PUBLIC LAW 104–106—FEB. 10, 1996

NATIONAL DEFENSE AUTHORIZATION ACT

FOR FISCAL YEAR 1996

110 STAT. 186 PUBLIC LAW 104–106—FEB. 10, 1996

Public Law 104–106

104th Congress

An Act

To authorize appropriations for fiscal year 1996 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the

Armed Forces, to reform acquisition laws and information technology management

of the Federal Government, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘National Defense Authorization

Act for Fiscal Year 1996’’.

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

(a) DIVISIONS.—This Act is organized into five 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.

(4) Division D—Federal Acquisition Reform.

(5) Division E—Information Technology Management

Reform.

(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.

Sec. 4. Extension of time for submission of reports.

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. Defense Inspector General.

Sec. 107. Chemical demilitarization program.

Sec. 108. Defense health programs.

Subtitle B—Army Programs

Sec. 111. Procurement of OH–58D Armed Kiowa Warrior helicopters.

Sec. 112. Repeal of requirements for armored vehicle upgrades.

Sec. 113. Multiyear procurement of helicopters.

National Defense

Authorization

Act for Fiscal

Year 1996.

Feb. 10, 1996

[S. 1124]

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 187

Sec. 114. Report on AH–64D engine upgrades.

Sec. 115. Requirement for use of previously authorized multiyear procurement authority for Army small arms procurement.

Subtitle C—Navy Programs

Sec. 131. Nuclear attack submarines.

Sec. 132. Research for advanced submarine technology.

Sec. 133. Cost limitation for Seawolf submarine program.

Sec. 134. Repeal of prohibition on backfit of Trident submarines.

Sec. 135. Arleigh Burke class destroyer program.

Sec. 136. Acquisition program for crash attenuating seats.

Sec. 137. T–39N trainer aircraft.

Sec. 138. Pioneer unmanned aerial vehicle program.

Subtitle D—Air Force Programs

Sec. 141. B–2 aircraft program.

Sec. 142. Procurement of B–2 bombers.

Sec. 143. MC–130H aircraft program.

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. Destruction of existing stockpile of lethal chemical agents and munitions.

Sec. 153. Administration of chemical demilitarization program.

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. Sec. 204. Defense dual use technology initiative.

Subtitle B—Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.

Sec. 212. Tactical manned reconnaissance.

Sec. 213. Joint Advanced Strike Technology (JAST) program.

Sec. 214. Development of laser program.

Sec. 215. Navy mine countermeasures program.

Sec. 216. Space-based infrared system.

Sec. 217. Defense Nuclear Agency programs.

Sec. 218. Counterproliferation support program.

Sec. 219. Nonlethal weapons study.

Sec. 220. Federally funded research and development centers and university-affiliated research centers.

Sec. 221. Joint seismic program and global seismic network.

Sec. 222. Hydra–70 rocket product improvement program.

Sec. 223. Limitation on obligation of funds until receipt of electronic combat consolidation master plan.

Sec. 224. Report on reductions in research, development, test, and evaluation.

Sec. 225. Advanced Field Artillery System (Crusader).

Sec. 226. Demilitarization of conventional munitions, rockets, and explosives.

Sec. 227. Defense Airborne Reconnaissance program.

Subtitle C—Ballistic Missile Defense Act of 1995

Sec. 231. Short title.

Sec. 232. Findings.

Sec. 233. Ballistic Missile Defense policy.

Sec. 234. Theater Missile Defense architecture.

Sec. 235. Prohibition on use of funds to implement an international agreement concerning Theater Missile Defense systems. Sec. 236. Ballistic Missile Defense cooperation with allies.

Sec. 237. ABM Treaty defined.

Sec. 238. Repeal of Missile Defense Act of 1991.

Subtitle D—Other Ballistic Missile Defense Provisions

Sec. 251. Ballistic Missile Defense program elements.

Sec. 252. Testing of Theater Missile Defense interceptors.

110 STAT. 188 PUBLIC LAW 104–106—FEB. 10, 1996

Sec. 253. Repeal of missile defense provisions.

Subtitle E—Miscellaneous Reviews, Studies, and Reports

Sec. 261. Precision-guided munitions.

Sec. 262. Review of C4I by National Research Council.

Sec. 263. Analysis of consolidation of basic research accounts of military departments.

Sec. 264. Change in reporting period from calendar year to fiscal year for annual

report on certain contracts to colleges and universities.

Sec. 265. Aeronautical research and test capabilities assessment.

