAL OF LIMITATION ON TOTAL

COST FOR SSN–21 AND SSN–22

SEAWOLF SUBMARINES.

Section 122 of the National Defense Authorization Act for Fiscal Year 1995 (Public

Law 103–337; 108 Stat. 2682) is repealed.

SEC. 133. COMPETITION REQUIRED FOR SELECTION OF SHIPYARDS FOR CONSTRUCTION OF VESSELS FOR NEXT

GENERATION ATTACK SUBMARINE

PROGRAM.

(a) COMPETITION REQUIRED.—The Secretary

of the Navy shall select on a competitive

basis the shipyard for construction of each

vessel for the next generation attack submarine program.

(b) PROGRAM IDENTIFIED.—The next generation attack submarine program shall begin

with the first submarine for which the Secretary of the Navy enters into a contract for

construction after the submarine that is programmed to be constructed using funds appropriated for fiscal year 1998.

SEC. 134. SONOBUOY PROGRAMS.

Of the amount provided in section

102(a)(4)—

(1) none of such amount shall be available

for the AN/SSQ–53 (DIFAR) program; and

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

SSQ–110 (EER) program.

Subtitle D—Air Force Programs

SEC. 141. REPEAL OF LIMITATIONS.

The following provisions of law are repealed:

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

(Public Law 101–189; 103 Stat. 1373).

(2) Section 151(c) of the National Defense

Authorization Act for Fiscal Year 1993 (Public Law 102–484; 106 Stat. 2339).

(3) Sections 131(c) and 131(d) of the National Defense Authorization Act for Fiscal

Year 1994 (Public Law 103–160; 107 Stat. 1569).

(4) Section 133(e) of the National Defense

Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2688).

Subtitle E—Chemical Demilitarization

Program

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

Subsection (a) of section 173 of the National Defense Authorization Act for Fiscal

Years 1990 and 1991 (Public Law 101–189; 103

Stat. 1393) is repealed.

SEC. 152. SENSE OF CONGRESS REGARDING COST

GROWTH IN PROGRAM FOR DESTRUCTION OF THE EXISTING

STOCKPILE OF LETHAL CHEMICAL

AGENTS AND MUNITIONS.

The Congress is concerned that growth in

the estimated cost of the program to demilitarize the United States’ stockpile of lethal

chemical agents and munitions raises serious

questions regarding that program. Accordingly, it is the sense of Congress that the

Secretary of Defense should consider measures to reduce the overall cost of the chemical stockpile demilitarization program,

while minimizing total risk and ensuring the

maximum protection for the environment,

the general public, and the personnel involved in the destruction of lethal chemical

agents and munitions.

SEC. 153. ASSISTANCE FOR CHEMICAL WEAPONS

STOCKPILE COMMUNITIES AFFECTED BY BASE CLOSURE.

The Secretary of Defense shall review and

evaluate issues associated with closure and

reutilization of Department of Defense facilities co-located with continuing chemical

stockpile and chemical demilitarization operations. The review shall include analysis of

the economic impacts on these communities

and the unique reuse problems facing local

communities associated with ongoing chemical weapons programs. The review should

also include recommendations from the Secretary on methods for expeditious and costeffective transfer of these facilities to local

communities for base reuse or privatization.

The Secretary shall submit to Congress a report on the review and evaluation not later

than 90 days after the date of the enactment

of this Act.

TITLE II—RESEARCH, DEVELOPMENT,

TEST, AND EVALUATION

Subtitle A—Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated for fiscal year 1996 for the use of the

Department of Defense for research, development, test, and evaluation as follows:

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

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

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

(4) For Defense-wide activities,

$9,548,986,000, of which $239,341,000 is authorized for the activities of the Director, Test

and Evaluation.

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

(a) FISCAL YEAR 1996.—Of the amounts authorized to be appropriated by section 201,

$4,181,076,000 shall be available for basic research and exploratory development

projects.

(b) BASIC RESEARCH AND EXPLORATORY DEVELOPMENT DEFINED.—For purposes of this

section, the term ‘‘basic research and exploratory development’’ means work funded in

program elements for defense research and

development under Department of Defense

category 6.1 or 6.2.

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

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

of title 10, United States Code, is amended—

(1) in paragraph (1)—

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

Energy’’; and
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(B) by striking out ‘‘their’’ and inserting in

lieu thereof ‘‘its’’;

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

(3) by redesignating paragraph (4) as paragraph (3).

(b) COUNCIL.—Section 2902 of such title is

amended—

(1) in subsection (b)—

(A) by striking out ‘‘thirteen’’ and inserting in lieu thereof ‘‘12’’;

(B) by striking out paragraph (3);

(C) by redesignating paragraphs (4), (5), (6),

(7), (8), (9), and (10) as paragraphs (3), (4), (5),

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

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

striking out ‘‘, who shall be nonvoting members’’;

(2) in subsection (d)—

(A) by striking out paragraph (3);

(B) by redesignating paragraph (4) as paragraph (3) and in that paragraph by striking

out ‘‘Federal Coordinating Council on

Science, Engineering, and Technology’’ and

inserting in lieu thereof ‘‘National Science

and Technology Council’’; and

(C) by redesignating paragraphs (5) and (6)

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

(3) in subsection (e)—

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

(3);

(B) by redesignating paragraphs (4), (5), (6),

(7), (8), (9), and (10) as paragraphs (1), (2), (3),

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

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

striking out ‘‘such national and international environmental problems as climate

change and ozone depletion’’ and inserting in

lieu thereof ‘‘national and international environmental problems’’; and

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

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

through (3)’’;

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

and

(5) by redesignating subsection (g) as subsection (f).

(c) COMPETITIVE PROCEDURES.—Section

2903(c) of such title is amended—

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

and inserting in lieu thereof ‘‘using competitive procedures. The Executive Director may

enter into’’; and

(2) by striking out ‘‘law, except that’’ and

inserting in lieu thereof ‘‘law. In either

case,’’.

(d) SCIENTIFIC ADVISORY BOARD.—Section

2904 of such title is amended—

(1) in subsection (a)—

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

Energy’’; and

(B) by inserting after ‘‘in consultation

with’’ the following: ‘‘the Secretary of Energy and’’;

(2) in subsection (b)—

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

(B) by redesignating paragraph (4) as paragraph (3) and in that paragraph by striking

out ‘‘three’’ and inserting in lieu thereof

‘‘not less than two years and not more than

six’’;

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

and

(4) by redesignating subsection (i) as subsection (g).

Subtitle B—Program Requirements,

Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

(a) ALLOCATION OF FUNDS.—Of the amount

appropriated pursuant to the authorization

in section 201(3)—

(1) $100,000,000 shall be available for a competitive reusable rocket technology program

(PE 63401F); and

(2) $7,500,000 shall be available for evaluation of prototype hardware of low-cost expendable launch vehicles (PE 63401F).

(b) LIMITATION.—Funds made available pursuant to subsection (a)(1) may be obligated

only to the extent that the fiscal year 1996

current operating plan of the National Aeronautics and Space Administration allocates

at least an equal amount for its Reusable

Space Launch program.

SEC. 212. MANEUVER VARIANT UNMANNED AERIAL VEHICLE.

None of the amounts appropriated or otherwise made available pursuant to the authorizations in section 201 may be obligated

for the Maneuver Variant Unmanned Aerial

Vehicle.

SEC. 213. TACTICAL MANNED RECONNAISSANCE.

None of the amounts appropriated or otherwise made available pursuant to an authorization in this Act may be used by the

Secretary of the Air Force to conduct research, development, test, or evaluation for

a replacement aircraft, pod, or sensor payload for the tactical manned reconnaissance

mission.

SEC. 214. ADVANCED LITHOGRAPHY PROGRAM.

Section 216 of the National Defense Authorization Act for Fiscal Year 1995 (Public

Law 103–337; 108 Stat. 2693) is amended—

(1) in subsection (a), by striking out ‘‘to

help achieve’’ and all that follows through

the end of the subsection and inserting in

lieu thereof ‘‘to ensure that lithographic

processes being developed by Americanowned manufacturers operating in the

United States will lead to superior performance electronics systems for the Department

of Defense. For purposes of the preceding

sentence, the term ‘American-owned manufacturers’ means a manufacturing company

or other business entity the majority ownership or control of which is by United States

citizens.’’; and

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

the following new paragraph:

‘‘(3) The Director of the Defense Advanced

Research Projects Agency may set priorities

and funding levels for various technologies

being developed for the ALP and shall consider funding recommendations by the SIA

as advisory.’’.

SEC. 215. ENHANCED FIBER OPTIC GUIDED MISSILE SYSTEM.

(a) CERTIFICATION.—Not later than December 1, 1995, the Secretary of the Army shall

certify to the congressional defense committees whether there is a requirement for the

enhanced fiber optic guided missile (EFOGM) system and whether there is a cost and

effectiveness analysis supporting such requirement.

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

Army may not obligate more than

$280,000,000 (based on fiscal year 1995 constant dollars) to develop and deliver for test

and evaluation by the Army the following

items:

(A) 44 EFOG-M test missiles.

(B) 256 fully operational EFOG-M missiles.

(C) 12 fully operational fire units.

(2) The Secretary of the Army may not

spend funds for the EFOG-M system after

September 30, 1998, if the items described in

paragraph (1) have not been delivered to the

Army by that date at the cost estimated for

such system as of the date of the enactment

of this Act.

(c) GOVERNMENT-FURNISHED EQUIPMENT.—

The Secretary of the Army shall assure that

all Government-furnished equipment that

the Army agrees to provide under the contract for the EFOG-M system is provided to

the prime contractor in accordance with the

terms of the contract.

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

(a) ALLOCATION OF FUNDS.—Of the amount

appropriated pursuant to the authorizations

in section 201, $280,156,000 shall be available

for the Joint Advanced Strike Technology

(JAST) program. Of that amount—

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

63800N;

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

63800F; and

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

63800E.

(b) LIMITATION.—Not more than 75 percent

of the amount appropriated for such program

pursuant to the authorizations in section 201

may be obligated until a period of 30 days

has expired after the report specified in subsection (c) is submitted to the congressional

defense committees.

(c) REPORT.—The Secretary of Defense

shall submit to the congressional defense

committees a report, in unclassified and

classified form, not later than March 1, 1996,

that sets forth in detail the following information for the period 1997 through 2005:

(1) What the total joint requirement, under

two major regional contingency (MRC) assumptions, is for the following:

(A) Numbers of tactical combat aircraft

and the characteristics required of those aircraft in terms of capabilities, range, and observability-stealthiness.

(B) Surface- and air-launched standoff precision guided munitions.

(C) Cruise missiles.

(D) Ground-based systems, such as Extended Range-Multiple Launch Rocket System and the Army Tactical Missile System

(ATACMS), for joint warfighting capability.

(2) What the major regional contingency

warning time assumptions are, and what the

effect on future tactical fighter/attack aircraft requirements are using other warning

time assumptions.

(3) What requirements exist for the Joint

Advanced Strike Technology program that

cannot be met by existing aircraft or by

those in development.

SEC. 217. DEVELOPMENT OF LASER PROGRAM.

(a) LASER PROGRAM.—The amount authorized for appropriation by section 201 is hereby increased by $9,000,000, to be used for the

development by the Naval High Energy

Laser Office of a continuous wave, superconducting radio frequency free electron

laser program.

(b) OFFSET.—The amount authorized by

section 201 is hereby reduced by $9,000,000, of

which—

(1) $7,000,000 shall be derived from amounts

authorized for experimental evaluation of

major innovative technologies (PE 63226E);

and

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

authorized for the space test program (PE

63402F).

Subtitle C—Ballistic Missile Defense Act of

1995

SEC. 231. SHORT TITLE.

This subtitle may be cited as the ‘‘Ballistic

Missile Defense Act of 1995’’.

SEC. 232. BALLISTIC MISSILE DEFENSE POLICY

OF THE UNITED STATES.

It is the policy of the United States—

(1) to deploy at the earliest practical date

highly effective theater missile defenses

(TMDs) to protect forward-deployed and expeditionary elements of the Armed Forces of

the United States and to complement and

support the missile defense capabilities of

friendly forces and of allies of the United

States; and

(2) to deploy at the earliest practical date

a national missile defense (NMD) system

that is capable of providing a highly effective defense of the United States against

limited ballistic missile attacks.

SEC. 233. IMPLEMENTATION OF POLICY.

(a) TMD DEPLOYMENT.—To implement the

policy established in section 232(1), the Secretary of Defense shall develop and deploy at

the earliest practical date advanced theater

missile defense (TMD) systems.

(b) NMD SYSTEM ARCHITECTURE.—To implement the policy established in section
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232(2), the Secretary of Defense shall develop

for deployment at the earliest practical date

an affordable, operationally-effective National Missile Defense (NMD) system designed to protect the United States against

limited ballistic missile attacks. The system

to be developed for deployment shall include

the following:

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

single site or a greater number of interceptors at a number of sites, as determined necessary by the Secretary.

(2) Fixed, ground-based radars.

(3) Space-based sensors, including, within

the type of space-based sensors known as

ABM-adjunct sensors (such sensors not being

prohibited by the ABM Treaty), those sensor

systems (such as the Space and Missile

Tracking System) that are capable of cuing

ground-based anti-ballistic missile interceptors and of providing initial targeting vectors.

(4) Battle management, command, control,

and communications.

(c) REPORT ON PLAN FOR DEPLOYMENT.—Not

later than 90 days after the date of the enactment of this Act, the Secretary of Defense

shall submit to the congressional defense

committees a report setting forth the Secretary’s plan for—

(1) the deployment of advanced theater

missile defense (TMD) systems pursuant to

subsection (a); and

(2) the deployment of a national missile defense system which meets the requirements

specified in subsection (b).

SEC. 234. FOLLOW-ON TECHNOLOGIES RESEARCH

AND DEVELOPMENT.

(a) FOLLOW-ON NATIONAL AND THEATER MISSILE DEFENSE TECHNOLOGY.—The Secretary

shall pursue research and development of

technologies and systems related to national

missile defense and theater missile defense

in order to provide future options for—

(1) protecting the United States against

limited ballistic missile attacks; and

(2) defending forward-deployed and expeditionary elements of the Armed Forces of the

United States and complementing and supporting the missile defense capabilities of

friendly forces and allies of the United

States.

(b) EXCLUSION OF CERTAIN SYSTEMS FROM

INITIAL DEPLOYMENT.—The initial National

Missile Defense system architecture developed for deployment pursuant to section

233(b) may not include—

(1) ground-based or space-based directed

energy weapons; or

(2) space-based interceptors.

SEC. 235. POLICY ON COMPLIANCE WITH THE

ABM TREATY.

(a) POLICY CONCERNING SYSTEMS SUBJECT

TO ABM TREATY.—Congress finds that, unless and until a missile defense system, system upgrade, or system component is flight

tested in an ABM-qualifying flight test (as

defined in subsection (c)), such system, system upgrade, or system component—

(1) has not, for purposes of the ABM Treaty, been tested in an ABM mode nor been

given capabilities to counter strategic ballistic missiles; and

(2) therefore is not subject to any application, limitation, or obligation under the

ABM Treaty.

(b) PROHIBITIONS.—(1) Funds appropriated

to the Department of Defense may not be obligated or expended for the purpose of—

(A) prescribing, enforcing, or implementing any Executive order, regulation, or

policy that would apply the ABM Treaty (or

any limitation or obligation under such

Treaty) to research, development, testing, or

deployment of a theater missile defense system, a theater missile defense system upgrade, or a theater missile defense system

component; or

(B) taking any other action to provide for

the ABM Treaty (or any limitation or obligation under such Treaty) to be applied to research, development, testing, or deployment

of a theater missile defense system, a theater missile defense system upgrade, or a

theater missile defense system component.

(2) This subsection applies with respect to

each missile defense system, missile defense

system upgrade, or missile defense system

component that is capable of countering

modern theater ballistic missiles.

(3) This subsection shall cease to apply

with respect to a missile defense system,

missile defense system upgrade, or missile

defense system component when that system, system upgrade, or system component

has been flight tested in an ABM-qualifying

flight test.

(c) ABM-QUALIFYING FLIGHT TEST DEFINED.—For purposes of this section, an

ABM-qualifying flight test is a flight test

against a ballistic missile which, in that

flight test, exceeds (1) a range of 3,500 kilometers, or (2) a velocity of 5 kilometers per

second.

SEC. 236. BALLISTIC MISSILE DEFENSE PROGRAM

ACCOUNTABILITY.

(a) ANNUAL BMD PROGRAMS REPORT.—The

Secretary of Defense shall submit to the congressional defense committees an annual report describing the technical milestones,

schedule, and cost of each ballistic missile

defense program specified in subsection (c).

(b) MATTERS TO BE INCLUDED.—Each report

under subsection (a) shall list all technical

milestones, program schedule milestones,

and costs of each phase of development and

acquisition, together with total estimated

program costs, covering the entire life of

each program specified in subsection (c).

(c) COVERED PROGRAMS.—The reports under

this section shall cover the following programs:

(1) Theater High Altitude Area Defense

(THAAD).

(2) Patriot Advanced Capability-3.

(3) Navy Lower Tier.

(4) Navy Upper Tier.

(5) Corps Surface-to-Air Missile.

(6) Hawk.

(7) Boost Phase Intercept.

(8) National Missile Defense.

(9) Arrow.

(10) Medium Extended Air Defense.

(11) Any theater missile defense program

or national missile defense program which

the Department of Defense initiates after the

date of the enactment of this Act.

(d) VARIANCE REPORTING REQUIREMENTS.—

(1) In the annual report under this section,

the Secretary shall describe, with respect to

each program covered in the report, any difference in the technical milestones, program

schedule milestones, and costs for that

program—

(A) compared with the information relating to that program in the report submitted

in the previous year; and

(B) compared with the information relating to that program in the first report submitted under this section in which that program is covered.

(2) Paragraph (1)(A) shall not apply to the

first report submitted under this section.

(e) DATE OF SUBMISSION.—The report required by this section for any year shall be

submitted not later than 30 days after the

date on which the President’s budget for the

next fiscal year is submitted, except that the

first report shall be submitted not later than

90 days after the date of the enactment of

this Act.

SEC. 237. ABM TREATY DEFINED.

For purposes of this subtitle and subtitle

D, the term ‘‘ABM Treaty’’ means the Treaty Between the United States and the Union

of Soviet Socialist Republics on the Limitation of Anti-Ballistic Missile Systems, and

signed at Moscow on May 26, 1972, and includes Protocols to that Treaty, signed at

Moscow on July 3, 1974.

SEC. 238. REPEAL OF MISSILE DEFENSE ACT OF

1991.

The Missile Defense Act of 1991 is repealed.

Subtitle D—Other Ballistic Missile Defense

Provisions

SEC. 241. BALLISTIC MISSILE DEFENSE FUNDING

FOR FISCAL YEAR 1996.

Of the amounts authorized to be appropriated pursuant to section 201 for fiscal year

1996 or otherwise made available to the Department of Defense for fiscal year 1996, not

more than $3,070,199,000 may be obligated for

Ballistic Missile Defense programs.

SEC. 242. POLICY CONCERNING BALLISTIC MISSILE DEFENSE.

(a) BALLISTIC MISSILE DEFENSE AND OTHER

COUNTERPROLIFERATION EFFORTS.—The Congress views the deployment of ballistic missile defenses as a necessary, but not sufficient, element of a broader strategy to discourage both the proliferation of weapons of

mass destruction and the proliferation of

means of their delivery and to defend against

the consequences of such proliferation. The

Congress, therefore, endorses and supports

measures designed to slow or halt the proliferation of advanced technologies that pose

a threat to the safety and security of the

United States and to international stability.

(b) BALLISTIC MISSILE DEFENSE AND STRATEGIC STABILITY.—(1) The Congress views the

deployment of ballistic missile defenses as a

strategically stabilizing measure.

(2) The deployment of Theater Missile Defense systems at the earliest practical date

pursuant to section 232(a)(1) will deny potential adversaries the option of escalating a

conflict by threatening or attacking United

States forces, coalition partners of the

United States, or allies of the United States

with ballistic missiles armed with weapons

of mass destruction to offset the operational

and technical advantages of the United

States and its coalition partners and allies.

(3) The deployment of a National Missile

Defense system at the earliest practical date

pursuant to section 232(a)(2) against the

threat of limited ballistic missile attacks—

(A) will strengthen deterrence at the levels

of forces agreed to by the United States and

Russia under the Strategic Arms Reduction

Talks Treaties (START–I and START–II);

and

(B) would further strengthen deterrence if

reductions below the levels permitted under

START–II should be agreed to in the future.

(c) PRESIDENTIAL DISCUSSIONS WITH OTHER

NATIONS.—(1) The Congress—

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

is no longer necessary for the United States

to continue discussions with Russia to clarify the distinction between ABM and TMD

systems and, therefore, urges the President

to discontinue any such discussions;

(B) notes that the ABM Treaty prohibits

deployment of ground-based interceptors in a

number that would be sufficient to assure

that the entire continental United States,

Alaska, and Hawaii are defended against limited ballistic missile attacks; and

(C) notes that past discussions with Russia,

based on Russian President Yeltsin’s proposal for a Global Protection System, held

promise of an agreement to amend the ABM

Treaty to allow defense against a limited

ballistic missile attack that would have included (among other measures) permitted deployment of as many as four ground-based

interceptor sites in addition to the one site

currently permitted under the ABM Treaty

and unrestricted exploitation of groundbased and space-based sensors.

(2) In light of the findings in paragraph (1),

Congress urges the President to pursue high-
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level discussions with Russia to amend the

ABM Treaty to permit—

(A) deployment of the number of groundbased ABM sites necessary to provide effective defense of the entire territory of the

United States against limited ballistic missile attack; and

(B) the unrestricted exploitation of sensors

based within the atmosphere and in space.

(3) It is in the interest of the United States

to develop its own missile defense capabilities in a manner that will permit the United

States to complement and support the missile defense capabilities developed and deployed by its allies and possible coalition

partners. Therefore, the Congress urges the

President—

(A) to pursue high-level discussions with

allies and selected other states on the means

and methods by which the parties on a bilateral basis can cooperate in the development,

deployment, and operation of ballistic missile defenses;

(B) to take the initiative within the North

Atlantic Treaty Organization to develop consensus in the Alliance for a timely deployment of effective ballistic missile defenses

by the Alliance; and

(C) in the interim, to seek agreement with

allies and selected other states on steps the

parties should take, consistent with their

national interests, to reduce the risks posed

by the threat of limited ballistic missile attacks, such steps to include—

(i) the sharing of early warning information derived from sensors deployed by the

United States and other states;

(ii) the exchange on a reciprocal basis of

technical data and technology to support

both joint development programs and the

sale and purchase of missile defense systems

and components; and

(iii) operational level planning to exploit

current missile defense capabilities and to

help define future requirements.

SEC. 243. TESTING OF THEATER MISSILE DEFENSE INTERCEPTORS.

Subsection (a) of section 237 of the National Defense Authorization Act for Fiscal

Year 1994 (Public Law 103–160; 107 Stat. 1600)

is amended to read as follows:

‘‘(a) TESTING OF THEATER MISSILE DEFENSE

INTERCEPTORS.—(1) The Secretary of Defense

may not approve a theater missile defense

interceptor program proceeding beyond the

low-rate initial production acquisition stage

until the Secretary certifies to the congressional defense committees that such program has successfully completed initial

operational test and evaluation.

‘‘(2) In order to be certified under paragraph (1) as having been successfully completed, the initial operational test and evaluation conducted with respect to an interceptors program must have included flight

tests—

‘‘(A) that were conducted with multiple

interceptors and multiple targets in the

presence of realistic countermeasures; and

‘‘(B) the results of which demonstrate the

achievement by the interceptors of the baseline performance thresholds.

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

baseline performance thresholds with respect

to a program are the weapons systems performance thresholds specified in the baseline

description for the system established (pursuant to section 2435(a)(1) of title 10, United

States Code) before the program entered the

engineering and manufacturing development

stage.

‘‘(4) The number of flight tests described in

paragraph (2) that are required in order to

make the certification under paragraph (1)

shall be a number determined by the Secretary of Defense to be sufficient for the purposes of this section.

‘‘(5) The Secretary may augment live-fire

testing to demonstrate weapons system performance goals for purposes of the certification under paragraph (1) through the use

of modeling and simulation that is validated

by ground and flight testing.’’.

SEC. 244. REPEAL OF MISSILE DEFENSE PROVISIONS.

The following provisions of law are repealed:

(1) Section 222 of the Department of Defense Authorization Act, 1986 (Public Law 99–

145; 99 Stat. 613; 10 U.S.C. 2431 note).

(2) Section 225 of the Department of Defense Authorization Act, 1986 (Public Law 99–

145; 99 Stat. 614).

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

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

2431 note).

(4) Section 8123 of the Department of Defense Appropriations Act, 1989 (Public Law

100–463; 102 Stat. 2270–40).

(5) Section 8133 of the Department of Defense Appropriations Act, 1992 (Public Law

102–172; 105 Stat. 1211).

(6) Section 234 of the National Defense Authorization Act for Fiscal Year 1994 (Public

Law 103–160; 107 Stat. 1595; 10 U.S.C. 2431

note).

Subtitle E—Other Matters

SEC. 251. ALLOCATION OF FUNDS FOR MEDICAL

COUNTERMEASURES AGAINST BIOWARFARE THREATS.

Section 2370a of title 10, United States

Code, is amended—

(1) in subsection (a), by striking out ‘‘Department of Defense—’’ and all that follows

through ‘‘not more than 20 percent’’ and inserting in lieu thereof ‘‘Department of Defense, not more than 50 percent’’; and

(2) in subsection (b), by striking out paragraph (2) and redesignating paragraphs (3),

(4), and (5) as paragraphs (2), (3), and (4), respectively.

SEC. 252. ANALYSIS OF CONSOLIDATION OF

BASIC RESEARCH ACCOUNTS OF

MILITARY DEPARTMENTS.

(a) ANALYSIS REQUIRED.—The Secretary of

Defense shall conduct an analysis of the cost

and effectiveness of consolidating the basic

research accounts of the military departments. The analysis shall determine potential infrastructure savings and other benefits

of co-locating and consolidating the management of basic research.

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

the Secretary shall submit to the Committee

on Armed Services of the Senate and the

Committee on National Security of the

House of Representatives a report on the

analysis conducted under subsection (a).

SEC. 253. CHANGE IN REPORTING PERIOD FROM

CALENDAR YEAR TO FISCAL YEAR

FOR ANNUAL REPORT ON CERTAIN

CONTRACTS TO COLLEGES AND UNIVERSITIES.

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

Code, is amended—

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

(2) by striking out ‘‘after the year’’ and inserting in lieu thereof ‘‘after the fiscal

year’’.

SEC. 254. MODIFICATION TO UNIVERSITY RESEARCH INITIATIVE SUPPORT PROGRAM.

Section 802 of the National Defense Authorization Act for Fiscal Year 1994 (Public

Law 103–160; 107 Stat. 1701) is amended—

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

out ‘‘shall’’ both places it appears and inserting in lieu thereof ‘‘may’’; and

(2) in subsection (e), by striking out the

sentence beginning with ‘‘Such selection

process’’.

SEC. 255. ADVANCED FIELD ARTILLERY SYSTEM

(CRUSADER).

(a) AUTHORITY TO USE FUNDS FOR ALTERNATIVE PROPELLANT TECHNOLOGIES.—During

fiscal year 1996, the Secretary of the Army

may use funds appropriated for the liquid

propellant portion of the Advanced Field Artillery System (Crusader) program for fiscal

year 1996 for alternative propellant technologies and integration of those technologies into the design of the Crusader system if—

(1) the Secretary determines that the technical risk associated with liquid propellant

will increase costs and delay the initial operational capability of the Crusader system;

and

(2) the Secretary notifies the congressional

defense committees of the proposed use of

the funds and the reasons for the proposed

use of the funds.

(b) LIMITATION.—The Secretary of the

Army may not spend funds for the liquid propellant portion of the Crusader system after

August 1, 1996, unless significant progress

has been made toward meeting the objectives set forth in subsection (c) and the

statement described in subsection (d) has

been submitted to the congressional defense

committees.

(c) OBJECTIVES.—The objectives referred to

in subsection (b) are the following:

(1) Breech and ignition design criteria for

rate of fire for the cannon of the Crusader

system have been met.

(2) The final ignition concept has been designed and successfully bench tested for the

next prototype of the cannon of the Crusader

system.

(3) Designs to prevent chamber piston reversals have been tested in a fixed weapons

test stand.

(4) The chemistry and physics of propellant

burn resulting from the firing of liquid propellant into any target zone are fully understood, and predictable firings have been demonstrated.

(5) An analysis of the management of heat

dissipation has been made for the full range

of performance requirements for the cannon,

and concept designs supported by that analysis are completed and proposed for engineering.

(6) Engineering designs to control pressure

oscillations in the chamber during firing are

proven and planned for integration into the

next prototype of the cannon.

(7) Fill designs for the cannon chamber

that focus on preventing future chamber explosions have been electronically simulated

and bench tested.

(8) An assessment of the sensitivity of liquid propellant to contamination by various

materials to which it may be exposed

throughout the handling and operation of

the cannon is completed.

(d) STATEMENT.—The statement referred to

in subsection (b) is a statement submitted to

the congressional defense committees not

later than March 30, 1996, that contains the

following:

(1) An assertion that all the hazards associated with liquid propellent have been identified and are controllable to acceptable levels.

(2) An assessment of the technology for

each component of the Crusader system (the

cannon, vehicle, and crew module). The technology assessment shall include, for each

performance goal of the Crusader system (including total system weight), information

about the maturity of the technology to

achieve that goal, the maturity of the design

of the technology, and the manner in which

the design has been proven (for example,

through simulation, bench testing, or weapon firing).

(3) An assessment of the cost of continued

development of the Crusader system after

August 1, 1996, the cost of each unit of the

Crusader system in the year the Crusader

system will be completed, and the cost of

each unit of the Future Armored Resupply
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Vehicle (FARV) in the year that vehicle will

be completed.

SEC. 256. REVIEW OF C4I BY NATIONAL RESEARCH COUNCIL.

(a) REVIEW BY NATIONAL RESEARCH COUNCIL.—Not later than 90 days after the date of

the enactment of this Act, the Secretary of

Defense shall enter into a contract with the

National Research Council of the National

Academy of Sciences to conduct a comprehensive review of current and planned

service and defense-wide programs for command, control, communications, computers,

and intelligence (C4I) with a special focus on

cross-service and inter-service issues.

(b) MATTERS TO BE ASSESSED IN REVIEW.—

The review shall address the following:

(1) The match between the capabilities provided by current service and defense-wide C4I

programs and the actual needs of users of

these programs.

(2) The interoperability of service and defense-wide C4I systems that are planned to be

operational in the future.

(3) The need for an overall defense-wide architecture for C4I.

(4) Proposed strategies for ensuring that

future C4I acquisitions are compatible and

interoperable with an overall architecture.

(5) Technological and administrative aspects of the C4I modernization effort to determine the soundness of the underlying plan

and the extent to which it is consistent with

concepts for joint military operations in the

future.

(c) TWO-YEAR PERIOD FOR CONDUCTING REVIEW.—The National Research Council shall

conduct the review over the two-year period

beginning upon completion of the performance of the contract described in subsection

(a).

(d) REPORTS.—(1) The National Research

Council shall submit to the Department of

Defense and Congress interim reports and

progress updates on a regular basis as the review proceeds. A final report on the review

shall set forth the findings, conclusions, and

recommendations of the Council for defensewide and service C4I programs and shall be

submitted to the Committee on Armed Services of the Senate, the Committee on National Security of the House of Representatives, and the Secretary of Defense.

(2) To the maximum degree possible, the

final report shall be submitted in unclassified form with classified annexes as necessary.

(e) INTERAGENCY COOPERATION WITH

STUDY.—All military departments, defense

agencies, and other components of the Department of Defense shall cooperate fully

with the National Research Council in its activities in carrying out the review under this

section.

(f) EXPEDITED PROCESSING OF SECURITY

CLEARANCES FOR STUDY.—For the purpose of

facilitating the commencement of the study

under this section, the Secretary of Defense

shall expedite to the fullest degree possible

the processing of security clearances that

are necessary for the National Research

Council to conduct the study.

(g) FUNDING.—Of the amount authorized to

be appropriated in section 201 for defensewide activities, $900,000 shall be available for

the study under this section.

SEC. 257. FIVE-YEAR PLAN FOR FEDERALLY

FUNDED RESEARCH AND DEVELOPMENT CENTERS (FFRDCS).

(a) FIVE-YEAR PLAN.—The Secretary of Defense, in consultation with the Secretaries of

the military departments, shall develop a

five-year plan to reduce and consolidate the

activities performed by federally funded research and development centers (FFRDCs)

and establish a framework for the future

workload of such centers.

(b) OBJECTIVES.—The plan shall set forth

the manner in which the Secretary of Defense could achieve by October 1, 2000, the

following:

(1) Implementation by federally funded research and development centers of only

those core activities, as defined by the Secretary, that require the unique capabilities

and arrangements afforded by such centers.

(2) Consolidation of such core level activities into as few federally funded research and

development centers as is practical and possible.

(3) Acquisition of systems engineering and

systems integration activities currently performed by federally funded research and development centers through the use of competitive procedures.

(4) Transfer of the management of the

Software Engineering Institute activities to

the Defense Information Systems Agency for

purposes of supporting command, control,

communications, computing, and intelligence (C4I) programs.

(5) Transfer of the management of the core

activities of Lincoln Laboratory to the Office of the Secretary of Defense.

(6) Acquisition of services provided to the

Department of Defense by university-affiliated research centers (that operate like federally funded research and development centers) through the use of competitive procedures.

(c) OTHER MATTERS.—The plan also shall

include the following:

(1) An assessment of the number of staff

needed in each federally funded research and

development center during each year over

the five years covered by the plan.

(2) A specific timetable for phasing in the

objectives set forth in subsection (b).

(d) REPORT.—Not later than February 1,

1996, the Secretary of Defense shall submit

to the congressional defense committees a

report on the plan.

(e) UNDISTRIBUTED REDUCTION.—The total

amount authorized to be appropriated for research, development, test, and evaluation in

section 201 for federally funded research and

development centers and university-affiliated research centers is hereby reduced by

$90,097,000.

SEC. 258. MANUFACTURING TECHNOLOGY PROGRAM.

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

United States Code, is amended as follows:

(1) The heading is amended by striking out

the second and third words.

(2) Subsection (a) is amended by striking

out ‘‘Science and’’.

(3) Subsection (d) is amended—

(A) in paragraph (2)—

(i) by striking out ‘‘or’’ at the end of subparagraph (A);

(ii) by striking out the period at the end of

subparagraph (B) and inserting in lieu thereof ‘‘; or’’; and

(iii) by adding at the end the following new

subparagraph:

‘‘(C) will be carried out by an institution of

higher education.’’; and

(B) by adding at the end the following new

paragraph:

‘‘(3) At least 25 percent of the funds available for the program each fiscal year shall be

used for awarding grants and entering into

contracts, cooperative agreements, and other

transactions on a cost-share basis under

which the ratio of recipient costs to Government costs is two to one.’’.

(b) CLERICAL AMENDMENT.—The item relating to section 2525 in the table of sections at

the beginning of chapter 148 of title 10,

United States Code, is amended to read as

follows:

‘‘2525. Manufacturing technology program.’’.

SEC. 259. FIVE-YEAR PLAN FOR CONSOLIDATION

OF DEFENSE LABORATORIES AND

TEST AND EVALUATION CENTERS.

(a) FIVE-YEAR PLAN.—The Secretary of Defense shall develop a five-year plan to consolidate and restructure the laboratories and

test and evaluation centers of the Department of Defense.

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

specific actions needed to consolidate the

laboratories and test and evaluation centers

into as few laboratories and centers as is

practical and possible, in the judgment of

the Secretary, by October 1, 2005.

(c) MATTERS TO BE CONSIDERED.—In developing the plan, the Secretary shall consider

the following:

(1) Consolidation of common support functions, including the following:

(A) Aircraft (fixed wing and rotary).

(B) Weapons.

(C) Space systems.

(D) Command, control, communications,

computers, and intelligence.

(2) The extent to which any military construction is planned at the laboratories and

centers.

(3) The encroachment on the laboratories

and centers by residential and industrial expansion.

(4) The cost of operations and maintenance

at the laboratories and centers.

(5) The cost of environmental remediation

at the laboratories and centers.

(d) REPORT.—Not later than May 1, 1996,

the Secretary of Defense shall submit to the

congressional defense committees a report

on the plan.

(e) LIMITATION.—Of the amounts appropriated or otherwise made available pursuant to an authorization in section 201 for the

central test and evaluation investment development program, not more than 40 percent may be obligated before the report required by subsection (d) is submitted to Congress.

SEC. 260. AERONAUTICAL RESEARCH AND TEST

CAPABILITIES ASSESSMENT.

(a) POLICY.—(1) It is in the Nation’s longterm national security interests to maintain

preeminence in the area of aeronautical research and test capabilities.

(2) Continued advances in aeronautical

science and engineering are critical to sustaining the strategic and tactical air superiority of the United States and coalition

forces, as well as United States economic security and international aerospace leadership.

(3) Encouragement of active Department of

Defense partnership with other Government

agencies, academic institutions, and private

industry to develop, maintain, and enhance

aeronautical research and test capabilities is

in the national security and economic interest of the Department and the United States.

(b) REVIEW.—(1) In pursuit of the aeronautical research and test capabilities policy

set forth in subsection (a), the Secretary of

Defense shall conduct a comprehensive review of the aeronautical research and test facilities and capabilities of the United States

in order to assess the current condition of

such facilities and capabilities.

(2) The review shall identify options for

providing affordable, operable, reliable, and

responsive long-term aeronautical research

and test capabilities for military and civilian purposes and for the organization and

conduct of such capabilities within the Department or through shared operations with

other Government agencies, academic institutions, and private industry. The review

also shall set forth in detail the projected

costs of such options, including costs of acquisition and technical and financial arrangements (including the use of Government facilities for reimbursable private use).

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

the Secretary of Defense shall submit to the
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congressional defense committees a report

setting forth in detail the findings of the review required by subsection (b). The report

shall include recommendations on the most

efficient and economic means of developing,

maintaining, and continually modernizing

aeronautical research and test capabilities

to meet current, planned, and prospective

military and civilian needs.

SEC. 261. LIMITATION ON T–38 AVIONICS UPGRADE PROGRAM.

(a) REQUIREMENT.—The Secretary of Defense shall ensure that, in evaluating proposals submitted in response to a solicitation issued for a contract for the T–38 Avionics Upgrade Program, the proposal of an

entity may not be considered unless—

(1) in the case of an entity that conducts

substantially all of its business in a foreign

country, the foreign country provides equal

access to similar contract solicitations in

that country to United States entities; and

(2) in the case of an entity that conducts

business in the United States but that is

owned or controlled by a foreign government

or by an entity incorporated in a foreign

country, the foreign government or foreign

country of incorporation provides equal access to similar contract solicitations in that

country to United States entities.

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

‘‘United States entity’’ means an entity that

is owned or controlled by persons a majority

of whom are United States citizens.

SEC. 262. CROSS REFERENCE TO CONGRESSIONAL DEFENSE POLICY CONCERNING NATIONAL TECHNOLOGY

AND INDUSTRIAL BASE, REINVESTMENT, AND CONVERSION IN OPERATION OF DEFENSE RESEARCH AND

DEVELOPMENT PROGRAMS.

(a) SECTION 2358 PROJECTS.—Section

2358(a)(2)(B) of title 10, United States Code, is

amended by inserting before the period the

following: ‘‘and advance the defense policies

and objectives specified in section 2501 of

this title’’.

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

of such title is amended by inserting before

the period in the first sentence the following:

‘‘for the purpose of advancing the defense

policies and objectives specified in section

2501 of this title’’.

SEC. 263. DEMILITARIZATION OF CONVENTIONAL

MUNITIONS, ROCKETS, AND EXPLOSIVES.

Of the amount appropriated pursuant to

the authorization in section 201 for the joint

Department of Defense-Department of Energy munitions technology development program (PE 63225D), $15,000,000 shall be available for cooperative development and demonstration of processes that comply with applicable environmental laws for the demilitarization and disposal of unserviceable, obsolete, or nontreaty compliant munitions,

rocket motors, and explosives. In carrying

out such development and demonstration,

the Secretary of Defense and the Secretary

of Energy should consider a number of potential technologies, including super-critical

water oxidation, molten metal pyrolisis,

plasma arc, catalytic fluidized-bed oxidation,

molten salt oxidation, incineration, critical

fluid extraction and ingredient recovery, and

underground contained burning.

SEC. 264. FIBER OPTIC ACOUSTIC SENSOR SYSTEM.

(a) FIBER OPTIC ACOUSTIC SENSOR SYSTEM.—Of the amount appropriated pursuant

to the authorization in section 201, $28,181,000

shall be available for fiscal year 1996 for the

advanced submarine combat systems development program (PE 63504N). Of that

amount, $6,900,000 shall be available for research and development of a fiber optic

acoustic sensor system, including the development of common optical towed arrays.

(b) OFFSET.—The amount authorized in

section 201 for the advanced submarine systems development program (PE 63561N) is

hereby reduced by $6,900,000.

SEC. 265. JOINT TARGETING SUPPORT SYSTEM

TESTBED.

(a) JOINT TARGETING SUPPORT SYSTEM

TESTBED.—The amount authorized in section

201(2) for theater mission planning (project

A1784) is hereby increased by $10,000,000, to

be used to establish a joint targeting support

system testbed (in PE 0204229N).

(b) OFFSET.—The amount authorized in

section 201(2) for the Tomahawk (project

A0545) is hereby reduced by $10,000,000.

TITLE III—OPERATION AND

MAINTENANCE

Subtitle A—Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

Funds are hereby authorized to be appropriated for fiscal year 1996 for the use of the

Armed Forces and other activities and agencies of the Department of Defense for expenses, not otherwise provided for, for operation and maintenance in amounts as follows:

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

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

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

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

(5) For Defense-wide activities,

$10,680,371,000.

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

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

(8) For the Marine Corps Reserve,

$91,783,000.

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

(10) For the Army National Guard,

$2,394,108,000.

(11) For the Air National Guard,

$2,734,221,000.

(12) For the Defense Inspector General,

$177,226,000.

(13) For the United States Court of Appeals

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

(14) For Environmental Restoration, Defense, $1,422,200,000.

(15) For Drug Interdiction and Counterdrug Activities, Defense-wide, $680,432,000.

(16) For Medical Programs, Defense,

$9,876,525,000.

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

(18) For Cooperative Threat Reduction programs, $200,000,000.

(19) For Overseas Humanitarian, Disaster,

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

SEC. 302. WORKING CAPITAL FUNDS.

Funds are hereby authorized to be appropriated for fiscal year 1996 for the use of the

Armed Forces and other activities and agencies of the Department of Defense for providing capital for working capital and revolving funds in amounts as follows:

(1) For the Defense Business Operations

Fund, $878,700,000.

(2) For the National Defense Sealift Fund,

$1,574,220,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

There is hereby authorized to be appropriated for fiscal year 1996 from the Armed

Forces Retirement Home Trust Fund the

sum of $59,120,000 for the operation of the

Armed Forces Retirement Home, including

the United States Soldiers’ and Airmen’s

Home and the Naval Home.

SEC. 304. OFFICE OF ECONOMIC ADJUSTMENT.

Of the amount authorized in section 301(5)

for Defense-wide activities, $60,578,000 is for

the Office of Economic Adjustment of the

Department of Defense.

Subtitle B—Defense Business Operations

Fund

SEC. 311. CODIFICATION OF DEFENSE BUSINESS

OPERATIONS FUND.

(a) MANAGEMENT OF WORKING-CAPITAL

FUNDS.—(1) Chapter 131 of title 10, United

States Code, is amended by inserting after

section 2215 the following new section:

‘‘§ 2216. Defense Business Operations Fund

‘‘(a) MANAGEMENT OF WORKING-CAPITAL

FUNDS AND CERTAIN ACTIVITIES.—The Secretary of Defense may manage the performance of the working-capital funds and industrial, commercial, and support type activities described in subsection (b) through the

fund known as the Defense Business Operations Fund, which is established on the

books of the Treasury. Except for the funds

and activities specified in subsection (b), no

other functions, activities, funds, or accounts of the Department of Defense may be

managed through the Fund.

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

funds and activities referred to in subsection

(a) are the following:

‘‘(1) Working-capital funds established

under section 2208 of this title and in existence on December 5, 1991.

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

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

‘‘(3) The Defense Finance and Accounting

Service.

‘‘(4) The Defense Industrial Plant Equipment Center.

‘‘(5) The Defense Commissary Agency.

‘‘(6) The Defense Technical Information

Service.

‘‘(7) The Defense Reutilization and Marketing Service.

‘‘(c) SEPARATE ACCOUNTING, REPORTING,

AND AUDITING OF FUNDS AND ACTIVITIES.—(1)

The Secretary of Defense shall provide in accordance with this subsection for separate

accounting, reporting, and auditing of funds

and activities managed through the Fund.

‘‘(2) The Secretary shall maintain the separate identity of each fund and activity managed through the Fund that (before the establishment of the Fund) was managed as a

separate fund or activity.

‘‘(3) The Secretary shall maintain separate

records for each function for which payment

is made through the Fund and which (before

the establishment of the Fund) was paid directly through appropriations, including the

separate identity of the appropriation account used to pay for the performance of the

function.

‘‘(d) CHARGES FOR GOODS AND SERVICES

PROVIDED THROUGH THE FUND.—(1) Charges

for goods and services provided through the

Fund shall include the following amounts:

‘‘(A) Amounts necessary to recover the full

costs of—

‘‘(i) the development, implementation, operation, and maintenance of systems supporting the wholesale supply and maintenance activities of the Department of Defense; and

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

forces in the provision of the goods and services, computed by calculating, to the maximum extent practicable, such costs as if

employees of the Department of Defense

were used in the provision of the goods and

services.

‘‘(B) Amounts for depreciation of capital

assets, set in accordance with generally accepted accounting principles.

‘‘(C) Amounts necessary to recover the full

cost of the operation of the Defense Finance

Accounting Service.

‘‘(2) Charges for goods and services provided through the Fund may not include the

following amounts:

‘‘(A) Amounts necessary to recover the

costs of a military construction project (as

defined in section 2801(b) of this title), other

than a minor construction project financed

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

this title.

‘‘(B) Amounts necessary to cover costs incurred in connection with the closure or realignment of a military installation.
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1995 T80.11

‘‘(e) CAPITAL ASSET SUBACCOUNT.—(1)

Amounts charged for depreciation of capital

assets pursuant to subsection (d)(1)(B) shall

be credited to a separate capital asset subaccount established within the Fund.

‘‘(2) The Secretary of Defense may award

contracts for capital assets of the Fund in

advance of the availability of funds in the

subaccount.

‘‘(f) PROCEDURES FOR ACCUMULATION OF

FUNDS.—The Secretary of Defense shall establish billing procedures to ensure that the

balance in the Fund does not exceed the

amount necessary to provide for the working

capital requirements of the Fund, as determined by the Secretary.

‘‘(g) PURCHASE FROM OTHER SOURCES.—The

Secretary of Defense or the Secretary of a

military department may purchase goods

and services that are available for purchase

from the Fund from a source other than the

Fund if the Secretary determines that such

source offers a more competitive rate for the

goods and services than the Fund offers.

‘‘(h) ANNUAL REPORTS AND BUDGET.—The

Secretary of Defense shall annually submit

to Congress, at the same time that the President submits the budget under section 1105 of

title 31, the following:

‘‘(1) A detailed report that contains a

statement of all receipts and disbursements

of the Fund (including such a statement for

each subaccount of the Fund) for the year for

which the report is submitted.

‘‘(2) A detailed proposed budget for the operation of the Fund for the fiscal year for

which the budget is submitted.

‘‘(3) A comparison of the amounts actually

expended for the operation of the Fund for

the previous fiscal year with the amount

proposed for the operation of the Fund for

that fiscal year in the President’s budget.

‘‘(4) A report on the capital asset subaccount of the Fund that contains the following information:

‘‘(A) The opening balance of the subaccount as of the beginning of the fiscal year

in which the report is submitted.

‘‘(B) The estimated amounts to be credited

to the subaccount in the fiscal year in which

the report is submitted.

‘‘(C) The estimated amounts of outlays to

be paid out of the subaccount in the fiscal

year in which the report is submitted.

‘‘(D) The estimated balance of the subaccount at the end of the fiscal year in which

the report is submitted.

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

which the report is submitted will be needed

to pay outlays in the immediately following

fiscal year that are in excess of the amount

to be credited to the subaccount in the immediately following fiscal year.

‘‘(i) DEFINITIONS.—In this section:

‘‘(1) The term ‘capital assets’ means the

following capital assets that have a development or acquisition cost of not less than

$15,000:

‘‘(A) Minor construction projects financed

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

this title.

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

capital improvements.

‘‘(2) The term ‘Fund’ means the Defense

Business Operations Fund.’’.

(2) The table of sections at the beginning of

such chapter is amended by inserting after

the item relating to section 2215 the following new item:

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

(b) CONFORMING REPEALS.—The following

provisions of law are hereby repealed:

(1) Subsections (b), (c), (d), and (e) of section 311 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law

103–337; 10 U.S.C. 2208 note).

(2) Subsections (a) and (b) of section 333 of

the National Defense Authorization Act for

Fiscal Year 1994 (Public Law 103–160; 10

U.S.C. 2208 note).

(3) Section 342 of the National Defense Authorization Act for Fiscal Year 1993 (Public

Law 102–484; 10 U.S.C. 2208 note).

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

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

(5) Section 8121 of the Department of Defense Appropriations Act, 1992 (Public Law

102–172; 10 U.S.C. 2208 note).

SEC. 312. RETENTION OF CENTRALIZED MANAGEMENT OF DEFENSE BUSINESS OPERATIONS FUND AND PROHIBITION ON

FURTHER EXPANSION OF FUND.

(a) CENTRALIZED MANAGEMENT.—Subsection (a) of section 2216 of title 10, United

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

amended—

(1) by inserting ‘‘(1)’’ before ‘‘The Secretary of Defense’’; and

(2) by adding at the end the following new

paragraph:

‘‘(2) Management of the Fund, including

management of cash balances in the Fund,

shall be exercised in the Office of the Secretary of Defense under the immediate authority of the Under Secretary of Defense

(Comptroller). The Fund shall be treated as a

single account for purposes of subchapter III

of chapter 13 and subchapter II of chapter 15

of title 31.’’.

(b) EXPANSION OF FUND.—Such subsection

is further amended by adding at the end of

paragraph (1) the following new sentence:

‘‘The Secretary may not convert to management through the Fund any function, activity, fund, or account of the Department of

Defense that is not managed through the

Fund as of the date of the enactment of the

National Defense Authorization Act for Fiscal Year 1996.’’.

SEC. 313. CHARGES FOR GOODS AND SERVICES

PROVIDED THROUGH DEFENSE

BUSINESS OPERATIONS FUND AND

TERMINATION OF ADVANCE BILLING

PRACTICES.

(a) CHARGES INCLUDED.—Paragraph

(1)(A)(ii) of subsection (d) of section 2216 of

title 10, United States Code, as added by section 311(a), is amended by striking out ‘‘as if

employees of the Department of Defense

were used in the provision of the goods and

services’’ and inserting in lieu thereof ‘‘using

the pay and allowances of the members’’.

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

such subsection is amended by adding at the

end the following new subparagraph:

‘‘(C) Amounts necessary to recover the

costs of functions designated by the Secretary of Defense as mission critical, such as

ammunition handling safety, and amounts

for ancillary tasks not directly related to

the mission of the function or activity managed through the Fund.’’.

(c) TERMINATION OF ADVANCE BILLING PRACTICES.—Such subsection is further amended

by adding at the end the following new paragraph:

‘‘(3) After September 30, 1996, functions and

activities managed through the Fund may

not use advance billing in the provision of

goods and services to customers.’’.

SEC. 314. ANNUAL PROPOSED BUDGET FOR OPERATION OF DEFENSE BUSINESS OPERATIONS FUND.

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

United States Code, as added by section

311(a), is amended by adding at the end the

following new sentence: ‘‘The proposed budget shall include the amount necessary to

cover the operating losses, if any, of the

Fund for the previous fiscal year.’’.

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

FUND.

(a) REDUCTION.—The Secretary of Defense

shall direct the heads of Defense-wide activities and the Secretaries of the military departments to reduce requests during fiscal

year 1996 for purchasing transportation from

the transportation accounts of the Defense

Business Operations Fund by $70,000,000

below the level of such requests during fiscal

year 1995. The rates charged for transportation funded through the Defense Business

Operations Fund shall be reduced to reflect

the effect of the reduced requests on overhead costs.

(b) REPORT REQUIRED.—Not later than

March 1, 1996, the Secretary of Defense shall

submit to Congress a report regarding—

(1) the effect on the Defense transportation

organization of implementing certain consolidation proposals, such as the elimination

of duplication in the component command

structure; and

(2) the extent that transportation overhead, the cost of which is passed on to customers, can be significantly reduced without

adversely affecting mobilization requirements.

Subtitle C—Environmental Provisions

SEC. 321. CLARIFICATION OF SERVICES AND

PROPERTY THAT MAY BE EXCHANGED TO BENEFIT THE HISTORICAL COLLECTION OF THE ARMED

FORCES.

Section 2572(b) of title 10, United States

Code, is amended in paragraph (1) by striking

out ‘‘not needed by the armed forces’’ and all

that follows through the end of the paragraph and inserting in lieu thereof the following: ‘‘not needed by the armed forces for

any of the following items or services if they

directly benefit the historical collection of

the armed forces:

‘‘(A) Similar items held by any individual,

organization, institution, agency, or nation.

‘‘(B) Conservation supplies, equipment, facilities, or systems.

‘‘(C) Search, salvage, or transportation

services.

‘‘(D) Restoration, conservation, or preservation services.

‘‘(E) Educational programs.’’.

SEC. 322. ADDITION OF AMOUNTS CREDITABLE

TO DEFENSE ENVIRONMENTAL RESTORATION ACCOUNT.

Section 2703(e) of title 10, United States

Code is amended to read as follows:

‘‘(e) AMOUNTS RECOVERED.—The following

amounts shall be credited to the transfer account:

‘‘(1) Amounts recovered under section 107

of CERCLA for response actions of the Secretary.

‘‘(2) Any other amounts recovered by the

Secretary or the Secretary of the military

department concerned from a contractor, insurer, surety, or other person to reimburse

the Department of Defense for any expenditure for environmental response activities.’’.

SEC. 323. REPEAL OF CERTAIN ENVIRONMENTAL

EDUCATION PROGRAMS.

Sections 1333 and 1334 of the National Defense Authorization Act for Fiscal Year 1994

(Public Law 103–160; 10 U.S.C. 2701 note) are

repealed.

SEC. 324. REPEAL OF LIMITATION ON OBLIGATION OF AMOUNTS TRANSFERRED

FROM ENVIRONMENTAL RESTORATION TRANSFER ACCOUNT.

(a) REPEAL OF LIMITATION.—Section 2703 of

title 10, United States Code, is further

amended—

(1) by striking out subsection (c); and

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

subsection (f) as subsections (c), (d), and (e),

respectively.
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(b) EFFECT ON CONTRACTS.—Nothing in the

amendment made by subsection (a) shall be

considered to negate or invalidate any legal

protection or legal defense available to the

Department of Defense under ‘‘force

majeure’’ clauses in environmental restoration contracts or agreements existing on the

date of the enactment of this Act.

SEC. 325. ELIMINATION OF AUTHORITY TO

TRANSFER AMOUNTS FOR TOXICOLOGICAL PROFILES.

Section 2704 of title 10, United States Code,

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

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

amounts appropriated to the Department of

Defense,’’; and

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

for transferring funds and personnel and for

coordination of activities under this section’’.

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

It is the sense of Congress that the Secretary of Defense should make every effort

to limit, by the end of fiscal year 1997, spending for administration, support, studies, and

investigations associated with the Defense

Environmental Restoration Account to 20

percent of the total funding for that account.

Subtitle D—Civilian Employees and Nonappropriated Fund Instrumentality Employees

SEC. 331. MANAGEMENT OF DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL.

Section 129 of title 10, United States Code,

is amended—

(1) in subsection (a)—

(A) by inserting ‘‘(including any limitation

on full-time equivalent positions)’’ before

the period at the end of the second sentence;

and

(B) by adding at the end the following new

sentence: ‘‘The Secretary shall not be required to make a reduction in the number of

full-time equivalent positions in the Department of Defense unless such reduction is necessary due to a reduction in funds available

to the Department or is required under a law

that is enacted after the date of the enactment of the National Defense Authorization

Act for Fiscal Year 1996 and that refers specifically to this subsection.’’; and

(2) by adding at the end the following new

subsection:

‘‘(d) With respect to each budget activity

within an appropriation for any fiscal year

for operations and maintenance, the Secretary of Defense shall ensure that there are

employed during that fiscal year employees

in the number, and of the type and with the

skill mix, that are necessary to carry out the

functions within that budget activity for

which funds are provided for that fiscal

year.’’.

SEC. 332. MANAGEMENT OF DEPOT EMPLOYEES.

(a) DEPOT EMPLOYEES.—Chapter 146 of title

10, United States Code, is amended by adding

at the end the following new section:

‘‘§ 2472. Management of depot employees

‘‘(a) PROHIBITION ON MANAGEMENT BY END

STRENGTH.—The civilian employees of the

Department of Defense involved in the

depot-level maintenance and repair of materiel may not be managed on the basis of any

end-strength constraint or limitation on the

number of such employees who may be employed on the last day of a fiscal year. Such

employees shall be managed solely on the

basis of the available workload and the funds

made available for such depot-level maintenance and repair.

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

days after the beginning of each fiscal year,

the Secretary of Defense shall submit to the

Committee on Armed Services of the Senate

and the Committee on National Security of

the House of Representatives a report on the

number of employees employed and expected

to be employed by the Department of Defense during that fiscal year to perform

depot-level maintenance and repair of materiel. The report shall indicate whether that

number is sufficient to perform the depotlevel maintenance and repair functions for

which funds have been appropriated for that

fiscal year for performance by Department of

Defense employees.’’.

(b) CLERICAL AMENDMENT.—The table of

sections at the beginning of chapter 146 of

such title is amended by adding at the end

the following new item:

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

SEC. 333. CONVERSION TO PERFORMANCE BY CIVILIAN EMPLOYEES OF ACTIVEDUTY POSITIONS.

(a) CONVERSION TO CIVILIAN PERFORMANCE.—During fiscal year 1996, the Secretary

of Defense shall change to performance by

employees of the Department of Defense the

performance of not less than 10,000 positions

in the Department of Defense that, as of September 30, 1995, were designated to be performed by members of the Armed Forces on

active duty.

(b) IMPLEMENTATION PLAN.—Not later than

March 31, 1996, the Secretary of Defense shall

submit to the Committee on Armed Services

of the Senate and the Committee on National Security of the House of Representatives a plan for the implementation of subsection (a).

SEC. 334. PERSONNEL ACTIONS INVOLVING EMPLOYEES OF NONAPPROPRIATED

FUND INSTRUMENTALITIES.

(a) CLARIFICATION OF DEFINITION OF NONAPPROPRIATED FUND INSTRUMENTALITY EMPLOYEE.—Subsection (a)(1) of section 1587 of

title 10, United States Code, is amended by

adding at the end the following new sentence: ‘‘Such term includes a civilian employee of a support organization within the

Department of Defense or a military department, such as the Defense Finance and Accounting Service, who is paid from nonappropriated funds on account of the nature

of the employee’s duties.’’.

(b) DIRECT REPORTING OF VIOLATIONS.—

Subsection (e) of such section is amended in

the second sentence by inserting before the

period the following: ‘‘and to permit the direct reporting of alleged violations of subsection (b) to the Inspector General of the

Department of Defense’’.

(c) TECHNICAL AMENDMENT.—Subsection

(a)(1) of such section is further amended by

striking out ‘‘Navy Resale and Services Support Office’’ and inserting in lieu thereof

‘‘Navy Exchange Service Command’’.

(d) CLERICAL AMENDMENTS.—(1) The heading of such section is amended to read as follows:

‘‘§ 1587. Employees of nonappropriated fund

instrumentalities: personnel actions’’.

(2) The item relating to section 1587 in the

table of sections at the beginning of chapter

81 of such title is amended to read as follows:

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

SEC. 335. LIMITATION ON PROVISION OF OVERSEAS LIVING QUARTERS ALLOWANCES FOR NONAPPROPRIATED

FUND INSTRUMENTALITY EMPLOYEES.

(a) CONFORMING ALLOWANCE TO ALLOWANCES FOR OTHER CIVILIAN EMPLOYEES.—Subject to subsection (b), any overseas living

quarters allowance paid from nonappropriated funds and provided to a nonappropriated fund instrumentality employee

after the date of the enactment of this Act

may not exceed the amount of a quarters allowance provided under subchapter III of

chapter 59 of title 5 to a similarly situated

civilian employee of the Department of Defense paid from appropriated funds.

(b) APPLICATION TO CERTAIN CURRENT EMPLOYEES.—In the case of a nonappropriated

fund instrumentality employee who, as of

the date of the enactment of this Act, receives an overseas living quarters allowance

under any other authority, subsection (a)

shall apply to such employee only after the

earlier of—

(1) September 30, 1998; or

(2) the date on which the employee otherwise ceases to be eligible for such an allowance under such other authority.

(c) NONAPPROPRIATED FUND INSTRUMENTALITY EMPLOYEE DEFINED.—For purposes of

this section, the term ‘‘nonappropriated fund

instrumentality employee’’ has the meaning

given such term in section 1587(a)(1) of title

10, United States Code.

SEC. 336. OVERTIME EXEMPTION FOR NONAPPROPRIATED FUND EMPLOYEES.

Section 6121(2) of title 5, United States

Code, is amended to read as follows:

‘‘(2) ‘employee’ has the meaning given it by

section 2105(a) and also includes those paid

from nonappropriated funds of the Army and

Air Force Exchange Service, Navy Ship’s

Stores Ashore, Navy exchanges, Marine

Corps exchanges, Coast Guard exchanges,

and other instrumentalities of the United

States under the jurisdiction of the armed

forces conducted for the comfort, pleasure,

contentment, and mental and physical improvement of personnel of the armed

forces;’’.

SEC. 337. CONTINUED HEALTH INSURANCE COVERAGE.

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

Code, is amended—

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

a voluntary separation from a surplus position,’’ after ‘‘an involuntary separation from

a position’’; and

(2) by adding at the end the following new

subparagraph:

‘‘(C) For the purpose of this paragraph,

‘surplus position’ means a position which is

identified in pre-reduction in force planning

as no longer required, and which is expected

to be eliminated under formal reduction-inforce procedures.’’.

SEC. 338. CREDITABILITY OF CERTAIN NAFI

SERVICE UNDER THE FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.

(a) IN GENERAL.—Subject to subsections (b)

and (c), upon application to the Office of Personnel Management, any individual who, on

the date of making such application, is an

employee within the Department of Defense

or the legislative branch of the Government

shall be allowed credit under chapter 84 of

title 5, United States Code (for purposes of

benefits payable out of the Fund) for any

service if—

(1) such service was performed by such individual as an employee of a nonappropriated fund instrumentality of the Department of Defense or the Coast Guard, described in section 2105(c) of such title; and

(2) such individual has served continuously, since moving (after December 31, 1986,

and without a break in service of more than

3 days) from a nonappropriated fund instrumentality referred to in paragraph (1), in—

(A) the Department of Defense; or

(B) the legislative branch of the Government.

(b) CONDITIONS.—An individual may not be

allowed credit for service under this section

unless—

(1) an application is filed before the deadline under subsection (c);

(2) such individual has been subject to

chapter 84 of title 5, United States Code,

since moving in the manner described in subsection (a)(2); and
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(3) such individual deposits to the credit of

the Fund an amount equal to 1.3 percent of

the basic pay paid to such individual for such

service, with interest (computed in accordance with paragraphs (2) and (3) of section

8334(e) of title 5, United States Code).

(c) DEADLINE.—An application under this

section may not be filed after—

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

on the date of the enactment of this Act; or

(2) if earlier, the date on which a written

determination is made by the Office of Personnel Management that the actuarial

present value of all benefits payable as a result of the enactment of this section has

reached $50,000,000.

(d) REGULATIONS.—The Office of Personnel

Management shall prescribe any regulations

necessary to carry out this section.

(e) DEFINITION.—For purposes of this section, the term ‘‘Fund’’ means the Civil Service Retirement and Disability Fund under

section 8348 of title 5, United States Code.

Subtitle E—Commissaries and

Nonappropriated Fund Instrumentalities

SEC. 341. OPERATION OF COMMISSARY STORE

SYSTEM.

(a) COOPERATION WITH OTHER ENTITIES.—

Section 2482 of title 10, United States Code,

is amended—

(1) in the section heading, by striking out

‘‘private’’;

(2) by inserting ‘‘(a) PRIVATE OPERATION.—

’’ before ‘‘Private persons’’; and

(3) by adding at the end the following new

subsection:

‘‘(b) CONTRACTS WITH OTHER AGENCIES AND

INSTRUMENTALITIES.—(1) The Defense Commissary Agency, and other agencies of the

Department of Defense that support the operation of the commissary store system, may

enter into contracts or other agreements

with other appropriated fund or nonappropriated fund instrumentalities of the

Department of Defense or other departments

or agencies of the United States to facilitate

efficiency in the management and operation

of the commissary store system.

‘‘(2) A commissary store operated by a nonappropriated fund instrumentality shall be

operated in accordance with section 2484 of

this title. Subject to such section, the Secretary of Defense may authorize a transfer of

goods, supplies, and facilities of, and funds

appropriated for, the Defense Commissary

Agency to a nonappropriated fund instrumentality operating a commissary store.’’.

(b) AUTHORIZATION FOR DISTRIBUTORS TO

SERVE AS VENDOR AGENTS.—Such section is

further amended by adding after subsection

(b), as added by subsection (a), the following

new subsection:

‘‘(c) PAYMENTS TO VENDOR AGENTS.—If a

distributor for a vendor of resale products

under contract to the Defense Commissary

Agency is designated as an agent by and for

the vendor, the distributor may invoice the

agency and accept payments from the agency under the vendor’s contract. A distributor

designated as a agent for purposes of this

subsection may request payment for more

than one product of the vendor on the same

invoice. All payments made by the agency to

a distributor designated by a vendor as the

vendor’s agent shall be considered payments

under the vendor’s contract, and the payments shall fulfill the payment obligations

of the United States in the same manner as

if the payments had been made directly to

the vendor.’’.

(c) CLERICAL AMENDMENT.—The item relating to such section in the table of sections at

the beginning of chapter 147 of such title is

amended to read as follows:

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

SEC. 342. PRICING POLICIES FOR COMMISSARY

STORE MERCHANDISE.

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

Code, is amended—

(1) by striking out ‘‘each item’’ and inserting in lieu thereof ‘‘items’’; and

(2) by striking out ‘‘actual product cost of

the item’’ and inserting in lieu thereof

‘‘total average product cost of merchandise

sold’’.

SEC. 343. LIMITED RELEASE OF COMMISSARY

STORES SALES INFORMATION TO

MANUFACTURERS, DISTRIBUTORS,

AND OTHER VENDORS DOING BUSINESS WITH DEFENSE COMMISSARY

AGENCY.

Section 2487(b) of title 10, United States

Code, is amended in the second sentence by

inserting before the period the following:

‘‘unless the agreement is between the Defense Commissary Agency and a manufacturer, distributor, or other vendor doing

business with the Agency and is restricted to

information directly related to merchandise

provided by that manufacturer, distributor,

or vendor’’.

SEC. 344. ECONOMICAL DISTRIBUTION OF DISTILLED SPIRITS BY NONAPPROPRIATED FUND INSTRUMENTALITIES.

(a) ECONOMICAL DISTRIBUTION.—Subsection

(a)(1) of section 2488 of title 10, United States

Code, is amended by inserting after ‘‘most

competitive source’’ the following: ‘‘and distributed in the most economical manner’’.

(b) DETERMINATION OF MOST ECONOMICAL

DISTRIBUTION METHOD.—Such section is further amended—

(1) by redesignating subsection (c) as subsection (d); and

(2) by inserting after subsection (b) the following new subsection:

‘‘(c)(1) In the case of covered alcoholic beverage purchases of distilled spirits, to determine whether a nonappropriated fund instrumentality of the Department of Defense represents the most economical method of distribution to package stores, the Secretary of

Defense shall consider all components of the

distribution costs incurred by the nonappropriated fund instrumentality, such as

overhead costs (including management, logistics, administration, depreciation, and

utilities), the costs of carrying inventory,

and handling and distribution costs.

‘‘(2) If the use of a private distributor

would subject covered alcoholic beverage

purchases of distilled spirits to direct or indirect State taxation, a nonappropriated

fund instrumentality shall be considered to

be the most economical method of distribution regardless the results of the determination under paragraph (1).

‘‘(3) The Secretary shall use the agencies

performing audit functions on behalf of the

armed forces and the Inspector General of

the Department of Defense to make determinations under this subsection.’’.

SEC. 345. TRANSPORTATION BY COMMISSARIES

AND EXCHANGES TO OVERSEAS LOCATIONS.

(a) IN GENERAL.—Chapter 157 of title 10,

United States Code, is amended by adding at

the end the following new section:

‘‘§ 2643. Commissary and exchange services:

transportation overseas

‘‘The Secretary of Defense shall give the

officials responsible for operation of commissaries and military exchanges the authority to negotiate directly with private

carriers for the most cost-effective transportation of commissary and exchange supplies

by sea without relying on the Military Sealift Command or the Military Traffic Management Command. Section 2631 of this title,

regarding the preference for vessels of the

United States or belonging to the United

States in the transportation of supplies by

sea, shall apply to the negotiation of transportation contracts under the authority of

this section.’’.

(b) CLERICAL AMENDMENT.—The table of

sections at the beginning of such chapter is

amended by adding at the end the following

new item:

‘‘2643. Commissary and exchange services:

transportation overseas.’’.

SEC. 346. DEMONSTRATION PROGRAM FOR UNIFORM FUNDING OF MORALE, WELFARE, AND RECREATION ACTIVITIES

AT CERTAIN MILITARY INSTALLATIONS.

(a) DEMONSTRATION PROGRAM REQUIRED.—

The Secretary of Defense shall conduct a

demonstration program at six military installations, under which funds appropriated

for the support of morale, welfare, and recreation programs at the installations are combined with nonappropriated funds available

for such programs and treated as nonappropriated funds. Under this demonstration program, the combined appropriated

funds shall be expended pursuant to the laws

and regulations that apply to nonappropriated funds.

(b) COVERED MILITARY INSTALLATIONS.—

The Secretary of Defense shall select two

military installations from each military department to participate in the demonstration program.

(c) EFFECT ON CIVILIAN EMPLOYEES.—Civilian employees of the Department of Defense

who are normally paid using the appropriated funds that are combined under subsection (a) shall be considered to be nonappropriated fund instrumentality employees unless they continue to be paid using

other appropriated funds. Any converted employee shall automatically revert to the employee’s former status at the end of the program or upon any action by management to

terminate the employee, whichever occurs

first. Any converted employee shall retain

retirement and medical benefits under the

employee’s former status.

(d) PERIOD OF DEMONSTRATION PROGRAM.—

The demonstration program shall terminate

at the end of the first full fiscal year beginning on or after the date of the enactment of

this Act.

(e) REPORT.—Not later than 90 days after

the end of the demonstration program, the

Secretary of Defense shall submit to Congress a report describing the results of the

demonstration program.

SEC. 347. CONTINUED OPERATION OF BASE EXCHANGE MART AT FORT WORTH

NAVAL AIR STATION AND AUTHORITY TO EXPAND BASE EXCHANGE

MART PROGRAM.

(a) CONTINUED OPERATION OF BASE EXCHANGE MART.—Section 375 of the National

Defense Authorization Act for Fiscal Year

1995 (Public Law 103–337; 108 Stat. 2736) is

amended by striking out ‘‘, until December

31, 1995,’’.

(b) EXPANSION OF BASE EXCHANGE MART

PROGRAM.—(1) Subject to paragraph (2), the

Secretary of Defense may provide for the operation by a nonappropriated fund instrumentality of not more than ten combined exchange and commissary stores, in which groceries are sold at five percent above cost and

other items are sold at the typical military

exchange markup.

(2) The Secretary may select a military installation as the location for a combined exchange and commissary store only if—

(A) the installation has been or is selected

for closure or realignment; or

(B) the continued operation of a separate

military exchange and commissary store at

the installation is not economically feasible.

(3) If a nonappropriated fund instrumentality incurs a loss in operating a commissary store as a result of the pricing requirements specified in paragraph (1), the
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Secretary may authorize a transfer of funds

appropriated for the Defense Commissary

Agency to the nonappropriated fund instrumentality to offset the loss. However, the

total amount of appropriated funds transferred during a fiscal year to support the operation of a commissary store may not exceed an amount equal to 25 percent of the appropriated funds provided during the last full

year of operation of the commissary store by

the Defense Commissary Agency.

(4) The combined military exchange and

commissary stores authorized under this

subsection shall include the combined military exchange and commissary store operated at the Naval Air Station Fort Worth,

Joint Reserve Center, Carswell Field, Texas.

(5) For purposes of this section, the term

‘‘nonappropriated fund instrumentality’’

means the Army and Air Force Exchange

Service, Navy Exchange Service Command,

Marine Corps exchanges, or any other instrumentality of the United States under the jurisdiction of the Armed Forces which is conducted for the comfort, pleasure, contentment, or physical or mental improvement of

members of the Armed Forces.

SEC. 348. UNIFORM DEFERRED PAYMENTS PROGRAM FOR MILITARY EXCHANGES.

(a) USE OF COMMERCIAL BANKING INSTITUTIONS.—As soon as possible after the date of

the enactment of this Act, the Secretary of

Defense shall endeavor to enter into an

agreement with a commercial banking institution under which the commercial banking

institution will fund and operate the deferred payment programs of the Army and

Air Force Exchange Service and Navy Exchange Service Command. To ease the transition to commercial operation, the Secretary may initially limit the agreement to

one of the two military exchange services.

(b) UNIFORM EXCHANGE CREDIT PROGRAM.—

Not later than January 1, 1997, the Secretary

shall establish a uniform deferred payment

program for use in all military exchanges to

replace the separate deferred payment programs currently operated by the Army and

Air Force Exchange Service and Navy Exchange Service Command.

(c) REPORT.—Not later than December 31,

1995, the Secretary of Defense shall submit

to Congress a report describing the implementation of this section.

SEC. 349. AVAILABILITY OF FUNDS TO OFFSET

EXPENSES INCURRED BY ARMY AND

AIR FORCE EXCHANGE SERVICE ON

ACCOUNT OF TROOP REDUCTIONS

IN EUROPE.

Of funds authorized to be appropriated

under section 301(5), not more than $70,000,000

shall be available to the Secretary of Defense for transfer to the Army and Air Force

Exchange Service to offset expenses incurred

by the Army and Air Force Exchange Service

on account of reductions in the number of

members of the United States Armed Forces

assigned to permanent duty ashore in Europe.

SEC. 350. STUDY REGARDING IMPROVING EFFICIENCIES IN OPERATION OF MILITARY EXCHANGES AND OTHER MORALE, WELFARE, AND RECREATION

ACTIVITIES AND COMMISSARY

STORES.

(a) STUDY REQUIRED.—The Secretary of Defense shall conduct a study regarding the

manner in which greater efficiencies can be

achieved in the operation of—

(1) military exchanges;

(2) other instrumentalities of the United

States under the jurisdiction of the Armed

Forces which are conducted for the comfort,

pleasure, contentment, or physical or mental

improvement of members of the Armed

Forces; and

(3) commissary stores.

(b) REPORT OF STUDY.—Not later than

March 1, 1996, the Secretary of Defense shall

submit to Congress a report describing the

results of the study and containing such recommendations as the Secretary considers appropriate to implement efficiency-building

options identified in the study.

SEC. 351. EXTENSION OF DEADLINE FOR CONVERSION OF NAVY SHIPS’ STORES TO OPERATION AS NONAPPROPRIATED

FUND INSTRUMENTALITIES.

(a) EXTENSION.—Section 371(a) of the National Defense Authorization Act for Fiscal

Year 1994 (Public Law 103–160; 10 U.S.C. 7604

note) is amended by striking out ‘‘December

31, 1995’’ and inserting in lieu thereof ‘‘December 31, 1996’’.

(b) INSPECTOR GENERAL REVIEW.—Not later

than April 1, 1996, the Inspector General of

the Department of Defense shall submit to

Congress a report—

(1) evaluating the costs and benefits of converting the operation of all Navy ships’

stores to operation by the Navy Exchange

Service Command, as required by section

371(a) of the National Defense Authorization

Act for Fiscal Year 1994 (Public Law 103–160;

10 U.S.C. 7604 note); and

(2) reviewing the Navy Audit Agency report regarding such conversion prepared pursuant to section 374 of the National Defense

Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2736).

Subtitle F—Contracting Out

SEC. 357. PROCUREMENT OF ELECTRICITY FROM

MOST ECONOMICAL SOURCE.

(a) PROCUREMENT OF ELECTRICITY.—(1)

Chapter 147 of title 10, United States Code, is

amended by inserting after section 2483 the

following new section:

‘‘§ 2483a. Procurement of electricity from

most economical source

‘‘The Secretary of Defense shall procure

electricity for use on military installations

and by other activities and functions of the

Department of Defense from the most economical source, as determined by the Secretary. The Secretary shall make the determination required by this section in the

manner provided in section 2462 of this

title.’’.

(2) The table of sections at the beginning of

such chapter is amended by inserting after

the item relating to section 2483 the following new item:

‘‘2483a. Procurement of electricity from most

economical source.’’.

(b) EFFECTIVE DATE; RULE OF CONSTRUCTION.—The amendment made by subsection

(a) shall take effect on March 1, 1996, except

that the amendment shall not be construed

to require the termination of any contract

for the purchase of electricity for the Department of Defense entered into before that

date.

SEC. 358. PROCUREMENT OF CERTAIN COMMODITIES FROM MOST ECONOMICAL

SOURCE.

(a) PROCUREMENT OF SUPPLIES.—In the case

of supplies for the Department of Defense

procured through the General Services Administration as of the date of the enactment

of this Act, the Secretary of Defense shall

procure such supplies from another source if

the Secretary determines that the source

can provide the supplies at a lower cost. The

Secretary shall make the determinations required by this section in the manner provided in section 2462 of title 10, United States

Code.

(b) EFFECTIVE DATE; RULE OF CONSTRUCTION.—The amendment made by subsection

(a) shall take effect on March 1, 1996, except

that the amendment shall not be construed

to require the termination of any contract

between the Secretary of Defense and the

General Services Administration entered

into before that date.

SEC. 359. COMMERCIAL PROCUREMENT OF

PRINTING AND DUPLICATION SERVICES.

Consistent with the requirements of title

44, United States Code, during fiscal year

1996, the Defense Printing Service shall competitively procure a minimum of 70 percent

of its printing and duplication services.

SEC. 360. DIRECT DELIVERY OF ASSORTED

CONSUMABLE INVENTORY ITEMS OF

DEPARTMENT OF DEFENSE.

To reduce the expense and necessity of

maintaining extensive warehouses for

consumable inventory items of the Department of Defense, the Secretary of Defense

shall arrange for direct vendor delivery of

food, clothing, medical and pharmaceutical

supplies, automotive, electrical, fuel, and

construction supplies, and other consumable

inventory items for military installations

throughout the United States. The Secretary

shall complete implementation of this direct

vendor delivery system not later than September 30, 1996.

SEC. 361. PRIVATE OPERATION OF FUNCTIONS

OF DEFENSE REUTILIZATION AND

MARKETING SERVICE.

(a) SOLICITATION OF PROPOSALS.—(1) Not

later than March 15, 1996, the Secretary of

Defense shall solicit for the selected performance by commercial entities of those

functions of the Defense Reutilization and

Marketing Service, a unit of the Defense Logistics Agency, for which the Secretary determines that privatization would result in

cost savings for the United States and the

generation of additional revenues for the

United States.

(b) REPORT ON RETENTION OF FUNCTIONS.—

Not later than January 15, 1996, the Secretary shall submit a report to the Congress

describing those functions of the Defense Reutilization and Marketing Service that the

Secretary believes should be currently retained for exclusive performance by civilian

employees of the Department of Defense or

military personnel and the reasons why such

functions should be so retained.

SEC. 362. PRIVATE OPERATION OF PAYROLL

FUNCTIONS OF DEPARTMENT OF DEFENSE FOR PAYMENT OF CIVILIAN

EMPLOYEES.

(a) PLAN ON CONTRACTING OUT.—Not later

than March 1, 1996, the Secretary of Defense

shall submit to Congress a plan regarding

private operation of payroll functions for civilian employees of the Department of Defense.

(b) IMPLEMENTATION.—Not later than October 1, 1996, the Secretary shall implement

the plan developed under subsection (a).

SEC. 363. DEMONSTRATION PROGRAM TO IDENTIFY UNDERDEDUCTIONS AND

OVERPAYMENTS MADE TO VENDORS.

(a) DEMONSTRATION PROGRAM REQUIRED.—

The Secretary of Defense shall conduct a

demonstration program at the Defense Personnel Support Center, Philadelphia, Pennsylvania, to evaluate the feasibility of using

private contractors to audit accounting and

procurement records of the Department of

Defense to identify moneys due the United

States because of underdeductions and overpayments made to vendors. Pursuant to an

agreement between the Secretary and one or

more private contractors selected by the

Secretary, the contractors shall perform an

audit of accounting and procurement records

of the Department for at least fiscal years

1993, 1994, and 1995 using commercial sector

data processing techniques, which would

compare purchase documents and agreements with vendor invoices to discover discrepancies in allowances, pricing, discounts,

billback allowances, backhaul allowances,

and freight routing instructions. The audit

shall also attempt to identify duplicate payments and unauthorized invoice charges.
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(b) BONUS PAYMENT.—From amounts made

available to conduct the demonstration program, the Secretary may pay the contractors a negotiated amount not to exceed 25

percent of all amounts recovered as a result

of the audit.

(c) AVAILABILITY OF FUNDS.—From

amounts authorized to be appropriated pursuant to section 301(5), not more than

$5,000,000 shall be available to cover the costs

of the demonstration program, including the

cost of any bonus payment under subsection

(b).

SEC. 364. PILOT PROGRAM TO EVALUATE POTENTIAL FOR PRIVATE OPERATION OF

OVERSEAS DEPENDENTS’ SCHOOLS.

(a) PILOT PROGRAM.—The Secretary of Defense may conduct a pilot program to assess

the feasibility of using private contractors

to operate schools of the defense dependents’

education system established under section

1402(a) of the Defense Dependents’ Education

Act of 1978 (20 U.S.C. 921(a)).

(b) SELECTION OF SCHOOL FOR PROGRAM.—If

the Secretary of Defense conducts the pilot

program, the Secretary shall select one

school of the defense dependents’ education

system for participation in the program.

Under the pilot program, the Secretary shall

provide for the operation of the school by an

appropriate private contractor for not less

than one complete school year.

(c) REPORT.—Not later than 30 days after

the end of the first school year in which the

pilot program is conducted, the Secretary of

Defense shall submit to Congress a report on

the results of the program. The report shall

include the recommendation of the Secretary with respect to the extent to which

other schools of the defense dependents’ education system should be operated by private

contractors.

SEC. 365. PILOT PROGRAM FOR EVALUATION OF

IMPROVED DEFENSE TRAVEL PROCESSING PROTOTYPES.

(a) PILOT PROGRAM REQUIRED; LOCATION.—

(1) The Secretary of Defense, acting through

the Under Secretary of Defense (Comptroller), shall conduct a pilot program regarding two prototype tests of commercial

travel applications to determine the best approach for the Department of Defense Travel

System.

(2) The Secretary shall conduct the pilot

program at six military installations containing approximately equal numbers of

members of the Armed Forces. Two installations shall be selected from each military department.

(b) DESCRIPTION OF PROTOTYPE TESTS.—The

two respective tests shall be as follows:

(1) In this test, three installations (one for

each military department), with the Department of Defense acting as its own integrator,

will implement the travel processes proposed

by the task force on travel management

chartered by the Secretary of Defense in

July 1994, and will offer specific business opportunities in the services areas currently

utilized, namely reservations and credit card

technologies.

(2) In this test, three installations (one for

each military department), will contract out

their entire travel process, reserving only essential elements, such as travel authorization, for performance by employees of the

Department of Defense. Particular attention

will be focused on the ability of the vendor

to integrate all processes into a responsive,

reasonably priced, uniform travel system.

(c) CONDUCT OF TESTS.—The two prototype

tests shall be conducted as follows:

(1) Each test must accommodate the guidelines for travel management issued by the

Under Secretary of Defense (Comptroller).

(2) The tests must take no more than 60

days to set up and be operational for one

year.

(d) EVALUATION CRITERIA.—The Secretary

of Defense shall establish evaluation criteria

that include, at a minimum—

(1) aligning travel policy and cost estimates with mission at the point of reservation;

(2) using fully integrated solutions envisioned by the Department of Defense travel

reengineering report of January 1995;

(3) matching credit card data and reservation data with cost estimate data;

(4) matching data with a trip pro forma

plan to eliminate the need for further approvals; and

(5) a responsive and flexible management

information system for managers at all levels to monitor travel expenses throughout

the year, budget accurately for any future

year, and assess cost and value relationship

regarding temporary duty travel for each

mission.

(e) PLAN FOR PROGRAM.—Before conducting

the pilot program, the Secretary of Defense

shall develop a plan for the program that addresses the following:

(1) The purposes of the prototype test, including the objective of reducing the total

costs of managing travel by at least one-half.

(2) The methodology, duration, and anticipated costs, including an arrangement

whereby the contractor would receive its

agreed upon contract payment plus an additional negotiated amount not to exceed 50

percent of the dollar savings achieved in excess of the objective specified in paragraph

(1).

(3) A specific citation to any provision or

law, rule, or regulation that, if not waived,

would prohibit the conduct of the program or

any part of the program.

(4) The evaluation mechanism required by

subsection (d).

(5) A provision for implementing the most

successful prototype Department-wide, based

upon final assessment of results.

SEC. 366. PILOT PROGRAM FOR PRIVATE OPERATION OF CONSOLIDATED INFORMATION TECHNOLOGY FUNCTIONS OF

DEPARTMENT OF DEFENSE.

(a) PILOT PROGRAM REQUIRED.—(1) The Secretary of Defense shall enter into discussions

with private sector entities for the purpose

of issuing a request for proposal to establish

a pilot program to test and evaluate the cost

savings and efficiencies of private operation

of all information technology services for

the Department of Defense currently being

consolidated in Defense MegaCenters. The

negotiations shall be conducted so that the

request for proposal may be issued within 60

days after the date of the enactment of this

Act.

(2) The minimum workload to be contracted out in the pilot program shall be

equivalent to the workload of at least three

Defense MegaCenters.

(b) ESTABLISHMENT AND DURATION.—The

Secretary of Defense shall implement private operations under the pilot program

within one year after the date of the enactment of this Act. The pilot program shall operate for not more than a three-year period

after implementation.

(c) GOAL OF PROGRAM.—The goal of the

pilot program is to receive proposals from

private sector entities that, if implemented,

would reduce operating costs to the Department of Defense for information technology

functions by at least 35 percent in comparison to annual operating cost as of the date of

the enactment of this Act.

(d) PLAN OF PROGRAM.—Before conducting

the pilot program, the Secretary of Defense

shall develop a plan for the program that addresses the following:

(1) The purposes of the program.

(2) The methodology, duration, and anticipated costs of the program, including the

cost of an arrangement whereby the private

contractor would receive the agreed upon

contract payment plus an additional negotiated amount not to exceed 50 percent of the

dollar savings achieved in excess of the goal

specified in subsection (c).