Subtitle F—Other Matters

Sec. 271. Advanced lithography program.

Sec. 272. Enhanced fiber optic guided missile (EFOG–M) system.

Sec. 273. States eligible for assistance under Defense Experimental Program To

Stimulate Competitive Research.

Sec. 274. Cruise missile defense initiative.

Sec. 275. Modification to university research initiative support program.

Sec. 276. Manufacturing technology program.

Sec. 277. Five-year plan for consolidation of defense laboratories and test and evaluation centers.

Sec. 278. Limitation on T–38 avionics upgrade program.

Sec. 279. Global Positioning System.

Sec. 280. Revision of authority for providing Army support for the National Science

Center for Communications and Electronics.

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. Transfer from National Defense Stockpile Transaction Fund.

Sec. 305. Civil Air Patrol.

Subtitle B—Depot-Level Activities

Sec. 311. Policy regarding performance of depot-level maintenance and repair for

the Department of Defense.

Sec. 312. Management of depot employees.

Sec. 313. Extension of authority for aviation depots and naval shipyards to engage

in defense-related production and services.

Sec. 314. Modification of notification requirement regarding use of core logistics

functions waiver.

Subtitle C—Environmental Provisions

Sec. 321. Revision of requirements for agreements for services under environmental

restoration program.

Sec. 322. Addition of amounts creditable to Defense Environmental Restoration Account.

Sec. 323. Use of Defense Environmental Restoration Account.

Sec. 324. Revision of authorities relating to restoration advisory boards.

Sec. 325. Discharges from vessels of the Armed Forces.

Subtitle D—Commissaries and Nonappropriated Fund Instrumentalities

Sec. 331. Operation of commissary system.

Sec. 332. Limited release of commissary stores sales information to manufacturers,

distributors, and other vendors doing business with Defense Commissary Agency.

Sec. 333. Economical distribution of distilled spirits by nonappropriated fund instrumentalities.

Sec. 334. Transportation by commissaries and exchanges to overseas locations.

Sec. 335. Demonstration project for uniform funding of morale, welfare, and recreation activities at certain military installations.

Sec. 336. Operation of combined exchange and commissary stores.

Sec. 337. Deferred payment programs of military exchanges.

Sec. 338. Availability of funds to offset expenses incurred by Army and Air Force

Exchange Service on account of troop reductions in Europe.

Sec. 339. Study regarding improving efficiencies in operation of military exchanges

and other morale, welfare, and recreation activities and commissary

stores.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 189

Sec. 340. Repeal of requirement to convert ships’ stores to nonappropriated fund instrumentalities.

Sec. 341. Disposition of excess morale, welfare, and recreation funds.

Sec. 342. Clarification of entitlement to use of morale, welfare, and recreation facilities by members of reserve components and dependents.

Subtitle E—Performance of Functions by Private-Sector Sources

Sec. 351. Competitive procurement of printing and duplication services.

Sec. 352. Direct vendor delivery system for consumable inventory items of Department of Defense.

Sec. 353. Payroll, finance, and accounting functions of the Department of Defense.

Sec. 354. Demonstration program to identify overpayments made to vendors.

Sec. 355. Pilot program on private operation of defense dependents’ schools.

Sec. 356. Program for improved travel process for the Department of Defense.

Sec. 357. Increased reliance on private-sector sources for commercial products and

services.

Subtitle F—Miscellaneous Reviews, Studies, and Reports

Sec. 361. Quarterly readiness reports.

Sec. 362. Restatement of requirement for semiannual reports to Congress on transfers from high-priority readiness appropriations. Sec. 363. Report regarding reduction of costs associated with contract management

oversight. Sec. 364. Reviews of management of inventory control points and Material Management Standard System. Sec. 365. Report on private performance of certain functions performed by military

aircraft.

Sec. 366. Strategy and report on automated information systems of Department of

Defense.

Subtitle G—Other Matters

Sec. 371. Codification of Defense Business Operations Fund.

Sec. 372. Clarification of services and property that may be exchanged to benefit

the historical collection of the Armed Forces.

Sec. 373. Financial management training.

Sec. 374. Permanent authority for use of proceeds from the sale of certain lost,

abandoned, or unclaimed property. Sec. 375. Sale of military clothing and subsistence and other supplies of the Navy

and Marine Corps. Sec. 376. Personnel services and logistical support for certain activities held on

military installations. Sec. 377. Retention of monetary awards.

Sec. 378. Provision of equipment and facilities to assist in emergency response actions.

Sec. 379. Report on Department of Defense military and civil defense preparedness

to respond to emergencies resulting from a chemical, biological, radiological, or nuclear attack.

TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A—Active Forces

Sec. 401. End strengths for active forces.

Sec. 402. Temporary variation in DOPMA authorized end strength limitations for

active duty Air Force and Navy officers in certain grades. Sec. 403. Certain general and flag officers awaiting retirement not to be counted.

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. Sec. 414. Increase in number of members in certain grades authorized to serve on

active duty in support of the Reserves. Sec. 415. Reserves on active duty in support of cooperative threat reduction programs not to be counted. Sec. 416. Reserves on active duty for military-to-military contacts and comparable

activities not to be counted.

Subtitle C—Military Training Student Loads

Sec. 421. Authorization of training student loads.

Subtitle D—Authorization of Appropriations

110 STAT. 190 PUBLIC LAW 104–106—FEB. 10, 1996

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. Joint officer management.

Sec. 502. Retired grade for officers in grades above major general and rear admiral.

Sec. 503. Wearing of insignia for higher grade before promotion.

Sec. 504. Authority to extend transition period for officers selected for early retirement.

Sec. 505. Army officer manning levels.

Sec. 506. Authority for medical department officers other than physicians to be appointed as Surgeon General. Sec. 507. Deputy Judge Advocate General of the Air Force.

Sec. 508. Authority for temporary promotions for certain Navy lieutenants with

critical skills.

Sec. 509. Retirement for years of service of Directors of Admissions of Military and

Air Force academies.

Subtitle B—Matters Relating to Reserve Components

Sec. 511. Extension of certain Reserve officer management authorities.

Sec. 512. Mobilization income insurance program for members of Ready Reserve.

Sec. 513. Military technician full-time support program for Army and Air Force reserve components. Sec. 514. Revisions to Army Guard Combat Reform Initiative to include Army Reserve under certain provisions and make certain revisions. Sec. 515. Active duty associate unit responsibility.

Sec. 516. Leave for members of reserve components performing public safety duty.

Sec. 517. Department of Defense funding for National Guard participation in joint

disaster and emergency assistance exercises.

Subtitle C—Decorations and Awards

Sec. 521. Award of Purple Heart to persons wounded while held as prisoners of war

before April 25, 1962.

Sec. 522. Authority to award decorations recognizing acts of valor performed in

combat during the Vietnam conflict. Sec. 523. Military intelligence personnel prevented by secrecy from being considered for decorations and awards.

Sec. 524. Review regarding upgrading of Distinguished-Service Crosses and Navy

Crosses awarded to Asian-Americans and Native American Pacific Islanders for World War II service.

Sec. 525. Eligibility for Armed Forces Expeditionary Medal based upon service in

El Salvador.

Sec. 526. Procedure for consideration of military decorations not previously submitted in timely fashion.

Subtitle D—Officer Education Programs

PART I—SERVICE ACADEMIES

Sec. 531. Revision of service obligation for graduates of the service academies.

Sec. 532. Nominations to service academies from Commonwealth of the Northern

Marianas Islands.

Sec. 533. Repeal of requirement for athletic director and nonappropriated fund account for the athletics programs at the service academies. Sec. 534. Repeal of requirement for program to test privatization of service academy preparatory schools.

PART II—RESERVE OFFICER TRAINING CORPS

Sec. 541. ROTC access to campuses.

Sec. 542. ROTC scholarships for the National Guard.

Sec. 543. Delay in reorganization of Army ROTC regional headquarters structure.

Sec. 544. Duration of field training or practice cruise required under the Senior Reserve Officers’ Training Corps program. Sec. 545. Active duty officers detailed to ROTC duty at senior military colleges to

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

Subtitle E—Miscellaneous Reviews, Studies, and Reports

Sec. 551. Report concerning appropriate forum for judicial review of Department of

Defense personnel actions.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 191

Sec. 552. Comptroller General review of proposed Army end strength allocations.

Sec. 553. Report on manning status of highly deployable support units.

Sec. 554. Review of system for correction of military records.

Sec. 555. Report on the consistency of reporting of fingerprint cards and final disposition forms to the Federal Bureau of Investigation.

Subtitle F—Other Matters

Sec. 561. Equalization of accrual of service credit for officers and enlisted members.

Sec. 562. Army Ranger training.

Sec. 563. Separation in cases involving extended confinement.