(3) A specific citation to any provisions of

law, rule, or regulation that, if not waived,

would prohibit the conduct of the program or

any part of the program.

(4) An evaluation mechanism for the program.

(5) A provision for expanding the program

to all information technology functions of

the Department of Defense, based upon final

assessment of the results of the program.

(e) SUSPENSION OF FURTHER CONSOLIDATION.—Until the completion of the pilot program and submission of the final report required under subsection (f)(2), none of the

funds appropriated to the Department of Defense for a fiscal year after fiscal year 1995

may be used to reduce the number of data

centers of the Department of Defense to

fewer than the 16 Defense MegaCenters identified as of the date of the enactment of this

Act.

(f) REPORTING REQUIREMENTS.—(1) Not

later than six months after commencing contracting out activities under the pilot program, the Secretary of Defense shall submit

to Congress an initial assessment report regarding the implementation of the pilot program.

(2) The Secretary shall submit to Congress

a final assessment report, including a recommendation for expanding the program as

appropriate, not later than one year after

commencing contracting out activities

under the pilot program.

SEC. 367. INCREASED RELIANCE ON THE PRIVATE SECTOR.

(a) GENERAL RULE.—The Secretary of Defense shall endeavor to carry out through an

entity in the private sector any activity to

provide a commercial product or service for

the Department of Defense if—

(1) the product or service can be provided

through a source in the private sector; and

(2) an adequate competitive environment

exists to provide for economical accomplishment of the function by the private sector.

(b) APPLICABILITY.—(1) Subsection (a) shall

not be construed to apply to any commercial

product or service with respect to which the

Secretary of Defense determines that—

(A) production, manufacture, or provision

of that product or service by the Government is necessary for reasons of national security; or

(B) the product or service is so inherently

governmental in nature that it is in the public interest to require production or performance, respectively, by the Department of Defense.

(2) A determination under paragraph (1)

shall be made in accordance with regulations

prescribed under subsection (c).

(c) REGULATIONS.—The Secretary of Defense shall prescribe regulations for the purposes of this section. Such regulations shall

be prescribed in consultation with the Director of the Office of Management and Budget.

(d) REPORT.—(1) The Secretary of Defense

shall identify all activities of the Department of Defense that are carried out to provide commercial products or services for the

Department of Defense and that are carried

out by personnel of the Department of Defense (other than activities specified by the

Secretary pursuant to subsection (b)).

(2) The Secretary shall transmit to Congress, not later than April 15, 1996, a report

on matters relating to increased use of the

private sector for the performance of commercial functions for the Department of Defense. The report shall include a list of all

activities identified under paragraph (1) and

indicate, for each activity, whether the Sec-
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retary proposes to convert the performance

of such activity to performance by the private sector and, if not, the reasons why.

(3) The report shall include—

(A) a description of the advantages and disadvantages of using contractor personnel,

rather than employees of the Department of

Defense, to perform functions of the Department that are not essential to the

warfighting mission of the Armed Forces;

(B) specification of all legislative and regulatory impediments to contracting those

functions for private performance; and

(C) the views of the Secretary of Defense

on the desirability of terminating the applicability of OMB Circular A–76 to the Department of Defense.

(4) The Secretary shall carry out paragraph (1) in consultation with the Director of

the Office of Management and Budget and

the Comptroller General of the United

States. In carrying out that paragraph, the

Secretary shall consult with, and seek the

views of, representatives of the private sector, including organizations representing

small businesses.

SEC. 368. PILOT PROGRAM FOR PRIVATE OPERATION OF PAYROLL AND ACCOUNTING FUNCTIONS OF NONAPPROPRIATED FUND INSTRUMENTALITIES.

(a) PILOT PROGRAM REQUIRED; LOCATION.—

(1) The Secretary of Defense, acting through

the Under Secretary of Defense (Comptroller), shall enter into discussions with private sector entities for the purpose of issuing

a request for proposal to establish a pilot

program to test and evaluate the cost savings and efficiencies of private operation of

accounting and payroll function of nonappropriated fund instrumentalities of the

Department of Defense. The negotiations

shall be conducted so that the request for

proposal may be issued within 60 days after

the date of the enactment of this Act.

(2) The pilot program shall consist of a

major Department of Defense Nonappropriated Fund Accounting and Payroll

function.

(b) GOAL OF PROGRAM.—The goal of the

pilot program is to receive proposals from

private sector entities that, if implemented,

would reduce by at least 25 percent the total

costs to the Government for each pay event.

(c) PLAN OF PROGRAM.—Before conducting

the pilot program, the Secretary of Defense

shall develop a plan for the program that addresses the following:

(1) The purposes of the program.

(2) The methodology, duration, and anticipated costs of the program, including the

cost of an arrangement whereby the private

contractor would receive the agreed upon

contract payment plus an additional negotiated amount not to exceed 50 percent of the

dollar savings achieved in excess of the goal

specified in subsection (b).

(3) A specific citation to any provisions of

law, rule, or regulation that, if not waived,

would prohibit the conduct of the program or

any part of the program.

(4) An evaluation mechanism for the program.

(5) A provision for expanding the program

to all accounting and payroll functions of

nonappropriated fund instrumentalities of

the Department of Defense, based upon final

assessment of the results of the program.

Subtitle G—Miscellaneous Reviews, Studies,

and Reports

SEC. 371. QUARTERLY READINESS REPORTS.

(a) IN GENERAL.—(1) Chapter 22 of title 10,

United States Code, is amended by adding at

the end the following new section:

‘‘§ 452. Quarterly readiness reports

‘‘(a) REQUIREMENT.—Not later than 30 days

after the end of each calendar-year quarter,

the Secretary of Defense shall submit to the

Committee on Armed Services of the Senate

and the Committee on National Security of

the House of Representatives a report on

military readiness. The report for any quarter shall be based on assessments that are

provided during that quarter—

‘‘(1) to any council, committee, or other

body of the Department of Defense (A) that

has responsibility for readiness oversight,

and (B) the membership of which includes at

least one civilian officer in the Office of the

Secretary of Defense at the level of Assistant

Secretary of Defense or higher;

‘‘(2) by senior civilian and military officers

of the military departments and the commanders of the unified and specified commands; and

‘‘(3) as part of any regularly established

process of periodic readiness reviews for the

Department of Defense as a whole.

‘‘(b) MATTERS TO BE INCLUDED.—Each such

report—

‘‘(1) shall specifically describe identified

readiness problems or deficiencies and

planned remedial actions; and

‘‘(2) shall include the key indicators and

other relevant data related to the identified

problem area or deficiency.

‘‘(c) CLASSIFICATION OF REPORTS.—Reports

under this section shall be submitted in unclassified form and may, as the Secretary determines necessary, also be submitted in

classified form.’’.

(2) The table of sections at the beginning of

such chapter is amended by adding at the

end the following new item:

‘‘452. Quarterly readiness reports.’’.

(b) EFFECTIVE DATE.—Section 452 of title

10, United States Code, as added by subsection (a), shall take effect with the calendar-year quarter during which this Act is

enacted.

SEC. 372. REPORTS REQUIRED REGARDING EXPENDITURES FOR EMERGENCY AND

EXTRAORDINARY EXPENSES.

Subsection (c) of section 127 of title 10,

United States Code, is amended to read as

follows:

‘‘(c)(1) In any fiscal year in which funds are

expended under the authority of this section,

the Secretary of Defense shall submit a report of such expenditures on a quarterly

basis to the committees specified in paragraph (3).

‘‘(2) An obligation or expenditure in an

amount of $1,000,000 or more may not be

made under the authority of this section for

any single transaction until the Secretary of

Defense has notified the committees specified in paragraph (3).

‘‘(3) The committees referred to in paragraphs (1) and (2) are—

‘‘(A) the Committee on Armed Services and

the Committee on Appropriations of the Senate; and

‘‘(B) the Committee on National Security

and the Committee on Appropriations of the

House of Representatives.’’.

SEC. 373. RESTATEMENT OF REQUIREMENT FOR

SEMIANNUAL REPORTS TO CONGRESS ON TRANSFERS FROM HIGHPRIORITY READINESS APPROPRIATIONS.

Section 361 of the National Defense Authorization Act for Fiscal Year 1995 (Public

Law 103–337; 108 Stat. 2732) is amended to

read as follows:

‘‘SEC. 361. SEMIANNUAL REPORTS TO CONGRESS

ON TRANSFERS FROM HIGH-PRIORITY READINESS APPROPRIATIONS.

‘‘(a) ANNUAL REPORTS.—(1) During 1996 and

1997, the Secretary of Defense shall submit

to the congressional defense committees a

report on transfers during the preceding fiscal year from funds available for the budget

activities specified in subsection (d) (hereinafter in this section referred to as ‘covered

budget activities’). The report each year

shall be submitted not later than the date in

that year on which the President submits

the budget for the next fiscal year to Congress pursuant to section 1105 of title 31,

United States Code.

‘‘(2) Each such report shall include—

‘‘(A) specific identification of each transfer

during the preceding fiscal year of funds

available for any covered budget activity,

showing the amount of the transfer, the covered budget activity from which the transfer

was made, and the budget activity to which

the transfer was made; and

‘‘(B) with respect to each such transfer, a

statement of whether that transfer was made

to a budget activity within a different appropriation than the appropriation containing

the covered budget activity from which the

transfer was made or to a budget activity

within the same appropriation.

‘‘(b) MIDYEAR REPORTS.—On May 1 of each

year specified in subsection (a), the Secretary of Defense shall submit to the congressional defense committees a report providing the same information, with respect to

the first six months of the fiscal year in

which the report is submitted, that is provided in reports under subsection (a) with respect to the preceding fiscal year.

‘‘(c) MATTERS TO BE INCLUDED.—In each report under this section, the Secretary shall

include the following:

‘‘(1) With respect to each transfer of funds

identified in the report, a statement of the

specific reason for the transfer.

‘‘(2) For each covered budget activity—

‘‘(A) a statement, for the period covered by

the report, of—

‘‘(i) the total amount of transfers into

funds available for that activity;

‘‘(ii) the total amount of transfers from

funds available for that activity; and

‘‘(iii) the net amount of transfers into, or

out of, funds available for that activity; and

‘‘(B) a detailed explanation of the transfers

into, and out of, funds available for that activity during the period covered by the report.

‘‘(d) COVERED BUDGET ACTIVITIES.—The

budget activities to which this section applies are the following:

‘‘(1) The budget activity groups (known as

‘subactivities’) within the Operating Forces

budget activity of the annual Operation and

Maintenance, Army, appropriation that are

designated as follows:

‘‘(A) Combat Units.

‘‘(B) Tactical Support.

‘‘(C) Force-Related Training/Special Activities.

‘‘(D) Depot Maintenance.

‘‘(E) JCS Exercises.

‘‘(2) The budget activity groups (known as

‘subactivities’) within the Operating Forces

budget activity of the annual Operation and

Maintenance, Navy, appropriation that are

designated as follows:

‘‘(A) Mission and Other Flight Operations.

‘‘(B) Mission and Other Ship Operations.

‘‘(C) Fleet Air Training.

‘‘(D) Ship Operational Support and Training.

‘‘(E) Aircraft Depot Maintenance.

‘‘(F) Ship Depot Maintenance.

‘‘(3) The budget activity groups (known as

‘subactivities’), or other activity, within the

Operating Forces budget activity of the annual Operation and Maintenance, Air Force,

appropriation that are designated or otherwise identified as follows:

‘‘(A) Primary Combat Forces.

‘‘(B) Primary Combat Weapons.

‘‘(C) Global and Early Warning.

‘‘(D) Air Operations Training.

‘‘(E) Depot Maintenance.

‘‘(F) JCS Exercises.’’.
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1995 T80.11

SEC. 374. MODIFICATION OF NOTIFICATION REQUIREMENT REGARDING USE OF

CORE LOGISTICS FUNCTIONS WAIVER.

Section 2464(b) of title 10, United States

Code, is amended by striking out paragraphs

(3) and (4) and inserting in lieu thereof the

following new paragraph:

‘‘(3) A waiver under paragraph (2) may not

take effect until the end of the 30-day period

beginning on the date on which the Secretary submits a report on the waiver to the

Committee on Armed Services and the Committee on Appropriations of the Senate and

the Committee on National Security and the

Committee on Appropriations of the House

of Representatives.’’.

SEC. 375. LIMITATION ON DEVELOPMENT OR

MODERNIZATION OF AUTOMATED

INFORMATION SYSTEMS OF DEPARTMENT OF DEFENSE PENDING REPORT.

(a) OBLIGATIONS AND EXPENDITURES SUBJECT TO REPORT.—Of the amounts appropriated pursuant to the authorization of appropriations in section 301, the Secretary of

Defense may not obligate or expend amounts

in excess of $2,411,947,000 for the development

and modernization of automated data processing programs of the Department of Defense until after the end of the 30-day period

beginning on the date on which the Inspector

General of the Department of Defense submits to Congress a report that—

(1) addresses the ongoing concerns about

performance measures and management controls regarding automated information systems;

(2) certifies that the Inspector General has

completed review of the Base Level System

Modernization and the Sustaining Base Information System;

(3) certifies that the Inspector General has

completed the tasks identified in the review

of Standard Installation/Division Personnel

System-3;

(4) provides complete functional economic

analyses for Automated System for Transportation Data, Electronic Data Interchange, Flexible Computer Integrated Manufacturing, Navy Tactical Command Support

System, and Defense Information System

Network;

(5) contains the resolution of the existing

problems with the Defense Information System Network, Continuous Acquisition and

Life-Cycle Support, and the Joint ComputerAided Acquisition and Logistics Support;

(6) provides the necessary waivers regarding compelling military value, or provides

complete functional economic analyses, regarding Air Force Wargaming Center Air

Force Command Exercise System, Cheyenne

Mountain Upgrade, Transportation Coordinator Automated Command and Control Information Systems, and Wing Command and

Control System; and

(7) certifies the termination of the Personnel Electronic Record Management System or provides justification for the continued need for the program.

(b) AUTOMATED INFORMATION SYSTEM DEFINED.—For purposes of this section, the

term ‘‘automated information system’’

means an automated information system of

the Department of Defense subject to section

381 of the National Defense Authorization

Act for Fiscal Year 1995 (Public Law 103–337;

108 Stat. 2738; 10 U.S.C. 113 note).

SEC. 376. REPORT REGARDING REDUCTION OF

COSTS ASSOCIATED WITH CONTRACT MANAGEMENT OVERSIGHT.

(a) REPORT REQUIRED.—Not later than

April 1, 1996, the Comptroller General of the

United States shall submit to Congress a report identifying methods to reduce the cost

to the Department of Defense of management oversight of contracts in connection

with major defense acquisition programs.

(b) MAJOR DEFENSE ACQUISITION PROGRAMS

DEFINED.—For purposes of this section, the

term ‘‘major defense acquisition programs’’

has the meaning given that term in section

2430(a) of title 10, United States Code.

Subtitle H—Other Matters

SEC. 381. PROHIBITION ON CAPITAL LEASE FOR

DEFENSE BUSINESS MANAGEMENT

UNIVERSITY.

None of the funds appropriated to the Department of Defense for fiscal year 1996 may

be used to enter into any lease with respect

to the Center for Financial Management

Education and Training of the Defense Business Management University if the lease

would be treated as a capital lease for budgetary purposes.

SEC. 382. AUTHORITY OF INSPECTOR GENERAL

OVER INVESTIGATIONS OF PROCUREMENT FRAUD.

(a) AUTHORITY.—Section 141 of title 10,

United States Code, is amended by adding at

the end the following new subsection:

‘‘(c) The Inspector General shall be responsible for and shall oversee all investigations

of procurement fraud within the Department

of Defense.’’.

(b) IMPLEMENTATION.—The Secretary of Defense shall take such action as may be necessary to implement the amendment made

by subsection (a).

SEC. 383. PROVISION OF EQUIPMENT AND FACILITIES TO ASSIST IN EMERGENCY RESPONSE ACTIONS.

Section 372 of title 10, United States Code,

is amended by adding at the end the following new sentence: ‘‘Assistance provided

under this section may include training facilities, sensors, protective clothing, antidotes, and other materials and expertise of

the Department of Defense appropriate for

use by a Federal, State, or local law enforcement or emergency response agency in preparing for or responding to an emergency involving chemical or biological agents if the

Secretary determines that the materials or

services to be provided are not reasonably

available from another source.’’.

SEC. 384. CONVERSION OF THE CIVILIAN MARKSMANSHIP PROGRAM TO A FEDERALLY CHARTERED NONPROFIT CORPORATION.

(a) CORPORATION.—

(1) ESTABLISHMENT.—There is hereby established a private nonprofit corporation, to be

known as the Corporation for the Promotion

of Rifle Practice and Firearms Safety (in

this section referred to as the ‘‘Corporation’’), for the promotion of rifle practice

and firearms safety.

(2) DUTIES.—The Corporation shall be responsible for the supervision, oversight, and

control of the Civilian Marksmanship Program.

(3) MEMBERSHIP.—The Corporation shall

have a board of directors consisting of nine

members. Each member shall serve for a

two-year term, except for four members of

the initial board of directors, who shall serve

a one-year term, and shall be eligible for reappointment. The private members of the

National Board for the Promotion of Rifle

Practice, as in existence on the day before

the date of the enactment of this Act, shall

forward nominations for membership on the

initial board of directors of the Corporation

to the governing body designated by the

United States Olympic Committee for international rifle and pistol competition (in this

section referred to as the ‘‘USOC designee’’)

not later than 10 days after the date of the

enactment of this Act. Unless the nomination is rejected by the USOC designee by

written notification to the existing members

of the National Board within 30 days of the

nomination, the nominee shall be seated as a

member of the board of directors of the Corporation. Members of the board of directors

shall nominate individuals to fill subsequent

vacancies within 10 days of the vacancy,

with a right of rejection reserved to the

USOC designee by written notification to the

Corporation within 30 days of each nomination.

(4) DIRECTOR OF CIVILIAN MARKSMANSHIP

AND STAFF.—The Corporation shall appoint a

person to serve as the Director of Civilian

Marksmanship, who shall be responsible for

the day to day operations of the Corporation

and the Civilian Marksmanship Program.

Subject to the approval of the Corporation,

the Director and civilian employees of the

Corporation may enroll or remain enrolled

without penalty or loss of credit in all pension and benefits programs available to civilian employees of the Department of Defense,

the employer’s contribution to be paid by

the Corporation.

(b) SOLICITATION AND RECEIPT OF FUNDS.—

(1) IN GENERAL.—The Corporation and the

Director may solicit, accept, hold, use, and

dispose of, in furtherance of the activities of

the Civilian Marksmanship Program, donations of money, property, and services received by gift, devise, bequest, or otherwise.

(2) USE OF PROCEEDS.—Amounts collected

by the Civilian Marksmanship Program, including the proceeds from the sale of arms,

ammunition, targets and other supplies and

appliances, shall be used to carry out the Civilian Marksmanship Program.

(3) TRANSFER OF FUNDS.—Amounts available to the National Board for the Promotion of Rifle Practice as of the date of enactment of this Act from rifle sales programs

and from fees in connection with competitions sponsored by that board shall be transferred to the Corporation to carry out the Civilian Marksmanship Program.

(4) FEES CHARGED.—The Corporation may

impose such reasonable fees as are necessary

to cover the direct and indirect costs to the

Corporation, for persons and gun clubs participating in any program or competition

conducted under the Civilian Marksmanship

Program for the promotion of rifle practice

and firearms safety among civilians.

(c) RESPONSIBILITIES.—The Corporation,

through the Civilian Marksmanship Program, shall provide for—

(1) the operation and maintenance of indoor and outdoor rifle ranges and their accessories and appliances;

(2) the instruction of citizens of the United

States in marksmanship, and the employment of trained instructors for the purpose;

(3) the promotion of practice in the use of

rifled arms and the maintenance and management of matches and competitions in the

use of those arms; and

(4) the award to competitors of trophies,

prizes, badges, and other insignia.

(d) YOUTH ACTIVITIES.—The Corporation,

through the Civilian Marksmanship Program, shall give priority to activities that

benefit firearms safety training and competition for youth and reach as many youth participants as possible.

(e) ELIGIBILITY.—

(1) AFFIDAVIT.—Before a person may participate in any activity sponsored or supported by the Civilian Marksmanship Program, the person shall be required to certify

by affidavit the following:

(A) The person has not been convicted of

any violation of section 922 of title 18, United

States Code. The Director may require any

person to attach certification from the appropriate State or Federal law enforcement

agency to the person’s affidavit.

(B) The person is not a member of any organization that advocates the violent overthrow of the United States Government.

(2) EFFECT OF CONVICTION.—A person who

has been convicted of a violation of section

922 of title 18, United States Code, shall not

be eligible to participate in any activity
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sponsored or supported by the Corporation

through the Civilian Marksmanship Program.

(3) FURTHER LIMITATIONS ON PARTICIPATION.—The Director may limit participation

as necessary to ensure quality instruction in

the rifled arms, participant safety, and firearms security.

(f) ARMS AND AMMUNITION.—

(1) ISSUANCE.—The Corporation may issue,

without cost, the arms, ammunition (including caliber .22 and caliber .30 ammunition),

targets, and other supplies and appliances

necessary for activities related to the Civilian Marksmanship Program. Issuance shall

be made only to gun clubs under the direction of the Corporation that provide training

in the use of rifled arms to youth, the Boy

Scouts of America, 4–H Clubs, Future Farmers of America, and other youth-oriented organizations for training and competition.

The Corporation shall be responsible for ensuring adequate oversight and accountability for these arms and ammunition.

(2) SALE TO CLUBS.—The Corporation may

sell at fair market value caliber .30 rifles and

ammunition for caliber .30 rifles, .22 rifles,

and air rifles to gun clubs that are under the

direction of the Corporation and provide

training in the use of rifled arms. In lieu of

sales, the Civilian Marksmanship Program

may loan caliber .30 rifles, .22 rifles, and air

rifles to such clubs, but the Corporation is

responsible for ensuring the oversight and

accountability of such rifles.

(3) SALE TO INDIVIDUALS.—The Corporation

may sell at fair market value caliber .30 rifles, ammunition, targets, and other supplies

and appliances necessary for target practice

to citizens of the United States over 18 years

of age who are members of a gun club under

the direction of the Corporation. Such sales

are subject to applicable Federal, State, and

local laws. In addition to any other requirement, the Corporation shall provide for a

criminal records check of the person with appropriate Federal and State law enforcement

agencies, and the Corporation shall not sell

weapons or ammunition to a person who has

been convicted of a felony or Federal or

State firearms violation.

(g) OTHER DUTIES.—The Corporation shall

provide for or assist in providing for—

(1) the procurement of necessary supplies,

appliances, trophies, prizes, badges, and

other insignia, clerical and other services,

and labor to carry out the Civilian Marksmanship Program; and

(2) transportation of employees, instructors, and civilians to give or receive instruction or to assist or engage in practice in the

use of rifled arms, and the transportation

and subsistence, or an allowance in lieu of

subsistence, of members of teams authorized

by the Corporation to participate in matches

or competitions in the use of rifled arms.

(h) AUTHORITY OF SECRETARY OF DEFENSE

TO SELL SURPLUS ARMS AND AMMUNITION.—

Subject to section 1208 of the National Defense Authorization Act for Fiscal Years 1990

and 1991 (Public Law 101–189; 10 U.S.C. 372

note), relating to the transfer of excess small

arms and ammunition to support Government counter-drug activities, the Secretary

of the Army shall reserve for the Civilian

Marksmanship Program all remaining M–1

Garand rifles, and ammunition for such rifles, held by the Army on the date of the enactment of this Act. After such date, the

Secretary of the Army shall cease demilitarization of remaining M–1 Garand rifles in

the Army inventory unless such rifles are determined to be irreparable by the Defense

Logistics Agency. Any transfers of arms and

ammunition to the Corporation under this

section shall be made without cost to the Civilian Marksmanship Program, except that

the Corporation shall assume the cost of

preparation and transportation of the transferred rifles.

(i) LOGISTICAL SUPPORT TO CIVILIAN MARKSMANSHIP PROGRAM.—The Secretary of Defense, under such regulations as the Secretary may prescribe, may provide logistical

support to the Civilian Marksmanship Program, for competitions and other activities

conducted by the Corporation. The Secretary

shall recoup only the incremental cost for

this support from the Corporation. The National Matches may continue to be held at

the current Department of Defense facilities

as part of the support authorized under this

section.

(j) REPEAL.—(1) Sections 4307, 4308, 4310,

and 4311 of title 10, United States Code, are

repealed.

(2) The table of sections at the beginning of

chapter 401 of such title is amended by striking out the items relating to sections 4307,

4308, 4310, and 4311.

SEC. 385. PERSONNEL SERVICES AND

LOGISTICAL SUPPORT FOR CERTAIN

ACTIVITIES HELD ON MILITARY INSTALLATIONS.

Section 2544 of title 10, United States Code,

is amended—

(1) by redesignating subsection (g) as subsection (h); and

(2) by inserting after subsection (f) the following new subsection:

‘‘(g) In the case of a Boy Scout Jamboree

held on a United States military installation, the Secretary of Defense may provide

personnel services and logistical support at

the military installation in addition to the

support authorized under subsections (a) and

(d).’’.

SEC. 386. RETENTION OF MONETARY AWARDS.

(a) MONETARY AWARDS.—Chapter 155 of

title 10, United States Code, is amended by

adding at the end the following new section:

‘‘§ 2610. Acceptance of monetary awards from

competition for excellence

‘‘(a) ACCEPTANCE AUTHORIZED.—The Secretary of Defense may accept any monetary

award given to the Department of Defense by

a nongovernmental entity as an award in

competition recognizing excellence or innovation in providing services or administering

programs.

‘‘(b) DISPOSITION OF AWARDS.—(1) Subject

to paragraph (2), a monetary award accepted

under subsection (a) shall be credited to the

appropriation supporting the operation of

the command, installation, or other activity

that is recognized for the award and, in such

amount as is provided in advance in appropriation Acts, shall be available for the same

purposes as the underlying appropriation.

‘‘(2) Subject to such limitations as may be

provided in appropriation Acts, the Secretary of Defense may disburse an amount

not to exceed 50 percent of the monetary

award to persons who are responsible for the

excellence or innovation recognized by the

award. A person may not receive more than

$10,000 under the authority of this paragraph

from any monetary reward.

‘‘(c) INCIDENTAL EXPENSES.—Subject to

such limitations as may be provided in appropriation Acts, appropriations available to

the Department of Defense may be used to

pay incidental expenses incurred to compete

in a competition described in subsection (a)

or to accept a monetary award under this

section.

‘‘(d) REGULATIONS AND REPORTING.—(1) The

Secretary of Defense shall prescribe regulations to determine the disposition of any

monetary awards accepted under this section

and the payment of incidental expenses

under subsection (c).

‘‘(2) The Secretary of Defense shall submit

to Congress an annual report describing the

disposition of any monetary awards accepted

under this section and the payment of any

incidental expenses under this subsection

(c).’’.

(b) CLERICAL AMENDMENT.—The table of

sections at the beginning of such chapter is

amended by adding at the end the following

new item:

‘‘2610. Acceptance of monetary awards from

competition for excellence.’’.

SEC. 387. CIVIL RESERVE AIR FLEET.

Section 9512 of title 10, United States Code,

is amended by striking out ‘‘full’’ before

‘‘Civil Reserve Air Fleet’’ in subsections

(b)(2) and (e).

SEC. 388. PERMANENT AUTHORITY REGARDING

USE OF PROCEEDS FROM SALE OF

LOST, ABANDONED, AND UNCLAIMED PERSONAL PROPERTY AT

CERTAIN INSTALLATIONS.

(a) CONVERSION OF EXISTING DEMONSTRATION PROJECT.—Section 343 the National Defense Authorization Act for Fiscal Years 1992

and 1993 (Public Law 102–190; 105 Stat. 1343) is

amended by striking out subsections (d) and

(e) and inserting in lieu thereof the following

new subsection:

‘‘(d) APPLICATION OF SPECIAL RULE.—The

special rule provided by subsection (a) shall

apply with respect to the disposal under section 2575 of title 10, United States Code, of

property found on the military installations

referred to in subsection (b).’’.

(b) CONFORMING AMENDMENTS.—Subsection

(a) of such section is amended—

(1) by striking out ‘‘DEMONSTRATION

PROJECT’’ in the subsection heading and inserting in lieu thereof ‘‘SPECIAL RULE REGARDING PROCEEDS’’; and

(2) by striking out ‘‘demonstration

project’’ and inserting in lieu thereof ‘‘permanent program’’.

SEC. 389. TRANSFER OF EXCESS PERSONAL

PROPERTY TO SUPPORT LAW ENFORCEMENT ACTIVITIES.

Section 1208(a)(1)(A) of the National Defense Authorization Act for Fiscal Years 1990

and 1991 (P.L. 101–189; 10 U.S.C. 372 note) is

amended by striking out ‘‘counter-drug activities’’ and inserting in lieu thereof ‘‘law

enforcement activities, including counterdrug activities’’.

SEC. 390. DEVELOPMENT AND IMPLEMENTATION

OF INNOVATIVE PROCESSES TO IMPROVE OPERATION AND MAINTENANCE.

Of the amounts authorized to be appropriated under section 301(5), $350,000,000 shall

be available to the Secretary of Defense for

the development or acquisition of information technologies and reengineered functional processes, such as in the areas of personnel management, finance, and depot-level

maintenance, for implementation within the

Department of Defense. Before obligating or

expending funds under this section for an information technology or reengineered functional process, the Secretary shall certify to

Congress that the information technology or

reengineered functional process—

(1) demonstrates a rate of return, within

three years, of 300 percent compared to the

investment made under this section; or

(2) would have a measurable effect upon

the effectiveness of the readiness of the

Armed Forces or the operation and management of the Department of Defense.

SEC. 391. REVIEW OF USE OF DEFENSE LOGISTICS AGENCY TO MANAGE INVENTORY CONTROL POINTS.

(a) REVIEW OF CONSOLIDATION OF INVENTORY

CONTROL POINTS.—The Secretary of Defense

shall conduct a review regarding the consolidation under the Defense Logistics Agency of

all inventory control points, including the

inventory management and acquisition of

depot-level repairables.

(b) SUBMISSION OF RESULTS.—Not later

than March 31, 1996, the Secretary shall com-
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plete the review and submit a report to the

congressional defense committees describing

the results the review.

(c) LIMITATION ON IMPLEMENTATION OF MATERIEL MANAGEMENT STANDARD SYSTEM.—

Pending the submission of the report, the

Secretary of Defense may not proceed with

the implementation of the automated data

processing program of the Department of Defense known as the Materiel Management

Standard System.

SEC. 392. SALE OF 50 PERCENT OF CURRENT WAR

RESERVE FUEL STOCKS.

(a) SALE REQUIRED.—Notwithstanding section 2390(a) of title 10, United States Code,

the Secretary of Defense shall reduce war reserve fuel stocks of the Department of Defense to a level equal to 50 percent of the

level of such stocks on January 1, 1995. The

Secretary shall achieve the reduction

through consumption of fuel in the Department of Defense and, if necessary, sales of

fuel outside the Department to the highest

qualified bidders.

(b) SUBSEQUENT FUEL PURCHASES.—After

the date of the enactment of this Act, fuel

purchases for the Department of Defense

shall be made on the basis of the actual fuel

needs of the Department.

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

the Secretary of Defense shall submit to

Congress a report describing the manner in

which the reduction of war reserve fuel

stocks is to be made and the time period

within which the reduction is to be achieved.

(d) SUSPENSION OF REDUCTION; INCREASES.—

The Secretary of Defense may suspend the

reduction of war reserve fuel stocks, and in

fact increase such stocks as otherwise authorized by law, in the event of a national

emergency or to advance the national security interests of the United States.

SEC. 393. MILITARY CLOTHING SALES STORES,

REPLACEMENT SALES.

(a) IN GENERAL.—(1) Chapter 651 of title 10,

United States Code, is amended by adding at

the end the following new section:

‘‘§ 7606. Subsistence and other supplies: members of armed forces; veterans; executive or

military departments and employees; prices

‘‘(a) The branch, office, or officer designated by the Secretary of the Navy shall

procure and sell, for cash or credit—

‘‘(1) articles specified by the Secretary of

the Navy or a person designated by the Secretary, to members of the Navy and Marine

Corps; and

‘‘(2) items of individual clothing and equipment to members of the Navy and Marine

Corps, under such restrictions as the Secretary may prescribe.

An account of sales on credit shall be kept

and the amount due reported to any branch

office, or officer designated by the Secretary.

Except for articles and items acquired

through the use of working capital funds

under section 2208 of this title, sales of articles shall be at cost, and sales of individual

clothing and equipment shall be at average

current prices, including overhead, as determined by the Secretary.

‘‘(b) The branch, office, or officer designated by the Secretary shall sell subsistence supplies to members of other armed

forces at the prices at which like property is

sold to members of the Navy and Marine

Corps.

‘‘(c) The branch, office, or officer designated by the Secretary may sell serviceable supplies, other than subsistence supplies, to members of other armed forces at

the prices at which like property is sold to

members of the Navy and Marine Corps.

‘‘(d) A person who has been discharged honorably or under honorable conditions from

the Army, Navy, Air Force, or Marine Corps

and who is receiving care and medical treatment from the Public Health Service or the

Department of Veterans Affairs may buy

subsistence supplies and other supplies, except articles of uniform, at the prices at

which like property is sold to members of

the Navy and Marine Corps.

‘‘(e) Under such conditions as the Secretary may prescribe, exterior articles of

uniform may be sold to a person who has

been discharged from the Navy or Marine

Corps honorably or under honorable conditions at the prices at which like articles are

sold to members of the Navy or Marine

Corps. This subsection does not modify section 772 or 773 of this title.

‘‘(f) Under regulations prescribed by the

Secretary, payment for subsistence supplies

shall be made in cash or by commercial credit.

‘‘(g) The Secretary may provide for the

procurement and sale of stores designated by

him to such civilian officers and employees

of the United States, and such other persons,

as he considers proper—

‘‘(1) at military installations outside the

United States (provided such sales conform

with host nation support agreements); and

‘‘(2) at military installations inside the

United States where the Secretary determines that it is impracticable for those civilian officers, employees, and persons to obtain those stores from commercial enterprises without impairing the efficient operation of military activities.

However, sales to such civilian officers and

employees inside the United States may be

only to those who reside within military installations.

‘‘(h) Appropriations for subsistence of the

Navy or Marine Corps may be applied to the

purchase of subsistence supplies for sale to

members of the Navy and Marine Corps on

active duty for the use of themselves and

their families.’’.

(2) The table of sections at the beginning of

such chapter is amended by adding at the

end the following new item:

‘‘7606. Subsistence and other supplies: members of armed forces; veterans;

executive or military departments and employees; prices.’’.

(b) CONFORMING AMENDMENTS FOR OTHER

ARMED FORCES.—(1) Section 4621(f) of such

title is amended by inserting before the period at the end the following: ‘‘or by commercial credit’’.

(2) Section 9621(f) of such title is amended

by inserting before the period at the end the

following: ‘‘or by commercial credit’’.

SEC. 394. ASSISTANCE TO LOCAL EDUCATIONAL

AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED

FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

(a) CONTINUATION OF DEPARTMENT OF DEFENSE PROGRAM.—Of the amounts authorized

to be appropriated in section 301(5)—

(1) $50,000,000 shall be available for providing educational agencies assistance (as

defined in subsection (d)(1)) to local educational agencies; and

(2) $8,000,000 shall be available for making

educational agencies payments (as defined in

subsection (d)(2)) to local educational agencies.

(b) NOTIFICATION OF AVAILABILITY OF

FUNDS.—Not later than June 30, 1996—

(1) the Secretary of Defense shall notify

each local educational agency that is eligible

for educational agencies assistance for fiscal

year 1996 of that agency’s eligibility for such

assistance and the amount of such assistance

for which that agency is eligible; and

(2) the Secretary of Education shall notify

each local educational agency that is eligible

for an educational agencies payment for fiscal year 1996 of that agency’s eligibility for

such payment and the amount of the payment for which that agency is eligible.

(c) DISBURSEMENT.—The Secretary of Defense (with respect to funds made available

under subsection (a)(1)) and the Secretary of

Education (with respect to funds made available under subsection (a)(2)) shall disburse

such funds not later than 30 days after the

date on which notification to the eligible

local education agencies is provided pursuant to subsection (b).

(d) DEFINITIONS.—For purposes of this section:

(1) The term ‘‘educational agencies assistance’’ means assistance authorized under

subsection (b) of section 386 of the National

Defense Authorization Act for Fiscal Year

1993 (Public Law 102–484; 20 U.S.C. 238 note).

(2) The term ‘‘educational agencies payments’’ means payments authorized under

subsection (d) of that section.

(e) REDUCTION IN IMPACT THRESHOLD.—Subsection (c)(1) of section 386 of the National

Defense Authorization Act for Fiscal Year

1993 (Public Law 102–484; 20 U.S.C. 238 note) is

amended—

(1) by striking out ‘‘30 percent’’ and inserting in lieu thereof ‘‘20 percent’’; and

(2) by striking out ‘‘counted under subsection (a) or (b) of section 3 of the Act of

September 30, 1950 (Public Law 874, Eightyfirst Congress; 20 U.S.C. 238)’’.

(f) EXTENSION OF REPORTING REQUIREMENT.—Subsection (e)(1) of section 386 of the

National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 20 U.S.C.

238 note) is amended by striking out ‘‘and

1995’’ and inserting in lieu thereof ‘‘1995, and

1996’’.

(g) TECHNICAL AMENDMENTS TO CORRECT

REFERENCES TO REPEALED LAW.—Section 386

of the National Defense Authorization Act

for Fiscal Year 1993 (Public Law 102–484; 20

U.S.C. 238 note) is amended—

(1) in subsection (d), by striking out

‘‘under section 3’’ and all that follows

through ‘‘of such subsection that result

from’’ and inserting in lieu thereof ‘‘payments under section 8003(e) of the Elementary and Secondary Education Act of 1965 (20

U.S.C. 7703(e)) as a result of’’;

(2) in subsection (e)(2)(C), by inserting

after ‘‘et seq.),’’ the following: ‘‘title VIII of

the Elementary and Secondary Education

Act of 1965 (20 U.S.C. 7701 et seq.),’’;

(3) in subsection (e)(2)(D), by striking out

‘‘under subsections (a) and (b) of section 3 of

such Act (20 U.S.C. 238)’’; and

(4) in subsection (h)—

(A) in paragraph (1), by striking out ‘‘section 1471(12) of the Elementary and Secondary Education Act of 1965 (20 U.S.C.

2891(12))’’ and inserting in lieu thereof ‘‘section 8013(9) of the Elementary and Secondary

Education Act of 1965 (20 U.S.C. 7713(9))’’; and

(B) by striking out paragraph (3) and inserting in lieu thereof the following new

paragraph:

‘‘(3) The term ‘State’ does not include

Puerto Rico, Wake Island, Guam, American

Samoa, the Northern Mariana Islands, or the

Virgin Islands.’’.

SEC. 395. CORE LOGISTICS CAPABILITIES OF THE

DEPARTMENT OF DEFENSE.

(a) IN GENERAL.—Chapter 146 of title 10,

United States Code, is amended by adding at

the end the following new section:

‘‘§ 2473. Depot-level maintenance and repair

workload

‘‘(a) IMPORTANCE OF DEPOT-LEVEL MAINTENANCE AND REPAIR CORE CAPABILITIES.—It is

essential for the national defense that the

United States maintain a core depot-level

maintenance and repair capability (including

skilled personnel, equipment, and facilities)

within facilities owned and operated by the

Department of Defense that—

‘‘(1) is of the proper size (A) to ensure a

ready and controlled source of technical

competence and repair and maintenance ca-
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T80.11 JUNE 15

pability necessary to meet the requirements

of the National Military Strategy and other

requirements for responding to military contingencies, and (B) to provide for rapid augmentation in time of emergency; and

‘‘(2) is assigned sufficient workload to ensure cost efficiency and proficiency in time

of peace.

‘‘(b) DETERMINATION OF CORE DEPOT MAINTENANCE ACTIVITIES.—(1) The Secretary of

each military department shall identify

those depot-level maintenance and repair activities under that Secretary’s jurisdiction

that are necessary to ensure for that military department the depot-level maintenance and repair capability described in subsection (a) and as required by section 2464 of

this title.

‘‘(2) The Secretary of each military department shall prescribe the procedures to be

used to quantify the requirements necessary

to support the capability described in subsection (a).

‘‘(c) PERFORMANCE OF WORKLOAD THAT SUPPORTS DEPOT-LEVEL MAINTENANCE AND REPAIR CORE CAPABILITIES.—The Secretary of

each military department shall require the

performance of depot-level maintenance and

repair of activities identified under subsection (b) at organic Department of Defense

maintenance depots at levels sufficient to

ensure that the Department of Defense maintains the core depot-level maintenance and

repair capability described in subsection (a).

‘‘(d) INTERSERVICING OF WORKLOAD.—The

Secretary of Defense, after consultation with

the Secretaries of the military departments,

may transfer workload that supports the

core capability described in subsection (a)

from one military department to another.

The Secretary of Defense shall use meritbased criteria in evaluating such transfers.

‘‘(e) SOURCE OF REPAIR FOR OTHER DEPOTLEVEL WORKLOADS.—In the case of depotlevel maintenance and repair workloads in

excess of the workload required pursuant to

subsection (c) to be performed at organic Department of Defense depots, the Secretary of

Defense, after consultation with the Secretaries of the military departments, may provide for the performance of those workloads

through sources selected by competition.

The Secretary of Defense shall use competition between private firms and organic Department of Defense depots for any such

workload when the Secretary determines

there are less than two qualified sources of

supply among private firms for the performance of that specific depot-level maintenance

workload.

‘‘(f) DEPOT-LEVEL WORKLOAD COMPETITIONS.—In any competition under this section for a depot-level workload (whether

among private firms or between Department

of Defense activities and private firms), bids

from any entity participating in the competition shall accurately disclose all costs

properly and consistently derived from accounting systems and practices that comply

with laws, policies, and standards applicable

to that entity. In any competition between

Department of Defense activities and private

firms, the Government calculation for the

cost of performance of the function by Department of Defense civilian employees shall

be based on an estimate using the most efficient and cost effective manner for performance of such function by Department of Defense civilian employees.

‘‘(g) ANNUAL REPORT.—Not later than

March 1 of each year, the Secretary of Defense shall submit to Congress a report specifying depot maintenance core capability requirements determined in accordance with

the procedures established to comply with

subsection (b)(2) and the planned amount of

workload to be accomplished in the organic

depots of each military department in support of those requirements for the following

fiscal year. The report shall identify the

planned amount of workload measured by direct labor hours and by amounts expended

and shall be shown separately for each commodity group.’’.

(b) REPEAL OF 60/40 REQUIREMENT AND REQUIREMENT RELATING TO COMPETITION.—Effective December 31, 1996—

(1) section 2466 of title 10, United States

Code, is repealed unless Congress takes further action regarding such repeal; and

(2) section 2469 of title 10, United States

Code, is repealed unless Congress takes further action regarding such repeal.

(c) INTERIM EXCLUSION OF LARGE MAINTENANCE AND REPAIR PROJECTS FROM 60/40 REQUIREMENT.—Effective on the date of the enactment of this Act, section 2466(d) of title

10, United States Code, is amended—

(1) by striking out ‘‘EXCEPTION.—’’ and inserting in lieu thereof ‘‘EXCEPTIONS.—(1)’’;

and

(2) by adding at the end the following new

paragraph:

‘‘(2) If a maintenance or repair project for

a single item that is contracted for performance by non-Federal Government personnel

accounts for 5 percent or more of the funds

made available in a fiscal year to a military

department or a Defense Agency for depotlevel maintenance and repair workload, the

project and the funds necessary for the

project shall not be considered when applying the percentage limitation specified in

subsection (a) to that military department

or Defense Agency.’’.

(d) CLERICAL AMENDMENTS.—The table of

sections at the beginning of chapter 146 of

such title is amended—

(1) effective December 31, 1996, by striking

out the items relating to sections 2466 and

2469; and

(2) by adding at the end the following new

item:

‘‘2473. Depot-level maintenance and repair

workload.’’.

(e) REPORT ON DEPOT-LEVEL MAINTENANCE

AND REPAIR WORKLOAD.—Not later than

March 1, 1996, the Secretary of Defense shall

submit to Congress a report on the depotlevel maintenance and repair workload of

the Department of Defense. The report shall

include the following:

(1) The analysis required by subsection (f)

of the effect on that workload of the socalled 60/40 requirement.

(2) The analysis required by subsection (g)

of the projected effect on that workload

using a definition of core capability consistent with the description in section 2473(a)

of title 10, United States Code, as added by

subsection (a).

(3) The comparison of those analyses required by subsection (h).

(4) Identification and analysis of significant issues that arise if organic Department

of Defense depots are allowed to participate

in a full and open competition with private

firms for repair workloads in excess of work

that supports core capabilities.

(f) 60/40 REQUIREMENT.—(1) The report

under subsection (e) shall include an analysis

of the requirement under section 2466 of title

10, United States Code, that no more than 40

percent of the depot-level maintenance and

repair work of the Department of Defense be

contracted for performance by non-Government personnel. That analysis shall include

the following:

(A) A description of the effect on military

readiness and the national security resulting

from that requirement, including a description of any specific difficulties experienced

by the Department of Defense as a result of

that requirement.

(B) A determination of the depot-level

maintenance and repair workload of the Department of Defense allocated for performance by organic Department of Defense depots for any fiscal year during which the requirement has been in effect, the percentage

of funds for that workload that were obligated to private sector entities, shown for

each such fiscal year and for the entire period during which the requirement has been

in effect.

(2) That analysis shall be made with respect to—

(A) the distribution during the five fiscal

years ending with fiscal year 1995 of the

depot-level maintenance and repair workload

of the Department of Defense between organic Department of Defense depots and nonGovernment personnel, measured by direct

labor hours and by amounts expended, and

displayed, for that five-year period and for

each year of that period, so as to show (for

each military department (and separately

for the Navy and Marine Corps)) such distribution for each commodity group (such as

naval vessels, aircraft, tracked combat vehicles); and

(B) the projected distribution during the

five fiscal years beginning with fiscal year

1996 of the depot-level maintenance and repair workload of the Department of Defense

between organic Department of Defense depots and non-Government personnel, set

forth in the same manner as described in

subparagraph (A).

(g) CORE WORKLOAD ANALYSIS.—The report

under subsection (e) shall include an analysis

of the depot-level maintenance and repair

workload of the Department of Defense in

which the Secretary uses the capability described in section 2473(a) of title 10, United

States Code, as added by subsection (a), as

the standard for determining that portion of

such workload that is required to be performed in organic Department of Defense facilities. That analysis shall be made with respect to—

(1) the distribution that would (using that

standard) have been made during the five fiscal years ending with fiscal year 1995 of the

depot-level maintenance and repair workload

of the Department of Defense between organic Department of Defense depots and nonGovernment personnel, measured by direct

labor hours and by amounts expended, and

displayed, for that five-year period and for

each year of that period, so as to show (for

each military department (and separately

for the Navy and Marine Corps)) such distribution for each commodity group (such as

naval vessels, aircraft, tracked combat vehicles); and

(2) the projected distribution (using that

standard) during the five fiscal years beginning with fiscal year 1996 of the depot-level

maintenance and repair workload of the Department of Defense between organic Department of Defense depots and non-Government

personnel, set forth in the same manner as

described in paragraph (1).

(h) COMPARISON.—The report under subsection (e) shall include a comparison of the

results of the analysis of the depot-level

maintenance and repair workload of the Department of Defense under subsection (f)

with the results of the analysis of that workload under subsection (g). The comparison

shall include a comparison of the two analyses by service and commodity group with

respect to each of the following:

(1) Identification, based on each analysis,

of core workloads and of the capabilities and

equipment needed to perform depot-level

maintenance and repair for those core workloads.

(2) Identification, based on each analysis,

of depot-level maintenance and repair work

performed (or that would be performed) at

organic Department of Defense depots and of

depot-level maintenance and repair work

performed (or that would be
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1995 T80.11

performed) by non-Government personnel.

(3) Readiness.

(4) The Department of Defense budget.

(5) The depot-level maintenance and repair

workload distribution, under each analysis,

by direct labor hours performed and by dollars expended.

(6) Projected level, for each analysis, of

Government capital investment in public

and private depot-level maintenance and repair facilities.

(i) REVIEW BY GAO.—(1) The Comptroller

General of the United States shall conduct

an independent audit of the findings of the

Secretary of Defense in the report under subsection (e). The Secretary of Defense shall

provide to the Comptroller General for such

purpose all information used by the Secretary in preparing such report.

(2) Not later than April 1, 1996, the Comptroller General shall submit to the congressional defense committees a report on the

analysis by the Comptroller General of the

report submitted by the Secretary of Defense

under this section.

SEC. 396. EXPANSION OF SOUTHWEST BORDER

STATES ANTI-DRUG INFORMATION

SYSTEM.

Congress finds that the Southwest Border

States Anti-Drug Information Systems program is an important element in the effort of

the Department of Defense to support law

enforcement agencies in the fight against illegal trafficking of narcotics.

TITLE IV—MILITARY PERSONNEL

AUTHORIZATIONS

Subtitle A—Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

The Armed Forces are authorized

strengths for active duty personnel as of

September 30, 1996 , as follows:

(1) The Army, 495,000.

(2) The Navy, 428,000.

(3) The Marine Corps, 174,000.

(4) The Air Force, 388,200.

SEC. 402. TEMPORARY VARIATIONS IN DOPMA

AUTHORIZED END STRENGTH LIMITATIONS FOR ACTIVE DUTY NAVY

AND AIR FORCE OFFICERS IN CERTAIN GRADES.

(a) AIR FORCE OFFICERS IN GRADE OF

MAJOR.—Notwithstanding section 523(a)(1) of

title 10, United States Code, and except as

provided in section 523(c) of such title, of the

total number of commissioned officers serving on active duty in the Air Force at the

end of any fiscal year through fiscal year

1997 (excluding officers in categories specified in section 523(b) of title 10, United

States Code), the number of officers who

may be serving on active duty in the grade of

major may not, as of the end of such fiscal

year, exceed the number determined in accordance with the following table:

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

120,000 ............................................................................. 22,561

125,000 ............................................................................. 23,356

(b) NAVY OFFICERS IN GRADES OF LIEUTENANT COMMANDER, COMMANDER, AND CAPTAIN.—Notwithstanding section 523(a)(2) of

title 10, United States Code, and except as

provided in section 523(c) of such title, of the

total number of commissioned officers serving on active duty in the Navy at the end of

any fiscal year through fiscal year 1997 (excluding officers in categories specified in section 523(b) of title 10, United States Code),

the number of officers who may be serving

on active duty in each of the grades of lieutenant commander, commander, and captain

may not, as of the end of such fiscal year, exceed a number determined in accordance

with the following table:

Total number of Navy commissioned 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

Subtitle B—Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

(a) IN GENERAL.—The Armed Forces are authorized strengths for Selected Reserve personnel of the reserve components as of September 30, 1996, as follows:

(1) The Army National Guard of the United

States, 373,000.

(2) The Army Reserve, 230,000.

(3) The Naval Reserve, 98,608.

(4) The Marine Corps Reserve, 42,000.

(5) The Air National Guard of the United

States, 109,458.

(6) The Air Force Reserve, 73,969.

(7) The Coast Guard Reserve, 8,000.

(b) WAIVER AUTHORITY.—The Secretary of

Defense may vary the end strength authorized by subsection (a) by not more than 2

percent.

(c) ADJUSTMENTS.—The end strengths prescribed by subsection (a) for the Selected Reserve of any reserve component shall be proportionately reduced by—

(1) the total authorized strength of units

organized to serve as units of the Selected

Reserve of such component which are on active duty (other than for training) at the end

of the fiscal year, and

(2) the total number of individual members

not in units organized to serve as units of

the Selected Reserve of such component who

are on active duty (other than for training or

for unsatisfactory participation in training)

without their consent at the end of the fiscal

year.

Whenever such units or such individual

members are released from active duty during any fiscal year, the end strength prescribed for such fiscal year for the Selected

Reserve of such reserve component shall be

proportionately increased by the total authorized strengths of such units and by the

total number of such individual members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

Within the end strengths prescribed in section 411(a), the reserve components of the

Armed Forces are authorized, as of September 30, 1996 , the following number of Reserves to be serving on full-time active duty

or full-time duty, in the case of members of

the National Guard, for the purpose of organizing, administering, recruiting, instructing, or training the reserve components:

(1) The Army National Guard of the United

States, 23,390.

(2) The Army Reserve, 11,575.

(3) The Naval Reserve, 17,490.

(4) The Marine Corps Reserve, 2,285.

(5) The Air National Guard of the United

States, 9,817.

(6) The Air Force Reserve, 628.

SEC. 413. COUNTING OF CERTAIN ACTIVE COMPONENT PERSONNEL ASSIGNED IN

SUPPORT OF RESERVE COMPONENT

TRAINING.

Section 414(c) of the National Defense Authorization Act for Fiscal Years 1992 and 1993

(Public Law 102–190; 10 U.S.C. 12001 note) is

amended—

(1) by inserting ‘‘(1)’’ before ‘‘The Secretary’’; and

(2) by adding at the end the following new

paragraph:

‘‘(2) The Secretary of Defense may count

toward the number of active component personnel required under paragraph (1) to be assigned to serve as advisers under the program under this section any active component personnel who are assigned to an active

component unit (A) that was established

principally for the purpose of providing dedicated training support to reserve component

units, and (B) the primary mission of which

is to provide such dedicated training support.’’.

Subtitle C—Military Training Student Loads

SEC. 421. AUTHORIZATION OF TRAINING STUDENT LOADS.

(a) IN GENERAL.—For fiscal year 1996, the

components of the Armed Forces are authorized average military training loads as follows:

(1) The Army, 75,013.

(2) The Navy, 44,238.

(3) The Marine Corps, 26,095.

(4) The Air Force, 33,232.

(b) SCOPE.—The average military training

student loads authorized for an armed force

under subsection (a) apply to the active and

reserve components of that armed force.

(c) ADJUSTMENTS.—The average military

student loads authorized in subsection (a)

shall be adjusted consistent with the end

strengths authorized in subtitles A and B.

The Secretary of Defense shall prescribe the

manner in which such adjustments shall be

apportioned.

Subtitle D—Authorization of Appropriations

SEC. 431. AUTHORIZATION OF APPROPRIATIONS

FOR MILITARY PERSONNEL.

There is hereby authorized to be appropriated to the Department of Defense for

military personnel for fiscal year 1996 a total

of $68,951,663,000. The authorization in the

preceding sentence supersedes any other authorization of appropriations (definite or indefinite) for such purpose for fiscal year 1996.

SEC. 432. AUTHORIZATION FOR INCREASE IN ACTIVE-DUTY END STRENGTHS.

(a) AUTHORIZATION.—There is hereby authorized to be appropriated to the Department of Defense for fiscal year 1996 for military personnel the sum of $112,000,000. Any

amount appropriated pursuant to this section shall be allocated, in such manner as

the Secretary of Defense prescribes, among

appropriations for active-component military personnel for that fiscal year and shall

be available only to increase the number of

members of the Armed Forces on active duty

during that fiscal year (compared to the

number of members that would be on active

duty but for such appropriation).

(b) EFFECT ON END STRENGTHS.—The endstrength authorizations in section 401 shall

each be deemed to be increased by such number as necessary to take account of additional members of the Armed Forces authorized by the Secretary of Defense pursuant to

subsection (a).
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TITLE V—MILITARY PERSONNEL POLICY

Subtitle A—Officer Personnel Policy

SEC. 501. AUTHORITY TO EXTEND TRANSITION

PERIOD FOR OFFICERS SELECTED

FOR EARLY RETIREMENT.

(a) SELECTIVE RETIREMENT OF WARRANT OFFICERS.—Section 581 of title 10, United States

Code, is amended by adding at the end the

following new subsection:

‘‘(e) The Secretary concerned may defer for

not more than 90 days the retirement of an

officer otherwise approved for early retirement under this section in order to prevent

a personal hardship to the officer or for

other humanitarian reasons.’’.

(b) SELECTIVE EARLY RETIREMENT OF ACTIVE-DUTY OFFICERS.—Section 638(b) of title

10, United States Code, is amended by adding

at the end the following new paragraph:

‘‘(3) The Secretary concerned may defer for

not more than 90 days the retirement of an

officer otherwise approved for early retirement under this section or section 638a of

this title in order to prevent a personal hardship to the officer or for other humanitarian

reasons.’’.

Subtitle B—Matters Relating to Reserve

Components

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

FORCE RESERVE COMPONENTS.

(a) REQUIREMENT OF ANNUAL AUTHORIZATION OF END STRENGTH.—(1) Section 115 of

title 10, United States Code, is amended by

adding at the end the following new subsection:

‘‘(g) Congress shall authorize for each fiscal year the end strength for military technicians for each reserve component of the

Army and Air Force. Funds available to the

Department of Defense for any fiscal year

may not be used for the pay of a military

technician during that fiscal year unless the

technician fills a position that is within the

number of such positions authorized by law

for that fiscal year for the reserve component of that technician. This subsection applies without regard to section 129 of this

title.’’.

(2) The amendment made by paragraph (1)

does not apply with respect to fiscal year

1995.

(b) AUTHORIZATION FOR FISCAL YEARS 1996

AND 1997.—For each of fiscal years 1996 and

1997, the number of military technicians, as

of the last day of that fiscal year, for the

Army and the Air Force (notwithstanding

section 129 of title 10, United States Code)

may not exceed the following:

(1) Army National Guard, 25,500.

(2) Army Reserve, 6,630.

(3) Air National Guard, 22,906.

(4) Air Force Reserve, 9,802.

(c) ADMINISTRATION OF MILITARY TECHNICIAN PROGRAM.—(1) Chapter 1007 of title 10,

United States Code, is amended by adding at

the end the following new section:

‘‘§ 10216. Military technicians

‘‘(a) PRIORITY FOR MANAGEMENT OF MILITARY TECHNICIANS.—(1) As a basis for making

the annual request to Congress pursuant to

section 115 of this title for authorization of

end strengths for military technicians of the

Army and Air Force reserve components, the

Secretary of Defense shall give priority to

supporting authorizations for dual status

military technicians in the following highpriority units and organizations:

‘‘(A) Units of the Selected Reserve that are

scheduled to deploy no later than 90 days

after mobilization.

‘‘(B) Units of the Selected Reserve that are

or will deploy to relieve active duty peacetime operations tempo.

‘‘(C) Those organizations with the primary

mission of providing direct support surface

and aviation maintenance for the reserve

components of the Army and Air Force, to

the extent that the military technicians in

such units would mobilize and deploy in a

skill that is compatible with their civilian

position skill.

‘‘(2) For each fiscal year, the Secretary of

Defense shall, for the high-priority units and

organizations referred to in paragraph (1),

achieve a programmed manning level for

military technicians that is not less than 90

percent of the programmed manpower structure for those units and organizations for

military technicians for that fiscal year.

‘‘(3) For each fiscal year, the Secretary of

Defense shall, for reserve component management headquarters organizations (including national and State-level National Guard

headquarters, in United States Property and

Fiscal Offices, and in similar managementlevel headquarters in the Army and Air

Force Reserve), achieve a programmed manning level for military technicians that is

not more than 70 percent of the programmed

manpower structure for those organizations

for military technicians for that fiscal year.

‘‘(4) Military technician authorizations and

personnel in high-priority units and organizations specified in paragraph (1) shall be exempt from any requirement (imposed by law

or otherwise) for reductions in Department

of Defense civilian personnel and shall only

be reduced as part of military force structure

reductions. Planned reductions in Department of Defense civilian personnel that

would apply to such technician authorizations and personnel but for this paragraph

shall be reallocated by the Secretary of Defense on a proportional basis throughout the

Department of Defense, with an emphasis on

reducing headquarters personnel.

‘‘(b) DUAL-STATUS REQUIREMENT.—The Secretary of Defense shall require the Secretary

of the Army and the Secretary of the Air

Force to establish as a condition of employment for each individual who is hired after

the date of the enactment of this section as

a military technician that the individual

maintain membership in the Selected Reserve (so as to be a so-called ‘dual-status’

technician) and shall require that the civilian and military position skill requirements

of dual-status military technicians be compatible. No Department of Defense funds

may be spent for compensation for any military technician hired after the date of the

enactment of this section who is not a member of the Selected Reserve, except that compensation may be paid for up to six months

following loss of membership in the selected

reserve if such loss of membership was not

due to the failure to meet military standards.’’.

(2) The table of sections at the beginning of

such chapter is amended by adding at the

end the following new item:

‘‘10216. Military technicians.’’.

(d) REVIEW OF RESERVE COMPONENT MANAGEMENT HEADQUARTERS.—(1) The Secretary

of Defense shall, within six months after the

date of the enactment of this Act, undertake

steps to reduce, consolidate, and streamline

management headquarters operations of the

reserve components. As part of those steps,

the Secretary shall identify those military

technicians positions in such headquarters

operations that are excess to the requirements of those headquarters.

(2) Of the military technicians positions

that are identified under paragraph (1), the

Secretary shall reallocate up to 95 percent of

those positions to the high-priority units

and activities specified in section 10216(a) of

title 10, United States Code, as added by subsection (c).

(e) ANNUAL DEFENSE MANPOWER REQUIREMENTS REPORT.—Section 115a of title 10,

United States Code, is amended by adding at

the end the following new subsection:

‘‘(h) In each such report, the Secretary

shall include a separate report on the Army

and Air Force military technician programs.

The report shall include a presentation,

shown by reserve component and shown both

as of the end of the preceding fiscal year and

for the next fiscal year, of the following:

‘‘(1) The number of military technicians required to be employed (as specified in accordance with Department of Defense procedures), the number authorized to be employed under Department of Defense personnel procedures, and the number actually

employed.

‘‘(2) Within each of the numbers under

paragraph (1)—

‘‘(A) the number applicable to a reserve

component management headquarter organization; and

‘‘(B) the number applicable to high-priority units and organizations (as specified in

section 10216(a) of this title).

‘‘(3) Within each of the numbers under

paragraph (1), the numbers of military technicians who are not themselves members of a

reserve component (so-called ‘single-status’

technicians), with a further display of such

numbers as specified in paragraph (2).’’.

SEC. 512. MILITARY LEAVE FOR MILITARY RESERVE TECHNICIANS FOR CERTAIN

DUTY OVERSEAS.

Section 6323 of title 5, United States Code

is amended by adding at the end the following new subsection:

‘‘(d)(1) A military reserve technician described in section 8401(30) is entitled at such

person’s request to leave without loss of, or

reduction in, pay, leave to which such person

is otherwise entitled, credit for time or service, or performance or efficiency rating for

each day, not to exceed 44 workdays in a calendar year, in which such person is on active

duty without pay, as authorized pursuant to

section 12315 of title 10, under section

12301(b) or 12301(d) of title 10 (other than active duty during a war or national emergency declared by the President or Congress)

for participation in noncombat operations

outside the United States, its territories and

possessions.

‘‘(2) An employee who requests annual

leave or compensatory time to which the employee is otherwise entitled, for a period during which the employee would have been entitled upon request to leave under this subsection, may be granted such annual leave or

compensatory time without regard to this

section or section 5519.’’.

SEC. 513. REVISIONS TO ARMY GUARD COMBAT

REFORM INITIATIVE TO INCLUDE

ARMY RESERVE UNDER CERTAIN

PROVISIONS AND MAKE CERTAIN

REVISIONS.

(a) PRIOR ACTIVE DUTY PERSONNEL.—Section 1111 of the Army National Guard Combat Readiness Reform Act of 1992 (title XI of

Public Law 102–484) is amended—

(1) in the section heading, by striking out

the first three words;

(2) by striking out subsections (a) and (b)

and inserting in lieu thereof the following:

‘‘(a) ADDITIONAL PRIOR ACTIVE DUTY OFFICERS.—The Secretary of the Army shall increase the number of qualified prior activeduty officers in the Army National Guard by

providing a program that permits the separation of officers on active duty with at least

two, but less than three, years of active service upon condition that the officer is accepted for appointment in the Army National

Guard. The Secretary shall have a goal of

having not fewer than 150 officers become

members of the Army National Guard each

year under this section.

‘‘(b) ADDITIONAL PRIOR ACTIVE DUTY ENLISTED MEMBERS.—The Secretary of the

Army shall increase the number of qualified

prior active-duty enlisted members in the

Army National Guard through the use of en-
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1995 T80.11

listments as described in section 8020 of the

Department of Defense Appropriations Act,

1994 (Public Law 103–139). The Secretary

shall enlist not fewer than 1,000 new enlisted

members each year under enlistments described in that section.’’; and

(3) by striking out subsections (d) and (e).

(b) SERVICE IN THE SELECTED RESERVE IN

LIEU OF ACTIVE DUTY SERVICE FOR ROTC

GRADUATES.—Section 1112(b) of such Act (106

Stat. 2537) is amended by striking out ‘‘National Guard’’ before the period at the end

and inserting in lieu thereof ‘‘Selected Reserve’’.

(c) REVIEW OF OFFICER PROMOTIONS.—Section 1113 of such Act (106 Stat. 2537) is

amended—

(1) in subsection (a), by striking out ‘‘National Guard’’ both places it appears and inserting in lieu thereof ‘‘Selected Reserve’’;

(2) by striking out subsection (b) and inserting in lieu thereof the following:

‘‘(b) COVERAGE OF SELECTED RESERVE COMBAT AND EARLY DEPLOYING UNITS.—(1) Subsection (a) applies to officers in all units of

the Selected Reserve that are designated as

combat units or that are designated for deployment within 75 days of mobilization.

‘‘(2) Subsection (a) shall take effect with

respect to officers of the Army Reserve, and

with respect to officers of the Army National

Guard in units not subject to subsection (a)

as of the date of the enactment of the National Defense Authorization Act for Fiscal

Year 1996, at the end of the 90-day period beginning on such date of enactment.’’.

(d) INITIAL ENTRY TRAINING AND

NONDEPLOYABLE PERSONNEL.—Section 1115 of

such Act (106 Stat. 2538) is amended—

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

out ‘‘National Guard’’ each place it appears

and inserting in lieu thereof ‘‘Selected Reserve’’; and

(2) in subsection (c)—

(A) by striking out ‘‘a member of the Army

National Guard enters the National Guard’’

and inserting in lieu thereof ‘‘a member of

the Army Selected Reserve enters the Army

Selected Reserve’’; and

(B) by striking out ‘‘from the Army National Guard’’.

(e) ACCOUNTING OF MEMBERS WHO FAIL

PHYSICAL DEPLOYABILITY STANDARDS.—Section 1116 of such Act (106 Stat. 2539) is

amended by striking out ‘‘National Guard’’

each place it appears and inserting in lieu

thereof ‘‘Selected Reserve’’.

(f) USE OF COMBAT SIMULATORS.—Section

1120 of such Act (106 Stat. 2539) is amended

by inserting ‘‘and the Army Reserve’’ before

the period at the end.

SEC. 514. ROTC SCHOLARSHIPS FOR THE NATIONAL GUARD.

(a) CLARIFICATION OF RESTRICTION ON ACTIVE DUTY.—Paragraph (2) of section 2107(h)

of title 10, United States Code, is amended by

inserting ‘‘full-time’’ before ‘‘active duty’’ in

the second sentence.

(b) REDESIGNATION OF ROTC SCHOLARSHIPS.—Such paragraph is further amended

by inserting after the first sentence the following new sentence: ‘‘A cadet designated

under this paragraph who, having initially

contracted for service as provided in subsection (b)(5)(A) and having received financial assistance for two years under an award

providing for four years of financial assistance under this section, modifies such contract with the consent of the Secretary of

the Army to provide for service as described

in subsection (b)(5)(B), may be counted, for

the year in which the contract is modified,

toward the number of appointments required

under the preceding sentence for financial

assistance awarded for a period of four

years.’’.

SEC. 515. REPORT ON FEASIBILITY OF PROVIDING EDUCATION BENEFITS PROTECTION INSURANCE FOR SERVICE

ACADEMY AND ROTC SCHOLARSHIP

STUDENTS WHO BECOME MEDICALLY UNABLE TO SERVE.

Not later than June 30, 1996, the Secretary

of Defense shall submit to Congress a report

on the desirability and the feasibility of the

establishment of an insurance program, to

operate at no cost to the Government, to insure individuals who are cadets or midshipmen at one of the service academies or

who hold Reserve Officer Training Corps

scholarships under section 2107 or 2107a of

title 10, United States Code, against the loss

of the value of attendance at such service

academy (in terms of the cost of education

at another institution), or the value of the

scholarship, in cases in which such attendance or such scholarship is terminated by

the Secretary of the military department

concerned because the individual has become, through no fault of the individual,

medically disqualified from military service.

SEC. 516. ACTIVE DUTY OFFICERS DETAILED TO

ROTC DUTY AT SENIOR MILITARY

COLLEGES TO SERVE AS COMMANDANT AND ASSISTANT COMMANDANT OF CADETS AND AS TACTICAL OFFICERS.

(a) IN GENERAL.—Chapter 103 of title 10,

United States Code, is amended by adding at

the end the following new section:

‘‘§ 2111a. Detail of officers to senior military

colleges

‘‘(a) DETAIL OF OFFICERS TO SERVE AS COMMANDANT OR ASSISTANT COMMANDANT OF CADETS.—(1) Upon the request of a senior military college, the Secretary of Defense shall

detail an officer on the active-duty list to

serve as Commandant of Cadets at that college or (in the case of a college with an Assistant Commandant of Cadets) detail an officer on the active-duty list to serve as Assistant Commandant of Cadets at that college (but not both).

‘‘(2) In the case of an officer detailed as

Commandant of Cadets, the officer may,

upon the request of the college, be assigned

from among the Professor of Military

Science, the Professor of Naval Science (if

any), and the Professor of Aerospace Science

(if any) at that college or may be in addition

to any other officer detailed to that college

in support of the program.

‘‘(3) In the case of an officer detailed as Assistant Commandant of Cadets, the officer

may, upon the request of the college, be assigned from among officers otherwise detailed to duty at that college in support of

the program or may be in addition to any

other officer detailed to that college in support of the program.

‘‘(b) DESIGNATION OF OFFICERS AS TACTICAL

OFFICERS.—Upon the request of a senior military college, the Secretary of Defense shall

authorize officers (other than officers covered by subsection (a)) who are detailed to

duty as instructors at that college to act simultaneously as tactical officers (with or

without compensation) for the Corps of Cadets at that college.

‘‘(c) DETAIL OF OFFICERS.—The Secretary

of a military department shall designate officers for detail to the program at a senior

military college in accordance with criteria

provided by the college. An officer may not

be detailed to a senior military college without the approval of that college.

‘‘(d) SENIOR MILITARY COLLEGES.—The senior military colleges are the following:

‘‘(1) Texas A&M University.

‘‘(2) Norwich College.

‘‘(3) The Virginia Military Institute.

‘‘(4) The Citadel.

‘‘(5) Virginia Polytechnic Institute and

State University.

‘‘(6) North Georgia College.’’.

(b) CLERICAL AMENDMENT.—The table of

sections at the beginning of such chapter is

amended by adding at the end the following

new item:

‘‘2111a. Detail of officers to senior military

colleges.’’.

SEC. 517. MOBILIZATION INCOME INSURANCE

PROGRAM FOR MEMBERS OF READY

RESERVE.

(a) ESTABLISHMENT OF PROGRAM.—(1) Subtitle E of title 10, United States Code, is

amended by inserting after chapter 1213 the

following new chapter:

‘‘CHAPTER 1214—READY RESERVE

INCOME INSURANCE

‘‘Sec.

‘‘12521. Definitions.

‘‘12522. Establishment and purpose of program.

‘‘12523. Program administration.

‘‘12524. Eligible insurance companies.

‘‘12525. Persons insured; amount.

‘‘12526. Deductions; payment.

‘‘12527. Payment of insurance; beneficiaries.

‘‘12528. Premiums; accounting to the Secretary.

‘‘12529. Forfeiture.

‘‘§ 12521. Definitions

‘‘In this chapter:

‘‘(1) The term ‘covered service’ means active duty in the armed forces performed by a

member of a reserve component under orders

for more than 30 days which specify that the

member’s service is in support of an operational mission for which members of the reserve components have been ordered to active duty without their consent or in support

of forces activated during a period of war or

during a period of national emergency as declared by the President or Congress.

‘‘(2) The term ‘covered member’ means a

member of the Ready Reserve who is eligible

for and who has not declined coverage under

this chapter.

‘‘(3) The term ‘Secretary’ means the Secretary of Defense.

‘‘(4) The term ‘Department’ means the Department of Defense.

‘‘(5) The term ‘Board’ means the Board of

Actuaries established under section 2006(e)(1)

of this title.

‘‘(6) The term ‘Fund’ means the Department of Defense Ready Reserve Income Insurance Fund.

‘‘§ 12522. Establishment and purpose of program

‘‘(a) ESTABLISHMENT.—There is established

an insurance program for members of the

Ready Reserve to be known as the Department of Defense Ready Reserve Income Insurance Program which shall be administered by the Secretary. There is also established on the books of the Treasury a fund to

be known as the Department of Defense

Ready Reserve Income Insurance Fund,

which shall be administered by the Secretary

of the Treasury. The Fund shall be used for

the accumulation of funds in order to finance

on an actuarially sound basis liabilities of

the Program.

‘‘(b) ASSETS OF FUND.—There shall be deposited into the Fund the following, which

shall constitute the assets of the Fund:

‘‘(1) Amounts paid into the Fund under sections 12526 and 12528 of this title.

‘‘(2) Any amount appropriated to the Fund.

‘‘(3) Any return on investment of the assets

of the Fund.

‘‘(c) BOARD OF ACTUARIES.—The Department of Defense Education Benefits Fund

Board of Actuaries shall have the actuarial

responsibility for the Program.

‘‘(d) DETERMINATION OF CONTRIBUTIONS TO

THE FUND.—(1) Not later than six months

after the Program is established, the Board

shall determine (project) the premium rate

for the coverage to be offered.
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‘‘(2) If at the time of any such valuation

there has been a change in benefits under the

Program that has been made since the last

such valuation and such change in benefits

increases or decreases the present value of

amounts payable from the Fund, the Board

shall determine a premium rate methodology and schedule for the liquidation of any

liability (or actuarial gain to the Fund) created by such change and any previous such

changes so that the present value of the sum

of the scheduled premium payments (or reduction in payments that would otherwise be

made) equals the cumulative increase (or decrease) in the present value of such benefits.

‘‘(3) If at the time of any such valuation

the Board determines that, based upon

changes in actuarial assumptions since the

last valuation, there has been an actuarial

gain or loss to the Fund, the Board shall recommend a premium rate schedule for the

amortization of the cumulative gain or loss

to the Fund created by such change in assumptions and any previous such changes in

assumptions through an increase or decrease

in the payments that would otherwise be

made to the Fund.

‘‘(4) If at any time liabilities exceed assets

of the Fund as a result of a call up, and funds

are unavailable to pay benefits, the Secretary shall seek a special appropriation to

cover the unfunded liability. If appropriations are not made, in any fiscal year, the

Secretary shall limit the value of any benefits conferred by this program to an amount

that does not exceed assets of the Fund expected to accrue at the end of such fiscal

year. Benefits that cannot be paid because of

such limitation of funds shall be deferred and

paid only after funds become available.

‘‘(e) PAYMENTS INTO THE FUND.—(1) Payment into the Fund under this subsection

shall accumulate in accordance with the provisions of section 12526 of this title.

‘‘(2) At the beginning of each fiscal year,

the Secretary shall determine the sum of the

following:

‘‘(A) The projected amount of the premiums to be collected, investment earnings,

and any special appropriations received for

that fiscal year.

‘‘(B) The amount for that year of any cumulative unfunded liability (including any

negative amount or any gain to the Fund)

resulting from payments of benefits.

‘‘(C) The amount for that year (including

any negative amount) of any cumulative actuarial gain or loss to the Fund.

‘‘(f) INVESTMENT OF ASSETS OF FUND.—The

Secretary of the Treasury shall invest such

portion of the Fund as is not in the judgment

of the Secretary of Defense required to meet

current liabilities. Such investments shall be

in public debt securities with maturities

suitable to the needs of the Fund, as determined by the Secretary of Defense, and bearing interest at rates determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding

marketable obligations of the United States

of comparable maturities. The income on

such investments shall be credited to and

form a part of the Fund.

‘‘§ 12523. Program administration

‘‘The insurance program provided for in

this chapter shall be administered by the

Secretary, who is authorized to adopt such

rules, procedures, and policies as in the Secretary’s judgment may be necessary or appropriate to carry out the purposes of this

chapter.

‘‘§ 12524. Eligible insurance companies

‘‘(a) The Secretary may, without regard to

section 3709 of the Revised Statutes (41

U.S.C. 5), purchase from one or more insurance companies a policy or policies of group

insurance to offer benefits to all members.

Each such insurance company shall (1) be licensed to issue insurance in each of the 50

States and in the District of Columbia, and

(2) as of the most recent December 31 for

which information is available to the Secretary, have in effect at least 1 percent of

the total amount of insurance which all such

insurance companies have in effect in the

United States.

‘‘(b) Any insurance company which issues a

policy under subsection (a) shall establish an

administrative office at a place and under a

name designated by the Secretary.

‘‘(c) The Secretary may use the facilities

and services of any insurance company

issuing any policy under this chapter and

may designate one such company as the representative of the other companies and contract to pay a reasonable fee to the designated company for its services.

‘‘(d) The Secretary shall arrange with the

insurance company issuing any policy under

this chapter to reinsure, under conditions

approved by the Secretary, portions of the

total amount of insurance under such policy

or policies with such other insurance companies (which meet qualifying criteria set forth

by the Secretary) as may elect to participate

in such reinsurance.

‘‘(e) The Secretary may at any time discontinue any policy purchased under this

section.

‘‘§ 12525. Persons insured; amount

‘‘(a)(1) Any policy of insurance provided

under this chapter shall insure each covered

member of the Ready Reserve against covered service. Any covered member ordered

into covered service shall be entitled to payment of a basic benefit of $1,000 for each

month of covered service which is in excess

of the initial 30 days of covered service, unless the member has elected in writing (A)

not to be insured under this chapter, (B) to

be insured for a lower benefit of half the

basic benefit, or (C) to be insured in a greater amount, in increments of $500, above the

basic benefit not to exceed $5,000 per month

of covered service (adjusted pursuant to

paragraph (2)), following the initial 30 days

of covered service, except that no member

may be paid under this chapter for more

than 12 months of covered service served during any period of 18 months. Payment for

any period of covered service less than one

month shall be at the rate of one-thirtieth of

the monthly rate for each day served. Payment shall be based solely on insured status

and on the period of covered service served;

no proof of lost income or expenses incurred

as a result of covered service shall be required.

‘‘(2) The Secretary shall determine annually the effect of inflation on the benefits

and establish an adjustment rate which ensures that there is no loss of value in the

benefits payable to a member. Adjustments

shall apply to benefits for members with existing coverage and for newly eligible members. Such adjustments for inflation will be

rounded to the nearest $10 increment.

‘‘(3) Members of the Ready Reserve who,

under regulations prescribed by the Secretary of Defense in coordination with the

Secretary of Transportation, are serving on

active duty (or full-time National Guard

duty) shall not be eligible to purchase insurance under this chapter. Additional categories of members of the Ready Reserve, in

the discretion of the Secretary of Defense,

may also be excluded from eligibility to purchase insurance under this chapter.

‘‘(b) Promptly following the effective date

of this chapter, the Secretary shall make a

one-time offer of insurance coverage under

this chapter to all persons who were members of the Ready Reserve of an armed force

on that date and who remain members of the

Ready Reserve. Members of the Ready Reserve, first becoming eligible for coverage

after the effective date of this chapter, shall

be automatically enrolled for the basic benefit unless declined, or another amount is

elected under subsection (a)(1).

‘‘(c) Members shall be given a written explanation of the insurance and be advised

that they have the right (1) to decline coverage altogether, (2) to select half the basic

benefit, or (3) to select increased benefits.

The right of a member of the Ready Reserve

to decline, increase, or decrease coverage

shall be exercised within 30 days of first

being eligible for coverage.

‘‘§ 12526. Deductions; payment

‘‘(a)(1) During any period in which a member insured under this chapter is participating in paid reserve training or other duty,

there shall be deducted each month from the

member’s basic pay or compensation for inactive duty training an amount determined

by the Secretary to be the same for all members of the Ready Reserve who subscribe to

the same amount of insurance as the share of

the cost attributable to insuring such member. As provided in section 12525 of this title,

the Secretary may establish graduated

monthly premiums for an amount of insurance less than the basic amount of coverage

or in excess of the basic coverage amount.

‘‘(2) Any member insured under this chapter who is not in a pay status in which the

member receives pay on a monthly basis

shall pay the cost attributable to insuring

such member in accordance with regulations

to be adopted by the Secretary.

‘‘(b) An amount equal to the first amount

due on insurance under this chapter may be

advanced from current appropriations for

military pay to any such member, which

amount shall constitute a lien upon the pay

for military service accruing to the person to

whom such advance was made, and shall be

collected therefrom if not otherwise paid. No

disbursing or certifying officer shall be responsible for any loss by reason of such advance.

‘‘(c) The sums withheld from the basic or

other pay of insured members or deposited

by insured members, together with the income derived from any dividends or premium

rate adjustments, shall be deposited to the

credit of the Fund. All premium payments

for insurance issued under this chapter shall

be deposited into the Fund.

‘‘§ 12527. Payment of insurance; beneficiaries

‘‘(a) A member insured under this chapter

who serves in excess of 30 days of covered

service shall be paid the amount to which

such member is entitled on a monthly basis,

with the first payment due no later than one

month following the 30th day of covered

service. The Secretary shall adopt regulations prescribing the manner in which payments shall be made, either to the member

or, in accordance with subsection (d), to a

designated person or entity.

‘‘(b) A member may designate in writing

another person (including a spouse, parent,

or other person with an insurable interest as

determined by the Secretary by regulation)

to whom the insurance payments to which

such member is entitled are to be paid. Such

designation may be made to a bank or other

financial institution, to the credit of a designated person. In the latter event, insurance payments to which a member becomes

entitled shall be paid to the designated person, bank or financial institution.

‘‘(c) Any amount of insurance payable

under this chapter on account of a deceased

member’s period of covered service shall be

paid, upon the establishment of a valid claim

therefor, to the beneficiary or beneficiaries

which the former member had designated in

writing. If no such designation has been

made, the amount shall be payable in accordance with the laws of the State of the member’s domicile.
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‘‘§ 12528. Premiums; accounting to the Secretary

‘‘(a) Each policy of insurance provided by

the Secretary under this chapter shall include for the first policy years a fixed monetary premium per $1,000 of insurance, based,

in consultation with the Board, on the best

available estimate of risk and financial exposure, levels of subscription by members, and

other relevant factors. Different premium

levels may be established for different

amounts of coverage, provided that the premium rate established for the basic benefit

shall not be at a premium rate higher than

the premium rate set for increased coverages.

‘‘(b) Each policy shall include provisions

whereby the premium rate for the first policy year shall be continued for subsequent

policy years (but the premium amount may

be increased to account or inflation-adjusted

benefit increases). The rate may be readjusted for any subsequent year with the consent of the Secretary based on prior consultation with the Board of Actuaries.

‘‘§ 12529. Forfeiture

‘‘Any person found guilty of mutiny, treason, spying, or desertion, or who refuses to

perform service in the armed forces or refuses to wear the uniform of any of the

armed forces, shall forfeit all rights to insurance under this chapter.’’.

(2) The tables of chapters at the beginning

of subtitle E, and at the beginning of part II

of subtitle E, of title 10, United States Code,

are amended by inserting after the item relating to chapter 1213 the following new

item:

‘‘1214. Ready Reserve Income Insurance ............................................. 12521’’.

(b) EFFECTIVE DATE.—The insurance program provided for in chapter 1218 of title 10,

United States Code, as added by subsection

(a), and the deductions and contributions for

that program shall take effect on a date designated by the Secretary. Such date may not

be later than September 30, 1996. The Secretary shall publish in the Federal Register

notice of such effective date.

SEC. 518. DELAY IN REORGANIZATION OF ARMY

ROTC REGIONAL HEADQUARTERS

STRUCTURE.

(a) DELAY.—The Secretary of the Army

may not take any action to reorganize the

regional headquarters and basic camp structure of the Reserve Officers Training Corps

program of the Army until six months after

the date on which the report required by subsection (d) is submitted.

(b) COST-BENEFIT ANALYSIS.—The Secretary of the Army shall conduct a comparative cost-benefit analysis of various options

for the reorganization of the regional headquarters and basic camp structure of the

Army ROTC program. As part of such analysis, the Secretary shall measure each reorganization option considered against a common set of criteria.

(c) SELECTION OF REORGANIZATION OPTION

FOR IMPLEMENTATION.—Based on the findings

resulting from the cost-benefit analysis

under subsection (b) and such other factors

as the Secretary considers appropriate, the

Secretary shall select one reorganization option for implementation. The Secretary may

select an option for implementation only if

the Secretary finds that the cost-benefit

analysis and other factors considered clearly

demonstrate that such option, better than

any other option considered—

(1) provides the structure to meet projected mission requirements;

(2) achieves the most significant personnel

and cost savings;

(3) uses existing basic and advanced camp

facilities to the maximum extent possible;

(4) minimizes additional military construction costs; and

(5) makes maximum use of the reserve

components to support basic and advanced

camp operations, thereby minimizing the effect of those operations on active duty units.

(d) REPORT.—Not later than 60 days after

the date of the enactment of this Act, the

Secretary of the Army shall submit to the

Committee on Armed Services of the Senate

and the Committee on National Security of

the House of Representatives a report describing the reorganization option selected

under subsection (c). The report shall include

the results of the cost-benefit analysis under

subsection (b) and a detailed rationale for

the reorganization option selected.

SEC. 519. ACTIVE DUTY ASSOCIATE UNIT RESPONSIBILITY.

(a) ASSOCIATE UNITS.—Subsection (a) of

section 1131 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law

102–484; 106 Stat. 2540) is amended to read as

follows:

‘‘(a) ASSOCIATE UNITS.—The Secretary of

the Army shall require—

‘‘(1) that each ground combat maneuver

brigade of the Army National Guard that (as

determined by the Secretary) is essential for

the execution of the National Military Strategy be associated with an active-duty combat unit; and

‘‘(2) that combat support and combat service support units of the Army Selected Reserve that (as determined by the Secretary)

are essential for the execution of the National Military Strategy be associated with

active-duty units.’’.

(b) RESPONSIBILITIES.—Subsection (b) of

such section is amended—

(1) by striking out ‘‘National Guard combat unit’’ in the matter preceding paragraph

(1) and inserting in lieu thereof ‘‘National

Guard unit or Army Selected Reserve unit

that (as determined by the Secretary under

subsection (a)) is essential for the execution

of the National Military Strategy’’; and

(2) by striking out ‘‘of the National Guard

unit’’ in paragraphs (1), (2), (3), and (4) and

inserting in lieu thereof ‘‘of that unit’’.

Subtitle C—Matters Relating to Force Levels

SEC. 521. FLOOR ON END STRENGTHS.

(a) IN GENERAL.—Chapter 39 of title 10,

United States Code, is amended by adding at

the end the following new section:

‘‘§ 691. Permanent end strength levels to support two major regional contingencies

‘‘(a) The end strengths specified in subsection (b) are the minimum strengths necessary to enable the armed forces to fulfill a

national defense strategy calling for the

United States to be able to successfully conduct two nearly simultaneous major regional

contingencies.

‘‘(b) Unless otherwise provided by law, the

number of members of the armed forces

(other than the Coast Guard) on active duty

at the end of any fiscal year shall be not less

than the following:

‘‘(1) For the Army, 495,000.