Sec. 564. Limitations on reductions in medical personnel.

Sec. 565. Sense of Congress concerning personnel tempo rates.

Sec. 566. Separation benefits during force reduction for officers of commissioned

corps of National Oceanic and Atmospheric Administration. Sec. 567. Discharge of members of the Armed Forces who have the HIV–1 virus.

Sec. 568. Revision and codification of Military Family Act and Military Child Care

Act.

Sec. 569. Determination of whereabouts and status of missing persons.

Sec. 570. Associate Director of Central Intelligence for Military Support.

Subtitle G—Support for Non-Department of Defense Activities

Sec. 571. Repeal of certain civil-military programs.

Sec. 572. Training activities resulting in incidental support and services for eligible

organizations and activities outside the Department of Defense. Sec. 573. National Guard civilian youth opportunities pilot program.

Sec. 574. Termination of funding for Office of Civil-Military Programs in Office of

the Secretary of Defense.

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 residing without dependents in Government quarters. Sec. 603. Election of basic allowance for quarters instead of assignment to inadequate quarters. Sec. 604. Payment of basic allowance for quarters to members in pay grade E–6

who are assigned to sea duty. Sec. 605. Limitation on reduction of variable housing allowance for certain members.

Sec. 606. Clarification of limitation on eligibility for 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. Hazardous duty incentive pay for warrant officers and enlisted members

serving as air weapons controllers. Sec. 616. Aviation career incentive pay.

Sec. 617. Clarification of authority to provide special pay for nurses.

Sec. 618. Continuous entitlement to career sea pay for crew members of ships designated as tenders. Sec. 619. Increase in maximum rate of special duty assignment pay for enlisted

members serving as recruiters.

Subtitle C—Travel and Transportation Allowances

Sec. 621. Repeal of requirement regarding calculation of allowances on basis of

mileage tables. Sec. 622. Departure allowances.

Sec. 623. Transportation of nondependent child from member’s station overseas

after loss of dependent status while overseas.

Sec. 624. Authorization of dislocation allowance for moves in connection with base

realignments and closures.

Subtitle D—Retired Pay, Survivor Benefits, and Related Matters

Sec. 631. Effective date for military retiree cost-of-living adjustments for fiscal

years 1996, 1997, and 1998.

110 STAT. 192 PUBLIC LAW 104–106—FEB. 10, 1996

Sec. 632. Denial of non-regular service retired pay for Reserves receiving certain

court-martial sentences.

Sec. 633. Report on payment of annuities for certain military surviving spouses.

Sec. 634. Payment of back quarters and subsistence allowances to World War II

veterans who served as guerilla fighters in the Philippines. Sec. 635. Authority for relief from previous overpayments under minimum income

widows program. Sec. 636. Transitional compensation for dependents of members of the Armed

Forces separated for dependent abuse.

Subtitle E—Other Matters

Sec. 641. Payment to survivors of deceased members for all leave accrued.

Sec. 642. Repeal of reporting requirements regarding compensation matters.

Sec. 643. Recoupment of administrative expenses in garnishment actions.

Sec. 644. Report on extending to junior noncommissioned officers privileges provided for senior noncommissioned officers.

Sec. 645. Study regarding joint process for determining location of recruiting stations.

Sec. 646. Automatic maximum coverage under Servicemen’s Group Life Insurance.

Sec. 647. Termination of Servicemen’s Group Life Insurance for members of the

Ready Reserve who fail to pay premiums.

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 Reserves. Sec. 703. Medical care for surviving dependents of retired Reserves who die before

age 60. Sec. 704. Medical and dental care for members of the Selected Reserve assigned to

early deploying units of the Army Selected Reserve. Sec. 705. Dental insurance for members of the Selected Reserve.

Sec. 706. Permanent authority to carry out specialized treatment facility program.

Subtitle B—TRICARE Program

Sec. 711. Definition of TRICARE program.

Sec. 712. Priority use of military treatment facilities for persons enrolled in managed care initiatives. Sec. 713. Staggered payment of enrollment fees for TRICARE program.

Sec. 714. Requirement of budget neutrality for TRICARE program to be based on

entire program. Sec. 715. Training in health care management and administration for TRICARE

lead agents. Sec. 716. Pilot program of individualized residential mental health services.

Sec. 717. Evaluation and report on TRICARE program effectiveness.

Sec. 718. Sense of Congress regarding access to health care under TRICARE program for covered beneficiaries who are medicare eligible.

Subtitle C—Uniformed Services Treatment Facilities

Sec. 721. Delay of termination of status of certain facilities as Uniformed Services

Treatment Facilities.

Sec. 722. Limitation on expenditures to support Uniformed Services Treatment Facilities.

Sec. 723. Application of CHAMPUS payment rules in certain cases.

Sec. 724. Application of Federal Acquisition Regulation to participation agreements

with Uniformed Services Treatment Facilities.

Sec. 725. Development of plan for integrating Uniformed Services Treatment Facilities in managed care programs of Department of Defense. Sec. 726. Equitable implementation of uniform cost sharing requirements for Uniformed Services Treatment Facilities.

Sec. 727. Elimination of unnecessary annual reporting requirement regarding 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. Notification of certain CHAMPUS covered beneficiaries of loss of

CHAMPUS eligibility.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 193

Sec. 733. Personal services contracts for medical treatment facilities of the Coast

Guard.

Sec. 734. Identification of third-party payer situations.

Sec. 735. Redesignation of Military Health Care Account as Defense Health Program Account and two-year availability of certain account funds. Sec. 736. Expansion of financial assistance program for health-care professionals in

reserve components to include dental specialties. Sec. 737. Applicability of limitation on prices of pharmaceuticals procured for Coast

Guard.

Sec. 738. Restriction on use of Department of Defense facilities for abortions.

Subtitle E—Other Matters

Sec. 741. Triservice nursing research.

Sec. 742. Termination of program to train military psychologists to prescribe psychotropic medications. Sec. 743. Waiver of collection of payments due from certain persons unaware 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. Report on improved access to military health care for covered beneficiaries entitled to medicare.

Sec. 747. Report on effect of closure of Fitzsimons Army Medical Center, Colorado,

on provision of care to military personnel, retired military personnel,

and their dependents. Sec. 748. Sense of Congress on continuity of health care services for covered beneficiaries adversely affected by closures of military medical treatment facilities.

Sec. 749. State recognition of military advance medical directives.

TITLE VIII—ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND

RELATED MATTERS

Subtitle A—Acquisition Reform

Sec. 801. Inapplicability of limitation on expenditure of appropriations to contracts

at or below simplified acquisition threshold. Sec. 802. Authority to delegate contracting authority.

Sec. 803. Control in procurements of critical aircraft and ship spare parts.

Sec. 804. Fees for certain testing services.

Sec. 805. Coordination and communication of defense research activities.

Sec. 806. Addition of certain items to domestic source limitation.

Sec. 807. Encouragement of use of leasing authority.

Sec. 808. Cost reimbursement rules for indirect costs attributable to private sector

work of defense contractors.

Sec. 809. Subcontracts for ocean transportation services.

Sec. 810. Prompt resolution of audit recommendations.

Sec. 811. Test program for negotiation of comprehensive subcontracting plans.

Sec. 812. Procurement of items for experimental or test purposes.

Sec. 813. Use of funds for acquisition of designs, processes, technical data, and computer software. Sec. 814. Independent cost estimates for major defense acquisition programs.

Sec. 815. Construction, repair, alteration, furnishing, and equipping of naval vessels.

Subtitle B—Other Matters

Sec. 821. Procurement technical assistance programs.

Sec. 822. Defense facility-wide pilot program.

Sec. 823. Treatment of Department of Defense cable television franchise agreements.

Sec. 824. Extension of pilot mentor-protege program.

TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND

MANAGEMENT

Subtitle A—General Matters

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

Sec. 902. Reduction in number of Assistant Secretary of Defense positions.

Sec. 903. Deferred repeal of various statutory positions and offices in Office of the

Secretary of Defense. Sec. 904. Redesignation of the position of Assistant to the Secretary of Defense for

Atomic Energy.

110 STAT. 194 PUBLIC LAW 104–106—FEB. 10, 1996

Sec. 905. Joint Requirements Oversight Council.

Sec. 906. Restructuring of Department of Defense acquisition organization and

workforce.

Sec. 907. Report on Nuclear Posture Review and on plans for nuclear weapons

management in event of abolition of Department of Energy. Sec. 908. Redesignation of Advanced Research Projects Agency.

Subtitle B—Financial Management

Sec. 911. Transfer authority regarding funds available for foreign currency fluctuations.

Sec. 912. Defense Modernization Account.

Sec. 913. Designation and liability of disbursing and certifying officials.