‘‘(2) For the Navy, 395,000.

‘‘(3) For the Marine Corps, 174,000.

‘‘(4) For the Air Force, 381,000.

‘‘(c) No funds appropriated to the Department of Defense may be used to reduce the

active duty end strengths for the armed

forces below the levels specified in subsection (b) unless the Secretary of Defense

submits to Congress notice of the proposed

lower end strength levels and a justification

for those levels. No action may then be

taken to reduce such end strengths below the

levels specified in subsection (b) until the

end of the six-month period beginning on the

date of the submission of such notification

to Congress.

‘‘(d) The number of members of the armed

forces on active duty shall be counted for

purposes of this section in the same manner

as applies under section 115(a)(1) of this

title.’’.

(b) CLERICAL AMENDMENT.—The table of

sections at the beginning of such chapter is

amended by adding at the end the following

new item:

‘‘691. Permanent end strength levels to support two major regional contingencies.’’.

SEC. 522. ARMY OFFICER MANNING LEVELS.

(a) IN GENERAL.—(1) Chapter 331 of title 10,

United States Code, is amended by inserting

after the table of sections the following new

section:

‘‘§ 3201. Officers on active duty: minimum

strength based on requirements

‘‘(a) The Secretary of the Army shall ensure that (beginning with fiscal year 1999)

the strength at the end of each fiscal year of

officers on active duty is sufficient to enable

the Army to meet at least 90 percent of the

programmed manpower structure for the active component of the Army.

‘‘(b) The number of officers on active duty

shall be counted for purposes of this section

in the same manner as applies under section

115(a)(1) of this title.

‘‘(c) In this section:

‘‘(1) The term ‘programmed manpower

structure’ means the aggregation of billets

describing the full manpower requirements

for units and organizations in the programmed force structure.

‘‘(2) The term ‘programmed force structure’ means the set of units and organizations that exist in the current year and that

is planned to exist in each future year under

the then-current Future-Years Defense Program.’’.

(2) The table of sections at the beginning of

such chapter is amended by inserting after

‘‘Sec.’’ the following new item:

‘‘3201. Officers on active duty: minimum

strength based on requirements.’’.

(b) ASSISTANCE IN ACCOMPLISHING REQUIREMENT.—The Secretary of Defense shall provide to the Army sufficient personnel and financial resources (including resources from

outside Army accounts) to enable the Army

to meet the requirement specified in section

3201 of title 10, United States Code, as added

by subsection (a).

SEC. 523. COMPTROLLER GENERAL REVIEW OF

PROPOSED ARMY END STRENGTH

ALLOCATIONS.

(a) IN GENERAL.—During fiscal years 1996

through 2001, the Comptroller General of the

United States shall analyze the plans of the

Secretary of the Army for the allocation of

assigned active component end strengths for

the Army through the requirements process

known as Total Army Analysis 2003 and

through any subsequent similar requirements process of the Army that is conducted

before 2002. The Comptroller General’s analysis shall consider whether the proposed active component end strengths and planned

allocation of forces for that period will be

sufficient to implement the national military strategy. In monitoring those plans, the

Comptroller General shall determine the extent to which the Army will be able during

that period—

(1) to man fully the combat force based on

the projected active component Army end

strength for each of fiscal years 1996 through

2001;

(2) to meet the support requirements for

the force and strategy specified in the report

of the Bottom-Up Review, including requirements for operations other than war; and

(3) to streamline further Army infrastructure in order to eliminate duplication and inefficiencies and replace active duty per-
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sonnel in overhead positions, whenever practicable, with civilian or reserve personnel.

(b) ACCESS TO DOCUMENTS, ETC.—The Secretary of the Army shall ensure that the

Comptroller General is provided access, on a

timely basis and in accordance with the

needs of the Comptroller General, to all

analyses, models, memoranda, reports, and

other documents prepared or used in connection with the requirements process of the

Army known as Total Army Analysis 2003

and any subsequent similar requirements

process of the Army that is conducted before

2002.

(c) ANNUAL REPORT.—Not later than March

1 of each year through 2002, the Comptroller

General shall submit to Congress a report on

the findings and conclusions of the Comptroller General under this section.

SEC. 524. MANNING STATUS OF HIGHLY

DEPLOYABLE SUPPORT UNITS.

Not later than September 30, 1996, the Secretary of each military department shall

submit to the Committee on Armed Services

of the Senate and the Committee on National Security of the House of Representatives a report on the units under that Secretary’s jurisdiction that (as determined by

the Secretary) are high-priority support

units that would deploy early in a contingency operation or other crisis and that are,

as a matter of policy, managed at less than

100 percent of their authorized strengths.

The Secretary shall include in the report the

number of such high-priority support units

(shown by type of unit), the level of manning

within such high-priority support units, and

either the justification for manning of less

than 100 percent or the status of corrective

action.

SEC. 525. SENSE OF CONGRESS CONCERNING

PERSONNEL TEMPO RATES.

(a) FINDINGS.—Congress makes the following findings:

(1) Excessively high personnel tempo rates

for members of the Armed Forces resulting

from high-tempo unit operations degrades

unit readiness and morale and eventually

can be expected to adversely affect unit retention.

(2) The Armed Forces have begun to develop methods to measure and manage personnel tempo rates.

(3) The Armed Forces have attempted to

reduce operations and personnel tempo for

heavily tasked units by employing alternative capabilities and reducing tasking requirements.

(b) SENSE OF CONGRESS.—The Secretary of

Defense should continue to enhance the

knowledge within the Armed Forces of personnel tempo and to improve the techniques

by which personnel tempo is managed with a

view toward establishing and achieving reasonable personnel tempo standards for all

personnel, regardless of unit or assignment.

Subtitle D—Amendments to the Uniform

Code of Military Justice

SEC. 541. REFERENCES TO UNIFORM CODE OF

MILITARY JUSTICE.

Except as otherwise expressly provided,

whenever in this subtitle an amendment or

repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to

be made to a section or other provision of

chapter 47 of title 10, United States Code (the

Uniform Code of Military Justice).

SEC. 542. FORFEITURE OF PAY AND ALLOWANCES

DURING CONFINEMENT BY SENTENCE OF COURT-MARTIAL.

(a) FORFEITURE.—(1) Subchapter VIII is

amended by inserting after section 857 (article 57) the following new section (article):

‘‘§ 857a. Art. 57a. Sentences: forfeiture of pay

and allowances during confinement by sentence of court-martial

‘‘(a) A court-martial sentence, as announced by the sentencing authority, that

includes confinement shall result in the forfeiture of pay and allowances due that member during the period of the confinement or

while on parole. The forfeiture shall be effective on the date on which the sentence is announced. The percentage of pay and allowances forfeited shall be the maximum percentage that the court-martial could have

directed as part of the sentence.

‘‘(b) If the sentence of a member who forfeits pay and allowances under subsection (a)

is set aside or disapproved or, as finally approved, does not provide for confinement, the

member shall be paid the pay and allowances

which the member would have been paid, but

for the forfeiture, for the period during

which the forfeiture was in effect.’’.

(2) The table of sections at the beginning of

subchapter VIII is amended by inserting

after the item relating to section 857 (article

57) the following new item:

‘‘857a. 57a. Sentences: forfeiture of pay and

allowances during confinement

by sentence of court-martial.’’.

(b) ACTION BY THE CONVENING AUTHORITY.—

Section 860 (article 60) is amended—

(1) by redesignating subsections (d) and (e)

as subsections (e) and (f) respectively; and

(2) by inserting after subsection (c) the following new subsection:

‘‘(d) In a case involving an accused who has

dependents and in which the sentence, as approved, includes confinement, the convening

authority or other person taking action

under this section may waive some or all of

the forfeiture of pay and allowances otherwise required by section 857a of this title (article 57a). Any amount of pay and allowances

payable only by reason of such a waiver shall

be paid, as the convening authority or other

person taking action under this section directs, to the dependents of the accused.’’

(c) CONFORMING AMENDMENT.—(1) Section

804 of title 37, United States Code, is repealed.

(2) The table of sections at the beginning of

chapter 15 of such title is amended by striking out the item relating to section 804.

SEC. 543. REFUSAL TO TESTIFY BEFORE COURTMARTIAL.

Section 847(b) (article 47(b)) is amended by

striking out ‘‘shall be’’ in the second sentence and all that follows inserting in lieu

thereof ‘‘shall be fined or imprisoned, or

both, at the court’s discretion.’’.

SEC. 544. FLIGHT FROM APPREHENSION.

(a) IN GENERAL.—Section 895 (article 95) is

amended to read as follows:

‘‘§ 895. Art. 95. Resistance, flight, breach of arrest, and escape

‘‘Any person subject to this chapter who—

‘‘(1) resists apprehension;

‘‘(2) flees from apprehension;

‘‘(3) breaks arrest; or

‘‘(4) escapes from custody or confinement;

shall be punished as a court-martial may direct.’’.

(b) CLERICAL AMENDMENT.—The item relating to section 895 (article 95) in the table of

sections at the beginning of subchapter X is

amended to read as follows:

‘‘895. 95. Resistance, flight, breach of arrest,

and escape.’’.

SEC. 545. CARNAL KNOWLEDGE.

(a) GENDER NEUTRALITY.—Subsection (b) of

section 920 (article 120) is amended to read as

follows:

‘‘(b) Any person subject to this chapter

who, under circumstances not amounting to

rape, commits an act of sexual intercourse

with a person—

‘‘(1) who is not that person’s spouse; and

‘‘(2) who has not attained the age of sixteen years;

is guilty of carnal knowledge and shall be

punished as a court-martial may direct.’’.

(b) MISTAKE OF FACT.—Such section (article) is further amended by adding at the end

the following new subsection:

‘‘(d) In a prosecution under subsection (b),

it is a defense that—

‘‘(1) the person with whom the accused

committed the act of sexual intercourse had

at the time of the alleged offense attained

the age of twelve years; and

‘‘(2) the accused reasonably believed that

that person had at the time of the alleged offense attained the age of sixteen years.’’.

SEC. 546. TIME AFTER ACCESSION FOR INITIAL

INSTRUCTION IN THE UNIFORM

CODE OF MILITARY JUSTICE.

Section 937(a)(1) (article 137(a)(1)) is

amended by striking out ‘‘within six days’’

and inserting in lieu thereof ‘‘within fourteen days’’.

SEC. 547. PERSONS WHO MAY APPEAR BEFORE

THE UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES.

Section 944 (article 144) is amended by adding at the end the following new sentence:

‘‘However, no person may appear before the

court (whether on a brief or in person) other

than an attorney who is admitted to practice

before the court or who is authorized to appear by the court in a particular case (except

that the court may permit a third-year law

student certified under a State rule for practical training of law students to appear as an

amicus curiae).’’.

SEC. 548. DISCRETIONARY REPRESENTATION BY

GOVERNMENT APPELLATE DEFENSE

COUNSEL IN PETITIONING SUPREME

COURT FOR WRIT OF CERTIORARI.

Section 870 (article 70) is amended—

(1) in subsection (c), by inserting ‘‘(except

as provided in subsection (f))’’ before ‘‘the

Supreme Court’’; and

(2) by adding at the end the following new

subsection:

‘‘(f) Representation of the accused by appellate defense counsel in preparation of a

petition to the Supreme Court for a writ of

certiorari shall be at the discretion of the

appellate defense counsel.’’.

SEC. 549. REPEAL OF TERMINATION OF AUTHORITY FOR CHIEF JUSTICE OF UNITED

STATES TO DESIGNATE ARTICLE III

JUDGES FOR TEMPORARY SERVICE

ON COURT OF APPEALS FOR THE

ARMED FORCES.

Subsection (i) of section 1301 of the National Defense Authorization Act for Fiscal

Years 1990 and 1991 (Public Law 101–189; 10

U.S.C. 942 note) is repealed.

SEC. 550. TECHNICAL AMENDMENT.

Section 866(f) (article 66(f)) is amended by

striking out ‘‘Courts of Military Review’’

both places it appears and inserting in lieu

thereof ‘‘Courts of Criminal Appeals’’.

Subtitle E—Other Matters

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

(a) ENLISTED SERVICE CREDIT.—Section 972

of title 10, United States Code, is amended—

(1) by inserting ‘‘(a) ENLISTED MEMBERS

REQUIRED TO MAKE UP TIME LOST.—’’ before

‘‘An enlisted member’’;

(2) by striking out paragraphs (3) and (4)

and inserting in lieu thereof the following:

‘‘(3) is confined by military or civilian authorities for more than one day before, during, or after trial; or’’; and

(3) by redesignating paragraph (5) as paragraph (4).

(b) OFFICER SERVICE CREDIT.—Such section

is further amended by adding at the end the

following:

‘‘(b) OFFICERS NOT ALLOWED SERVICE CREDIT FOR TIME LOST.—In the case of an officer

of an armed force who after the date of the

enactment of the National Defense Authorization Act for Fiscal Year 1996—

‘‘(1) deserts;
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‘‘(2) is absent from his organization, station, or duty for more than one day without

proper authority, as determined by competent authority;

‘‘(3) is confined by military or civilian authorities for more than one day before, during, or after trial; or

‘‘(4) is unable for more than one day, as determined by competent authority, to perform his duties because of intemperate use of

drugs or alcoholic liquor, or because of disease or injury resulting from his misconduct;

the period of such desertion, absence, confinement, or inability to perform duties may

not be counted in computing, for any purpose other than basic pay under section 205

of title 37, the officer’s length of service.’’.

(c) CLERICAL AMENDMENTS.—(1) The heading of such section is amended to read as follows:

‘‘§ 972. Members: effect of time lost

(2) The item relating to section 972 in the

table of sections at the beginning of chapter

49 of such title is amended to read as follows:

‘‘972. Members: effect of time lost.’’.

(d) CONFORMING AMENDMENTS.—(1) Section

1405(c) is amended—

(A) by striking out ‘‘MADE UP.—Time’’ and

inserting in lieu thereof ‘‘MADE UP OR EXCLUDED.—(1) Time’’;

(B) by striking out ‘‘section 972’’ and inserting in lieu thereof ‘‘section 972(a)’’;

(C) by inserting after ‘‘of this title’’ the

following: ‘‘, or required to be made up by an

enlisted member of the Navy, Marine Corps,

or Coast Guard under that section with respect to a period of time after the date of the

enactment of the National Defense Authorization Act for Fiscal Year 1995,’’; and

(D) by adding at the end the following:

‘‘(2) Section 972(b) of this title excludes

from computation of an officer’s years of

service for purposes of this section any time

identified with respect to that officer under

that section.’’.

(2) Chapter 367 of such title is amended—

(A) in section 3925(b), by striking out ‘‘section 972’’ and inserting in lieu thereof ‘‘section 972(a)’’; and

(B) by adding at the end of section 3926 the

following new subsection:

‘‘(e) Section 972(b) of this title excludes

from computation of an officer’s years of

service for purposes of this section any time

identified with respect to that officer under

that section.’’.

(3)(A) Chapter 571 of such title is amended

by inserting after section 6327 the following

new section:

‘‘§ 6328. Computation of years of service: voluntary retirement

‘‘(a) ENLISTED MEMBERS.—Time required to

be made up under section 972(a) of this title

after the date of the enactment of this section may not be counted in computing years

of service under this chapter.

‘‘(b) OFFICERS.—Section 972(b) of this title

excludes from computation of an officer’s

years of service for purposes of this chapter

any time identified with respect to that officer under that section.’’.

(B) The table of sections at the beginning

of such chapter is amended by inserting after

the item relating to section 6327 the following new item:

‘‘6328. Computation of years of service: voluntary retirement.’’.

(4) Chapter 867 of such title is amended—

(A) in section 8925(b), by striking out ‘‘section 972’’ and inserting in lieu thereof ‘‘section 972(a)’’; and

(B) by adding at the end of section 8926 the

following new subsection:

‘‘(d) Section 972(b) of this title excludes

from computation of an officer’s years of

service for purposes of this section any time

identified with respect to that officer under

that section.’’.

(e) EFFECTIVE DATE AND APPLICABILITY.—

The amendments made by this section shall

take effect on the date of the enactment of

this Act and shall apply to any period of

time covered by section 972 of title 10, United

States Code, that occurs after that date.

SEC. 552. EXTENSION OF EXPIRING PERSONNEL

AUTHORITIES.

(a) GRADE DETERMINATION AUTHORITY FOR

CERTAIN RESERVE MEDICAL OFFICERS.—Sections 3359(b) and 8359(b) of title 10, United

States Code, are amended by striking out

‘‘September 30, 1995’’ and inserting in lieu

thereof ‘‘September 30, 1996’’.

(n) PROMOTION AUTHORITY FOR CERTAIN RESERVE OFFICERS SERVING ON ACTIVE DUTY.—

Sections 3380(d) and 8380(d) of such title are

amended by striking out ‘‘September 30,

1995’’ and inserting in lieu thereof ‘‘September 30, 1996’’.

(c) YEARS OF SERVICE FOR MANDATORY

TRANSFER TO THE RETIRED RESERVE.—Section 1016(d) of the Department of Defense Authorization Act, 1984 (10 U.S.C. 3360 note), is

amended by striking out ‘‘September 30,

1995’’ and inserting in lieu thereof ‘‘September 30, 1996’’.

(d) AUTHORITY FOR TEMPORARY PROMOTIONS

OF CERTAIN NAVY LIEUTENANTS.—Section 5721

of title 10, United States Code, is amended by

striking out ‘‘September 30, 1995’’ and inserting in lieu thereof ‘‘September 30, 1998’’.

SEC. 553. INCREASE IN EDUCATIONAL ASSISTANCE ALLOWANCE WITH RESPECT

TO SKILLS OR SPECIALTIES FOR

WHICH THERE IS A CRITICAL

SHORTAGE OF PERSONNEL.

Section 16131 of title 10, United States

Code, is amended by adding at the end the

following new subsection:

‘‘(j)(1) In the case of a person who has a

skill or specialty designated by the Secretary concerned as a skill or specialty in

which there is a critical shortage of personnel or for which it is difficult to recruit

or, in the case of critical units, retain personnel, the Secretary concerned may increase the rate of the educational assistance

allowance applicable to that person to such

rate in excess of the rate prescribed under

subparagraphs (A) through (D) of subsection

(b)(1) as the Secretary of Defense considers

appropriate, but the amount of any such increase may not exceed $350 per month.

‘‘(2) The authority provided by paragraph

(1) shall be exercised by the Secretaries of

the military departments under regulations

prescribed by the Secretary of Defense.’’.

SEC. 554. AMENDMENTS TO EDUCATION LOAN REPAYMENT PROGRAMS.

(a) GENERAL EDUCATION LOAN REPAYMENT

PROGRAM.—Section 2171(a)(1) of title 10,

United States Code, is amended—

(1) by striking out ‘‘or’’ at the end of subparagraph (A);

(2) by redesignating subparagraph (B) as

subparagraph (C); and

(3) by inserting after subparagraph (A) the

following new subparagraph (B):

‘‘(B) any loan made under part D of such

title (the William D. Ford Federal Direct

Loan Program, 20 U.S.C. 1087a et seq.); or’’.

(b) EDUCATION LOAN REPAYMENT PROGRAM

FOR ENLISTED MEMBERS OF SELECTED RESERVE WITH CRITICAL SPECIALTIES.—Section

16301(a)(1) of such title is amended—

(1) by striking out ‘‘or’’ at the end of subparagraph (A);

(2) by redesignating subparagraph (B) as

subparagraph (C); and

(3) by inserting after subparagraph (A) the

following new subparagraph (B):

‘‘(B) any loan made under part D of such

title (the William D. Ford Federal Direct

Loan Program, 20 U.S.C. 1087a et seq.); or’’.

(c) EDUCATION LOAN REPAYMENT PROGRAM

FOR HEALTH PROFESSIONS OFFICERS SERVING

IN SELECTED RESERVE WITH WARTIME CRITICAL MEDICAL SKILL SHORTAGES.—Section

16302(a) of such title is amended—

(1) by redesignating paragraphs (2) through

(4) as paragraphs (3) through (5) respectively;

and

(2) by inserting after paragraph (1) the following new paragraph (2):

‘‘(2) any loan made under part D of such

title (the William D. Ford Federal Direct

Loan Program, 20 U.S.C. 1087a et seq.); or’’.

SEC. 555. RECOGNITION BY STATES OF LIVING

WILLS OF MEMBERS, CERTAIN

FORMER MEMBERS, AND THEIR DEPENDENTS.

(a) RECOGNITION BY STATES REQUIRED.—(1)

Chapter 53 of title 10, United States Code, is

amended by inserting after section 1044b the

following new section:

‘‘§ 1044c. Military advance medical directives:

requirement for recognition by States

‘‘(a) INSTRUMENTS TO BE GIVEN LEGAL EFFECT WITHOUT REGARD TO STATE LAW.—A

military advance medical directive—

‘‘(1) is exempt from any requirement of

form, substance, formality, or recording that

is provided for advance medical directives

under the laws of a State; and

‘‘(2) shall be given the same legal effect as

an advance medical directive prepared and

executed in accordance with the laws of the

State concerned.

‘‘(b) MILITARY ADVANCE MEDICAL DIRECTIVES.—For the purposes of this section, a

military advance medical directive is any

written declaration regarding future medical

treatment that—

‘‘(1) is executed by a person eligible for

legal assistance under section 1044(a) of this

title or regulations of the Secretary concerned; and

‘‘(2) is intended—

‘‘(A) to provide, withdraw, or withhold lifeprolonging procedures, including hydration

and sustenance, in the event of a terminal

condition or persistent vegetative state of

the declarant; or

‘‘(B) to appoint another person to make

health care decisions for the declarant under

circumstances stated in the declaration if

the declarant is determined to be incapable

of making informed health care decisions.

‘‘(c) STATEMENT TO BE INCLUDED.—Under

regulations prescribed by the Secretary concerned, a written declaration described in

subsection (b) shall contain a statement that

clearly indicates the purpose of the declaration to serve as the military advance medical directive of the declarant. However, the

failure of a military advance medical directive to include such a statement shall not be

construed to negate the legal effect of the directive under subsection (a).

‘‘(d) STATE DEFINED.—In this section, the

term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, and

a possession of the United States.’’.

(2) The table of sections at the beginning of

such chapter is amended by inserting after

the item relating to section 1044b the following new item:

‘‘1044c. Military advance medical directives:

requirement for recognition by

States.’’.

(b) EFFECTIVE DATE.—Section 1044c of title

10, United States Code, as added by subsection (a), shall apply with respect to any

military advance medical directive described

in such section declared before, on, or after

the date of the enactment of this Act.

SEC. 556. TRANSITIONAL COMPENSATION FOR

DEPENDENTS OF MEMBERS OF THE

ARMED FORCES SEPARATED FOR

DEPENDENT ABUSE.

(a) MANDATORY PROGRAM.—Subsection (a)

of section 1059 of title 10, United States Code,

is amended by striking out ‘‘may each estab-
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lish a program’’ and inserting in lieu thereof

‘‘shall each establish a program’’.

(b) PAYMENT TO DEPENDENTS OF MEMBERS

NOT DISCHARGED.—Subsection (d) of such

section is amended by striking out ‘‘of a separation from active duty as’’ in the first sentence.

SEC. 557. ARMY RANGER TRAINING.

(a) IN GENERAL.—(1) Chapter 401 of title 10,

United States Code, is amended by inserting

after section 4302 the following new section:

‘‘§ 4303. Army Ranger Training: instructor

staffing; safety

‘‘(a) LEVELS OF PERSONNEL ASSIGNED TO BE

NOT LESS THAN NUMBER REQUIRED.—(1) The

Secretary of the Army shall ensure that at

all times the number of officers, and the

number of enlisted members, permanently

assigned to the Army Ranger Training Brigade (or other organizational element of the

Army primarily responsible for ranger student training) are not less than the required

manning spaces for that brigade.

‘‘(2) If at any time the number of officers,

or the number of enlisted members, permanently assigned to the Ranger Training Brigade is less than the required manning

spaces for officers, or for enlisted members,

as the case may be, for the Brigade, the Secretary of the Army shall submit to Congress

a notice of such shortage, together with a

statement of the reasons for the shortage

and of the expected date when the number

assigned will be not less than the required

manning spaces, in accordance with paragraph (1).

‘‘(b) REQUIRED MANNING SPACES.—(1) The

Secretary of the Army may not (except as

provided in paragraph (3)) reduce the required manning spaces for the Ranger Training Brigade below the baseline required manning spaces.

‘‘(2) In this section:

‘‘(A) The term ‘required manning spaces’

means the number of personnel spaces for officers, and the number of personnel spaces

for enlisted members, that are designated in

Army authorization documents as the number required to accomplish the missions of a

particular unit or organization.

‘‘(B) The term ‘baseline required manning

spaces’ means the required manning spaces

for the Army Ranger Training Brigade as of

February 10, 1995, of 94 officers and 658 enlisted members.

‘‘(3) The Secretary may (subject to paragraph (4)) make reductions in required manning spaces for the Army Ranger Training

Brigade from the baseline required manning

spaces if—

‘‘(A) reductions in ranger student training

loads result in decreased instructor workload; and

‘‘(B) one or more of the three major phases

of the Ranger Course (conducted at Fort

Benning, Georgia, at the Mountain Ranger

Camp, and in Florida) is eliminated.

‘‘(4) Before making a reduction authorized

by paragraph (3) in required manning spaces,

the Secretary of the Army shall submit to

Congress a report on the proposed reduction.

Such a reduction may not be made unless

the report includes a certification by the

Secretary that the reduction will not reduce

the ability of the commander of the Ranger

Training Brigade to conduct training safely.

The report shall include a description of the

reduction (including specification of the

number of officers and the number of enlisted members that will be considered to be

required to carry out the missions of the

Army Ranger Training Brigade after the reduction) and shall set forth the rationale of

the Secretary for the reduction.

‘‘(c) TRAINING SAFETY CELLS.—(1) The Secretary of the Army shall establish and maintain an organizational entity known as a

‘safety cell’ as part of the organizational elements of the Army responsible for conducting each of the three major phases of the

Ranger Course. The safety cell in each different geographic area of Ranger Course

training shall be comprised of personnel who

have sufficient continuity and experience in

that geographic area of such training to be

knowledgeable of the local conditions yearround, including conditions of terrain,

weather, water, and climate and other conditions and the potential effect on those conditions on Ranger student training and safety.

‘‘(2) Members of each safety cell shall be

assigned in sufficient numbers to serve as advisers to the officers in charge of the major

phase of Ranger training and shall assist

those officers in making informed daily ‘go’

and ‘no-go’ decisions regarding training in

light of all relevant conditions, including

conditions of terrain, weather, water, and

climate and other conditions.’’.

(2) The table of sections at the beginning of

such chapter is amended by inserting after

the item relating to section 4302 the following new item:

‘‘4303. Army Ranger Training: instructor

staffing; safety.’’.

(b) ACCOMPLISHMENT OF REQUIRED MANNING

LEVELS.—(1) If, as of the date of the enactment of this Act, the number of officers, or

the number of enlisted members, permanently assigned to the Ranger Training Brigade is not 100 percent (or more) of the requirement specified in subsection (b) of section 4303 of title 10, United States Code, as

added by subsection (a), the Secretary of the

Army—

(A) shall take such steps as necessary to

accomplish that requirement within 12

months after such date of enactment; and

(B) not later than 90 days after such date of

enactment, shall submit to Congress a plan

to achieve and maintain that requirement.

(2) If the Secretary does not accomplish

the requirement referred to in paragraph (1)

with respect to both officers and enlisted

members within 12 months after the date of

the enactment of this Act (as required by

paragraph (1)(A)), the Secretary shall halt

all training activities of the Ranger Training

Brigade until the requirement is met.

SEC. 558. REPEAL OF CERTAIN CIVIL-MILITARY

PROGRAMS.

(a) REPEAL OF CIVIL-MILITARY COOPERATIVE

ACTION PROGRAM.—(1) Section 410 of title 10,

United States Code, and section 1081(a) of the

National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 10 U.S.C.

410 note) are repealed:

(2) The table of sections at the beginning of

chapter 20 of title 10, United States Code, is

amended by striking out the item relating to

section 410.

(b) REPEAL OF RELATED PROVISIONS.—The

following sections of the National Defense

Authorization Act for Fiscal Year 1993 (Public Law 102–484) are repealed:

(1) Section 1045 (10 U.S.C. 410 note), relating to a pilot outreach program to reduce demand for illegal drugs.

(2) Section 1091 (32 U.S.C. 501 note), relating to the National Guard Civilian Youth Opportunities Program.

(c) TERMINATION OF SUPPORT OF CIVILIAN

COMMUNITY CORPS.—(1) The Secretary of Defense may not provide support to, or participate in, the Civilian Community Corps Demonstration Program established under subtitle E of title I of the National and Community Service Act of 1990 (42 U.S.C. 12611–12626)

or the Civilian Community Corps required as

part of that demonstration program.

(2) Section 1093 of the National Defense Authorization Act for Fiscal Year 1993 (Public

Law 102–484; 42 U.S.C. 12612 note), relating to

coordination between the National Guard Civilian Youth Opportunities Pilot Program

and the Civilian Community Corps Demonstration Program, is repealed.

SEC. 559. ELIGIBILITY FOR ARMED FORCES EXPEDITIONARY MEDAL BASED UPON

SERVICE IN EL SALVADOR.

(a) IN GENERAL.—For the purpose of determining eligibility of members and former

members of the Armed Forces for the Armed

Forces Expeditionary Medal, the country of

El Salvador during the period beginning on

January 1, 1981 and ending on February 1,

1992, shall be treated as having been designated as an area and a period of time in

which members of the Armed Forces participated in operations in significant numbers

and otherwise met the general requirements

for the award of that medal.

(b) INDIVIDUAL DETERMINATION.—The Secretary of the military department concerned

shall determine whether individual members

or former members of the Armed Forces who

served in El Salvador during the period beginning on January 1, 1981 and ending on

February 1, 1992 meet the individual service

requirements for award of the Armed Forces

Expeditionary Medal as established in applicable regulations. Such determinations shall

be made as expeditiously as possible after

the date of the enactment of this Act.

SEC. 560. REVISION AND CODIFICATION OF MILITARY FAMILY ACT AND MILITARY

CHILD CARE ACT.

(a) IN GENERAL.—(1) Subtitle A of title 10,

United States Code, is amended by inserting

after chapter 87 the following new chapter:

‘‘CHAPTER 88—MILITARY FAMILY

PROGRAMS AND MILITARY CHILD CARE

‘‘Subchapter Sec.

‘‘I. Military Family Programs ................ 1781

‘‘II. Military Child Care ........................... 1791

‘‘SUBCHAPTER I—MILITARY FAMILY

PROGRAMS

‘‘Sec.

‘‘1781. Office of Family Policy.

‘‘1782. Surveys of military families.

‘‘1783. Family members serving on advisory

committees.

‘‘1784. Employment opportunities for military spouses.

‘‘1785. Youth sponsorship program.

‘‘1786. Dependent student travel within the

United States.

‘‘1787. Reporting of child abuse.

‘‘§ 1781. Office of Family Policy

‘‘(a) ESTABLISHMENT.—There is in the Office of the Secretary of Defense an Office of

Family Policy (hereinafter in this section referred to as the ‘Office’). The Office shall be

under the Assistant Secretary of Defense for

Force Management and Personnel.

‘‘(b) DUTIES.—The Office—

‘‘(1) shall coordinate programs and activities of the military departments to the extent that they relate to military families;

and

‘‘(2) shall make recommendations to the

Secretaries of the military departments with

respect to programs and policies regarding

military families.

‘‘(c) STAFF.—The Office shall have not less

than five professional staff members.

‘‘§ 1782. Surveys of military families

‘‘(a) AUTHORITY.—The Secretary of Defense

may conduct surveys of members of the

armed forces on active duty or in an active

status, members of the families of such

members, and retired members of the armed

forces to determine the effectiveness of Federal programs relating to military families

and the need for new programs.

‘‘(b) RESPONSES TO BE VOLUNTARY.—Responses to surveys conducted under this section shall be voluntary.

‘‘(c) FEDERAL RECORDKEEPING REQUIREMENTS.—With respect to such surveys, family

members of members of the armed forces and

reserve and retired members of the armed
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forces shall be considered to be employees of

the United States for purposes of section

3502(4)(A) of title 44.

‘‘§ 1783. Family members serving on advisory

committees

‘‘A committee within the Department of

Defense which advises or assists the Department in the performance of any function

which affects members of military families

and which includes members of military

families in its membership shall not be considered an advisory committee under section

3(2) of the Federal Advisory Committee Act

(5 U.S.C. App.) solely because of such membership.

‘‘§ 1784. Employment opportunities for military spouses

‘‘(a) AUTHORITY.—The President shall order

such measures as the President considers

necessary to increase employment opportunities for spouses of members of the armed

forces. Such measures may include—

‘‘(1) excepting, pursuant to section 3302 of

title 5, from the competitive service positions in the Department of Defense located

outside of the United States to provide employment opportunities for qualified spouses

of members of the armed forces in the same

geographical area as the permanent duty

station of the members; and

‘‘(2) providing preference in hiring for positions in nonappropriated fund activities to

qualified spouses of members of the armed

forces stationed in the same geographical

area as the nonappropriated fund activity for

positions in wage grade UA–8 and below and

equivalent positions and for positions paid at

hourly rates.

‘‘(b) REGULATIONS.—The Secretary of Defense shall prescribe regulations—

‘‘(1) to implement such measures as the

President orders under subsection (a);

‘‘(2) to provide preference to qualified

spouses of members of the armed forces in

hiring for any civilian position in the Department of Defense if the spouse is among

persons determined to be best qualified for

the position and if the position is located in

the same geographical area as the permanent

duty station of the member;

‘‘(3) to ensure that notice of any vacant position in the Department of Defense is provided in a manner reasonably designed to

reach spouses of members of the armed

forces whose permanent duty stations are in

the same geographic area as the area in

which the position is located; and

‘‘(4) to ensure that the spouse of a member

of the armed forces who applies for a vacant

position in the Department of Defense shall,

to the extent practicable, be considered for

any such position located in the same geographic area as the permanent duty station

of the member.

‘‘(c) STATUS OF PREFERENCE ELIGIBLES.—

Nothing in this section shall be construed to

provide a spouse of a member of the armed

forces with preference in hiring over an individual who is a preference eligible.

‘‘§ 1785. Youth sponsorship program

‘‘(a) REQUIREMENT.—The Secretary of Defense shall require that there be at each

military installation a youth sponsorship

program to facilitate the integration of dependent children of members of the armed

forces into new surroundings when moving

to that military installation as a result of a

parent’s permanent change of station.

‘‘(b) DESCRIPTION OF PROGRAMS.—The program at each installation shall provide for

involvement of dependent children of members presently stationed at the military installation and shall be directed primarily toward children in their preteen and teenage

years.

‘‘§ 1786. Dependent student travel within the

United States

‘‘Funds available to the Department of Defense for the travel and transportation of dependent students of members of the armed

forces stationed overseas may be obligated

for transportation allowances for travel

within or between the contiguous States.

‘‘§ 1787. Reporting of child abuse

‘‘(a) IN GENERAL.—The Secretary of Defense shall request each State to provide for

the reporting to the Secretary of any report

the State receives of known or suspected instances of child abuse and neglect in which

the person having care of the child is a member of the armed forces (or the spouse of the

member).

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

‘child abuse and neglect’ has the meaning

provided in section 3(1) of the Child Abuse

Prevention and Treatment Act (42 U.S.C.

5102).

‘‘SUBCHAPTER II—MILITARY CHILD

CARE

‘‘Sec.

‘‘1791. Funding for military child care.

‘‘1792. Child care employees.

‘‘1793. Parent fees.

‘‘1794. Child abuse prevention and safety at

facilities.

‘‘1795. Parent partnerships with child development centers.

‘‘1796. Subsidies for family home day care.

‘‘1797. Early childhood education program.

‘‘1798. Definitions.

‘‘§ 1791. Funding for military child care

‘‘It is the policy of Congress that the

amount of appropriated funds available during a fiscal year for operating expenses for

military child development centers and programs shall be not less than the amount of

child care fee receipts that are estimated to

be received by the Department of Defense

during that fiscal year.

‘‘§ 1792. Child care employees

‘‘(a) REQUIRED TRAINING.—(1) The Secretary of Defense shall prescribe regulations

implementing, a training program for child

care employees. Those regulations shall

apply uniformly among the military departments. Subject to paragraph (2), satisfactory

completion of the training program shall be

a condition of employment of any person as

a child care employee.

‘‘(2) Under those regulations, the Secretary

shall require that each child care employee

complete the training program not later

than six months after the date on which the

employee is employed as a child care employee.

‘‘(3) The training program established

under this subsection shall cover, at a minimum, training in the following:

‘‘(A) Early childhood development.

‘‘(B) Activities and disciplinary techniques

appropriate to children of different ages.

‘‘(C) Child abuse prevention and detection.

‘‘(D) Cardiopulmonary resuscitation and

other emergency medical procedures.

‘‘(b) TRAINING AND CURRICULUM SPECIALISTS.—(1) The Secretary of Defense shall require that at least one employee at each

military child development center be a specialist in training and curriculum development. The Secretary shall ensure that such

employees have appropriate credentials and

experience.

‘‘(2) The duties of such employees shall include the following:

‘‘(A) Special teaching activities at the center.

‘‘(B) Daily oversight and instruction of

other child care employees at the center.

‘‘(C) Daily assistance in the preparation of

lesson plans.

‘‘(D) Assistance in the center’s child abuse

prevention and detection program.

‘‘(E) Advising the director of the center on

the performance of other child care employees.

‘‘(3) Each employee referred to in paragraph (1) shall be an employee in a competitive service position.

‘‘(c) COMPETITIVE RATES OF PAY.—For the

purpose of providing military child development centers with a qualified and stable civilian workforce, employees at a military installation who are directly involved in providing child care and are paid from nonappropriated funds—

‘‘(1) in the case of entry-level employees,

shall be paid at rates of pay competitive

with the rates of pay paid to other entrylevel employees at that installation who are

drawn from the same labor pool; and

‘‘(2) in the case of other employees, shall

be paid at rates of pay substantially equivalent to the rates of pay paid to other employees at that installation with similar training, seniority, and experience.

‘‘(d) EMPLOYMENT PREFERENCE PROGRAM

FOR MILITARY SPOUSES.—(1) The Secretary of

Defense shall conduct a program under

which qualified spouses of members of the

armed forces shall be given a preference in

hiring for the position of child care employee

in a position paid from nonappropriated

funds if the spouse is among persons determined to be best qualified for the position.

‘‘(2) A spouse who is provided a preference

under this subsection at a military child development center may not be precluded from

obtaining another preference, in accordance

with section 1794 of this title, in the same geographic area as the military child development center.

‘‘(e) COMPETITIVE SERVICE POSITION DEFINED.—In this section, the term ‘competitive service position’ means a position in the

competitive service, as defined in section

2102(a)(1) of title 5.

‘‘§ 1793. Parent fees

‘‘(a) IN GENERAL.—The Secretary of Defense shall prescribe regulations establishing

fees to be charged parents for the attendance

of children at military child development

centers. Those regulations shall be uniform

for the military departments and shall require that, in the case of children who attend

the centers on a regular basis, the fees shall

be based on family income.

‘‘(b) LOCAL WAIVER AUTHORITY.—The Secretary of Defense may provide authority to

installation commanders, on a case-by-case

basis, to establish fees for attendance of children at child development centers at rates

lower than those prescribed under subsection

(a) if the rates prescribed under subsection

(a) are not competitive with rates at local

non-military child development centers.

‘‘§ 1794. Child abuse prevention and safety at

facilities

‘‘(a) CHILD ABUSE TASK FORCE.—The Secretary of Defense shall maintain a special

task force to respond to allegations of widespread child abuse at a military installation.

The task force shall be composed of personnel from appropriate disciplines, including, where appropriate, medicine, psychology, and childhood development. In the

case of such allegations, the task force shall

provide assistance to the commander of the

installation, and to parents at the installation, in helping them to deal with such allegations.

‘‘(b) NATIONAL HOTLINE.—(1) The Secretary

of Defense shall maintain a national telephone number for persons to use to report

suspected child abuse or safety violations at

a military child development center or family home day care site. The Secretary shall

ensure that such reports may be made anonymously if so desired by the person making

the report. The Secretary shall establish procedures for following up on complaints and

information received over that number.
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‘‘(2) The Secretary shall publicize the existence of the number.

‘‘(c) ASSISTANCE FROM LOCAL AUTHORITIES.—The Secretary of Defense shall prescribe regulations requiring that, in a case of

allegations of child abuse at a military child

development center or family home day care

site, the commander of the military installation or the head of the task force established

under subsection (a) shall seek the assistance of local child protective authorities if

such assistance is available.

‘‘(d) SAFETY REGULATIONS.—The Secretary

of Defense shall prescribe regulations on

safety and operating procedures at military

child development centers. Those regulations shall apply uniformly among the military departments.

‘‘(e) INSPECTIONS.—The Secretary of Defense shall require that each military child

development center be inspected not less

often than four times a year. Each such inspection shall be unannounced. At least one

inspection a year shall be carried out by a

representative of the installation served by

the center, and one inspection a year shall be

carried out by a representative of the major

command under which that installation operates.

‘‘(f) REMEDIES FOR VIOLATIONS.—(1) Except

as provided in paragraph (2), any violation of

a safety, health, or child welfare law or regulation (discovered at an inspection or otherwise) at a military child development center

shall be remedied immediately.

‘‘(2) In the case of a violation that is not

life threatening, the commander of the

major command under which the installation

concerned operates may waive the requirement that the violation be remedied immediately for a period of up to 90 days beginning on the date of the discovery of the violation. If the violation is not remedied as of

the end of that 90-day period, the military

child development center shall be closed

until the violation is remedied. The Secretary of the military department concerned

may waive the preceding sentence and authorize the center to remain open in a case

in which the violation cannot reasonably be

remedied within that 90-day period or in

which major facility reconstruction is required.

‘‘(3) If a military child development center

is closed under paragraph (2), the Secretary

of the military department concerned shall

promptly submit to the Committee on

Armed Services of the Senate and the Committee on National Security of the House of

Representatives a report notifying those

committees of the closing. The report shall

include—

‘‘(A) notice of the violation that resulted

in the closing and the cost of remedying the

violation; and

‘‘(B) a statement of the reasons why the

violation has not been remedied as of the

time of the report.

‘‘§ 1795. Parent partnerships with child development centers

‘‘(a) PARENT BOARDS.—The Secretary of

Defense shall require that there be established at each military child development

center a board of parents, to be composed of

parents of children attending the center. The

board shall meet periodically with staff of

the center and the commander of the installation served by the center for the purpose of

discussing problems and concerns. The

board, together with the staff of the center,

shall be responsible for coordinating the parent participation program described in subsection (b).

‘‘(b) PARENT PARTICIPATION PROGRAMS.—

The Secretary of Defense shall require the

establishment of a parent participation program at each military child development

center. As part of such program, the Secretary of Defense may establish fees for attendance of children at such a center, in the

case of parents who participate in the parent

participation program at that center, at

rates lower than the rates that otherwise

apply.

‘‘§ 1796. Subsidies for family home day care

‘‘The Secretary of Defense may use appropriated funds available for military child

care purposes to provide assistance to family

home day care providers so that family home

day care services can be provided to members of the armed forces at a cost comparable

to the cost of services provided by military

child development centers. The Secretary

shall prescribe regulations for the provision

of such assistance.

‘‘§ 1797. Early childhood education program

‘‘The Secretary of Defense shall require

that all military child development centers

meet standards of operation necessary for

accreditation by an appropriate national

early childhood programs accrediting body.

‘‘§ 1798. Definitions

‘‘In this subchapter:

‘‘(1) The term ‘military child development

center’ means a facility on a military installation (or on property under the jurisdiction

of the commander of a military installation)

at which child care services are provided for

members of the armed forces or any other facility at which such child care services are

provided that is operated by the Secretary of

a military department.

‘‘(2) The term ‘family home day care’

means home-based child care services that

are provided for members of the armed forces

by an individual who (A) is certified by the

Secretary of the military department concerned as qualified to provide those services,

and (B) provides those services on a regular

basis for compensation.

‘‘(3) The term ‘child care employee’ means

a civilian employee of the Department of Defense who is employed to work in a military

child development center (regardless of

whether the employee is paid from appropriated funds or nonappropriated funds).

‘‘(4) The term ‘child care fee receipts’

means those nonappropriated funds that are

derived from fees paid by members of the

armed forces for child care services provided

at military child development centers.’’.

(2) The tables of chapters at the beginning

of subtitle A, and at the beginning of part II

of subtitle A, of title 10, United States Code,

are amended by inserting after the item relating to chapter 87 the following new item:

‘‘88. Military Family Programs and

Military Child Care ...................... 1781’’.

(b) REPORT ON FIVE-YEAR DEMAND FOR

CHILD CARE.—(1) Not later than the date of

the submission of the budget for fiscal year

1997 pursuant to section 1105 of title 31,

United States Code, the Secretary of Defense

shall submit to Congress a report on the expected demand for child care by military and

civilian personnel of the Department of Defense during fiscal years 1997 through 2001.

(2) The report shall include—

(A) a plan for meeting the expected child

care demand identified in the report; and

(B) an estimate of the cost of implementing that plan.

(3) The report shall also include a description of methods for monitoring family home

day care programs of the military departments.

(c) PLAN FOR IMPLEMENTATION OF ACCREDITATION REQUIREMENT.—The Secretary of Defense shall submit to the Committee on

Armed Services of the Senate and the Committee on National Security of the House of

Representatives a plan for carrying out the

requirements of section 1787 of title 10,

United States Code, as added by subsection

(a). The plan shall be submitted not later

than April 1, 1997.

(d) CONTINUATION OF DELEGATION OF AUTHORITY WITH RESPECT TO HIRING PREFERENCE FOR QUALIFIED MILITARY SPOUSES.—

The provisions of Executive Order No. 12568,

issued October 2, 1986 (10 U.S.C. 113 note),

shall apply as if the reference in that Executive order to section 806(a)(2) of the Department of Defense Authorization Act of 1986 refers to section 1784 of title 10, United States

Code, as added by subsection (a).

(e) CONFORMING AMENDMENT.—Effective October 1, 1995, section 1782(c) of title 10,

United States Code, as added by subsection

(a), is amended by striking out ‘‘section

3502(4)(A) of title 44’’ and inserting in lieu

thereof ‘‘section 3502(3)(A)(i) of title 44’’.

(f) REPEALER.—The following provisions of

law are repealed:

(1) The Military Family Act of 1985 (title

VIII of Public Law 99–145; 10 U.S.C. 113 note).

(2) The Military Child Care Act of 1989

(title XV of Public Law 101–189; 10 U.S.C. 113

note).

SEC. 561. DISCHARGE OF MEMBERS OF THE

ARMED FORCES WHO HAVE THE

HIV–1 VIRUS.

(a) IN GENERAL.—(1) Section 1177 of title 10,

United States Code, is amended to read as

follows:

‘‘§ 1177. Members infected with HIV–1 virus:

mandatory discharge or retirement

‘‘(a) MANDATORY SEPARATION.—A member

of the armed forces who is HIV-positive shall

be separated. Such separation shall be made

on a date determined by the Secretary concerned, which shall be as soon as practicable

after the date on which the determination is

made that the member is HIV-positive and

not later than the last day of the sixth

month beginning after such date.

‘‘(b) FORM OF SEPARATION.—If a member to

be separated under this section is eligible to

retire under any provision of law or to be

transferred to the Fleet Reserve or Fleet Marine Corps Reserve, the member shall be so

retired or so transferred. Otherwise, the

member shall be discharged. The characterization of the service of the member shall be

determined without regard to the determination that the member is HIV-positive.

‘‘(c) DEFERRAL OF SEPARATION FOR MEMBERS IN 18-YEAR RETIREMENT SANCTUARY.—In

the case of a member to be discharged under

this section who on the date on which the

member is to be discharged is within two

years of qualifying for retirement under any

provision of law, or of qualifying for transfer

to the Fleet Reserve or Fleet Marine Corps

Reserve under section 6330 of this title, the

member may, as determined by the Secretary concerned, be retained on active duty

until the member is qualified for retirement

or transfer to the Fleet Reserve or Fleet Marine Corps Reserve, as the case may be, and

then be so retired or transferred, unless the

member is sooner retired or discharged under

any other provision of law.

‘‘(d) SEPARATION TO BE CONSIDERED INVOLUNTARY.—A separation under this section

shall be considered to be an involuntary separation for purposes of any other provision

of law.

‘‘(e) COUNSELING ABOUT AVAILABLE MEDICAL CARE.—A member to be separated under

this section shall be provided information, in

writing, before such separation of the available medical care (through the Department

of Veterans Affairs and otherwise) to treat

the member’s condition. Such information

shall include identification of specific medical locations near the member’s home of

record or point of discharge at which the

member may seek necessary medical care.

‘‘(f) HIV-POSITIVE MEMBERS.—A member

shall be considered to be HIV-positive for

purposes of this section if there is serologic
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evidence that the member is infected with

the virus known as Human Immunodeficiency Virus–1 (HIV–1), the virus most

commonly associated with the acquired immune deficiency syndrome (AIDS) in the

United States. Such serologic evidence shall

be considered to exist if there is a reactive

result given by an enzyme-linked

immunosorbent assay (ELISA) serologic test

that is confirmed by a reactive and diagnostic immunoelectrophoresis test (Western

blot) on two separate samples. Any such serologic test must be one that is approved by

the Food and Drug Administration.’’.

(2) The item relating to such section in the

table of sections at the beginning of chapter

59 of such title is amended to read as follows:

‘‘1177. Members infected with HIV–1 virus:

mandatory discharge or retirement.’’.

(b) EFFECTIVE DATE.—Section 1177 of title

10, United States Code, as amended by subsection (a), applies with respect to members

of the Armed Forces determined to be HIVpositive before, on, or after the date of the

enactment of this Act. In the case of a member of the Armed Forces determined to be

HIV-positive before such date, the deadline

for separation of the member under subsection (a) of such section, as so amended,

shall be determined from the date of the enactment of this Act (rather than from the

date of such determination).

SEC. 562. AUTHORITY TO APPOINT BRIGADIER

GENERAL CHARLES E. YEAGER,

UNITED STATES AIR FORCES (RETIRED) TO THE GRADE OF MAJOR

GENERAL ON THE RETIRED LIST.

The President is authorized to appoint, by

and with the advice and consent of the Senate, Brigadier General Charles E. Yeager,

United States Air Force (retired), to the

grade of major general on the retired list of

the Air Force. Any such appointment shall

not affect the retired pay or other benefits of

Charles E. Yeager or any benefits to which

any other person is or may become entitled

based upon his service.

SEC. 563. DETERMINATION OF WHEREABOUTS

AND STATUS OF MISSING PERSONS.

(a) PURPOSE.—The purpose of this section

is to ensure that any member of the Armed

Forces, and any civilian employee of the

United States or contractor of the United

States who serves with or accompanies the

Armed Forces in the field under orders, is accounted for by the United States (by the return of such person alive, by the return of

the remains of such person, or by the decision that credible evidence exists to support

another determination of the status of such

person) and, as a general rule, is not declared

dead solely because of the passage of time.

(b) IN GENERAL.—(1) Part II of subtitle A of

title 10, United States Code, is amended by

inserting after chapter 75 the following new

chapter:

‘‘CHAPTER 76—MISSING PERSONS

‘‘Sec.

‘‘1501. System for accounting for missing

persons.

‘‘1502. Missing persons: initial report.

‘‘1503. Initial board inquiry; actions of theater component commander

and head of the agency.

‘‘1504. Subsequent board inquiry; actions of

head of the agency.

‘‘1505. Further review.

‘‘1506. Personnel files.

‘‘1507. Recommendation of status of death.

‘‘1508. Judicial review.

‘‘1509. Persons previously declared dead.

‘‘1510. Procedures applicable in case of civilians.

‘‘1511. Return alive of person declared missing or dead.

‘‘1512. Effect on State law.

‘‘1513. Definitions.

‘‘§ 1501. System for accounting for missing

persons

‘‘(a) OFFICE FOR MISSING PERSONNEL.—(1)

The Secretary of Defense shall establish

within the Office of the Secretary of Defense

an office to have responsibility for Department of Defense policy relating to missing

persons. Subject to the authority, direction,

and control of the Secretary of Defense, the

responsibilities of the office shall include—

‘‘(A) policy, control, and oversight within

the Department of Defense of the entire

process for investigation and recovery (including search and rescue) related to missing

persons; and

‘‘(B) coordination for the Department of

Defense with other departments and agencies

of the United States on all matters concerning missing persons.

‘‘(2) In carrying out the responsibilities of

the office established under this subsection,

the head of the office shall coordinate the efforts of that office with those of other departments and agencies and other elements

of the Department of Defense for such purposes and shall be responsible for the coordination for such purposes within the Department of Defense among the military departments, the Joint Staff, and the commanders

of the combatant commands.

‘‘(3) The office shall establish policies,

which shall apply uniformly through the Department of Defense, for personnel recovery

(including search and rescue).

‘‘(4) The office shall establish procedures

to be followed by Department of Defense

boards of inquiry, and by officers reviewing

the reports of such boards, under this chapter.

‘‘(b) OTHER DEPARTMENTS AND AGENCIES.—

(1) The Secretary of State shall designate an

officer of the Department of State to have

responsibility within that Department for

matters relating to missing persons.

‘‘(2) The Secretary of Transportation shall

designate an officer of the Department of

Transportation to have responsibility within

that Department for matters relating to

missing persons.

‘‘(3) The Director of Central Intelligence

shall designate an officer of the Central Intelligence Agency to have responsibility

within that Agency for matters relating to

missing persons.

‘‘(4) The President shall direct the heads of

such other departments and agencies as the

President considers appropriate to make a

similar designation for their respective departments and agencies.

‘‘(c) UNIFORM DOD PROCEDURES.—(1) The

Secretary of Defense shall prescribe procedures, to apply uniformly through the Department of Defense, for—

‘‘(A) the determination of the status of

persons described in subsection (d); and

‘‘(B) for the systematic, comprehensive,

and timely collection, analysis, review, dissemination, and periodic update of information related to such persons.

‘‘(2) Such procedures shall be prescribed in

a single directive applicable to all elements

of the Department of Defense.

‘‘(3) As part of such procedures, the Secretary may provide for the extension, on a

case-by-case basis, of any time limit specified in section 1502, 1503, or 1504 of this title.

Any such extension may not be for a period

in excess of one-half of the period with respect to which the extension is provided.

Subsequent extensions may be provided on

the same basis.

‘‘(d) COVERED PERSONS.—Section 1502 of

this title applies in the case of the following

persons:

‘‘(1) Any member of the armed forces on

active duty who disappears as a result of a

hostile action, or under circumstances suggesting that the disappearance is a result of

a hostile action, and whose status is undetermined or who is unaccounted for (except

under circumstances suggesting that the disappearance is voluntary).

‘‘(2) Any civilian employee of the United

States or employee of a contractor of the

United States who, while serving with or accompanying the armed forces in the field,

disappears under circumstances described in

paragraph (1) and whose status is undetermined or who is unaccounted for (except

under circumstances suggesting that the disappearance is voluntary).

‘‘(e) PRIMARY NEXT OF KIN.—The individual

who is primary next of kin of a person described in subsection (d) may for purposes of

this chapter designate another individual to

act on behalf of that individual as primary

next of kin. The Secretary of Defense shall

treat an individual so designated as if the individual designated were the primary next of

kin for purposes of this chapter. A designation under this subsection may be revoked at

any time by the person who made the designation.

‘‘(f) TERMINATION OF APPLICABILITY OF PROCEDURES WHEN MISSING PERSON IS ACCOUNTED FOR.—The provisions of this chapter relating to boards of inquiry and to actions by the Secretary concerned on the reports of those boards shall cease to apply in

the case of a missing person upon that person becoming accounted for or otherwise

being determined to be in a status other

than the status of missing or missing in action.

‘‘§ 1502. Missing persons: initial report by unit

commander

‘‘(a) PRELIMINARY ASSESSMENT AND RECOMMENDATION BY COMMANDER.—After receiving information that the whereabouts or status of a person described in section 1501(d) of

this title is uncertain and that the absence

of the person may be involuntary, the commander of the unit, facility, or area to or in

which the person is assigned shall make a

preliminary assessment of the circumstances. If, as a result of that assessment, the commander concludes that the

person is missing, the commander shall—

‘‘(1) recommend that the person be placed

in a missing status; and

‘‘(2) not later than 48 hours after receiving

such information, transmit that recommendation to the theater component

commander with jurisdiction over the missing person in accordance with procedures

prescribed under section 1501(c) of this title.

‘‘(b) FORWARDING OF RECORDS.—The commander making the initial assessment shall

(in accordance with procedures prescribed

under section 1501(c) of this title) safeguard

and forward for official use any information

relating to the whereabouts or status of the

person that result from the preliminary assessment or from actions taken to locate the

person.

‘‘§ 1503. Initial board inquiry; actions of theater component commander and head of

the agency

‘‘(a) APPOINTMENT OF BOARD.—Not later

than ten days after receiving notification

under section 1502(a)(2) of this title that a

person has been recommended for placement

in a missing status, the theater component

commander to whom the notification is

transmitted shall appoint a board to conduct

an inquiry into the whereabouts and status

of the person.

‘‘(b) INQUIRIES INVOLVING MORE THAN ONE

MISSING PERSON.—If it appears to the commander who appoints a board under this section that the absence or missing status of

two or more persons is factually related, the

commander may appoint a single board

under this section to conduct the inquiry

into the whereabouts or status of all such

persons.
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‘‘(c) COMPOSITION.—(1) A board appointed

under this section shall consist of at least

one individual described in paragraph (2) who

has experience with and understanding of

military operations or activities similar to

the operation or activity in which the person

disappeared.

‘‘(2) An individual referred to in paragraph

(1) is the following:

‘‘(A) A military officer, in the case of an

inquiry with respect to a member of the

armed forces.

‘‘(B) A civilian, in the case of an inquiry

with respect to a civilian employee of the

United States or of a contractor of the

United States.

‘‘(3) An individual may be appointed as a

member of a board under this section only if

the individual has a security clearance that

affords the member access to all information

relating to the whereabouts and status of the

missing persons covered by the inquiry.

‘‘(d) DUTIES OF BOARD.—A board appointed

to conduct an inquiry into the whereabouts

or status of a missing person under this section shall—

‘‘(1) collect, develop, and investigate all

facts and evidence relating to the disappearance, whereabouts, or status of that person;

‘‘(2) collect appropriate documentation of

the facts and evidence covered by the investigation;

‘‘(3) analyze the facts and evidence, make

findings based on that analysis, and draw

conclusions as to the current whereabouts

and status of the person; and

‘‘(4) with respect to each person covered by

the inquiry, recommend to the commander

who appointed the board that—

‘‘(A) the person be placed in a missing status; or

‘‘(B) the person be declared to have deserted, to be absent without leave, or to be

dead.

‘‘(e) INQUIRY PROCEEDINGS.—(1) During the

proceedings of an inquiry under this section,

a board shall—

‘‘(A) collect, record, and safeguard all

facts, documents, statements, photographs,

tapes, messages, maps, sketches, reports, and

other information (whether classified or unclassified) relating to the whereabouts or

status of each person covered by the inquiry;

‘‘(B) gather information relating to actions

taken to find the person, including any evidence of the whereabouts or status of the

person arising from such actions; and

‘‘(C) maintain a record of its proceedings.

‘‘(2) The commander who appoints a board

under this section may request the commander of the combatant command to provide such assistance as the board or the commander may require for purposes of this section.

‘‘(f) COUNSEL FOR MISSING PERSON.—(1) The

commander appointing a board to conduct an

inquiry under this section shall appoint

counsel to represent each person covered by

the inquiry, or, in the case described by

1503(c) of this title, one counsel to represent

all persons covered by the inquiry. Counsel

appointed under this paragraph may be referred to as ‘missing person’s counsel’.

‘‘(2) To be appointed as a missing person’s

counsel, a person must—

‘‘(A) have the qualifications specified in

section 827(b) of this title (article 27(b) of the

Uniform Code of Military Justice) for trial

counsel or defense counsel detailed for a general court-martial; and

‘‘(B) have a security clearance that affords

the counsel access to all information relating to the whereabouts or status of the person or persons covered by the inquiry.

‘‘(3) A missing person’s counsel—

‘‘(A) shall have access to all facts and evidence considered by the board during the

proceedings under the inquiry for which the

counsel is appointed;

‘‘(B) shall observe all official activities of

the board during such proceedings;

‘‘(C) may question witnesses before the

board; and

‘‘(D) shall monitor the deliberations of the

board.

‘‘(4) A missing person’s counsel shall review the report of the board under subsection (i) and submit to the commander who

appointed the board an independent review

of that report. That review shall be made an

official part of the record of the board.

‘‘(g) ACCESS TO PROCEEDINGS.—The proceedings of a board during an inquiry under

this section shall be closed to the public (including, with respect to any missing person

covered by the inquiry, the primary next of

kin, other members of the immediate family,

and any other previously designated person

designated under section 655 of this title).

‘‘(h) RECOMMENDATION ON STATUS OF MISSING PERSONS.—(1) Upon completion of its inquiry, a board appointed under this section

shall make a recommendation to the commander who appointed the board as to the

appropriate determination of the current

whereabouts or status of each person whose

whereabouts were covered by the inquiry.

‘‘(2)(A) A board may not recommend under

paragraph (1) that a person be declared dead

unless the board determines that the evidence before it established conclusive proof

of the death of the person.

‘‘(B) In this paragraph, the term ‘conclusive proof of death’ means evidence establishing that death is the only credible explanation for the absence of the person.

‘‘(i) REPORT.—(1) A board appointed under

this section shall submit to the commander

who appointed it a report on the inquiry carried out by the board. The report shall

include—

‘‘(A) a discussion of the facts and evidence

considered by the board in the inquiry;

‘‘(B) the recommendation of the board

under subsection (h) with respect to each

person covered by the report; and

‘‘(C) disclosure of whether classified documents and information were reviewed by the

board or were otherwise used by the board in

forming recommendations under subparagraph (B).

‘‘(2) A report under this subsection with respect to a missing person shall be submitted

not later than 45 days after the date on

which that person is first reported missing.

‘‘(3) A report submitted under this subsection may not be made public until one

year after the date on which the report is

submitted.

‘‘(j) REVIEW AND DETERMINATION OF STATUS

BY COMPONENT COMMANDER.—(1) Not later

than 15 days after the date of the receipt of

a report under subsection (i), the commander

who appointed the board shall review—

‘‘(A) the report; and

‘‘(B) the review of that report submitted

under subsection (f)(4) by the missing person’s counsel.

‘‘(2) In reviewing a report under paragraph

(1), the commander receiving the report shall

determine whether or not the report is complete and free of administrative error. If the

commander determines that the report is incomplete, or that the report is not free of administrative error, the commander may return the report to the board for further action on the report by the board.

‘‘(3) Upon a determination by the commander reviewing a report under this subsection that the report is complete and free

of administrative error, the commander

shall make a determination of the status of

each person covered by the report.

‘‘(4) The report, together with the determination under paragraph (3), shall be

promptly forwarded to the commander of the

combatant command for the geographic area

in which the missing person disappeared.

‘‘(k) REVIEW BY CINC.—(1) The commander

of the combatant command shall review a report received under subsection (j)(4). Not

later than 30 days after receiving such report, that commander shall forward that report to the Secretary concerned. In the case

of a missing person who is a member of the

Army, Navy, Air Force, or Marine Corps, the

report shall be forwarded to or through the

Secretary of Defense in accordance with procedures prescribed under section 1501(c) of

this title.

‘‘(2) The review under paragraph (1) shall

be conducted in accordance with procedures

prescribed under section 1501(a)(3) of this

title.

‘‘(l) DETERMINATION BY SECRETARY.—(1)

The Secretary of Defense (or the Secretary

of the military department concerned acting

under delegation of authority from the Secretary of Defense) shall review the determinations of a theater component commander in a report forwarded under this section.

‘‘(2) After conducting such review, the Secretary shall make a determination, with respect to each person whose status is covered

by the report, whether to leave unchanged

the status of such person as determined by

the theater component commander under

subsection (j)(3) or whether to change that

status to another appropriate status, as determined by the Secretary.

‘‘(3) In making such determination, the

Secretary may convene a board in accordance with section 1504 of this title.

‘‘(m) REPORT TO FAMILY MEMBERS AND

OTHER INTERESTED PERSONS.—Not later than

30 days after the date on which the Secretary

makes a determination under subsection (k),

the Secretary of Defense, acting through the

head of the office established under section

1501(a) of this title, shall—

‘‘(1) provide an unclassified summary of

the report of the board (including the name

of the missing person’s counsel for the inquiry, the names of the members of the

board, and the name of the commander who

convened the board) to the primary next of

kin, to the other members of the immediate

family, and to any other previously designated person of the missing person; and

‘‘(2) inform each individual to whom such

summary is provided that the United States

will conduct a subsequent inquiry into the

whereabouts or status of the person not earlier than one year after the date of the first

official notice of the disappearance of the

missing person, unless information becomes

available sooner that would result in a substantial change in the determination of the

status of the person.

‘‘§ 1504. Subsequent board inquiry; actions of

head of the agency

‘‘(a) ADDITIONAL BOARD.—If information on

the whereabouts or status of a person covered by an inquiry under section 1503 of this

title becomes available within one year after

the date of the submission of the report submitted under section 1502 of this title, the

Secretary of Defense, acting through the

head of the office established under section

1501(a) of this title, shall appoint a board

under this section to conduct an inquiry into

the information.

‘‘(b) AUTHORITY FOR INQUIRY.—The Secretary of Defense may delegate authority

over such subsequent inquiry to the Secretary concerned.

‘‘(c) SECRETARY CONCERNED.—In this chapter, the term ‘Secretary concerned’, in the

case of a civilian employee of the United

States or contractor of the United States,

means the Secretary of the executive department or head of the agency employing the

employee or contracting with the contractor, as the case may be.

‘‘(d) DATE OF APPOINTMENT.—The Secretary shall appoint a board under this sec-
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tion to conduct an inquiry into the whereabouts and status of a missing person on or

about one year after the date of the report

concerning that person submitted under section 1502 of this title.

‘‘(e) COMBINED INQUIRIES.—If it appears to

the Secretary that the absence or status of

two or more persons is factually related, the

Secretary may appoint one board under this

section to conduct the inquiry into the

whereabouts or status of all such persons.

‘‘(f) COMPOSITION.—(1) Subject to paragraphs (2) and (3), a board appointed under

this section shall consist of the following:

‘‘(A) In the case of a board appointed to inquire into the whereabouts or status of a

member of the armed forces, not less than

three officers having the grade of major or

lieutenant commander or above.

‘‘(B) In the case of a board appointed to inquire into the whereabouts or status of a civilian employee of the United States or an

employee of a contractor of the United

States—

‘‘(i) not less than three employees of the

Department of Defense whose rate of annual

pay is equal to or greater than the rate of

annual pay payable for grade GS–13 of the

General Schedule under section 5332 of title

5; and

‘‘(ii) such members of the armed forces as

the Secretary of Defense considers advisable.

‘‘(2) The Secretary shall designate one

member of a board appointed under this section as president of the board. The president

of the board shall have a security clearance

that affords the president access to all information relating to the whereabouts and status of each person covered by the inquiry.

‘‘(3)(A) One member of each board appointed under this subsection shall be an attorney or judge advocate who has expertise

in the public law relating to missing persons,

the determination of death of such persons,

and the rights of family members and dependents of such persons.

‘‘(B) One member of each board appointed

under this subsection shall be an individual

who—

‘‘(i) has an occupational specialty similar

to that of one or more of the persons covered

by the inquiry; and

‘‘(ii) has an understanding of and expertise

in the official activities of one or more such

persons at the time such person or persons

disappeared.

‘‘(g) DUTIES OF BOARD.—A board appointed

under this section to conduct an inquiry into

the whereabouts or status of a person shall—

‘‘(1) review the report under subsection (i)

of section 1503 of this title of the board appointed to conduct the inquiry into the status or whereabouts of the person under section 1503 of this title and the recommendation under subsection (j)(3) of that section of

the commander who appointed the board

under that subsection as to the status of the

person;

‘‘(2) collect and evaluate any document,

fact, or other evidence with respect to the

whereabouts or status of the person that has

become available since the completion of the

inquiry under section 1503 of this title;

‘‘(3) draw conclusions as to the whereabouts or status of the person;

‘‘(4) determine on the basis of the activities under paragraphs (1) and (2) whether the

status of the person should be continued or

changed; and

‘‘(5) submit to the Secretary of Defense a

report describing the findings and conclusions of the board, together with a recommendation for a determination by the

Secretary concerning the whereabouts or

status of the person.

‘‘(h) COUNSEL FOR MISSING PERSONS.—(1)

When the Secretary appoints a board to conduct an inquiry under this section, the Secretary shall appoint counsel to represent

each person covered by the inquiry.

‘‘(2) A person appointed as counsel under

this subsection shall meet the qualifications

and have the duties set forth in section

1503(f) of this title for a missing person’s

counsel appointed under that section.

‘‘(3) The review of the report of a board on

an inquiry that is submitted by such counsel

shall be made an official part of the record of

the board with respect to the inquiry.

‘‘(i) ATTENDANCE OF FAMILY MEMBERS AND

CERTAIN OTHER INTERESTED PERSONS AT PROCEEDINGS.—(1) With respect to any person

covered by an inquiry under this section, the

primary next of kin, other members of the

immediate family, and any other previously

designated person of the missing person may

attend the proceedings of the board during

the inquiry in accordance with this section.

‘‘(2) The Secretary shall notify each individual referred to in paragraph (1) of the opportunity to attend the proceedings of a

board. Such notice shall be provided not less

than 60 days before the first meeting of the

board.

‘‘(3) An individual who receives a notice

under paragraph (2) shall notify the Secretary of the intent, if any, of that individual to attend the proceedings of the board

not less than 21 days after the date on which

the individual receives the notice.

‘‘(4) Each individual who notifies the Secretary under paragraph (3) of the individual’s

intent to attend the proceedings of the

board—

‘‘(A) in the case of an individual who is the

primary next of kin or the previously designated person, may attend the proceedings

of the board with private counsel;

‘‘(B) shall have access to the personnel file

of the missing person, to unclassified reports

(if any) of the board appointed under section

1503 of this title to conduct the inquiry into

the whereabouts and status of the person,

and to any other unclassified information or

documents relating to the whereabouts and

status of the person;

‘‘(C) shall be afforded the opportunity to

present information at the proceedings of

the board that such individual considers to

be relevant to those proceedings; and

‘‘(D) subject to paragraph (5), shall be

given the opportunity to submit in writing

objection to any recommendation of the

board under subsection (k) as to the status of

the missing person.

‘‘(5) Objections under paragraph (4)(D) to

any recommendation of the board shall be

submitted to the president of the board not

later than 30 days after the date on which

the recommendations are made. The president shall include any such objections in the

report of the board under subsection (k).

‘‘(6) An individual referred to in paragraph

(1) who attends the proceedings of a board

under this subsection shall not be entitled to

reimbursement by the United States for any

costs (including travel, lodging, meals, local

transportation, legal fees, transcription

costs, witness expenses, and other expenses)

incurred by that individual in attending such

proceedings.

‘‘(j) AVAILABILITY OF INFORMATION TO

BOARDS.—(1) In conducting proceedings in an

inquiry under this section, a board may secure directly from any department or agency

of the United States any information that

the board considers necessary in order to

conduct the proceedings.

‘‘(2) Upon written request from the president of a board, the head of a department or

agency of the United States shall release information covered by the request to the

board. In releasing such information, the

head of the department or agency shall—

‘‘(A) declassify to an appropriate degree

classified information; or

‘‘(B) release the information in a manner

not requiring the removal of markings indicating the classified nature of the information.

‘‘(3)(A) If a request for information under

paragraph (2) covers classified information

that cannot be declassified, cannot be removed before release from the information

covered by the request, or cannot be summarized in a manner that prevents the release

of classified information, the classified information shall be made available only to president of the board making the request and the

counsel for the missing person appointed

under subsection (f).

‘‘(B) The president of a board shall close to

persons who do not have appropriate security clearances those portions of the proceeding of the Board during which classified

information is discussed. Participants at a

proceeding of a board at which classified information is discussed shall comply with all

applicable laws and regulations relating to

the disclosure of classified information. The

Secretary concerned shall assist the president of a board in ensuring that classified information is not compromised through board

proceedings.

‘‘(k) RECOMMENDATION ON STATUS.—(1)

Upon completion of an inquiry under this

subsection, a board shall make a recommendation as to the current whereabouts

or status of each missing person covered by

the inquiry.

‘‘(2) A board may not recommend under

paragraph (1) that a person be declared dead

unless—

‘‘(A) proof of death is established by the

board; and

‘‘(B) in making the recommendation, the

board complies with section 1507 of this title.

‘‘(l) REPORT.—A board appointed under this

section shall submit to the Secretary of Defense a report on the inquiry carried out by

the board, together with the evidence considered by the board during the inquiry. The report may include a classified annex.

‘‘(m) ACTIONS BY SECRETARY.—(1) Not later

than 30 days after the receipt of a report

from a board under subsection (k), the Secretary shall review—

‘‘(A) the report;

‘‘(B) the review of the report submitted to

the Secretary under subsection (f)(3) by the

counsel for each person covered by the report; and

‘‘(C) the objections, if any, to the report

submitted to the president of the board

under subsection (g)(6).

‘‘(2) In reviewing a report under paragraph

(1) (including the review and objections described in subparagraphs (A) and (B) of that

paragraph), the Secretary shall determine

whether or not the report is complete and

free of administrative error. If the Secretary

determines that the report is incomplete, or

that the report is not free of administrative

error, the Secretary may return the report

to the board for further action on the report

by the board.

‘‘(3) Upon a determination by the Secretary that a report reviewed under this subsection is complete and free of administrative error, the Secretary shall make a determination concerning the status of each person covered by the report.

‘‘(n) REPORT TO FAMILY MEMBERS AND

OTHER INTERESTED PERSONS.—Not later than

90 days after the date on which a board submits a report on a person under subsection

(l), the Secretary of Defense shall—

‘‘(1) with respect to each missing person

whose status or whereabouts are covered by

the report, provide an unclassified summary

of the report to the primary next of kin, the

other members of the immediate family, and

any other previously designated person; and

‘‘(2) in the case of a person who continues

to be in a missing status, inform each individual referred to in paragraph (1) that the

United States will conduct a further inves-
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T80.11 JUNE 15

tigation into the whereabouts or status of

the person not later than three years after

the date of the official notice of the disappearance of the person, unless information

becomes available within that time that

would result in a substantial change in the

official status of the person.

‘‘§ 1505. Further review

‘‘(a) SUBSEQUENT REVIEW.—The Secretary

shall conduct subsequent inquiries into the

whereabouts or status of any person determined by the Secretary under section 1504 of

this title to be in a missing status.

‘‘(b) FREQUENCY OF SUBSEQUENT REVIEWS.—

(1) Subject to paragraph (3), the Secretary

shall appoint a board to conduct an inquiry

with respect to a person under this

subsection—

‘‘(A) on or about three years after the date

of the official notice of the disappearance of

the person; and

‘‘(B) not later than every three years

thereafter.

‘‘(2) In addition to appointment of boards

under paragraph (1), the Secretary shall appoint a board to conduct an inquiry with respect to a person under this subsection upon

receipt of information that could result in a

change or revision of status of a missing person. Whenever the Secretary appoints a

board under this paragraph, the time for subsequent appointments of a board under paragraph (1)(B) shall be determined from the

date of the receipt of such information.

‘‘(3) The Secretary is not required to appoint a board under paragraph (1) with respect to the disappearance of any person—

‘‘(A) more than 30 years after the first notice of the disappearance of the missing person; or

‘‘(B) if, before the end of such 30-year period, the missing person is accounted for.

‘‘(c) CONDUCT OF PROCEEDINGS.—The appointment of, and activities before, a board

appointed under this section shall be governed by the provisions of section 1504 of this

title with respect to a board appointed under

that section.

‘‘§ 1506. Personnel files

‘‘(a) INFORMATION IN FILES.—Except as provided in subsection (b), the Secretary of the

department having jurisdiction over a missing person at the time of the person’s disappearance shall, to the maximum extent

practicable, ensure that the personnel file of

the person contains all information in the

possession of the United States relating to

the disappearance and whereabouts or status

of the person.

‘‘(b) CLASSIFIED INFORMATION.—(1) The Secretary concerned may withhold classified information from a personnel file under this

section.

‘‘(2) If the Secretary concerned withholds

classified information from the personnel

file of a person, the Secretary shall ensure

that the file contains the following:

‘‘(A) A notice that the withheld information exists.

‘‘(B) A notice of the date of the most recent review of the classification of the withheld information.

‘‘(c) WRONGFUL WITHHOLDING.—Any person

who knowingly and willfully withholds from

the personnel file of a missing person any information (other than classified information) relating to the disappearance or whereabouts or status of a missing person shall be

fined as provided in title 18 or imprisoned

not more than one year, or both.

‘‘(d) AVAILABILITY OF INFORMATION.—The

Secretary concerned shall, upon request,

make available the contents of the personnel

file of a missing person to the missing person’s primary next of kin, the other members of the missing person’s immediate family, or any other previously designated person of the missing person.

‘‘§ 1507. Recommendation of status of death

‘‘(a) REQUIREMENTS RELATING TO RECOMMENDATION.—A board appointed under section 1504 or 1505 of this title may not recommend that a person be declared dead

unless—

‘‘(1) credible evidence exists to suggest

that the person is dead;

‘‘(2) the United States possesses no credible

evidence that suggests that the person is

alive;

‘‘(3) representatives of the United States

have made a complete search of the area

where the person was last seen (unless, after

making a good faith effort to obtain access

to such area, such representatives are not

granted such access); and

‘‘(4) representatives of the United States

have examined the records of the government or entity having control over the area

where the person was last seen (unless, after

making a good faith effort to obtain access

to such records, such representatives are not

granted such access).

‘‘(b) SUBMITTAL OF INFORMATION ON

DEATH.—If a board appointed under section

1504 or 1505 of this title makes a recommendation that a missing person be declared dead, the board shall include in the report of the board with respect to the person

under such section the following:

‘‘(1) A detailed description of the location

where the death occurred.

‘‘(2) A statement of the date on which the

death occurred.

‘‘(3) A description of the location of the

body, if recovered.

‘‘(4) If the body has been recovered and is

not identifiable through visual means, a certification by a practitioner of an appropriate

forensic science that the body recovered is

that of the missing person.

‘‘§ 1508. Judicial review

‘‘(a) IN GENERAL.—(1) A person referred to

in paragraph (2) may obtain review of a finding described in paragraph (3) by the court of

appeals of the United States for the circuit

in which the person resides or in which the

finding was made. Judicial review under this

section shall be as provided in section 706 of

title 5.

‘‘(2) Paragraph (1) applies to any of the following persons with respect to a missing person subject to a finding described in paragraph (3):

‘‘(A) The primary next of kin of the person.

‘‘(B) A member of the immediate family of

the person.

‘‘(C) A dependent of the person.

‘‘(D) A person previously designated by the

person.

‘‘(3) Paragraph (1) applies to the following

findings:

‘‘(A) A finding by a board appointed under

section 1504 or 1505 of this title that a missing person is dead.

‘‘(B) A finding by a board appointed under

section 1509 of this title that confirms that a

missing person formerly declared dead is in

fact dead.

‘‘(4) A person referred to in paragraph (2)

shall request review of a finding under this

subsection by filing with the appropriate

court a written petition requesting that the

finding be set aside.

‘‘(b) FINALITY.—The decision of the court

of appeals on a petition for review under subsection (a) is final, except that such decision

is subject to review by the Supreme Court

upon certiorari, as provided in section 1254 of

title 28.

‘‘(c) ADDITIONAL REVIEW.—(1) Subject to

paragraph (2), upon request by a person referred to in subsection (a)(2), the Secretary

concerned shall appoint a board to review

the status of a person covered by a finding

described in subsection (a)(3) if the court of

appeals sets aside the finding and—

‘‘(A) the time allowed for filing a petition

for certiorari has expired and no such petition has been duly filed;

‘‘(B) the petition for certiorari has been denied; or

‘‘(C) the decision of the court of appeals

has been affirmed by the Supreme Court.

‘‘(2) A person referred to in paragraph (1)

shall make a request referred to in that

paragraph not later than three years after

the date of the event under that paragraph

that entitles the person to request the appointment of a board.

‘‘§ 1509. Persons previously declared dead

‘‘(a) REVIEW OF STATUS.—(1) Not later than

three years after the date of the enactment

of this chapter, a person referred to in paragraph (2) may submit a request for appointment of a board to review the status of a person previously declared dead while in a missing status, in a case in which the death is declared to have occurred on or after December

7, 1941.

‘‘(2) A board shall be appointed under this

section with respect to the death of any person based on the request of any of the following persons:

‘‘(A) The primary next of kin of such person.

‘‘(B) An adult member of the immediate

family of the person previously declared

dead.

‘‘(C) An adult dependent of such person.

‘‘(D) A person previously designated by

such person.

‘‘(3) A request under this section shall be

submitted to the Secretary of the executive

department or head of the agency of the

United States that had jurisdiction over the

person covered by the request at the time of

the person’s disappearance.

‘‘(b) APPOINTMENT OF BOARD.—Upon receiving a request under subsection (a), the official to whom the request is submitted shall

appoint a board to review the status of the

person covered by the request.

‘‘(c) DUTIES OF BOARD.—A board appointed

under this section to review the status of a

person previously declared dead shall—

‘‘(1) conduct an investigation to determine

the status of the person; and

‘‘(2) issue a report describing the findings

of the board under the investigation and the

recommendations of the board as to the status of the person.

‘‘(d) EFFECT OF CHANGE IN STATUS.—If a

board appointed under this section recommends placing in a missing status a person previously declared dead, such person

shall accrue no pay or allowances as a result

of the placement of the person in such status.

‘‘(e) CONDUCT OF PROCEEDINGS.—The appointment of, and activities before, a board

appointed under this section shall, to the extent practicable, be governed by the provisions of section 1504 of this title with respect

to a board appointed under that section.

‘‘§ 1510. Procedures applicable in case of civilians

‘‘(a) IN GENERAL.—In applying the procedures specified in this chapter in the case of

a person described in section 1501(d)(2) of this

title—

‘‘(1) any reference to the commander of the

unit, facility, or area to which the missing

person is assigned shall be treated as referring to the local authority or supervisor of

the department or agency of the United

States under whom the missing person was

directly operating or to whom the missing

person was responsible;

‘‘(2) any reference to the theater component commander shall be treated as referring

to the senior official in the region in which

the missing person disappeared of the department or agency of the United States with jurisdiction over the missing person (or, if
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1995 T80.11

there is no such official, such other person

(including the appropriate theater component commander) as may be designated by

the head of that department of agency);

‘‘(3) any reference to the Secretary concerned shall be treated as referring to the

head of the department or agency of the

United States with jurisdiction over the

missing person.

‘‘(b) CINC REVIEW NOT TO APPLY.—The

provisions of section 1503(k) shall not apply

in the case of a person described in section

1501(d)(2) of this title. In such a case, the report under section 1503(j)(4) of this title shall

be submitted directly to the head of the department or agency of the United States

with jurisdiction over the missing person.

‘‘(c) RULE FOR DEPARTMENT OF DEFENSE CIVILIANS.—In the case of a person described in

section 1501(d)(2) of this title who is an employee of the Department of Defense, or an

employee of a contractor of the Department

of Defense, the head of the department or

agency of the United States with jurisdiction

over that person—

‘‘(1) if the person is an employee of, or an

employee of a contractor of, a military department, shall be considered to be the Secretary of that military department; and

‘‘(2) otherwise shall be considered to be the

Secretary of Defense.

‘‘§ 1511. Return alive of person declared missing or dead

‘‘(a) PAY AND ALLOWANCES.—Any person in

a missing status or declared dead under the

Missing Persons Act of 1942 (56 Stat. 143) or

chapter 10 of title 37 or by a board appointed

under this chapter who is found alive and returned to the control of the United States

shall be paid for the full time of the absence

of the person while given that status or declared dead under the law and regulations relating to the pay and allowances of persons

returning from a missing status.

‘‘(b) EFFECT ON GRATUITIES PAID AS A RESULT OF STATUS.—Subsection (a) shall not be

interpreted to invalidate or otherwise affect

the receipt by any person of a death gratuity

or other payment from the United States on

behalf of a person referred to in subsection

(a) before the date of the enactment of this

chapter.

‘‘§ 1512. Effect on State law

‘‘(a) NONPREEMPTION OF STATE AUTHORITY.—Nothing in this chapter shall be construed to invalidate or limit the power of

any State court or administrative entity, or

the power of any court or administrative entity of any political subdivision thereof, to

find or declare a person dead for purposes of

the laws of such State or political subdivision.

‘‘(b) STATE DEFINED.—In this section, the

term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, and

any territory or possession of the United

States.

‘‘§ 1513. Definitions

‘‘In this chapter:

‘‘(1) The term ‘missing person’ means—

‘‘(A) a member of the armed forces on active duty who is in a missing status; or

‘‘(B) a civilian employee of the United

States or of a contractor of the United

States who is serving with or accompanying

the armed forces under orders and who is in

a missing status.

‘‘(2) The term ‘missing status’ means the

status of a missing person who is determined

to be absent in a status of—

‘‘(A) missing;

‘‘(B) missing in action;

‘‘(C) interned in a foreign country;

‘‘(D) captured, beleaguered, or besieged by

a hostile force; or

‘‘(E) detained in a foreign country against

that person’s will.

‘‘(3) The term ‘accounted for’, with respect

to a person in a missing status, means that—

‘‘(A) the person is returned to United

States control alive;

‘‘(B) the remains of the person are returned

to the United States; or

‘‘(C) credible evidence exists to support another determination of the person’s status.

‘‘(4) The term ‘member of the immediate

family’, in the case of a missing person,

means the spouse or a child, parent, or sibling of the person.

‘‘(5) The term ‘previously designated person’, in the case of a missing person, means

an individual designated by the missing person under section 655 of this title for purposes of this chapter.

‘‘(6) The term ‘classified information’

means any information the unauthorized disclosure of which (as determined under applicable law and regulations) could reasonably

be expected to damage the national security.

‘‘(7) The term ‘theater component commander’ means, with respect to any of the

combatant commands, an officer of any of

the armed forces who (A) is commander of all

forces of that armed force assigned to that

combatant command, and (B) is directly subordinate to the commander of the combatant

command.’’.

(2) The tables of chapters at the beginning

of subtitle A, and at the beginning of part II

of subtitle A, of title 10, United States Code,

are amended by inserting after the item relating to chapter 75 the following new item:

‘‘76. Missing Persons .......................... 1501’’.

(c) CONFORMING AMENDMENTS.—Chapter 10

of title 37, United States Code, is amended as

follows:

(1) Section 555 is amended—

(A) in subsection (a), by striking out

‘‘When a member’’ and inserting in lieu

thereof ‘‘Except as provided in subsection

(d), when a member’’; and

(B) by adding at the end the following new

subsection:

‘‘(d) This section does not apply in a case

to which section 1502 of title 10 applies.’’.

(2) Section 552 is amended—

(A) in subsection (a), by striking out ‘‘for

all purposes,’’ in the second sentence of the

matter following paragraph (2) and all that

follows through the end of the sentence and

inserting in lieu thereof ‘‘for all purposes.’’;

(B) in subsection (b), by inserting ‘‘or is determined under chapter 76 title 10’’ before

the period at the end; and

(C) in subsection (e), by inserting ‘‘or

under chapter 76 of title 10’’ after ‘‘section

555 of this title’’.