Sec. 914. Fisher House trust funds.

Sec. 915. Limitation on use of authority to pay for emergency and extraordinary expenses.

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. Operation Provide Comfort.

Sec. 1005. Operation Enhanced Southern Watch.

Sec. 1006. Authority for obligation of certain unauthorized fiscal year 1995 defense

appropriations. Sec. 1007. Authorization of prior emergency supplemental appropriations for fiscal

year 1995. Sec. 1008. Authorization reductions to reflect savings from revised economic assumptions.

Subtitle B—Naval Vessels and Shipyards

Sec. 1011. Iowa class battleships.

Sec. 1012. Transfer of naval vessels to certain foreign countries.

Sec. 1013. Contract options for LMSR vessels.

Sec. 1014. National Defense Reserve Fleet.

Sec. 1015. Naval salvage facilities.

Sec. 1016. Vessels subject to repair under phased maintenance contracts.

Sec. 1017. Clarification of requirements relating to repairs of vessels.

Sec. 1018. Sense of Congress concerning naming of amphibious ships.

Sec. 1019. Sense of Congress concerning naming of naval vessel.

Sec. 1020. Transfer of riverine patrol craft.

Subtitle C—Counter-Drug Activities

Sec. 1021. Revision and clarification of authority for Federal support of drug interdiction and counter-drug activities of the National Guard.

Subtitle D—Civilian Personnel

Sec. 1031. Management of Department of Defense civilian personnel.

Sec. 1032. Conversion of military positions to civilian positions.

Sec. 1033. Elimination of 120-day limitation on details of certain employees.

Sec. 1034. Authority for civilian employees of Department of Defense to participate

voluntarily in reductions in force. Sec. 1035. Authority to pay severance payments in lump sums.

Sec. 1036. Continued health insurance coverage.

Sec. 1037. Revision of authority for appointments of involuntarily separated military reserve technicians. Sec. 1038. Wearing of uniform by National Guard technicians.

Sec. 1039. Military leave for military reserve technicians for certain duty overseas.

Sec. 1040. Personnel actions involving employees of nonappropriated fund instrumentalities.

Sec. 1041. Coverage of nonappropriated fund employees under authority for flexible

and compressed work schedules. Sec. 1042. Limitation on provision of overseas living quarters allowances for

nonappropriated fund instrumentality employees. Sec. 1043. Elections relating to retirement coverage.

Sec. 1044. Extension of temporary authority to pay civilian employees with respect

to the evacuation from Guantanamo, Cuba.

Subtitle E—Miscellaneous Reporting Requirements

Sec. 1051. Report on fiscal year 1997 budget submission regarding Guard and Reserve components.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 195

Sec. 1052. Report on desirability and feasibility of providing authority for use of

funds derived from recovered losses resulting from contractor fraud. Sec. 1053. Report of national policy on protecting the national information infrastructure against strategic attacks. Sec. 1054. Report on Department of Defense boards and commissions.

Sec. 1055. Date for submission of annual report on special access programs.

Subtitle F—Repeal of Certain Reporting and Other Requirements and

Authorities

Sec. 1061. Repeal of miscellaneous provisions of law.

Sec. 1062. Reports required by title 10, United States Code.

Sec. 1063. Reports required by defense authorization and appropriations Acts.

Sec. 1064. Reports required by other provisions of law.

Subtitle G—Department of Defense Education Programs

Sec. 1071. Continuation of Uniformed Services University of the Health Sciences.

Sec. 1072. Additional graduate schools and programs at Uniformed Services University of the Health Sciences. Sec. 1073. Funding for adult education programs for military personnel and dependents outside the United States. Sec. 1074. Assistance to local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees. Sec. 1075. Sharing of personnel of Department of Defense domestic dependent

schools and defense dependents’ education system. Sec. 1076. Increase in reserve component Montgomery GI Bill educational assistance allowance with respect to skills or specialties for which there is

a critical shortage of personnel. Sec. 1077. Date for annual report on reserve component Montgomery GI Bill educational assistance program. Sec. 1078. Scope of education programs of Community College of the Air Force.

Sec. 1079. Amendments to education loan repayment programs.

Subtitle H—Other Matters

Sec. 1081. National defense technology and industrial base, defense reinvestment,

and defense conversion programs. Sec. 1082. Ammunition industrial base.

Sec. 1083. Policy concerning excess defense industrial capacity.

Sec. 1084. Sense of Congress concerning access to secondary school student information for recruiting purposes. Sec. 1085. Disclosure of information concerning unaccounted for United States personnel from the Korean Conflict, the Vietnam era, and the Cold War.

Sec. 1086. Operational support airlift aircraft fleet.

Sec. 1087. Civil Reserve Air Fleet.

Sec. 1088. Damage or loss to personal property due to emergency evacuation or extraordinary circumstances. Sec. 1089. Authority to suspend or terminate collection actions against deceased

members.

Sec. 1090. Check cashing and exchange transactions for dependents of United

States Government personnel. Sec. 1091. Designation of National Maritime Center.

Sec. 1092. Sense of Congress regarding historic preservation of Midway Islands.

Sec. 1093. Sense of Senate regarding Federal spending.

Sec. 1094. Extension of authority for vessel war risk insurance.

TITLE XI—UNIFORM CODE OF MILITARY JUSTICE

Sec. 1101. Short title.

Sec. 1102. References to Uniform Code of Military Justice.

Subtitle A—Offenses

Sec. 1111. Refusal to testify before court-martial.

Sec. 1112. Flight from apprehension.

Sec. 1113. Carnal knowledge.

Subtitle B—Sentences

Sec. 1121. Effective date for forfeitures of pay and allowances and reductions in

grade by sentence of court-martial. Sec. 1122. Required forfeiture of pay and allowances during confinement.

Sec. 1123. Deferment of confinement.

Subtitle C—Pretrial and Post-Trial Actions

110 STAT. 196 PUBLIC LAW 104–106—FEB. 10, 1996

Sec. 1131. Article 32 investigations.

Sec. 1132. Submission of matters to the convening authority for consideration.

Sec. 1133. Commitment of accused to treatment facility by reason of lack of mental

capacity or mental responsibility.

Subtitle D—Appellate Matters

Sec. 1141. Appeals by the United States.

Sec. 1142. Repeal of termination of authority for Chief Justice of the United States

to designate Article III judges for temporary service on Court of Appeals for the Armed Forces.

Subtitle E—Other Matters

Sec. 1151. Advisory committee on criminal law jurisdiction over civilians accompanying the Armed Forces in time of armed conflict.

Sec. 1152. Time after accession for initial instruction in the Uniform Code of Military Justice.

Sec. 1153. Technical amendment.

TITLE XII—COOPERATIVE THREAT REDUCTION WITH STATES OF

FORMER SOVIET UNION

Sec. 1201. Specification of Cooperative Threat Reduction programs.

Sec. 1202. Fiscal year 1996 funding allocations.

Sec. 1203. Prohibition on use of funds for peacekeeping exercises and related activities with Russia.

Sec. 1204. Revision to authority for assistance for weapons destruction.

Sec. 1205. Prior notice to Congress of obligation of funds.

Sec. 1206. Report on accounting for United States assistance.

Sec. 1207. Limitation on assistance to nuclear weapons scientists of former Soviet

Union.

Sec. 1208. Limitations relating to offensive biological warfare program of Russia.

Sec. 1209. Limitation on use of funds for chemical weapons destruction facility.

TITLE XIII—MATTERS RELATING TO OTHER NATIONS

Subtitle A—Peacekeeping Provisions

Sec. 1301. 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. 1311. Overseas humanitarian, disaster, and civic aid programs.

Sec. 1312. Humanitarian assistance.

Sec. 1313. Landmine clearance program.

Subtitle C—Arms Exports and Military Assistance

Sec. 1321. Defense export loan guarantees.

Sec. 1322. National security implications of United States export control policy.

Sec. 1323. Department of Defense review of export licenses for certain biological

pathogens.

Sec. 1324. Annual reports on improving export control mechanisms and on military

assistance.

Sec. 1325. Report on personnel requirements for control of transfer of certain weapons.

Subtitle D—Burdensharing and Other Cooperative Activities Involving

Allies and NATO

Sec. 1331. Accounting for burdensharing contributions.

Sec. 1332. Authority to accept contributions for expenses of relocation within host

nation of United States Armed Forces overseas.

Sec. 1333. Revised goal for allied share of costs for United States installations in

Europe.

Sec. 1334. Exclusion of certain forces from European end strength limitation.

Sec. 1335. Cooperative research and development agreements with NATO organizations.

Sec. 1336. Support services for the Navy at the port of Haifa, Israel.

Subtitle E—Other Matters

Sec. 1341. Prohibition on financial assistance to terrorist countries.