(3) Section 553 is amended—

(A) in subsection (f), by striking out ‘‘the

date the Secretary concerned receives evidence that’’ and inserting in lieu thereof

‘‘the date on which, in a case covered by section 555 of this title, the Secretary concerned

receives evidence, or, in a case covered by

chapter 76 of title 10 the Secretary concerned

determines pursuant to that chapter, that’’;

and

(B) in subsection (g), by inserting ‘‘or

under chapter 76 of title 10’’ after ‘‘section

555 of this title’’.

(4) Section 556 is amended—

(A) in subsection (a), by inserting after

paragraph (7) the following:

‘‘Paragraphs (1), (5), (6), and (7) shall only

apply with respect to a case to which section

555 of this title applies.’’;

(B) in subsection (b), by inserting ‘‘, in a

case to which section 555 of this title applies,’’ after ‘‘When the Secretary concerned’’; and

(C) in subsection (h)—

(i) in the first sentence, by striking out

‘‘status’’ and inserting in lieu thereof ‘‘pay’’;

and

(ii) in the second sentence, by inserting ‘‘in

a case to which section 555 of this title applies’’ after ‘‘under this section’’.

(d) DESIGNATION OF INDIVIDUALS HAVING INTEREST IN STATUS OF SERVICE MEMBERS.—(1)

Chapter 37 of title 10, United States Code, is

amended by adding at the end the following

new section:

‘‘§ 655. Designation of persons having interest

in status of member as a missing person

‘‘(a) The Secretary concerned shall, upon

the enlistment or appointment of a person in

the armed forces, require that the person

specify in writing the person (if any), other

than that person’s primary next of kin, to

whom information on the whereabouts or

status of the member shall be provided if

such whereabouts or status are investigated

under chapter 76 of this title. The Secretary

shall periodically, and whenever the member

is deployed as part of a contingency operation or in other circumstances specified by

the Secretary, require that such designation

be reconfirmed, or modified, by the member.

‘‘(b) The Secretary concerned shall, upon

the request of a member, permit the member

to change the person or persons specified by

the member under subsection (a) at any

time. Any such change shall be in writing.’’.

(2) The table of sections at the beginning of

such chapter is amended by adding at the

end the following new item:

‘‘655. Designation of persons having interest

in status of member as a missing person.’’.

SEC. 564. NOMINATIONS TO SERVICE ACADEMIES

FROM COMMONWEALTH OF THE

NORTHERN MARIANAS ISLANDS.

(a) MILITARY ACADEMY.—Section 4342(a) of

title 10, United States Code, is amended by

inserting after paragraph (9) the following

new paragraph:

‘‘(10) One cadet from the Commonwealth of

the Northern Marianas Islands, nominated

by the resident representative from the commonwealth.’’.

(b) NAVAL ACADEMY.—Section 6954(a) of

title 10, United States Code, is amended by

inserting after paragraph (9) the following

new paragraph:

‘‘(10) One from the Commonwealth of the

Northern Marianas Islands, nominated by

the resident representative from the commonwealth.’’.

(c) AIR FORCE ACADEMY.—Section 9342(a) of

title 10, United States Code, is amended by

inserting after paragraph (9) the following

new paragraph:

‘‘(10) One cadet from the Commonwealth of

the Northern Marianas Islands, nominated

by the resident representative from the commonwealth.’’.

SEC. 565. REPORT ON THE CONSISTENCY OF REPORTING OF FINGERPRINT CARDS

AND FINAL DISPOSITION FORMS TO

THE FEDERAL BUREAU OF INVESTIGATION.

(a) REPORT.—The Secretary of Defense

shall submit to Congress a report on the consistency with which fingerprint cards and

final disposition forms, as described in

Criminal Investigations Policy Memorandum

10 issued by the Defense Inspector General

on March 25, 1987, are reported by the Defense Criminal Investigative Organizations

to the Federal Bureau of Investigation for

inclusion in the Bureau’s criminal history

identification files.

(b) MATTERS TO BE INCLUDED.—In the report, the Secretary shall—

(1) survey fingerprint cards and final disposition forms filled out in the past 24

months by each investigative organization;

(2) compare the fingerprint cards and final

disposition forms filled out to all judicial

and nonjudicial procedures initiated as a result of actions taken by each investigative

service in the past 24 months;
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(3) account for any discrepancies between

the forms filled out and the judicial and nonjudicial procedures initiated;

(4) compare the fingerprint cards and final

disposition forms filled out with the information held by the Federal Bureau of Investigation criminal history identification files;

(5) identify any weaknesses in the collection of fingerprint cards and final disposition

forms and in the reporting of that information to the Federal Bureau of Investigation;

and

(6) determine whether or not other law enforcement activities of the military services

collect and report such information or, if

not, should collect and report such information.

(c) SUBMISSION OF REPORT.—The report

shall be submitted not later than 180 days

after the date of the enactment of this Act.

(d) DEFINITION.—For the purposes of this

section, the term ‘‘criminal history identification files’’, with respect to the Federal

Bureau of Investigation, means the criminal

history record system maintained by the

Federal Bureau of Investigation based on fingerprint identification and any other method

of positive identification.

SEC. 566. SEPARATION BENEFITS DURING FORCE

REDUCTION FOR OFFICERS OF COMMISSIONED CORPS OF NATIONAL

OCEANIC AND ATMOSPHERIC ADMINISTRATION.

(a) SEPARATION BENEFITS.—Subsection (a)

of section 3 of the Act of August 10, 1956 (33

U.S.C. 857a), is amended by adding at the end

the following new paragraph:

‘‘(15) Section 1174a, special separation benefits (except that benefits under subsection

(b)(2)(B) of such section are subject to the

availability of appropriations for such purpose and are provided at the discretion of the

Secretary of Commerce).’’.

(b) TECHNICAL CORRECTIONS.—Such section

is further amended—

(1) by striking out ‘‘Coast and Geodetic

Survey’’ in subsections (a) and (b) and inserting in lieu thereof ‘‘commissioned officer

corps of the National Oceanic and Atmospheric Administration’’; and

(2) in subsection (a), by striking out ‘‘including changes in those rules made after

the effective date of this Act’’ in the matter

preceding paragraph (1) and inserting in lieu

thereof ‘‘as those provisions are in effect

from time to time’’.

(c) TEMPORARY EARLY RETIREMENT AUTHORITY..—Section 4403 (other than subsection (f)) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law

102–484; 106 Stat. 2702; 10 U.S.C. 1293 note)

shall apply to the commissioned officer corps

of the National Oceanic and Atmospheric Administration in the same manner and to the

same extent as that section applies to the

Department of Defense. The Secretary of

Commerce shall implement the provisions of

that section with respect to such commissioned officer corps and shall apply the provisions of that section to the provisions of

the Coast and Geodetic Survey Commissioned Officers’ Act of 1948 relating to the retirement of members of such commissioned

officer corps.

(d) EFFECTIVE DATE.—This section shall

apply only to members of the commissioned

officer corps of the National Oceanic and Atmospheric Administration who are separated

after September 30, 1995.

TITLE VI—COMPENSATION AND OTHER

PERSONNEL BENEFITS

Subtitle A—Pay and Allowances

SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR

1996.

(a) WAIVER OF SECTION 1009 ADJUSTMENT.—

Any adjustment required by section 1009 of

title 37, United States Code, in elements of

compensation of members of the uniformed

services to become effective during fiscal

year 1996 shall not be made.

(b) INCREASE IN BASIC PAY AND BAS.—Effective on January 1, 1996, the rates of basic

pay and basic allowance for subsistence of

members of the uniformed services are increased by 2.4 percent.

(c) INCREASE IN BAQ.—Effective on January 1, 1996, the rates of basic allowance for

quarters of members of the uniformed services are increased by 5.2 percent.

(d) UNIFORMED SERVICES DEFINED.—For

purposes of this section, the term ‘‘uniformed services’’ does not include the National Oceanic and Atmospheric Administration.

SEC. 602. LIMITATION ON BASIC ALLOWANCE FOR

SUBSISTENCE FOR MEMBERS WITHOUT DEPENDENTS RESIDING IN

GOVERNMENT QUARTERS.

(a) PERCENTAGE LIMITATION.—Subsection

(b) of section 402 of title 37, United States

Code, is amended by adding after the last

sentence the following new paragraph:

‘‘(4) In the case of members of the Army,

Navy, Air Force, or Marine Corps who, when

present at their permanent duty station, reside without dependents in Government

quarters, the Secretary concerned may not

provide a basic allowance for subsistence to

more than 12 percent of such members under

the jurisdiction of the Secretary concerned.

The Secretary concerned may exceed such

percentage during a fiscal year if the Secretary determines that compliance would increase costs to the Government, would impose financial hardships on members otherwise entitled to a basic allowance for subsistence, or would reduce the quality of life

for such members. This paragraph shall not

apply to members described in the first sentence when the members are not residing at

their permanent duty station. The percentage limitation specified in this paragraph

shall be achieved as soon as possible after

the date of the enactment of this paragraph,

but in no case later than September 30,

1996.’’.

(b) STYLISTIC AMENDMENTS.—Such subsection is further amended—

(1) by redesignating paragraphs (1), (2), and

(3) as subparagraphs (A), (B), and (C);

(2) by inserting ‘‘(1)’’ after ‘‘(b)’’;

(3) by designating the second sentence as

paragraph (2); and

(4) by designating the fifth sentence as

paragraph (3).

(c) CONFORMING AMENDMENTS.—(1) Subsection (e) of such section is amended—

(A) in paragraph (1), by striking out ‘‘the

third sentence of subsection (b)’’ and inserting in lieu thereof ‘‘subsection (b)(2)’’; and

(B) in paragraph (2), by striking out ‘‘subsection (b)’’ and inserting in lieu thereof

‘‘subsection (b)(2)’’.

(2) Section 1012 of title 37, United States

Code, is amended by striking out ‘‘the last

sentence of section 402(b)’’ and inserting in

lieu thereof ‘‘section 402(b)(3)’’.

(d) REPORT REQUIRED.—Not later than

March 31, 1996, the Secretary of Defense shall

submit to Congress a report identifying, for

the Army, Navy, Air Force, and the Marine

Corps—

(1) the number of members without dependents who reside in Government quarters at

their permanent duty stations and receive a

basic allowance for subsistence under section

402 of title 37, United States Code;

(2) such number as a percentage of the

total number of members without dependents who reside in Government quarters;

(3) a recommended maximum percentage of

members without dependents who reside in

Government quarters at their permanent

duty station and should receive a basic allowance for subsistence; and

(4) the reasons such maximum percentage

was selected.

SEC. 603. AUTHORIZATION OF PAYMENT OF

BASIC ALLOWANCE FOR QUARTERS

TO ADDITIONAL MEMBERS ASSIGNED TO SEA DUTY.

(a) EXPANSION OF ELIGIBLE MEMBERS.—Section 403(c)(2) of title 37, United States Code,

is amended—

(1) in the first sentence, by striking out

‘‘E–7’’ and inserting in lieu thereof ‘‘E–6’’;

and

(2) in the second sentence, by striking out

‘‘E–6’’ and inserting in lieu thereof ‘‘E–5’’.

(b) EFFECTIVE DATE.—The amendments

made by subsection (a) shall take effect on

July 1, 1996.

SEC. 604. ESTABLISHMENT OF MINIMUM

AMOUNTS OF VARIABLE HOUSING

ALLOWANCE FOR HIGH HOUSING

COST AREAS AND ADDITIONAL LIMITATION ON REDUCTION OF ALLOWANCE FOR CERTAIN MEMBERS.

(a) MINIMUM AMOUNTS OF VHA.—Subsection (c) of section 403a of title 37, United

States Code, is amended by striking out

paragraph (1) and inserting in lieu thereof

the following new paragraph:

‘‘(1) The monthly amount of a variable

housing allowance under this section for a

member of a uniformed service with respect

to an area is equal to the greater of the following:

‘‘(A) An amount equal to the difference

between—

‘‘(i) the median monthly cost of housing in

that area for members of the uniformed services serving in the same pay grade and with

the same dependency status as that member;

and

‘‘(ii) 80 percent of the median monthly cost

of housing in the United States for members

of the uniformed services serving in the same

pay grade and with the same dependency status as that member.

‘‘(B) An amount determined by the Secretary of Defense as the minimum necessary

to meet the cost of adequate housing in that

area, as determined by the Secretary, for all

residents in that area with an appropriate

income level selected by the Secretary.’’.

(b) LIMITATION ON REDUCTION IN VHA.—

Paragraph (3) of such subsection is amended

by adding at the end the following new sentence: ‘‘However, on and after January 1,

1996, the monthly amount of a variable housing allowance under this section for a member of a uniformed service with respect to an

area may not be reduced so long as the member retains uninterrupted eligibility to receive a variable housing allowance within

that area and the member’s certified housing

costs are not reduced, as indicated by certifications provided by the member under subsection (b)(4).’’.

(c) EFFECT ON TOTAL AMOUNT AVAILABLE

FOR VHA.—Subsection (d)(3) of such section

is amended by inserting after the first sentence the following new sentence: ‘‘In addition, the total amount determined under

paragraph (1) shall be adjusted to ensure

that sufficient amounts are available to

allow payment of any additional variable

housing allowance necessary as a result of

paragraph (1)(B) and the requirements of the

second sentence of paragraph (3).’’

(d) CONFORMING AMENDMENTS.—Subsection

(c) of such section is further amended—

(1) in paragraph (3), as amended by subsection (b), by striking out ‘‘this subsection’’

and inserting in lieu thereof ‘‘paragraph

(1)(A) or minimum levels of variable housing

allowances under paragraph (1)(B)’’; and

(2) in paragraph (5), by inserting ‘‘or minimum levels of variable housing allowances’’

after ‘‘costs of housing’’.

(e) DELAYED IMPLEMENTATION OF MINIMUM

AMOUNTS OF VHA.—Subsection (c)(1)(B) of

section 403a of title 37, United States Code,

as added by subsection (a), shall be used to

determine the monthly amount of a variable
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1995 T80.11

housing allowance under such section for

members of the uniformed services only for

months beginning after June 30, 1996.

(f) REPORT ON IMPLEMENTATION.—Not later

than June 1, 1996, the Secretary of Defense

shall submit to Congress a report describing

the procedures to be used to implement the

amendments made by this section and the

costs of such amendments.

SEC. 605. CLARIFICATION OF LIMITATION ON RECEIPT OF FAMILY SEPARATION ALLOWANCE.

Section 427(b)(4) of title 37, United States

Code, is amended by inserting before the period at the end of the first sentence the following: ‘‘unless such entitlement is based on

paragraph (1)(B)’’.

Subtitle B—Bonuses and Special and

Incentive Pays

SEC. 611. EXTENSION OF CERTAIN BONUSES FOR

RESERVE FORCES.

(a) SELECTED RESERVE REENLISTMENT

BONUS.—Section 308b(f) of title 37, United

States Code, is amended by striking out

‘‘September 30, 1996’’ and inserting in lieu

thereof ‘‘September 30, 1998’’.

(b) SELECTED RESERVE ENLISTMENT

BONUS.—Section 308c(e) of such title is

amended by striking out ‘‘September 30,

1996’’ and inserting in lieu thereof ‘‘September 30, 1998’’.

(c) SELECTED RESERVE AFFILIATION

BONUS.—Section 308e(e) of such title is

amended by striking out ‘‘September 30,

1996’’ and inserting in lieu thereof ‘‘September 30, 1998’’.

(d) READY RESERVE ENLISTMENT AND REENLISTMENT BONUS.—Section 308h(g) of such

title is amended by striking out ‘‘September

30, 1996’’ and inserting in lieu thereof ‘‘September 30, 1998’’.

(e) PRIOR SERVICE ENLISTMENT BONUS.—

Section 308i(i) of such title is amended by

striking out ‘‘September 30, 1996’’ and inserting in lieu thereof ‘‘September 30, 1998’’.

SEC. 612. EXTENSION OF CERTAIN BONUSES AND

SPECIAL PAY FOR NURSE OFFICER

CANDIDATES, REGISTERED NURSES,

AND NURSE ANESTHETISTS.

(a) NURSE OFFICER CANDIDATE ACCESSION

PROGRAM.—Section 2130a(a)(1) of title 10,

United States Code, is amended by striking

out ‘‘September 30, 1996’’ and inserting in

lieu thereof ‘‘September 30, 1998’’.

(b) ACCESSION BONUS FOR REGISTERED

NURSES.—Section 302d(a)(1) of title 37,

United States Code, is amended by striking

out ‘‘September 30, 1996’’ and inserting in

lieu thereof ‘‘September 30, 1998’’.

(c) INCENTIVE SPECIAL PAY FOR NURSE ANESTHETISTS.—Section 302e(a)(1) of title 37,

United States Code, is amended by striking

out ‘‘September 30, 1996’’ and inserting in

lieu thereof ‘‘September 30, 1998’’.

SEC. 613. EXTENSION OF AUTHORITY RELATING

TO PAYMENT OF OTHER BONUSES

AND SPECIAL PAYS.

(a) AVIATION OFFICER RETENTION BONUS.—

Section 301b(a) of title 37, United States

Code, is amended by striking out ‘‘September 30, 1995’’ and inserting in lieu thereof

‘‘September 30, 1998’’.

(b) REENLISTMENT BONUS FOR ACTIVE MEMBERS.—Section 308(g) of such title is amended by striking out ‘‘September 30, 1996’’ and

inserting in lieu thereof ‘‘September 30,

1998’’.

(c) ENLISTMENT BONUSES FOR CRITICAL

SKILLS.—Sections 308a(c) and 308f(c) of such

title are each amended by striking out ‘‘September 30, 1996’’ and inserting in lieu thereof

‘‘September 30, 1998’’.

(d) SPECIAL PAY FOR ENLISTED MEMBERS OF

THE SELECTED RESERVE ASSIGNED TO CERTAIN

HIGH PRIORITY UNITS.—Section 308d(c) of

such title is amended by striking out ‘‘September 30, 1996’’ and inserting in lieu thereof

‘‘September 30, 1998’’.

(e) SPECIAL PAY FOR NUCLEAR-QUALIFIED

OFFICERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section 312(e) of such title is amended

by striking out ‘‘September 30, 1996’’ and inserting in lieu thereof ‘‘September 30, 1998’’.

(f) NUCLEAR CAREER ACCESSION BONUS.—

Section 312b(c) of such title is amended by

striking out ‘‘September 30, 1996’’ and inserting in lieu thereof ‘‘September 30, 1998’’.

(g) NUCLEAR CAREER ANNUAL INCENTIVE

BONUS.—Section 312c(d) of such title is

amended by striking out ‘‘October 1, 1996’

and inserting in lieu thereof ‘‘October 1,

1998’’.

(h) REPAYMENT OF EDUCATION LOANS FOR

CERTAIN HEALTH PROFESSIONALS WHO SERVE

IN THE SELECTED RESERVE.—Section 16302(d)

of title 10, United States Code, is amended by

striking out ‘‘October 1, 1996’’ and inserting

in lieu thereof ‘‘October 1, 1998’’.

SEC. 614. CODIFICATION AND EXTENSION OF SPECIAL PAY FOR CRITICALLY SHORT

WARTIME HEALTH SPECIALISTS IN

THE SELECTED RESERVES.

(a) SPECIAL PAY AUTHORIZED.—(1) Chapter 5

of title 37, United States Code, is amended by

inserting after section 302f the following new

section:

‘‘§ 302g. Special pay: Selected Reserve health

care professionals in critically short wartime specialties

‘‘(a) SPECIAL PAY AUTHORIZED.—An officer

of a reserve component of the armed forces

described in subsection (b) who executes a

written agreement under which the officer

agrees to serve in the Selected Reserve of an

armed force for a period of not less than one

year nor more than three years, beginning

on the date the officer accepts the award of

special pay under this section, may be paid

special pay at an annual rate not to exceed

$10,000.

‘‘(b) ELIGIBLE OFFICERS.—An officer referred to in subsection (a) is an officer in a

health care profession who is qualified in a

specialty designated by regulations as a

critically short wartime specialty.

‘‘(c) TIME FOR PAYMENT.—Special pay

under this section shall be paid annually at

the beginning of each twelve-month period

for which the officer has agreed to serve.

‘‘(d) REFUND REQUIREMENT.—An officer who

voluntarily terminates service in the Selected Reserve of an armed force before the

end of the period for which a payment was

made to such officer under this section shall

refund to the United States the full amount

of the payment made for the period on which

the payment was based.

‘‘(e) INAPPLICABILITY OF DISCHARGE IN

BANKRUPTCY.—A discharge in bankruptcy

under title 11 that is entered less than five

years after the termination of an agreement

under this section does not discharge the

person receiving special pay under the agreement from the debt arising under the agreement.

‘‘(f) TERMINATION OF AGREEMENT AUTHORITY.—No agreement under this section may

be entered into after September 30, 1998.’’.

(2) The table of sections at the beginning of

such chapter is amended by inserting after

the item relating to section 302f the following new item:

‘‘302g. Special pay: Selected Reserve health

care professionals in critically

short wartime specialties.’’.

(b) CONFORMING AMENDMENT.—Section 303a

of title 37, United States Code is amended by

striking out ‘‘302, 302a, 302b, 302c, 302d, 302e,’’

each place it appears and inserting in lieu

thereof ‘‘302 through 302g,’’.

(c) CONFORMING REPEAL.—(1) Section 613 of

the National Defense Authorization Act, Fiscal Year 1989 (Public Law 100–456; 37 U.S.C.

302 note) is repealed.

(2) The repeal of section 613 of the National

Defense Authorization Act, Fiscal Year 1989,

by paragraph (1) shall not affect the validity

or terms of any agreement entered into

under such section before the date of the enactment of this Act.

SEC. 615. CHANGE IN ELIGIBILITY REQUIREMENTS FOR CONTINUOUS MONTHLY

AVIATION INCENTIVE PAY.

(a) LOWER INCENTIVE PAY GATE.—Section

301a(a)(4) of title 37, United States Code, is

amended by striking out ‘‘9’’ in the first sentence and inserting in lieu thereof ‘‘8’’.

(b) EFFECTIVE DATE.—The amendment

made by subsection (a) shall take effect on

October 1, 1995.

SEC. 616. CONTINUOUS ENTITLEMENT TO CAREER SEA PAY FOR CREWMEMBERS

OF SHIPS DESIGNATED AS TENDERS.

(a) CONTINUOUS ENTITLEMENT.—Section

305a(d)(1)(A) of title 37, United States Code,

is amended—

(1) by striking out ‘‘or’’ after ‘‘under way’’

and inserting in lieu thereof a comma; and

(2) by inserting before the semicolon at the

end the following: ‘‘, or while serving as a

member of a tender-class ship (with the hull

classification of submarine or destroyer)’’.

(b) EFFECTIVE DATE.—The amendments

made by subsection (a) shall take effect on

October 1, 1995.

SEC. 617. INCREASE IN MAXIMUM RATE OF SPECIAL DUTY ASSIGNMENT PAY FOR

ENLISTED MEMBERS SERVING AS

RECRUITERS.

(a) SPECIAL MAXIMUM RATE FOR RECRUITERS.—Section 307(a) of title 37, United States

Code, is amended by adding at the end the

following new sentence: ‘‘In the case of a

member who is serving as a military recruiter and is eligible for special duty assignment pay under this subsection on account of such duty, the Secretary concerned

may increase the monthly rate of special

duty assignment pay for the member to not

more than $375.’’.

(b) EFFECTIVE DATE.—The amendment

made by subsection (a) shall take effect on

January 1, 1996.

Subtitle C—Travel and Transportation

Allowances

SEC. 621. AUTHORIZATION OF RETURN TO

UNITED STATES OF FORMERLY DEPENDENT CHILDREN OF MEMBERS.

(a) RETURN AT GOVERNMENT EXPENSE.—

Section 406(h)(1) of title 37, United States

Code, is amended in the last sentence—

(1) by striking out ‘‘who became 21 years of

age’’ and inserting in lieu thereof ‘‘who, by

reason of age or graduation from (or cessation of enrollment in) an institution of

higher education, would otherwise cease to

be a dependent of the member’’; and

(2) by inserting ‘‘still’’ after ‘‘shall’’.

(b) EFFECTIVE DATE.—The amendments

made by this section shall take effect on October 1, 1995.

SEC. 622. AUTHORIZATION OF DISLOCATION ALLOWANCE FOR MOVES IN CONNECTION WITH BASE REALIGNMENTS

AND CLOSURES.

(a) DISLOCATION ALLOWANCE AUTHORIZED.—

Subsection (a) of section 407 of title 37,

United States Code, is amended—

(1) by striking out ‘‘or’’ at the end of paragraph (3);

(2) by striking out the period at the end of

paragraph (4)(B) and inserting in lieu thereof

‘‘; or’’; and

(3) by inserting after paragraph (4)(B) the

following new paragraph:

‘‘(5) the member’s dependents actually

make an authorized move in connection with

the member’s directed order to move as a result of the closure or realignment of a military installation.’’.

(b) CONFORMING AMENDMENTS.—Such section is further amended—

(1) in the sentence following subsection

(a)(4)—
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(A) by striking out ‘‘clause (3) or (4)(B)’’

and inserting in lieu thereof ‘‘paragraph (3)

or (4)(B)’’; and

(B) by striking out ‘‘clause (1)’’ and inserting in lieu thereof ‘‘paragraph (1) or (5)’’;

(2) in subsection (b)—

(A) by striking out ‘‘subsection (a)(3) or

(a)(4)(B)’’ and inserting in lieu thereof ‘‘paragraph (3) or (4)(B) of subsection (a)’’; and

(B) by striking out ‘‘subsection (a)(1)’’ and

inserting in lieu thereof ‘‘paragraph (1) or (5)

of subsection (a)’’.

SEC. 623. REPEAL OF PROHIBITION ON PAYMENT

OF LODGING EXPENSES WHEN ADEQUATE GOVERNMENT QUARTERS

ARE AVAILABLE.

(a) REPEAL.—Section 1589 of title 10,

United States Code, is repealed.

(b) CLERICAL AMENDMENT.—The table of

sections at the beginning of chapter 81 of

such title is amended by striking out the

item relating to section 1589.

Subtitle D—Other Matters

SEC. 631. ELIMINATION OF UNNECESSARY ANNUAL REPORTING REQUIREMENTS

REGARDING COMPENSATION MATTERS.

(a) REPORT ON TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS.—(1)

Section 406 of title 37, United States Code, is

amended—

(A) by striking out subsection (i); and

(B) by redesignating subsections (j), (k),

(l), (m), and (n) as subsections (i), (j), (k), (l),

and (m), respectively.

(2) Section 2634(d) of title 10, United States

Code, is amended by striking out ‘‘section

406(l) of title 37’’ and inserting in lieu thereof

‘‘section 406(k) of title 37’’.

(b) ANNUAL REVIEW OF PAY AND ALLOWANCES.—Subsection (a) of section 1008 of title

37, United States Code, is amended to read as

follows:

‘‘(a) Not later than March 31 of each year,

the President shall submit to Congress such

recommendations (if any) as the President

considers appropriate for adjustments in the

rates of pay and allowances authorized by

this title for members of the uniformed services.’’.

SEC. 632. STUDY REGARDING JOINT PROCESS

FOR DETERMINING LOCATION OF

RECRUITING STATIONS.

(a) STUDY REQUIRED.—The Secretary of Defense shall conduct a study regarding the

feasibility of—

(1) using a joint process among the Armed

Forces for determining the location of recruiting stations and the number of military

personnel required to operate such stations;

and

(2) basing such determinations on market

research and analysis conducted jointly by

the Armed Forces.

(b) REPORT.—Not later than March 31, 1996,

the Secretary of Defense shall submit to

Congress a report describing the results of

the study. The report shall include a recommended method for measuring the efficiency of individual recruiting stations, such

as cost per accession or other efficiency

standard, as determined by the Secretary.

SEC. 633. ELIMINATION OF DISPARITY BETWEEN

EFFECTIVE DATES FOR MILITARY

AND CIVILIAN RETIREE COST-OFLIVING ADJUSTMENTS FOR FISCAL

YEAR 1996.

(a) IN GENERAL.—The fiscal year 1996 increase in military retired pay shall (notwithstanding subparagraph (B) of section

1401a(b)(2) of title 10, United States Code)

first be payable as part of such retired pay

for the month of March 1996.

(b) DEFINITIONS.—For the purposes of subsection (a):

(1) The term ‘‘fiscal year 1996 increase in

military retired pay’’ means the increase in

retired pay that, pursuant to paragraph (1) of

section 1401a(b) of title 10, United States

Code, becomes effective on December 1, 1995.

(2) The term ‘‘retired pay’’ includes retainer pay.

(c) LIMITATION.—Subsection (a) shall be effective only if there is appropriated to the

Department of Defense Military Retirement

Fund (in an Act making appropriations for

the Department of Defense for fiscal year

1996 that is enacted before March 1, 1996)

such amount as is necessary to offset increased outlays to be made from that fund

during fiscal year 1996 by reason of the provisions of subsection (a).

(d) AUTHORIZATION OF APPROPRIATIONS.—

There is authorized to be appropriated for

fiscal year 1996 to the Department of Defense

Military Retirement Fund the sum of

$403,000,000 to offset increased outlays to be

made from that fund during fiscal year 1996

by reason of the provisions of subsection (a).

TITLE VII—HEALTH CARE PROVISIONS

Subtitle A—Health Care Services

SEC. 701. MODIFICATION OF REQUIREMENTS REGARDING ROUTINE PHYSICAL EXAMINATIONS AND IMMUNIZATIONS

UNDER CHAMPUS.

Section 1079(a) of title 10, United States

Code, is amended by striking out paragraph

(2) and inserting in lieu thereof the following

new paragraph:

‘‘(2) consistent with such regulations as

the Secretary of Defense may prescribe regarding the content of health promotion and

disease prevention visits, the schedule of pap

smears and mammograms, and the types and

schedule of immunizations—

‘‘(A) for dependents under six years of age,

both health promotion and disease prevention visits and immunizations may be provided; and

‘‘(B) for dependents six years of age or

older, health promotion and disease prevention visits may be provided in connection

with immunizations or with diagnostic or

preventive pap smears and mammograms;’’.

SEC. 702. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL CARE AND DEATH

AND DISABILITY BENEFITS FOR

CERTAIN RESERVISTS.

(a) MEDICAL AND DENTAL CARE.—Section

1074a(a) of title 10, United States Code, is

amended by adding at the end the following

new paragraph:

‘‘(3) Each member of the armed forces who

incurs or aggravates an injury, illness, or

disease in the line of duty while remaining

overnight, between successive periods of inactive-duty training, at or in the vicinity of

the site of the inactive-duty training, and

the site is outside reasonable commuting

distance from the member’s residence.’’.

(b) RECOVERY, CARE, AND DISPOSITION OF

REMAINS.—Section 1481(a)(2) of title 10,

United States Code, is amended—

(1) in subparagraph (C), by striking out

‘‘or’’ at the end of the subparagraph;

(2) by redesignating subparagraph (D) as

subparagraph (E); and

(3) by inserting after subparagraph (C) the

following new subparagraph:

‘‘(D) remaining overnight, between successive periods of inactive-duty training, at or

in the vicinity of the site of the inactiveduty training, and the site is outside reasonable commuting distance from the member’s

residence; or’’.

(c) ENTITLEMENT TO BASIC PAY.—(1) Subsection (g)(1) of section 204 of title 37, United

States Code, is amended—

(A) in subparagraph (B), by striking out

‘‘or’’ at the end of the subparagraph;

(B) in subparagraph (C), by striking out

the period at the end of the subparagraph

and inserting in lieu thereof ‘‘; or’’; and

(C) by inserting after subparagraph (C) the

following new subparagraph:

‘‘(D) in line of duty while remaining overnight, between successive periods of inactive-duty training, at or in the vicinity of

the site of the inactive-duty training, and

the site is outside reasonable commuting

distance from the member’s residence.’’.

(2) Subsection (h)(1) of such section is

amended—

(A) in subparagraph (B), by striking out

‘‘or’’ at the end of the subparagraph;

(B) in subparagraph (C), by striking out

the period at the end of the subparagraph

and inserting in lieu thereof ‘‘; or’’; and

(C) by inserting after subparagraph (C) the

following new subparagraph:

‘‘(D) in line of duty while remaining overnight, between successive periods of inactive-duty training, at or in the vicinity of

the site of the inactive-duty training, and

the site is outside reasonable commuting

distance from the member’s residence.’’.

(d) COMPENSATION FOR INACTIVE-DUTY

TRAINING.—Section 206(a)(3) of title 37,

United States Code, is amended—

(1) in subparagraph (A), by striking out

‘‘or’’ at the end of clause (ii);

(2) in subparagraph (B), by striking out the

period at the end of the subparagraph and inserting in lieu thereof ‘‘; or’’; and

(3) by inserting after subparagraph (B) the

following new subparagraph:

‘‘(C) in line of duty while remaining overnight, between successive periods of inactive-duty training, at or in the vicinity of

the site of the inactive-duty training, and

the site is outside reasonable commuting

distance from the member’s residence.’’.

SEC. 703. MEDICAL AND DENTAL CARE FOR MEMBERS OF THE SELECTED RESERVE.

(a) MEMBERS OF EARLY DEPLOYING UNITS OF

THE ARMY SELECTED RESERVE.—Section 1074a

of title 10, United States Code, is amended—

(1) in subsection (c), by striking out ‘‘this

section’’ and inserting in lieu thereof ‘‘subsection (b)’’; and

(2) by adding at the end the following new

subsection:

‘‘(d)(1) The Secretary of the Army shall

provide to members of the Selected Reserve

of the Army who are assigned to units scheduled for deployment within 75 days after mobilization the following medical and dental

services:

‘‘(A) An annual medical screening.

‘‘(B) For members who are over 40 years of

age, a full physical examination not less

often than once every two years.

‘‘(C) An annual dental screening.

‘‘(D) The dental care identified in an annual dental screening as required to ensure

that a member meets the dental standards

required for deployment in the event of mobilization.

‘‘(2) The services provided under this subsection shall be provided at no cost to the

member.’’.

(b) VOLUNTARY DEMONSTRATION PROGRAM

TO IMPROVE DENTAL READINESS OF SELECTED

RESERVE.—(1) For members of the Selected

Reserve who are not covered by subsection

(a), the Secretary of Defense shall conduct a

demonstration program to offer such members affordable dental care for the purpose of

ensuring that such members meet the dental

standards required for deployment in the

event of mobilization. The Secretary shall

determine the geographical scope of the

demonstration program and the number of

members of the Selected Reserve who will be

invited to participate in the program. However, participation in the demonstration program shall be offered to the members of at

least one ground combat maneuver unit of

the Selected Reserve of the Army scheduled

for deployment within 90 days after mobilization.

(2) The Secretary may model the dental

demonstration program after the dependents’ dental program authorized under section 1076a of title 10, United States Code, except that participants in the demonstration
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program shall be responsible for all costs incurred to provide dental care under the program. The Secretary shall provide for allotment or deduction from the military pay of

participants as a means to pay any premiums required under the demonstration

program.

(3) The authority to carry out the dental

demonstration program under this subsection shall expire on September 30, 1997.

(c) EVALUATION OF DEMONSTRATION PROGRAM.—Not later than March 1, 1997, the Secretary shall submit to Congress a report

evaluating the success of the dental demonstration program conducted under subsection (b) in improving the dental readiness

of the Selected Reserve. The Secretary shall

submit a revised report under this subsection

not later than 30 days after the expiration of

the demonstration program.

(d) CONFORMING REPEALS.—Sections 1117

and 1118 of the Army National Guard Combat

Readiness Reform Act of 1992 (title XI of

Public Law 102–484; 10 U.S.C. 3077 note) are

repealed.

Subtitle B—TRICARE Program

SEC. 711. PRIORITY USE OF MILITARY TREATMENT FACILITIES FOR PERSONS ENROLLED IN MANAGED CARE INITIATIVES.

Section 1097(c) of title 10, United States

Code, is amended in the third sentence by

striking out ‘‘However, the Secretary may’’

and inserting in lieu thereof ‘‘Notwithstanding the preferences established by sections 1074(b) and 1076 of this title, the Secretary shall’’.

SEC. 712. STAGGERED PAYMENT OF ENROLLMENT FEES FOR TRICARE.

Section 1097(e) of title 10, United States

Code, is amended by adding at the end the

following new sentence: ‘‘Without imposing

additional costs on covered beneficiaries who

participate in contracts for health care services under this section or health care plans

offered under section 1099 of this title, the

Secretary shall permit such covered beneficiaries to pay, on a monthly or quarterly

basis, any enrollment fee required for such

participation.’’.

SEC. 713. REQUIREMENT OF BUDGET NEUTRALITY FOR TRICARE TO BE BASED

ON ENTIRE PROGRAM.

(a) CHANGE IN BUDGET NEUTRALITY REQUIREMENTS.—Subsection (c) of section 731 of

the National Defense Authorization Act for

Fiscal Year 1994 (Public Law 103–160; 10

U.S.C. 1073 note) is amended—

(1) by striking out ‘‘each managed health

care initiative that includes the option’’ and

inserting in lieu thereof ‘‘the TRICARE program’’; and

(2) by striking out ‘‘covered beneficiaries

who enroll in the option’’ and inserting in

lieu thereof ‘‘members of the uniformed services and covered beneficiaries who participate in the TRICARE program’’.

(b) ADDITION OF DEFINITION OF TRICARE

PROGRAM.—Subsection (d) of such section is

amended to read as follows:

‘‘(d) DEFINITIONS.—For purposes of this section:

‘‘(1) The term ‘covered beneficiary’ means

a beneficiary under chapter 55 of title 10,

United States Code, other than a beneficiary

under section 1074(a) of such title.

‘‘(2) The term ‘TRICARE program’ means

the managed health care program that is established by the Secretary of Defense under

the authority of chapter 55 of title 10, United

States Code, principally section 1097 of such

title, and includes the competitive selection

of contractors to financially underwrite the

delivery of health care services under the Civilian Health and Medical Program of the

Uniformed Services.’’.

SEC. 714. TRAINING IN HEALTH CARE MANAGEMENT AND ADMINISTRATION FOR

TRICARE LEAD AGENTS.

(a) PROVISION OF TRAINING.—Not later than

six months after the date of the enactment

of this Act, the Secretary of Defense shall

implement a professional educational program to provide appropriate training in

health care management and administration

to each commander of a military medical

treatment facility of the Department of Defense who is selected to serve as a lead agent

to coordinate the delivery of health care by

military and civilian providers under the

TRICARE program.

(b) TRICARE PROGRAM DEFINED.—For purposes of this section, the term ‘‘TRICARE

program’’ means the managed health care

program that is established by the Secretary

of Defense under the authority of chapter 55

of title 10, United States Code, principally

section 1097 of such title, and includes the

competitive selection of contractors to financially underwrite the delivery of health

care services under the Civilian Health and

Medical Program of the Uniformed Services.

(c) REPORT ON IMPLEMENTATION.—Not later

than six months after the date of the enactment of this Act, the Secretary of Defense

shall submit to Congress a report describing

the professional educational program implemented pursuant to this section.

SEC. 715. EVALUATION AND REPORT ON TRICARE

EFFECTIVENESS.

(a) EVALUATION REQUIRED.—The Secretary

of Defense shall arrange for an on-going evaluation of the effectiveness of the TRICARE

program in meeting the goals of increasing

the access of covered beneficiaries under

chapter 55 of title 10, United States Code, to

health care and improving the quality of

health care provided to covered beneficiaries, without increasing the costs incurred by the Government or covered beneficiaries. The evaluation shall specifically

address the impact of the TRICARE program

on military retirees with regard to access,

costs, and quality of health care services and

identify noncatchment areas in which the

HMO option of the TRICARE program will be

available. The Secretary shall use a federally

funded research and development center to

conduct the evaluation required by this section.

(b) ANNUAL REPORT.—Not later than March

1 of each year, the center conducting the

evaluation under subsection (a) shall submit

to Congress a report describing the results of

the evaluation during the preceding year.

(c) TRICARE PROGRAM DEFINED.—For purposes of this section, the term ‘‘TRICARE

program’’ means the managed health care

program that is established by the Secretary

of Defense under the authority of chapter 55

of title 10, United States Code, principally

section 1097 of such title, and includes the

competitive selection of contractors to financially underwrite the delivery of health

care services under the Civilian Health and

Medical Program of the Uniformed Services.

Subtitle C—Uniformed Services Treatment

Facilities

SEC. 721. LIMITATION ON EXPENDITURES TO

SUPPORT UNIFORMED SERVICES

TREATMENT FACILITIES AND LIMITATION ON NUMBER OF PARTICIPANTS IN USTF MANAGED CARE

PLANS.

Subsection (f) of section 1252 of the Department of Defense Authorization Act, 1984 (42

U.S.C. 248d), is amended to read as follows:

‘‘(f) LIMITATION ON EXPENDITURES AND PARTICIPANTS.—(1) The total amount of expenditures by the Secretary of Defense to carry

out this section and section 911 of the Military Construction Authorization Act, 1982 (42

U.S.C. 248c), for fiscal year 1996 may not exceed $300,000,000, adjusted by the Secretary

to reflect the inflation factor used by the Department of Defense for such year.

‘‘(2) During fiscal year 1996, the number of

covered beneficiaries under chapter 55 of

title 10, United States Code (including covered beneficiaries described in section

1086(d)(1) of such title), who are enrolled in

managed care plans offered by facilities described in subsection (a) and designated

under subsection (c) may not exceed the

number of such covered beneficiaries so enrolled as of October 1, 1994.’’.

SEC. 722. APPLICATION OF FEDERAL ACQUISITION REGULATION TO PARTICIPATION AGREEMENTS WITH UNIFORMED SERVICES TREATMENT FACILITIES.

(a) Section 718(c) of the National Defense

Authorization Act for Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1587) is amended—

(1) in the second sentence of paragraph (1),

by striking out ‘‘A participation agreement’’

and inserting in lieu thereof ‘‘Except as provided in paragraph (4), a participation agreement’’;

(2) by redesignating paragraph (4) as paragraph (6); and

(3) by inserting after paragraph (3) the following new paragraph:

‘‘(4) APPLICATION OF FEDERAL ACQUISITION

REGULATION.—On and after the date of the

enactment of this paragraph, Uniformed

Services Treatment Facilities and any participation agreement between Uniformed

Services Treatment Facilities and the Secretary of Defense shall be subject to the Federal Acquisition Regulation issued pursuant

to section 25(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 421(c)) notwithstanding any provision to the contrary

in such a participation agreement. The requirements regarding competition in the

Federal Acquisition Regulation shall apply

with regard to the negotiation of any new

participation agreement between the Uniformed Services Treatment Facilities and

the Secretary of Defense under this subsection or any other provision of law.’’.

(b) SENSE OF CONGRESS.—(1) Congress finds

that the Uniformed Services Treatment Facilities provide quality health care to the

120,000 Department of Defense beneficiaries

enrolled in the Uniformed Services Family

Health Plan provided by these facilities.

(2) In light of such finding, it is the sense

of Congress that the Uniformed Services

Family Health Plan provided by the Uniformed Services Treatment Facilities should

not be terminated for convenience under provisions of the Federal Acquisition Regulation by the Secretary of Defense before the

expiration of the current participation

agreements.

SEC. 723. DEVELOPMENT OF PLAN FOR INTEGRATING UNIFORMED SERVICES

TREATMENT FACILITIES IN MANAGED CARE PROGRAMS OF DEPARTMENT OF DEFENSE.

Section 718(c) of the National Defense Authorization Act for Fiscal Year 1991 (Public

Law 101–510; 104 Stat. 1587) is amended by inserting after paragraph (4), as added by section 722, the following new paragraph:

‘‘(5) PLAN FOR INTEGRATING FACILITIES.—(A)

Not later than March 1, 1996, the Secretary

of Defense shall submit to Congress a plan

under which Uniformed Services Treatment

Facilities, on or before September 30, 1997,

shall be included in the exclusive health care

provider networks established by the Secretary for the geographic regions in which

the facilities are located. The Secretary

shall address in the plan the feasibility of

implementing the managed care plan of the

Uniformed Services Treatment Facilities,

known as Option II, on a mandatory basis for

all USTF Medicare-eligible beneficiaries and

the potential cost savings to the Military

Health Care Program that could be achieved

under such option.

‘‘(B) The plan developed under this paragraph shall be consistent with the require-
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ments specified in paragraph (4). If the plan

is not submitted to Congress by the expiration date of the participation agreements entered into under this section, the participation agreements shall remain in effect, at

the option of the Uniformed Services Treatment Facilities, until the end of the 180-day

period beginning on the date the plan is finally submitted.

‘‘(C) For purposes of this paragraph, the

term ‘USTF Medicare-eligible beneficiaries’

means covered beneficiaries under chapter 55

of title 10, United States Code, who are enrolled in a managed health plan offered by

the Uniformed Services Treatment Facilities

and entitled to hospital insurance benefits

under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.).’’.

SEC. 724. EQUITABLE IMPLEMENTATION OF UNIFORM COST SHARING REQUIREMENTS FOR UNIFORMED SERVICES

TREATMENT FACILITIES.

(a) TIME FOR FEE IMPLEMENTATION.—The

uniform managed care benefit fee and copayment schedule developed by the Secretary of

Defense for use in all managed care initiatives of the military health service system,

including the managed care program of the

Uniformed Services Treatment Facilities,

shall be extended to the managed care program of a Uniformed Services Treatment Facility only after the later of—

(1) the implementation of the TRICARE regional program covering the service area of

the Uniformed Services Treatment Facility;

or

(2) the end of the 180-day period beginning

on the date of the enactment of this Act.

(b) SUBMISSION OF ACTUARIAL ESTIMATES.—

Paragraph (2) of subsection (a) shall operate

as a condition on the extension of the uniform managed care benefit fee and copayment schedule to the Uniformed Services

Treatment Facilities only if the Uniformed

Services Treatment Facilities submit to the

Comptroller General of the United States,

within 30 days after the date of the enactment of this Act, actuarial estimates in support of their contention that the extension

of such fees and copayments will have an adverse effect on the operation of the Uniformed Services Treatment Facilities and

the enrollment of participants.

(c) EVALUATION.—Except as provided in

paragraph (2), not later than 90 days after

the date of the enactment of this Act, the

Comptroller General shall submit to Congress the results of an evaluation of the effect on the Uniformed Services Treatment

Facilities of the extension of the uniform

benefit fee and copayment schedule to the

Uniformed Services Treatment Facilities.

The evaluation shall include an examination

of whether the benefit fee and copayment

schedule may—

(A) cause adverse selection of enrollees;

(B) be inappropriate for a fully at-risk program similar to civilian health maintenance

organizations; or

(C) result in an enrolled population dissimilar to the general beneficiary population.

(2) The Comptroller General shall not be

required to prepare or submit the evaluation

under paragraph (1) if the Uniformed Services Treatment Facilities fail to satisfactorily comply with subsection (b), as determined by the Comptroller General.

Subtitle D—Other Changes to Existing Laws

Regarding Health Care Management

SEC. 731. MAXIMUM ALLOWABLE PAYMENTS TO

INDIVIDUAL HEALTH-CARE PROVIDERS UNDER CHAMPUS.

(a) MAXIMUM PAYMENT.—Subsection (h) of

section 1079 of title 10, United States Code, is

amended by striking out paragraph (1) and

inserting in lieu thereof the following new

paragraph:

‘‘(1) Payment for a charge for services by

an individual health care professional (or

other noninstitutional health care provider)

for which a claim is submitted under a plan

contracted for under subsection (a) may not

exceed the lesser of—

‘‘(A) an amount equivalent to the 80th percentile of billed charges made for similar

services in the same locality during a 12-

month base period; or

‘‘(B) an amount determined to be appropriate, to the extent practicable, in accordance with the same reimbursement rules as

apply to payments for similar services under

title XVIII of the Social Security Act (42

U.S.C. 1395 et seq.).’’.

(b) COMPARISON TO MEDICARE PAYMENTS.—

Such subsection is further amended by adding at the end the following new paragraph:

‘‘(3) For the purposes of paragraph (1)(B),

the appropriate payment amount shall be determined by the Secretary of Defense, in

consultation with the other administering

Secretaries.’’.

(c) EXCEPTIONS AND LIMITATIONS.—Such

subsection is further amended by inserting

after paragraph (3), as added by subsection

(b), the following new paragraphs:

‘‘(4) The Secretary of Defense, in consultation with the other administering Secretaries, shall prescribe regulations to provide

for such exceptions to the payment limitations under paragraph (1) as the administering Secretaries determine to be necessary to assure that covered beneficiaries

retain adequate access to health care services. Such exceptions may include the payment of amounts greater than the amount

allowed under paragraph (1) when enrollees

in managed care programs obtain covered

emergency services from nonparticipating

providers. To transition from the payment

methods in effect before the date of the enactment of this paragraph to the methodology required by paragraph (1), the amount

allowable for any service may not be reduced

by more than 15 percent from the amount allowed for the same service during the immediately preceding 12-month period (or other

period as established by the Secretary of Defense).

‘‘(5) The Secretary of Defense, in consultation with the other administering Secretaries, shall prescribe regulations to establish limitations (similar to those limitations

established under title XVIII of the Social

Security Act (42 U.S.C. 1395 et seq.)) on beneficiary liability for charges of an individual

health care professional (or other noninstitutional health care provider).’’.

(d) CONFORMING AMENDMENT.—Paragraph

(2) of such subsection is amended by striking

out ‘‘paragraph (1)’’ and inserting in lieu

thereof ‘‘paragraph (1)(A)’’.

(e) REPORT ON EFFECT OF AMENDMENTS.—

Not later than March 1, 1996, the Secretary

of Defense shall submit to Congress a report

analyzing the effect of the amendments

made by this section on the ability or willingness of individual health care professionals and other noninstitutional health

care providers to participate in the Civilian

Health and Medical Program of the Uniformed Services.

SEC. 732. EXPANSION OF EXISTING RESTRICTION

ON USE OF DEFENSE FUNDS FOR

ABORTIONS.

(a) INCLUSION OF DEFENSE FACILITIES.—Section 1093 of title 10, United States Code, is

amended by inserting after ‘‘Department of

Defense’’ the following: ‘‘, and medical treatment facilities or other facilities of the Department of Defense,’’.

(b) CLERICAL AMENDMENTS.—(1) The heading of such section is amended by inserting

‘‘or facilities’’ after ‘‘funds’’.

(2) The item relating to such section in the

table of sections at the beginning of chapter

55 of such title is amended to read as follows:

‘‘1093. Restriction on use of funds or facilities for abortions.’’.

SEC. 733. IDENTIFICATION OF THIRD-PARTY

PAYER SITUATIONS.

Section 1095 of title 10, United States Code,

is amended by adding at the end the following new subsection:

‘‘(k)(1) To improve the administration of

this section and sections 1079(j)(1) and 1086(d)

of this title, the Secretary of Defense, in

consultation with the other administering

Secretaries, may prescribe regulations to

collect information regarding insurance,

medical service, or health plans of thirdparty payers held by covered beneficiaries.

‘‘(2) The collection of information under

regulations issued under paragraph (1) shall

be conducted in the same manner as provided

in section 1862(b)(5) of the Social Security

Act (42 U.S.C. 1395y(b)(5)). The Secretary

may provide for obtaining from the Commissioner of Social Security employment information comparable to the information provided to the Administrator of the Health

Care Financing Administration pursuant to

such section. Such regulations may require

the mandatory disclosure of social security

account numbers for all covered beneficiaries.

‘‘(3) The Secretary of Defense may disclosure relevant employment information collected under this subsection to fiscal intermediaries or other designated contractors.

‘‘(4) The Secretary of Defense may provide

for contacting employers of covered beneficiaries to obtain group health plan information comparable to the information authorized to be obtained under section

1862(b)(5)(C) of the Social Security Act (42

U.S.C. 1395y(b)(5)(C)). Clause (ii) of such section regarding the imposition of civil money

penalties shall apply to the collection of information under this paragraph.

‘‘(5) Information obtained under this subsection may not be disclosed for any purpose

other than to carry out the purpose of this

section and sections 1079(j)(1) and 1086(d) of

this title.’’.

SEC. 734. REDESIGNATION OF MILITARY HEALTH

CARE ACCOUNT AS DEFENSE

HEALTH PROGRAM ACCOUNT AND

TWO-YEAR AVAILABILITY OF CERTAIN ACCOUNT FUNDS.

(a) REDESIGNATION.—Section 1100 of title

10, United States Code, is amended—

(1) in subsection (a)(1)—

(A) by striking out ‘‘Military Health Care

Account’’ and inserting in lieu thereof ‘‘Defense Health Program Account’’; and

(B) by striking out ‘‘the Civilian Health

and Medical Program of the Uniformed Services’’ and inserting in lieu thereof ‘‘medical

and health care programs of the Department

of Defense’’; and

(2) in subsection (b)—

(A) by striking out ‘‘entering into a contract’’ and inserting in lieu thereof ‘‘conducting programs and activities under this

chapter, including contracts entered into’’;

and

(B) by inserting a comma after ‘‘title’’.

(b) TWO YEAR AVAILABILITY OF CERTAIN APPROPRIATIONS.—Subsection (a)(2) of such section is amended to read as follows:

‘‘(2) Three percent of the funds appropriated annually for the operation and maintenance of the programs and activities authorized by this chapter shall remain available for obligation until the end of the fiscal

year following the fiscal year for which the

funds were appropriated. This paragraph

shall not apply for a fiscal year to the extent

that a provision of law specifically refers to

this paragraph and specifies that this paragraph shall not apply for that fiscal year.’’.

(c) CONFORMING AMENDMENTS.—Such section is further amended—

(1) by striking out subsections (c), (d), and

(f); and
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(2) by redesignating subsection (e) as subsection (c).

(d) CLERICAL AMENDMENTS.—(1) The heading of such section is amended to read as follows:

‘‘§ 1100. Defense Health Program Account’’.

(2) The item relating to such section in the

table of sections at the beginning of chapter

55 of such title is amended to read as follows:

‘‘1100. Defense Health Program Account.’’.

SEC. 735. EXPANSION OF FINANCIAL ASSISTANCE

PROGRAM FOR HEALTH-CARE PROFESSIONALS IN RESERVE COMPONENTS TO INCLUDE DENTAL SPECIALTIES.

Section 16201(b) of title 10, United States

Code, is amended—

(1) in the subsection heading, by inserting

‘‘AND DENTISTS’’ after ‘‘PHYSICIANS’’;

(2) in paragraph (1)(A), by inserting ‘‘or

dental school’’ after ‘‘medical school’’;

(3) in paragraphs (1)(B) and (2)(B), by inserting ‘‘or dental officer’’ after ‘‘medical officer’’; and

(4) in paragraph (1)(C), by striking out

‘‘physicians in a medical specialty’’ and inserting in lieu thereof ‘‘physicians or dentists in a medical or dental specialty’’.

SEC. 736. ELIMINATION OF UNNECESSARY ANNUAL REPORTING REQUIREMENTS

REGARDING MILITARY HEALTH

CARE.

Section 1252 of the Department of Defense

Authorization Act, 1984 (42 U.S.C. 248d), is

amended by striking out subsection (d).

Subtitle E—Other Matters

SEC. 741. TERMINATION OF PROGRAM TO TRAIN

AND UTILIZE MILITARY PSYCHOLOGISTS TO PRESCRIBE PSYCHOTROPIC MEDICATIONS.

(a) TERMINATION.—Immediately after the

date of the enactment of this Act, the Secretary of Defense shall terminate the demonstration pilot program for training and

utilizing military psychologists in the prescription of psychotropic medications, which

is referred to in section 8097 of the Department of Defense Appropriations Act, 1991

(Public Law 101–511; 104 Stat. 1897). None of

the funds appropriated to the Department of

Defense for a fiscal year after fiscal year 1995

may be used to train psychologists to be able

to prescribe psychotropic medications.

(b) EFFECT ON AUTHORITY TO PRESCRIBE

PSYCHOTROPIC MEDICATIONS.—Psychologists

who participated in the demonstration pilot

training program regarding the prescription

of psychotropic medications shall not be authorized to prescribe such medications despite the completion of training under the

program.

SEC. 742. WAIVER OF COLLECTION OF PAYMENTS

DUE FROM CERTAIN PERSONS UNAWARE OF LOSS OF CHAMPUS ELIGIBILITY.

(a) AUTHORITY TO WAIVE COLLECTION.—The

administering Secretaries may waive the

collection of payments otherwise due from a

person described in subsection (b) as a result

of the receipt by the person of health benefits under section 1086 of title 10, United

States Code, after the termination of the

person’s eligibility for such benefits.

(b) PERSONS ELIGIBLE FOR WAIVER.—A person shall be eligible for relief under subsection (a) if the person—

(1) is a person described in paragraph (1) of

subsection (d) of section 1086 of title 10,

United States Code;

(2) in the absence of such paragraph, would

have been eligible for health benefits under

such section; and

(3) at the time of the receipt of such benefits, satisfied the criteria specified in subparagraphs (A) and (B) of paragraph (2) of

such subsection.

(c) EXTENT OF WAIVER AUTHORITY.—The authority to waive the collection of payments

pursuant to this section shall apply with regard to health benefits provided under section 1086 of title 10, United States Code, to

persons described in subsection (b) during

the period beginning on January 1, 1967, and

ending on the later of—

(1) the termination date of any special enrollment period provided under title XVIII of

the Social Security Act (42 U.S.C. 1395c et

seq.) specifically for such persons; and

(2) July 1, 1996.

(d) DEFINITIONS.—For purposes of this section, the term ‘‘administering Secretaries’’

has the meaning given such term in section

1072(3) of title 10, United States Code.

SEC. 743. NOTIFICATION OF CERTAIN CHAMPUS

COVERED BENEFICIARIES OF LOSS

OF CHAMPUS ELIGIBILITY.

Section 1086(d) of title 10, United States

Code, is amended by adding at the end the

following new paragraph:

‘‘(4) The administering Secretaries shall

develop a mechanism by which persons described in paragraph (1) who satisfy only the

criteria specified in subparagraphs (A) and

(B) of paragraph (2), but not subparagraph

(C) of such paragraph, are promptly notified

of their ineligibility for health benefits

under this section. The administering Secretaries shall consult with the Secretary of

Health and Human Services and the Health

Care Financing Administration regarding a

method to promptly identify persons requiring notice under this subsection.’’.

SEC. 744. DEMONSTRATION PROGRAM TO TRAIN

MILITARY MEDICAL PERSONNEL IN

CIVILIAN SHOCK TRAUMA UNITS.

(a) DEMONSTRATION PROGRAM.—Not later

than April 1, 1996, the Secretary of Defense

shall implement a demonstration program to

evaluate the feasibility of providing shock

trauma training for military medical personnel through the use of civilian hospitals.

Pursuant to an agreement between the Secretary and one or more public or nonprofit

hospitals, the Secretary shall assign military medical personnel participating in the

demonstration program to temporary duty

in shock trauma units operated by the hospitals that are parties to the agreement. As

consideration for the services provided by

military medical personnel under the agreement, the agreement shall require the hospitals to provide appropriate care to members of the Armed Forces and to other persons whose care in the hospital would otherwise require reimbursement by the Secretary. The value of the services provided by

the hospitals shall be at least equal to the

value of the services provided by military

medical personnel under the agreement.

(b) TERMINATION OF PROGRAM.—The authority of the Secretary of Defense to conduct

the demonstration program under this section, and any agreement entered into under

the demonstration program, shall expire on

March 31, 1998.

(c) REPORT AND EVALUATION OF PROGRAM.—

(1) Not later than March 1 of each year in

which the demonstration program is conducted under this section, the Secretary of

Defense shall submit to Congress a report describing the scope and activities of the demonstration program during the preceding

year.

(2) Not later than May 1, 1998, the Comptroller General of the United States shall

submit to Congress a report evaluating the

effectiveness of the demonstration program

in providing shock trauma training for military medical personnel.

SEC. 745. STUDY REGARDING DEPARTMENT OF

DEFENSE EFFORTS TO DETERMINE

APPROPRIATE FORCE LEVELS OF

WARTIME MEDICAL PERSONNEL.

(a) STUDY REQUIRED.—The Comptroller

General of the United States shall conduct a

study to evaluate the reasonableness of the

models used by each military department for

determining the appropriate wartime force

level for medical personnel in the department. The study shall include the following:

(1) An assessment of the modeling techniques used by each department.

(2) An analysis of the data used in the models to identify medical personnel requirements.

(3) An identification of the ability of the

models to integrate personnel of reserve

components to meet department requirements.

(4) An evaluation of the ability of the Secretary of Defense to integrate the various

modeling efforts into a comprehensive, coordinated plan for obtaining the optimum

force level for wartime medical personnel.

(b) REPORT OF STUDY.—Not later than June

30, 1996, the Comptroller General shall report

to Congress on the results of the study conducted under subsection (a).

SEC. 746. STUDY REGARDING EXPANDED MENTAL

HEALTH SERVICES FOR CERTAIN

COVERED BENEFICIARIES.

(a) STUDY REQUIRED.—In connection with

the mental health services already available

for covered beneficiaries under chapter 55 of

title 10, United States Code, who are children

and require residential treatment, the Secretary of Defense shall conduct a study regarding the feasibility of expanding such

services to include a program of individualized continued care following completion of

the residential treatment to compliment the

residential treatment and prevent recidivism.

(b) REPORT OF STUDY.—Not later than

March 1, 1996, the Secretary of Defense shall

submit to Congress a report describing the

results of the study conducted under subsection (a).

SEC. 747. REPORT ON IMPROVED ACCESS TO

MILITARY HEALTH CARE FOR COVERED BENEFICIARIES ENTITLED TO

MEDICARE.

Not later than March 1, 1996, the Secretary

of Defense shall submit to Congress a report

evaluating the feasibility, costs, and consequences for the military health care system of improving access to the system for

covered beneficiaries under chapter 55 of

title 10, United States Code, who have limited access to military medical treatment facilities and are ineligible for the Civilian

Health and Medical Program of the Uniformed Services under section 1086(d)(1) of

such title. The alternatives the Secretary

shall consider to improve access for such

covered beneficiaries shall include—

(1) whether CHAMPUS should serve as a

second payer for covered beneficiaries who

are entitled to hospital insurance benefits

under part A of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.); and

(2) whether such covered beneficiaries

should be offered enrollment in the Federal

Employees Health Benefits program under

chapter 89 of title 5, United States Code.

SEC. 748. SENSE OF CONGRESS ON CONTINUITY

OF HEALTH CARE SERVICES FOR

COVERED BENEFICIARIES ADVERSELY AFFECTED BY CLOSURES

OF MILITARY MEDICAL TREATMENT

FACILITIES.

(a) FINDING.—Congress finds the following:

(1) Military installations selected for closure in the 1991 and 1993 rounds of the base

closure process are approaching their closing

dates.

(2) Additional military installations are

being selected for closure in the 1995 round of

the base closure process.

(3) As a result of these base closures, tens

of thousands of covered beneficiaries under

chapter 55 of title 10, United States Code,

who reside in the vicinity of affected installations will be left without immediate access

to military medical treatment facilities.

(b) SENSE OF CONGRESS.—In light of the

findings specified in subsection (a), it is the
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sense of Congress that the Secretary of Defense should take all appropriate steps necessary to ensure the continuation of medical

and pharmaceutical benefits to covered beneficiaries adversely affected by the closure of

military installations.

TITLE VIII—ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED

MATTERS

Subtitle A—Competition

SEC. 801. COMPETITION PROVISIONS.

(a) CONFERENCE BEFORE SUBMISSION OF

BIDS OR PROPOSALS.—(1) Section 2305(a) of

title 10, United States Code, is amended by

adding at the end the following paragraph:

‘‘(6) To the extent practicable, for each

procurement of property or services by an

agency, the head of the agency shall provide

for a conference on the procurement to be

held for anyone interested in submitting a

bid or proposal in response to the solicitation for the procurement. The purpose of the

conference shall be to inform potential bidders and offerors of the needs of the agency

and the qualifications considered necessary

by the agency to compete successfully in the

procurement.’’.

(2) Section 303A of the Federal Property

and Administrative Services Act of 1949 (41

U.S.C. 253a) is amended by adding at the end

the following new subsection:

‘‘(f) To the extent practicable, for each procurement of property or services by an agency, an executive agency shall provide for a

conference on the procurement to be held for

anyone interested in submitting a bid or proposal in response to the solicitation for the

procurement. The purpose of the conference

shall be to inform potential bidders and

offerors of the needs of the executive agency

and the qualifications considered necessary

by the executive agency to compete successfully in the procurement.’’.

(b) DESCRIPTION OF SOURCE SELECTION PLAN

IN SOLICITATION.—(1) Section 2305(a) of title

10, United States Code, is further amended in

paragraph (2)—

(A) by striking out ‘‘and’’ after the semicolon at the end of subparagraph (A);

(B) by striking out the period at the end of

subparagraph (B) and inserting in lieu thereof ‘‘; and’’; and

(C) by adding at the end the following new

subparagraph:

‘‘(C) a description, in as much detail as is

practicable, of the source selection plan of

the agency, or a notice that such plan is

available upon request.’’.

(2) Section 303A of the Federal Property

and Administrative Services Act of 1949 (41

U.S.C. 253a) is further amended in subsection

(b)—

(A) by striking out ‘‘and’’ after the semicolon at the end of paragraph (1);

(B) by striking out the period at the end of

paragraph (2) and inserting in lieu thereof ‘‘;

and’’; and

(C) by adding at the end the following new

paragraph:

‘‘(3) a description, in as much detail as is

practicable, of the source selection plan of

the executive agency, or a notice that such

plan is available upon request.’’.

(c) DISCUSSIONS NOT NECESSARY WITH

EVERY OFFEROR.—(1) Section 2305(b)(4)(A)(i)

of title 10, United States Code, is amended by

inserting before the semicolon the following:

‘‘and provided that discussions need not be

conducted with an offeror merely to permit

that offeror to submit a technically acceptable revised proposal’’.

(2) Section 303B(d)(1)(A) of the Federal

Property and Administrative Services Act of

1949 (41 U.S.C. 253b) is amended by inserting

before the semicolon the following: ‘‘and provided that discussions need not be conducted

with an offeror merely to permit that offeror

to submit a technically acceptable revised

proposal’’.

(d) PRELIMINARY ASSESSMENTS OF COMPETITIVE PROPOSALS.—(1) Section 2305(b)(2) of

title 10, United States Code, is amended by

adding at the end the following: ‘‘With respect to competitive proposals, the head of

the agency may make a preliminary assessment of a proposal received, rather than a

complete evaluation of the proposal, and

may eliminate the proposal from further

consideration if the head of the agency determines the proposal has no chance for contract award.’’.

(2) Section 303B(b) of the Federal Property

and Administrative Services Act of 1949 (41

U.S.C. 253b(b)) is amended by adding at the

end the following: ‘‘With respect to competitive proposals, the head of the agency may

make a preliminary assessment of a proposal

received, rather than a complete evaluation

of the proposal, and may eliminate the proposal from further consideration if the head

of the agency determines the proposal has no

chance for contract award.’’.

(e) FEDERAL ACQUISITION REGULATION.—The

Federal Acquisition Regulation shall be revised to reflect the amendments made by

subsections (a), (b), (c), and (d).

SEC. 802. PREAWARD DEBRIEFINGS.

(a) ARMED SERVICES ACQUISITIONS.—Section 2305(b) of title 10, United States Code, is

amended—

(1) by striking out subparagraph (F) of

paragraph (5);

(2) by redesignating paragraph (6) as paragraph (8); and

(3) by inserting after paragraph (5) the following new paragraphs:

‘‘(6)(A) When the contracting officer excludes an offeror submitting a competitive

proposal from the competitive range (or otherwise excludes such an offeror from further

consideration prior to the final source selection decision), the excluded offeror may request in writing, within three days after the

date on which the excluded offeror receives

notice of its exclusion, a debriefing prior to

award. The contracting officer shall make

every effort to debrief the unsuccessful offeror as soon as practicable and may refuse the

request for a debriefing if it is not in the best

interests of the Government to conduct a debriefing at that time.

‘‘(B) The contracting officer is required to

debrief an excluded offeror in accordance

with paragraph (5) of this section only if that

offeror requested and was refused a preaward

debriefing under subparagraph (A) of this

paragraph.

‘‘(C) The debriefing conducted under this

subsection shall include—

‘‘(i) the executive agency’s evaluation of

the significant elements in the offeror’s

offer;

‘‘(ii) a summary of the rationale for the

offeror’s exclusion; and

‘‘(iii) reasonable responses to relevant

questions posed by the debriefed offeror as to

whether source selection procedures set

forth in the solicitation, applicable regulations, and other applicable authorities were

followed by the executive agency.

‘‘(D) The debriefing conducted pursuant to

this subsection may not disclose the number

or identity of other offerors and shall not

disclose information about the content,

ranking, or evaluation of other offerors’ proposals.

‘‘(7) The contracting officer shall include a

summary of any debriefing conducted under

paragraph (5) or (6) in the contract file.’’.

(b) CIVILIAN AGENCY ACQUISITIONS.—Section 303B of the Federal Property and Administrative Services Act of 1949 (41 U.S.C.

253b) is amended—

(1) by striking out paragraph (6) of subsection (e);

(2) by redesignating subsections (f), (g), (h),

and (i) as subsections (h), (i), (j), and (k), respectively; and

(3) by inserting after subsection (e) the following new subsections:

‘‘(f)(1) When the contracting officer excludes an offeror submitting a competitive

proposal from the competitive range (or otherwise excludes such an offeror from further

consideration prior to the final source selection decision), the excluded offeror may request in writing, within 3 days after the date

on which the excluded offeror receives notice

of its exclusion, a debriefing prior to award.

The contracting officer shall make every effort to debrief the unsuccessful offeror as

soon as practicable and may refuse the request for a debriefing if it is not in the best

interests of the Government to conduct a debriefing at that time.

‘‘(2) The contracting officer is required to

debrief an excluded offeror in accordance

with subsection (e) of this section only if

that offeror requested and was refused a

preaward debriefing under paragraph (1) of

this subsection.

‘‘(3) The debriefing conducted under this

subsection shall include—

‘‘(A) the executive agency’s evaluation of

the significant elements in the offeror’s

offer;

‘‘(B) a summary of the rationale for the

offeror’s exclusion; and

‘‘(C) reasonable responses to relevant questions posed by the debriefed offeror as to

whether source selection procedures set

forth in the solicitation, applicable regulations, and other applicable authorities were

followed by the executive agency.

‘‘(4) The debriefing conducted pursuant to

this subsection may not disclose the number

or identity of other offerors and shall not

disclose information about the content,

ranking, or evaluation of other offerors’ proposals.

‘‘(g) The contracting officer shall include a

summary of the any debriefing conducted

under subsection (e) or (f) in the contract

file.’’.

SEC. 803. CONTRACT TYPES.

(a) ARMED SERVICES ACQUISITIONS.—(1) Section 2306 of title 10, United States Code, is

amended—

(A) by inserting before the period at the

end of subsection (a) the following: ‘‘, based

on market conditions, established commercial practice (if any) for the product or service being acquired, and sound business judgment’’;

(B) by striking out subsections (b), (d), (e),

(f), and (h); and

(C) by redesignating subsection (g) as subsection (b).

(2) The heading of such section is amended

to read as follows:

‘‘§ 2306. Contract types’’.

(b) CIVILIAN AGENCY ACQUISITIONS.—(1) Section 304 of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254)

is amended—

(A) by inserting before the period at the

end of the first sentence of subsection (a) the

following: ‘‘, based on market conditions, established commercial practice (if any) for

the product or service being acquired, and

sound business judgment’’; and

(B) by striking out ‘‘Every contract

award’’ in the second sentence of subsection

(a) and all that follows through the end of

the section.

(2) The heading of such section is amended

to read as follows:

‘‘SEC. 304. CONTRACT TYPES.’’.

(c) CONFORMING REPEALS.—(1) Sections

4540, 7212, and 9540 of title 10, United States

Code, are repealed.

(2) The table of sections at the beginning of

chapter 433 of such title is amended by striking out the item relating to section 4540.

(3) The table of sections at the beginning of

chapter 631 of such title is amended by striking out the item relating to section 7212.
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(4) The table of sections at the beginning of

chapter 933 of such title is amended by striking out the item relating to section 9540.

(d) CIVIL WORKS AUTHORITY.—(1) Chapter

137 of title 10, United States Code, is amended by adding at the end the following new

section:

‘‘§ 2332. Contracts for architectural and engineering services and construction design

‘‘The Secretary of Defense and the Secretaries of the military departments may enter

into contracts for architectural and engineering services in connection with a military construction or family housing project

or for other Department of Defense or military department purposes. Such contracts

shall be awarded in accordance with the

Brooks Architect-Engineers Act (40 U.S.C.

541 et seq.).’’.

(2) The table of sections at the beginning of

chapter 137 of such title is amended by adding at the end the following new item:

‘‘2332. Contracts for architectural and engineering services and construction design.’’.

(3) Section 2855 of such title is repealed.

The table of sections at the beginning of

chapter 169 of such title is amended by striking out the item relating to such section.

Subtitle B—Commercial Items

SEC. 811. COMMERCIAL ITEM EXCEPTION TO REQUIREMENT FOR COST OR PRICING

DATA AND INFORMATION LIMITATIONS.

(a) ARMED SERVICES ACQUISITIONS.—(1)

Subsections (b), (c), and (d) of section 2306a

of title 10, United States Code, are amended

to read as follows:

‘‘(b) EXCEPTIONS.—

‘‘(1) IN GENERAL.—Submission of cost or

pricing data shall not be required under subsection (a) in the case of a contract, a subcontract, or modification of a contract or

subcontract—

‘‘(A) for which the price agreed upon is

based on—

‘‘(i) adequate price competition; or

‘‘(ii) prices set by law or regulation;

‘‘(B) for the acquisition of a commercial

item; or

‘‘(C) in an exceptional case when the head

of the procuring activity, without delegation, determines that the requirements of

this section may be waived and justifies in

writing the reasons for such determination.

‘‘(2) MODIFICATIONS OF CONTRACTS AND SUBCONTRACTS FOR COMMERCIAL ITEMS.—In the

case of a modification of a contract or subcontract for a commercial item that is not

covered by the exception on the submission

of cost or pricing data in paragraph (1)(A) or

(1)(B), submission of cost or pricing data

shall not be required under subsection (a)

if—

‘‘(A) the contract or subcontract being

modified is a contract or subcontract for

which submission of cost or pricing data may

not be required by reason of paragraph (1)(A)

or (1)(B); and

‘‘(B) the modification would not change

the contract or subcontract, as the case may

be, from a contract or subcontract for the

acquisition of a commercial item to a contract or subcontract for the acquisition of an

item other than a commercial item.

‘‘(c) AUTHORITY TO REQUIRE COST OR PRICING DATA ON BELOW-THRESHOLD CONTRACTS.—

(1) Subject to paragraph (2), when certified

cost or pricing data are not required to be

submitted by subsection (a) for a contract,

subcontract, or modification of a contract or

subcontract, such data may nevertheless be

required to be submitted by the head of the

procuring activity, but only if the head of

the procuring activity determines that such

data are necessary for the evaluation by the

agency of the reasonableness of the price of

the contract, subcontract, or modification of

a contract or subcontract. In any case in

which the head of the procuring activity requires such data to be submitted under this

subsection, the head of the procuring activity shall justify in writing the reason for

such requirement.

‘‘(2) The head of the procuring activity

may not require certified cost or pricing

data to be submitted under this paragraph

for any contract or subcontract, or modification of a contract or subcontract, covered by

the exceptions in subparagraph (A) or (B) of

subsection (b)(1).

‘‘(3) The head of a procuring activity may

not delegate functions under this paragraph.

‘‘(d) LIMITATIONS ON OTHER INFORMATION.—

The Federal Acquisition Regulation shall include the following:

‘‘(1) Provisions concerning the types of information that contracting officers may consider in determining whether the price of a

procurement to the Government is fair and

reasonable when certified cost or pricing

data are not required to be submitted under

this section, including appropriate information on the prices at which the same item or

similar items have previously been sold that

is adequate for evaluating the reasonableness of the price of the proposed contract or

subcontract for the procurement.

‘‘(2) Reasonable limitations on requests for

sales data relating to commercial items.

‘‘(3) A requirement that a contracting officer shall, to the maximum extent practicable, limit the scope of any request for information relating to commercial items

from an offeror to only that information

that is in the form regularly maintained by

the offeror in commercial operations.

‘‘(4) A statement that any information received relating to commercial items that is

exempt from disclosure under section 552(b)

of title 5 shall not be disclosed by the Federal Government.’’.

(2) Section 2306a of such title is further

amended—

(A) by striking out subsection (h); and

(B) by redesignating subsection (i) as subsection (h).

(3) Section 2375 of title 10, United States

Code, is amended by striking out subsection

(c).

(b) CIVILIAN AGENCY ACQUISITIONS.—(1)

Subsections (b), (c) and (d) of section 304A of

the Federal Property and Administrative

Services Act of 1949 (41 U.S.C. 254b) are

amended to read as follows:

‘‘(b) EXCEPTIONS.—

‘‘(1) IN GENERAL.—Submission of cost or

pricing data shall not be required under subsection (a) in the case of a contract, a subcontract, or a modification of a contract or

subcontract—

‘‘(A) for which the price agreed upon is

based on—

‘‘(i) adequate price competition; or

‘‘(ii) prices set by law or regulation;

‘‘(B) for the acquisition of a commercial

item; or

‘‘(C) in an exceptional case when the head

of the procuring activity, without delegation, determines that the requirements of

this section may be waived and justifies in

writing the reasons for such determination.

‘‘(2) MODIFICATIONS OF CONTRACTS AND SUBCONTRACTS FOR COMMERCIAL ITEMS.—In the

case of a modification of a contract or subcontract for a commercial item that is not

covered by the exception on the submission

of cost or pricing data in paragraph (1)(A) or

(1)(B), submission of cost or pricing data

shall not be required under subsection (a)

if—

‘‘(A) the contract or subcontract being

modified is a contract or subcontract for

which submission of cost or pricing data may

not be required by reason of paragraph (1)(A)

or (1)(B); and

‘‘(B) the modification would not change

the contract or subcontract, as the case may

be, from a contract or subcontract for the

acquisition of a commercial item to a contract or subcontract for the acquisition of an

item other than a commercial item.

‘‘(c) AUTHORITY TO REQUIRE COST OR PRICING DATA ON BELOW-THRESHOLD CONTRACTS.—

(1) Subject to paragraph (2), when certified

cost or pricing data are not required to be

submitted by subsection (a) for a contract,

subcontract, or modification of a contract or

subcontract, such data may nevertheless be

required to be submitted by the head of the

procuring activity, but only if the head of

the procuring activity determines that such

data are necessary for the evaluation by the

agency of the reasonableness of the price of

the contract, subcontract, or modification of

a contract or subcontract. In any case in

which the head of the procuring activity requires such data to be submitted under this

subsection, the head of the procuring activity shall justify in writing the reason for

such requirement.

‘‘(2) The head of the procuring activity

may not require certified cost or pricing

data to be submitted under this paragraph

for any contract or subcontract, or modification of a contract or subcontract, covered by

the exceptions in subparagraph (A) or (B) of

subsection (b)(1).

‘‘(3) The head of a procuring activity may

not delegate the functions under this paragraph.

‘‘(d) LIMITATIONS ON OTHER INFORMATION.—

The Federal Acquisition Regulation shall include the following:

‘‘(1) Provisions concerning the types of information that contracting officers may consider in determining whether the price of a

procurement to the Government is fair and

reasonable when certified cost or pricing

data are not required to be submitted under

this section, including appropriate information on the prices at which the same item or

similar items have previously been sold that

is adequate for evaluating the reasonableness of the price of the proposed contract or

subcontract for the procurement.

‘‘(2) Reasonable limitations on requests for

sales data relating to commercial items.

‘‘(3) A requirement that a contracting officer shall, to the maximum extent practicable, limit the scope of any request for information relating to commercial items

from an offeror to only that information

that is in the form regularly maintained by

the offeror in commercial operations.

‘‘(4) A statement that any information received relating to commercial items that is

exempt from disclosure under section 552(b)

of title 5 shall not be disclosed by the Federal Government.’’.

(2) Section 304A of such Act is further

amended—

(A) by striking out subsection (h); and

(B) by redesignating subsection (i) as subsection (h).

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

(a) ARMED SERVICES ACQUISITIONS.—Section 2304(e) of title 10, United States Code, as

added by section 801(a), is amended—

(1) in paragraph (1), by inserting after

‘‘special simplified procedures’’ the following: ‘‘for purchases of commercial items

and’’; and

(2) by adding at the end the following new

paragraph:

‘‘(4) The Federal Acquisition Regulation

shall provide that, in the case of a purchase

of commercial items in an amount greater

than the simplified acquisition threshold,

the head of an agency may not conduct the

purchase on a sole source basis unless the

need to do so is justified in writing and approved in accordance with the Federal Acquisition Regulation.
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(b) CIVILIAN AGENCY ACQUISITIONS.—Section 303(e) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C.

253), as added by section 801(b), is amended—

(1) in paragraph (1), by inserting after

‘‘special simplified procedures’’ the following: ‘‘for purchases of commercial items

and’’; and

(2) by adding at the end the following new

paragraph:

‘‘(5) The Federal Acquisition Regulation

shall provide that, in the case of a purchase

of commercial items in an amount greater

than the simplified acquisition threshold, an

executive agency may not conduct the purchase on a sole source basis unless the need

to do so is justified in writing and approved

in accordance with the Federal Acquisition

Regulation.’’.

(c) SIMPLIFIED NOTICE.—Section 18 of the

Office of Federal Procurement Policy Act (41

U.S.C. 416) is amended in subsection (a)(5) (as

redesignated by section 801(d))—

(1) by striking out ‘‘limited’’; and

(2) by inserting before ‘‘submission’’ the

following: ‘‘issuance of solicitations and

the’’.

SEC. 813. AMENDMENT TO DEFINITION OF COMMERCIAL ITEMS.

Section 4(12)(F) of the Office of Federal

Procurement Policy Act (41 U.S.C. 403(12)(F))

is amended by striking out ‘‘catalog’’.

SEC. 814. INAPPLICABILITY OF COST ACCOUNTING STANDARDS TO CONTRACTS

AND SUBCONTRACTS FOR COMMERCIAL ITEMS.

Subparagraph (B) of section 26(f)(2) of the

Office of Federal Procurement Policy Act (41

U.S.C. 422(f)(2)) is amended—

(1) by striking out clause (i) and inserting

in lieu thereof the following:

‘‘(i) Contracts or subcontracts for the acquisition of commercial items.’’; and

(2) by striking out clause (iii).

Subtitle C—Additional Reform Provisions

SEC. 821. REPEALS OF CERTAIN PROCUREMENT

PROVISIONS.

(a) POST-EMPLOYMENT RESTRICTIONS.—Sections 2397, 2397a, 2397b, and 2397c of title 10,

United States Code, are repealed.

(b) LIMITATION ON EXPENDITURE OF APPROPRIATIONS.—Section 2207 of such title is repealed.

(c) CERTAIN DELEGATION AUTHORITY.—Section 2356 of such title is repealed.

(d) SPARE PARTS CONTROL.—Section 2383 of

such title is repealed.

(e) CLERICAL AMENDMENTS.—(1) The table

of sections at the beginning of chapter 131 of

title 10, United States Code, is amended by

striking out the item relating to section

2207.

(2) The table of sections at the beginning of

chapter 139 of such title is amended by striking out the item relating to section 2356.

(3) The table of sections at the beginning of

chapter 141 of title 10, United States Code, is

amended by striking out the items relating

to sections 2383, 2397, 2397a, 2397b, and 2397c.

SEC. 822. FEES FOR CERTAIN TESTING SERVICES.

Section 2539b(c) of title 10, United States

Code, is amended by inserting ‘‘and indirect’’

after ‘‘recoup the direct’’.

SEC. 823. TESTING OF DEFENSE ACQUISITION

PROGRAMS.

(a) IN GENERAL.—Section 2366 to title 10,

United States Code, is amended—

(1) by striking out ‘‘survivability’’ each

place it appears (including in the section

heading) and inserting in lieu thereof ‘‘vulnerability’’; and

(2) in subsection (b)—

(A) by striking out ‘‘Survivability’’ and inserting in lieu thereof ‘‘Vulnerability’’; and

(B) by inserting after paragraph (2) the following new paragraph:

‘‘(3) Testing should begin at the component, subsystem, and subassembly level, culminating with tests of the complete system

configured for combat.’’.

(b) CLERICAL AMENDMENT.—The item relating to such section in the table of sections at

the beginning of chapter 139 of such title is

amended to read as follows:

‘‘2366. Major systems and munitions programs: vulnerability testing

and lethality testing required

before full-scale production.’’.

SEC. 824. COORDINATION AND COMMUNICATION

OF DEFENSE RESEARCH ACTIVITIES.

Section 2364 of title 10, United States Code,

is amended—

(1) in subsection (b)(5), by striking out

‘‘milestone O, milestone I, and milestone II’’

and inserting in lieu thereof ‘‘acquisition

program’’; and

(2) in subsection (c), by striking out paragraphs (2), (3), and (4) and inserting in lieu

thereof the following:

‘‘(2) The term ‘acquisition program decisions’ has the meaning prescribed by the

Secretary of Defense in regulations.’’.

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

(a) LIMITATION.—(1) Paragraph (3) of section 2534(a) of title 10, United States Code, is

amended to read as follows:

‘‘(3) VESSEL COMPONENTS FOR ALL BRANCHES

OF THE ARMED FORCES.—(A) The following

components of vessels:

‘‘(i) Air circuit breakers.

‘‘(ii) Vessel propellers with a diameter of

six feet or more, if the propellers incorporate

only castings poured and finished in the

United States.

‘‘(iii) Welded shipboard anchor and mooring chain with a diameter of four inches or

less.

‘‘(B) The following components of vessels,

to the extent they are unique to marine applications: cable assemblies, hose assemblies,

hydraulics and pumps for steering, gyrocompasses, marine autopilots, electronic

navigation chart systems, navigators, attitude and heading reference units, power supplies, radars, steering controls, pumps, engines, turbines, reduction gears, motors, refrigeration systems, generators, propulsion

and machinery control systems, and totally

enclosed lifeboards, including associated

davits and winches.’’.

(2) Section 2534 of such title is amended by

adding at the end the following new subsection:

‘‘(h) IMPLEMENTATION OF MARINE VESSEL

COMPONENT LIMITATION.—In implementing

subsection (a)(3)(B), the Secretary of

Defense—

‘‘(1) may not use contract clauses or certifications; and

‘‘(2) shall use management and oversight

techniques that achieve the objective of the

subsection without imposing a significant

management burden on the Government or

the contractor involved.’’.

(b) EXTENSION OF LIMITATION RELATING TO

BALL BEARINGS AND ROLLER BEARINGS.—Section 2534(c)(3) of such title is amended by

striking out ‘‘October 1, 1995’’ and inserting

in lieu thereof ‘‘October 1, 2000’’.

(c) INAPPLICABILITY OF SIMPLIFIED ACQUISITION LIMITATION TO CONTRACTS FOR BALL

BEARINGS AND ROLLER BEARINGS.—Section

2534(g) of title 10, United States Code, is

amended—

(1) by inserting ‘‘(1)’’ before ‘‘This section’’; and

(2) by adding at the end the following new

paragraph:

‘‘(2) Paragraph (1) does not apply to contracts for items described in subsection (a)(5)

(relating to ball bearings and roller bearings), notwithstanding section 33 of the Office of Federal Procurement Policy Act (41

U.S.C. 429).’’.

SEC. 826. REVISIONS TO PROCUREMENT NOTICE

PROVISIONS.

Section 18(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 416(a)) is

amended—

(1) in subparagraph (B) of paragraph (1)—

(A) by striking out ‘‘subsection (f)—’’ and

all that follows through the end of the subparagraph and inserting in lieu thereof ‘‘subsection (b); and’’; and

(B) by inserting after ‘‘property or services’’ the following: ‘‘for a price expected to

exceed $10,000 but not to exceed $25,000’’;

(2) by striking out paragraph (4); and

(3) by redesignating paragraphs (5) and (6)

as paragraphs (4) and (5), respectively.

SEC. 827. ENCOURAGEMENT OF USE OF LEASING

AUTHORITY.

(a) IN GENERAL.—(1) Chapter 137 of title 10,

United States Code, is amended by inserting

after section 2316 the following new section:

‘‘§ 2317. Equipment leasing

‘‘The Secretary of Defense shall authorize

and encourage the use of leasing in the acquisition of equipment whenever such leasing is practicable and otherwise authorized

by law.’’.

(2) The table of sections at the beginning of

such chapter is amended by adding at the

end the following new item:

‘‘2317. Equipment leasing.’’.

(b) REPORT.—Not later than 90 days after

the date of the enactment of this Act, the

Secretary of Defense shall submit to Congress a report setting forth changes in legislation that would be required in order to facilitate the use of leases by the Department

of Defense in the acquisition of equipment.

SEC. 828. GOVERNMENT RELIANCE ON THE PRIVATE SECTOR.

(a) GOVERNMENT RELIANCE ON THE PRIVATE

SECTOR.—The Office of Federal Procurement

Policy Act (41 U.S.C. 401 et seq.) is amended

by inserting after section 16 the following

new section:

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

‘‘It is the policy of the Federal Government to rely on the private sector to supply

the products and services the Federal Government needs.’’.

(b) CLERICAL AMENDMENT.—The table of

contents for the Office of Federal Procurement Policy Act (contained in section 1(b))

is amended by inserting after the item relating to section 16 the following new item:

‘‘Sec. 17. Government reliance on the private

sector.’’.

SEC. 829. ELIMINATION OF CERTAIN CERTIFICATION REQUIREMENTS.

(a) ELIMINATION OF CERTAIN STATUTORY

CERTIFICATION REQUIREMENTS.—(1)(A) Section 2410 of title 10, United States Code, is

amended—

(i) in the heading, by striking out ‘‘: certification’’; and

(ii) in subsection (a)—

(I) in the heading, by striking out ‘‘CERTIFICATION’’;

(II) by striking out ‘‘unless’’ and all that

follows through ‘‘that—’’ and inserting in

lieu thereof ‘‘unless—’’; and

(III) in paragraph (2), by striking out ‘‘to

the best of that person’s knowledge and belief’’.

(B) The item relating to section 2410 in the

table of sections at the beginning of chapter

141 of such title is amended to read as follows:

‘‘Sec. 2410. Requests for equitable adjustment or other relief.’’.

(2) Section 2410b of title 10, United States

Code, is amended in paragraph (2) by striking

out ‘‘certification and’’.
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(3) Section 1352(b)(2) of title 31, United

States Code, is amended—

(A) by striking out subparagraph (C); and

(B) by inserting ‘‘and’’ after the semicolon

at the end of subparagraph (A).

(4) Section 5152 of the Drug-Free Workplace Act of 1988 (41 U.S.C. 701) is amended—

(A) in subsection (a)(1), by striking out

‘‘has certified to the contracting agency that

it will’’ and inserting in lieu thereof ‘‘agrees

to’’;

(B) in subsection (a)(2), by striking out

‘‘contract includes a certification by the individual’’ and inserting in lieu thereof ‘‘individual agrees’’; and

(C) in subsection (b)(1)—

(i) by striking out subparagraph (A);

(ii) by redesignating subparagraph (B) as

subparagraph (A) and in that subparagraph

by striking out ‘‘such certification by failing

to carry out’’; and

(iii) by redesignating subparagraph (C) as

subparagraph (B).

(b) ELIMINATION OF CERTAIN REGULATORY

CERTIFICATION REQUIREMENTS.—

(1) CURRENT CERTIFICATION REQUIREMENTS.—Not later than 210 days after the

date of the enactment of this Act, any certification required of contractors or offerors

by the Federal Acquisition Regulation or an

executive agency procurement regulation

that is not specifically imposed by statute

shall be removed by the Administrator for

Federal Procurement Policy from the Federal Acquisition Regulation or such agency

regulation unless—

(A) written justification for such certification is provided to the Administrator (i)

by the Federal Acquisition Regulatory Council (in the case of a certification in the Federal Acquisition Regulation), or (ii) by the

head of an executive agency (in the case of a

certification in an executive agency procurement regulation); and

(B) the Administrator approves in writing

the retention of such certification.

(2) FUTURE CERTIFICATION REQUIREMENTS.—

(A) Section 29 of the Office of Federal Procurement Policy Act (41 U.S.C. 425) is

amended—

(i) by amending the heading to read as follows:

‘‘SEC. 22. CONTRACT CLAUSES AND CERTIFICATIONS.’’;

(ii) by inserting ‘‘(a) NONSTANDARD CONTRACT CLAUSES.—’’ before ‘‘The Federal Acquisition’’; and

(iii) by adding at the end the following new

subsection:

‘‘(b) PROHIBITION ON CERTIFICATION REQUIREMENTS.—A requirement for a certification by a contractor or offeror may not be

included in the Federal Acquisition Regulation or an executive agency procurement

regulation unless—

‘‘(1) the certification is specifically imposed by statute; or

‘‘(2) written justification for such certification is provided to the Administrator for

Federal Procurement Policy (A) by the Federal Acquisition Regulatory Council (in the

case of a certification in the Federal Acquisition Regulation), or (B) the head of an executive agency (in the case of a certification

in an executive agency procurement regulation), and the Administrator approves in

writing the inclusion of such certification.’’.

(B) The item relating to section 29 in the

table of contents for the Office of Federal

Procurement Policy Act (contained in section 1(b)) (41 U.S.C. 401 note) is amended to

read as follows:

‘‘Sec. 29. Contract clauses and certifications.’’.

SEC. 830. AMENDMENT TO COMMENCEMENT AND

EXPIRATION OF AUTHORITY TO

CONDUCT CERTAIN TESTS OF PROCUREMENT PROCEDURES.

Subsection (j) of section 5061 of the Federal

Acquisition Streamlining Act of 1994 (41

U.S.C. 413 note) is amended to read as follows:

‘‘(j) COMMENCEMENT AND EXPIRATION OF AUTHORITY.—The authority to conduct a test

under subsection (a) in an agency and to

award contracts under such a test shall take

effect on August 1, 1995, and shall expire on

August 1, 2000. Contracts entered into before

such authority expires in an agency pursuant to a test shall remain in effect, notwithstanding the expiration of the authority to

conduct the test under this section.’’.

SEC. 831. PROCUREMENT INTEGRITY.

(a) AMENDMENT OF PROCUREMENT INTEGRITY

PROVISION.—Section 27 of the Office of Federal Procurement Policy Act (41 U.S.C. 423)

is amended to read as follows:

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

SELECTION INFORMATION.

‘‘(a) PROHIBITION ON DISCLOSING PROCUREMENT INFORMATION.—(1) A person described

in paragraph (2) shall not, other than as provided by law, knowingly disclose contractor

bid or proposal information or source selection information before the award of a Federal agency procurement contract to which

the information relates.

‘‘(2) Paragraph (1) applies to any person

who—

‘‘(A) is a present or former officer or employee of the United States, or a person who

is acting or has acted for or on behalf of, or

who is advising or has advised the United

States with respect to, a Federal agency procurement; and

‘‘(B) by virtue of that office, employment,

or relationship has or had access to contractor bid or proposal information or source

selection information.

‘‘(b) PROHIBITION ON OBTAINING PROCUREMENT INFORMATION.—A person shall not,

other than as provided by law, knowingly obtain contractor bid or proposal information

or source selection information before the

award of a Federal agency procurement contract to which the information relates.

‘‘(c) PROHIBITION ON DISCLOSING OR OBTAINING PROCUREMENT INFORMATION IN CONNECTION WITH A PROTEST.—(1) A person shall

not, other than as provided by law, knowingly violate the terms of a protective order

described in paragraph (2) by disclosing or

obtaining contractor bid or proposal information or source selection information related to the procurement contract concerned.

‘‘(2) Paragraph (1) applies to any protective

order issued by the the United States Board

of Contract Appeals in connection with a

protest against the award or proposed award

of a Federal agency procurement contract.

‘‘(d) PENALTIES AND ADMINISTRATIVE ACTIONS.—

‘‘(1) CRIMINAL PENALTIES.—

‘‘(A) Whoever engages in conduct constituting an offense under subsection (a), (b), or

(c) shall be imprisoned for not more than one

year or fined as provided under title 18,

United States Code, or both.

‘‘(B) Whoever engages in conduct constituting an offense under subsection (a), (b), or

(c) for the purpose of either—

‘‘(i) exchanging the information covered by

such subsection for anything of value, or

‘‘(ii) obtaining or giving anyone a competitive advantage in the award of a Federal

agency procurement contract,

shall be imprisoned for not more than 15

years or fined as provided under title 18,

United States Code, or both.

‘‘(2) CIVIL PENALTIES.—The Attorney General may bring a civil action in the appropriate United States district court against

any person who engages in conduct constituting an offense under subsection (a), (b), or

(c). Upon proof of such conduct by a preponderance of the evidence, the person is subject

to a civil penalty. An individual who engages

in such conduct is subject to a civil penalty

of not more than $50,000 for each violation

plus twice the amount of compensation

which the individual received or offered for

the prohibited conduct. An organization that

engages in such conduct is subject to a civil

penalty of not more than $500,000 for each

violation plus twice the amount of compensation which the organization received or

offered for the prohibited conduct.

‘‘(3) ADMINISTRATIVE ACTIONS.—(A) If a Federal agency receives information that a contractor or a person has engaged in conduct

constituting an offense under subsection (a),

(b), or (c), the Federal agency shall consider

taking one or more of the following actions,

as appropriate:

‘‘(i) Cancellation of the Federal agency

procurement, if a contract has not yet been

awarded.

‘‘(ii) Rescission of a contract with respect

to which—

‘‘(I) the contractor or someone acting for

the contractor has been convicted for an offense under subsection (a), (b), or (c), or

‘‘(II) the head of the agency that awarded

the contract has determined, based upon a

preponderance of the evidence, that the contractor or someone acting for the contractor

has engaged in conduct constituting such an

offense.

‘‘(iii) Initiation of suspension or debarment

proceedings for the protection of the Government in accordance with procedures in the

Federal Acquisition Regulation.

‘‘(iv) Initiation of adverse personnel action, pursuant to the procedures in chapter

75 of title 5, United States Code, or other applicable law or regulation.

‘‘(B) If a Federal agency rescinds a contract pursuant to subparagraph (A)(ii), the

United States is entitled to recover, in addition to any penalty prescribed by law, the

amount expended under the contract.

‘‘(C) For purposes of any suspension or debarment proceedings initiated pursuant to

subparagraph (A)(iii), engaging in conduct

constituting an offense under subsection (a),

(b), or (c) affects the present responsibility

of a Government contractor or subcontractor.

‘‘(e) DEFINITIONS.—As used in this section:

‘‘(1) The term ‘contractor bid or proposal

information’ means any of the following information submitted to a Federal agency as

part of or in connection with a bid or proposal to enter into a Federal agency procurement contract, if that information has not

been previously made available to the public

or disclosed publicly:

‘‘(A) Cost or pricing data (as defined by

section 2306a(h) of title 10, United States

Code, with respect to procurements subject

to that section, and section 304A(h) of Federal Property and Administrative Services

Act of 1949 (41 U.S.C. 254b(h), with respect to

procurements subject to that section).

‘‘(B) Indirect costs and direct labor rates.

‘‘(C) Proprietary information about manufacturing processes, operations, or techniques marked by the contractor in accordance with applicable law or regulation.

‘‘(D) Information marked by the contractor as ‘contractor bid or proposal information’, in accordance with applicable law

or regulation.

‘‘(2) The term ‘source selection information’ means any of the following information

prepared for use by a Federal agency for the

purpose of evaluating a bid or proposal to

enter into a Federal agency procurement
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contract, if that information has not been

previously made available to the public or

disclosed publicly:

‘‘(A) Bid prices submitted in response to a

Federal agency solicitation for sealed bids,

or lists of those bid prices before public bid

opening.

‘‘(B) Proposed costs or prices submitted in

response to a Federal agency solicitation, or

lists of those proposed costs or prices.

‘‘(C) Source selection plans.

‘‘(D) Technical evaluation plans.

‘‘(E) Technical evaluations of proposals.

‘‘(F) Cost or price evaluations of proposals.

‘‘(G) Competitive range determinations

that identify proposals that have a reasonable chance of being selected for award of a

contract.

‘‘(H) Rankings of bids, proposals, or competitors.

‘‘(I) The reports and evaluations of source

selection panels, boards, or advisory councils.

‘‘(J) Other information marked as ‘source

selection information’ based on a case-bycase determination by the head of the agency, his designee, or the contracting officer

that its disclosure would jeopardize the integrity or successful completion of the Federal agency procurement to which the information relates.

‘‘(3) The term ‘Federal agency’ has the

meaning provided such term in section 3 of

the Federal Property and Administrative

Services Act of 1949 (40 U.S.C. 472).

‘‘(4) The term ‘Federal agency procurement’ means the acquisition (by using competitive procedures and awarding a contract)

of goods or services (including construction)

from non-Federal sources by a Federal agency using appropriated funds.

‘‘(5) The term ‘contracting officer’ means a

person who, by appointment in accordance

with applicable regulations, has the authority to enter into a Federal agency procurement contract on behalf of the Government

and to make determinations and findings

with respect to such a contract.

‘‘(6) The term ‘protest’ means a written objection by an interested party to the award

or proposed award of a Federal agency procurement contract, pursuant to title IV of

the Federal Acquisition Reform Act of 1995.

‘‘(f) LIMITATION ON PROTESTS.—No person

may file a protest against the award or proposed award of a Federal agency procurement contract alleging an offense under subsection (a), (b), or (c), of this section, nor

may the United States Board of Contract Appeals consider such an allegation in deciding

a protest, unless that person reported to the

Federal agency responsible for the procurement information that the person believed

constituted evidence of the offense no later

than 14 days after the person first discovered

the possible offense.

‘‘(g) SAVINGS PROVISIONS.—This section

does not—

‘‘(1) restrict the disclosure of information

to, or its receipt by, any person or class of

persons authorized, in accordance with applicable agency regulations or procedures, to

receive that information;

‘‘(2) restrict a contractor from disclosing

its own bid or proposal information or the

recipient from receiving that information;

‘‘(3) restrict the disclosure or receipt of information relating to a Federal agency procurement after it has been canceled by the

Federal agency before contract award unless

the Federal agency plans to resume the procurement;

‘‘(4) prohibit individual meetings between

a Federal agency employee and an offeror or

potential offeror for, or a recipient of, a contract or subcontract under a Federal agency

procurement, provided that unauthorized

disclosure or receipt of contractor bid or proposal information or source selection information does not occur;

‘‘(5) authorize the withholding of information from, nor restrict its receipt by, Congress, a committee or subcommittee of Congress, the Comptroller General, a Federal

agency, or an inspector general of a Federal

agency;

‘‘(6) authorize the withholding of information from, nor restrict its receipt by, any

board of contract appeals of a Federal agency or the Comptroller General in the course

of a protest against the award or proposed

award of a Federal agency procurement contract; or

‘‘(7) limit the applicability of any requirements, sanctions, contract penalties, and

remedies established under any other law or

regulation.’’.

(b) REPEALS.—The following provisions of

law are repealed:

(1) Sections 2397, 2397a, 2397b, and 2397c of

title 10, United States Code.

(2) Section 33 of the Federal Energy Administration Act of 1974 (15 U.S.C. 789).

(3) Section 281 of title 18, United States

Code.

(4) Subsection (c) of section 32 of the Office

of Federal Procurement Policy Act (41 U.S.C.

428).

(5) The first section 19 of the Federal Nonnuclear Energy Research and Development

Act of 1974 (42 U.S.C. 5918).

(c) CLERICAL AMENDMENTS.—

(1) The table of sections at the beginning of

chapter 141 of title 10, United States Code, is

amended by striking out the items relating

to sections 2397, 2397a, 2397b, and 2397c.

(2) The table of sections at the beginning of

chapter 15 of title 18, United States Code, is

amended by striking out the item relating to

section 281.

(3) Section 32 of the Office of Federal Procurement Policy Act (41 U.S.C. 428) is amended by redesignating subsections (d), (e), (f),

and (g) as subsections (c), (d), (e), and (f), respectively.

SEC. 832. FURTHER ACQUISITION STREAMLINING

PROVISIONS.

(a) PURPOSE OF OFFICE OF FEDERAL PROCUREMENT POLICY.—(1) Section 5(a) of the Office of Federal Procurement Policy Act (41

U.S.C. 404) is amended to read as follows:

‘‘(a) To promote economy, efficiency, and

effectiveness in the procurement of property

and services by the executive branch of the

Federal Government, there shall be an Office

of Federal Procurement Policy (hereinafter

referred to as the ‘Office’) in the Office of

Management and Budget to provide overall

direction of Government-wide procurement

policies, regulations, procedures, and forms

for executive agencies.’’.

(2) Sections 2 and 3 of such Act (41 U.S.C.

401 and 402) are repealed.

(b) REPEAL OF REPORT REQUIREMENT.—Section 8 of the Office of Federal Procurement

Policy Act (41 U.S.C. 407) is repealed.

(c) REPEAL OF OBSOLETE PROVISIONS.—(1)

Sections 10 and 11 of the Office of Federal

Procurement Policy Act (41 U.S.C. 409 and

410) are repealed.

(d) CLERICAL AMENDMENTS.—The table of

contents for the Office of Federal Procurement Policy Act (contained in section 1(b))

is amended by striking out the items relating to sections 2, 3, 8, 10, and 11.

SEC. 833. JUSTIFICATION OF MAJOR DEFENSE

ACQUISITION PROGRAMS NOT MEETING GOALS.

Section 2220(b) of title 10, United States

Code, is amended by adding at the end the

following: ‘‘In addition, the Secretary shall

include in such annual report a justification

for the continuation of any program that—

‘‘(1) is more than 50 percent over the cost

goal established for the development, procurement, or operational phase of the program;

‘‘(2) fails to achieve at least 50 percent of

the performance capability goals established

for the development, procurement, or operational phase of the program; or

‘‘(3) is more than 50 percent behind schedule, as determined in accordance with the

schedule goal established for the development, procurement, or operational phase of

the program.’’.

SEC. 834. ENHANCED PERFORMANCE INCENTIVES FOR ACQUISITION WORKFORCE.

(a) ARMED SERVICES ACQUISITIONS.—Subsection (b) of section 5001 of the Federal Acquisition Streamlining Act of 1994 (Public

Law 103–355; 108 Stat. 3350; 10 U.S.C. 2220

note) is amended—

(1) by redesignating paragraphs (1) and (2)

as subparagraphs (A) and (B), respectively;

(2) by designating the second sentence as

paragraph (2);

(3) by inserting ‘‘(1)’’ after ‘‘(b) ENHANCED

SYSTEM OF PERFORMANCE INCENTIVES.—’’; and

(4) by adding at the end the following:

‘‘(3) The Secretary shall include in the enhanced system of incentives the following:

‘‘(A) Pay bands.

‘‘(B) Significant and material pay and promotion incentives to be awarded, and significant and material unfavorable personnel actions to be imposed, under the system exclusively, or primarily, on the basis of the contributions of personnel to the performance of

the acquisition program in relation to cost

goals, performance goals, and schedule goals.

‘‘(C) Provisions for pay incentives and promotion incentives to be awarded under the

system.’’.

(b) CIVILIAN AGENCY ACQUISITIONS.—Subsection (c) of section 5051 of the Federal Acquisition Streamlining Act of 1994 (Public

Law 103–355; 108 Stat. 3351; 41 U.S.C. 263 note)

is amended—

(1) by redesignating subparagraphs (A) and

(B) of paragraph (2) as clauses (i) and (ii); respectively;

(2) by redesignating paragraphs (1) and (2)

as subparagraphs (A) and (B), respectively;

(3) by inserting ‘‘(1)’’ after ‘‘(c) ENHANCED

SYSTEM OF PERFORMANCE INCENTIVES.—’’; and

(4) by adding at the end the following:

‘‘(2) The Deputy Director shall include in

the enhanced system of incentives under

paragraph (1)(B) the following:

‘‘(A) Pay bands.

‘‘(B) Significant and material pay and promotion incentives to be awarded, and significant and material unfavorable personnel actions to be imposed, under the system exclusively, or primarily, on the basis of the contributions of personnel to the performance of

the acquisition program in relation to cost

goals, performance goals, and schedule goals.

‘‘(C) Provisions for pay incentives and promotion incentives to be awarded under the

system.’’.

SEC. 835. RESULTS ORIENTED ACQUISITION PROGRAM CYCLE.

Section 5002(a) of the Federal Acquisition

Streamlining Act of 1994 (Public Law 103–355;

108 Stat. 3350) is amended—

(1) by inserting ‘‘(1)’’ before ‘‘to ensure’’;

and

(2) by striking out the period at the end

and inserting in lieu thereof the following: ‘‘;

(2) to ensure that the regulations compress

the time periods associated with developing,

procuring, and making operational new systems; and (3) to ensure that Department of

Defense directives relating to development

and procurement of information systems

(numbered in the 8000 series) and the Department of Defense directives numbered in the

5000 series are consolidated into one series of

directives that is consistent with such compressed time periods.’’.
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SEC. 836. RAPID CONTRACTING GOAL.

(a) GOAL.—The Office of Federal Procurement Policy Act is amended by adding at the

end the following new section:

‘‘SEC. 35. RAPID CONTRACTING GOAL.

The Administrator for Federal Procurement Policy shall establish a goal of reducing by 50 percent the time necessary for executive agencies to acquire an item for the

user of that item.’’.

(b) CLERICAL AMENDMENT.—The table of

contents for such Act, contained in section

1(b), is amended by adding at the end the following new item:

‘‘Sec. 35. Rapid contracting goal.’’.

SEC. 837. ENCOURAGEMENT OF MULTIYEAR CONTRACTING.

(a) ARMED SERVICES ACQUISITIONS.—Section 2306b(a) of title 10, United States Code,

is amended in the matter preceding paragraph (1) by striking out ‘‘may’’ and inserting in lieu thereof ‘‘shall, to the maximum

extent possible,’’.

(b) CIVILIAN AGENCY ACQUISITIONS.—Section 304B(a) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C.

254c(a)) is amended in the matter preceding

paragraph (1) by striking out ‘‘may’’ and inserting in lieu thereof ‘‘shall, to the maximum extent possible,’’.

SEC. 838. CONTRACTOR SHARE OF GAINS AND

LOSSES FROM COST, SCHEDULE,

AND PERFORMANCE EXPERIENCE.

(a) ARMED SERVICES ACQUISITIONS.—(1)

Chapter 137 of title 10, United States Code, is

amended by inserting after section 2306b the

following new section:

‘‘§ 2306c. Contractor share of gains and losses

from cost, schedule, and performance experience

‘‘The Federal Acquisition Regulation shall

contain provisions to ensure that, for any

cost-type contract or incentive-type contract, the contractor may be rewarded for

contract performance exceeding the contract

cost, schedule, or performance parameters to

the benefit of the United States and may be

penalized for failing to adhere to cost, schedule, or performance parameters to the detriment of the United States.’’.

(2) The table of sections at the beginning of

such chapter is amended by inserting after

the item relating to section 2306b the following new item:

‘‘2306c. Contractor share of gains and losses

from cost, schedule, and performance experience.’’.

(b) CIVILIAN AGENCY ACQUISITIONS.—(1)

Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et

seq.) is amended by inserting after section

304C the following new section:

‘‘SEC. 304D. CONTRACTOR SHARE OF GAINS AND

LOSSES FROM COST, SCHEDULE,

AND PERFORMANCE EXPERIENCE.

‘‘The Federal Acquisition Regulation shall

contain provisions to ensure that, for any

cost-type contract or incentive-type contract, the contractor may be rewarded for

contract performance exceeding the contract

cost, schedule, or performance parameters to

the benefit of the United States and may be

penalized for failing to adhere to cost, schedule, or performance parameters to the detriment of the United States.’’.

(2) The table of contents for such Act, contained in section 1(b), is amended by inserting after the item relating to section 304C

the following new item:

‘‘Sec. 304D. Contractor share of gains and

losses from cost, schedule, and

performance experience.’’.

SEC. 839. PHASE FUNDING OF DEFENSE ACQUISITION PROGRAMS.

Chapter 131 of title 10, United States Code,

is amended by adding at the end the following new section:

‘‘§ 2221. Funding for results oriented acquisition program cycle

‘‘Before initial funding is made available

for the development, procurement, or operational phase of an acquisition program for

which an authorization of appropriations is

required by section 114 of this title, the Secretary of Defense shall submit to Congress

information about the objectives and plans

for the conduct of that phase and the funding

requirements for the entire phase. The information shall identify the intended user of

the system to be acquired under the program

and shall include objective, quantifiable criteria for assessing the extent to which the

objectives and goals determined pursuant to

section 2435 of this title are achieved.’’.

(2) The table of sections at the beginning of

such chapter is amended by adding at the

end the following new item:

‘‘2221. Funding for results oriented acquisition program cycle.’’.

SEC. 840. IMPROVED DEPARTMENT OF DEFENSE

CONTRACT PAYMENT PROCEDURES.

(a) REVIEW AND IMPROVEMENT OF PROCEDURES.—The Comptroller General of the

United States shall review commercial practices regarding accounts payable and, considering the results of the review, develop

standards for the Secretary of Defense to

consider using for improving the contract

payment procedures and financial management systems of the Department of Defense.

(b) GAO REPORT.—Not later than September 30, 1996, the Comptroller General

shall submit to Congress a report containing

the following matters:

(1) The weaknesses in the financial management processes of the Department of Defense.

(2) Deviations of the Department of Defense payment procedures and financial management systems from the standards developed pursuant to subsection (a), expressed

quantitatively.

(3) The officials of the Department of Defense who are responsible for resolving the

deviations.

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

(a) REQUIREMENT.—Section 1701(a) of title

10, United States Code, is amended by adding

at the end the following: ‘‘The policies and

procedures shall provide that education and

training in acquisition matters, and past

performance of acquisition responsibilities,

are major factors in the selection of personnel for assignment to acquisition positions in the Department of Defense.’’.

(b) PERFORMANCE REQUIREMENTS FOR ASSIGNMENT.—(1) Section 1723(a) of title 10,

United States Code, is amended by inserting

‘‘, including requirements relating to demonstrated past performance of acquisition

duties,’’ in the first sentence after ‘‘experience requirements’’.

(2) Section 1724(a)(2) of such title is amended by inserting before the semicolon at the

end the following: ‘‘and have demonstrated

proficiency in the performance of acquisition

duties in the contracting position or positions previously held’’.

(3) Section 1735 of such title is amended—

(A) in subsection (b)—

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

paragraph (2);

(ii) by striking out the period at the end of

paragraph (3) and inserting in lieu thereof ‘‘;

and’’; and

(iii) by adding at the end the following:

‘‘(4) must have demonstrated proficiency in

the performance of acquisition duties.’’;

(B) in subsection (c)—

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

paragraph (2);

(ii) by striking out the period at the end of

paragraph (3) and inserting in lieu thereof ‘‘;

and’’; and

(iii) by adding at the end the following:

‘‘(4) must have demonstrated proficiency in

the performance of acquisition duties.’’;

(C) in subsection (d), by inserting before

the period at the end the following: ‘‘, and

have demonstrated proficiency in the performance of acquisition duties’’; and

(D) in subsection (e), by inserting before

the period at the end the following: ‘‘, and

have demonstrated proficiency in the performance of acquisition duties’’.

SEC. 842. VALUE ENGINEERING FOR FEDERAL

AGENCIES.

(a) USE OF VALUE ENGINEERING.—The Office

of Federal Procurement Policy Act (41 U.S.C.

401 et seq.), as amended by section 837, is further amended by adding at the end the following new section:

‘‘SEC. 37. VALUE ENGINEERING.

‘‘(a) IN GENERAL.—Each executive agency

shall establish and maintain effective value

engineering procedures and processes.

‘‘(b) THRESHOLD.—The procedures and processes established pursuant to subsection (a)

shall be applied to those programs, projects,

systems, and products of an executive agency that, in a ranking of all programs,

projects, systems, and products of the agency according to greatest dollar value, are

within the highest 20th percentile.

‘‘(c) DEFINITION.—As used in this section,

the term ‘value engineering’ means a team

effort, performed by qualified agency or contractor personnel, directed at analyzing the

functions of a program, project, system,

product, item of equipment, building, facility, service, or supply for the purpose of

achieving the essential functions at the lowest life-cycle cost that is consistent with required or improved performance, reliability,

quality, and safety.’’.

(b) CLERICAL AMENDMENT.—The table of

contents for such Act, contained in section

1(b), is amended by adding at the end the following new item:

‘‘Sec. 37. Value engineering.’’.

SEC. 843. ACQUISITION WORKFORCE.

(a) ACQUISITION WORKFORCE.—(1) The Office

of Federal Procurement Policy Act (41 U.S.C.

401 et seq.), as amended by section 843, is further amended by adding at the end the following new section:

‘‘SEC. 38. ACQUISITION WORKFORCE.

‘‘(a) APPLICABILITY.—This section does not

apply to an executive agency that is subject

to chapter 87 of title 10, United States Code.

‘‘(b) MANAGEMENT POLICIES.—

‘‘(1) POLICIES AND PROCEDURES.—The head

of each executive agency, after consultation

with the Administrator for Federal Procurement Policy, shall establish policies and procedures for the effective management (including accession, education, training, career development, and performance incentives) of the acquisition workforce of the

agency. The development of acquisition

workforce policies under this section shall be

carried out consistent with the merit system

principles set forth in paragraphs (1) and (2)

of section 2301(b) of title 5, United States

Code.

‘‘(2) UNIFORM IMPLEMENTATION.—The head

of each executive agency shall ensure that,

to the maximum extent practicable, acquisition workforce policies and procedures established are uniform in their implementation

throughout the agency.

‘‘(3) GOVERNMENTWIDE POLICIES AND EVALUATION.—The Administrator shall issue policies to promote uniform implementation of
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this section by executive agencies, with due

regard for differences in program requirements among agencies that may be appropriate and warranted in view of the agency

mission. The Administrator shall coordinate

with the Deputy Director for Management of

the Office of Management and Budget to ensure that such policies are consistent with

the policies and procedures established and

enhanced system of incentives provided pursuant to section 5051(c) of the Federal Acquisition Streamlining Act of 1994 (41 U.S.C. 263

note). The Administrator shall evaluate the

implementation of the provisions of this section by executive agencies.

‘‘(c) SENIOR PROCUREMENT EXECUTIVE AUTHORITIES AND RESPONSIBILITIES.—Subject to

the authority, direction, and control of the

head of an executive agency, the senior procurement executive of the agency shall carry

out all powers, functions, and duties of the

head of the agency with respect to implementation of this section. The senior procurement executive shall ensure that the

policies of the head of the executive agency

established in accordance with this section

are implemented throughout the agency.

‘‘(d) MANAGEMENT INFORMATION SYSTEMS.—

The Administrator shall ensure that the

heads of executive agencies collect and

maintain standardized information on the

acquisition workforce related to implementation of this section. To the maximum extent practicable, such data requirements

shall conform to standards established by

the Office of Personnel Management for the

Central Personnel Data File.

‘‘(e) ACQUISITION WORKFORCE.—The programs established by this section shall apply

to all employees in the General Schedule

Contracting series (GS–1102) and the General

Schedule Purchasing series (GS–1105), and to

any employees regardless of series who have

been appointed as contracting officers whose

authority exceeds the micro-purchase

threshold, as that term is defined in section

32(g). The head of each executive agency may

include employees in other series who perform acquisition or acquisition-related functions.

‘‘(f) CAREER DEVELOPMENT.—

‘‘(1) CAREER PATHS.—The head of each executive agency shall ensure that appropriate

career paths for personnel who desire to pursue careers in acquisition are identified in

terms of the education, training, experience,

and assignments necessary for career progression to the most senior acquisition positions. The head of each executive agency

shall make information available on such career paths.

‘‘(2) CRITICAL DUTIES AND TASKS.—For each

career path, the head of each executive agency shall identify the critical acquisition-related duties and tasks in which, at minimum, employees of the agency in the career

path shall be competent to perform at full

performance grade levels. For this purpose,

the head of the executive agency shall provide appropriate coverage of the critical duties and tasks identified by the Director of

the Federal Acquisition Institute.

‘‘(3) MANDATORY TRAINING AND EDUCATION.—For each career path, the head of

each executive agency shall establish requirements for the completion of course

work and related on-the-job training in the

critical acquisition-related duties and tasks

of the career path. The head of each executive agency shall also encourage employees

to maintain the currency of their acquisition

knowledge and generally enhance their

knowledge of related acquisition management disciplines through academic programs

and other self-developmental activities.

‘‘(4) PERFORMANCE INCENTIVES.—The head

of each executive agency, acting through the

senior procurement executive for the agency,

shall provide for an enhanced system of incentives for the encouragement of excellence

in the acquisition workforce which rewards

performance of employees that contribute to

achieving the agency’s performance goals.

The system of incentives shall include provisions that—

‘‘(A) relate pay to performance;

‘‘(B) provide for consideration, in personnel

evaluations and promotion decisions, of the

extent to which the performance of personnel contributed to achieving the agency’s

performance goals; and

‘‘(C) provide pay and promotion incentives

to be awarded, and unfavorable personnel actions to be imposed, under the system on the

basis of the contributions of personnel to

achieving the agency’s performance goals.

‘‘(g) QUALIFICATION REQUIREMENTS.—

‘‘(1) GENERAL SCHEDULE CONTRACTING SERIES (GS–1102).—

‘‘(A) ENTRY LEVEL QUALIFICATIONS.—The

Director of the Office of Personnel Management shall require that, after October 1, 1996,

a person may not be appointed to a position

in the GS–1102 occupational series unless the

person—

‘‘(i) has received a baccalaureate degree

from an accredited educational institution

authorized to grant baccalaureate degrees,

‘‘(ii) has completed at least 24 semester

credit hours (or the equivalent) of study

from an accredited institution of higher education in any of the following disciplines: accounting, business finance, law, contracts,

purchasing, economics, industrial management, marketing, quantitative methods, or

organization and management, or

‘‘(iii) has passed a written test determined

by the Administrator for Federal Procurement Policy, after consultation with the Director of the Office of Personnel Management, to demonstrate the judgmental skills

necessary for positions in this series.

‘‘(B) QUALIFICATIONS FOR SENIOR CONTRACTING POSITIONS.—The Director of the Office of Personnel Management shall require

that, after October 1, 1996, persons may be

appointed to positions at and above full performance grade levels in the GS–1102 occupational series only if those persons—

‘‘(i) have satisfied the educational requirement either of subsection (g)(1)(A)(i) or subsection (g)(1)(A)(ii),

‘‘(ii) have successfully completed all training required for the position under subsection (f)(3), and

‘‘(iii) have satisfied experience and other

requirements established by the Director for

such positions.

However, this requirement shall apply to

persons employed on October 1, 1996, in GS–

1102 positions at those grade levels only as a

prerequisite for promotion to a GS–1102 position at a higher grade.

‘‘(2) GENERAL SCHEDULE PURCHASING SERIES

(GS–1105).—The Director of the Office of Personnel Management shall require that, after

October 1, 1996, a person may not be appointed to a position in the GS–1105 occupational series unless the person—

‘‘(A) has successfully completed 2 years of

course work from an accredited educational

institution authorized to grant degrees, or

‘‘(B) has passed a written test determined

by the Administrator for Federal Procurement Policy, after consultation with the Director of the Office of Personnel Management, to demonstrate the judgmental skills

necessary for positions in this series.

‘‘(3) CONTRACTING OFFICERS.—The head of

each executive agency shall require that, beginning after October 1, 1996, a person may

be appointed as a contracting officer with

authority to award or administer contracts

for amounts above the micro-purchase

threshold, as that term is defined in section

32(g), only if the person—

‘‘(A) has successfully completed all mandatory training required of an employee in an

equivalent GS–1102 or 1105 position under

subsection (f)(3); and

‘‘(B) meets experience and other requirements established by the head of the agency,

based on the dollar value and complexity of

the contracts that the employee will be authorized to award or administer under the

appointment as a contracting officer.

‘‘(4) EXCEPTIONS.—(A) The requirements set

forth in subsection (g)(1) and (2), as applicable, shall not apply to any person employed

in the GS–1101 or GS–1105 series on October 1,

1996.

‘‘(B) Employees of an executive agency

who do not satisfy the full qualification requirements for appointment as a contracting

officer under subsection (g)(3) may be appointed as a contracting officer for a temporary period of time under procedures established by the agency head. The procedures shall—

‘‘(i) require that the person have completed

a significant portion of the required training,

‘‘(ii) require a plan be established for the

balance of the required training,

‘‘(iii) specify a period of time for completion of the training, and

‘‘(iv) include provisions for withdrawing or

terminating the appointment prior to the

scheduled expiration date, where appropriate.

‘‘(5) WAIVER.—The senior procurement executive for an executive agency may waive

any or all of the qualification requirements

of subsections (g)(1) and (2) for a person if

the person possesses significant potential for

advancement to levels of greater responsibility and authority, based on demonstrated

job performance and qualifying experience.

This authority may not be redelegated by

the senior procurement executive. With respect to each waiver granted under this subsection, the senior procurement executive

shall set forth in writing the rationale for

the decision to waive such requirements.

‘‘(h) PROGRAM ESTABLISHMENT AND IMPLEMENTATION.—

‘‘(1) FUNDING LEVELS.—(A) The head of an

executive agency shall request in the budget

for a fiscal year for the agency—

‘‘(i) for education and training under this

section, an amount equal to no less than 2.5

percent of the base aggregate salary cost of

the acquisition workforce subject to this section for that fiscal year; and

‘‘(ii) for salaries of the acquisition workforce, an amount equal to no more than 97.5

percent of such base aggregate salary cost.

‘‘(B) The head of the executive agency

shall set forth separately the funding levels

requested in the budget justification documents submitted in support of the President’s budget submitted to Congress under

section 1105 of title 31, United States Code.

‘‘(C) Funds appropriated for education and

training under this section may not be obligated or used for any other purpose.

‘‘(2) INTERAGENCY AGREEMENTS.—The head

of an executive agency may enter into a

written agreement with another agency to

participate in programs established under

this section on a reimbursable basis.

‘‘(3) TUITION ASSISTANCE.—Notwithstanding

the prohibition in section 4107(b) of title 5,

United States Code, the head of each executive agency may provide for tuition reimbursement and education (including a fulltime course of study leading to a degree) for

acquisition personnel in the agency related

to the purposes of this section.

‘‘(4) INTERN PROGRAMS.—The head of each

executive agency may establish intern programs in order to recruit highly qualified

and talented individuals and provide them

with opportunities for accelerated promotions, career broadening assignments, and

specified training for advancement to senior

acquisition positions. For such programs,
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the head of an executive agency, without regard to the provisions of title 5, United

States Code, may appoint individuals to

competitive GS–5, GS–7, or GS–9 positions in

the General Schedule Contracting series

(GS–1102) who have graduated from baccalaureate or master’s programs in purchasing

or contracting from accredited educational

institutions authorized to grant baccalaureate and master’s degrees.

‘‘(5) COOPERATIVE EDUCATION PROGRAM.—

The head of each executive agency may establish an agencywide cooperative education

credit program for acquisition positions.

Under the program, the head of the executive

agency may enter into cooperative arrangements with one or more accredited institutions of higher education which provide for

such institutions to grant undergraduate

credit for work performed in such position.

‘‘(6) SCHOLARSHIP PROGRAM.—

‘‘(A) ESTABLISHMENT.—Where deemed appropriate, the head of each executive agency

may establish a scholarship program for the

purpose of qualifying individuals for acquisition positions in the agency.

‘‘(B) ELIGIBILITY.—To be eligible to participate in a scholarship program established

under this paragraph by an executive agency, an individual must—

‘‘(i) be accepted for enrollment or be currently enrolled as a full-time student at an

accredited educational institution authorized to grant baccalaureate or graduate degrees (as appropriate);

‘‘(ii) be pursuing a course of education that

leads toward completion of a bachelor’s,

master’s, or doctor’s degree (as appropriate)

in a qualifying field of study, as determined

by the head of the agency;

‘‘(iii) sign an agreement described in subparagraph (C) under which the participant

agrees to serve a period of obligated service

in the agency in an acquisition position in

return for payment of educational assistance

as provided in the agreement; and

‘‘(iv) meet such other requirements as the

head of the agency prescribes.

‘‘(C) AGREEMENT.—An agreement between

the head of an executive agency and a participant in a scholarship program established

under this paragraph shall be in writing,

shall be signed by the participant, and shall

include the following provisions:

‘‘(i) The agreement of the head of the agency to provide the participant with educational assistance for a specified number of

school years, not to exceed 4, during which

the participant is pursuing a course of education in a qualifying field of study. The assistance may include payment of tuition,

fees, books, laboratory expenses, and a stipend.

‘‘(ii) The participant’s agreement—

‘‘(I) to accept such educational assistance,

‘‘(II) to maintain enrollment and attendance in the course of education until completed,

‘‘(III) while enrolled in such course, to

maintain an acceptable level of academic

standing (as prescribed by the head of the

agency), and

‘‘(IV) after completion of the course of education, to serve as a full-time employee in an

acquisition position in the agency for a period of time of one calendar year for each

school year or part thereof for which the participant was provided a scholarship under

the program.

‘‘(D) REPAYMENT.—(i) Any person participating in a program established under this

paragraph shall agree to pay to the United

States the total amount of educational assistance provided to the person under the

program if the person is voluntarily separated from the agency or involuntarily separated for cause from the agency before the

end of the period for which the person has

agreed to continue in the service of the agency in an acquisition position.

‘‘(ii) If an employee fails to fulfill the

agreement to pay to the Government the

total amount of educational assistance provided to the person under the program, a

sum equal to the amount of the educational

assistance may be recovered by the Government from the employee (or the estate of the

employee) by setoff against accrued pay,

compensation, amount of retirement credit,

or other amount due the employee from the

Government; and by such other method as is

provided by law for the recovery of amounts

owing to the Government.

‘‘(iii) The head of an executive agency may

waive in whole or in part a repayment required under this paragraph if the head of

the agency determines the recovery would be

against equity and good conscience or would

be contrary to the best interests of the

United States.

‘‘(E) TERMINATION OF AGREEMENT.—There

shall be no requirement that a position be offered to a person after such person successfully completes a course of education required by an agreement under this paragraph. If no position is offered, the agreement shall be considered terminated.’’.

(2) The table of contents for such Act, contained in section 1(b), is amended by adding

at the end the following new item:

‘‘Sec. 38. Acquisition workforce.’’.

(b) FEDERAL ACQUISITION INSTITUTE.—Section 6 of the Office of Federal Procurement

Policy Act (41 U.S.C. 405), is amended—

(1) in subsection (d) by amending paragraph (5) to read as follows:

‘‘(5) providing for and directing the activities of the Federal Acquisition Institute (including recommending to the Administrator

of General Services a sufficient budget for

such activities), which shall be located in the

General Services Administration;’’; and

(2) by adding at the end the following new

subsection:

‘‘(l) The Federal Acquisition Institute

shall—

‘‘(1) recommend policies, procedures, and

guidelines to the Administrator, for—

‘‘(A) fostering and promoting the development of a professional acquisition workforce

governmentwide, and

‘‘(B) administering the provisions of section 35;

‘‘(2) collect data and analyze acquisition

workforce data from the Office of Personnel

Management, the heads of executive agencies, and, through periodic surveys, from individual employees;

‘‘(3) periodically analyze acquisition career

fields to identify critical competencies, duties, tasks, and related academic prerequisites, skills, and knowledge;

‘‘(4) coordinate and assist agencies in identifying and recruiting highly qualified candidates for acquisition fields;

‘‘(5) develop instructional materials for acquisition personnel in coordination with private and public acquisition colleges and

training facilities;

‘‘(6) evaluate the effectiveness of training

and career development programs for acquisition personnel;

‘‘(7) promote the establishment and utilization of academic programs by colleges and

universities in acquisition fields;

‘‘(8) promote, coordinate, or conduct governmentwide research and studies to improve the acquisition process and the laws,

policies, methods, regulations, procedures,

and forms relating to acquisition by the executive agencies;

‘‘(9) facilitate, to the extent requested by

agencies, interagency intern and training

programs; and

‘‘(10) perform other career management or

research functions as directed by the Administrator.’’.

(c) REPEAL OF SUPERSEDED PROVISION.—

Section 502 of the Small Business and Federal Procurement Competition Enhancement

Act of 1984 (41 U.S.C. 414a) is repealed.

SEC. 844. COST REIMBURSEMENT RULES FOR INDIRECT COSTS ATTRIBUTABLE TO

PRIVATE SECTOR WORK OF DEFENSE CONTRACTORS.

(a) DEFENSE CAPABILITY PRESERVATION

AGREEMENT.—The Secretary of Defense may

enter into an agreement, to be known as a

‘‘defense capability preservation agreement’’, with a defense contractor under

which the cost reimbursement rules described in subsection (b) shall be applied.

Such an agreement may be entered into in

any case in which the Secretary determines

that the application of such cost reimbursement rules would facilitate the achievement

of the policy set forth in section 2501(c) of

title 10, United States Code.

(b) COST REIMBURSEMENT RULES.—(1) The

cost reimbursement rules applicable under

an agreement entered into under subsection

(a) are as follows:

(A) The Department of Defense shall, in determining the reimbursement due a contractor for its indirect costs of performing a

defense contract, allow the contractor to allocate indirect costs to its private sector

work only to the extent of the contractor’s

allocable indirect private sector costs, subject to subparagraph (C).

(B) For purposes of subparagraph (A), the

allocable indirect private sector costs of a

contractor are those costs of the contractor

that are equal to the amount by which the

revenue attributable to the private sector

work of the contractor exceeds the sum of—

(i) the direct costs attributable to such

work, and

(ii) the incremental indirect costs attributable to such work.

(C) The total amount of allocable indirect

private sector costs for a contract in any

year of the agreement may not exceed the

amount of indirect costs that a contractor

would have allocated to its private sector

work during that year in accordance with

the contractor’s accounting practices.

(2) The cost reimbursement rules set forth

in paragraph (1) may be modified if the Secretary of Defense determines that modifications are appropriate to the particular situation to facilitate achievement of the policy

set forth in section 2501(c) of title 10, United

States Code.

(c) RELATIONSHIP TO ACCOUNTING PRACTICE

CHANGE.—The use of the cost reimbursement

rules described in subsection (b) under such

an agreement with a contractor and the implementation of such an agreement does not

constitute a change in cost accounting practices of the contractor within the meaning of

section 26(h)(1)(B) of the Office of Federal

Procurement Policy Act (41 U.S.C.

422(h)(1)(B)).

(d) CONTRACTS COVERED.—An agreement

entered into with a contractor under subsection (a) shall apply to all Department of

Defense contracts with the contractor either

existing on the date on which the agreement

was entered into or awarded during the term

of the agreement.

Subtitle D—Streamlining of Dispute

Resolution

PART I—GENERAL PROVISIONS

SEC. 850. DEFINITIONS.

In this subtitle:

(1) The term ‘‘Board’’ means the United

States Board of Contract Appeals.

(2) The term ‘‘Board judge’’ means a member of the United States Board of Contract

Appeals.
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(3) The term ‘‘Chairman’’ means the Chairman of the United States Board of Contract

Appeals.

(4) The term ‘‘executive agency’’ has the

meaning given by section 2(2) of the Contract

Disputes Act of 1978 (41 U.S.C. 601(2)).

(5) The term ‘‘alternative means of dispute

resolution’’ has the meaning given by section 571(3) of title 5, United States Code.

(6) The term ‘‘protest’’ means a written objection by an interested party to any of the

following:

(A) A solicitation or other request by an

executive agency for offers for a contract for

the procurement of property or services.

(B) The cancellation of such a solicitation

or other request.

(C) An award or proposed award of such a

contract.

(D) A termination or cancellation of an

award of such a contract, if the written objection contains an allegation that the termination or cancellation is based in whole or

in part on improprieties concerning the

award of the contract.

(7) The term ‘‘interested party’’, with respect to a contract or a solicitation or other

request for offers, means an actual or prospective bidder or offeror whose direct economic interest would be affected by the

award of the contract or by failure to award

the contract.

(8) The term ‘‘prevailing party’’, with respect to a determination of the Board under

section 864(b) that a decision of a contracting officer violates a statute or regulation, means a party that demonstrated such

violation.

PART II—ESTABLISHMENT OF THE

UNITED STATES BOARD OF CONTRACT

APPEALS

SEC. 851. ESTABLISHMENT.

There is established in the executive

branch of the Government an independent

establishment to be known as the United

States Board of Contract Appeals.

SEC. 852. MEMBERSHIP.

(a) APPOINTMENT.—(1) The Board shall consist of Board judges appointed by the Chairman, without regard to political affiliation

and solely on the basis of the professional

qualifications required to perform the duties

and responsibilities of a Board judge, from a

register of applicants maintained by the

Board.

(2) The members of the Board shall be selected and appointed to serve in the same

manner as administrative law judges appointed pursuant to section 3105 of title 5,

United States Code, with an additional requirement that such members shall have had

not fewer than five years’ experience in public contract law.

(3) Notwithstanding paragraph (2) and subject to subsection (b), the following persons

shall serve as Board judges:

(A) Any full-time member of an agency

board of contract appeals serving as such on

the day before the effective date of this subtitle.

(B) Any person serving on the day before

the date of the enactment of this Act in a position at a level of assistant general counsel

or higher with authority delegated from the

Comptroller General to decide bid protests

under subchapter V of chapter 35 of title 31,

United States Code.

(b) REMOVAL.—Members of the Board shall

be subject to removal in the same manner as

administrative law judges, as provided in

section 7521 of title 5, United States Code.

(c) COMPENSATION.—Compensation for the

Chairman and all other members of the

Board shall be determined under section

5273a of title 5, United States Code.

SEC. 853. CHAIRMAN.

(a) DESIGNATION.—(1) The Chairman shall

be designated by the President to serve for a

term of five years. The President shall select

the Chairman from among sitting Board

judges each of whom has had at least five

years of service—

(A) as a member of an agency board of contract appeals; or

(B) in a position at a level of assistant general counsel or higher with authority delegated from the Comptroller General to decide bid protests under subchapter V of chapter 35 of title 31, United States Code (as in effect on the day before the effective date of

this subtitle).

(2) A Chairman may continue to serve after

the expiration of the Chairman’s term until

a successor has taken office. A Chairman

may be reappointed any number of times.

(b) RESPONSIBILITIES.—The Chairman shall

be responsible on behalf of the Board for the

executive and administrative operation of

the Board, including functions of the Board

with respect to the following:

(1) The selection, appointment, and fixing

of the compensation of such personnel, pursuant to part III of title 5, United States

Code, as the Chairman considers necessary

or appropriate, including a Clerk of the

Board, a General Counsel, and clerical and

legal assistance for Board judges.

(2) The supervision of personnel employed

by or assigned to the Board, and the distribution of work among such personnel.

(3) The response to any request that may

be made by Congress or the Office of Management and Budget.

(4) The allocation of funds among the various functions of the Board.

(5) The entering into and performance of

such contracts, leases, cooperative agreements, or other similar transactions with

public agencies and private organizations

and persons, and the making of such payments, as the Chairman considers necessary

or appropriate to carry out functions vested

in the Board.

(6) The operation of an Office of the Clerk

of the Board, including the receipt of all filings made with the Board, the assignment of

cases, and the maintenance of all records of

the Board.

(7) The acquisition, operation, and maintenance of such automatic data processing resources as may be needed by the Board.

(8) The prescription of such rules and regulations as the Chairman considers necessary

or appropriate for the administration and

management of the Board.

(c) VICE CHAIRMEN.—The Chairman may

designate up to four other Board judges as

Vice Chairmen. The Chairman may divide

the Board into two or more divisions, and, if

such division is made, shall assign a Vice

Chairman to head each division. The Vice

Chairmen, in the order designated by the

Chairman, shall act in the place and stead of

the Chairman during the absence of the

Chairman.

SEC. 854. RULEMAKING AUTHORITY.

(a) IN GENERAL.—The Board may

establish—

(1) such procedural rules and regulations as

are necessary to the exercise of its functions,

including internal rules for the assignment

of cases; and

(2) statements of policy of general applicability with respect to its functions.

(b) PROHIBITION ON REVIEW BY OTHER AGENCY OR PERSON.—Rules and regulations established by the Board (including forms which

are a part thereof) shall not be subject to review by any other agency or person (including the Administrator of Information and

Regulatory Affairs, pursuant to chapter 35 of

title 44, United States Code) in advance of

publication.

SEC. 855. LITIGATION AUTHORITY.

Except as provided in section 518 of title 28,

United States Code, relating to litigation before the Supreme Court, attorneys designated by the Chairman may appear for,

and represent the Board in, any civil action

brought in connection with any function carried out by the Board.

SEC. 856. SEAL OF BOARD.

The Chairman shall cause a seal of office

to be made for the Board of such design as

the Board shall approve. Judicial notice

shall be taken of such seal.

SEC. 857. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated for

fiscal year 1997 and each succeeding fiscal

year such sums as may be necessary to carry

out the provisions of this subtitle and to enable the Board to perform its functions.

Funds appropriate pursuant to this section

shall remain available until expended.

PART III—FUNCTIONS OF UNITED STATES

BOARD OF CONTRACT APPEALS

SEC. 861. ALTERNATIVE DISPUTE RESOLUTION

SERVICES.

(a) REQUIREMENT TO PROVIDE SERVICES

UPON REQUEST.—The Board shall provide alternative means of dispute resolution for any

disagreement regarding a contract or prospective contract of an executive agency

upon the request of all parties to the disagreement.

(b) PERSONNEL QUALIFIED TO ACT.—Each

Board judge and each attorney employed by

the Board shall be considered to be qualified

to act for the purpose of conducting alternative means of dispute resolution under

this section.

(c) SERVICES TO BE PROVIDED WITHOUT

CHARGE.—Any services provided by the

Board or any Board judge or employee pursuant to this section shall be provided without

charge.

(d) RECUSAL OF CERTAIN PERSONNEL UPON

REQUEST.—In the event that a matter which

is presented to the Board for alternative

means of dispute resolution, pursuant to this

section, later becomes the subject of formal

proceedings before the Board, any Board

judge or employee who was involved in the

alternative means shall, if requested by any

party to the formal proceeding, take no part

in that proceeding.

SEC. 862. ALTERNATIVE DISPUTE RESOLUTION

OF DISPUTES AND PROTESTS SUBMITTED TO BOARD.

With reasonable promptness after the submission to the Board of a contract dispute

under section 863 or a bid protest under section 864, a Board judge to whom the contract

dispute or protest is assigned shall request

the parties to meet with a Board judge, or an

attorney employed by the Board, for the purpose of attempting to resolve the dispute or

protest through alternative means of dispute

resolution. Formal proceedings in the appeal

shall then be suspended until such time as

any party or a Board judge to whom the dispute or protest is assigned determines that

alternative means of dispute resolution are

not appropriate for resolution of the dispute

or protest.

SEC. 863. CONTRACT DISPUTES.

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

SEC. 864. PROTESTS.

(a) REVIEW REQUIRED UPON REQUEST.—

Upon request of an interested party in connection with any procurement conducted by

any executive agency, the Board shall review, as provided in this section, any decision by a contracting officer alleged to violate a statute or regulation. The authority of

the Board to conduct such review shall include the authority to review regulations to

determine their consistency with applicable

statutes. A decision or order of the Board

pursuant to this section shall not be subject

to interlocutory appeal or review.
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(b) STANDARD OF REVIEW.—In deciding a

protest, the Board may consider all evidence

that is relevant to the decision under protest. It shall accord a presumption of correctness to all facts found and determinations made by the contracting officer whose

decision is being protested. The protester

may rebut this presumption by showing, by a

preponderance of the evidence, that a finding

or determination was incorrect. The Board

may find that a decision by a contracting officer violates a statute or regulation for any

of the reasons stated in section 706(2) of title

5, United States Code.

(c) DETERMINATION OF WHETHER TO SUSPEND AUTHORITY TO CONDUCT PROCUREMENT

IN PROTEST FILED BEFORE CONTRACT

AWARD.—(1) When a protest under this section is filed before the award of a contract in

a protested procurement, the Board, at the

request of an interested party and within 10

days after the submission of the protest,

shall hold a hearing to determine whether

the Board should suspend the authority of

the executive agency involved (or its head)

to conduct such procurement until the Board

can decide the protest.

(2) The Board shall suspend the authority

of the executive agency (or its head) unless

the agency concerned establishes that—

(A) absent action by the Board, contract

award is likely to occur within 30 days after

the hearing; and

(B) urgent and compelling circumstances

which significantly affect interests of the

United States will not permit waiting for the

decision of the Board.

(3) A suspension under paragraph (2) shall

not preclude the executive agency concerned

from continuing the procurement process up

to but not including award of the contract

unless the Board determines such action is

not in the best interests of the United

States.

(d) DETERMINATION OF WHETHER TO SUSPEND AUTHORITY TO CONDUCT PROCUREMENT

IN PROTEST FILED AFTER CONTRACT AWARD.—

(1) If, with respect to an award of a contract,

the Board receives notice of a protest under

this section within the period described in

paragraph (2), the Board shall, at the request

of an interested party, hold a hearing to determine whether the Board should suspend

the authority of the executive agency involved (or its head) to conduct such procurement until the Board can decide the protest.

(2) The period referred to in paragraph (1)

is the period beginning on the date on which

the contract is awarded and ending at the

end of the later of—

(A) the tenth day after the date of contract

award; or

(B) the fifth day after the debriefing date

offered to an unsuccessful offeror for any debriefing that is requested and, when requested, is required.

(3) The Board shall hold the requested

hearing within 5 days after the date of the

filing of the protest or, in the case of a request for debriefing, within 5 days after the

later of the date of the filing of the protest

or the date of the debriefing.

(4) The Board shall suspend the procurement authority of the executive agency involved (or its head) to acquire any goods or

services under the contract which are not

previously delivered and accepted unless

such agency establishes that urgent and

compelling circumstances which significantly affect interests of the United States

will not permit waiting for the decision of

the Board.

(e) PROCEDURES.—

(1) PROCEEDINGS AND DISCOVERY.—The

Board shall conduct proceedings and allow

such discovery as may be required for the expeditious, fair, and reasonable resolution of

the protest. The Board shall limit discovery

to material which is relevant to the grounds

of protest or to such affirmative defenses as

the executive agency involved, or any intervenor supporting the agency, may raise.

(2) PRIORITY.—The Board shall give priority to protests filed under this section over

contract disputes and alternative dispute

services. Except as provided in paragraph (3),

the Board shall issue its final decision within

65 days after the date of the filing of the protest, unless the Chairman determines that

the specific and unique circumstances of the

protest require a longer period, in which case

the Board shall issue such decision within

the longer period determined by the Chairman. An amendment that adds a new ground

of protest should be resolved, to the maximum extent practicable, within the time

limits established for resolution of the initial protest.

(3) THRESHOLD.—Any protest in which the

anticipated value of the contract award that

will result from the protested procurement,

as estimated by the executive agency involved, is less than $1,000,000 shall be considered under simplified rules of procedure.

These rules shall provide that discovery in

such protests shall be in writing only. Such

protests shall be decided by a single Board

judge, whose decision shall be final and conclusive and shall not be set aside except in

cases of fraud. The Board shall issue its final

decision in each such protest within 35 days

after the date of the filing of the protest.

(4) CALCULATION OF TIME FOR ADR.—In calculating time for purposes of paragraph (2)

or (3) of this subsection, any days during

which proceedings are suspended for the purpose of attempting to resolve the protest by

alternative means of dispute resolution, up

to a maximum of 20 days, shall not be counted.

(5) DISMISSAL OF FRIVOLOUS PROTESTS.—The

Board may dismiss a protest that the Board

determines is frivolous or which, on its face,

does not state a valid basis for protest.

(6) PAYMENT OF COSTS FOR FRIVOLOUS PROTESTS.—(A) If the Board expressly finds that

a protest or a portion of a protest is frivolous or does not state on its face a valid

basis for protest, the Board shall declare

that the protester or other interested party

who joins the protest is liable to the United

States for payment of the costs described in

subparagraph (B) unless—

(i) special circumstances would make such

payment unjust; or

(ii) the protester obtains documents or

other information after the protest is filed

with the Board that establishes that the protest or a portion of the protest is frivolous or

does not state on its face a valid basis for

protest, and the protester then promptly

withdraws the protest or portion of the protest.

(B) The costs referred to in subparagraph

(A) are all of the costs incurred by the

United States of reviewing the protest, or of

reviewing that portion of the protest for

which the finding is made, including the fees

and other expenses (as defined in section

2412(d)(2)(A) of title 28, United States Code)

incurred by the United States in defending

the protest.

(f) DECISIONS AND CORRECTIVE ACTIONS ON

PROTESTS.—(1) In making a decision on protests filed under this section, the Board shall

accord due weight to the goals of economic

and efficient procurement, and shall take

due account of the rule of prejudicial error.

(2) If the Board determines that a decision

of a contracting officer violates a statute or

regulation, the Board may order the agency

(or its head) to take such corrective action

as the Board considers appropriate. Corrective action includes requiring that the Federal agency—

(A) refrain from exercising any of its options under the contract;

(B) recompete the contract immediately;

(C) issue a new solicitation;

(D) terminate the contract;

(E) award a contract consistent with the

requirements of such statute and regulation;

(F) implement any combination of requirements under subparagraphs (A), (B), (C), (D),

and (E); or

(G) implement such other actions as the

Board determines necessary.

(3) If the Board orders corrective action

after the contract award, the affected contract shall be presumed valid as to all goods

or services delivered and accepted under the

contract before the corrective action was ordered.

(4) Any agreement that provides for the

dismissal of a protest and involves a direct

or indirect expenditure of appropriated funds

shall be submitted to the Board and shall be

made a part of the public record (subject to

any protective order considered appropriate

by the Board) before dismissal of the protest.

(g) AUTHORITY TO DECLARE ENTITLEMENT

TO COSTS.—(1)(A) Whenever the Board determines that a decision of a contracting officer

violates a statute or regulation, it may, in

accordance with section 1304 of title 31,

United States Code, further declare an appropriate prevailing party to be entitled to

the costs of—

(i) filing and pursuing the protest, including reasonable attorneys’ fees and consultant and expert witness fees, and

(ii) bid and proposal preparation.

(B) No party (other than a small business

concern (within the meaning of section 3(a)

of the Small Business Act)) may be declared

entitled under this paragraph to costs for—

(i) consultants and expert witness fees that

exceed the highest rate of compensation for

expert witnesses paid by the Federal Government, or

(ii) attorneys’ fees that exceed $150 per

hour unless the Board, on a case by case

basis, determines that an increase in the

cost of living or a special factor, such as the

limited availability of qualified attorneys

for the proceedings involved, justifies a higher fee.

(2) Payment of amounts due from an agency under paragraph (1) or under the terms of

a settlement agreement under subsection

(e)(4) shall be made from the appropriation

made by section 1304 of title 31, United

States Code, for the payment of judgments.

The executive agency concerned shall reimburse that appropriation account out of

funds available for the procurement.

(h) APPEALS.—Except as provided in subsection (e)(3), a final decision of the Board

may be appealed as set forth in section

8(d)(1) of the Contract Disputes Act of 1978

by the head of the executive agency concerned and by any interested party, including interested parties who intervene in any

protest filed under this section.

(i) ADDITIONAL RELIEF.—Nothing contained

in this section shall affect the power of the

Board to order any additional relief which it

is authorized to provide under any statute or

regulation.

(j) NONEXCLUSIVITY OF REMEDIES.—Nothing

contained in this section shall affect the

right of any interested party to file a protest

with the contracting agency or to file an action in the United States Court of Federal

Claims or in a United States district court.

SEC. 865. APPLICABILITY TO CONTRACTS FOR

COMMERCIAL ITEMS.

Notwithstanding section 34 of the Office of

Federal Procurement Policy Act (41 U.S.C.

430), the authority conferred on the Board by

this subtitle is applicable to contracts for

the procurement of commercial items.
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PART IV—REPEAL OF OTHER STATUTES

AUTHORIZING ADMINISTRATIVE PROTESTS

SEC. 871. REPEALS.

(a) GSBCA PROVISIONS.—Subsection (f) of

the Brooks Automatic Data Processing Act

(section 111 of the Federal Property and Administrative Services Act of 1949; 40 U.S.C.

759) is repealed.

(b) GAO PROVISIONS.—Subchapter V of

chapter 35 of title 31, United States Code (31

U.S.C. 3551-3556) is repealed.

PART V—TRANSFERS AND TRANSITIONAL,

SAVINGS, AND CONFORMING PROVISIONS

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

(a) TRANSFER.—The personnel employed in

connection with, and the assets, liabilities,

contracts, property, records, and unexpended

balance of appropriations, authorizations, allocations, and other funds employed, held,

used, arising from, available to, or to be

made available in connection with the functions vested by law in the Comptroller General pursuant to subchapter V of chapter 35

of title 31, United States Code, and in the

boards of contract appeals established pursuant to section 8 of the Contract Disputes Act

of 1978 (41 U.S.C. 607) (as in effect on the day

before the effective date of this Act), shall be

transferred to the Board for appropriate allocation by the Chairman.

(b) EFFECT ON PERSONNEL.—Personnel

transferred pursuant to this subtitle shall

not be separated or reduced in compensation

for one year after such transfer, except for

cause.

(c) REGULATIONS.—(1) The Board shall prescribe regulations for the release of competing employees in a reduction in force that

gives due effect to—

(A) efficiency or performance ratings;

(B) military preference; and

(C) tenure of employment.

(2) In prescribing the regulations, the

Board shall provide for military preference

in the same manner as set forth in subchapter I of chapter 35 of title 5, United

States Code.

SEC. 882. TERMINATIONS AND SAVINGS PROVISIONS.

(a) TERMINATION OF BOARDS OF CONTRACT

APPEALS.—On the effective date of this subtitle, the boards of contract appeals established pursuant to section 8 of the Contract

Disputes Act of 1978 (41 U.S.C. 607) (as in effect on the day before the effective date of

this Act) shall terminate.

(b) SAVINGS PROVISION FOR CONTRACT DISPUTE MATTERS PENDING BEFORE BOARDS.—

The provisions of this subtitle shall not affect any proceedings (other than bid protests

pending before the board of contract appeals

of the General Services Administration)

pending on the effective date of this Act before any board of contract appeals described

in subsection (a). Such proceedings shall be

continued by the Board, and orders which

were issued in any such proceeding by any

board of contract appeals shall continue in

effect until modified, terminated, superseded, or revoked by the Board, by a court of

competent jurisdiction, or by operation of

law.

(c) BID PROTEST TRANSITION PROVISIONS.—

(1) No protest may be submitted to the

Comptroller General pursuant to section

3553(a) of title 31, United States Code, or to

the board of contract appeals for the General

Services Administration pursuant to the

Brooks Automatic Data Processing Act (40

U.S.C. 759) on or after the effective date of

this Act.

(2) The provisions repealed by section 871

shall continue to apply to proceedings pending on the effective date of this subtitle before the board of contract appeals of the

General Services Administration and the

Comptroller General pursuant to those provisions, until the board or the Comptroller

General determines such proceedings have

been completed.

SEC. 883. CONTRACT DISPUTE AUTHORITY OF

BOARD.

(a) Section 2 of the Contract Disputes Act

of 1978 (41 U.S.C. 601) is amended by striking

out paragraph (6) and inserting in lieu thereof the following:

‘‘(6) the term ‘Board’ means the United

States Board of Contract Appeals; and’’.

(b) Section 6(c) of the Contract Disputes

Act of 1978 (41 U.S.C. 605(c)) is amended—

(1) in paragraph (4)—

(A) by striking out ‘‘the agency board of

contract appeals’’ and inserting in lieu

thereof ‘‘the United States Board of Contract

Appeals’’; and

(B) by striking out ‘‘the board’’ and inserting in lieu thereof ‘‘the Board’’; and

(2) in paragraph (6)—

(A) by striking out ‘‘an agency board of

contract appeals’’ and inserting in lieu

thereof ‘‘the United States Board of Contract

Appeals’’; and

(B) by striking out ‘‘agency board’’ and inserting in lieu thereof ‘‘the Board’’.

(c) Section 7 of the Contract Disputes Act

of 1978 (41 U.S.C. 606) is amended by striking

out ‘‘an agency board of contract appeals’’

and inserting in lieu thereof ‘‘the United

States Board of Contract Appeals’’.

(d) Section 8 of the Contract Disputes Act

of 1978 (41 U.S.C. 607) is amended—

(1) by amending the heading to read as follows:

‘‘UNITED STATES BOARD OF CONTRACT

APPEALS’’;

(2) by striking out subsections (a), (b), and

(c);

(3) in subsection (d)—

(A) by striking out the first sentence and

inserting in lieu thereof the following:

‘‘The United States Board of Contract Appeals shall have jurisdiction to decide any

appeal from a decision of a contracting officer of any executive agency relative to a

contract made by that agency.’’; and

(B) in the second sentence, by striking out

‘‘the agency board’’ and inserting in lieu

thereof ‘‘the Board’’;

(4) in subsection (e), by striking out ‘‘An

agency board’’ and inserting in lieu thereof

‘‘The United States Board of Contract Appeals’’;

(5) in subsection (f), by striking out ‘‘each

agency board’’ and inserting in lieu thereof

‘‘the United States Board of Contract Appeals’’;

(6) in subsection (g)—

(A) in the first sentence of paragraph (1),

by striking out ‘‘an agency board of contract

appeals’’ and inserting in lieu thereof ‘‘the

United States Board of Contract Appeals’’;

(B) by striking out paragraph (2); and

(C) by redesignating paragraph (3) as paragraph (2);

(7) by striking out subsections (h) and (i);

and

(8) by redesignating subsections (d), (e), (f),

and (g) (as amended) as subsections (a), (b),

(c), and (d), respectively.

(e) Section 9 of the Contract Disputes Act

of 1978 (41 U.S.C. 608) is amended—

(1) in subsection (a), by striking out ‘‘each

agency board’’ and inserting in lieu thereof

‘‘the United States Board of Contract Appeals’’; and

(2) in subsection (b), by striking out ‘‘the

agency board’’ and inserting in lieu thereof

‘‘the Board’’.

(f) Section 10 of the Contract Disputes Act

of 1978 (41 U.S.C. 609) is amended—

(1) in subsection (a)—

(A) in the first sentence of paragraph (1)—

(i) by striking out ‘‘Except as provided in

paragraph (2), and in’’ and inserting in lieu

thereof ‘‘In’’; and

(ii) by striking out ‘‘an agency board’’ and

inserting in lieu thereof ‘‘the United States

Board of Contract Appeals’’;

(B) by striking out paragraph (2); and

(C) by redesignating paragraph (3) as paragraph (2), and in that paragraph, by striking

out ‘‘or (2)’’;

(2) in subsection (b), by striking out ‘‘any

agency board’’ and ‘‘the agency board’’ and

inserting in lieu of each ‘‘the Board’’;

(3) in subsection (c), by striking out ‘‘an

agency board’’ and ‘‘the agency board’’ and

inserting in lieu of each ‘‘the Board’’; and

(4) in subsection (d), by striking out ‘‘one

or more agency boards’’ and ‘‘or among the

agency boards involved’’ and inserting in

lieu of each ‘‘the Board’’.

(g) Section 11 of the Contract Disputes Act

of 1978 (41 U.S.C. 610) is amended—

(1) in the first sentence, by striking out

‘‘an agency board of contract appeals’’ and

inserting in lieu thereof ‘‘the United States

Board of Contract Appeals’’; and

(2) in the second sentence, by striking out

‘‘the agency board through the Attorney

General; or upon application by the board of

contract appeals of the Tennessee Valley Authority’’ and inserting in lieu thereof ‘‘the

Board’’.

(h) Section 13 of the Contract Disputes Act

of 1978 (41 U.S.C. 612) is amended—

(1) in subsection (b), by striking out ‘‘an

agency board of contract appeals’’ and inserting in lieu thereof ‘‘the United States

Board of Contract Appeals’’; and

(2) in subsection (d)(2), by striking out ‘‘by

the board of contract appeals for’’ and inserting in lieu thereof ‘‘by the Board from’’.

SEC. 884. REFERENCES TO AGENCY BOARDS OF

CONTRACT APPEALS.

Any reference to an agency board of contract appeals in any provision of law or in

any rule, regulation, or other paper of the

United States shall be treated as referring to

the United States Board of Contract Appeals.

SEC. 885. CONFORMING AMENDMENTS.

(a) TITLE 5.—Section 5372a of title 5, United

States Code, is amended—

(1) in subsection (a)(1), by striking out ‘‘an

agency board of contract appeals appointed

under section 8 of the Contract Disputes Act

of 1978’’ and inserting in lieu thereof ‘‘the

United States Board of Contract Appeals’’;

(2) in subsection (a)(2), by striking out ‘‘an

agency board of contract appeals established

pursuant to section 8 of the Contract Disputes Act of 1978’’ and inserting in lieu

thereof ‘‘the United States Board of Contract

Appeals’’; and

(3) in subsection (b), by striking out ‘‘an

appeals board’’ each place it appears and inserting in lieu thereof ‘‘the appeals board’’.

(b) TITLE 10.—(1) Section 2305(e) of title 10,

United States Code, is amended—

(A) in paragraph (1), by striking out ‘‘subchapter V of chapter 35 of title 31’’ and inserting in lieu thereof ‘‘title IV of the Federal Acquisition Reform Act of 1995’’; and

(B) by striking out paragraph (3).

(2) Section 2305(f) of such title is

amended—

(A) in paragraph (1), by striking out ‘‘in

subparagraphs (A) through (F) of subsection

(b)(1) of section 3554 of title 31’’ and inserting

in lieu thereof ‘‘section 424(f)(2) of the Federal Acquisition Reform Act of 1995’’; and

(B) in paragraph (2), by striking out ‘‘paragraph (1) of section 3554(c) of title 31’’ and inserting in lieu thereof ‘‘section 424(g)(1)(A) of

the Federal Acquisition Reform Act of 1995’’.

(c) FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949.—(1) Section

303B(h) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253b(h))

is amended—

(A) in paragraph (1), by striking out ‘‘subchapter V of chapter 35 of title 31’’ and inserting in lieu thereof ‘‘title IV of the Federal Acquisition Reform Act of 1995’’; and
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(B) by striking out paragraph (3).

(2) Section 303B(i) of such Act (41 U.S.C.

253b(i)) is amended—

(A) in paragraph (1), by striking out ‘‘in

subparagraphs (A) through (F) of subsection

(b)(1) of section 3554 of title 31’’ and inserting

in lieu thereof ‘‘section 424(f)(2) of the Federal Acquisition Reform Act of 1995’’; and

(B) in paragraph (2), by striking out ‘‘paragraph (1) of section 3554(c) of title 31’’ and inserting in lieu thereof ‘‘section 424(g)(1)(A) of

the Federal Acquisition Reform Act of 1995’’.

PART VI—EFFECTIVE DATE; INTERIM

APPOINTMENT AND RULES

SEC. 891. EFFECTIVE DATE.

This subtitle shall take effect on October 1,

1996.

SEC. 892. INTERIM APPOINTMENT.

The Board judge serving as chairman of

the board of contract appeals of the General

Services Administration on the date of the

enactment of this Act shall serve as Chairman during the two-year period beginning on

the effective date of this subtitle, unless

such individual resigns such position or the

position otherwise becomes vacant before

the expiration of such period. The authority

vested in the President by section 853 shall

take effect upon the expiration of such twoyear period or on the date such position is

vacated, whichever occurs earlier.

SEC. 893. INTERIM RULES.

(a) RULES OF PROCEDURE.—Until such date

as the Board promulgates rules of procedure,

the rules of procedure of the board of contract appeals of the General Services Administration, as in effect on the effective date of

this Act, shall be the rules of procedure of

the Board.

(b) RULES REGARDING BOARD JUDGES.—

Until such date as the Board promulgates

rules governing the establishment and maintenance of a register of eligible applicants

and the selection of Board judges, the rules

of the Armed Services Board of Contract Appeals governing the establishment and maintenance of a register of eligible applicants

and the selection of board members shall be

the rules of the Board governing the establishment and maintenance of a register of eligible applicants and the selection of Board

judges, except that any provisions of the

rules of the Armed Services Board of Contract Appeals that authorize any individual

other than the chairman of such board to select a Board judge shall have no effect.

Subtitle E—Effective Dates and

Implementation

SEC. 895. EFFECTIVE DATE AND APPLICABILITY.

(a) EFFECTIVE DATE.—Except as otherwise

provided in this title, this title and the

amendments made by this title shall take effect on the date of the enactment of this Act.

(b) APPLICABILITY OF AMENDMENTS.—(1) An

amendment made by this title shall apply, in

the manner prescribed in the final regulations promulgated pursuant to section 896 to

implement such amendment, with respect to

any solicitation that is issued, any unsolicited proposal that is received, and any contract entered into pursuant to such a solicitation or proposal, on or after the date described in paragraph (3).

(2) An amendment made by this title shall

also apply, to the extent and in the manner

prescribed in the final regulations promulgated pursuant to section 896 to implement

such amendment, with respect to any matter

related to—

(A) a contract that is in effect on the date

described in paragraph (3);

(B) an offer under consideration on the

date described in paragraph (3); or

(C) any other proceeding or action that is

ongoing on the date described in paragraph

(3).

(3) The date referred to in paragraphs (1)

and (2) is the date specified in such final regulations. The date so specified shall be October 1, 1996, or any earlier date that is not

within 30 days after the date on which such

final regulations are published.

SEC. 896. IMPLEMENTING REGULATIONS.

(a) PROPOSED REVISIONS.—Proposed revisions to the Federal Acquisition Regulation

and such other proposed regulations (or revisions to existing regulations) as may be necessary to implement this title shall be published in the Federal Register not later than

210 days after the date of the enactment of

this Act.

(b) PUBLIC COMMENT.—The proposed regulations described in subsection (a) shall be

made available for public comment for a period of not less than 60 days.

(c) FINAL REGULATIONS.—Final regulations

shall be published in the Federal Register

not later than 330 days after the date of enactment of this Act.

(d) MODIFICATIONS.—Final regulations promulgated pursuant to this section to implement an amendment made by this title may

provide for modification of an existing contract without consideration upon the request

of the contractor.

(e) SAVINGS PROVISIONS.—(1) Nothing in

this title shall be construed to affect the validity of any action taken or any contract

entered into before the date specified in the

regulations pursuant to section 895(b)(3) except to the extent and in the manner prescribed in such regulations.

(2) Except as specifically provided in this

title, nothing in this title shall be construed

to require the renegotiation or modification

of contracts in existence on the date of the

enactment of this Act.

(3) Except as otherwise provided in this

title, a law amended by this title shall continue to be applied according to the provisions thereof as such law was in effect on the

day before the date of the enactment of this

Act until—

(A) the date specified in final regulations

implementing the amendment of that law (as

promulgated pursuant to this section); or

(B) if no such date is specified in regulations, October 1, 1996.

TITLE IX—DEPARTMENT OF DEFENSE

ORGANIZATION AND MANAGEMENT

SEC. 901. REORGANIZATION OF OFFICE OF THE

SECRETARY OF DEFENSE.

(a) REORGANIZATION.—The Secretary of Defense shall carry out in accordance with this

section a reorganization of the Office of the

Secretary of Defense. The reorganization

shall include a substantial streamlining and

reduction in size of that office, as provided in

this section.

(b) PLAN FOR REORGANIZATION.—The Secretary shall submit to Congress a report setting forth a comprehensive plan by which

the Secretary will carry out the reorganization of the Office of the Department of Defense required by this section. The Secretary

shall include in the report identification of

all provisions of law (or other congressional

directives) that preclude or inhibit any proposed reorganization or streamlining of the

Office of the Secretary of Defense set forth

in the plan. The report shall be submitted

when the budget of the President for fiscal

year 1997 is submitted to Congress.

(c) CONTENT OF PLAN.—The plan required

by subsection (b) shall enable the Secretary

to accomplish the following:

(1) Reduce the number of military and civilian personnel assigned to, or employed in,

the Office of the Secretary of Defense by 25

percent over a period of four years, as required by subsection (e).

(2) Increase organizational efficiency and

civilian control.

(3) Eliminate (or substantially reduce) duplication of functions between the Office of

the Secretary of Defense and the military departments.

(4) Eliminate (or substantially reduce) duplication of functions between the Office of

the Secretary of Defense and the Joint

Chiefs of Staff.

(d) DEVELOPMENT OF PLAN.—In developing

the plan required by subsection (b), the Secretary shall—

(1) reassess the appropriate function and

mission of the Office of the Secretary of Defense;

(2) reassess whether the current organization of the Office of the Secretary of Defense

provides the most efficient and effective organization to support the Secretary in carrying out the Secretary’s responsibilities;

(3) examine alternative organizational

structures for that office and alternative allocations of functional responsibilities within that office, including—

(A) a reduction in the number of Under

Secretaries of Defense;

(B) a reduction in the number of Deputy

Assistant Secretaries of Defense and Deputy

Under Secretaries of Defense; and

(C) decentralizing functions of the Office of

the Secretary of Defense; and

(4) reassess the size, number, and functional allocation of the Defense Agencies and

other Department of Defense support organizations.

(e) PERSONNEL REDUCTION.—(1) The number

of military and civilian personnel of the Department of Defense who as of October 1,

1998, are assigned to, or employed in, functions in the Office of the Secretary of Defense (including Direct Support Activities of

that Office and the Washington Headquarters

Services of the Department of Defense) may

not exceed 75 percent of the number of such

personnel as of October 1, 1994.

(2) In carrying out reductions under paragraph (1), the Secretary may not reassign

functions solely in order to evade the requirement contained in that paragraph.

(f) REDUCTION IN NUMBER AND SPECIFICATION OF ASSISTANT SECRETARY OF DEFENSE

POSITIONS.—(1) Section 138 of title 10, United

States Code, is amended—

(A) in subsection (a), by striking out ‘‘eleven’’ and inserting in lieu thereof ‘‘nine’’; and

(B) by striking out subsection (b) and inserting in lieu thereof the following:

‘‘(b) The Assistant Secretaries shall perform such duties and exercise such powers as

the Secretary of Defense may prescribe.’’.

(2) Section 5315 of title 5, United States

Code, is amended by striking out ‘‘(11)’’ after

‘‘Assistant Secretaries of Defense’’ and inserting in lieu thereof ‘‘(9)’’.

(g) REPEAL OF STATUTORY ESTABLISHMENT

OF VARIOUS OSD POSITIONS.—(1)(A) The following sections of chapter 4 of title 10,

United States Code, are repealed: sections

133a, 134a, 137, 139, and 142.

(B) The table of sections at the beginning

of such chapter is amended by striking out

the items relating to the sections specified

in paragraph (1).

(2) Section 1056 is amended by striking out

subsection (d).

(h) SENIOR STAFF FLOOR FOR SPECIFIED ASSISTANT SECRETARY OF DEFENSE.—Section 355

of the National Defense Authorization Act

for Fiscal Year 1991 (Public Law 101–510; 104

Stat. 1540) is repealed.

(i) CONFORMING AMENDMENTS TO TITLE 10,

UNITED STATES CODE.—Title 10, United

States Code, is amended as follows:

(1) Section 131(b) is amended—

(A) by striking out paragraphs (6) and (8);

and

(B) by redesignating paragraphs (7), (9),

(10), and (11), as paragraphs (6), (7), (8), and

(9), respectively.

(2) Section 138(d) is amended by striking

out ‘‘the Under Secretaries of Defense, and

the Director of Defense Research and Engineering’’ and inserting in lieu thereof ‘‘and

the Under Secretaries of Defense’’.
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(3) Section 176(a)(3) is amended—

(A) by striking out ‘‘Assistant Secretary of

Defense for Health Affairs’’ and inserting in

lieu thereof ‘‘official in the Department of

Defense with principal responsibility for

health affairs’’; and

(B) by striking out ‘‘Chief Medical Director

of the Department of Veterans Affairs’’ and

inserting in lieu thereof ‘‘Under Secretary

for Health of the Department of Veterans Affairs’’.

(4) Section 1216(d) is amended by striking

out ‘‘Assistant Secretary of Defense for

Health Affairs’’ and inserting in lieu thereof

‘‘official in the Department of Defense with

principal responsibility for health affairs’’.

(5) Section 1587(d) is amended by striking

out ‘‘Assistant Secretary of Defense for Manpower and Logistics’’ and inserting in lieu

thereof ‘‘official in the Department of Defense with principal responsibility for personnel and readiness’’.

(6) The text of section 10201 is amended to

read as follows:

‘‘The official in the Department of Defense

with responsibility for overall supervision of

reserve component affairs of the Department

of Defense is the official designated by the

Secretary of Defense to have that responsibility.’’.

(j) CONFORMING AMENDMENTS RELATING TO

OPERATIONAL TEST AND EVALUATION AUTHORITY.—Section 2399 of such title is amended—

(1) in subsection (a)—

(A) in paragraph (2)—

(i) by inserting ‘‘a conventional weapons

system that’’ after ‘‘means’’ in the matter

preceding subparagraph (A); and

(ii) in subparagraph (A), by striking out ‘‘a

conventional weapons system that’’; and

(B) by adding at the end the following new

paragraph:

‘‘(3) The Secretary of Defense shall designate an official of the Department of Defense to perform the duties of the position

referred to in this section as the ‘designated

OT&E official’.’’;

(2) in subsection (b)—

(A) by striking out ‘‘Director of Operational Test and Evaluation of the Department of Defense’’ in paragraph (1) and inserting in lieu thereof ‘‘designated OT&E official’’; and

(B) by striking out ‘‘Director’’ each place

it appears in paragraphs (2) and (3) and inserting in lieu thereof ‘‘designated OT&E official’’;

(3) in subsection (c), by striking out ‘‘Director of Operational Test and Evaluation of

the Department of Defense’’ and inserting in

lieu thereof ‘‘designated OT&E official’’;

(4) in subsection (e), by striking out ‘‘Director’’ each place it appears and inserting

in lieu thereof ‘‘designated OT&E official’’;

(5) by striking out subsection (g); and

(6) by redesignating subsection (h) as subsection (g).

(k) OTHER CONFORMING AMENDMENT.—Section 1211(b)(2) of the National Defense Authorization Act for Fiscal Year 1988 and 1989

(P.L. 100–180; 101 Stat 1155; 10 U.S.C. 167 note)

is amended by striking out ‘‘the Assistant

Secretary of Defense for Special Operations

and Low Intensity Conflict’’ and inserting in

lieu thereof ‘‘the official designated by the

Secretary of Defense to have principal responsibility for matters relating to special

operations and low intensity conflict’’.

SEC. 902. RESTRUCTURING OF DEPARTMENT OF

DEFENSE ACQUISITION ORGANIZATION AND WORKFORCE.

(a) RESTRUCTURING REPORT.—Not later

than March 1, 1996, the Secretary of Defense

shall submit to Congress a report on the acquisition organization and workforce of the

Department of Defense. The report shall

include—

(1) the plan described in subsection (b); and

(2) the assessment of streamlining and restructuring options described in subsection

(c).

(b) PLAN FOR RESTRUCTURING.—(1) The Secretary shall include in the report under subsection (a) a plan on how to restructure the

current acquisition organization of the Department of Defense in a manner that would

enable the Secretary to accomplish the following:

(A) Reduce the number of military and civilian personnel assigned to, or employed in,

acquisition organizations of the Department

of Defense by 25 percent over a period of four

years, as required by subsection (d).

(B) Eliminate duplication of functions

among existing acquisition organizations of

the Department of Defense.

(C) Maximize opportunity for consolidation

among acquisition organizations of the Department of Defense to reduce management

overhead.

(2) In the report, the Secretary shall also

identify any statutory requirement or congressional directive that inhibits any proposed restructuring plan or reduction in the

size of the defense acquisition organization.

(3) In designing the plan under paragraph

(1), the Secretary shall give full consideration to the process efficiencies expected to

be achieved through the implementation of

the Federal Acquisition Streamlining Act of

1994 (Public Law 103–355) and other ongoing

initiatives to increase the use of commercial

practices and reduce contract overhead in

the defense procurement system.

(c) ASSESSMENT OF SPECIFIED RESTRUCTURING OPTIONS.—The Secretary shall include in the report under subsection (a) a detailed assessment of each of the following

options for streamlining and restructuring

the existing defense acquisition organization, together with a specific recommendation as to whether each such option should

be implemented:

(1) Consolidation of certain functions of

the Defense Contract Audit Agency and the

Defense Contract Management Command.

(2) Contracting for performance of a significant portion of the workload of the Defense Contract Audit Agency and other Defense Agencies that perform acquisition

functions.

(3) Consolidation or selected elimination of

Department of Defense acquisition organizations.

(4) Any other defense acquisition infrastructure streamlining or restructuring option the Secretary may determine.

(d) REDUCTION OF ACQUISITION WORKFORCE.—(1) Effective as of October 1, 1998, the

total number of defense acquisition personnel may not exceed 75 percent of the total

number of defense acquisition personnel as

of October 1, 1994.

(2) In carrying out paragraph (1), the Secretary of Defense shall exempt personnel

who possess technical competence in tradeskill maintenance and repair positions involved in performing depot maintenance

functions for the Department of Defense.

(3) In carrying out paragraph (1), the Secretary of Defense shall accomplish reductions in defense acquisition personnel positions during fiscal year 1996 so that the total

number of such personnel as of October 1,

1996, is less than the total number of such

personnel as of October 1, 1995, by at least

30,000.

(4) For purposes of this section, the term

‘‘defense acquisition personnel’’ means military and civilian personnel of the Department of Defense assigned to, or employed in,

acquisition organizations of the Department

of Defense.

(e) ACQUISITION ORGANIZATION DEFINED.—

For purposes of this section, acquisition organizations of the Department of Defense are

those organizations specified in Department

of Defense Instruction Numbered 5000.58,

dated January 14, 1992.

SEC. 903. PLAN FOR INCORPORATION OF DEPARTMENT OF ENERGY NATIONAL

SECURITY FUNCTIONS IN DEPARTMENT OF DEFENSE.

(a) REPORT REQUIRED.—The Secretary of

Defense shall submit to Congress a report

setting forth the Secretary’s plan for the incorporation into the Department of Defense

of the national security programs of the Department of Energy. The plan submitted

shall be one which could be implemented if

the Department of Energy is abolished and

the national security programs of that department are transferred to the Department

of Defense and consolidated with programs of

the Department of Defense.

(b) MATTERS TO BE INCLUDED.—The plan

submitted in the report under subsection (a)

shall include the following:

(1) A detailed plan for the integration into

the Department of Defense of the offices and

laboratories of the Department of Energy

which could be anticipated to be transferred

to the Department of Defense as part of such

a transfer of functions.

(2) An assessment of the personnel endstrength reductions estimated to be achieved

as a result of such a transfer of functions.

(3) An assessment of costs, or savings, associated with the various transfer of function options.

(4) An identification of all applicable provisions of law that may inhibit or preclude

such a transfer of functions.

(c) PRESERVATION OF INTEGRITY OF DOE

NATIONAL SECURITY PROGRAMS.—In developing the plan under subsection (a), the Secretary shall make every effort to ensure that

the mission and functioning of the national

security programs of the Department of Energy are not unduly affected adversely during the transfer of those functions to the Department of Defense and the consolidation of

those functions into activities of the Department.

(d) SUBMISSION OF REPORT.—The report required under subsection (a) shall be submitted not later than February 1, 1996.

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

MARINE CORPS.

(a) HEADQUARTERS, MARINE CORPS, FUNCTION; COMPOSITION.—Subsection (b) of section

5041 of title 10, United States Code, is amended by striking out paragraphs (2) through (5)

and inserting in lieu thereof the following:

‘‘(2) The Vice Commandant of the Marine

Corps.

‘‘(3) The Director of the Marine Corps

Staff.

‘‘(4) The Deputy Commandants of the Marine Corps.

‘‘(5) The Assistant Commandants of the

Marine Corps.’’.

(b) VICE COMMANDANT.—(1) Section 5044 of

such title is amended by striking out ‘‘Assistant Commandant’’ each place it appears

and inserting in lieu thereof ‘‘Vice Commandant’’.

(2) The heading of such section is amended

to read as follows:

‘‘§ 5044. Vice Commandant of the Marine

Corps’’.

(c) DIRECTOR OF THE MARINE CORPS STAFF;

DEPUTY AND ASSISTANT COMMANDANTS.—Section 5045 of such title is amended to read as

follows:

‘‘§ 5045. Director of the Marine Corps Staff;

Deputy and Assistant Commandants

‘‘(a) There are in the Headquarters, Marine

Corps, the following:

‘‘(1) A Director of the Marine Corps Staff.

‘‘(2) Not more than five Deputy Commandants of the Marine Corps.
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1995 T80.11

‘‘(3) Not more than three Assistant Commandants of the Marine Corps.

‘‘(b) The officers specified in subsection (a)

shall be detailed by the Secretary of the

Navy from officers on the active-duty list of

the Marine Corps.’’.

(d) CLERICAL AMENDMENT.—The items relating to sections 5044 and 5045 in the table of

sections at the beginning of chapter 506 of

such title are amended to read as follows:

‘‘5044. Vice Commandant of the Marine

Corps.

‘‘5045. Director of the Marine Corps Staff;

Deputy and Assistant Commandants.’’.

SEC. 905. INCLUSION OF INFORMATION RESOURCES MANAGEMENT COLLEGE

IN THE NATIONAL DEFENSE UNIVERSITY.

(a) TECHNICAL AMENDMENT AND ADDITION OF

INFORMATION RESOURCES MANAGEMENT COLLEGE TO THE DEFINITION OF THE NATIONAL DEFENSE UNIVERSITY.—Section 1595(d)(2) of title

10, United States Code, is amended by striking out ‘‘the Institute for National Strategic

Study,’’ and inserting in lieu thereof ‘‘the Institute for National Strategic Studies, the

Information Resources Management College,’’.

(b) CONFORMING AMENDMENT.—Section

2162(d)(2) of such title is amended by inserting ‘‘the Institute for National Strategic

Studies, the Information Resources Management College,’’ after ‘‘the Armed Forces

Staff College,’’.

SEC. 906. EMPLOYMENT OF CIVILIANS AT THE

ASIA-PACIFIC CENTER FOR SECURITY STUDIES.

Section 1595 of title 10, United States Code,

is amended—

(1) in subsection (c), by adding at the end

the following new paragraph:

‘‘(4) The Asia-Pacific Center for Security

Studies.’’; and

(2) by adding at the end the following new

subsection:

‘‘(f) APPLICATION TO DIRECTOR AND DEPUTY

DIRECTOR AT ASIA-PACIFIC CENTER FOR SECURITY STUDIES.—In the case of the Asia-Pacific Center for Security Studies, this section also applies with respect to the Director

and the Deputy Director.’’.

SEC. 907. CONTINUED OPERATION OF UNIFORMED SERVICES UNIVERSITY OF

THE HEALTH SCIENCES.

(a) CLOSURE PROHIBITED.—In light of the

important role of the Uniformed Services

University of the Health Sciences in providing trained health care providers for the

uniformed services, Congress reaffirms the

requirement contained in section 922 of the

National Defense Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat

2829) that the Uniformed Services University

of the Health Sciences may not be closed.

(b) BUDGETARY COMMITMENT TO CONTINUATION.—It is the sense of Congress that the

Secretary of Defense should budget for the

operation of the Uniformed Services University of the Health Sciences during fiscal year

1997 at a level at least equal to the level of

operations conducted at the University during fiscal year 1995.

SEC. 908. REDESIGNATION OF ADVANCED RESEARCH PROJECTS AGENCY.

(a) REDESIGNATION.—The agency in the Department of Defense known as the Advanced

Research Projects Agency shall after the

date of the enactment of this Act be designated as the Defense Advanced Research

Projects Agency.

(b) REFERENCES.—Any reference in any

law, regulation, document, record, or other

paper of the United States to the Advanced

Research Projects Agency shall be considered to be a reference to the Defense Advanced Research Projects Agency.

SEC. 909. NAVAL NUCLEAR PROPULSION PROGRAM.

No department or agency may regulate or

direct any change in function for facilities

under the Naval Nuclear Propulsion Program

unless otherwise permitted or specified by

law.

SEC. 910. AVIATION TESTING CONSOLIDATION.

(a) LIMITATION.—The Secretary of the

Army may not consolidate the Aviation

Technical Test Center, Fort Rucker, Alabama, with any other aviation testing facility until 60 days after the date on which a report containing the results of the evaluation

of such consolidation described in subsection

(b) is received by the congressional defense

committees.

(b) INDEPENDENT EVALUATION.—The Secretary of the Army shall provide for an evaluation by the Institute for Defense Analyses

(a Federal contract research center) of the

proposal of the Test and Evaluation Command of the Army to relocate the Aviation

Technical Test Center to Yuma Proving

Ground, Arizona. The evaluation of such proposal shall include consideration of the following:

(1) A review and validation of studies conducted by the Army Materiel Command and

the Army Test and Evaluation Command of

the proposed relocation.

(2) The effect on, and cost of, maintenance

and logistics capability (including maintenance of a parts inventory) to support the

test evaluation fleet.

(3) The availability of facilities and infrastructure necessary to conduct the aviation

testing mission at Yuma Proving Ground.

(4) The availability of engineers and maintenance technicians to support the aviation

testing mission at Yuma Proving Ground.

(5) The effect on current and planned aircraft programs.

(6) Consistency with the efforts of the

Army to become the Department of Defense

leader for rotary-wing aircraft.

(7) Potential savings, including the time

period over which such savings could be realized.

(8) Comparison of live-fire testing with

computer-simulated testing.

(c) TIME REQUIREMENT FOR COMPLETION OF

EVALUATION.—The evaluation under subsection (b) shall be completed not later than

120 days after the date of the enactment of

this Act.

TITLE X—GENERAL PROVISIONS

Subtitle A—Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—(1) Upon determination by the Secretary of Defense that such action is necessary in the national interest, the Secretary may transfer amounts of authorizations made available to the Department of

Defense in this division for fiscal year 1996

between any such authorizations for that fiscal year (or any subdivisions thereof).

Amounts of authorizations so transferred

shall be merged with and be available for the

same purposes as the authorization to which

transferred.

(2) The total amount of authorizations

that the Secretary of Defense may transfer

under the authority of this section may not

exceed $2,000,000,000.

(b) LIMITATIONS.—The authority provided

by this section to transfer authorizations—

(1) may only be used to provide authority

for items that have a higher priority than

the items from which authority is transferred; and

(2) may not be used to provide authority

for an item that has been denied authorization by Congress.

(c) EFFECT ON AUTHORIZATION AMOUNTS.—A

transfer made from one account to another

under the authority of this section shall be

deemed to increase the amount authorized

for the account to which the amount is

transferred by an amount equal to the

amount transferred.

SEC. 1002. INCORPORATION OF CLASSIFIED

ANNEX.

(a) STATUS OF CLASSIFIED ANNEX.—The

Classified Annex prepared by the Committee

on National Security of the House of Representatives to accompany the bill H.R. 1530

of the One Hundred Fourth Congress and

transmitted to the President is hereby incorporated into this Act.

(b) CONSTRUCTION WITH OTHER PROVISIONS

OF ACT.—The amounts specified in the Classified Annex are not in addition to amounts

authorized to be appropriated by other provisions of this Act.

(c) LIMITATION ON USE OF FUNDS.—Funds

appropriated pursuant to an authorization

contained in this Act that are made available for a program, project, or activity referred to in the Classified Annex may only be

expended for such program, project, or activity in accordance with such terms, conditions, limitations, restrictions, and requirements as are set out for that program,

project, or activity in the Classified Annex.

(d) DISTRIBUTION OF CLASSIFIED ANNEX.—

The President shall provide for appropriate

distribution of the Classified Annex, or of appropriate portions of the annex, within the

executive branch of the Government.

SEC. 1003. IMPROVED FUNDING MECHANISMS

FOR UNBUDGETED OPERATIONS.

(a) REVISION OF FUNDING MECHANISM.—(1)

Chapter 3 of title 10, United States Code, is

amended by striking out section 127a and inserting in lieu thereof the following:

‘‘§ 127a. Operations for which funds are not

provided in advance: funding mechanisms

‘‘(a) IN GENERAL.—(1) The Secretary of Defense shall use the procedures prescribed by

this section with respect to any operation of

the Department of Defense—

‘‘(A) that involves the deployment (other

than for a training exercise) of elements of

the armed forces for a purpose other than a

purpose for which funds have been specifically provided in advance; or

‘‘(B) that involves humanitarian assistance, disaster relief, or support for law enforcement (including immigration control)

for which funds have not been specifically

provided in advance.

‘‘(2) Whenever any operation described in

paragraph (1) is commenced, the Secretary of

Defense shall designate and identify that operation for the purposes of this section and

shall promptly notify Congress of that designation (and of the identification of the operation).

‘‘(3) This section does not provide authority for the President or the Secretary of Defense to carry out any operation, but establishes mechanisms for the Department of Defense by which funds are provided for operations that the armed forces are required to

carry out under some other authority.

‘‘(b) WAIVER OF REQUIREMENT TO REIMBURSE SUPPORT UNITS.—(1) The Secretary of

Defense shall direct that, when a unit of the

armed forces participating in an operation

described in subsection (a) receives services

from an element of the Department of Defense that operates through the Defense

Business Operations Fund (or a successor

fund), such unit of the armed forces may not

be required to reimburse that element for

the incremental costs incurred by that element in providing such services, notwithstanding any other provision of law or any

Government accounting practice.

‘‘(2) The amounts which but for paragraph

(1) would be required to be reimbursed to an

element of the Department of Defense (or a

fund) shall be recorded as an expense attributable to the operation and shall be accounted for separately.
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‘‘(c) TRANSFER AUTHORITY.—(1) Whenever

there is an operation of the Department of

Defense described in subsection (a), the Secretary of Defense may, subject to the provisions of appropriations Acts, transfer

amounts described in paragraph (3) to accounts from which incremental expenses for

that operation were incurred in order to reimburse those accounts for those incremental expenses. Amounts so transferred

shall be merged with and be available for the

same purposes as the accounts to which

transferred.

‘‘(2) The total amount that the Secretary

of Defense may transfer under the authority

of this section in any fiscal year is

$200,000,000.

‘‘(3) Transfers under this subsection may

only be made from amounts appropriated to

the Department of Defense for any fiscal

year that remain available for obligation

from any of the following accounts:

‘‘(A) Environmental Restoration, Defense.

‘‘(B) Cooperative Threat Reduction programs.

‘‘(C) Overseas Humanitarian, Disaster, and

Civic Aid (OHDACA) programs.

‘‘(D) Operations and Maintenance, DefenseWide (but only from funds available for administration and service-wide activities).

‘‘(4) The authority provided by this subsection is in addition to any other authority

provided by law authorizing the transfer of

amounts available to the Department of Defense. However, the Secretary may not use

any such authority under another provision

of law for a purpose described in paragraph

(1) if there is authority available under this

subsection for that purpose.

‘‘(5) The authority provided by this subsection to transfer amounts may not be used

to provide authority for an activity that has

been denied authorization by Congress.

‘‘(6) A transfer made from one account to

another under the authority of this subsection shall be deemed to increase the

amount authorized for the account to which

the amount is transferred by an amount

equal to the amount transferred.

‘‘(d) FINANCIAL PLAN.—(1) Within 30 days

after the beginning of an operation described

in subsection (a), the Secretary of Defense

shall submit to Congress a financial plan for

the operation that sets forth the manner by

which the Secretary proposes to obtain funds

for the cost to the United States of the operation. The plan shall specify in detail how

the Secretary proposes to restore balances in

the Defense Business Operations Fund (or a

successor fund) to the levels that would have

been anticipated but for the provisions of

subsection (b). The Secretary may not include in such a plan a means to restore such

balances that is prohibited by paragraph (2)

or (4).

‘‘(2) The Secretary may not restore (or propose in a plan under paragraph (1) to restore)

balances in the Defense Business Operations

Fund through increases in rates charged by

that fund in order to compensate for costs

incurred and not reimbursed due to subsection (b).

‘‘(3) If the Secretary of Defense transfers

funds under subsection (c), the Secretary

shall submit to Congress, within 30 days of

such transfer, a plan for the restoration of

the balance in the each account from which

the transfer was made to the level that

would have been the case but for the transfer.

‘‘(4) The Secretary may not restore (or propose in a plan under paragraph (1) or (3) to

restore) balances in any the Defense Business Operations Fund or any other fund or

account through the use of unobligated

amounts in an appropriation made for operation and maintenance that are available

within that appropriation for an account

(known as a budget activity 1 account) that

is specified as being for operating forces.

‘‘(e) SUBMISSION OF REQUESTS FOR SUPPLEMENTAL APPROPRIATIONS.—(1) Whenever

there is an operation described in subsection

(a), the President shall submit to Congress a

request for the enactment of supplemental

appropriations for the then-current fiscal

year, to be designated as an emergency supplemental appropriations, in order to provide

funds to replenish the Defense Business Operations Fund or any other fund or account

of the Department of Defense from which

funds for the incremental expenses of that

operation were derived under this section.

‘‘(2) A request under paragraph (1) shall be

submitted not later than the earlier of (A)

the time at which incremental expenses for

the operation exceed $10,000,000, or (B) 90

days after the date on which the operation

begins. The request shall be submitted as a

separate request from any other legislative

proposal.

‘‘(f) INCREMENTAL COSTS.—For purposes of

this section, incremental costs of the Department of Defense with respect to an operation are the costs of the Department that

are directly attributable to the operation

(and would not have been incurred but for

the operation).

‘‘(g) RELATIONSHIP TO WAR POWERS RESOLUTION.—This section may not be construed as

altering or superseding the War Powers Resolution. This section does not provide authority to conduct any military operation.

‘‘(h) GAO COMPLIANCE REVIEWS.—The

Comptroller General of the United States

shall from time to time, and when requested

by a committee of Congress, conduct a review of the defense funding structure under

this section to determine whether the Department of Defense is complying with the

requirements and limitations of this section.

‘‘§ 127b. Budgeting for ongoing operations

‘‘(a) REQUIREMENT FOR INCLUSION IN BUDGET.—In the case of an operation of the Department of Defense described in subsection

(c), the President shall include with the

budget submitted to Congress pursuant to

section 1105 of title 31 for the next fiscal year

a specific request for enactment of legislation to provide for the provision of funds for

such operation for that fiscal year in a manner that will result in there not being a

lower amount of funds available to the Department of Defense for that fiscal year than

would be the case if that operation were not

carried out during that year. Such a request

shall include one or more of the following:

‘‘(1) A request for enactment of appropriation of funds for the incremental costs for

that operation that are expected to be incurred by the Department of Defense during

the fiscal year for which the budget is submitted, with such funds to be provided in,

and charged to, a budget function other than

the national defense budget function (function 050).

‘‘(2) A request for enactment of appropriation of funds for the incremental costs for

that operation that are expected to be incurred by the Department of Defense during

the fiscal year for which the budget is submitted, with such designations or waivers as

may be necessary to ensure that (if enacted)

such appropriations are not counted against

the total amount of funds for the Department of Defense, or for the national defense

budget function, for purpose of any statutory

limitation or restriction.

‘‘(3) A request for enactment of rescissions.

‘‘(b) LIMITATION.—In the case of any operation to which the requirement of subsection

(a) applies, no funds may be obligated or expended for that operation after the beginning

of the fiscal year for which the budget is submitted if the requirement in subsection (a) is

not complied with.

‘‘(c) COVERED OPERATIONS.—This section

applies with respect to any operation of the

Department of Defense involving the use of

the Armed Forces that—

‘‘(1) is ongoing in the first quarter of a fiscal year;

‘‘(2) is not expected to end during the current fiscal year;

‘‘(3) for which appropriations were not specifically provided in advance for the current

fiscal year.

‘‘(d) WAIVER AUTHORITY.—The President

may waive the provisions of this section for

any fiscal year—

‘‘(1) during which there is in effect a declaration of war; or

‘‘(2) during which authority is in effect

pursuant to section 12302 of this title to

order units and members of the Ready Reserve to active duty without the consent of

the persons concerned.’’.

(2) The table of sections at the beginning of

such chapter is amended by striking out the

item relating to section 127a and inserting in

lieu thereof the following:

‘‘127a. Operations for which funds are not

provided in advance: funding

mechanisms.

‘‘127b. Budgeting for ongoing operations.’’.

(b) EFFECTIVE DATE.—The amendment to

section 127a of title 10, United States Code,

made by subsection (a) shall take effect on

October 1, 1995, and shall apply to any operation of the Department of Defense, whether

begun before, on, or after such date. In the

case of any operation begun before such date,

any reference in such section to the date of

the beginning of such operation shall be

treated as referring to the effective date

under the preceding sentence.

SEC. 1004. DESIGNATION AND LIABILITY OF DISBURSING AND CERTIFYING OFFICIALS.

(a) DISBURSING OFFICIALS.—(1) Section

3321(c) of title 31, United States Code, is

amended by striking out paragraph (2) and

inserting in lieu thereof the following:

‘‘(2) The Department of Defense.

‘‘(3) The Coast Guard (when not operating

as a service in the Navy).’’.

(2) Section 2773 of title 10, United States

Code, is amended—

(A) in subsection (a)—

(i) by striking out ‘‘With the approval of

the Secretary of a military department when

the Secretary considers it necessary, a disbursing official of the military department’’

and inserting in lieu thereof ‘‘Subject to

paragraph (3), a disbursing official of the Department of Defense’’; and

(ii) by adding at the end the following new

paragraph:

‘‘(3) A disbursing official may make a designation under paragraph (1) only with the

approval of the Secretary of Defense or, in

the case of a disbursing official of a military

department, the Secretary of that military

department.’’; and

(B) in subsection (b)(1)—

(i) by striking out ‘‘any military department’’ and inserting in lieu thereof ‘‘the Department of Defense’’; and

(ii) by striking out ‘‘2d month’’ and inserting in lieu thereof ‘‘second month’’.

(b) DESIGNATION OF MEMBERS OF THE ARMED

FORCES TO HAVE AUTHORITY TO CERTIFY

VOUCHERS.—(1) Section 3325(b) of title 31,

United States Code, is amended to read as

follows:

‘‘(b) In addition to officers and employees

referred to in subsection (a)(1)(B) of this section as having authorization to certify

vouchers, the Secretary of Defense and the

Secretary of Transportation (with respect to

the Coast Guard when it is not operating as

a service in the Navy) may authorize, in

writing, members of the armed forces under

their jurisdiction to certify vouchers.’’.

(2) Section 3528(d) of title 31, United States

Code, is repealed.
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(c) RELIEF OF ACCOUNTABLE OFFICIALS AND

AGENTS FROM LIABILITY.—Section 3527(b)(1)

of title 31, United States Code, is amended—

(1) by striking out ‘‘armed forces’’ in the

matter preceding subparagraph (A) and inserting in lieu thereof ‘‘Department of Defense or the Coast Guard’’; and

(2) in subparagraph (A), by striking out

‘‘appropriate Secretary of the military department of the Department of Defense’’ and

inserting in lieu thereof ‘‘Secretary of Transportation (with respect to the Coast Guard

when it is not operating as a service in the

Navy)’’.

(d) CONFORMING AMENDMENTS.—(1) Section

1012 of title 37, United States Code, is amended by striking out ‘‘Secretary concerned’’

both places it appears and inserting in lieu

thereof ‘‘Secretary of Defense’’.

(2)(A) Section 7863 of title 10, United States

Code, is amended—

(i) in the first sentence, by striking out

‘‘disbursements of public moneys or’’ and

‘‘the money was paid or’’; and

(ii) in the second sentence, by striking out

‘‘disbursement or’’.

(B)(i) The heading of such section is

amended to read as follows:

‘‘§ 7863. Disposal of public stores by order of

commanding officer’’.

(ii) The item relating to such section in

the table of sections at the beginning of

chapter 661 of such title is amended to read

as follows:

‘‘7863. Disposal of public stores by order of

commanding officer.’’.

SEC. 1005. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED FISCAL YEAR

1995 DEFENSE APPROPRIATIONS.

(a) AUTHORITY.—The amounts described in

subsection (b) may be obligated and expended for programs, projects, and activities

of the Department of Defense in accordance

with fiscal year 1995 defense appropriations.

(b) COVERED AMOUNTS.—The amounts referred to in subsection (a) are the amounts

provided for programs, projects, and activities of the Department of Defense in fiscal

year 1995 defense appropriations that are in

excess of the amounts provided for such programs, projects, and activities in fiscal year

1995 defense authorizations.

(c) DEFINITIONS.—For the purposes of this

section:

(1) FISCAL YEAR 1995 DEFENSE APPROPRIATIONS.—The term ‘‘fiscal year 1995 defense

appropriations’’ means amounts appropriated or otherwise made available to the

Department of Defense for fiscal year 1995 in

the Department of Defense Appropriations

Act, 1995 (Public Law 103–335).

(2) FISCAL YEAR 1995 DEFENSE AUTHORIZATIONS.—The term ‘‘fiscal year 1995 defense

authorizations’’ means amounts authorized

to be appropriated for the Department of Defense for fiscal year 1995 in the National Defense Authorization Act for Fiscal Year 1995

(Public Law 103–337).

SEC. 1006. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 1995.

(a) ADJUSTMENT TO PREVIOUS AUTHORIZATIONS.—Amounts authorized to be appropriated to the Department of Defense for fiscal year 1995 in the National Defense Authorization Act for Fiscal Year 1995 (Public Law

103–337) are hereby adjusted, with respect to

any such authorized amount, by the amount

by which appropriations pursuant to such

authorization were increased (by a supplemental appropriation) or decreased (by a rescission), or both, in title I of the Emergency

Supplemental Appropriations and Rescissions for the Department of Defense to Preserve and Enhance Military Readiness Act of

1995 (Public Law 104–6).

(b) NEW AUTHORIZATION.—The appropriation provided in section 104 of such Act is

hereby authorized.

SEC. 1007. PROHIBITION OF INCREMENTAL FUNDING OF PROCUREMENT ITEMS.

Section 114 of title 10, United States Code,

is amended by adding at the end the following new subsection:

‘‘(f)(1) No funds may be appropriated, or

authorized to be appropriated, for any fiscal

year for a purpose named in paragraph (1),

(3), (4), or (5) of subsection (a) using incremental funding.

‘‘(2) In the budget submitted by the President for any fiscal year, the President may

not request appropriations, or authorization

of appropriations, on the basis of incremental funding for a purpose specified in

paragraph (1).

‘‘(3) In this subsection, the term ‘incremental funding’ means the provision of funds

for a fiscal year for a procurement in less

than the full amount required for procurement of a complete and usable product, with

the expectation (or plan) for additional funding to be made for subsequent fiscal years to

complete the procurement of a complete and

usable product.

‘‘(4) This subsection does not apply with

respect to funding classified as advance procurement funding.’’.

Subtitle B—Naval Vessels and Shipyards

SEC. 1021. CONTRACT OPTIONS FOR LMSR VESSELS.

(a) FINDINGS.—Congress makes the following findings:

(1) A requirement for the Department of

the Navy to acquire 19 large, medium-speed,

roll-on/roll-off (LMSR) vessels was established by the Secretary of Defense in the Mobility Requirements Study conducted after

the Persian Gulf War pursuant to section 909

of the National Defense Authorization Act

for Fiscal Year 1991 (Public law 101–510; 104

Stat. 1623) and was revalidated by the Secretary of Defense in the report entitled ‘‘Mobility Requirements Study Bottom-Up Review Update’’, submitted to Congress in

April 1995.

(2) The Strategic Sealift Program is a vital

element of the national military strategy

calling for the Nation to be able to fight and

win two nearly simultaneous major regional

contingencies.

(3) The Secretary of the Navy has entered

into contracts with shipyards covering acquisition of a total of 17 such LMSR vessels,

of which five are vessel conversions and 12

are new construction vessels. Under those

contracts, the Secretary has placed orders

for the acquisition of 11 vessels and has options for the acquisition of six more, all of

which would be new construction vessels.

The options allow the Secretary to place orders for one vessel to be constructed at each

of two shipyards for award before December

31, 1995, December 31, 1996, and December 31,

1997, respectively.

(4) Acquisition of an additional two such

LMSR vessels, for a total of 19 vessels (the

requirement described in paragraph (1))

would contribute to preservation of the industrial base of United States shipyards capable of building auxiliary and sealift vessels.

(b) SENSE OF CONGRESS.—It is the sense of

Congress that the Secretary of the Navy

should plan for, and budget to provide for,

the acquisition as soon as possible of a total

of 19 large, medium-speed, roll-on/roll-off

(LMSR) vessels (the number determined to

be required in the Mobility Requirements

Study referred to in subsection (a)(1)), rather

than only 17 such vessels (the number of vessels under contract as of May 1995).

(c) ADDITIONAL NEW CONSTRUCTION CONTRACT OPTION.—The Secretary of the Navy

should negotiate with each of the two shipyards holding new construction contracts referred to in subsection (a)(3) (Department of

the Navy contracts numbered N00024–93–C–

2203 and N00024–93–C–2205) for an option

under each such contract for construction of

one additional such LMSR vessel, with such

option to be available to the Secretary for

exercise during 1995, 1996, or 1997.

(d) REPORT.—The Secretary of the Navy

shall submit to the congressional defense

committees, by March 31, 1996, a report stating the intentions of the Secretary regarding

the acquisition of options for the construction of two additional LMSR vessels as described in subsection (c).

SEC. 1022. VESSELS SUBJECT TO REPAIR UNDER

PHASED MAINTENANCE CONTRACTS.

(a) IN GENERAL.—(1) Chapter 633 of title 10,

United States Code, is amended by adding at

the end the following new section:

‘‘§ 7315. Phased maintenance contracts: vessels covered

‘‘In any case in which the Secretary of the

Navy enters into a contract for the phased

maintenance of a class of vessels or vessels

of an identified type, the Secretary shall ensure that—

‘‘(1) any vessel that is covered by the contract when it is entered into remains covered

by the contract, regardless of operating command to which the vessel is subsequently assigned, unless the vessel is taken out of service for the Department of the Navy; and

‘‘(2) any vessel of a class or type covered by

the contract that is delivered to the Navy

while the contract is in effect is covered by

the contract.’’.

(2) The table of sections at the beginning of

such chapter is amended by adding at the

end the following new item:

‘‘7315. Phased maintenance contracts: vessels

covered.’’.

(b) EFFECTIVE DATE.—Section 7315 of title

10, United States Code, as added by subsection (a), shall apply with respect to contracts entered into after the date of the enactment of this Act.

SEC. 1023. CLARIFICATION OF REQUIREMENTS

RELATING TO REPAIRS OF VESSELS.

Section 7310(a) of title 10, United States

Code, is amended by inserting ‘‘or Guam’’

after ‘‘the United States’’ the second place it

appears.

SEC. 1024. NAMING OF NAVAL VESSEL.

It is the sense of Congress that the Secretary of the Navy should name an appropriate ship of the United States Navy the

U.S.S. Joseph Vittori, in honor of Marine

Corporal Joseph Vittori (1929–1951) of Beverly, Massachusetts, who was posthumously

awarded the Medal of Honor for actions

against the enemy in Korea on September

15–16, 1951.

SEC. 1025. TRANSFER OF RIVERINE PATROL

CRAFT.

(a) AUTHORITY TO TRANSFER VESSEL.—Notwithstanding subsections (a) and (d) of section 7306 of title 10, United States Code, but

subject to subsections (b) and (c) of that section, the Secretary of the Navy may transfer

a vessel described in subsection (b) to Tidewater Community College, Portsmouth, Virginia, for scientific and educational purposes.

(b) VESSEL.—The authority under subsection (a) applies in the case of a riverine

patrol craft of the U.S.S. Swift class.

(c) LIMITATION.—The transfer authorized

by subsection (a) may be made only if the

Secretary determines that the vessel to be

transferred is of no further use to the United

States for national security purposes.

(d) TERMS AND CONDITIONS.—The Secretary

may require such terms and conditions in

connection with the transfer authorized by

this section as the Secretary considers appropriate.
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Subtitle C—Other Matters

SEC. 1031. TERMINATION AND MODIFICATION OF

AUTHORITIES REGARDING NATIONAL DEFENSE TECHNOLOGY AND

INDUSTRIAL BASE, DEFENSE REINVESTMENT, AND DEFENSE CONVERSION PROGRAMS.

(a) CONGRESSIONAL DEFENSE POLICY.—Section 2501 of title 10, United States Code, is

amended—

(1) in subsection (a), by striking out paragraph (5); and

(2) in subsection (b)—

(A) by striking out ‘‘DEFENSE REINVESTMENT, DIVERSIFICATION, AND CONVERSION’’ in

the subsection heading and inserting in lieu

thereof ‘‘TECHNOLOGY DEVELOPMENT FOR NATIONAL SECURITY’’;

(B) by striking out ‘‘, during a period of reduction in defense expenditures,’’ in the matter preceding paragraph (1);

(C) by striking out ‘‘of reinvestment, diversification, and conversion of defense resources’’ in the matter preceding paragraph

(1); and

(D) in paragraph (5), by striking out ‘‘defense economic reinvestment’’ and inserting

in lieu thereof ‘‘economic investment’’.

(b) NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE COUNCIL.—Section 2502(c) of

such title is amended—

(1) in paragraph (1)(B), by striking out ‘‘,

during a period of reduction in defense expenditures, the defense reinvestment, diversification, and conversion objectives’’ and inserting in lieu thereof ‘‘the objectives’’;

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

(3) by redesignating paragraph (3) as paragraph (2).

(c) MODIFICATION OF DEFENSE DUAL-USE

CRITICAL TECHNOLOGY PARTNERSHIPS PROGRAM.—(1) Subsection (a) of section 2511 of

such title is amended—

(A) by striking out ‘‘PARTNERSHIPS’’ in the

subsection heading and inserting in lieu

thereof ‘‘PROGRAM’’;

(B) in the first sentence, by striking out ‘‘,

by providing for the establishment’’ and all

that follows through ‘‘encourage and provide’’ and inserting in lieu thereof ‘‘by encouraging and providing’’;

(C) in the second sentence, by striking out

‘‘in order to establish the partnerships’’ and

inserting in lieu thereof ‘‘in furtherance of

the program’’; and

(D) by adding at the end the following new

sentence: ‘‘The Secretary shall identify

projects to be conducted as part of the program.’’.

(2) Such section is further amended by

striking out subsections (b), (c), and (d) and

inserting in lieu thereof the following new

subsection:

‘‘(b) ASSISTANCE AUTHORIZED.—The Secretary of Defense may provide technical and

other assistance to facilitate the achievement of the purposes of projects conducted

under the program. In providing such assistance, the Secretary may make available, as

appropriate for the work to be performed,

equipment and facilities of Department of

Defense laboratories (including the scientists and engineers at those laboratories)

for purposes of projects selected by the Secretary.’’.

(3) Such section is further amended—

(A) by redesignating subsections (e), (f),

and (g), as subsections (c), (d), and (e), respectively;

(B) in subsection (c), as so redesignated, by

striking out ‘‘establishment of partnerships’’

and inserting in lieu thereof ‘‘conduct of the

program’’; and

(C) in subsection (d), as so redesignated—

(i) by striking out ‘‘proposed partnerships

for establishment under this section’’ in the

matter preceding paragraph (1) and inserting

in lieu thereof ‘‘projects under the program’’;

(ii) in paragraphs (1) and (2), by striking

out ‘‘program proposed to be conducted by

the partnership’’ both places it appears and

inserting in lieu thereof ‘‘proposed project’’;

(iii) in paragraph (3), by striking out ‘‘partnership’s’’ and inserting in lieu thereof ‘‘proposed project’s’’; and

(iv) in paragraphs (4) through (7), by striking out ‘‘partnership’’ each place it appears

and inserting in lieu thereof ‘‘project’’.

(d) REPEAL OF COMMERCIAL-MILITARY INTEGRATION PARTNERSHIPS PROGRAM.—Section

2512 of such title is repealed.

(e) REPEAL OF REGIONAL TECHNOLOGY ALLIANCES ASSISTANCE PROGRAM.—Section 2513 of

such title is repealed.

(f) MILITARY-CIVILIAN INTEGRATION AND

TECHNOLOGY TRANSFER ADVISORY BOARD.—

Section 2516(b) of such title is amended—

(1) by inserting ‘‘and’’ at the end of paragraph (2);

(2) by striking out ‘‘; and’’ at the end of

paragraph (3) and inserting in lieu thereof a

period; and

(3) by striking out paragraph (4).

(g) FEDERAL DEFENSE LABORATORY DIVERSIFICATION PROGRAM.—Section 2519 of such

title is amended—

(1) in subsection (b), by striking out ‘‘referred to in section 2511(b) of this title’’;

(2) in subsection (d)—

(A) by striking out ‘‘(1)’’ before ‘‘The Secretary shall’’; and

(B) by striking out paragraph (2); and

(3) in subsection (f), by striking out ‘‘section 2511(f)’’ and inserting in lieu thereof

‘‘section 2511(d)’’.

(h) REPEAL OF NAVY REINVESTMENT PROGRAM.—Section 2520 of such title is repealed.

(i) REPEAL OF NATIONAL DEFENSE MANUFACTURING TECHNOLOGY PROGRAM.—Section 2521

of such title is repealed.

(j) REPEAL OF DEFENSE ADVANCED MANUFACTURING TECHNOLOGY PARTNERSHIPS PROGRAM.—Section 2522 of such title is repealed.

(k) REPEAL OF MANUFACTURING EXTENSION

PROGRAM.—Section 2523 of such title is repealed.

(l) REPEAL OF DEFENSE DUAL-USE ASSISTANCE EXTENSION PROGRAM.—Section 2524 of

such title is repealed.

(m) CLERICAL AMENDMENTS.—(1) The heading of section 2511 of such title is amended to

read as follows:

‘‘§ 2511. Defense dual-use critical technology

program’’.

(2) The table of sections at the beginning of

subchapter III of chapter 148 of such title is

amended—

(A) by striking out the item relating to

section 2511 and inserting in lieu thereof the

following new item:

‘‘2511. Defense dual-use critical technology

program.’’; and

(B) by striking out the items relating to

sections 2512, 2513, and 2520.

(3) The table of sections at the beginning of

subchapter IV of such chapter is amended by

striking out the items relating to sections

2521, 2522, 2523, and 2524.

SEC. 1032. REPEAL OF MISCELLANEOUS PROVISIONS OF LAW.

(a) VOLUNTEERS INVESTING IN PEACE AND

SECURITY PROGRAM.—(1) Chapter 89 of title

10, United States Code, is repealed.

(2) The tables of chapters at the beginning

of subtitle A, and at the beginning of part II

of subtitle A, of such title are amended by

striking out the item relating to chapter 89.

(b) SECURITY AND CONTROL OF SUPPLIES.—

(1) Chapter 171 of such title is repealed.

(2) The tables of sections at the beginning

of subtitle A, and at the beginning of part IV

of subtitle A, of such title are each amended

by striking out the item relating to chapter

171.

(c) ANNUAL AUTHORIZATION OF MILITARY

TRAINING STUDENT LOADS.—Section 115 of

such title is amended—

(1) in subsection (a), by striking out paragraph (3);

(2) in subsection (b)—

(A) by inserting ‘‘or’’ at the end of paragraph (1);

(B) by striking out ‘‘; or’’ at the end of

paragraph (2) and inserting in lieu thereof a

period; and

(C) by striking out paragraph (3); and

(3) by striking out subsection (f).

(d) PORTIONS OF ANNUAL MANPOWER REQUIREMENTS REPORT.—Section 115a of such

title is amended—

(1) in subsection (b)(2), by striking out subparagraph (C);

(2) by striking out subsection (d);

(3) by redesignating subsection (e) as subsection (d) and striking out paragraphs (4)

and (5) thereof;

(4) by striking out subsection (f); and

(5) by redesignating subsection (g) as subsection (e).

(e) OBSOLETE AUTHORITY FOR PAYMENT OF

STIPENDS FOR MEMBERS OF CERTAIN ADVISORY COMMITTEES AND BOARDS OF VISITORS

OF SERVICE ACADEMIES.—(1) The second sentence of each of sections 173(b) and 174(b) of

such title is amended to read as follows:

‘‘Other members and part-time advisers shall

(except as otherwise specifically authorized

by law) serve without compensation for such

service.’’.

(2) Sections 4355(h), 6968(h), and 9355(h) of

such title are amended by striking out ‘‘is

entitled to not more than $5 a day and’’.

(f) ANNUAL BUDGET INFORMATION CONCERNING RECRUITING COSTS.—(1) Section 227

of such title is repealed.

(2) The table of sections at the beginning of

chapter 9 of such title is amended by striking out the item relating to section 227.

(g) EXPIRED AUTHORITY RELATING TO

PEACEKEEPING ACTIVITIES.—(1) Section 403 of

such title is repealed.

(2) The table of sections at the beginning of

subchapter I of chapter 20 of such title is

amended by striking out the item relating to

section 403.

(h) MANAGEMENT TRAINING PROGRAM IN

JAPANESE LANGUAGE AND CULTURE.—(1) Section 2198 of such title is repealed.

(2) The table of sections at the beginning of

chapter 111 of such title is amended by striking out the item relating to section 2198.

(i) PROCUREMENT OF GASOHOL FOR DEPARTMENT OF DEFENSE MOTOR VEHICLES.—(1) Subsection (a) of section 2398 of such title is repealed.

(2) Such section is further amended—

(A) by redesignating subsections (b) and (c)

as subsections (a) and (b), respectively; and

(B) in subsection (b), as so redesignated, by

striking out ‘‘subsection (b)’’ and inserting

in lieu thereof ‘‘subsection (a)’’.

(j) REQUIREMENT OF NOTICE OF CERTAIN DISPOSALS AND GIFTS BY SECRETARY OF NAVY.—

Section 7545 of such title is amended by

striking out subsection (c).

(k) ANNUAL REPORT ON BIOLOGICAL DEFENSE RESEARCH PROGRAM.—(1) Section 2370

of such title is repealed.

(2) The table of sections at the beginning of

chapter 139 of such title is amended by striking out the item relating to such section.

(l) REPORTS AND NOTIFICATIONS RELATING

TO CHEMICAL AND BIOLOGICAL AGENTS.—(1)

Subsection (a) of section 409 of Public Law

91–121 (50 U.S.C. 1511) is repealed.

(2) Subsection (b) of such section (50 U.S.C.

1512) is amended—

(A) by inserting ‘‘and’’ at the end of paragraph (2);

(B) by striking out ‘‘; and’’ at the end of

paragraph (3) and inserting in lieu thereof a

period; and

(C) by striking out paragraph (4).

(3) Subsection (c) of such section (50 U.S.C.

1513) is amended by striking out the second

sentence of paragraph (1).
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(m) PROVISION GIVING PERMANENT STATUS

TO EXECUTIVE ORDER RELATING TO NAVAL NUCLEAR PROPULSION PROGRAM.—Section 1634 of

the Department of Defense Authorization,

1985 (Public Law 98–525; 98 Stat. 2649; 42

U.S.C. 7158 note), is repealed.

(n) ANNUAL REPORT ON BALANCED TECHNOLOGY INITIATIVE.—Subsection (e) of section

211 of the National Defense Authorization

Act for Fiscal Years 1990 and 1991 (Public

Law 101–189; 103 Stat. 1394) is repealed.

(o) OBSOLETE AUTHORITY REGARDING ANNISTON ARMY DEPOT, ALABAMA.—Section 352 of

the National Defense Authorization Act for

Fiscal Year 1991 (Public Law 101–510; 104

Stat. 1539) is repealed.

(p) REPORT ON ENVIRONMENTAL RESTORATION COSTS FOR INSTALLATIONS TO BE CLOSED

UNDER 1990 BASE CLOSURE LAW.—Section 2827

of the National Defense Authorization Act

for Fiscal Years 1992 and 1993 (Public Law

102–190; 10 U.S.C. 2687 note) is amended by

striking out subsection (b).

(q) LIMITATION ON AMERICAN DIPLOMATIC

FACILITIES IN GERMANY.—Section 1432 of the

National Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat.

1833) is repealed.

(r) REQUIREMENT RELATING TO ATHLETIC DIRECTOR OF NAVAL ACADEMY.—Section 556(b)

of the National Defense Authorization Act

for Fiscal Year 1995 (Public Law 103–337; 108

Stat. 2774) (including the section of title 10,

United States Code, added by that section effective January 1, 1996, and the table of sections item added by that section) is repealed.

SEC. 1033. POLICY CONCERNING EXCESS DEFENSE INDUSTRIAL CAPACITY.

(a) FINDINGS.—Congress finds as follows:

(1) The Base Closure and Realignment

Commissions have recommended that certain Government-owned defense industrial

facilities which produce goods and services

that were required during the Cold War, but

which are no longer required for the national

security, be closed.

(2) The Secretary of Defense has determined that the maintenance of certain other

Government-owned defense industrial facilities is necessary to support the research, development, and manufacture of goods and

services that are still required to protect the

security of the United States.

(3) These Government-owned defense industrial facilities are critical to the security

of the Nation and should remain under Government control.

(4) Current work requirements at some of

these Government-owned defense industrial

facilities have fallen below a reasonably economic level of operation, increasing the cost

of producing required goods and services.

(5) Existing law and policy have failed to

address adequately the supplemental requirements necessary to operate these Government-owned defense industrial facilities

in a cost-efficient manner and, thereby, to

maintain appropriate readiness for future

national security needs.

(6) The security interests of the United

States would be served by the establishment

under law of a policy that requires the bestvalue operation of Government-owned defense industrial facilities.

(7) Such a policy should include, but not

necessarily be limited to, requirements

that—

(A) the required capability and capacity

not being fully used at such Governmentowned facilities be maintained with separate

funding so as to stabilize operational costs;

and

(B) those facilities not be limited by

workyear/end strength hiring constraints.

(b) PROHIBITION.—No funds appropriated

pursuant to an authorization of appropriations in this Act may be used for capital investment in, or the development and construction of, a Government-owned, Government-operated defense industrial facility unless the Secretary of Defense certifies to the

Congress that no similar capability or minimally used capacity exists in any other Government-owned, Government-operated defense industrial facility.

SEC. 1034. ROTC ACCESS TO CAMPUSES.

(a) IN GENERAL.—Chapter 49 of title 10,

United States Code, is amended by adding at

the end the following new section:

‘‘§ 983. Institutions of higher education that

prohibit Senior ROTC units: denial of Department of Defense grants and contracts

‘‘(a) DENIAL OF DEPARTMENT OF DEFENSE

GRANTS AND CONTRACTS.—(1) No funds appropriated or otherwise available to the Department of Defense may be made obligated by

contract or by grant (including a grant of

funds to be available for student aid) to any

institution of higher education that, as determined by the Secretary of Defense, has an

anti-ROTC policy and at which, as determined by the Secretary, the Secretary would

otherwise maintain or seek to establish a

unit of the Senior Reserve Officer Training

Corps or at which the Secretary would otherwise enroll or seek to enroll students for participation in a unit of the Senior Reserve Officer Training Corps at another nearby institution of higher education.

‘‘(2) In the case of an institution of higher

education that is ineligible for Department

of Defense grants and contracts by reason of

paragraph (1), the prohibition under that

paragraph shall cease to apply to that institution upon a determination by the Secretary that the institution no longer has an

anti-ROTC policy.

‘‘(b) NOTICE OF DETERMINATION.—Whenever

the Secretary makes a determination under

subsection (a) that an institution has an

anti-ROTC policy, or that an institution previously determined to have an anti-ROTC

policy no longer has such a policy, the

Secretary—

‘‘(1) shall transmit notice of that determination to the Secretary of Education and

to the Committee on Armed Services of the

Senate and the Committee on National Security of the House of Representatives; and

‘‘(2) shall publish in the Federal Register

notice of that determination and of the effect of that determination under subsection

(a)(1) on the eligibility of that institution for

Department of Defense grants and contracts.

‘‘(c) SEMIANNUAL NOTICE IN FEDERAL REGISTER.—The Secretary shall publish in the

Federal Register once every six months a list

of each institution of higher education that

is currently ineligible for Department of Defense grants and contracts by reason of a determination of the Secretary under subsection (a).

‘‘(d) ANTI-ROTC POLICY.—In this section,

the term ‘anti-ROTC policy’ means a policy

or practice of an institution of higher education that—

‘‘(1) prohibits, or in effect prevents, the

Secretary of Defense from maintaining or establishing a unit of the Senior Reserve Officer Training Corps at that institution, or

‘‘(2) prohibits, or in effect prevents, a student at that institution from enrolling in a

unit of the Senior Reserve Officer Training

Corps at another institution of higher education.’’.

(b) CLERICAL AMENDMENT.—The table of

sections at the beginning of such chapter is

amended by adding at the end the following

new item:

‘‘983. Institutions of higher education that

prohibit Senior ROTC units: denial of Department of Defense

grants and contracts.’’.

SEC. 1035. APPLICATION OF BUY AMERICAN ACT

PRINCIPLES.

(a) REINSTATEMENT OF PRINCIPLES.—(1) If

the Secretary of Defense, after consultation

with the United States Trade Representative, determines that a foreign country

which is party to an agreement described in

paragraph (2) has violated the terms of the

agreement by discriminating against certain

types of products produced in the United

States that are covered by the agreement,

the Secretary of Defense shall rescind the

Secretary’s blanket waiver of the Buy American Act with respect to such types of products produced in that foreign country.

(2) An agreement referred to in paragraph

(1) is any reciprocal defense procurement

memorandum of understanding, between the

United States and a foreign country pursuant to which the Secretary of Defense has

prospectively waived the Buy American Act

for certain products in that country.

(b) REPORT.—The Secretary of Defense

shall submit to Congress a report on the

amount of Department of Defense purchases

from foreign entities in fiscal year 1996. Such

report shall separately indicate the dollar

value of items for which the Buy American

Act was waived pursuant to any agreement

described in subsection (a)(2), the Trade

Agreement Act of 1979 (19 U.S.C. 2501 et seq.),

or any international agreement to which the

United States is a party.

(c) DEFINITION.—For purposes of this section, the term ‘‘Buy American Act’’ means

title III of the Act entitled ‘‘An Act making

appropriations for the Treasury and Post Office Departments for the fiscal year ending

June 30, 1934, and for other purposes’’, approved March 3, 1933 (41 U.S.C. 10a et seq.).

TITLE XI—COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET

UNION

SEC. 1101. SPECIFICATION OF COOPERATIVE

THREAT REDUCTION PROGRAMS.

(a) IN GENERAL.—For purposes of section

301 and other provisions of this Act, Cooperative Threat Reduction programs are the programs specified in subsection (b).

(b) SPECIFIED PROGRAMS.—The programs

referred to in subsection (a) are the following:

(1) Programs to facilitate the elimination,

and the safe and secure transportation and

storage, of nuclear, chemical, and other

weapons and their delivery vehicles.

(2) Programs to facilitate the safe and secure storage of fissile materials derived from

the elimination of nuclear weapons.

(3) Programs to prevent the proliferation

of weapons, weapons components, and weapons-related technology and expertise.

(4) Programs to expand military-to-military and defense contacts.

SEC. 1102. FISCAL YEAR 1996 AUTHORIZATION.

Of the amount authorized in section 301 for

Cooperative Threat Reduction programs, not

more than the following amounts shall be

available for the purposes specified:

(1) $50,000,000 for elimination of Russian

strategic offensive weapons.

(2) $20,000,000 for elimination of Ukraine

strategic nuclear weapons.

(3) $15,000,000 for elimination of

Kazakhstan strategic nuclear weapons.

(4) $5,000,000 for elimination of Belarus

strategic nuclear weapons.

(5) $6,000,000 for design of a storage facility

for Russian fissile material.

(6) $42,500,000 for weapons security in Russia.

(7) $35,000,000 for nuclear infrastructure

elimination in Ukraine, Belarus, and

Kazakhstan.

(8) $10,000,000 for activities designated as

Defense and Military Contacts/General Support/Training in Russia, Ukraine, Belarus,

and Kazakhstan.
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(9) $16,500,000 for activities designated as

Other Assessments/Support.

SEC. 1103. REPEAL OF DEMILITARIZATION ENTERPRISE FUND AUTHORITY.

Section 1204 of the Cooperative Threat Reduction Act of 1993 (title XII of Public Law

103–160; 22 U.S.C. 5953) is repealed.

SEC. 1104. PROHIBITION ON USE OF FUNDS FOR

PEACEKEEPING EXERCISES AND RELATED ACTIVITIES WITH RUSSIA.

None of the funds appropriated pursuant to

the authorization in section 301 for Cooperative Threat Reduction programs may be obligated or expended for the purpose of conducting with Russia any peacekeeping exercise or other peacekeeping-related activity.

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

Section 211(b) of Public Law 102–228 (105

Stat. 1694) is amended by striking out ‘‘committed to’’ in the matter preceding paragraph (1).

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

(a) ANNUAL REQUIREMENT.—(1) Not less

than 15 days before any obligation of any

funds appropriated for any fiscal year for a

program specified under section 1101 as a Cooperative Threat Reduction program, the

Secretary of Defense shall submit to the congressional committees specified in paragraph

(2) a report on that proposed obligation for

that program for that fiscal year.

(2) The congressional committees referred

to in paragraph (1) are the following:

(A) The Committee on Armed Services, the

Committee on Foreign Relations, and the

Committee on Appropriations of the Senate.

(B) The Committee on National Security,

the Committee on International Relations,

and the Committee on Appropriations of the

House of Representatives.

(b) MATTERS TO BE SPECIFIED IN REPORTS.—Each such report shall specify—

(1) the activities and forms of assistance

for which the Secretary of Defense plans to

obligate funds;

(2) the amount of the proposed obligation;

and

(3) the projected involvement (if any) of

any department or agency of the United

States (in addition to the Department of Defense) and of the private sector of the United

States in the activities and forms of assistance for which the Secretary of Defense

plans to obligate such funds.

SEC. 1107. REPORT ON ACCOUNTING FOR UNITED

STATES ASSISTANCE.

(a) REPORT.—(1) The Secretary of Defense

shall submit to Congress an annual report on

the efforts made by the United States (including efforts through the use of audits, examinations, and on-site inspections) to ensure that assistance provided under Cooperative Threat Reduction programs is fully accounted for and that such assistance is being

used for its intended purposes.

(2) A report shall be submitted under this

section not later than January 31 of each

year until the Cooperative Threat Reduction

programs are completed.

(b) INFORMATION TO BE INCLUDED.—Each report under this section shall include the following:

(1) A list of cooperative threat reduction

assistance that has been provided before the

date of the report.

(2) A description of the current location of

the assistance provided and the current condition of such assistance.

(3) A determination of whether the assistance has been used for its intended purpose.

(4) A description of the activities planned

to be carried out during the next fiscal year

to ensure that cooperative threat reduction

assistance provided during that fiscal year is

fully accounted for and is used for its intended purpose.

(c) COMPTROLLER GENERAL ASSESSMENT.—

Not later than 30 days after the date on

which a report of the Secretary under subsection (a) is submitted to Congress, the

Comptroller General of the United States

shall submit to Congress a report giving the

Comptroller General’s assessment of the report and making any recommendations that

the Comptroller General considers appropriate.

SEC. 1108. LIMITATION ON COOPERATIVE

THREAT REDUCTION PROGRAM RELATING TO OFFENSIVE BIOLOGICAL

WEAPONS PROGRAM IN RUSSIA.

None of the funds appropriated pursuant to

the authorization in section 301 for Cooperative Threat Reduction programs may be obligated or expended for programs or activities

with Russia unless and until the President

submits to Congress a certification in writing that Russia has terminated its offensive

biological weapons program.

TITLE XII—MATTERS RELATING TO

OTHER NATIONS

Subtitle A—Peacekeeping Provisions

SEC. 1201. LIMITATION ON EXPENDITURE OF DEPARTMENT OF DEFENSE FUNDS FOR

UNITED STATES FORCES PLACED

UNDER UNITED NATIONS COMMAND

OR CONTROL.

(a) IN GENERAL.—(1) Chapter 20 of title 10,

United States Code, is amended by inserting

after section 404 the following new section:

‘‘§ 405. Placement of United States forces

under United Nations command or control:

limitation

‘‘(a) LIMITATION.—Except as provided in

subsections (b) and (c), funds appropriated or

otherwise made available for the Department of Defense may not be obligated or expended for activities of any element of the

Armed Forces that after the date of the enactment of this section is placed under

United Nations command or control, as defined in subsection (f).

‘‘(b) EXCEPTION FOR PRESIDENTIAL CERTIFICATION.—(1) Subsection (a) shall not apply in

the case of a proposed placement of an element of the Armed Forces under United Nations command or control if the President,

not less than 15 days before the date on

which such United Nations command or control is to become effective (or as provided in

paragraph (2)), meets the requirements of

subsection (d).

‘‘(2) If the President certifies to Congress

that an emergency exists that precludes the

President from meeting the requirements of

subsection (d) 15 days before placing an element of the Armed Forces under United Nations command or control, the President

may place such forces under such command

or control and meet the requirements of subsection (d) in a timely manner, but in no

event later than 48 hours after such command or control becomes effective.

‘‘(c) ADDITIONAL EXCEPTIONS.—

‘‘(1) EXCEPTION FOR AUTHORIZATION BY

LAW.—Subsection (a) shall not apply in the

case of a proposed placement of any element

of the Armed Forces under United Nations

command or control if the Congress specifically authorizes by law that particular

placement of United States forces under

United Nations command or control.

‘‘(2) EXCEPTION FOR NATO OPERATIONS.—

Subsection (a) shall not apply in the case of

a proposed placement of any element of the

armed forces in an operation conducted by

the North Atlantic Treaty Organization.

‘‘(d) PRESIDENTIAL CERTIFICATIONS.—The

requirements referred to in subsection (b)(1)

are that the President submit to Congress

the following:

‘‘(1) Certification by the President that—

‘‘(A) such a United Nations command or

control arrangement is necessary to protect

national security interests of the United

States;

‘‘(B) the commander of any unit of the

Armed Forces proposed for placement under

United Nations command or control will at

all times retain the right—

‘‘(i) to report independently to superior

United States military authorities; and

‘‘(ii) to decline to comply with orders

judged by the commander to be illegal, militarily imprudent, or beyond the mandate of

the mission to which the United States

agreed with the United Nations, until such

time as that commander receives direction

from superior United States military authorities with respect to the orders that the

commander has declined to comply with;

‘‘(C) any element of the Armed Forces proposed for placement under United Nations

command or control will at all times remain

under United States administrative command for such purposes as discipline and

evaluation; and

‘‘(D) the United States will retain the authority to withdraw any element of the

Armed Forces from the proposed operation

at any time and to take any action it considers necessary to protect those forces if

they are engaged.

‘‘(2) A report setting forth the following:

‘‘(A) A description of the national security

interests that require the placement of

United States forces under United Nations

command or control.

‘‘(B) The mission of the United States

forces involved.

‘‘(C) The expected size and composition of

the United States forces involved.

‘‘(D) The incremental cost to the United

States of participation in the United Nations

operation by the United States forces which

are proposed to be placed under United Nations command or control.

‘‘(E) The precise command and control relationship between the United States forces

involved and the United Nations command

structure.

‘‘(F) The precise command and control relationship between the United States forces

involved and the commander of the United

States unified command for the region in

which those United States forces are to operate.

‘‘(G) The extent to which the United States

forces involved will rely on non-United

States forces for security and self-defense

and an assessment on the ability of those

non-United States forces to provide adequate

security to the United States forces involved.

‘‘(H) The timetable for complete withdrawal of the United States forces involved.

‘‘(e) CLASSIFICATION OF REPORT.—A report

under subsection (d) shall be submitted in

unclassified form and, if necessary, in classified form.

‘‘(f) UNITED NATIONS COMMAND OR CONTROL.—For purposes of this section, an element of the Armed Forces shall be considered to be placed under United Nations command or control if—

‘‘(1) that element is under the command or

operational control of an individual acting

on behalf of the United Nations for the purpose of international peacekeeping, peacemaking, peace-enforcing, or similar activity

that is authorized by the Security Council

under chapter VI or VII of the Charter of the

United Nations; and

‘‘(2) the senior military commander of the

United Nations force or operation—

‘‘(A) is a foreign national or is a citizen of

the United States who is not a United States

military officer serving on active duty; or

‘‘(B) is a United States military officer

serving on active duty but—

‘‘(i) that element of the armed forces is

under the command or operational control of

a subordinate commander who is a foreign

national or a citizen of the United States
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who is not a United States military officer

serving on active duty; and

‘‘(ii) that senior military commander does

not have the authority—

‘‘(I) to dismiss any subordinate officer in

the chain of command who is exercising

command or operational control over United

States forces and who is a foreign national

or a citizen of the United States who is not

a United States military officer serving on

active duty;

‘‘(II) to establish rules of engagement for

United States forces involved; and

‘‘(III) to establish criteria governing the

operational employment of United States

forces involved.

‘‘(g) INTERPRETATION.—Nothing in this section may be construed—

‘‘(1) as authority for the President to use

any element of the armed forces in any operation;

‘‘(2) as authority for the President to place

any element of the armed forces under the

command or operational control of a foreign

national; or

‘‘(3) as an unconstitutional infringement

on the authority of the President as commander-in-chief.’’.

(2) The table of sections at the beginning of

subchapter I of such chapter is amended by

adding at the end the following new item:

‘‘405. Placement of United States forces

under United Nations command

or control: limitation.’’.

(b) REPORT RELATING TO CONSTITUTIONALITY.—No certification may be submitted by the President under section

405(d)(1) of title 10, United States Code, as

added by subsection (a), until the President

has submitted to the Congress (after the date

of the enactment of this Act) a memorandum

of legal points and authorities explaining

why the placement of elements of United

States Armed Forces under the command or

operational control of a foreign national acting on behalf of the United Nations does not

violate the Constitution.

(c) EXCEPTION FOR ONGOING OPERATIONS IN

MACEDONIA AND CROATIA.—Section 405 of

title 10, United States Code, as added by subsection (a), does not apply in the case of activities of the Armed Forces as part of the

United Nations force designated as the

United Nations Protection Force

(UNPROFOR) that are carried out—

(1) in Macedonia pursuant to United Nations Security Council Resolution 795, adopted December 11, 1992, and subsequent reauthorization Resolutions; or

(2) in Croatia pursuant to United Nations

Security Council Resolution 743, adopted

February 21, 1992, and subsequent reauthorization Resolutions.

SEC. 1202. LIMITATION ON USE OF DEPARTMENT

OF DEFENSE FUNDS FOR UNITED

STATES SHARE OF COSTS OF

UNITED NATIONS PEACEKEEPING

ACTIVITIES.

(a) IN GENERAL.—(1) Chapter 20 of title 10,

United States Code, is amended by inserting

after section 405, as added by section 1201,

the following new section:

‘‘§ 406. Use of Department of Defense funds

for United States share of costs of United

Nations peacekeeping activities: limitation

‘‘(a) PROHIBITION ON USE OF FUNDS.—Funds

available to the Department of Defense may

not be used to make a financial contribution

(directly or through another department or

agency of the United States) to the United

Nations—

‘‘(1) for the costs of a United Nations

peacekeeping activity; or

‘‘(2) for any United States arrearage to the

United Nations.

‘‘(b) APPLICATION OF PROHIBITION.—The

prohibition in subsection (a) applies to voluntary contributions, as well as to contributions pursuant to assessment by the United

Nations for the United States share of the

costs of a peacekeeping activity.’’.

(2) The table of sections at the beginning of

such chapter is amended by inserting after

the item relating to section 405, as added by

section 1201, the following new item:

‘‘406. Use of Department of Defense funds for

United States share of costs of

United Nations peacekeeping

activities: limitation.’’.

(b) EFFECTIVE DATE.—Section 406 of title

10, United States Code, as added by subsection (a), shall take effect on October 1,

1995.

Subtitle B—Humanitarian Assistance

Programs

SEC. 1211. OVERSEAS HUMANITARIAN, DISASTER,

AND CIVIC AID PROGRAMS.

For purposes of section 301 and other provisions of this Act, programs of the Department of Defense designated as Overseas Humanitarian, Disaster, and Civic Aid

(OHDACA) programs are the programs provided by sections 401, 402, 404, 2547, and 2551

of title 10, United States Code.

SEC. 1212. HUMANITARIAN ASSISTANCE.

Section 2551 of title 10, United States Code

is amended—

(1) by striking out subsections (b) and (c);

(2) by redesignating subsection (d) as subsection (b);

(3) by striking out subsection (e) and inserting in lieu thereof the following:

‘‘(c) STATUS REPORTS.—(1) The Secretary of

Defense shall submit to the congressional

committees specified in subsection (f) an annual report on the provision of humanitarian

assistance pursuant to this section for the

prior fiscal year. The report shall be submitted each year at the time of the budget

submission by the President for the next fiscal year.

‘‘(2) Each report required by paragraph (1)

shall cover all provisions of law that authorize appropriations for humanitarian assistance to be available from the Department of

Defense for the purposes of this section.

‘‘(3) Each report under this subsection

shall set forth the following information regarding activities during the previous fiscal

year:

‘‘(A) The total amount of funds obligated

for humanitarian relief under this section.

‘‘(B) The number of scheduled and completed transportation missions for purposes

of providing humanitarian assistance under

this section.

‘‘(C) A description of any transfer of excess

nonlethal supplies of the Department of Defense made available for humanitarian relief

purposes under section 2547 of this title. The

description shall include the date of the

transfer, the entity to whom the transfer is

made, and the quantity of items transferred.’’;

(4) by redesignating subsection (f) as subsection (d) and in that subsection striking

out ‘‘the Committees on’’ and all that follows through ‘‘House of Representatives of

the’’ and inserting in lieu thereof ‘‘the congressional committees specified in subsection (f) and the Committees on Appropriations of the Senate and House of Representatives of the’’;

(5) by redesignating subsection (g) as subsection (e); and

(6) by adding at the end the following new

subsection:

‘‘(f) CONGRESSIONAL COMMITTEES.—The congressional committees referred to in subsections (c)(1) and (d) are the following:

‘‘(1) The Committee on Armed Services and

the Committee on Foreign Relations of the

Senate.

‘‘(2) The Committee on National Security

and the Committee on International Relations of the House of Representatives.’’.

SEC. 1213. LANDMINE CLEARANCE PROGRAM.

(a) INCLUSION IN GENERAL HUMANITARIAN

ASSISTANCE PROGRAM.—Subsection (e) of section 401 of title 10, United States Code, is

amended—

(1) by striking out ‘‘means—’’ and inserting in lieu thereof ‘‘means:’’;

(2) by revising the first word in each of

paragraphs (1) through (4) so that the first

letter of such word is upper case;

(3) by striking out the semicolon at the

end of paragraphs (1) and (2) and inserting in

lieu thereof a period;

(4) by striking out ‘‘; and’’ at the end of

paragraph (3) and inserting in lieu thereof a

period; and

(5) by adding at the end the following new

paragraph:

‘‘(5) Detection and clearance of landmines,

including activities relating to the furnishing of education, training, and technical

assistance with respect to the detection and

clearance of landmines.’’.

(b) LIMITATION ON LANDMINE ASSISTANCE BY

MEMBERS OF ARMED FORCES.—Subsection (a)

of such section is amended by adding at the

end the following new paragraph:

‘‘(4) The Secretary of Defense shall ensure

that no member of the armed forces, while

providing assistance under this section that

is described in subsection (e)(5)—

‘‘(A) engages in the physical detection,

lifting, or destroying of landmines (unless

the member does so for the concurrent purpose of supporting a United States military

operation); or

‘‘(B) provides such assistance as part of a

military operation that does not involve the

armed forces.’’.

(c) REPEAL.—Section 1413 of the National

Defense Authorization Act for Fiscal Year

1995 (Public Law 103–337; 108 Stat. 2913; 10

U.S.C. 401 note) is repealed.

Subtitle C—Other Matters

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

EXPORT MORATORIUM.

Section 1423(d)(3) of the National Defense

Authorization Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1831) is amended by

striking out ‘‘by remote control or’’ .

SEC. 1222. EXTENSION AND AMENDMENT OF

COUNTERPROLIFERATION AUTHORITIES.

(a) ONE-YEAR EXTENSION OF PROGRAM.—

Section 1505 of the Weapons of Mass Destruction Control Act of 1992 (title XV of Public

Law 102–484; 22 U.S.C. 5859a) is amended—

(1) in subsection (a), by striking out ‘‘during fiscal years 1994 and 1995’’;

(2) in subsection (e)(1), by striking out ‘‘fiscal years 1994 and 1995’’ and inserting in lieu

thereof ‘‘a fiscal year during which the authority of the Secretary of Defense to provide assistance under this section is in effect’’; and

(3) by adding at the end the following new

subsection:

‘‘(f) TERMINATION OF AUTHORITY.—The authority of the Secretary of Defense to provide assistance under this section terminates

at the close of fiscal year 1996.’’.

(b) PROGRAM AUTHORITIES.—(1) Subsections

(b)(2) and (d)(3) of such section are amended

by striking out ‘‘the On-Site Inspection

Agency’’ and inserting in lieu thereof ‘‘the

Department of Defense’’.

(2) Subsection (c)(3) of such section is

amended by striking out ‘‘will be counted’’

and all that follows and inserting in lieu

thereof ‘‘will be counted as discretionary

spending in the national defense budget function (function 050).’’.

(c) AMOUNT OF ASSISTANCE.—Subsection (d)

of such section is amended—
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(1) in paragraph (1)—

(A) by striking out ‘‘for fiscal year 1994’’

the first place it appears and all that follows

through the period at the end of the second

sentence and inserting in lieu thereof ‘‘for

any fiscal year shall be derived from

amounts made available to the Department

of Defense for that fiscal year.’’; and

(B) by striking out ‘‘referred to in this

paragraph’’; and

(2) in paragraph (3)—

(A) by striking out ‘‘may not exceed’’ and

all that follows through ‘‘1995’’; and

(B) by inserting before the period at the

end the following: ‘‘, may not exceed

$25,000,000 for fiscal year 1994, $20,000,000 for

fiscal year 1995, or $15,000,000 for fiscal year

1996’’.

SEC. 1223. PROHIBITION ON USE OF FUNDS FOR

ACTIVITIES ASSOCIATED WITH THE

UNITED STATES-PEOPLE’S REPUBLIC OF CHINA JOINT DEFENSE CONVERSION COMMISSION.

Funds appropriated to the Department of

Defense for fiscal year 1996 may not be obligated or expended for any activity associated

with the United States-People’s Republic of

China Joint Defense Conversion Commission.

SEC. 1224. DEFENSE EXPORT LOAN GUARANTEES.

(a) ESTABLISHMENT OF PROGRAM.—(1) Chapter 148 of title 10, United States Code, is

amended by adding at the end the following

new subchapter:

‘‘SUBCHAPTER VI—DEFENSE EXPORT

LOAN GUARANTEES

‘‘Sec.

‘‘2540. Establishment of loan guarantee program.

‘‘2540a. Transferability.

‘‘2540b. Limitations.

‘‘2540c. Fees charged and collected.

‘‘2540d. Definitions.

‘‘§ 2540. Establishment of loan guarantee program

‘‘(a) ESTABLISHMENT.—In order to meet the

national security objectives in section

2501(a) of this title, the Secretary of Defense

shall establish a program under which the

Secretary may issue guarantees assuring a

lender against losses of principal or interest,

or both principal and interest, arising out of

the financing of the sale or long-term lease

of defense articles, defense services, or design and construction services to a country

referred to in subsection (b).

‘‘(b) COVERED COUNTRIES.—The authority

under subsection (a) applies with respect to

the following countries:

‘‘(1) A member nation of the North Atlantic Treaty Organization (NATO).

‘‘(2) A country designated as of March 31,

1995, as a major non-NATO ally pursuant to

section 2350a(i)(3) of this title.

‘‘(3) A country that was a member nation

of the Asia Pacific Economic Cooperation

(APEC) as of March 31, 1995.

‘‘(c) AUTHORITY SUBJECT TO PROVISIONS OF

APPROPRIATION ACTS.—The Secretary may

guarantee a loan under this subchapter only

to such extent or in such amounts as may be

provided in advance in appropriations Acts.

‘‘§ 2540a. Transferability

‘‘A guarantee issued under this subchapter

shall be fully and freely transferable.

‘‘§ 2540b. Limitations

‘‘(a) TERMS AND CONDITIONS OF LOAN GUARANTEES.—In issuing a guarantee under this

subchapter for a medium-term or long-term

loan, the Secretary may not offer terms and

conditions more beneficial than those that

would be provided to the recipient by the Export-Import Bank of the United States under

similar circumstances in conjunction with

the provision of guarantees for nondefense

articles and services.

‘‘(b) LOSSES ARISING FROM FRAUD OR MISREPRESENTATION.—No payment may be made

under a guarantee issued under this subchapter for a loss arising out of fraud or misrepresentation for which the party seeking

payment is responsible.

‘‘(c) NO RIGHT OF ACCELERATION.—The Secretary of Defense may not accelerate any

guaranteed loan or increment, and may not

pay any amount, in respect of a guarantee

issued under this subchapter, other than in

accordance with the original payment terms

of the loan.

‘‘§ 2540c. Fees charged and collected

‘‘(a) IN GENERAL.—The Secretary of Defense shall charge a fee (known as ‘exposure

fee’) for each guarantee issued under this

subchapter.

‘‘(b) AMOUNT.—To the extent that the cost

of the loan guarantees under this subchapter

is not otherwise provided for in appropriations Acts, the fee imposed under this section with respect to a loan guarantee shall

be fixed in an amount sufficient to meet potential liabilities of the United States under

the loan guarantee.

‘‘(c) PAYMENT TERMS.—The fee for each

guarantee shall become due as the guarantee

is issued. In the case of a guarantee for a

loan which is disbursed incrementally, and

for which the guarantee is correspondingly

issued incrementally as portions of the loan

are disbursed, the fee shall be paid incrementally in proportion to the amount of the

guarantee that is issued.

‘‘§ 2540d. Definitions

‘‘In this subchapter:

‘‘(1) The terms ‘defense article’, ‘defense

services’, and ‘design and construction services’ have the meanings given those terms in

section 47 of the Arms Export Control Act (22

U.S.C. 2794).

‘‘(2) The term ‘cost’, with respect to a loan

guarantee, has the meaning given that term

in section 502 of the Congressional Budget

and Impoundment Control Act of 1974 (2

U.S.C. 661a).’’.

(2) The table of subchapters at the beginning of such chapter is amended by adding at

the end the following new item:

‘‘VI. Defense Export Loan Guarantees .............................................. 2540’’.

(b) REPORT.—Not later than two years

after the date of the enactment of this Act,

the President shall submit to Congress a report on the loan guarantee program established pursuant to section 2540 of title 10,

United States Code, as added by subsection

(a). The report shall include—

(1) an analysis of the costs and benefits of

the loan guarantee program; and

(2) any recommendations for modification

of the program that the President considers

appropriate, including—

(A) any recommended addition to the list

of countries for which a guarantee may be

issued under the program; and

(B) any proposed legislation necessary to

authorize a recommended modification.

SEC. 1225. ACCOUNTING FOR BURDENSHARING

CONTRIBUTIONS.

(a) AUTHORITY TO MANAGE CONTRIBUTIONS

IN LOCAL CURRENCY, ETC.—Subsection (b) of

section 2350j of title 10, United States Code,

is amended to read as follows:

‘‘(b) ACCOUNTING.—Contributions accepted

under subsection (a) which are not related to

security assistance may be accepted, managed, and expended in dollars or in the currency of the host nation (or, in the case of a

contribution from a regional organization, in

the currency in which the contribution was

provided). Any such contribution shall be

placed in an account established for such

purpose and shall remain available until expended for the purposes specified in subsection (c). The Secretary of Defense shall

establish a separate account for such purpose

for each country or regional organization

from which such contributions are accepted

under subsection (a).’’.

(b) CONFORMING AMENDMENT.—Subsection

(d) of such section is amended by striking

out ‘‘credited under subsection (b) to an appropriation account of the Department of

Defense’’ and inserting in lieu thereof

‘‘placed in an account established under subsection (b)’’.

(c) TECHNICAL AMENDMENT.—Such section

is further amended—

(1) in subsection (e)(1), by striking out ‘‘a

report to the congressional defense committees’’ and inserting in lieu thereof ‘‘to the

congressional committees specified in subsection (g) a report’’; and

(2) by adding at the end the following new

subsection:

‘‘(g) CONGRESSIONAL COMMITTEES.—The

congressional committees referred to in subsection (e)(1) are—

‘‘(1) the Committee on Armed Services and

the Committee on Appropriations of the Senate; and

‘‘(2) the Committee on National Security

and the Committee on Appropriations of the

House of Representatives.’’.

SEC. 1226. AUTHORITY TO ACCEPT CONTRIBUTIONS FOR EXPENSES OF RELOCATION WITHIN HOST NATION OF

UNITED STATES ARMED FORCES

OVERSEAS.

(a) IN GENERAL.—(1) Subchapter II of chapter 138 of title 10, United States Code, is

amended by adding at the end the following

new section:

‘‘§ 2350k. Relocation within host nation of elements of armed forces overseas

‘‘(a) AUTHORITY TO ACCEPT CONTRIBUTIONS.—The Secretary of Defense may accept

contributions from any nation because of or

in support of the relocation of elements of

the armed forces from or to any location

within that nation. Such contributions may

be accepted in dollars or in the currency of

the host nation. Any such contribution shall

be placed in an account established for such

purpose and shall remain available until expended for the purposes specified in subsection (b). The Secretary shall establish a

separate account for such purpose for each

country from which such contributions are

accepted.

‘‘(b) USE OF CONTRIBUTIONS.—The Secretary may use a contribution accepted

under subsection (a) only for payment of

costs incurred in connection with the relocation concerning which the contribution was

made. Those costs include the following:

‘‘(1) Design and construction services, including development and review of statements of work, master plans and designs, acquisition of construction, and supervision

and administration of contracts relating

thereto.

‘‘(2) Transportation and movement services, including packing, unpacking, storage,

and transportation.

‘‘(3) Communications services, including

installation and deinstallation of communications equipment, transmission of messages and data, and rental of transmission

capability.

‘‘(4) Supply and administration, including

acquisition of expendable office supplies,

rental of office space, budgeting and accounting services, auditing services, secretarial services, and translation services.

‘‘(5) Personnel costs, including salary, allowances and overhead of employees whether

full-time or part-time, temporary or permanent (except for military personnel), and

travel and temporary duty costs.

‘‘(6) All other clearly identifiable expenses

directly related to relocation.

‘‘(c) METHOD OF CONTRIBUTION.—Contributions may be accepted in any of the following forms:
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‘‘(1) Irrevocable letter of credit issued by a

financial institution acceptable to the Treasurer of the United States.

‘‘(2) Drawing rights on a commercial bank

account established and funded by the host

nation, which account is blocked such that

funds deposited cannot be withdrawn except

by or with the approval of the United States.

‘‘(3) Cash, which shall be deposited in a

separate trust fund in the United States

Treasury pending expenditure and which

shall accrue interest in accordance with section 9702 of title 31.

‘‘(d) ANNUAL REPORT TO CONGRESS.—Not

later than 30 days after the end of each fiscal

year, the Secretary shall submit to Congress

a report specifying—

‘‘(1) the amount of the contributions accepted by the Secretary during the preceding

fiscal year under subsection (a) and the purposes for which the contributions were made;

and

‘‘(2) the amount of the contributions expended by the Secretary during the preceding fiscal year and the purposes for which

the contributions were expended.’’.

(2) The table of sections at the beginning of

subchapter II of chapter 138 of such title is

amended by adding at the end the following

new item:

‘‘2350k. Relocation within host nation of elements of armed forces overseas.’’.

(b) EFFECTIVE DATE.—Section 2350k of title

10, United States Code, as added by subsection (a), shall take effect on October 1,

1995, and shall apply to contributions for relocation of elements of the Armed Forces in

or to any nation received on or after such

date.

SEC. 1227. SENSE OF CONGRESS ON ABM TREATY

VIOLATIONS.

(a) FINDINGS.—The Congress finds the following:

(1) The 1972 Anti-Ballistic Missile Treaty

prohibits either party from deploying ballistic missile early warning radars except at

locations along the periphery of its national

territory and oriented outward.

(2) The 1972 Anti-Ballistic Missile Treaty

prohibits either party from deploying an

ABM system to defend its national territory

and from providing a base for any such nationwide defense.

(3) Large phased-array radars were recognized during negotiation of the Anti-Ballistic Missile Treaty as the critical long

lead-time element of a nationwide defense

against ballistic missiles.

(4) In 1983 the United States discovered the

construction, in the interior of the Soviet

Union near the town of Krasnoyarsk, of a

large phased-array radar that was judged to

be for ballistic missile early warning and

tracking.

(5) The Krasnoyarsk radar was certified by

the Reagan Administration and previous sessions of Congress as an unequivocal violation

by the Soviet Union of the Anti-Ballistic

Missile Treaty.

(6) Retired Soviet General Y.V. Votintsev,

Director of the Soviet National Air Defense

Forces from 1967 to 1985, has publicly stated

that he was directed by the Chief of the Soviet General staff to locate the large phasedarray radar at Krasnoyarsk despite the recognition that its location would be a clear

violation of the ABM Treaty.

(7) General Votintsev has publicly stated

that Marshal D.F. Ustinov, Soviet Minister

of Defense, threatened to relieve from duty

any Soviet officer who continued to object to

the construction of a large-phased array

radar at Krasnoyarsk.

(b) SENSE OF CONGRESS.—It is the sense of

Congress that—

(1) the government of the Soviet Union intentionally violated its legal obligations

under the 1972 Anti-Ballistic Missile Treaty

in order to advance its national security interests; and

(2) the United States should remain vigilant in ensuring compliance by Russia with

its arms control obligations and should,

when pursuing future arms control agreements with Russia, bear in mind violations

of arms control obligations by the Soviet

Union.

SEC. 1228. REDUCTION OF UNITED STATES MILITARY FORCES IN EUROPE.

(a) END STRENGTH REDUCTIONS FOR MILITARY PERSONNEL IN EUROPE.—Notwithstanding section 1002(c)(1) of the National

Defense Authorization Act, 1985 (22 U.S.C.

1928 note), but subject to subsection (d), for

each of fiscal years 1996, 1997, 1998, and 1999,

the Secretary of Defense shall reduce the end

strength level of members of the Armed

Forces of the United States assigned to permanent duty ashore in European member nations of the North Atlantic Treaty Organization (NATO) in accordance with subsection

(b).

(b) REDUCTION FORMULA.—

(1) APPLICATION OF FORMULA.—For each

percentage point by which, as of the end of a

fiscal year, the allied contribution level determined under paragraph (2) is less than the

allied contribution goal specified in subsection (c), the Secretary of Defense shall reduce the end strength level of members of

the Armed Forces of the United States assigned to permanent duty ashore in European member nations of NATO by 1,000 for

the next fiscal year. The reduction shall be

made from the end strength level in effect,

pursuant to section 1002(c)(1) of the National

Defense Authorization Act, 1985 (22 U.S.C.

1928 note), and subsection (a) of this section

(if applicable), for the fiscal year in which

the allied contribution level is less than the

goal specified in subsection (c).

(2) DETERMINATION OF ALLIED CONTRIBUTION

LEVEL.—To determine the allied contribution

level with respect to a fiscal year, the Secretary of Defense shall calculate the aggregate amount of nonpersonnel costs for

United States military installations in European member nations of NATO that are assumed during that fiscal year by such nations, except that the Secretary may consider only those cash and in-kind contributions by such nations that replace expenditures that would otherwise be made by the

Secretary using funds appropriated or otherwise made available in defense appropriations Acts.

(c) ANNUAL ALLIED CONTRIBUTION GOALS.—

(1) GOALS.—In continuing efforts to enter

into revised host-nation agreements as described in the provisions of law specified in

paragraph (2), the President is urged to seek

to have European member nations of NATO

assume an increased share of the nonpersonnel costs of United States military installations in those nations in accordance with

the following timetable:

(A) By September 30, 1996, 18.75 percent of

such costs should be assumed by those nations.

(B) By September 30, 1997, 37.5 percent of

such costs should be assumed by those nations.

(C) By September 30, 1998, 56.25 percent of

such costs should be assumed by those nations.

(D) By September 30, 1999, 75 percent of

such costs should be assumed by those nations.

(2) SPECIFIED LAWS.—The provisions of law

referred to in paragraph (1) are—

(A) section 1301(e) of National Defense Authorization Act for Fiscal Year 1993 (Public

Law 102–484; 106 Stat. 2545);

(B) section 1401(c) of the National Defense

Authorization Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1824); and

(C) section 1304 of the National Defense Authorization Act for Fiscal Year 1995 (Public

Law 103–337; 108 Stat. 2890),

(d) EXCEPTIONS.—

(1) MINIMUM END STRENGTH AUTHORITY.—

Notwithstanding reductions required pursuant to subsection (a), the Secretary of Defense may maintain an end strength of at

least 25,000 members of the Armed Forces of

the United States assigned to permanent

duty ashore in European member nations of

NATO.

(2) WAIVER AUTHORITY.—The President may

waive operation of this section if the President declares an emergency. The President

shall immediately inform Congress of any

such waiver and the reasons for the waiver.

(e) ALLOCATION OF FORCE REDUCTIONS.—To

the extent that there is a reduction in end

strength level for any of the Armed Forces in

European member nations of NATO in a fiscal year pursuant to subsection (a)—

(1) half of the reduction shall be used to

make a corresponding reduction in the authorized end strength level for active duty

personnel for such Armed Force for that fiscal year; and

(2) half of the reduction shall be used to

make a corresponding increase in permanent

assignments or deployments of forces in the

United States or other nations (other than

European member nations of NATO) for each

such Armed Force for that fiscal year, as determined by the Secretary of Defense.

(f) NONPERSONNEL COSTS DEFINED.—For

purposes of this section, the term ‘‘nonpersonnel costs’’, with respect to United States

military installations in European member

nations of NATO, means costs for those installations other than costs paid from military personnel accounts.

SEC. 1229. SENSE OF CONGRESS CONCERNING

UNILATERAL IMPLEMENTATION OF

START II TREATY.

(a) FINDINGS.—Congress finds that—

(1) the START II Treaty has not entered

into force; and

(2) the United States is nevertheless taking

unilateral steps to implement the reductions

in strategic forces called for by that treaty.

(b) SENSE OF CONGRESS.—It is the sense of

Congress that the Secretary of Defense

should not implement any reduction in strategic forces that is called for in the START

II Treaty unless and until that treaty enters

into force.

(c) DEFINITIONS.—For purposes of this section, the term ‘‘START II Treaty’’ means the

Treaty between the United States of America and the Russian Federation on Further

Reduction and Limitation of Strategic Offensive Arms.

SEC. 1230. SENSE OF THE CONGRESS REGARDING

THE CHEMICAL WEAPONS CONVENTION.

(a) FINDINGS.—The Congress finds that—

(1) events such as the March 1995 terrorist

release of a chemical nerve agent in the

Tokyo subway, the threatened use of chemical weapons during the 1991 Persian Gulf

War, and the widespread use of chemical

weapons during the Iran-Iraq War of the

1980’s are all potent reminders of the menace

posed by chemical weapons, of the fact that

the threat of chemical weapons is

unappreciated and not sufficiently addressed, and of the need to outlaw the development, production, and possession of chemical weapons;

(2) the Convention on the Prohibition of

the Development, Production, Stockpiling,

and Use of Chemical Weapons and on Their

Destruction (hereafter in this section referred to as the ‘‘Convention’’) would establish a comprehensive ban on chemical weapons, and its negotiation has enjoyed strong

bipartisan congressional support, as well as

the support of the last 6 administrations,

both Republican and Democratic;
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(3) United States military authorities, including Chairman of the Joint Chiefs of Staff

General John Shalikashvili, have stated that

United States military forces will deter and

respond to chemical weapons threats with a

robust chemical defense and an overwhelming superior conventional response, as

demonstrated in the Persian Gulf War, and

have testified in support of the Convention’s

ratification;

(4) the Congress in 1985 mandated the unilateral destruction of the bulk of the chemical weapons stockpile of the United States,

and the Convention, which requires participating states to destroy their chemical arsenals and production facilities under international supervision, would accelerate

progress toward the disarmament of chemical weapons in a majority of the states believed to harbor chemical weapons capabilities, as this majority is among the Convention’s 159 signatories;

(5) the United States chemical industry

was an important partner during the negotiation of the Convention, assisted in

crafting a reasonable, effective verification

protocol, participated in both United States

and international trials to test provisions of

the Convention during its negotiation, and

testified in support of the Convention’s ratification;

(6) the United States intelligence community has testified that the Convention will

provide new and important sources of information, through regular data exchanges and

routine and challenge inspections, to improve the ability of the United States to assess the chemical weapons status in countries of concern;

(7) the Convention will gradually isolate

and automatically penalize states that

refuse to join by preventing them from gaining access to dual-use chemicals and creating a basis for monitoring illegal diversions of those materials;

(8) the Convention has not entered into

force for lack of the requisite number of ratifications;

(9) the United States played a leading role

in drafting the Convention, and, as a global

leader, must remain at the helm of this effort to deter further proliferation of chemical weapons and provide the legal framework that will minimize the threat posed by

chemical weapons;

(10) Russia has signed the Convention, but

has not yet ratified it;

(11) there have been reports by Russian

sources of continued Russian production and

testing of chemical weapons, including a

statement by a spokesman of the Russian

Ministry of Defense on December 5, 1994, that

‘‘We cannot say that all chemical weapons

production and testing has stopped altogether.’’; and

(12) the Convention will impose a legally

binding obligation on Russia and other nations that possess chemical weapons to cease

offensive chemical weapons activities and to

destroy their chemical weapons stockpiles

and production facilities.

(b) SENSE OF CONGRESS.—It is the sense of

the Congress that—

(1) the United States should signify its

commitment to reducing the threat posed by

chemical weapons by promptly joining the 28

other nations that have ratified the Convention;

(2) both Houses of Congress should further

demonstrate United States preparedness to

adopt the Convention by acting expeditiously to pass the required implementing

legislation as soon as the Senate gives its advice and consent to the ratification of the

Convention;

(3) both Houses of Congress should continue to lend their full support for the indefinite future to programs that maintain, as

the Convention allows and monitors, United

States defensive preparedness against chemical weapons;

(4) the United States must be prepared to

exercise fully its rights under the Convention, including the request of challenge inspections when warranted, and to exercise

leadership in pursuing punitive measures

against violators of the Convention, when

warranted;

(5) the United States should strongly encourage full implementation at the earliest

possible date of the terms and conditions of

the United States - Russia bilateral chemical

weapons destruction agreement signed in

1990;

(6) understanding that Western assistance

would be helpful to a successful Russian

chemical weapons destruction program, the

United States should encourage Russia to

ratify promptly the Convention and implement a plan that will ensure full compliance

with the Convention, including the destruction of chemical weapons stockpiles in accordance with the Convention’s time lines;

and

(7) the United States should seek to encourage other nations to ratify promptly the

Convention and to implement faithfully all

its terms and conditions.

DIVISION B—MILITARY CONSTRUCTION

AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

This division may be cited as the ‘‘Military

Construction Authorization Act for Fiscal

Year 1996’’.

TITLE XXI—ARMY

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION

AND LAND ACQUISITION PROJECTS.

(a) INSIDE THE UNITED STATES.—Using

amounts appropriated pursuant to the authorization of appropriations in section

2104(a)(1), the Secretary of the Army may acquire real property and carry out military

construction projects for the installations

and locations inside the United States, and

in the amounts, set forth in the following

table:

Army: Inside the United States

State Installation or location Amount

Alabama ............... Fort Rucker ......................................... $5,900,000

Redstone Arsenal ............................... $5,000,000

Arizona .................. Fort Huachuca .................................... $18,550,000

California .............. Fort Irwin ............................................ $25,500,000

Presidio of San Francisco .................. $3,000,000

Colorado ............... Fort Carson ........................................ $30,850,000

District of Colum- bia.Fort McNair ........................................ $13,500,000

Georgia ................. Fort Benning ...................................... $37,900,000

Fort Gordon ........................................ $5,750,000

Fort Stewart ....................................... $8,400,000

Hawaii .................. Schofield Barracks ............................. $15,000,000

Kentucky ............... Fort Knox ............................................ $5,600,000

Missouri ................ Fort Leonard Wood ............................. $3,900,000

New Jersey ............ Picatinny Arsenal ............................... $5,500,000

New Mexico ........... White Sands Missile Range ............... $2,050,000

New York .............. Fort Drum ........................................... $11,450,000

United States Military Academy ........ $8,300,000

Watervliet Arsenal .............................. $680,000

North Carolina ...... Fort Bragg .......................................... $29,700,000

Oklahoma ............. Fort Sill .............................................. $14,300,000

South Carolina ..... Naval Weapons Station, Charleston .. $25,700,000

Fort Jackson ....................................... $32,000,000

Texas .................... Fort Hood ............................................ $32,500,000

Fort Bliss ............................................ $56,900,000

Fort Sam Houston .............................. $7,000,000

Virginia ................. Fort Eustis .......................................... $16,400,000

Fort Myer ............................................ $17,000,000

Washington ........... Fort Lewis .......................................... $32,100,000

CONUS Classified Classified Location ............................ $1,900,000

Army: Inside the United States—Continued

State Installation or location Amount

Total: .............................................. $472,330,000

(b) OUTSIDE THE UNITED STATES.—Using

amounts appropriated pursuant to the authorization of appropriations in section

2104(a)(2), the Secretary of the Army may acquire real property and carry out military

construction projects for the locations outside the United States, and in the amounts,

set forth in the following table:

Army: Outside the United States

Country Installation or location Amount

Korea .................... Camp Casey ....................................... $4,150,000

Camp Hovey ....................................... $13,500,000

Camp Pelham .................................... $5,600,000

Camp Stanley ..................................... $6,800,000

Yongsan ............................................. $1,450,000

Overseas Classified.Classified Location ............................ $48,000,000

Total: .............................................. $79,500,000

SEC. 2102. FAMILY HOUSING.

(a) CONSTRUCTION AND ACQUISITION.—Using

amounts appropriated pursuant to the authorization of appropriations in section

2104(a)(5)(A), the Secretary of the Army may

construct or acquire family housing units

(including land acquisition) at the installations, for the purposes, and in the amounts

set forth in the following table:

Army: Family Housing

State Installation Purpose Amount

Alabama .... Redstone Arsenal .......... 118 units ......... $12,000,000

Kentucky .... Fort Knox ....................... 262 units ......... $19,000,000

New York .... United States Military

Academy, West Point 119 units ......... $16,500,000

Virginia ...... Fort Lee ......................... 135 units ......... $19,500,000

Washington Fort Lewis ...................... 84 units ........... $10,800,000

Total: ........... $77,800,000

(b) PLANNING AND DESIGN.—Using amounts

appropriated pursuant to the authorization

of appropriations in section 2104(a)(5)(A), the

Secretary of the Army may carry out architectural and engineering services and construction design activities with respect to

the construction or improvement of family

housing units in an amount not to exceed

$2,000,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY

HOUSING UNITS.

Subject to section 2825 of title 10, United

States Code, and using amounts appropriated

pursuant to the authorization of appropriations in section 2104(a)(5)(A), the Secretary

of the Army may improve existing military

family housing in an amount not to exceed

$46,600,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS,

ARMY.

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1995, for military

construction, land acquisition, and military

family housing functions of the Department

of the Army in the total amount of

$2,167,190,000 as follows:

(1) For military construction projects inside the United States authorized by section

2101(a), $472,330,000.
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1995 T80.11

(2) For military construction projects outside the United States authorized by section

2101(b), $79,500,000.

(3) For unspecified minor military construction projects authorized by section 2805

of title 10, United States Code, $9,000,000.

(4) For architectural and engineering services and construction design under section

2807 of title 10, United States Code,

$70,778,000.

(5) For military family housing functions:

(A) For construction and acquisition, planning and design, and improvements of military family housing and facilities,

$126,400,000.

(B) For support of military family housing

(including the functions described in section

2833 of title 10, United States Code),

$1,333,596,000.

(6) For the Homeowners Assistance Program, as authorized by section 2832 of title

10, United States Code, $75,586,000, to remain

available until expended. (b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.—Notwithstanding the

cost variations authorized by section 2853 of

title 10, United States Code, and any other

cost variation authorized by law, the total

cost of all projects carried out under section

2101 of this Act may not exceed the total

amount authorized to be appropriated under

paragraphs (1) and (2) of subsection (a).

TITLE XXII—NAVY

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION

AND LAND ACQUISITION PROJECTS.

(a) INSIDE THE UNITED STATES.—Using

amounts appropriated pursuant to the authorization of appropriations in section

2204(a)(1), the Secretary of the Navy may acquire real property and carry out military

construction projects for the installations

and locations inside the United States, and

in the amounts, set forth in the following

table:

Navy: Inside the United States

State Installation or location Amount

California .............. Marine Corps Air-Ground Combat

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

Navy: Inside the United States—Continued

State Installation or location Amount

Virginia ................. Fleet and Industrial Supply Center,

Williamsburg .................................. $8,390,000 Marine Corps Combat Development

Command, Quantico ...................... $3,500,000

Naval Hospital, Portsmouth ............... $9,500,000

Naval Station, Norfolk ........................ $28,580,000

Naval Weapons Station, Yorktown ..... $1,300,000

Washington ........... Naval Undersea Warfare Center Division, Keyport .................................. $5,300,000 Puget Sound Naval Shipyard, Bremerton .............................................. $19,870,000

Total: .............................................. $445,609,000

(b) OUTSIDE THE UNITED STATES.—Using

amounts appropriated pursuant to the authorization of appropriations in section

2204(a)(2), the Secretary of the Navy may acquire real property and carry out military

construction projects for the installations

and locations outside the United States, and

in the amounts, set forth in the following

table:

Navy: Outside the United States

Country Installation or location Amount

Guam .................... Naval Com & Telecoms Area

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

SEC. 2202. FAMILY HOUSING.

(a) CONSTRUCTION AND ACQUISITION.—Using

amounts appropriated pursuant to the authorization of appropriations in section

2204(a)(5)(A), the Secretary of the Navy may

construct or acquire family housing units

(including land acquisition) at the installations, for the purposes, and in the amounts

set forth in the following table:

Navy: Family Housing

State Installation Purpose Amount

California ... Marine Corps Base,

Camp 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 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 Caro- lina.Marine Corps Air Station, Cherry Point ...... Community Center.

$1,003,000

Pennsyl- vania.Navy Ships Parts Control Center, Mechanicsburg ...................... Housing Office $300,000

Puerto Rico Naval Station, Roosevelt

Roads ........................ Housing Office $710,000

Virginia ...... Naval Surface Warfare

Center, Dahlgren ....... Housing Office $520,000 Public Works Center,

Norfolk ....................... 320 units ......... $42,500,000

Public Works Center,

Norfolk ....................... Housing Office $1,390,000

Total: ........... $230,752,000

(b) PLANNING AND DESIGN.—Using amounts

appropriated pursuant to the authorization

of appropriations in section 2204(a)(5)(A), the

Secretary of the Navy may carry out architectural and engineering services and construction design activities with respect to

the construction or improvement of military

family housing units in an amount not to exceed $24,390,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY

HOUSING UNITS.

Subject to section 2825 of title 10, United

States Code, and using amounts appropriated

pursuant to the authorization of appropriations in section 2204(a)(5)(A), the Secretary

of the Navy may improve existing military

family housing units in an amount not to exceed $292,931,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS,

NAVY.

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1994, for military

construction, land acquisition, and military

family housing functions of the Department

of the Navy in the total amount of

$2,164,861,000 as follows:

(1) For military construction projects inside the United States authorized by section

2201(a), $445,609,000.

(2) For military construction projects outside the United States authorized by section

2201(b), $69,250,000.

(3) For unspecified minor construction

projects authorized by section 2805 of title 10,

United States Code, $7,200,000.

(4) For architectural and engineering services and construction design under section

2807 of title 10, United States Code,

$66,184,000.

(5) For military family housing functions:

(A) For construction and acquisition, planning and design, and improvement of military family housing and facilities,

$531,289,000.

(B) For support of military housing (including functions described in section 2833 of

title 10, United States Code), $1,045,329,000.

(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.—Notwithstanding the

cost variations authorized by section 2853 of

title 10, United States Code, and any other

cost variation authorized by law, the total

cost of all projects carried out under section

2201 of this Act may not exceed the total

amount authorized to be appropriated under

paragraphs (1) and (2) of subsection (a).

TITLE XXIII—AIR FORCE

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION

PROJECTS.

(a) INSIDE THE UNITED STATES.—Using

amounts appropriated pursuant to the authorization of appropriations in section

2304(a)(1), the Secretary of the Air Force

may acquire real property and carry out

military construction projects for the installations and locations inside the United

States, and in the amounts, set forth in the

following table:

Air Force: Inside the United States

State Installation or location Amount

Alabama ............... Maxwell Air Force Base ..................... $3,700,000

Alaska ................... Eielson Air Force Base ....................... $3,850,000

Elmendorf Air Force Base .................. $9,100,000

Tin City Long Range RADAR Site ...... $2,500,000
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Air Force: Inside the United States—Continued

State Installation or location Amount

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 Colum- bia.Bolling Air Force Base ....................... $12,100,000

Florida .................. Cape Canaveral Air Force Station ..... $1,600,000

Eglin Air Force Base .......................... $13,500,000

Tyndall Air Force Base ....................... $1,200,000

Georgia ................. Moody Air Force Base ........................ $19,190,000

Robins Air Force Base ....................... $6,900,000

Hawaii .................. Hickam Air Force Base ...................... $10,700,000

Idaho .................... Mountain Home Air Force Base ......... $18,650,000

Illinois ................... Scott Air Force Base .......................... $12,700,000

Kansas .................. McConnell Air Force Base .................. $15,950,000

Louisiana .............. Barksdale Air Force Base .................. $2,500,000

Maryland ............... Andrews Air Force Base ..................... $12,886,000

Mississippi ........... Columbus Air Force Base .................. $1,150,000

Keesler Air Force Base ....................... $14,800,000

Missouri ................ Whiteman Air Force Base .................. $24,600,000

Nevada ................. Nellis Air Force Base ......................... $10,500,000

New Jersey ............ McGuire Air Force Base ..................... $21,500,000

New Mexico ........... Cannon Air Force Base ...................... $13,420,000

Kirtland Air Force Base ..................... $9,156,000

North Carolina ...... Pope Air Force Base .......................... $8,250,000

Seymour Johnson Air Force Base ....... $7,530,000

North Dakota ........ Grand Forks Air Force Base ............... $14,800,000

Minot Air Force Base ......................... $1,550,000

Ohio ...................... Wright Patterson Air Force Base ....... $4,100,000

Oklahoma ............. Altus Air Force Base .......................... $5,200,000

Tinker Air Force Base ........................ $5,100,000

South Carolina ..... Charleston Air Force Base ................. $12,500,000

Shaw Air Force Base ......................... $1,300,000

Tennessee ............. Arnold Air Force Base ........................ $5,000,000

Texas .................... Dyess Air Force Base ......................... $5,400,000

Goodfellow Air Force Base ................. $1,000,000

Kelly Air Force Base ........................... $3,244,000

Laughlin Air Force Base .................... $1,400,000

Randolph Air Force Base ................... $3,100,000

Reese Air Force Base ......................... $1,200,000

Sheppard Air Force Base ................... $1,500,000

Virginia ................. Langley Air Force Base ...................... $1,000,000

Washington ........... Fairchild Air Force Base .................... $15,700,000

McChord Air Force Base .................... $9,900,000

Wyoming ............... F.E. Warren Air Force Base ................ $13,000,000

CONUS Classified Classified Location ............................ $700,000

Total: .............................................. $479,390,000

(b) OUTSIDE THE UNITED STATES.—Using

amounts appropriated pursuant to the authorization of appropriations in section

2304(a)(2), the Secretary of the Air Force

may acquire real property and may carry out

military construction projects for the installations and locations outside the United

States, and in the amounts, set forth in the

following table:

Air Force: Outside the United States

Country Installation or location Amount

Germany ............... Spangdahlem Air Base ...................... $8,380,000

Vogelweh Annex ................................. 2,600,000

Greece ................... Araxos Radio Relay Site .................... 1,950,000

Italy ...................... Aviano Air Base ................................. 2,350,000

Ghedi Radio Relay Site ...................... 1,450,000

Turkey ................... Ankara Air Station ............................. 7,000,000

Incirlik Air Base ................................. 4,500,000

Air Force: Outside the United States—Continued

Country Installation or location Amount

United Kingdom .... Lakenheath Royal Air Force Base ...... 1,820,000

Mildenhall Royal Air Force Base ....... 2,250,000

Overseas Classified.Classified Location ............................ 17,100,000

Total: .............................................. $49,400,000

SEC. 2302. FAMILY HOUSING.

(a) CONSTRUCTION AND ACQUISITION.—Using

amounts appropriated pursuant to the authorization of appropriations in section

2304(a)(5)(A), the Secretary of the Air Force

may construct or acquire family housing

units (including land acquisition) at the installations, for the purposes, and in the

amounts set forth in the following table:

Air Force: Family Housing

State/Country Installation Purpose Amount

Alaska ........ Elmendorf Air 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 Gen- eral 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

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 Offi- cer 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

Air Force: Family Housing—Continued

State/Country Installation Purpose Amount

Sheppard Air Force Base Management

Office ........... 500,000

Sheppard Air Force Base Housing Maintenance Facility ................ 600,000

Turkey ........ Incirlik Air Base ............ 150 units ......... 10,146,000

Washington McChord Air Force Base 50 units ........... 9,504,000

Total: ........... $194,555,000

(b) PLANNING AND DESIGN.—Using amounts

appropriated pursuant to the authorization

of appropriations in section 2304(a)(5)(A), the

Secretary of the Air Force may carry out architectural and engineering services and

construction design activities with respect

to the construction or improvement of military family housing units in an amount not

to exceed $8,989,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY

HOUSING UNITS.

Subject to section 2825 of title 10, United

States Code, and using amounts appropriated

pursuant to the authorization of appropriations in section 2304(a)(5)(A), the Secretary

of the Air Force may improve existing military family housing units in an amount not

to exceed $90,959,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS,

AIR FORCE.

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1995, for military

construction, land acquisition, and military

family housing functions of the Department

of the Air Force in the total amount of

$1,727,557,000 as follows:

(1) For military construction projects inside the United States authorized by section

2301(a), $479,390,000.

(2) For military construction projects outside the United States authorized by section

2301(b), $49,400,000.

(3) For unspecified minor construction

projects authorized by section 2805 of title 10,

United States Code, $9,030,000.

(4) For architectural and engineering services and construction design under section

2807 of title 10, United States Code,

$49,021,000.

(5) For military housing functions:

(A) For construction and acquisition, planning and design and improvement of military

family housing and facilities, $294,503,000.

(B) For support of military family housing

(including the functions described in section

2833 of title 10, United States Code),

$846,213,000.

(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.—Notwithstanding the

cost variations authorized by section 2853 of

title 10, United States Code, and any other

cost variation authorized by law, the total

cost of all projects carried out under section

2301 of this Act may not exceed the total

amount authorized to be appropriated under

paragraphs (1) and (2) of subsection (a).

SEC. 2305. RETENTION OF ACCRUED INTEREST

ON FUNDS DEPOSITED FOR CONSTRUCTION OF FAMILY HOUSING,

SCOTT AIR FORCE BASE, ILLINOIS.

(a) RETENTION OF INTEREST.—Section 2310

of the Military Construction Authorization

Act for Fiscal Year 1994 (division B of Public

Law 103–160; 107 Stat. 1874) is amended—

(1) by redesignating subsection (b) as subsection (c); and

(2) by inserting after subsection (a) the following new subsection:

‘‘(b) RETENTION OF INTEREST.—Interest accrued on the funds transferred to the County

pursuant to subsection (a) shall be retained

in the same account as the transferred funds
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1995 T80.11

and shall be available to the County for the

same purpose as the transferred funds.’’.

(b) LIMITATION ON UNITS CONSTRUCTED.—

Subsection (c) of such section, as redesignated by subsection (a)(1), is amended by

adding at the end the following new sentence: ‘‘The number of units constructed

using the transferred funds (and interest accrued on these funds) may not exceed the

number of units of military family housing

authorized for Scott Air Force Base, Illinois,

in section 2302(a) of the Military Construction Authorization Act for Fiscal Year 1993

(division B of Public Law 102–484; 106 Stat.

2595).’’.

(c) EFFECT OF COMPLETION OF CONSTRUCTION.—Such section is further amended by

adding at the end the following new subsection:

‘‘(d) COMPLETION OF CONSTRUCTION.—Upon

the completion of the construction authorized by this section, all funds remaining

from the funds transferred pursuant to subsection (a) and the interest accrued on these

funds shall be deposited in the general fund

of the Treasury of the United States.’’.

TITLE XXIV—DEFENSE AGENCIES

SEC. 2401. AUTHORIZED DEFENSE AGENCIES

CONSTRUCTION AND LAND ACQUISITION PROJECTS.

(a) INSIDE THE UNITED STATES.—Using

amounts appropriated pursuant to the authorization of appropriations in section

2405(a)(1), and, in the case of the project described in section 2405(b)(2), other amounts

appropriated pursuant to authorizations enacted after this Act for that project, the Secretary of Defense may acquire real property

and carry out military construction projects

for the installations and locations inside the

United States, and in the amounts, set forth

in the following table:

Defense Agencies: Inside the United States

Agency/State Installation or location Amount

Ballistic Missile

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

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

Defense Agencies: Inside the United States—Continued

Agency/State Installation or location Amount

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 Re- search.$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 Oper- ations Command

California .............. Naval Air Station, Miramar ............... $5,200,000

Florida .................. Duke Field .......................................... $2,400,000

Eglin Auxiliary Field 9 ........................ $14,150,000

Louisiana .............. Naval Support Activity, New Orleans $730,000

North Carolina ...... Fort Bragg .......................................... $23,800,000

Pennsylvania ........ Olmstead Field, Harrisburg IAP ......... $1,643,000

Virginia ................. Dam Neck ........................................... $6,100,000

Naval Amphibious Base, Little Creek $4,500,000

Total: .............................................. $357,577,000

(b) OUTSIDE THE UNITED STATES.—Using

amounts appropriated pursuant to the authorization of appropriations in section

2405(a)(2), the Secretary of Defense may acquire real property and carry out military

construction projects for the installations

and locations outside the United States, and

in the amounts, set forth in the following

table:

Defense Agencies: Outside the United States

Agency/Country Installation Name Amount

Defense Logistics

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

Defense Agencies: Outside the United States—

Continued

Agency/Country Installation Name Amount

Special Operations Command

Guam .................... Naval Station, Guam ......................... $8,800,000

Total: .............................................. $54,877,000

SEC. 2402. FAMILY HOUSING PRIVATE INVESTMENT.

Using amounts appropriated pursuant to

the authorization of appropriations in section 2405(a)(13)(A), the Secretary of Defense

may enter into agreements to construct, acquire, and improve family housing units (including land acquisition) at or near military

installations, for the purpose of encouraging

private investments, in the amount of

$22,000,000. Amounts appropriated pursuant

to such section may be transferred from the

Department of Defense Family Housing Improvement Fund established under section

2873 of title 10, United States Code, to the

family housing accounts of the military departments for the purpose of encouraging

private investments.

SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY

HOUSING UNITS.

Subject to section 2825 of title 10, United

States Code, and using amounts appropriated

pursuant to the authorization of appropriations in section 2405(a)(13)(A), the Secretary

of Defense may improve existing military

family housing units in an amount not to exceed $3,772,000.

SEC. 2404. ENERGY CONSERVATION PROJECTS.

Using amounts appropriated pursuant to

the authorization of appropriations in section 2405(a)(11), the Secretary of Defense may

carry out energy conservation projects under

section 2865 of title 10, United States Code.

SEC. 2405. AUTHORIZATION OF APPROPRIATIONS,

DEFENSE AGENCIES.

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1995, for military

construction, land acquisition, and military

family housing functions of the Department

of Defense (other than the military departments), in the total amount of $4,692,463,000

as follows:

(1) For military construction projects inside the United States authorized by section

2401(a), $322,574,000.

(2) For military construction projects outside the United States authorized by section

2401(b), $54,877,000.

(3) For military construction projects at

Portsmouth Naval Hospital, Virginia, authorized by section 2401(a) of the Military

Construction Authorization Act for Fiscal

Years 1990 and 1991 (division B of Public Law

101–189; 103 Stat. 1640), $47,900,000.

(4) For military construction projects at

Elmendorf Air Force Base, Alaska, hospital

replacement, authorized by section 2401(a) of

the Military Construction Authorization Act

for Fiscal Year 1993 (division B of Public Law

102–484; 106 Stat. 2599), $28,100,000.

(5) For military construction projects at

Walter Reed Army Institute of Research,

Maryland, hospital replacement, authorized

by section 2401(a) of the Military Construction Authorization Act for Fiscal Year 1993

(division B of Public Law 102–484; 106 Stat.

2599), $27,000,000.

(6) For military construction projects at

Pine Bluff Arsenal, Arkansas, authorized by

section 2401(a) of the Military Construction

Authorization Act for Fiscal Year 1995 (division B of Public Law 103–337; 108 Stat. 3040),

$40,000,000.

(7) For military construction projects at

Umatilla Army Depot, Oregon, authorized by
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section 2401(a) of the Military Construction

Authorization Act for Fiscal Year 1995 (division B of Public Law 103–337; 108 Stat. 3040),

$55,000,000.

(8) For unspecified minor construction

projects under section 2805 of title 10, United

States Code, $23,007,000.

(9) For contingency construction projects

of the Secretary of Defense under section

2804 of title 10, United States Code,

$11,037,000.

(10) For architectural and engineering

services and construction design under section 2807 of title 10, United State Code,

$68,837,000.

(11) For energy conservation projects authorized by section 2404, $50,000,000.

(12) For base closure and realignment activities as authorized by the Defense Base

Closure and Realignment Act of 1990 (part A

of title XXIX of Public Law 101–510; 10 U.S.C.

2687 note), $3,897,892,000.

(13) For military family housing functions:

(A) For construction and acquisition and

improvement of military family housing and

facilities, $25,772,000.

(B) For support of military housing (including functions described in section 2833 of

title 10, United States Code), $40,467,000, of

which not more than $24,874,000 may be obligated or expended for the leasing of military

family housing units worldwide.

(b) LIMITATION OF TOTAL COST OF CONSTRUCTION PROJECTS.—Notwithstanding the

cost variation authorized by section 2853 of

title 10, United States Code, and any other

cost variations authorized by law, the total

cost of all projects carried out under section

2401 of this Act may not exceed—

(1) the total amount authorized to be appropriated under paragraphs (1) and (2) of

subsection (a); and

(2) $35,003,000 (the balance of the amount

authorized under section 2401(a) for the construction of a center of the Defense Finance

and Accounting Service at Columbus, Ohio).

SEC. 2406. MODIFICATION OF AUTHORITY TO

CARRY OUT FISCAL YEAR 1995

PROJECTS.

The table in section 2401 of the Military

Construction Authorization Act for Fiscal

Year 1995 (division B of Public Law 103–337;

108 Stat. 3040), under the agency heading relating to Chemical Weapons and Munitions

Destruction, is amended—

(1) in the item relating to Pine Bluff Arsenal, Arkansas, by striking out ‘‘$3,000,000’’ in

the amount column and inserting in lieu

thereof ‘‘$115,000,000’’; and

(2) in the item relating to Umatilla Army

Depot, Oregon, by striking out ‘‘$12,000,000’’

in the amount column and inserting in lieu

thereof ‘‘$186,000,000’’.

SEC. 2407. LIMITATION ON EXPENDITURES FOR

CONSTRUCTION PROJECT AT

UMATILLA ARMY DEPOT, OREGON.

None of the funds appropriated to the Department of Defense for fiscal year 1996 for

the construction of a chemical munitions incinerator facility at Umatilla Army Depot

may be obligated or expended before March

1, 1996.

TITLE XXV—NORTH ATLANTIC TREATY

ORGANIZATION INFRASTRUCTURE

SEC. 2501. AUTHORIZED NATO CONSTRUCTION

AND LAND ACQUISITION PROJECTS.

The Secretary of Defense may make contributions for the North Atlantic Treaty Organization Infrastructure program as provided in section 2806 of title 10, United States

Code, in an amount not to exceed the sum of

the amount authorized to be appropriated for

this purpose in section 2502 and the amount

collected from the North Atlantic Treaty Organization as a result of construction previously financed by the United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS,

NATO.

Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1995, for contributions by the Secretary of Defense under section 2806 of title

10, United States Code, for the share of the

United States of the cost of projects for the

North Atlantic Treaty Organization Infrastructure program, as authorized by section

2501, in the amount of $161,000,000.

TITLE XXVI—GUARD AND RESERVE

FORCES FACILITIES

SEC. 2601. AUTHORIZED GUARD AND RESERVE

CONSTRUCTION AND LAND ACQUISITION PROJECTS.

There are authorized to be appropriated for

fiscal years beginning after September 30,

1995, for the costs of acquisition, architectural and engineering services, and construction of facilities for the Guard and Reserve

Forces, and for contributions therefor, under

chapter 133 of title 10, United States Code

(including the cost of acquisition of land for

those facilities), the following amounts:

(1) For the Department of the Army—

(A) for the Army National Guard of the

United States, $72,537,000; and

(B) for the Army Reserve, $42,963,000.

(2) For the Department of the Navy, for the

Naval and Marine Corps Reserve, $19,655,000.

(3) For the Department of the Air Force—

(A) for the Air National Guard of the

United States, $118,267,000; and

(B) for the Air Force Reserve, $31,502,000.

SEC. 2602. CORRECTION IN AUTHORIZED USES OF

FUNDS FOR ARMY NATIONAL GUARD

PROJECTS IN MISSISSIPPI.

Amounts appropriated pursuant to the authorization of appropriations in section

2601(1)(A) of the Military Construction Authorization Act for Fiscal Year 1994 (division

B of Public Law 103–160; 107 Stat. 1878) for

the addition or alteration of Army National

Guard Armories at various locations in the

State of Mississippi shall be available for the

addition, alteration, or new construction of

armory facilities and an operation and maintenance shop facility (including the acquisition of land for such facilities) at various locations in the State of Mississippi.

TITLE XXVII—EXPIRATION AND

EXTENSION OF AUTHORIZATIONS

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND

AMOUNTS REQUIRED TO BE SPECIFIED BY LAW.

(a) EXPIRATION OF AUTHORIZATIONS AFTER

THREE YEARS.—Except as provided in subsection (b), all authorizations contained in

titles XXI through XXVI for military construction projects, land acquisition, family

housing projects and facilities, and contributions to the North Atlantic Treaty Organization Infrastructure program (and authorizations of appropriations therefor) shall expire

on the later of—

(1) October 1, 1998; or

(2) the date of the enactment of an Act authorizing funds for military construction for

fiscal year 1999.

(b) EXCEPTION.—Subsection (a) shall not

apply to authorizations for military construction projects, land acquisition, family

housing projects and facilities, and contributions to the North Atlantic Treaty Organization Infrastructure program (and authorizations of appropriations therefor), for which

appropriated funds have been obligated before the later of—

(1) October 1, 1998; or

(2) the date of the enactment of an Act authorizing funds for fiscal year 1999 for military construction projects, land acquisition,

family housing projects and facilities, or

contributions to the North Atlantic Treaty

Organization Infrastructure program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF

CERTAIN FISCAL YEAR 1993

PROJECTS.

(a) EXTENSIONS.—Notwithstanding section

2701 of the Military Construction Authorization Act for Fiscal Year 1993 (division B of

Public Law 102–484; 106 Stat. 2602), authorizations for the projects set forth in the tables

in subsection (b), as provided in section 2101,

2102, 2201, 2301, or 2601 of that Act, shall remain in effect until October 1, 1996, or the

date of the enactment of an Act authorizing

funds for military construction for fiscal

year 1997, whichever is later.

(b) TABLES.—The tables referred to in subsection (a) are as follows:

Army: Extension of 1993 Project Authorizations

State Installation or location Project Amount

Arkansas .... Pine Bluff Arsenal ......... Ammunition 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

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

country

Installation or loca- tion 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
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1995 T80.11

Army Reserve: Extension of 1993 Project

Authorizations—Continued

State Location Project Amount

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

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF

CERTAIN FISCAL YEAR 1992

PROJECTS.

(a) EXTENSIONS.—Notwithstanding section

2701 of the Military Construction Authorization Act for Fiscal Year 1992 (division B of

Public Law 102–190; 105 Stat. 1535), authorizations for the projects set forth in the tables

in subsection (b), as provided in section 2101

or 2601 of that Act and extended by section

2702(a) of the Military Construction Authorization Act for Fiscal Year 1995 (division B of

Public Law 103–337; 108 Stat. 3047), shall remain in effect until October 1, 1996, or the

date of the enactment of an Act authorizing

funds for military construction for fiscal

year 1997, whichever is later.

(b) TABLES.—The tables referred to in subsection (a) are as follows:

Army: Extension of 1992 Project Authorizations

State Installation or location Project Amount

Oregon ....... Umatilla Army Depot ..... Ammunition De- militarization

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

SEC. 2704. EFFECTIVE DATE.

Titles XXI, XXII, XXIII, XXIV, XXV, and

XXVI shall take effect on the later of—

(1) October 1, 1995; or

(2) the date of the enactment of this Act.

TITLE XXVIII—GENERAL PROVISIONS

Subtitle A—Military Construction Program

and Military Family Housing Changes

SEC. 2801. ALTERNATIVE MEANS OF ACQUIRING

AND IMPROVING MILITARY FAMILY

HOUSING AND SUPPORTING FACILITIES FOR THE ARMED FORCES.

(a) FINDINGS AND PURPOSE.—(1) Congress

finds the following:

(A) Adequate military family housing is

essential to the retention of well-trained and

professional members of the Armed Forces.

(B) Current military family housing is in

many circumstances substandard, inadequately maintained, or obsolete. Of the

more than 375,000 military families living on

military installations, two-thirds of such

families reside in unsuitable quarters.

(C) Traditional military construction techniques are frequently lengthy and more expensive than commercial methods. At current appropriation levels, modernization of

military family housing located on military

installations could require more than 30

years to accomplish.

(D) A combination of private housing capital and commercial construction techniques

could help to alleviate the shortage of suitable military family housing in a far more

timely and cost effective manner.

(2) It is the purpose of this section to obtain new and improved military family housing and ancillary supporting facilities for

the Armed Forces using private capital and

expertise.

(b) ALTERNATIVE PROVISION OF HOUSING AND

FACILITIES.—(1) Chapter 169 of title 10,

United States Code, is amended by adding at

the end the following new subchapter:

‘‘SUBCHAPTER IV—ALTERNATIVE PROVISION OF MILITARY FAMILY HOUSING

‘‘Sec.

‘‘2871. Definitions.

‘‘2872. General limitations and authorities.

‘‘2873. Department of Defense Family Housing Improvement Fund.

‘‘2875. Housing finance and acquisition authorities.

‘‘2876. Expiration of authority.

‘‘§ 2871. Definitions

‘‘In this subchapter:

‘‘(1) The term ‘construction’ means the

construction of additional units of military

family housing and ancillary supporting facilities or the replacement or renovation of

existing units or ancillary supporting facilities.

‘‘(2) The term ‘ancillary supporting facilities’ means facilities related to military

family housing, such as day care centers,

community centers, housing offices, maintenance complexes, tot lots, and parks. Such

term does not include commercial facilities

that could not otherwise be constructed

using funds appropriated to the Department

of Defense.

‘‘(3) The term ‘contract’ includes any contract, lease, or other agreement entered into

under the authority of this subchapter.

‘‘(4) The term ‘Fund’ means the Department of Defense Family Housing Improvement Fund established under section 2873(a)

of this title.

‘‘§ 2872. General limitations and authorities

‘‘(a) USE OF AUTHORITIES.—The Secretary

concerned may use the authorities provided

by this subchapter, singly or in conjunction

with other authorities provided under this

chapter, to help meet the military family

housing needs of members of the armed

forces and the dependents of such members

at military installations at which there is a

shortage of suitable housing for members

and their dependents.

‘‘(b) TERM.—Subject to section 2873(d)(2) of

this title, a contract entered into under this

subchapter may be for such term as the Secretary concerned considers to be in the best

interests of the United States.

‘‘(c) PHASED OCCUPANCY.—A contract under

this subchapter may provide for phased occupancy of completed family housing units

under one or more interim leases during the

period of the construction or renovation of

the housing units. In no case shall any such

interim lease extend beyond the construction or renovation period.

‘‘(d) UNIT SIZE AND TYPE.—Section 2826 of

this title shall not apply to military family

housing units acquired or constructed under

this subchapter, except that room and floor

area size of such housing units should generally be comparable to private sector housing available in the same locality. When acquiring existing family housing in lieu of

construction under section 2824 of this title,

the Secretary concerned may vary the number of types of units to be acquired as long as

the total number of units is substantially

the same as authorized by law.

‘‘(e) LOCATION.—The Secretary concerned

may use the authorities provided under this

subchapter to acquire or construct military

family housing units and ancillary supporting facilities in the United States, the

Commonwealth of Puerto Rico, and in any

territory or possession of the United States.

‘‘(f) NOTIFICATION REQUIRED FOR CONTRACTS.—The Secretary concerned may not

enter into a contract under this subchapter

until after the end of the 21-day period beginning on the date the Secretary concerned

submits to the appropriate committees of

Congress written notice of the nature and

terms of the contract.

‘‘(g) ASSIGNMENTS.—The Secretary concerned may assign members of the armed

forces to any military family housing obtained using the authorities provided in this

subchapter in accordance with section 403(b)

of title 37.

‘‘(h) ALLOTMENTS.—The Secretary concerned may require a member of the armed

forces to pay rent by allotment as a condition of occupying military family housing

obtained using the authorities provided in

this subchapter.

‘‘(i) SUPPORTING FACILITIES.—Any contract

entered into under this subchapter may include provisions for the construction or acquisition of ancillary supporting facilities.

‘‘(j) AUTHORITY TO LEASE OR SELL LAND,

HOUSING, AND SUPPORTING FACILITIES.—(1)

The Secretary concerned may lease or sell

land, housing, and ancillary supporting facilities under the jurisdiction of the Secretary for the purpose of providing additional military family housing or improving

existing military family housing under this

subchapter, except that the authority to

lease or sell real property under this subchapter shall not extend to property located

at a military installation approved for closure.

‘‘(2) A sale or lease under this subsection

may be made for such consideration and

upon such terms and conditions as the Secretary concerned shall determine to be consistent with the purposes of this subchapter

and the public interest. The acreage and

legal description of any property leased or

conveyed under this subsection shall be determined by a survey satisfactory to the Secretary concerned.

‘‘(3) Section 2667 of this title, the Federal

Property and Administrative Services Act of

1949 (40 U.S.C. 471), section 501 of the Stewart

B. McKinney Homeless Assistance Act (42

U.S.C. 11411), and section 321 of the Act of

June 30, 1932 (47 Stat. 412) shall not apply to

leases and sales under this subsection.

‘‘(4) As part or all of the consideration for

the sale or lease of property under this subsection, the Secretary concerned shall require an ancillary agreement under which

the person receiving the property agrees to

give priority to military members and their

dependents in the leasing of existing or new

housing units under the control or provided

by the person. Such agreements may provide

for the payment by the Secretary concerned

of security or damage deposits.

‘‘§ 2873. Department of Defense Family Housing Improvement Fund

‘‘(a) ESTABLISHMENT.—There is hereby established on the books of the Treasury an ac-
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count to be known as the Department of Defense Family Housing Improvement Fund,

which shall be administered by the Secretary

of Defense as a single account. Amounts in

the Fund shall be available without fiscal

year limitation.

‘‘(b) DEPOSITS.—There shall be deposited

into the Fund the following:

‘‘(1) Amounts authorized for and appropriated into the Fund.

‘‘(2) Subject to subsection (c), any amounts

that the Secretary of Defense may transfer

to the Fund from amounts appropriated to

the Department of Defense for construction

of military family housing.

‘‘(3) Proceeds received from the conveyance or lease of real property under section

2872(j) of this title, income from operations

conducted under this subchapter, including

refunds of deposits, and any return of capital

or return on investments entered into under

this subchapter.

‘‘(c) NOTIFICATION REQUIRED FOR TRANSFERS.—A transfer of appropriated amounts

to the Fund under subsection (b)(2) may be

made only after the end of the 30-day period

beginning on the date the Secretary of Defense submits written notice of, and justification for, the transfer to the appropriate

committees of Congress.

‘‘(d) USE OF FUNDS.—(1) In such total

amount as is provided in advance in appropriation Acts, the Secretary of Defense may

use amounts in the Fund for alternative

means of financing military family housing

and ancillary supporting facilities as authorized in this subchapter.

‘‘(2) The Secretary may not enter into a

contract under this subchapter unless the

Fund contains sufficient amounts, as of the

time the contract is entered into, to satisfy

the total obligations to be incurred by the

United States under the contract.

‘‘(3) The total value in budget authority of

all contracts and investments undertaken

using the authorities provided in the subchapter shall not exceed $1,000,000,000.

‘‘(e) LOANS AND LOAN GUARANTEES.—Loans

and loan guarantees may be entered into

under this subchapter only to the extent

that appropriations of budget authority to

cover their costs (as defined in section 502(5)

of the Federal Credit Reform Act of 1990 (2

U.S.C. 661a(5))) are made in advance, or authority is otherwise provided in appropriations Acts.

‘‘(f) ANNUAL REPORT.—The Secretary of Defense shall submit to the appropriate committees of Congress an annual report detailing the expenditures from and deposits into

the Fund during the preceding year and the

utilization and effectiveness of the authorities provided by this subchapter. The Secretary shall submit the report at the same

time that the President submits the budget

to Congress under section 1105 of title 31.

‘‘§ 2875. Housing finance and acquisition authorities

‘‘(a) GUARANTEES.—(1) The Secretary concerned may enter into contracts that provide

for guarantees, insurance, or other contingent payments to owners, mortgagors, or assignees of housing units and ancillary supporting facilities that are made available for

use by members of the armed forces.

‘‘(2) Contingencies under which payments

may be made under such a contract include

the following:

‘‘(A) A failure to pay interest or principal

on mortgages, generally or as a result of a

base closure or realignment, a reduction in

force, an extended deployment of assigned

forces, or similar contingencies.

‘‘(B) A failure to achieve specified occupancy levels of, or rental income from, housing units covered by a contract.

‘‘(3) Such contracts may be on such terms

and conditions as the Secretary concerned

considers necessary or desirable to induce

the provision of housing and ancillary supporting facilities, whether by acquisition or

construction, for use by members of the

armed forces, and to protect the financial interests of the United States.

‘‘(b) LEASES.—The Secretary concerned

may enter into a contract for the lease of

housing units to be acquired or constructed

on or near a military installation. Such a

contract may provide for the owner of the

property to operate and maintain the facilities.

‘‘(c) DIFFERENTIAL PAYMENTS.—In entering

into contracts under this subchapter, the

Secretary concerned may make a differential

payment in addition to rental payments

made by individual members.

‘‘(d) INVESTMENTS.—(1) The Secretary concerned may make investments in nongovernmental entities involved in the acquisition

or construction of housing and ancillary supporting facilities on or near a military installation for such consideration and upon

such terms and conditions as the Secretary

concerned determines to be consistent with

the purposes of this subchapter and the public interest.

‘‘(2) Such investments may take the form

of limited partnership interests, stock, debt

instruments, or a combination thereof.

‘‘(3) The investment made by the Secretary

concerned in an acquisition or construction

project under this subsection, whether the

investment is in the form of cash, land or

buildings under section 2872(j) of this title,

or other form, may not exceed 35 percent of

the capital costs of the acquisition or construction project.

‘‘(e) COLLATERAL INCENTIVE AGREEMENTS.—

The Secretary concerned may also enter into

collateral incentive agreements in connection with investments made under subsection (d) to ensure that a suitable preference will be afforded members of the

armed forces to lease or purchase, at affordable rates, a reasonable number of the housing units covered by the investment contract.

‘‘§ 2876. Expiration of authority

‘‘The authority of the Secretaries concerned to enter into contracts and partnerships and to make investments under this

subchapter shall expire on September 30,

2000.’’.

(2) The table of subchapters at the beginning of chapter 169 of title 10, United States

Code, is amended by inserting after the item

relating to subchapter III the following new

item:

‘‘IV. Alternative Provision of Military

Family Housing .............................. 2871’’.

SEC. 2802. INCLUSION OF OTHER ARMED FORCES

IN NAVY PROGRAM OF LIMITED

PARTNERSHIPS WITH PRIVATE DEVELOPERS FOR MILITARY HOUSING.

(a) EXPANDED AUTHORITY FOR HOUSING

PARTNERSHIPS.—(1) Subchapter IV of chapter

169 of title 10, United States Code, as added

by section 2801, is amended by inserting after

section 2873 the following new section:

§ ‘‘2874. Limited partnerships with private developers of housing

‘‘(a) LIMITED PARTNERSHIPS.—In order to

meet the housing requirements of members

of the armed forces, and the dependents of

such members, at a military installation described in section 2872(a) of this title, the

Secretary concerned may enter into a limited partnership with one or more private developers to encourage the construction of

housing and ancillary supporting facilities

within commuting distance of the installation. Section 2875(d) of this title shall apply

with respect to the investments the Secretary concerned may make toward development costs under a limited partnership.

‘‘(b) COLLATERAL INCENTIVE AGREEMENTS.—

The Secretary concerned may also enter into

collateral incentive agreements with private

developers who enter into a limited partnership under subsection (a) to ensure that,

where appropriate—

‘‘(1) a suitable preference will be afforded

members of the armed forces in the lease or

purchase, as the case may be, of a reasonable

number of the housing units covered by the

limited partnership; or

‘‘(2) the rental rates or sale prices, as the

case may be, for some or all of such units

will be affordable for such members.

‘‘(c) SELECTION OF INVESTMENT OPPORTUNITIES.—(1) The Secretary concerned shall use

publicly advertised, competitively bid or

competitively negotiated, contracting procedures, as provided in chapter 137 of this title,

to enter into limited partnerships under subsection (a).

‘‘(2) When a decision is made by the Secretary concerned to enter into a limited

partnership under subsection (a), the Secretary shall submit a report in writing to the

appropriate committees of Congress on that

decision. Each such report shall include the

justification for the limited partnership, the

terms and conditions of the limited partnership, a description of the development costs

for projects under the limited partnership,

and a description of the share of such costs

to be incurred by the Secretary concerned.

The Secretary concerned may then enter

into the limited partnership only after the

end of the 21-day period beginning on the

date the report is received by such committees.

‘‘(d) HOUSING INVESTMENT BOARDS.—(1)

Each Secretary concerned shall establish a

housing investment board, which shall have

the duties—

‘‘(A) of advising the Secretary concerned

regarding those proposed limited partnerships under subsection (a), if any, that are financially and otherwise sound investments

for meeting the objectives of this section;

‘‘(B) of administering amounts in the Account established under section 2873 of this

title that are made available to the Secretary concerned to carry out this section;

and

‘‘(C) of performing such other tasks as the

Secretary concerned determines to be necessary and appropriate to assist the Secretary to carry out the duties of the Secretary under this section.

‘‘(2) A housing investment board shall be

composed of seven members appointed for a

two-year term by the Secretary concerned.

Among such members, the Secretary concerned may appoint two persons from the

private sector who have knowledge and experience in the financing and the construction

of housing. The Secretary concerned shall

designate one of the members as chairperson.

‘‘(3) Members of a housing investment

board, other than those members regularly

employed by the Federal Government, may

be paid while attending meetings of the

board or otherwise serving at the request of

the Secretary concerned, compensation at a

rate equal to the daily equivalent of the minimum annual rate of basic pay payable for

level IV of the Executive Schedule under section 5315 of title 5 for each day (including

travel time) during which the member is engaged in the actual performance of duties

vested in the board. Members shall receive

travel expenses, including per diem in lieu of

subsistence, in accordance with sections 5702

and 5703 of title 5.

‘‘(4) The Federal Advisory Committee Act

(5 U.S.C. App.) shall not apply to the housing

investment boards.

‘‘(5) The housing investment boards shall

terminate on September 30, 2000.’’.

(2) The table of sections at the beginning of

such subchapter is amended by inserting
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1995 T80.11

after the item relating to section 2873 the

following new item:

‘‘2874. Limited partnerships with private developers of housing.’’.

(b) PROCEEDS FROM PARTICIPATION IN PARTNERSHIPS.—Section 2873(b) of title 10, United

States Code, as added by section 2801, is

amended by adding at the end the following

new paragraph:

‘‘(4) Proceeds received by the Secretary

concerned from the repayment of investments or profits on investments of the Secretary under section 2874(a) of this title.’’.

(c) CONFORMING REPEAL.—(1) Section 2837

of title 10, United States Code, is repealed.

The repeal of such section shall not be construed to affect the validity or terms of any

limited partnership or collateral incentive

agreement entered into by the Secretary of

the Navy under such section before the date

of the enactment of this Act. Amounts in the

Navy Housing Investment Account shall be

transferred to the Department of Defense

Family Housing Improvement Fund established under section 2873 of such title, as

added by section 2801.

(2) The table of sections at the beginning of

subchapter II of chapter 169 of title 10,

United States Code, is amended by striking

out the item relating to section 2837.

SEC. 2803. SPECIAL UNSPECIFIED MINOR CONSTRUCTION THRESHOLDS FOR

PROJECTS TO CORRECT LIFE,

HEALTH, AND SAFETY DEFICIENCIES

AND CLARIFICATION OF UNSPECIFIED MINOR CONSTRUCTION AUTHORITY.

(a) SPECIAL THRESHOLDS.—Section 2805 of

title 10, United States Code, is amended—

(1) in subsection (a)(1), by adding at the

end the following new sentence: ‘‘However, if

the military construction project is intended

solely to correct a life, health, or safety deficiency, a minor military construction

project may have an approved cost equal to

or less than $3,000,000.’’; and

(2) in subsection (c)(1), by striking out

‘‘not more than $300,000.’’ and inserting in

lieu thereof the following: ‘‘not more than—

‘‘(A) $1,000,000, in the case of an unspecified

military construction project intended solely to correct a life, health, or safety deficiency; or

‘‘(B) $300,000, in the case of other unspecified military construction projects.’’.

(b) DESCRIPTION OF MINOR CONSTRUCTION.—

Subsection (a)(1) of such section is further

amended by striking out ‘‘(1) that is for a

single undertaking at a military installation, and (2)’’.

SEC. 2804. DISPOSITION OF AMOUNTS RECOVERED AS A RESULT OF DAMAGE TO

REAL PROPERTY.

(a) IN GENERAL.—Chapter 165 of title 10,

United States Code, is amended by inserting

after section 2781 the following new section:

‘‘§ 2782. Damage to real property: disposition

of amounts recovered

‘‘Except as provided in section 2775 of this

title, amounts recovered for damage caused

to real property under the jurisdiction of the

Secretary of a military department or, with

respect to the Defense Agencies, under the

jurisdiction of the Secretary of Defense shall

be credited to the account available for the

repair or replacement of the real property at

the time of recovery. In such amounts as are

provided in advance in appropriation Acts,

amounts so credited shall be available for

use for the same purposes and under the

same circumstances as other funds in the account.’’.

(b) CLERICAL AMENDMENT.—The table of

sections at the beginning of such chapter is

amended by inserting after the item relating

to section 2781 the following new item:

‘‘2782. Damage to real property: disposition

of amounts recovered.’’.

SEC. 2805. RENTAL OF FAMILY HOUSING IN FOREIGN COUNTRIES.

Section 2828(e) of title 10, United States

Code, is amended—

(1) in paragraph (1)—

(A) by striking out ‘‘300 units’’ in the first

sentence and inserting in lieu thereof ‘‘450

units’’; and

(B) by striking out ‘‘220 such units’’ in the

second sentence and inserting in lieu thereof

‘‘350 such units’’; and

(2) in paragraph (2), by striking out ‘‘300

units’’ and inserting in lieu thereof ‘‘450

units’’.

SEC. 2806. PILOT PROGRAM TO PROVIDE INTEREST RATE BUY DOWN AUTHORITY

ON LOANS FOR HOUSING WITHIN

HOUSING SHORTAGE AREAS AT

MILITARY INSTALLATIONS.

(a) SHORT TITLE.—This section may be

cited as the ‘‘Military Housing Assistance

Act of 1995’’.

(b) MORTGAGE ASSISTANCE PAYMENT AUTHORITY OF THE SECRETARY OF VETERANS AFFAIRS.—(1) Chapter 37 of title 38, United

States Code, is amended by inserting after

section 3707 the following:

‘‘§ 3708. Authority to buy down interest rates:

pilot program

‘‘(a) In order to enable the purchase of

housing in areas where the supply of suitable

military housing is inadequate, the Secretary may conduct a pilot program under

which the Secretary may make periodic or

lump sum assistance payments on behalf of

an eligible veteran for the purpose of buying

down the interest rate on a loan to that veteran that is guaranteed under this chapter

for a purpose described in paragraph (1), (2),

(3), (6), or (10) of section 3710(a).

‘‘(b) An individual is an eligible veteran for

the purposes of this section if—

‘‘(1) the individual is a veteran, as defined

in section 3701(b)(4) of this title, or is on active Guard and Reserve duty, as defined by

section 101(d) of title 10;

‘‘(2) the individual submits an application

for a loan guaranteed under this chapter

within one year of an assignment of the individual to duty at a military installation in

the United States designated by the Secretary of Defense as a housing shortage area;

‘‘(3) at the time the loan referred to in subsection (a) is made, the individual is an enlisted member, warrant officer, or an officer

(other than a warrant officer) at a pay grade

of O–3 or below;

‘‘(4) the individual has not previously used

any of the individual’s entitlement to housing loan benefits under this chapter; and

‘‘(5) the individual receives comprehensive

prepurchase counseling from the Secretary

(or the designee of the Secretary) before

making application for a loan guaranteed

under this chapter.

‘‘(c) Loans with respect to which the Secretary may exercise the buy down authority

under subsection (a) shall—

‘‘(1) provide for a buy down period of not

more than three years in duration;

‘‘(2) specify the maximum and likely

amounts of increases in mortgage payments

that the loans would require; and

‘‘(3) be subject to such other terms and

conditions as the Secretary may prescribe by

regulation.

‘‘(d) The Secretary shall promulgate underwriting standards for loans for which the interest rate assistance payments may be

made under subsection (a). Such standards

shall be based on the interest rate for the

second year of the loan.

‘‘(e) The Secretary or lender shall provide

comprehensive prepurchase counseling to eligible veterans explaining the features of interest rate buy downs under subsection (a),

including a hypothetical payment schedule

that displays the increases in monthly payments to the mortgagor over the first five

years of the mortgage term. For the purposes of this subsection, the Secretary may

assign personnel to military installations referred to in subsection (b)(2).

‘‘(f) There is authorized to be appropriated

$3,000,000 annually to carry out this section.

‘‘(g) The Secretary may not guarantee a

loan under this chapter after September 30,

1998, on which the Secretary is obligated to

make payments under this section.’’.

(2) The table of sections at the beginning of

chapter 37 of title 38, United States Code, is

amended by inserting after the item relating

to section 3707 to following new item:

‘‘3708. Authority to buy down interest rates:

pilot program.’’.

(c) AUTHORITY OF SECRETARY OF DEFENSE.—

(1) REIMBURSEMENT FOR BUY DOWN COSTS.—

The Secretary of Defense shall reimburse the

Secretary of Veterans Affairs for amounts

paid by the Secretary of Veterans Affairs to

mortgagees under section 3708 of title 38,

United States Code.

(2) DESIGNATION OF HOUSING SHORTAGE

AREAS.—For purposes of section 3708 of title

38, United States Code, the Secretary of Defense may designate as a housing shortage

area a military installation in the United

States at which the Secretary determines

there is a shortage of suitable housing to

meet the military family needs of members

of the Armed Forces and the dependents of

such members.

(3) REPORT.—Not later than six months

after September 30, 1998, the Secretary shall

submit a report to Congress regarding the effectiveness in providing housing to members

of the Armed Forces and their dependents

through the provisions of this subsection and

section 3708 of title 38, United States Code.

(4) EARMARK.—Of the amount provided in

section 2405(a)(13)(B), $10,000,000 for fiscal

year 1996 shall be available to carry out this

subsection.

(5) SUNSET.—This subsection shall not

apply with respect to housing loans guaranteed after September 30, 1998, for which assistance payments are paid under section

3708 of title 38, United States Code.

Subtitle B—Base Closure and Realignment

SEC. 2811. AUTHORITY TO TRANSFER PROPERTY

AT MILITARY INSTALLATIONS TO BE

CLOSED TO PERSONS WHO CONSTRUCT OR PROVIDE MILITARY

FAMILY HOUSING.

(a) BASE CLOSURES UNDER 1988 ACT.—Section 204 of the Defense Authorization

Amendments and Base Closure and Realignment Act (title II of Public Law 100–526; 10

U.S.C. 2687 note) is amended by adding at the

end the following new subsection:

‘‘(e) TRANSFER AUTHORITY IN CONNECTION

WITH CONSTRUCTION OR PROVISION OF MILITARY FAMILY HOUSING.—(1) Subject to paragraph (2), the Secretary may enter into an

agreement to transfer by deed real property

or facilities located at an installation closed

or to be closed under this title with any person who agrees, in exchange for the real

property or facilities, to transfer to the Secretary housing units that are constructed or

provided by the person and located at or near

a military installation at which there is a

shortage of suitable housing to meet the requirements of members of the Armed Forces

and their dependents. The Secretary may not

select real property for transfer under this

paragraph if the property is identified in the

redevelopment plan for the installation as

items essential to the reuse or redevelopment of the installation.

‘‘(2) A transfer of real property or facilities

may be made under paragraph (1) only if—

‘‘(A) the fair market value of the housing

units to be received by the Secretary in ex-
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T80.11 JUNE 15

change for the property or facilities to be

transferred is equal to or greater than the

fair market value of such property or facilities, as determined by the Secretary; or

‘‘(B) the recipient of the property or facilities agrees to pay to the Secretary the difference between the fair market values if the

fair market value of the housing units is

lower than the fair market value of the property or facilities to be transferred.

‘‘(3) Notwithstanding section 207(a)(7), the

Secretary shall deposit funds received under

paragraph (2)(B) in the Department of Defense Family Housing Improvement Fund established under section 2873(a) of title 10,

United States Code.

‘‘(4) The Secretary shall submit to the appropriate committees of Congress a report

describing each agreement proposed to be entered into under paragraph (1), including the

consideration to be received by the United

States under the agreement. The Secretary

may not enter into the agreement until the

end of the 21-day period beginning on the

date the appropriate committees of Congress

receive the report regarding the agreement.

‘‘(5) The Secretary may require any additional terms and conditions in connection

with an agreement authorized by this subsection as the Secretary considers appropriate to protect the interests of the United

States.’’.

(b) BASE CLOSURES UNDER 1990 ACT.—Section 2905 of the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX

of Public Law 101–510; 10 U.S.C. 2687 note) is

amended by adding at the end the following

new subsection:

‘‘(f) TRANSFER AUTHORITY IN CONNECTION

WITH CONSTRUCTION OR PROVISION OF MILITARY FAMILY HOUSING.—(1) Subject to paragraph (2), the Secretary may enter into an

agreement to transfer by deed real property

or facilities located at an installation closed

or to be closed under this part with any person who agrees, in exchange for the real

property or facilities, to transfer to the Secretary housing units that are constructed or

provided by the person and located at or near

a military installation at which there is a

shortage of suitable housing to meet the requirements of members of the Armed Forces

and their dependents. The Secretary may not

select real property for transfer under this

paragraph if the property is identified in the

redevelopment plan for the installation as

items essential to the reuse or redevelopment of the installation.

‘‘(2) A transfer of real property or facilities

may be made under paragraph (1) only if—

‘‘(A) the fair market value of the housing

units to be received by the Secretary in exchange for the property or facilities to be

transferred is equal to or greater than the

fair market value of such property or facilities, as determined by the Secretary; or

‘‘(B) the recipient of the property or facilities agrees to pay to the Secretary the difference between the fair market values if the

fair market value of the housing units is

lower than the fair market value of the property or facilities to be transferred.

‘‘(3) Notwithstanding section 2906(a)(2), the

Secretary shall deposit funds received under

paragraph (2)(B) in the Department of Defense Family Housing Improvement Fund established under section 2873(a) of title 10,

United States Code.

‘‘(4) The Secretary shall submit to the appropriate committees of Congress a report

describing each agreement proposed to be entered into under paragraph (1), including the

consideration to be received by the United

States under the agreement. The Secretary

may not enter into the agreement until the

end of the 30-day period beginning on the

date the appropriate committees of Congress

receive the report regarding the agreement.

‘‘(5) The Secretary may require any additional terms and conditions in connection

with an agreement authorized by this subsection as the Secretary considers appropriate to protect the interests of the United

States.’’.

(c) REGULATIONS.—Not later than nine

months after the date of the enactment of

this Act, the Secretary of Defense shall prescribe any regulations necessary to carry out

subsection (e) of section 204 of the Defense

Authorization Amendments and Base Closure and Realignment Act (title II of Public

Law 100–526; 10 U.S.C. 2687 note), as added by

subsection (a), and subsection (f) of section

2905 of the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of

Public Law 101–510; 10 U.S.C. 2687 note), as

added by subsection (b).

SEC. 2812. DEPOSIT OF PROCEEDS FROM LEASES

OF PROPERTY LOCATED AT INSTALLATIONS BEING CLOSED OR REALIGNED.

(a) EXCEPTION TO EXISTING REQUIREMENTS.—Section 2667(d) of title 10, United

States Code, is amended—

(1) in paragraph (1)(A)(ii), by inserting ‘‘or

(5)’’ after ‘‘paragraph (4)’’; and

(2) by adding at the end the following new

paragraph:

‘‘(5) Money rentals received by the United

States from a lease under subsection (f) shall

be deposited into the relevant account established under section 207(a) of the Defense Authorization Amendments and Base Closure

and Realignment Act (Public Law 100–526; 10

U.S.C. 2687 note) or section 2906(a) of the Defense Base Closure and Realignment Act of

1990 (part A of title XXIX of Public Law 101–

510; 10 U.S.C. 2687 note).’’.

(b) CORRESPONDING AMENDMENTS TO BASE

CLOSURE LAWS.—(1) Section 207(a) of the Defense Authorization Amendments and Base

Closure and Realignment Act (Public Law

100–526; 10 U.S.C. 2687 note) is amended—

(A) in paragraph (2)—

(i) by striking out ‘‘and’’ at the end of subparagraph (B);

(ii) by striking out the period at the end of

subparagraph (C) and inserting in lieu thereof ‘‘; and’’; and

(iii) by adding at the end the following new

subparagraph:

‘‘(D) proceeds from leases of property

under section 2667(f) of title 10, United States

Code, at a military installation to be closed

or realigned under this title.’’; and

(B) in paragraph (7), by striking out

‘‘transfer or disposal’’ and inserting in lieu

thereof ‘‘lease, transfer, or disposal’’.

(2) Section 2906(a)(2) of the Defense Base

Closure and Realignment Act of 1990 (part A

of title XXIX of Public Law 101–510; 10 U.S.C.

2867 note) is amended—

(A) in subparagraph (C), by striking out

‘‘transfer or disposal’’ and inserting in lieu

thereof ‘‘lease, transfer, or disposal’’; and

(B) in subparagraph (D), by striking out

‘‘transfer or disposal’’ and inserting in lieu

thereof ‘‘lease, transfer, or disposal’’.

SEC. 2813. AGREEMENTS FOR CERTAIN SERVICES

AT INSTALLATIONS BEING CLOSED.

(a) CLOSURES UNDER 1988 ACT.—Section

204(b)(8) of the Defense Authorization

Amendments and Base Closure and Realignment Act (Public Law 100–526; 10 U.S.C. 2687

note) is amended by striking out subparagraph (A) and inserting in lieu thereof the

following new subparagraph:

‘‘(A) Subject to subparagraph (C), the Secretary may enter into agreements (including

contracts, cooperative agreements, or other

arrangements for reimbursement) with local

governments for the provision of police or security services, fire protection services, airfield operation services, or other community

services by such governments at military installations to be closed under this title if the

Secretary determines that the provision of

such services under such an agreement is in

the best interests of the Department of Defense.’’.

(b) CLOSURES UNDER 1990 ACT.—Section

2905(b)(8) of the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX

of Public Law 101–510; 10 U.S.C. 2867 note) is

amended by striking out subparagraph (A)

and inserting in lieu thereof the following

new subparagraph:

‘‘(A) Subject to subparagraph (C), the Secretary may enter into agreements (including

contracts, cooperative agreements, or other

arrangements for reimbursement) with local

governments for the provision of police or security services, fire protection services, airfield operation services, or other community

services by such governments at military installations to be closed under this part if the

Secretary determines that the provision of

such services under such an agreement is in

the best interests of the Department of Defense.’’.

SEC. 2814. REMOVAL OF BASE CLOSURE PROPERTIES FROM APPLICATION OF SECTION 501 OF THE STEWART B.

MCKINNEY HOMELESS ASSISTANCE

ACT.

(a) CLOSURES UNDER 1988 ACT.—(1) Section

204(b) of the Defense Authorization Amendments and Base Closure and Realignment

Act (Public Law 100–526; 10 U.S.C. 2687 note)

is amended by striking out paragraph (6) and

inserting in lieu thereof the following new

paragraph:

‘‘(6) Section 501 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411)

shall not apply with respect to the transfer

or disposal of real property located at military installations closed or realigned under

this title.’’.

(b) CLOSURES UNDER 1990 ACT.—(1) Section

2905(b) of the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX

of Public Law 101–510; 10 U.S.C. 2687 note) is

amended by striking out paragraphs (6) and

(7) and inserting in lieu thereof the following

new paragraph:

‘‘(7) Section 501 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411)

shall not apply with respect to the transfer

or disposal of real property located at military installations closed or realigned under

this part.’’.

Subtitle C—Land Conveyances Generally

SEC. 2821. TRANSFER OF JURISDICTION, FORT

SAM HOUSTON, TEXAS.

(a) TRANSFER OF LAND FOR NATIONAL CEMETERY.—The Secretary of the Army may

transfer, without reimbursement, to the administrative jurisdiction of the Secretary of

Veterans Affairs a parcel of real property

(including any improvements thereon) consisting of approximately 53 acres and comprising a portion of Fort Sam Houston,

Texas.

(b) USE OF LAND.—The Secretary of Veterans Affairs shall use the real property

transferred under subsection (a) as a national cemetery under chapter 24 of title 38,

United States Code.

(c) RETURN OF UNUSED LAND.—If the Secretary of Veterans Affairs determines that

any portion of the real property transferred

under subsection (a) is not needed for use as

a national cemetery, the Secretary of Veterans Affairs shall return such portion to the

administrative jurisdiction of the Secretary

of the Army.

(d) LEGAL DESCRIPTION.—The exact acreage

and legal description of the real property to

be transferred under this section shall be determined by surveys that are satisfactory to

the Secretary of the Army. The cost of such

surveys shall be borne by the Secretary of

Veterans Affairs.

(e) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary of the Army may require such

additional terms and conditions in connection with the transfer under this section as

the Secretary of the Army considers appro-
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priate to protect the interests of the United

States.

SEC. 2822. LAND ACQUISITION OR EXCHANGE,

SHAW AIR FORCE BASE, SUMTER,

SOUTH CAROLINA.

(a) LAND ACQUISITION.—By means of an exchange of property, acceptance as a gift, or

other means that does not require the use of

appropriated funds, the Secretary of the Air

Force may acquire all right, title, and interest in and to a parcel of real property (together with any improvements thereon) consisting of approximately 1,100 acres and located adjacent to the eastern end of Shaw

Air Force Base, South Carolina, and extending to Stamey Livestock Road in Sumter

County, South Carolina.

(b) LAND EXCHANGE AUTHORIZED.—For purposes of acquiring the real property described in subsection (a), the Secretary may

participate in a land exchange and convey all

right, title, and interest of the United States

in and to a parcel of real property in the possession of the Air Force if—

(1) the Secretary determines that the land

exchange is in the best interests of the Air

Force; and

(2) the fair market value of the Air Force

parcel to be conveyed does not exceed the

fair market value of the parcel to be acquired.

(c) DETERMINATIONS OF FAIR MARKET

VALUE.—The Secretary shall determine the

fair market value of the parcels of real property to be conveyed pursuant to subsections

(a) and (b). Such determinations shall be

final.

(d) DESCRIPTIONS OF PROPERTY.—The exact

acreage and legal descriptions of the parcels

of real property to be conveyed pursuant to

subsections (a) and (b) shall be determined

by surveys that are satisfactory to the Secretary.

(e) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

acquisition under subsection (a) or conveyance under subsection (b) as the Secretary

considers appropriate to protect the interests of the United States.

(f) REVERSION OF GIFT CONVEYANCE.—If the

Secretary acquires the real property described in subsection (a) by way of gift, the

Secretary may accept in the deed of conveyance terms or conditions that require that

the land be reconveyed to the donor, or the

heirs of the donor, if Shaw Air Force Base

ceases operations and is closed.

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

(a) TRANSFER AUTHORIZED.—Notwithstanding section 2854 of the Military Construction Authorization Act for Fiscal Year

1993 (division B of Public Law 102–484; 106

Stat. 2626), the Secretary of the Navy may

transfer, without reimbursement, to the Secretary of Veterans Affairs a parcel of real

property consisting of approximately 150

acres located adjacent to the Calverton National Cemetery, Calverton, New York, and

comprising a portion of the buffer zone of the

Naval Weapons Industrial Reserve Plant,

Calverton.

(b) USE OF PROPERTY.—The Secretary of

Veterans Affairs shall use the real property

transferred under subsection (a) as an addition to the Calverton National Cemetery and

administer such real property pursuant to

chapter 24 of title 38, United States Code.

(c) SURVEYS.—The cost of any surveys necessary for the transfer of jurisdiction of the

real property described in subsection (a)

from the Secretary of the Navy to the Secretary of Veterans Affairs shall be borne by

the Secretary of Veterans Affairs.

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

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may convey to the City

of Seaside, California (in this section referred to as the ‘‘City’’), all right, title, and

interest of the United States in and to a parcel of real property (including improvements

thereon) consisting of approximately 477

acres located in Monterey County, California, and comprising a portion of the

former Fort Ord Military Complex. The real

property to be conveyed to the City includes

the two Fort Ord Golf Courses, Black Horse

and Bayonet, and the Hayes Housing Facilities.

(b) CONSIDERATION.—As consideration for

the conveyance of the real property and improvements under subsection (a), the City

shall pay to the United States an amount

equal to the fair market value of the property to be conveyed, as determined by the

Secretary under such terms and conditions

as are determined to be fair and equitable to

both parties.

(c) USE AND DEPOSIT OF PROCEEDS.—(1)

From the funds paid by the City under subsection (b), the Secretary shall deposit in the

Morale, Welfare, and Recreation Fund Account of the Department of the Army an

amount equal to the portion of such funds

corresponding to the fair market value of the

two Fort Ord Golf Courses conveyed under

subsection (a), as established under subsection (b).

(2) The Secretary shall deposit the balance

of the funds paid by the City under subsection (b), after deducting the amount deposited under paragraph (1), in the Department of Defense Base Closure Account 1990.

(d) DESCRIPTION OF PROPERTY.—The exact

acreage and legal description of the real

property (including improvements thereon)

to be conveyed under subsection (a) shall be

determined by a survey satisfactory to the

Secretary and the City. The cost of the survey shall be borne by the City.

(e) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

conveyance under this section as the Secretary considers appropriate to protect the

interests of the United States.

SEC. 2825. LAND CONVEYANCE, INDIANA ARMY

AMMUNITION PLANT, CHARLESTOWN, INDIANA.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may convey, without

consideration, to the State of Indiana (in

this section referred to as the ‘‘State’’), all

right, title, and interest of the United States

in and to a parcel of real property, including

any improvements thereon, that consists of

approximately 1125 acres at the inactivated

Indiana Army Ammunition Plant in Charlestown, Indiana, and is the subject of a 25-year

lease between the Secretary and the State.

(b) CONDITION OF CONVEYANCE.—The conveyance authorized under subsection (a)

shall be subject to the condition that the

State use the conveyed property for recreational purposes.

(c) DESCRIPTION OF PROPERTY.—The exact

acreage and legal description of the real

property to be conveyed under subsection (a)

shall be determined by a survey satisfactory

to the Secretary. The cost of such survey

shall be borne by the State.

(d) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

conveyance under subsection (a) as the Secretary considers appropriate to protect the

interests of the United States.

SEC. 2826. LAND CONVEYANCE, NAVAL AIR STATION, PENSACOLA, FLORIDA.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may convey to West Florida Developers, Inc. (in this section referred

to as ‘‘WFD’’), all right, title, and interest of

the United States in and to a parcel of unimproved real property consisting of approximately 135 acres at Naval Air Station, Pensacola, Florida.

(b) CONSIDERATION.—(1) As consideration

for the conveyance under subsection (a),

WFD shall agree to restrict the use of all

lands located within the Air Installation

Compatible Use Zones of Naval Air Station

Pensacola and owned by WFD at the time of

the conveyance under subsection (a) in such

manner as specified by the Secretary. The

lands subject to such restriction shall total

at least 300 acres.

(2) If the fair market value of the property

conveyed under subsection (a) is more than

the fair market value of the restriction on

usage under paragraph (1), WFD shall pay to

the United States an amount equal to the

difference between the fair market values.

(c) DETERMINATION OF FAIR MARKET

VALUE.—The Secretary shall determine the

fair market value of the property to be conveyed under subsection (a) and the fair market value of the restriction on usage under

subsection (b)(1). Such determination shall

be final.

(d) DESCRIPTION OF PROPERTY.—The exact

acreage and legal description of the real

property to be conveyed under subsection (a)

shall be determined by a survey satisfactory

to the Secretary. The cost of such survey

shall be borne by WFD.

(e) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

conveyance authorized by subsection (a) as

the Secretary considers appropriate to protect the interests of the United States.

SEC. 2827. LAND CONVEYANCE, AVON PARK AIR

FORCE RANGE, SEBRING, FLORIDA.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Air Force may convey, without

consideration, to Highlands County, Florida

(in this section referred to as the ‘‘County’’),

all right, title, and interest of the United

States in and to a parcel of real property (including any improvements thereon) located

within the boundaries of the Avon Park Air

Force Range near Sebring, Florida, which

has previously served as the location of a

support complex and recreational facilities

for the Avon Park Air Force Range.

(b) CONDITIONS OF CONVEYANCE.—The conveyance authorized under subsection (a)

shall be subject to the conditions that the

County—

(1) directly or through an agreement with

an appropriate public or private entity, use

the conveyed property, including the support

complex and recreational facilities, for operation of a juvenile or other correctional facility; and

(2) enter into an agreement with the Secretary to reconvey the property to the

United States if the Secretary determines

that the conveyed property is necessary to

accomplish the military mission of the Avon

Park Air Force Range.

(c) REVERSIONARY INTEREST.—If the Secretary determines at any time that the property conveyed under subsection (a) is not

being used in accordance with subsection (b),

all right, title, and interest in the property

shall revert to the United States, and the

United States shall have the right of immediate entry onto the property.

(d) DESCRIPTION OF PROPERTY.—The exact

acreage and legal description of the real

property to be conveyed under subsection (a)

shall be determined by a survey satisfactory

to the Secretary. The cost of such survey

shall be borne by the County.

(e) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

conveyance under this section as the Sec-
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retary considers appropriate to protect the

interests of the United States.

SEC. 2828. LAND CONVEYANCE, PARKS RESERVE

FORCES TRAINING AREA, DUBLIN,

CALIFORNIA.

(a) CONVEYANCE AUTHORIZED.—(1) Except as

provided in paragraph (2), the Secretary of

the Army may convey to the County of Alameda, California (in this section referred to

as the ‘‘County’’), all right, title, and interest of the United States in and to a parcel of

real property consisting of approximately 31

acres, together with improvements thereon,

located at Parks Reserve Forces Training

Area, Dublin, California.

(2) The conveyance authorized by this section shall not include any oil, gas, or mineral interest of the United States in the real

property to be conveyed.

(b) CONSIDERATION.—(1) As consideration

for the conveyance under subsection (a)(1),

the County shall provide the Army with

services at the portion of Parks Reserve

Forces Training Area retained by the

Army—

(A) to relocate the main gate of the retained Army Training Area from Dougherty

Road to Dublin Boulevard across from the

Bay Area Rapid Transit District East Dublin

station, including the closure of the existing

main gate on Dougherty Road, construction

of a security facility, and construction of a

roadway from the new entrance to Fifth

Street;

(B) to fence and landscape the southern

boundary of the retained Army Training

Area installation located northerly of Dublin

Boulevard;

(C) to fence and landscape the eastern

boundary of the retained Army Training

Area from Dublin Boulevard to Gleason

Drive;

(D) to resurface roadways within the retained Army Training Area;

(E) to provide such other services in connection with the retained Army Training

Area, including relocation or reconstruction

of water lines, relocation or reconstruction

of sewer lines, construction of drainage improvements, and construction of buildings,

as the Secretary and the County may determine to be appropriate; and

(F) to provide for and fund any environmental mitigation that is necessary as a result of a change in use of the conveyed property by the County.

(2) The detailed specifications for the services to be provided under paragraph (1) may

be determined and approved on behalf of the

Secretary by the Commander of Parks Reserve Forces Training Area. The preparation

costs of such specifications shall be borne by

the County.

(3) The value of improvements and services

received by the United States from the County under paragraph (1) must be equal to or

exceed the appraised value of the real property to be conveyed under subsection (a)(1).

The appraisal of the value of the property

shall be subject to Government review and

approval.

(c) DESCRIPTION OF PROPERTY.—The exact

acreage and legal description of the real

property to be conveyed under subsection

(a)(1) shall be determined by a survey satisfactory to the Secretary. The cost of such

survey shall be borne by the County.

(d) TIME FOR TRANSFER OF TITLE.—The

transfer of title to the County under subsection (a)(1) may be executed by the Secretary only upon the satisfactory guarantee

by the County of completion of the services

to be provided under subsection (b).

(e) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

conveyance under subsection (a)(1) as the

Secretary considers appropriate to protect

the interests of the United States.

SEC. 2829. LAND CONVEYANCE, HOLSTON ARMY

AMMUNITION PLANT, MOUNT CARMEL, TENNESSEE.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may convey, without reimbursement, to the City of Mount Carmel,

Tennessee (in this section referred to as the

‘‘City’’), all right, title, and interest of the

United States in and to a parcel of real property consisting of approximately 6.5 acres,

together with any improvements thereon, located at Holston Army Ammunition Plant,

Tennessee. The property is located adjacent

to the Mount Carmel Cemetery and is intended for expansion of the cemetery.

(b) DESCRIPTION OF PROPERTY.—The exact

acreage and legal description of the real

property to be conveyed under subsection (a)

shall be determined by a survey satisfactory

to the Secretary. The cost of such survey

shall be borne by the City.

(c) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

conveyance under subsection (a) as the Secretary considers appropriate to protect the

interests of the United States.

SEC. 2830. LAND CONVEYANCE, NAVAL WEAPONS

INDUSTRIAL RESERVE PLANT,

MCGREGOR, TEXAS.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may convey, without consideration, to the City of McGregor, Texas

(in this section referred to as the ‘‘City’’), all

right, title, and interest of the United States

in and to a parcel of real property, including

any improvements thereon, containing the

Naval Weapons Industrial Reserve Plant in

McGregor, Texas. After screening the facilities, equipment, and fixtures (including special tooling and special test equipment) located on the parcel for other uses within the

Department of the Navy, the Secretary may

include in the conveyance remaining facilities, equipment, and fixtures if the Secretary

determines that manufacturing activities requiring the use of such facilities, equipment,

and fixtures are likely to continue or be reinstated on the parcel after conveyance.

(b) LEASE AUTHORITY.—Until such time as

the real property described in subsection (a)

is conveyed by deed, the Secretary may lease

the property, along with improvements

thereon, to the City in exchange for security

services, fire protection, and maintenance

provided by the City for the property.

(c) CONDITION OF CONVEYANCE.—The conveyance authorized under subsection (a)

shall be subject to the condition that the

City, directly or through an agreement with

a public or private entity, use the conveyed

property (or offer the conveyed property for

use) for economic redevelopment to replace

all or a part of the economic activity being

lost at the parcel.

(d) DESCRIPTION OF PROPERTY.—The exact

acreage and legal description of the real

property to be conveyed under subsection (a)

shall be determined by a survey satisfactory

to the Secretary. The cost of such survey

shall be borne by the City.

(e) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

conveyance under subsection (a) or a lease

under subsection (b) as the Secretary considers appropriate to protect the interests of

the United States.

SEC. 2831. TRANSFER OF JURISDICTION AND

LAND CONVEYANCE, FORT DEVENS

MILITARY RESERVATION, MASSACHUSETTS.

(a) TRANSFER OF LAND FOR WILDLIFE REFUGE.—Subject to subsection (b), the Secretary of the Army shall transfer, without

reimbursement, to the administrative jurisdiction of the Secretary of the Interior that

portion of Fort Devens Military Reservation

in the State of Massachusetts that is situated south of Massachusetts State Route 2,

for inclusion in the Oxbow National Wildlife

Refuge. The transfer shall be made as soon

as possible after the date on which the property is determined to be excess to the needs

of the Department of Defense.

(b) LAND CONVEYANCE AUTHORIZED.—The

Secretary of the Army shall convey to the

Town of Lancaster, Massachusetts (in this

section referred to as the ‘‘Town’’), all right,

title, and interest of the United States in

and to a parcel of real property consisting of

approximately 100 acres of the parcel available for transfer under subsection (a) and located adjacent to Massachusetts State Highway 70.

(c) LEGAL DESCRIPTION.—(1) The exact

acreage and legal description of the real

property to be transferred under subsection

(a) shall be determined by surveys that are

mutually satisfactory to the Secretary of

the Army and the Secretary of the Interior.

The cost of such surveys shall be borne by

the Secretary of the Interior.

(2) The exact acreage and legal description

of the real property to be conveyed under

subsection (b) shall be determined by surveys

that are mutually satisfactory to the Secretary of the Army, the Secretary of the Interior, and the Board of Selectman of the

Town. The cost of such surveys shall be

borne by the Town.

(d) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary of the Army may require such

additional terms and conditions in connection with the transfer and conveyance under

this section as the Secretary of the Army

considers appropriate to protect the interests of the United States.

SEC. 2832. LAND CONVEYANCE, ELMENDORF AIR

FORCE BASE, ALASKA.

(a) SALE TO PRIVATE PERSON AUTHORIZED.—

(1) The Secretary of the Air Force may sell

to a private person all right, title, and interest of the United States in and to a parcel of

real property consisting of approximately

31.69 acres that is located at Elmendorf Air

Force Base, Anchorage, Alaska, and identified in land lease W–95–507–ENG–58.

(2) The Secretary may select as purchaser

of the real property such private person as

the Secretary, in the sole exercise of the

Secretary’s discretion, considers appropriate. The conveyance shall be subject to

the condition that the purchaser agree to

provide appropriate maintenance for the

apartment complex located on the property

to be conveyed and used by members of the

Armed Forces stationed at Elmendorf Air

Force Base and their dependents.

(b) CONSIDERATION.—In consideration for

the conveyance under subsection (a), the

purchaser shall pay to the United States an

amount equal to the fair market value of the

real property to be conveyed, as determined

by an appraisal satisfactory to the Secretary. In determining the fair market value

of the real property, the Secretary shall consider the property as encumbered by land

lease W–95–507–ENG–58, with an expiration

date of June 13, 2024.

(c) DEPOSIT OF PROCEEDS.—The Secretary

shall deposit the amount received from the

purchaser under subsection (b) in the special

account established under section 204(h)(2) of

the Federal Property and Administrative

Services Act of 1949 (40 U.S.C. 585(h)(2)).

(d) DESCRIPTION OF PROPERTY.—The exact

acreage and legal description of the real

property to be conveyed under subsection (a)

shall be determined by a survey satisfactory

to the Secretary. The cost of such survey

shall be borne by the purchaser.

(e) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

conveyance under this section as the Secretary considers appropriate to protect the

interests of the United States.
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SEC. 2833. LAND CONVEYANCE ALTERNATIVE TO

EXISTING LEASE AUTHORITY, NAVAL

SUPPLY CENTER, OAKLAND, CALIFORNIA.

Section 2834(b) of the Military Construction Authorization Act for Fiscal Year 1993

(division B of Public Law 102–484; 106 Stat.

2614), as amended by section 2833 of the Military Construction Authorization Act for Fiscal Year 1994 (division B of Public Law 103–

160) and section 2821 of the Military Construction Authorization Act for Fiscal Year

1995 (division B of Public Law 103–337), is further amended by adding at the end the following new paragraphs:

‘‘(4) In lieu of entering into a lease under

paragraph (1), or in place of an existing lease

under such paragraph, the Secretary may

convey, without consideration, the property

described in such paragraph to the City of

Oakland, California, the Port of Oakland,

California, or the City of Alameda, California, under such terms and conditions as

the Secretary considers appropriate.

‘‘(5) The exact acreage and legal description of any property conveyed under paragraph (4) shall be determined by a survey

satisfactory to the Secretary. The cost of

each survey shall be borne by the recipient

of the property.’’.

SEC. 2834. LAND CONVEYANCE, ARMY RESERVE

CENTER, YOUNGSTOWN, OHIO.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may convey, without

consideration, to the City of Youngstown,

Ohio, all right, title, and interest of the

United States in and to a parcel of excess

real property, including improvements

thereon, that is located at 399 Miller Street

in Youngstown, Ohio, and contains the

Kefurt Army Reserve Center.

(b) CONDITION OF CONVEYANCE.—The conveyance authorized under subsection (a)

shall be subject to the condition that the

City of Youngstown retain the conveyed

property for the use and benefit of the

Youngstown Fire Department.

(c) DESCRIPTION OF PROPERTY.—The exact

acreage and legal description of the real

property to be conveyed under subsection (a)

shall be determined by a survey satisfactory

to the Secretary. The cost of such survey

shall be borne by the City of Youngstown.

(d) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

conveyance under subsection (a) as the Secretary considers appropriate to protect the

interests of the United States.

SEC. 2835. MODIFICATION OF LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL

RESERVE PLANT, CALVERTON, NEW

YORK.

(a) CONDITION ON CONVEYANCE.—Subsection

(b) of section 2833 of the Military Construction Authorization Act for Fiscal Year 1995

(division B of Public Law 103–337; 108 Stat.

3061) is amended by striking out ‘‘to replace

all or a part of the economic activity lost at

the Naval Weapons Industrial Reserve

Plant’’.

(b) REMOVAL OF REVERSIONARY INTEREST;

ADDITION OF LEASE AUTHORITY.—Subsection

(c) of such section is amended to read as follows:

‘‘(c) LEASE AUTHORITY.—Until such time as

the real property described in subsection (a)

is conveyed by deed, the Secretary may lease

the property, along with improvements

thereon, to the Community Development

Agency in exchange for security services,

fire protection, and maintenance provided by

the Community Development Agency for the

property.’’.

(c) CONFORMING AMENDMENTS.—Subsection

(e) of such section is amended by striking

out ‘‘subsection (a)’’ and inserting in lieu

thereof ‘‘subsection (a) or a lease under subsection (c)’’.

SEC. 2836. LAND EXCHANGE, FORT LEWIS, WASHINGTON.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may convey to

Weyerhaeuser Real Estate Company, Tacoma, Washington (in this section referred to

as ‘‘WRECO’’), all right, title, and interest of

the United States in and to a parcel of real

property at Fort Lewis, Washington, known

as an unimproved portion of Tract 1000 (formerly being in the DuPont Steilacoom Road,

consisting of approximately 1.23 acres), and

Tract 26E, 0.03 acre.

(b) CONSIDERATION.—As consideration for

the conveyance authorized by subsection (a),

WRECO shall convey or cause to be conveyed

to the United States by warranty deed all

right, title, and interest in and to a 0.39 acre

parcel of real property located within the

boundaries of Fort Lewis, Washington, together with other consideration acceptable

to the Secretary. The total consideration

conveyed to the United States shall not be

less than the fair market value of the land

conveyed under subsection (a).

(c) DETERMINATION OF FAIR MARKET

VALUE.—The determinations of the Secretary of the Army regarding the fair market values of the parcels of real property and

improvements to be conveyed pursuant to

subsections (a) and (b) shall be final.

(d) DESCRIPTION OF PROPERTY.—The exact

acreage and legal description of the parcels

of real property to be conveyed pursuant to

subsections (a) and (b) shall be determined

by surveys that are satisfactory to the Secretary of the Army. The cost of such surveys

shall be borne by WRECO.

(e) EFFECT ON EXISTING REVERSIONARY INTEREST.—The Secretary may enter into an

agreement with the appropriate officials of

Pierce County, Washington, under which—

(1) the existing reversionary interest of

Pierce County in the lands to be conveyed by

the United States under subsection (a) is extinguished; and

(2) the conveyance to the United States

under subsection (b) is made subject to a

similar reversionary interest in favor of

Pierce County in the lands conveyed under

such subsection.

(f) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

conveyances under this section as the Secretary considers appropriate to protect the

interests of the United States.

SEC. 2837. MODIFICATION OF EXISTING LAND

CONVEYANCE, HAMILTON AIR

FORCE BASE.

(a) AUTHORITIES IN EVENT OF PARTIAL

SALE.—In the event that the purchaser purchases only a portion of the Sale Parcel and

exercises its option to withdraw from the

sale as to the rest of the Sale Parcel, the

portion of the Sale Parcel that is not purchased (other than Landfill 26 and an appropriate buffer area around it and the groundwater treatment facility site), together with

any of the land referred to in section 9099(e)

of Public Law 102–396 that is not purchased

by the purchaser, may be sold to the City of

Novato, in the State of California, for the

sum of One Dollar as a public benefit transfer for school, classroom or other educational use, for use as a public park or

recreation area or for further conveyance as

provided herein, subject to the following restrictions: (1) if the City sells any portion of

such land to any third party within 10 years

after the transfer to the City, which sale

may be made without the foregoing use restrictions, any proceeds received by the City

in connection with such sale, minus the demonstrated reasonable costs of conducting the

sale and of any improvements made by the

City to the land following its acquisition of

the land (but only to the extent such improvements increase the value of the portion

sold), shall be immediately turned over to

the Army in reimbursement of the withdrawal payment made by the Army to the

contract purchaser and the costs of cleaning

up the Landfill and (2) until one year following completion of the cleanup of contaminated soil in the Landfill and completion of the groundwater treatment facilities,

the sale must be at a per-acre price for the

portion sold that is at least equal to the peracre contract price paid by the purchaser for

the portion of the Sale Parcel purchased

under the Agreement and Modification, as

amended, and thereafter must be at a price

at least equal to the fair market value of the

portion sold. The foregoing restrictions shall

not apply to a transfer to another public or

quasi-public agency for public uses of the

kind described above. The deed to the City

shall contain a clause providing that, if any

of the proceeds referred to in clause (1) are

not delivered to the Army within 30 days

after sale, or any portion of the land not sold

as provided herein is used for other than educational, park or recreational uses, title to

the applicable portion of such land shall revert to the United States at the election of

the Administrator of the General Services

Administration. The Secretary of the Army

shall agree to deliver into the applicable

closing escrow an acknowledgement of receipt of any proceeds described in clause (1)

above and a release of the reverter right as

to the affected land, effective upon such receipt.

(b) SPECIAL CONVEYANCE REGARDING BUILDING 138 PARCEL.—The Secretary of the Army

may convey the Building 138 parcel, which

has been designated by the parties as Parcel

A4 to the purchaser of the Sale Parcel. The

per-acre price for the portion sold shall be at

least equal to the per-acre contract price

paid by the purchaser for the portion of the

Sale Parcel purchased under the Agreement

and Modification, dated September 25, 1990,

as amended.

SEC. 2838. TRANSFER OF JURISDICTION, FORT

BLISS, TEXAS.

(a) TRANSFER OF LAND FOR NATIONAL CEMETERY.—The Secretary of the Army may

transfer, without reimbursement, to the administrative jurisdiction of the Secretary of

Veterans Affairs a parcel of real property

(including any improvements thereon) consisting of approximately 22 acres and comprising a portion of Fort Bliss, Texas.

(b) USE OF LAND.—The Secretary of Veterans Affairs shall use the real property

transferred under subsection (a) as an addition to the Fort Bliss National Cemetery and

administer such real property pursuant to

chapter 24 of title 38, United States Code.

(c) RETURN OF UNUSED LAND.—If the Secretary of Veterans Affairs determines that

any portion of the real property transferred

under subsection (a) is not needed for use as

a national cemetery, the Secretary of Veterans Affairs shall return such portion to the

administrative jurisdiction of the Secretary

of the Army.

(d) LEGAL DESCRIPTION.—The exact acreage

and legal description of the real property to

be transferred under this section shall be determined by surveys that are satisfactory to

the Secretary of the Army. The cost of such

surveys shall be borne by the Secretary of

Veterans Affairs.

(e) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary of the Army may require such

additional terms and conditions in connection with the transfer under this section as

the Secretary of the Army considers appropriate to protect the interests of the United

States.
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Subtitle D—Land Conveyances Involving

Utilities

SEC. 2841. CONVEYANCE OF RESOURCE RECOVERY FACILITY, FORT DIX, NEW JERSEY.

(a) AUTHORITY TO CONVEY.—The Secretary

of the Army may convey to Burlington

County, New Jersey (in this section referred

to as the ‘‘County’’), all right, title, and interest of the United States in and to a parcel

of real property at Fort Dix, New Jersey,

consisting of approximately two acres and

containing a resource recovery facility,

known as the Fort Dix resource recovery facility.

(b) RELATED EASEMENTS.—The Secretary

may grant to the County any easement that

is necessary for access to and operation of

the resource recovery facility conveyed

under subsection (a).

(c) CONDITIONS ON CONVEYANCE.—The conveyance of the resource recovery facility authorized by subsection (a) is subject to the

following conditions:

(1) That the County accept the resource recovery facility in its existing condition at

the time of conveyance.

(2) That the County provide refuse and

steam service to Fort Dix, New Jersey, at

the rate established by the appropriate Federal or State regulatory authority.

(3) That the County comply with all applicable environmental laws and regulations relating to the resource recovery facility, including any permit or license requirements.

(4) That the County assume full responsibility for ownership, operation, maintenance, repair, and all regulatory compliance

requirements for the resource recovery facility.

(d) CONDITION ON EXPANSION.—The conveyance of the resource recovery facility under

subsection (a) shall also be subject to the

condition that the County may not expand

the resource recovery facility without prior

approval by the Secretary.

(e) ENVIRONMENTAL COMPLIANCE.—The

County shall be responsible for owning, operating, and upgrading the resource recovery

facility in accordance with all applicable

Federal, State, and municipal laws and regulations promulgated thereunder.

(f) DESCRIPTION OF THE PROPERTY.—The

exact acreage and legal description of the

real property to be conveyed under subsection (a), and of any easements to be

granted under subsection (b), shall be determined by a survey satisfactory to the Secretary. The cost of such survey shall be

borne by the County.

(g) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

conveyance under subsection (a) and the

grant of any easement under subsection (b)

as the Secretary considers appropriate to

protect the interests of the United States.

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

GORDON, GEORGIA.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may convey to the city

of Augusta, Georgia (in this section referred

to as the ‘‘City’’), all right, title, and interest of the United States to several parcels of

real property located at Fort Gordon, Georgia, and consisting of approximately seven

acres each. The parcels are improved with a

water filtration plant, water distribution

system with storage tanks, sewage treatment plant, and sewage collection system.

(b) RELATED EASEMENTS.—The Secretary

may grant to the City any easement that is

necessary for access to the real property conveyed under subsection (a) and operation of

the conveyed facilities.

(c) CONDITIONS ON CONVEYANCE.—The conveyance authorized by subsection (a) is subject to the following conditions:

(1) That the City accept the water and

wastewater treatment plants and distribution and collection systems in their existing

condition at the time of conveyance.

(2) That the City provide water and sewer

service to Fort Gordon, Georgia, at a rate established by the appropriate Federal or

State regulatory authority.

(3) That the City comply with all applicable environmental laws and regulations regarding the real property conveyed under

subsection (a), including any permit or license requirements.

(4) That the City assume full responsibility

for ownership, operation, maintenance, repair, and all regulatory compliance requirements for the water and wastewater treatment plants and distribution and collection

systems.

(d) CONDITION ON EXPANSION.—The conveyance under subsection (a) shall also be subject to the condition that the City may not

expand the water and wastewater treatment

plants and distribution and collection systems without prior approval by the Secretary.

(e) ENVIRONMENTAL COMPLIANCE.—The City

shall be responsible for owning, operating,

and upgrading the water and wastewater

treatment plants and distribution and collection systems in accordance with all applicable Federal, State, and municipal laws and

regulations promulgated thereunder.

(f) DESCRIPTION OF PROPERTY.—The exact

acreage and legal description of the real

property to be conveyed under subsection

(a), and of any easements granted under subsection (b), shall be determined by a survey

satisfactory to the Secretary. The cost of

such survey shall be borne by the City.

(g) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

conveyance under subsection (a) and the

grant of any easement under subsection (b)

as the Secretary considers appropriate to

protect the interests of the United States.

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

CALIFORNIA.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may convey to the

Southern California Edison Company, California (in this section referred to as the

‘‘Company’’), all right, title, and interest of

the United States in and to the electrical

distribution system located at Fort Irwin,

California.

(b) DESCRIPTION OF SYSTEM AND CONVEYANCE.—The electrical distribution system

authorized to be conveyed under subsection

(a) consists of approximately 115 miles of

electrical distribution lines, including poles,

switches, reclosers, transformers, regulators,

switchgears, and service lines. The conveyance includes the equipment, fixtures, structures, and other improvements the Federal

Government utilizes to provide electrical

services at Fort Irwin. The conveyance shall

not include any real property.

(c) RELATED EASEMENTS.—The Secretary

may grant to the Company any easement

that is necessary for access to and operation

of the electrical distribution system conveyed under subsection (a).

(d) CONDITIONS ON CONVEYANCE.—The conveyance authorized by subsection (a) is subject to the following conditions:

(1) That the Company accept the electrical

distribution system in its existing condition

at the time of conveyance.

(2) That the Company provide electrical

service to Fort Irwin, California, at a rate

established by the appropriate Federal or

State regulatory authority.

(3) That the Company comply with all applicable environmental laws and regulations

regarding the electrical distribution system,

including any permit or license requirements.

(4) That the Company assume full responsibility for ownership, operation, maintenance, repair, and all regulatory compliance

requirements for the electrical distribution

system.

(e) CONDITION ON EXPANSION.—The conveyance under subsection (a) shall also be subject to the condition that the Company may

not expand the electrical distribution system

without prior approval by the Secretary.

(f) ENVIRONMENTAL COMPLIANCE.—The

Company shall be responsible for owning, operating, and upgrading the electrical distribution system in accordance with all applicable Federal, State, and municipal laws

and regulations promulgated thereunder.

(g) DESCRIPTION OF EASEMENT.—The exact

acreage and legal description of any easement granted under subsection (c) shall be

determined by a survey satisfactory to the

Secretary. The cost of such survey shall be

borne by the Company.

(h) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

conveyance under subsection (a) and the

grant of any easement under subsection (c)

as the Secretary considers appropriate to

protect the interests of the United States.

Subtitle E—Other Matters

SEC. 2851. EXPANSION OF AUTHORITY TO SELL

ELECTRICITY.

(a) INCLUSION OF ADDITIONAL ENERGY PRODUCTION FACILITIES.—Subsection (a) of section 2483 of title 10, United States Code, is

amended by striking out ‘‘alternate energy

and cogeneration type production facilities’’

in the first sentence and inserting in lieu

thereof ‘‘energy production facilities’’.

(b) CLERICAL AMENDMENTS.—(1) The heading of such section is amended to read as follows:

‘‘§ 2483. Special sale authority regarding electricity’’.

(2) The table of sections at the beginning of

chapter 147 of title 10, United States Code, is

amended by striking out the item relating to

section 2483 and inserting in lieu thereof the

following new item:

‘‘2483. Special sale authority regarding electricity.’’.

SEC. 2852. AUTHORITY FOR MISSISSIPPI STATE

PORT AUTHORITY TO USE NAVY

PROPERTY AT NAVAL CONSTRUCTION BATTALION CENTER, GULFPORT, MISSISSIPPI.

(a) JOINT USE AGREEMENT AUTHORIZED.—

The Secretary of the Navy may enter into an

agreement with the Port Authority of the

State of Mississippi (in this section referred

to as the ‘‘Port Authority’’), under which the

Port Authority may use real property comprising up to 50 acres located at the Naval

Construction Battalion Center, Gulfport,

Mississippi (in this section referred to as the

‘‘Center’’).

(b) TERM OF AGREEMENT.—The agreement

authorized under subsection (a) may be for

an initial period of not more than 15 years.

Under the agreement, the Secretary shall

provide the Port Authority with an option to

extend the agreement for at least three additional periods of five years each.

(c) CONDITIONS ON USE.—The agreement authorized under subsection (a) shall require

the Port Authority—

(1) to suspend operations under the agreement in the event Navy contingency operations are conducted at the Center; and

(2) to use the property covered by the

agreement in a manner consistent with Navy

operations conducted at the Center.

(d) CONSIDERATION.—(1) As consideration

for the use of the property covered by the

agreement under subsection (a), the Port Authority shall pay to the Navy an amount

equal to the fair market rental value of the
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1995 T80.11

property, as determined by the Secretary

taking into consideration the Port

Authority’s use of the property.

(2) The Secretary may include a provision

in the agreement requiring the Port

Authority—

(A) to pay the Navy an amount (as determined by the Secretary) to cover the costs of

replacing at the Center any facilities vacated by the Navy on account of the agreement or to construct suitable replacement

facilities for the Navy; and

(B) to pay the Navy an amount (as determined by the Secretary) for the costs of relocating Navy operations from the vacated facilities to the replacement facilities.

(e) CONGRESSIONAL NOTIFICATION.—The Secretary may not enter into the agreement authorized by subsection (a) until the end of

the 21-day period beginning on the date on

which the Secretary submits to Congress a

report containing an explanation of the

terms of the proposed agreement and a description of the consideration that the Secretary expects to receive under the agreement.

(f) USE OF PAYMENT.—(1) In such amounts

as are provided in advance in appropriation

Acts, the Secretary may use amounts paid

under subsection (d)(1) to pay for general supervision, administration, and overhead expenses and for improvement, maintenance,

repair, construction, or restoration of the

roads, railways, and facilities serving the

Center.

(2) In such amounts as are provided in advance in appropriation Acts, the Secretary

may use amounts paid under subsection

(d)(2) to pay for constructing new facilities,

or making modifications to existing facilities, that are necessary to replace facilities

vacated by the Navy on account of the agreement under subsection (a) and for relocating

operations of the Navy from the vacated facilities to replacement facilities.

(g) CONSTRUCTION BY PORT AUTHORITY.—

The Secretary may authorize the Port Authority to demolish existing facilities located on the property covered by the agreement under subsection (a) and, consistent

with the restriction specified in subsection

(c)(2), construct new facilities on the property for joint use by the Port Authority and

the Navy.

(h) ADDITIONAL TERMS AND CONDITIONS.—

The Secretary may require such additional

terms and conditions in connection with the

agreement authorized under subsection (a) as

the Secretary considers appropriate to protect the interests of the United States.

SEC. 2853. PROHIBITION ON JOINT CIVIL AVIATION USE OF NAVAL AIR STATION

MIRAMAR, CALIFORNIA.

The Secretary of the Navy may not enter

into any agreement that would provide for or

permit civil aircraft to regularly use Naval

Air Station Miramar, California.

SEC. 2854. REPORT REGARDING ARMY WATER

CRAFT SUPPORT FACILITIES AND

ACTIVITIES.

Not later than February 15, 1996, the Secretary of the Army shall submit to Congress

a report describing—

(1) the location, assets, and mission of each

Army facility, active or reserve component,

that supports water transportation operations;

(2) an infrastructure inventory and utilization rate of each Army facility supporting

water transportation operations;

(3) options for consolidating these operations to reduce overhead; and

(4) actions that can be taken to affirmatively respond to requests from the residents

of Marcus Hook, Pennsylvania, to close the

Army Reserve facility located in Marcus

Hook and make the facility available for use

by the community.

DIVISION C—DEPARTMENT OF ENERGY

NATIONAL

SECURITY AUTHORIZATIONS AND OTHER

AUTHORIZATIONS

TITLE XXXI—DEPARTMENT OF ENERGY

NATIONAL SECURITY PROGRAMS

Subtitle A—National Security Programs

Authorizations

SEC. 3101. WEAPONS ACTIVITIES.

(a) STOCKPILE STEWARDSHIP.—Subject to

subsection (d), funds are hereby authorized

to be appropriated to the Department of Energy for fiscal year 1996 for stockpile stewardship in carrying out weapons activities

necessary for national security programs in

the amount of $3,610,914,000, to be allocated

as follows:

(1) For core stockpile stewardship,

$1,189,708,000 for fiscal year 1996, to be allocated as follows:

(A) For operation and maintenance,

$1,098,403,000.

(B) For plant projects (including maintenance, restoration, planning, construction,

acquisition, modification of facilities, and

the continuation of projects authorized in

prior years, and land acquisition related

thereto), $96,305,000, to be allocated as follows:

Project 96–D–102, stockpile stewardship facilities revitalization, Phase VI, various locations, $2,520,000.

Project 96–D–103, ATLAS, Los Alamos National Laboratory, Los Alamos, New Mexico,

$8,400,000.

Project 96–D–104, processing and environmental technology laboratory (PETL),

Sandia National Laboratories, Albuquerque,

New Mexico, $1,800,000.

Project 96–D–105, contained firing facility

addition, Lawrence Livermore National Laboratory, Livermore, California, $6,600,000.

Project 95–D–102, Chemical and Metallurgy

Research Building upgrades project, Los Alamos National Laboratory, Los Alamos, New

Mexico, $9,940,000.

Project 94–D–102, nuclear weapons research, development, and testing facilities

revitalization, Phase V, various locations,

$12,200,000.

Project 93–D–102, Nevada support facility,

North Las Vegas, Nevada, $15,650,000.

Project 90–D–102, nuclear weapons research, development, and testing facilities

revitalization, Phase III, various locations,

$6,200,000.

Project 88–D–106, nuclear weapons research, development, and testing facilities

revitalization, Phase II, various locations,

$27,995,000.

(2) For inertial fusion, $240,667,000, to be allocated as follows:

(A) For operation and maintenance,

$203,267,000.

(B) For plant projects (including maintenance, restoration, planning, construction,

acquisition, modification of facilities, and

the continuation of projects authorized in

prior years, and land acquisition related

thereto), $37,400,000 to be allocated as follows:

Project 96–D–111, national ignition facility,

TBD, $37,400,000.

(3) For technology transfer, $25,000,000.

(4) For Marshall Islands, $6,800,000.

(b) STOCKPILE MANAGEMENT.—Subject to

subsection (d), funds are hereby authorized

to be appropriated to the Department of Energy for fiscal year 1996 for stockpile management in carrying out weapons activities

necessary for national security programs in

the amount of $2,142,083,000, to be allocated

as follows:

(1) For operation and maintenance,

$2,028,458,000.

(2) For plant projects (including maintenance, restoration, planning, construction,

acquisition, modification of facilities, and

the continuation of projects authorized in

prior years, and land acquisition related

thereto), $113,625,000, to be allocated as follows:

Project 96–D–122, sewage treatment quality

upgrade (STQU), Pantex Plant, Amarillo,

Texas, $600,000.

Project 96–D–123, retrofit HVAC and

chillers for ozone protection, Y–12 Plant,

Oak Ridge, Tennessee, $3,100,000.

Project 96–D–125, Washington measurements operations facility, Andrews Air Force

Base, Camp Springs, Maryland, $900,000.

Project 96–D–126, tritium loading line

modifications, Savannah River Site, South

Carolina, $12,200,000.

Project 95–D–122, sanitary sewer upgrade,

Y–12 Plant, Oak Ridge, Tennessee, $6,300,000.

Project 94–D–124, hydrogen fluoride supply

system, Y–12 Plant, Oak Ridge, Tennessee,

$8,700,000.

Project 94–D–125, upgrade life safety, Kansas City Plant, Kansas City, Missouri,

$5,500,000.

Project 94–D–127, emergency notification

system, Pantex Plant, Amarillo, Texas,

$2,000,000.

Project 94–D–128, environmental safety and

health analytical laboratory, Pantex Plant,

Amarillo, Texas, $4,000,000.

Project 93–D–122, life safety upgrades, Y–12

Plant, Oak Ridge, Tennessee, $7,200,000.

Project 93–D–123, complex-21, various locations, $41,065,000.

Project 88–D–122, facilities capability assurance program, various locations,

$8,660,000.

Project 88–D–123, security enhancement,

Pantex Plant, Amarillo, Texas, $13,400,000.

(c) PROGRAM DIRECTION.—Subject to subsection (d), funds are hereby authorized to be

appropriated to the Department of Energy

for fiscal year 1996 for program direction in

carrying out weapons activities necessary

for national security programs in the

amount of $118,000,000.

(d) ADJUSTMENTS.—The total amount authorized to be appropriated pursuant to this

section is the sum of the amounts authorized

to be appropriated in subsections (a) through

(c) reduced by the sum of—

(1) $25,000,000, for savings resulting from

procurement reform; and

(2) $86,344,000, for use in prior year balances.

SEC. 3102. ENVIRONMENTAL RESTORATION AND

WASTE MANAGEMENT.

(a) CORRECTIVE ACTIVITIES.—Subject to

subsection (i), funds are hereby authorized to

be appropriated to the Department of Energy

for fiscal year 1996 for corrective activities

in carrying out environmental restoration

and waste management activities necessary

for national security programs in the

amount of $3,406,000, all of which shall be

available for the following plant project (including maintenance, restoration, planning,

construction, acquisition, modification of facilities, and land acquisition related thereto):

Project 90–D–103, environment, safety and

health improvements, weapons research and

development complex, Los Alamos National

Laboratory, Los Alamos, New Mexico.

(b) ENVIRONMENTAL RESTORATION.—Subject

to subsection (i), funds are hereby authorized

to be appropriated to the Department of Energy for fiscal year 1996 for environmental

restoration in carrying out environmental

restoration and waste management activities necessary for national security programs in the amount of $1,575,973,000.

(c) WASTE MANAGEMENT.—Subject to subsection (i), funds are hereby authorized to be

appropriated to the Department of Energy

for fiscal year 1996 for waste management in

carrying out environmental restoration and
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waste management activities necessary for

national security programs in the amount of

$2,351,596,000, to be allocated as follows:

(1) For operation and maintenance,

$2,168,994,000.

(2) For plant projects (including maintenance, restoration, planning, construction,

acquisition, modification of facilities, and

the continuation of projects authorized in

prior years, and land acquisition related

thereto), $182,602,000, to be allocated as follows:

Project 96–D–406, K-Basin operations program, Richland, Washington, $26,000,000.

Project 96–D–407, mixed waste low level

waste treatment projects, Rocky Flats,

Golden, Colorado, $2,900,000.

Project 96–D–408, waste management upgrades, various locations, $5,615,000.

Project 95–D–402, install permanent electrical service for the Waste Isolation Pilot

Plant, Carlsbad, New Mexico, $4,314,000.

Project 95–D–405, industrial landfill V and

construction/demolition landfill VII, Phase

III, Y–12 Plant, Oak Ridge, Tennessee,

$4,600,000.

Project 95–D–406, road 5–01 reconstruction,

area 5, Nevada Test Site, Nevada, $1,023,000.

Project 94–D–400, high explosive wastewater treatment system, Los Alamos National Laboratory, Los Alamos, New Mexico,

$4,445,000.

Project 94–D–402, liquid waste treatment

system, Nevada Test Site, Nevada, $282,000.

Project 94–D–404, Melton Valley storage

tanks capacity increase, Oak Ridge National

Laboratory, Oak Ridge, Tennessee,

$11,000,000.

Project 94–D–407, initial tank retrieval systems, Richland, Washington, $9,400,000.

Project 94–D–411, solid waste operations

complex project, Richland, Washington,

$5,500,000.

Project 94–D–417, intermediate level and

low activity waste vaults, Savannah River

Site, Aiken, South Carolina, $2,704,000.

Project 93–D–178, building 374 liquid waste

treatment facility, Rocky Flats Environmental Technology Site, Golden, Colorado,

$3,900,000.

Project 93–D–182, replacement of cross-site

transfer system, Richland, Washington,

$19,795,000.

Project 93–D–183, multi-function waste remediation facility, Richland, Washington,

$31,000,000.

Project 93–D–187, high-level waste removal

from filled waste tanks, Savannah River

Site, Aiken, South Carolina, $19,700,000.

Project 92–D–171, mixed waste receiving

and storage facility, Los Alamos National

Laboratory, Los Alamos, New Mexico,

$1,105,000.

Project 92–D–188, waste management environmental, safety and health (ES&H) and

compliance activities, various locations,

$1,100,000.

Project 90–D–172, aging waste transfer

lines, Richland, Washington, $2,000,000.

Project 90–D–177, RWMC transuranic (TRU)

waste characterization and storage facility,

Idaho National Engineering Laboratory,

Idaho, $1,428,000.

Project 90–D–178, TSA retrieval enclosure,

Idaho National Engineering Laboratory,

Idaho, $2,606,000.

Project 89–D–173, tank farm ventilation upgrade, Richland, Washington, $800,000.

Project 89–D–174, replacement high-level

waste evaporator, Savannah River Site,

Aiken, South Carolina, $11,500,000.

Project 86–D–103, decontamination and

waste treatment facility, Lawrence Livermore National Laboratory, Livermore, California, $8,885,000.

Project 83–D–148, nonradioactive hazardous

waste management, Savannah River Site,

Aiken, South Carolina, $1,000,000.

(d) TECHNOLOGY DEVELOPMENT.—Subject to

subsection (i), funds are hereby authorized to

be appropriated to the Department of Energy

for fiscal year 1996 for technology development in carrying out environmental restoration and waste management activities necessary for national security programs in the

amount of $390,510,000.

(e) TRANSPORTATION MANAGEMENT.—Subject to subsection (i), funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1996 for transportation management in carrying out environmental restoration and waste management activities necessary for national security programs in the amount of $10,158,000.

(f) NUCLEAR MATERIALS AND FACILITIES

STABILIZATION.—Subject to subsection (i),

funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1996 for nuclear materials and facilities stabilization in carrying out environmental restoration and waste management

activities necessary for national security

programs in the amount of $1,514,504,000 to be

allocated as follows:

(1) For operation and maintenance,

$1,427,108,000.

(2) For plant projects (including maintenance, restoration, planning, construction,

acquisition, modification of facilities, and

the continuation of projects authorized in

prior years, and land acquisition related

thereto), $87,396,000, to be allocated as follows:

Project 96–D–458, site drainage control,

Mound Plant, Miamisburg, Ohio, $885,000.

Project 96–D–461, Idaho National Engineering Laboratory electrical distribution upgrade, Idaho National Engineering Laboratory, Idaho, $1,539,000.

Project 96–D–462, health physics instrument laboratory, Idaho National Engineering Laboratory, Idaho, $1,126,000.

Project 96–D–464, electrical and utility systems upgrade, Idaho Chemical Processing

Plant, Idaho National Engineering Laboratory, Idaho, $4,952,000.

Project 96–D–470, environmental monitoring laboratory, Savannah River Site,

Aiken, South Carolina, $3,500,000.

Project 96–D–471, CFC HVAC/chiller retrofit, Savannah River Site, Aiken, South

Carolina, $1,500,000.

Project 96–D–473, health physics site support facility, Savannah River Site, Aiken,

South Carolina, $2,000,000.

Project 95–D–155, upgrade site road infrastructure, Savannah River site, Aiken,

South Carolina, $2,900,000.

Project 95–D–156, radio trunking system,

Savannah River site, Aiken, South Carolina,

$6,000,000.

Project 95–D–454, 324 facility compliance/

renovation, Richland, Washington, $3,500,000.

Project 95–D–456, security facilities consolidation, Idaho Chemical Processing Plant,

Idaho National Engineering Laboratory,

Idaho, $8,382,000.

Project 94–D–122, underground storage

tanks, Rocky Flats Plant, Golden, Colorado,

$5,000,000.

Project 94–D–401, emergency response facility, Idaho National Engineering Laboratory,

Idaho, $5,074,000.

Project 94–D–412, 300 area process sewer

piping system upgrade, Richland, Washington, $1,000,000.

Project 94–D–415, Idaho National Engineering Laboratory medical facilities, Idaho National Engineering Laboratory, Idaho,

$3,601,000.

Project 94–D–451, infrastructure replacement, Rocky Flats Plant, Golden, Colorado,

$2,940,000.

Project 93–D–147, domestic water system

upgrade, Phase I and II, Savannah River

Site, Aiken, South Carolina, $7,130,000.

Project 93–D–172, Idaho National Engineering Laboratory electrical upgrade, Idaho National Engineering Laboratory, Idaho,

$124,000.

Project 92–D–123, plant fire/security alarm

system replacement, Rocky Flats Plant,

Golden, Colorado, $9,560,000.

Project 92–D–125, master safeguards and security agreement/materials surveillance

task force security upgrades, Rocky Flats

Plant, Golden, Colorado, $7,000,000.

Project 92–D–181, Idaho National Engineering Laboratory fire and life safety improvements, Idaho National Engineering Laboratory, Idaho, $6,883,000.

Project 91–D–127, criticality alarm and

plant annunciation utility replacement,

Rocky Flats Plant, Golden, Colorado,

$2,800,000.

(g) COMPLIANCE AND PROGRAM COORDINATION.—Subject to subsection (i), funds are

hereby authorized to be appropriated to the

Department of Energy for fiscal year 1996 for

compliance and program coordination in carrying out environmental restoration and

waste management activities necessary for

national security programs in the amount of

$31,251,000, to be allocated as follows:

(1) For operation and maintenance,

$16,251,000.

(2) For the following plant project (including maintenance, restoration, planning, construction, acquisition, modification of facilities, and the continuation of projects authorized in prior years, and land acquisition related thereto):

Project 95–E–600, hazardous materials management and emergency response training

center, Richland, Washington, $15,000,000.

(h) ANALYSIS, EDUCATION, AND RISK MANAGEMENT.—Subject to subsection (i), funds

are hereby authorized to be appropriated to

the Department of Energy for fiscal year 1996

analysis, education, and risk management in

carrying out environmental restoration and

waste management activities necessary for

national security programs in the amount of

$77,022,000.

(i) ADJUSTMENTS.—The total amount authorized to be appropriated pursuant to this

section is the sum of the amounts specified

in subsections (a) through (h) reduced by the

sum of—

(1) $651,942,000, for use of prior year balances; and

(2) $37,000,000 for Savannah River Pension

Refund.

SEC. 3103. PAYMENT OF PENALTIES.

The Secretary of Energy may pay to the

Hazardous Substance Superfund established

under section 9507 of the Internal Revenue

Code of 1986 (26 U.S.C. 9507), from funds appropriated to the Department of Energy for

environmental restoration and waste management activities pursuant to section 3102,

stipulated civil penalties assessed under the

Comprehensive Environmental Response,

Compensation, and Liability Act of 1980 (42

U.S.C. 9601 et seq.) in the amount of $350,000

assessed against the Rocky Flats site, Colorado, under such Act.

SEC. 3104. OTHER DEFENSE ACTIVITIES.

(a) OTHER DEFENSE ACTIVITIES.—Subject to

subsection (b), funds are hereby authorized

to be appropriated to the Department of Energy for fiscal year 1996 for other defense activities in carrying out programs necessary

for national security in the amount of

$1,328,841,000, to be allocated as follows:

(1) For verification and control technology,

$353,200,000, to be allocated as follows:

(A) For nonproliferation and verification

research and development, $163,500,000.

(B) For arms control, $147,364,000.

(C) For intelligence, $42,336,000.

(2) For nuclear safeguards and security,

$83,395,000.

(3) For security investigations, $25,000,000.
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1995 T80.11

(4) For security evaluations, $14,707,000.

(5) For the Office of Nuclear Safety,

$15,050,000.

(6) For worker and community transition

assistance, $75,000,000.

(7) For fissile materials disposition,

$70,000,000.

(8) For emergency management, $23,321,000.

(9) For naval reactors development,

$682,168,000, to be allocated as follows:

(A) For operation and infrastructure,

$659,168,000.

(B) For plant projects (including maintenance, restoration, planning, construction,

acquisition, modification of facilities, and

the continuation of projects authorized in

prior years, and land acquisition related

thereto), $23,000,000, to be allocated as follows:

Project 95–D–200, laboratory systems and

hot cell upgrades, various locations,

$11,300,000.

Project 95–D–201, advanced test reactor radioactive waste system upgrades, Idaho National Engineering Laboratory, Idaho,

$4,800,000.

Project 93–D–200, engineering services facilities, Knolls Atomic Power Laboratory,

Niskayuna, New York, $3,900,000.

Project 90–N–102, expended core facility dry

cell project, Naval Reactors facility, Idaho,

$3,000,000.

(b) ADJUSTMENT.—The total amount that

may be appropriated pursuant to this section

is the amount authorized to be appropriated

in subsection (a) reduced by the sum of

$13,000,000, for use of prior year balances.

SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1996 for payment to the Nuclear

Waste Fund established in section 302(c) of

the Nuclear Waste Policy Act of 1982 (42

U.S.C. 10222(c)) in the amount of $198,400,000.

Subtitle B—Recurring General Provisions

SEC. 3121. REPROGRAMMING.

(a) IN GENERAL.—Until the Secretary of

Energy submits to the congressional defense

committees the report referred to in subsection (b) and a period of 30 days has

elapsed after the date on which such committees receive the report, the Secretary

may not use amounts appropriated pursuant

to this title for any program—

(1) in amounts that exceed, in a fiscal

year—

(A) 110 percent of the amount authorized

for that program by this title; or

(B) $1,000,000 more than the amount authorized for that program by this title; or

(2) which has not been presented to, or requested of, Congress.

(b) REPORT.—(1) The report referred to in

subsection (a) is a report containing a full

and complete statement of the action proposed to be taken and the facts and circumstances relied upon in support of such

proposed action.

(2) In the computation of the 30-day period

under subsection (a), there shall be excluded

any day on which either House of Congress is

not in session because of an adjournment of

more than 3 days to a day certain.

(c) LIMITATIONS.—(1) In no event may the

total amount of funds obligated pursuant to

this title exceed the total amount authorized

to be appropriated by this title.

(2) Funds appropriated pursuant to this

title may not be used for an item for which

Congress has specifically denied funds.

SEC. 3122. LIMITS ON GENERAL PLANT

PROJECTS.

(a) IN GENERAL.—The Secretary of Energy

may carry out any construction project

under the general plant projects authorized

by this title if the total estimated cost of the

construction project does not exceed

$2,000,000.

(b) REPORT TO CONGRESS.—If, at any time

during the construction of any general plant

project authorized by this title, the estimated cost of the project is revised because

of unforeseen cost variations and the revised

cost of the project exceeds $2,000,000, the Secretary shall immediately furnish a complete

report to the congressional defense committees explaining the reasons for the cost variation.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

(a) IN GENERAL.—(1) Except as provided in

paragraph (2), construction on a construction project may not be started or additional

obligations incurred in connection with the

project above the total estimated cost, whenever the current estimated cost of the construction project, which is authorized by sections 3101, 3102, and 3104, or which is in support of national security programs of the Department of Energy and was authorized by

any previous Act, exceeds by more than 25

percent the higher of—

(A) the amount authorized for the project;

or

(B) the amount of the total estimated cost

for the project as shown in the most recent

budget justification data submitted to Congress.

(2) An action described in paragraph (1)

may be taken if—

(A) the Secretary of Energy has submitted

to the congressional defense committees a

report on the actions and the circumstances

making such action necessary; and

(B) a period of 30 days has elapsed after the

date on which the report is received by the

committees.

(3) In the computation of the 30-day period

under paragraph (2), there shall be excluded

any day on which either House of Congress is

not in session because of an adjournment of

more than 3 days to a day certain.

(b) EXCEPTION.—Subsection (a) shall not

apply to any construction project which has

a current estimated cost of less than

$5,000,000.

SEC. 3124. FUND TRANSFER AUTHORITY.

(a) TRANSFER TO OTHER FEDERAL AGENCIES.—The Secretary of Energy may transfer

funds authorized to be appropriated to the

Department of Energy pursuant to this title

to other Federal agencies for the performance of work for which the funds were authorized. Funds so transferred may be

merged with and be available for the same

purposes and for the same time period as the

authorizations of the Federal agency to

which the amounts are transferred.

(b) TRANSFER WITHIN DEPARTMENT OF ENERGY; LIMITATIONS.—(1) Subject to paragraph

(2), the Secretary of Energy may transfer

funds authorized to be appropriated to the

Department of Energy pursuant to this title

between any such authorizations. Amounts

of authorizations so transferred may be

merged with and be available for the same

purposes and for the same time period as the

authorization to which the amounts are

transferred.

(2) Not more than 5 percent of any such authorization may be transferred between authorizations under paragraph (1). No such authorization may be increased or decreased by

more than 5 percent by a transfer under such

paragraph.

(3) The authority provided by this section

to transfer authorizations—

(A) may only be used to provide funds for

items that have a higher priority than the

items from which the funds are transferred;

and

(B) may not be used to provide authority

for an item that has been denied funds by

Congress.

(c) NOTICE TO CONGRESS.—The Secretary of

Energy shall promptly notify the Committee

on Armed Services of the Senate and the

Committee on National Security of the

House of Representatives of any transfer of

funds to or from authorizations under this

title.

SEC. 3125. AUTHORITY FOR CONCEPTUAL AND

CONSTRUCTION DESIGN.

(a) REQUIREMENT FOR CONCEPTUAL DESIGN.—(1) Subject to paragraph (2) and except

as provided in paragraph (3), before submitting to Congress a request for funds for a

construction project that is in support of a

national security program of the Department of Energy, the Secretary of Energy

shall complete a conceptual design for that

project.

(2) If the estimated cost of completing a

conceptual design for a construction project

exceeds $3,000,000, the Secretary shall submit

to Congress a request for funds for the conceptual design before submitting a request

for funds for the construction project.

(3) The requirement in paragraph (1) does

not apply to a request for funds—

(A) for a construction project the total estimated cost of which is less than $2,000,000,

or

(B) for emergency planning, design, and

construction activities under section 3126.

(b) AUTHORITY FOR CONSTRUCTION DESIGN.—

(1) Within the amounts authorized by this

title, the Secretary of Energy may carry out

construction design services (including architectural and engineering services) in connection with any proposed construction

project if the total estimated cost for such

design does not exceed $600,000.

(2) If the total estimated cost for construction design in connection with any construction project exceeds $600,000, funds for such

design must be specifically authorized by

law.

SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION

ACTIVITIES.

(a) AUTHORITY.—The Secretary of Energy

may use any funds available to the Department of Energy pursuant to an authorization

in this title, including those funds authorized to be appropriated for advance planning

and construction design under sections 3101,

3102, and 3104, to perform planning, design,

and construction activities for any Department of Energy defense activity construction project that, as determined by the Secretary, must proceed expeditiously in order

to protect public health and safety, meet the

needs of national defense, or to protect property.

(b) LIMITATION.—The Secretary may not

exercise the authority under subsection (a)

in the case of any construction project until

the Secretary has submitted to the congressional defense committees a report on the

activities that the Secretary intends to

carry out under this section and the circumstances making such activities necessary.

(c) SPECIFIC AUTHORITY.—The requirement

of section 3125(b)(2) does not apply to emergency planning, design, and construction activities conducted under this section.

(d) REPORT.—The Secretary of Energy shall

report to the congressional defense committees any exercise of authority under this section.

SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL

SECURITY PROGRAMS OF THE DEPARTMENT OF ENERGY.

Subject to the provisions of appropriations

Acts and section 3121 of this title, amounts

appropriated pursuant to this title for management and support activities and for general plant projects are available for use,

when necessary, in connection with all national security programs of the Department

of Energy.

SEC. 3128. AVAILABILITY OF FUNDS.

When so specified in an appropriation Act,

amounts appropriated for operating expenses
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or for plant and capital equipment may remain available until expended.

Subtitle C—Program Authorizations,

Restrictions, and Limitations

SEC. 3131. AUTHORITY TO CONDUCT PROGRAM

RELATING TO FISSILE MATERIALS.

(a) AUTHORITY.—The Secretary of Energy

may conduct programs designed to improve

the protection, control, and accountability

of fissile materials in Russia.

(b) PRIOR NOTICE TO CONGRESS OF OBLIGATION OF FUNDS.—

(1) ANNUAL REQUIREMENT.—(A) Not less

than 15 days before any obligation of any

funds appropriated for any fiscal year for a

program described in subsection (a), the Secretary of Energy shall submit to the congressional committees specified in subparagraph

(B) a report on that proposed obligation for

that program for that fiscal year.

(B) The congressional committees referred

to in subparagraph (A) are the following:

(i) The Committee on Armed Services, the

Committee on Foreign Relations, and the

Committee on Appropriations of the Senate.

(ii) The Committee on National Security,

the Committee on International Relations,

and the Committee on Appropriations of the

House of Representatives.

(2) MATTERS TO BE SPECIFIED IN REPORTS.—

Each such report shall specify—

(A) the activities and forms of assistance

for which the Secretary of Energy plans to

obligate funds;

(B) the amount of the proposed obligation;

and

(C) the projected involvement (if any) of

any department or agency of the United

States (in addition to the Department of Energy) and of the private sector of the United

States in the activities and forms of assistance for which the Secretary of Energy plans

to obligate such funds.

SEC. 3132. NATIONAL IGNITION FACILITY.

None of the funds appropriated pursuant to

this title for the National Ignition Facility

may be obligated until—

(1) the Secretary of Energy concludes that

the construction of the National Ignition Facility will not impede the nuclear nonproliferation objectives of the United States;

and

(2) the Secretary of Energy notifies the

congressional defense committees of that

conclusion.

SEC. 3133. TRITIUM PRODUCTION.

(a) NEW TRITIUM PRODUCTION ACTIVITIES.—

(1) Of the amounts authorized to be appropriated in section 3101(b), not more than

$50,000,000 shall be available for a project to

provide a long-term source of tritium, subject to paragraph (2).

(2) The amount made available under paragraph (1) may not be used until such time as

the Secretary of Energy has completed a

record of decision on a tritium production

program and congressional hearings have

been conducted to determine the appropriate

option, in light of the national security

needs and nonproliferation and environmental consequences, for establishing a

long-term source of tritium.

(b) FISSILE MATERIALS CONTROL AND DISPOSITION.—Funds authorized to be appropriated for fiscal year 1996 for fissile materials storage and disposition activities shall

be available only for completing the evaluation and beginning the implementation of

the plutonium storage and disposition option, including the multipurpose advanced

light water reactor, in the amount of

$70,000,000, of which—

(1) $5,000,000 shall be made available to the

Idaho National Engineering Laboratory for

evaluation of plutonium conversion to oxide

fuel material in the multipurpose advanced

light water reactor; and

(2) sufficient funds shall be made available

for a complete consideration of the multipurpose advanced light water reactor in the

Department of Energy programmatic environmental impact statement.

Subtitle D—Other Matters

SEC. 3141. REPORT ON FOREIGN TRITIUM PURCHASES.

Not later than February 1, 1996, the President shall submit to Congress a report on the

feasibility of, the cost of, and the political,

legal, and other issues associated with purchasing tritium from various foreign suppliers in order to ensure an adequate supply

of tritium in the United States for nuclear

weapons.

SEC. 3142. STUDY ON NUCLEAR TEST READINESS

POSTURES.

Not later than February 15, 1996, the Secretary of Energy shall submit to Congress a

report on the cost of, and the programmatic

and other issues associated with, sustaining

an ability to conduct an underground nuclear test in 6, 18, and 36 months from the

date on which the President determines that

such a test is necessary to ensure the national security of the United States.

SEC. 3143. MASTER PLAN ON WARHEADS IN THE

ENDURING STOCKPILE.

(a) MASTER PLAN.—Not later than March

15, 1996, the President shall submit to Congress a master plan that describes in detail

how the Government plans to demonstrate,

by 2002—

(1) the capability to refabricate and certify

warheads in the enduring stockpile; and

(2) the capability to design, fabricate, and

certify new warheads.

(b) FORM OF PLAN.—The plan should be

submitted in classified and unclassified

forms.

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

(a) PROHIBITION ON INSPECTIONS.—The Secretary of Energy may not allow an inspection of a nuclear weapons facility by the

International Atomic Energy Agency until—

(1) the Secretary certifies to Congress that

no restricted data or classified information

will be revealed during such inspection; and

(2) a period of 30 days has passed since the

date on which such certification was made.

(b) RESTRICTED DATA DEFINED.—In this section, the term ‘‘restricted data’’ has the

meaning provided by section 11 y. of the

Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).

SEC. 3145. ACCELERATED SCHEDULE FOR ENVIRONMENTAL MANAGEMENT ACTIVITIES.

(a) ACCELERATED CLEANUP.—The Secretary

of Energy shall accelerate the schedule for

environmental management activities and

projects for any specific Department of Energy defense nuclear facility site if, in the

opinion of the Secretary, such an accelerated

schedule will result in substantial long-term

cost savings to the Federal Government and

speed up release of land for economic development.

(b) SITE SELECTION.—In selecting sites for

an accelerated schedule under subsection (a),

the Secretary shall give highest priority to

sites that are in close proximity to populated areas, that pose significant risk, and

that have the greatest potential to result in

privatization, commercialization, and economic development of unneeded facilities.

(c) ELIGIBILITY.—For purposes of subsection (a), environmental management activities and projects shall be eligible for an

accelerated schedule under subsection (a) if

the time for completion at the site of such

activities can be reduced by 50 percent or

more below the time established in the report of the Department of Energy Office of

Environmental Management titled ‘‘1995

Baseline Environmental Management Report’’, March 1995.

(d) SAVINGS PROVISION.—Nothing in this

section shall be construed as affecting a specific statutory requirement for a specific

project or as modifying or otherwise affecting applicable statutory or regulatory environmental restoration requirements, including substantive standards intended to protect public health and the environment.

TITLE XXXII—DEFENSE NUCLEAR

FACILITIES SAFETY BOARD

SEC. 3201. AUTHORIZATION.

There are authorized to be appropriated for

fiscal year 1996 $17,000,000 for the operation

of the Defense Nuclear Facilities Safety

Board under chapter 21 of the Atomic Energy

Act of 1954 (42 U.S.C. 2286 et seq.)

TITLE XXXIII—NATIONAL DEFENSE

STOCKPILE

SEC. 3301. FISCAL YEAR 1996 AUTHORIZED USES

OF STOCKPILE FUNDS.

(a) OBLIGATION OF STOCKPILE FUNDS.—During fiscal year 1996, the National Defense

Stockpile Manager may obligate up to

$77,100,000 of the funds in the National Defense Stockpile Transaction Fund established under subsection (a) of section 9 of the

Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h) for the authorized

uses of such funds under subsection (b)(2) of

such section.

(b) ADDITIONAL OBLIGATIONS.—The National Defense Stockpile Manager may obligate amounts in excess of the amount specified in subsection (a) if the National Defense

Stockpile Manager notifies Congress that extraordinary or emergency conditions necessitate the additional obligations. The National Defense Stockpile Manager may make

the additional obligations described in the

notification after the end of the 45-day period beginning on the date Congress receives

the notification.

(c) LIMITATIONS.—The authorities provided

by this section shall be subject to such limitations as may be provided in appropriations

Acts.

SEC. 3302. PREFERENCE FOR DOMESTIC

UPGRADERS IN DISPOSAL OF CHROMITE AND MANGANESE ORES AND

CHROMIUM FERRO AND MANGANESE METAL ELECTROLYTIC.

(a) PREFERENCE FOR DOMESTIC UPGRADING.—In offering to enter into agreements

pursuant to any provision of law for the disposal from the National Defense Stockpile of

chromite and manganese ores of metallurgical grade or chromium ferro and manganese metal electrolytic, the President

shall give a right of first refusal on all such

offers to domestic ferroalloy upgraders.

(b) DOMESTIC FERROALLOY UPGRADER DEFINED.—For purposes of this section, the

term ‘‘domestic ferroalloy upgrader’’ means

a company or other business entity that, as

determined by the President—

(1) is engaged in (or is capable of engaging

in) operations to upgrade chromite or manganese ores of metallurgical grade or chromium ferro and manganese metal electrolytic; and

(2) conducts a significant level of its research, development, engineering, and upgrading operations in the United States.

(c) NATIONAL DEFENSE STOCKPILE DEFINED.—For purposes of this section, the

term ‘‘National Defense Stockpile’’ means

the stockpile provided for in section 4 of the

Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c).

SEC. 3303. RESTRICTIONS ON DISPOSAL OF MANGANESE FERRO.

(a) DISPOSAL OF LOWER GRADE MATERIAL

FIRST.—The President may not dispose of

high carbon manganese ferro in the National

Defense Stockpile that meets the National

Defense Stockpile classification of Grade

One, Specification 30(a), as revised on May

22, 1992, until completing the disposal of all
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manganese ferro in the National Defense

Stockpile that does not meet such classification. The President may not reclassify manganese ferro in the National Defense Stockpile after the date of the enactment of this

Act.

(b) REQUIREMENT FOR DOMESTIC UPGRADING.—Manganese ferro in the National Defense Stockpile that does not meet the classification specified in subsection (a) shall

only be sold for domestic remelting in a submerged arc ferromanganese furnace.

(c) NATIONAL DEFENSE STOCKPILE DEFINED.—For purposes of this section, the

term ‘‘National Defense Stockpile’’ means

the stockpile provided for in section 4 of the

Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c).

SEC. 3304. TITANIUM INITIATIVE TO SUPPORT

BATTLE TANK UPGRADE PROGRAM.

(a) TRANSFER OF TITANIUM.—During each of

the fiscal years 1996 through 2003, the Secretary of Defense shall transfer from stocks

of the National Defense Stockpile up to 250

short tons of titanium sponge to the Secretary of the Army for use in the weight reduction portion of the main battle tank upgrade program. Transfers under this section

shall be without charge to the Army, except

that the Secretary of the Army shall pay all

transportation and related costs incurred in

connection with the transfer.

(b) NATIONAL DEFENSE STOCKPILE DEFINED.—For purposes of this section, the

term ‘‘National Defense Stockpile’’ means

the stockpile provided for in section 4 of the

Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c).

TITLE XXXIV—NAVAL PETROLEUM

RESERVES

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

There is hereby authorized to be appropriated to the Secretary of Energy

$101,028,000 for fiscal year 1996 for the purpose

of carrying out activities under chapter 641

of title 10, United States Code, relating to

the naval petroleum reserves (as defined in

section 7420(2) of such title). Funds appropriated pursuant to such authorization shall

remain available until expended.

SEC. 3402. PRICE REQUIREMENT ON SALE OF

CERTAIN PETROLEUM DURING FISCAL YEAR 1996.

Notwithstanding section 7430(b)(2) of title

10, United States Code, during fiscal year

1996, any sale of any part of the United

States share of petroleum produced from

Naval Petroleum Reserves Numbered 1, 2,

and 3 shall be made at a price not less than

90 percent of the current sales price, as estimated by the Secretary of Energy, of comparable petroleum in the same area.

SEC. 3403. SALE OF NAVAL PETROLEUM RESERVE

NUMBERED 1 (ELK HILLS).

(a) SALE OF ELK HILLS UNIT REQUIRED.—

Chapter 641 of title 10, United States Code, is

amended by inserting after section 7421 the

following new section:

‘‘§ 7421a. Sale of Naval Petroleum Reserve

Numbered 1 (Elk Hills)

‘‘(a) SALE REQUIRED.—(1) Notwithstanding

any other provision of this chapter, the Secretary shall sell all right, title, and interest

of the United States in and to lands owned or

controlled by the United States inside Naval

Petroleum Reserve Numbered 1, commonly

referred to as the Elk Hills Unit, located in

Kern County, California, and established by

Executive order of the President, dated September 2, 1912. Within one year after the effective date, the Secretary shall enter into

one or more contracts for the sale of all of

the interest of the United States in the reserve.

‘‘(2) In this section:

‘‘(A) The term ‘reserve’ means Naval Petroleum Reserve Numbered 1.

‘‘(B) The term ‘unit plan contract’ means

the unit plan contract between equity owners of the lands within the boundaries of

Naval Petroleum Reserve Numbered 1 entered into on June 19, 1944.

‘‘(C) The term ‘effective date’ means the

date of the enactment of the National Defense Authorization Act for Fiscal Year 1996.

‘‘(b) EQUITY FINALIZATION.—(1) Not later

than five months after the effective date, the

Secretary shall finalize equity interests of

the known oil and gas zones in Naval Petroleum Reserve Numbered 1 in the manner provided by this subsection.

‘‘(2) The Secretary shall retain the services

of an independent petroleum engineer, mutually acceptable to the equity owners, who

shall prepare a recommendation on final equity figures. The Secretary may accept the

recommendation of the independent petroleum engineer for final equity in each known

oil and gas zone and establish final equity interest in the Naval Petroleum Reserve Numbered 1 in accordance with such recommendation, or the Secretary may use

such other method to establish final equity

interest in the reserve as the Secretary considers appropriate.

‘‘(3) If, on the effective date, there is an ongoing equity redetermination dispute between the equity owners under section 9(b) of

the unit plan contract, such dispute shall be

resolved in the manner provided in the unit

plan contract within five months after the

effective date. Such resolution shall be considered final for all purposes under this section.

‘‘(c) TIMING AND ADMINISTRATION OF

SALE.—(1) Not later than two months after

the effective date, the Secretary shall retain

the services of five independent experts in

the valuation of oil and gas fields to conduct

separate assessments, in a manner consistent with commercial practices, of the

fair market value of the interest of the

United States in Naval Petroleum Reserve

Numbered 1. In making their assessments,

the independent experts shall consider

(among other factors) all equipment and facilities to be included in the sale, the net

present value of the reserve, and the net

present value of the anticipated revenue

stream that the Secretary determines the

Treasury would receive from the reserve if

the reserve were not sold, adjusted for any

anticipated increases in tax revenues that

would result if the reserve were sold. The

independent experts shall complete their assessments within five months after the effective date. In setting the minimum acceptable price for the reserve, the Secretary shall

consider the average of the five assessments

or, if more advantageous to the Government,

the average of three assessments after excluding the high and low assessments.

‘‘(2) Not later than two months after the

effective date, the Secretary shall retain the

services of an investment banker to independently administer, in a manner consistent with commercial practices and in a

manner that maximizes sale proceeds to the

Government, the sale of Naval Petroleum

Reserve Numbered 1 under this section.

‘‘(3) Not later than five months after the

effective date, the sales administrator selected under paragraph (2) shall complete a

draft contract for the sale of Naval Petroleum Reserve Numbered 1, which shall accompany the invitation for bids and describe

the terms and provisions of the sale of the

interest of the United States in the reserve.

The draft contract shall identify all equipment and facilities to be included in the sale.

The draft contract, including the terms and

provisions of the sale of the interest of the

United States in the reserve, shall be subject

to review and approval by the Secretary, the

Secretary of the Treasury, and the Director

of the Office of Management and Budget.

‘‘(4) Not later than six months after the effective date, the Secretary shall publish an

invitation for bids for the purchase of the reserve.

‘‘(5) Not later than nine months after the

effective date, the Secretary shall accept the

highest responsible offer for purchase of the

interest of the United States in Naval Petroleum Reserve Numbered 1 that meets or exceeds the minimum acceptable price determined under paragraph (1).

‘‘(d) FUTURE LIABILITIES.—The United

States shall hold harmless and fully indemnify the purchaser of the interest of the

United States in Naval Petroleum Reserve

Numbered 1 from and against any claim or

liability as a result of ownership in the reserve by the United States.

‘‘(e) TREATMENT OF STATE OF CALIFORNIA

CLAIM.—(1) All claims against the United

States by the State of California or the

Teachers’ Retirement Fund of the State of

California with respect to land within the

Naval Petroleum Reserve Numbered 1 or production or proceeds of sale from the reserve

shall be resolved only as follows:

‘‘(A) A payment from funds provided for

this purpose in advance in appropriation

Acts.

‘‘(B) A grant of nonrevenue generating

land in lieu of such a payment pursuant to

sections 2275 and 2276 of the Revised Statutes

of the United States (43 U.S.C. 851 and 852).

‘‘(C) Any other means that would not be inconsistent with the Congressional Budget

Act of 1974 (2 U.S.C. 621 et seq.).

‘‘(D) Any combination of subparagraphs

(A), (B), and (C).

‘‘(2) The value of any payment, grant, or

means (or combination thereof) under paragraph (1) may not exceed an amount equal to

seven percent of the proceeds from the sale

of the reserve, after deducting the costs incurred to conduct the sale.

‘‘(f) PRODUCTION ALLOCATION FOR SALE.—(1)

As part of the contract for purchase of Naval

Petroleum Reserve Numbered 1, the purchaser of the interest of the United States in

the reserve shall agree to make up to 25 percent of the purchaser’s share of annual petroleum production from the purchased lands

available for sale to small refiners, which do

not have their own adequate sources of supply of petroleum, for processing or use only

in their own refineries. None of the reserved

production sold to small refiners may be resold in kind. The purchaser of the reserve

may reduce the quantity of petroleum reserved under this subsection in the event of

an insufficient number of qualified bids. The

seller of this petroleum production has the

right to refuse bids that are less than the

prevailing market price of comparable oil.

‘‘(2) The purchaser of the reserve shall also

agree to ensure that the terms of every sale

of the purchaser’s share of annual petroleum

production from the purchased lands shall be

so structured as to give full and equal opportunity for the acquisition of petroleum by all

interested persons, including major and independent oil producers and refiners alike.

‘‘(g) MAINTAINING ELK HILLS UNIT PRODUCTION.—Until the sale of Naval Petroleum Reserve Numbered 1 is completed under this

section, the Secretary shall continue to

produce the reserve at the maximum daily

oil or gas rate from a reservoir, which will

permit maximum economic development of

the reservoir consistent with sound oil field

engineering practices in accordance with

section 3 of the unit plan contract. The definition of maximum efficient rate in section

7420(6) of this title shall not apply to the reserve.

‘‘(h) EFFECT ON EXISTING CONTRACTS.—(1)

In the case of any contract, in effect on the

effective date, for the purchase of production

from any part of the United States’ share of

Naval Petroleum Reserve Numbered 1, the
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sale of the interest of the United States in

the reserve shall be subject to the contract

for a period of three months after the closing

date of the sale or until termination of the

contract, whichever occurs first. The term of

any contract entered into after the effective

date for the purchase of such production

shall not exceed the anticipated closing date

for the sale of the reserve.

‘‘(2) The Secretary shall exercise the termination procedures provided in the contract between the United States and Bechtel

Petroleum Operation, Inc., Contract Number

DE–ACO1–85FE60520 so that the contract terminates not later than the date of closing of

the sale of Naval Petroleum Reserve Numbered 1 under subsection (c).

‘‘(3) The Secretary shall exercise the termination procedures provided in the unit

plan contract so that the unit plan contract

terminates not later than the date of closing

of the sale of reserve under subsection (c).

‘‘(i) EFFECT ON ANTITRUST LAWS.—Nothing

in this section shall be construed to alter the

application of the antitrust laws of the

United States to the purchaser of Naval Petroleum Reserve Numbered 1 or to the lands

in the reserve subject to sale under this section upon the completion of the sale.

‘‘(j) PRESERVATION OF PRIVATE RIGHT,

TITLE, AND INTEREST.—Nothing in this section shall be construed to adversely affect

the ownership interest of any other entity

having any right, title, and interest in and to

lands within the boundaries of Naval Petroleum Reserve Numbered 1 and which are subject to the unit plan contract.

‘‘(k) CONGRESSIONAL NOTIFICATION.—Section 7431 of this title shall not apply to the

sale of Naval Petroleum Reserve Numbered 1

under this section. However, the Secretary

may not enter into a contract for the sale of

the reserve until the end of the 31-day period

beginning on the date on which the Secretary notifies the Committee on Armed

Services of the Senate and the Committee on

National Security and the Committee on

Commerce of the House of Representatives of

the proposed sale.’’.

(b) CLERICAL AMENDMENT.—The table of

sections at the beginning of such chapter is

amended by inserting after the item relating

to section 7421 the following new item:

‘‘7421a. Sale of Naval Petroleum Reserve

Numbered 1 (Elk Hills).’’.

SEC. 3404. STUDY REGARDING FUTURE OF NAVAL

PETROLEUM RESERVES (OTHER

THAN NAVAL PETROLEUM RESERVE

NUMBERED 1).

(a) STUDY REQUIRED.—The Secretary of Energy shall conduct a study to determine

which of the following options regarding the

naval petroleum reserves represents the

most cost-effective option for the United

States:

(1) Retention and operation of the naval

petroleum reserves by the Secretary under

chapter 641 of title 10, United States Code.

(2) Transfer of all or a part of the naval petroleum reserves to the jurisdiction of another Federal agency.

(3) Lease of the naval petroleum reserves.

(4) Sale of the interest of the United States

in the naval petroleum reserves.

(b) CONDUCT OF STUDY.—The Secretary

shall retain an independent petroleum consultant to conduct the study.

(c) CONSIDERATIONS UNDER STUDY.—An examination of the benefits to be derived by

the United States from the sale of the naval

petroleum reserves shall include an assessment and estimate, in a manner consistent

with commercial practices, of the fair market value of the interest of the United States

in the naval petroleum reserves. An examination of the benefits to be derived by the

United States from the lease of the naval petroleum reserves shall consider full exploration, development, and production of petroleum products in the naval petroleum reserves, with a royalty payment to the United

States.

(d) REPORT REGARDING STUDY.—Not later

than December 31, 1995, the Secretary shall

submit to Congress a report describing the

results of the study and containing such recommendations as the Secretary considers

necessary to implement the most cost-effective option identified in the study.

(e) NAVAL PETROLEUM RESERVES DEFINED.—For purposes of this section, the

term ‘‘naval petroleum reserves’’ has the

meaning given that term in section 7420(2) of

title 10, United States Code, except that such

term does not include Naval Petroleum Reserve Numbered 1.

TITLE XXXV—PANAMA CANAL

COMMISSION

Subtitle A—Authorization of Appropriations

SEC. 3501. SHORT TITLE.

This subtitle may be cited as the ‘‘Panama

Canal Commission Authorization Act for

Fiscal Year 1996’’.

SEC. 3502. AUTHORIZATION OF EXPENDITURES.

(a) IN GENERAL.—Subject to subsection (b),

the Panama Canal Commission is authorized

to make such expenditures within the limits

of funds and borrowing authority available

to it in accordance with law, and to make

such contracts and commitments without regard to fiscal year limitations, as may be

necessary under the Panama Canal Act of

1979 (22 U.S.C. 3601 et seq.) for the operation,

maintenance, and improvement of the Panama Canal for fiscal year 1996.

(b) LIMITATIONS.—For fiscal year 1996, the

Panama Canal Commission may expend from

funds in the Panama Canal Revolving Fund

not more than $50,741,000 for administrative

expenses, of which not more than—

(1) $11,000 may be used for official reception

and representation expenses of the Supervisory Board of the Commission;

(2) $5,000 may be used for official reception

and representation expenses of the Secretary

of the Commission; and

(3) $30,000 may be used for official reception

and representation expenses of the Administrator of the Commission.

(c) REPLACEMENT VEHICLES.—Funds available to the Panama Canal Commission shall

be available for the purchase of not to exceed

38 passenger motor vehicles built in the

United States (including large heavy-duty

vehicles to be used to transport Commission

personnel across the isthmus of Panama). A

vehicle may be purchased with such funds

only as necessary to replace another passenger motor vehicle of the Commission.

SEC. 3503. EXPENDITURES IN ACCORDANCE WITH

OTHER LAWS.

Expenditures authorized under this subtitle may be made only in accordance with

the Panama Canal Treaties of 1977 and any

law of the United States implementing those

treaties.

Subtitle B—Reconstitution of Commission as

Government Corporation

SEC. 3521. SHORT TITLE.

This subtitle may be cited as the ‘‘Panama

Canal Amendments Act of 1995’’.

SEC. 3522. RECONSTITUTION OF COMMISSION AS

GOVERNMENT CORPORATION.

Section 1101 of the Panama Canal Act of

1979 (22 U.S.C. 3611) is amended to read as follows:

‘‘ESTABLISHMENT, PURPOSES, OFFICES, AND

RESIDENCE OF THE COMMISSION

‘‘SEC. 1101. (a) For the purposes of managing, operating, and maintaining the Panama Canal and its complementary works, installations and equipment, and of conducting

operations incident thereto, in accordance

with the Panama Canal Treaty of 1977 and

related agreements, the Panama Canal Commission (hereinafter in this Act referred to

as the ‘Commission’) is established as a

wholly owned government corporation (as

that term is used in chapter 91 of title 31,

United States Code) within the executive

branch of the Government of the United

States. The authority of the President with

respect to the Commission shall be exercised

through the Secretary of Defense.

‘‘(b) The principal office of the Commission

shall be located in the Republic of Panama

in one of the areas made available for use of

the United States under the Panama Canal

Treaty of 1977 and related agreements, but

the Commission may establish branch offices

in such other places as it deems necessary or

appropriate for the conduct of its business.

Within the meaning of the laws of the United

States relating to venue in civil actions, the

Commission is an inhabitant and resident of

the District of Columbia and the eastern judicial district of Louisiana.’’.

SEC. 3523. SUPERVISORY BOARD.

Section 1102 of the Panama Canal Act of

1979 (22 U.S.C. 3612) is amended by striking so

much as precedes subsection (b) and inserting the following:

‘‘SUPERVISORY BOARD

‘‘SEC. 1102. (a) The Commission shall be supervised by a Board composed of nine members, one of whom shall be the Secretary of

Defense or an officer of the Department of

Defense designated by the Secretary. Not

less than five members of the Board shall be

nationals of the United States and the remaining members of the Board shall be nationals of the Republic of Panama. Three

members of the Board who are nationals of

the United States shall hold no other office

in, and shall not be employed by, the Government of the United States, and shall be

chosen for the independent perspective they

can bring to the Commission’s affairs. Members of the Board who are nationals of the

United States shall cast their votes as directed by the Secretary of Defense or a designee of the Secretary of Defense.’’.

SEC. 3524. INTERNATIONAL ADVISORS.

Section 1102 of the Panama Canal Act of

1979 (22 U.S.C. 3612) is amended by adding at

the end the following new subsection:

‘‘(d)(1) In order to enhance the prestige of

the Commission in the world shipping community and allow for the exchange of varied

perspectives between the Board and distinguished international guests in the important deliberations of the Commission, the

Government of the United States and the Republic of Panama may each invite to attend

meetings of the Board, as a designated international advisor to the Board, one individual

chosen for the independent perspective that

individual can bring to the Commission’s affairs, and who—

‘‘(A) is not a citizen of Panama;

‘‘(B) does not represent any user or customer of the Panama Canal, or any particular interest group or nation; and

‘‘(C) does not have any financial interest

which could constitute an actual or apparent

conflict with regard to the relationship of

the individual with the Board of the Commission.

‘‘(2) Such designated international advisors

may be compensated by the Commission in

the same manner and under the same circumstances as apply under subsection (b)

with regard to members of the Board. Such

designated international advisors shall have

no vote on matters pending before the

Board.’’.

SEC. 3525. GENERAL AND SPECIFIC POWERS OF

COMMISSION.

The Panama Canal Act of 1979 (22 U.S.C.

3601 et seq.) is amended by inserting after

section 1102 the following new sections:
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1995 T80.11

‘‘GENERAL POWERS OF THE COMMISSION

‘‘SEC. 1102a. (a) The Commission, subject to

the Panama Canal Treaty of 1977 and related

agreements, and to chapter 91 of title 31,

United States Code, popularly known as the

Government Corporation Control Act—

‘‘(1) may adopt, alter, and use a corporate

seal, which shall be judicially noticed;

‘‘(2) may by action of the Board of Directors adopt, amend, and repeal bylaws governing the conduct of its general business

and the performance of the powers and duties granted to or imposed upon it by law;

‘‘(3) may sue and be sued in its corporate

name, except that—

‘‘(A) its amenability to suit is limited by

Article VIII of the Panama Canal Treaty of

1977, section 1401 of this Act, and otherwise

by law;

‘‘(B) an attachment, garnishment, or similar process may not be issued against salaries or other moneys owed by the Commission to its employees except as provided by

section 5520a of title 5, United States Code,

and section 459, 461, and 462 of the Social Security Act (42 U.S.C. 659, 661, 662), or as otherwise specifically authorized by the laws of

the United States; and

‘‘(C) it is exempt from the payment of interest on claims and judgments;

‘‘(4) may enter into contracts, leases,

agreements, or other transactions; and

‘‘(5) may determine the character of, and

necessity for, its obligations and expenditures and the manner in which they shall be

incurred, allowed, and paid, and may incur,

allow, and pay them, subject to pertinent

provisions of law generally applicable to

Government corporations.

‘‘(b) The Commission shall have the priority of the Government of the United States

in the payment of debts out of bankrupt estates.

‘‘SPECIFIC POWERS OF COMMISSION

‘‘SEC. 1102b. (a) Subject to the Panama

Canal Treaty of 1977 and related agreements,

and to chapter 91 of title 31, United States

Code, popularly known as the Government

Corporation Control Act, the Commission

may—

‘‘(1) manage, operate, and maintain the

Panama Canal;

‘‘(2) construct or acquire, establish, maintain, and operate docks, wharves, piers,

shoreline facilities, shops, yards, marine

railways, salvage and towing facilities, fuelhandling facilities, motor transportation facilities, power systems, water systems, a

telephone system, construction facilities,

living quarters and other buildings, warehouses, storehouses, a printing plant, and

manufacturing, processing, or service facilities in connection therewith, recreational facilities, and other activities, facilities, and

appurtenances necessary and appropriate for

the accomplishment of the purposes of this

Act;

‘‘(3) use the United States mails in the

same manner and under the same conditions

as the executive departments of the Federal

Government; and

‘‘(4) take such actions as are necessary or

appropriate to carry out the powers specifically conferred upon it.’’.

SEC. 3526. CONGRESSIONAL REVIEW OF BUDGET.

Section 1302 of the Panama Canal Act of

1979 (22 U.S.C. 3712) is amended—

(1) in subsection (c)(1) by striking ‘‘and

subject to paragraph (2)’’;

(2) by striking paragraph (2);

(3) by redesignating paragraph (3) as paragraph (2); and

(4) by amending subsection (e) to read as

follows:

‘‘(e) In accordance with section 9104 of title

31, United States Code, the Congress shall review the annual budget of the Commission.’’.

SEC. 3527. AUDITS.

Section 1313 of the Panama Canal Act of

1979 (22 U.S.C. 3723) is amended—

(1) by striking the heading for the section

and inserting the following:

‘‘AUDITS’’;

(2) in subsection (a) by striking ‘‘Financial

transactions’’ and inserting ‘‘Subject to subsection (d), financial transactions’’;

(3) in subsection (b) in the first sentence by

striking ‘‘The Comptroller General’’ and inserting ‘‘Subject to subsection (d), the Comptroller General’’; and

(4) by adding at the end the following new

subsections:

‘‘(d) At the discretion of the Board provided for in section 1102, the Commission

may hire independent auditors to perform, in

lieu of the Comptroller General, the audit

and reporting functions prescribed in subsections (a) and (b).

‘‘(e) In addition to auditing the financial

statements of the Commission, the independent auditor shall, in accordance with

standards for an examination of a financial

forecast established by the American Institute of Certified Public Accountants, examine and report on the Commission’s financial

forecast that it will be in a position to meet

its financial liabilities on December 31,

1999.’’.

SEC. 3528. PRESCRIPTION OF MEASUREMENT

RULES AND RATES OF TOLLS.

Section 1601 of the Panama Canal Act of

1979 (22 U.S.C. 3791) is amended to read as follows:

‘‘PRESCRIPTION OF MEASUREMENT RULES AND

RATES OF TOLLS

‘‘SEC. 1601. The Commission may, subject

to the provisions of this Act, prescribe and

from time to time change—

‘‘(1) the rules for the measurement of vessels for the Panama Canal; and

‘‘(2) the tolls that shall be levied for use of

the Panama Canal.’’.

SEC. 3529. PROCEDURES FOR CHANGES IN RULES

OF MEASUREMENT AND RATES OF

TOLLS.

Section 1604 of the Panama Canal Act of

1979 (22 U.S.C. 3794) is amended—

(1) in subsection (a) in the first sentence by

striking ‘‘1601(a)’’ and inserting ‘‘1601’’;

(2) by amending subsection (c) to read as

follows:

‘‘(c) After the proceedings have been conducted pursuant to subsections (a) and (b) of

this section, the Commission may change

the rules of measurement or rates of tolls, as

the case may be. The Commission shall, however, publish notice of such change in the

Federal Register not less than 30 days before

the effective date of the change.’’; and

(3) by striking subsections (d) and (e) and

redesignating subsection (f) as subsection

(d).

SEC. 3530. MISCELLANEOUS TECHNICAL AMENDMENTS.

The Panama Canal Act of 1979 is

amended—

(1) in section 1205 (22 U.S.C. 3645) in the last

sentence by striking ‘‘appropriation’’ and inserting ‘‘fund’’;

(2) in section 1303 (22 U.S.C. 3713) by striking ‘‘The authority of this section may not

be used for administrative expenses.’’;

(3) in section 1321(d) (22 U.S.C. 3731(d)) in

the second sentence by striking ‘‘appropriations or’’;

(4) in section 1401(c) (22 U.S.C. 3761(c)) by

striking ‘‘appropriated for or’’;

(5) in section 1415 (22 U.S.C. 3775) by striking ‘‘appropriated or’’; and

(6) in section 1416 (22 U.S.C. 3776) in the

third sentence by striking ‘‘appropriated

or’’.

SEC. 3531. CONFORMING AMENDMENT TO TITLE

31, UNITED STATES CODE.

Section 9101(3) of title 31, United States

Code, is amended by adding at the end the

following:

‘‘(P) the Panama Canal Commission.’’.

The bill, as amended, was ordered to

be engrossed and read a third time, was

read a third time by title.

Mr. DELLUMS moved to recommit

the bill to the Committee on Armed

Services with instructions to report

the bill back to the House forthwith

with the following amendments:

Page 38, line 18, insert ‘‘(a) IN GENERAL.—’’ before ‘‘Of the amounts’’.

Page 38, after line 22, insert the following:

(b) NMD REDUCTION.—The amounts provided in subsection (a) and in section 201(4)

are each hereby reduced by $100,000,000, to be

derived from amounts for the National Missile Defense program.

At the end of title III (page 153, after line

25), insert the following new section:

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

PERSONNEL.

(a) PROVISION OF DEPENDENT EDUCATION

ASSISTANCE (IMPACT AID).—(1) In the case of

students described in section 8003(a)(1)(D) of

the Elementary and Secondary Education

Act of 1965 (20 U.S.C. 7703(a)(1)(D)), the Secretary of Defense shall provide funds to local

educational agencies that received payments

for these students from the Department of

Education in fiscal year 1994 or 1995 under

the Act of September 30, 1950 (Public Law

874, 81st Congress) or title VIII of the Elementary and Secondary Education Act of

1965 (20 U.S.C. 7701 et seq.).

(2) Subject to the availability of appropriations for this purpose, funds shall be paid

under this section in fiscal year 1996. However, the Secretary of Defense may use the

authority provided by this section only in

the event that payments under section 8003

of the Elementary and Secondary Education

Act of 1965 (20 U.S.C. 7703) for a fiscal year on

behalf of students described in subsection

(a)(1)(D) of such section are not made in a

total amount equal to at least the level of

funding for fiscal year 1995 under such section for such students.

(b) COMPUTATION OF BASIC PAYMENT.—Each

local educational agency described in subsection (a) shall be eligible for basic payments, which shall be computed for each

year by multiplying—

(1) the amount determined by dividing—

(A) the amount of funds received by the

local educational agency in the second preceding fiscal year under this subsection, section 3(b)(3) of the Act of September 30, 1950

(Public Law 874, 81st Congress), or section

8003(b) of the Elementary and Secondary

Education Act of 1965 (20 U.S.C. 7703(b)); by

(B) the number of students described in

section 8003(a)(1)(D) of such Act in average

daily attendance in the second preceding fiscal year; and

(2) the number of such students in average

daily attendance of the local educational

agency in the fiscal year preceding the fiscal

year in which the payment is being made.

(c) COMPUTATION OF DISABILITY PAYMENT.—

Each local educational agency described in

subsection (a) shall also be eligible for disability payments for students described in

section 8003(d)(1)(B) of the Elementary and

Secondary Education Act of 1965 (20 U.S.C.

7703(d)(1)(B)). The payment required by this

subsection shall be computed for each year

by multiplying—

(1) the amount determined by dividing—

(A) the amount of funds received by the

local educational agency during the second
JOURNAL OF THE

1006

T80.12 JUNE 15

preceding fiscal year under this subsection,

section 3(d)(2)(C) of the Act of September 30,

1950 (Public Law 874, 81st Congress), or section 8003(d) of the Elementary and Secondary

Education Act of 1965 (20 U.S.C. 7703(d)); by

(B) the number of students described in

section 8003(d)(1)(B) of such Act in average

daily attendance in the second preceding fiscal year; and

(2) the number of such students in average

daily attendance of each local educational

agency in the fiscal year preceding the fiscal

year in which the payment is being made.

(d) HEAVILY IMPACTED ASSISTANCE.—(1)

Each local educational agency described in

subsection (a) shall also be eligible for heavily impacted assistance if—

(A) the local educational agency—

(i) had an enrollment of students described

in subparagraphs (B) and (D) of section

8003(a)(1) of the Elementary and Secondary

Education Act of 1965 (20 U.S.C. 7703(a)(1))

during the previous fiscal year, the number

of which constituted at least 40 percent of

the total student enrollment of such agency;

and

(ii) has a tax rate for general fund purposes

which is at least 95 percent of the average

tax rate for general fund purposes of comparable educational agencies in the State; or

(B) the local educational agency—

(i) had an enrollment of students described

in subparagraphs (B) and (D) of section

8003(a)(1) of the Elementary and Secondary

Education Act of 1965 (20 U.S.C. 7703(a)(1))

during the previous fiscal year, the number

of which constituted at least 35 percent of

the total student enrollment of such agency;

and

(ii) has a tax rate for general fund purposes

which is at least 125 percent of the average

tax rate for general fund purposes of comparable educational agencies in the State.

(2)(A) For each local educational agency

described in paragraph (1), payments for each

year shall be computed by first determining

the greater of—

(i) the average per-pupil expenditure of the

State in which the agency is located; or

(ii) the average per-pupil expenditure of all

the States.

(B) The Secretary shall next subtract from

the amount determined under subparagraph

(A) the average amount of State aid per

pupil received for that year by each local

educational agency described in paragraph

(1).

(C) For each local educational agency described in paragraph (1), the Secretary shall

multiply the amount determined under subparagraph (B) by the total number of students described in subparagraphs (B) and (D)

of section 8003(a)(1) of the Elementary and

Secondary Education Act of 1965 (20 U.S.C.

7703(a)(1)) in average daily attendance for

that year.

(D) Finally, the Secretary shall reduce the

amount determined under subparagraph (C)

for a local educational agency for a fiscal

year by the total amount of—

(i) all payments the local educational

agency receives under subsections (b) and (c)

for that year; and

(ii) any payments actually received under

section 8003 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703)

for that year.

(3) Notwithstanding any other provision of

this section, a local educational agency that

actually receives funds under section 8003(f)

of the Elementary and Secondary Education

Act of 1965 (20 U.S.C. 7703(f)) for a fiscal year

shall be eligible to receive funds under this

subsection only after the full amount computed under paragraph (2) has been paid to

all local educational agencies described in

paragraph (1) that do not receive funds under

such section for that fiscal year.

(4) For purposes of providing assistance

under this subsection, the Secretary shall

use student and revenue data from the local

educational agency for the fiscal year for

which the agency is applying for assistance.

(5) For purposes of this subsection, the

Secretary shall determine the current year

State average per-pupil expenditure by increasing or decreasing the per-pupil expenditure data for the second preceding fiscal year

by the same percentage increase or decrease

reflected between the per-pupil expenditure

data for the fourth preceding fiscal year and

the per-pupil expenditure data for the second

preceding fiscal year.

(6) For purposes of this subsection, the

term ‘‘average per-pupil expenditure’’ means

the aggregate current expenditures of all

local educational agencies in the State, divided by the total number of children in average daily attendance for whom such agencies provided free public education.

(e) PROHIBITION ON MULTIPLE PAYMENTS.—

(1) Amounts received by a local educational

agency under subsection (d) in a fiscal year,

when added to amounts actually received

under section 8003(f) of the Elementary and

Secondary Education Act of 1965 (20 U.S.C.

7703(f)) for that year, may not exceed the

amount the agency would have received

under such section had assistance under such

section been fully funded.

(2) Amounts received by a local educational agency under subsection (c) in a fiscal year, when added to amounts actually received under section 8003(d) of the Elementary and Secondary Education Act of 1965 (20

U.S.C. 7703(d)) for that year, may not exceed

the amount the agency would have received

under such section had assistance under such

section been fully funded.

(3) Amounts received by a local educational agency under subsection (b) in a fiscal year, when added to amounts actually received under section 8003(b) of the Elementary and Secondary Education Act of 1965 (20

U.S.C. 7703(b)) for that year, may not exceed

the amount the agency would have received

under such section had assistance under such

section been fully funded.

(f) PRORATION OF AMOUNTS.—If necessary

due to insufficient funds to carry out this

section, the Secretary shall ratably reduce

payments under subsections (b), (c), and (d).

(g) COOPERATION.—The Secretary of Education shall assist the Secretary of Defense

in gathering such information from the local

education agencies and State educational

agencies as may be needed in order to carry

out this section.

(h) FUNDS FOR FISCAL YEAR 1996.—The

amount provided in section 301(5) for operation and maintenance for Defense-wide activities is hereby increased by $100,000,000. Of

the funds corresponding to such increase—

(1) $50,000,000 shall be available for payments under subsection (b) in fiscal year

1996;

(2) $10,000,000 shall be available for payments under subsection (c) in fiscal year

1996; and

(3) $40,000,000 shall be available for payments under subsection (d) in fiscal year

1996.

After debate,

By unanimous consent, the previous

question was ordered on the motion to

recommit with instructions.

The question being put, viva voce,

Will the House recommit said bill

with instructions?

The SPEAKER pro tempore, Mr.

HAYWORTH, announced that the nays

had it.

Mr. DELLUMS demanded a recorded

vote on the said motion to recommit,

which demand was supported by onefifth of a quorum, so a recorded vote

was ordered.

The vote was taken by electronic device.

It was decided in the Yeas ....... 188 ! negative ....................... Nays ...... 239

T80.12 [Roll No. 384]

AYES—188

Abercrombie

Ackerman

Andrews

Baesler

Baldacci

Barcia

Barrett (WI)

Becerra

Beilenson

Bentsen

Berman

Bishop

Bonior

Borski

Boucher

Brewster

Browder

Brown (CA)

Brown (FL)

Brown (OH)

Bryant (TX)

Cardin

Christensen

Clay

Clayton

Clement

Clyburn

Coleman

Collins (IL)

Collins (MI)

Condit

Conyers

Costello

Coyne

Cramer

Danner

de la Garza

DeFazio

DeLauro

Dellums

Deutsch

Dicks

Dingell

Dixon

Doggett

Dooley

Durbin

Edwards

Engel

Eshoo

Evans

Farr

Fattah

Fazio

Fields (LA)

Filner

Foglietta

Ford

Frank (MA)

Frost

Furse

Gejdenson

Gephardt

Geren

Gibbons

Gonzalez

Gordon

Green

Gutierrez

Hall (OH)

Hamilton

Harman

Hastings (FL)

Hefner

Hilliard

Hinchey

Holden

Hoyer

Jackson-Lee

Jacobs

Jefferson

Johnson (SD)

Johnson, E. B.

Johnston

Kaptur

Kennedy (MA)

Kennedy (RI)

Kennelly

Kildee

Klink

LaFalce

Lantos

Levin

Lewis (GA)

Lincoln

Lipinski

Lofgren

Lowey

Luther

Maloney

Manton

Markey

Martinez

Matsui

McCarthy

McDermott

McHale

McKinney

Meehan

Meek

Menendez

Mfume

Miller (CA)

Mineta

Minge

Mink

Moakley

Montgomery

Moran

Nadler

Neal

Oberstar

Obey

Olver

Ortiz

Orton

Owens

Pallone

Pastor

Payne (NJ)

Payne (VA)

Pelosi

Peterson (FL)

Peterson (MN)

Pickett

Pomeroy

Porter

Poshard

Rahall

Rangel

Reed

Reynolds

Richardson

Rivers

Roemer

Rose

Roybal-Allard

Rush

Sabo

Sanders

Sawyer

Schroeder

Schumer

Scott

Serrano

Sisisky

Skaggs

Skelton

Slaughter

Spratt

Stark

Stenholm

Stokes

Studds

Stupak

Tanner

Taylor (MS)

Tejeda

Thompson

Thurman

Torres

Torricelli

Towns

Traficant

Tucker

Velazquez

Vento

Visclosky

Volkmer

Ward

Waters

Watt (NC)

Waxman

Williams

Wise

Woolsey

Wyden

Wynn

NOES—239

Allard

Archer

Armey

Bachus

Baker (CA)

Baker (LA)

Ballenger

Barr

Barrett (NE)

Bartlett

Barton

Bass

Bateman

Bereuter

Bevill

Bilbray

Bilirakis

Bliley

Blute

Boehlert

Boehner

Bonilla

Bono

Brownback

Bryant (TN)

Bunn

Bunning

Burr

Burton

Buyer

Callahan

Calvert

Camp

Canady

Castle

Chabot

Chambliss

Chenoweth

Chrysler

Clinger

Coble

Coburn

Collins (GA)

Combest

Cooley

Cox

Crane

Crapo

Cremeans

Cubin

Cunningham

Davis

Deal

DeLay

Diaz-Balart

Doolittle

Dornan

Doyle

Dreier

Duncan

Dunn

Ehlers

Ehrlich

Emerson

English

Ensign

Everett

Ewing

Fawell

Fields (TX)

Flanagan

Foley

Forbes

Fowler

Fox

Franks (CT)

Franks (NJ)

Frelinghuysen