Sec. 1342. Judicial assistance to the International Tribunal for Yugoslavia and to

the International Tribunal for Rwanda.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 197

Sec. 1343. Semiannual reports concerning United States-People’s Republic of China

Joint Defense Conversion Commission.

TITLE XIV—ARMS CONTROL MATTERS

Sec. 1401. Revision of definition of landmine for purposes of landmine export moratorium.

Sec. 1402. Reports on moratorium on use by Armed Forces of antipersonnel landmines.

Sec. 1403. Extension and amendment of counter-proliferation authorities.

Sec. 1404. Limitation on retirement or dismantlement of strategic nuclear delivery

systems. Sec. 1405. Congressional findings and sense of Congress concerning treaty violations.

Sec. 1406. Sense of Congress on ratification of Chemical Weapons Convention and

START II Treaty. Sec. 1407. Implementation of arms control agreements.

Sec. 1408. Iran and Iraq arms nonproliferation.

TITLE XV—TECHNICAL AND CLERICAL AMENDMENTS

Sec. 1501. Amendments related to Reserve Officer Personnel Management Act.

Sec. 1502. Amendments to reflect name change of Committee on Armed Services of

the House of Representatives. Sec. 1503. Miscellaneous amendments to title 10, United States Code.

Sec. 1504. Miscellaneous amendments to annual defense authorization Acts.

Sec. 1505. Miscellaneous amendments to other laws.

Sec. 1506. Coordination with other amendments.

TITLE XVI—CORPORATION FOR THE PROMOTION OF RIFLE PRACTICE

AND FIREARMS SAFETY

Sec. 1601. Short title.

Subtitle A—Establishment and Operation of Corporation

Sec. 1611. Establishment of the Corporation.

Sec. 1612. Conduct of Civilian Marksmanship Program.

Sec. 1613. Eligibility for participation in Civilian Marksmanship Program.

Sec. 1614. Issuance, loan, and sale of firearms and ammunition by the Corporation.

Sec. 1615. Transfer of firearms and ammunition from the Army to the Corporation.

Sec. 1616. Reservation by the Army of firearms and ammunition for the Corporation.

Sec. 1617. Army logistical support for the program.

Sec. 1618. General authorities of the Corporation.

Sec. 1619. Distribution of Corporate assets in event of dissolution.

Subtitle B—Transitional Provisions

Sec. 1621. Transfer of funds and property to the Corporation.

Sec. 1622. Continuation of eligibility for certain civil service benefits for former

Federal employees of Civilian Marksmanship Program. Sec. 1623. Certification of completion of transition.

Sec. 1624. Repeal of authority for conduct of Civilian Marksmanship Program by

the Army.

DIVISION B—MILITARY CONSTRUCTION

AUTHORIZATIONS

Sec. 2001. Short title.

TITLE XXI—ARMY

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

Sec. 2102. Family housing.

Sec. 2103. Improvements to military family housing units.

Sec. 2104. Authorization of appropriations, Army.

TITLE XXII—NAVY

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

Sec. 2202. Family housing.

Sec. 2203. Improvements to military family housing units.

Sec. 2204. Authorization of appropriations, Navy.

Sec. 2205. Revision of fiscal year 1995 authorization of appropriations to clarify

availability of funds for large anechoic chamber facility, Patuxent

River Naval Warfare Center, Maryland.

110 STAT. 198 PUBLIC LAW 104–106—FEB. 10, 1996

Sec. 2206. Authority to carry out land acquisition project, Hampton Roads, Virginia. Sec. 2207. Acquisition of land, Henderson Hall, Arlington, Virginia.

Sec. 2208. Acquisition or construction of military family housing in vicinity of San

Diego, California.

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. Military 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. Limitations on use of Department of Defense Base Closure Account

1990.

Sec. 2407. Modification of authority to carry out fiscal year 1995 projects.

Sec. 2408. Reduction in amounts authorized to be appropriated for fiscal year 1994

contingency construction projects.

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. Reduction in amount authorized to be appropriated for fiscal year 1994

Air National Guard Projects. Sec. 2603. 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.

TITLE XXVIII—GENERAL PROVISIONS

Subtitle A—Military Housing Privatization Initiative

Sec. 2801. Alternative authority for construction and improvement of military housing. Sec. 2802. Expansion of authority for limited partnerships for development of military family housing.

Subtitle B—Other Military Construction Program and Military Family

Housing Changes

Sec. 2811. Special threshold for unspecified minor construction projects to correct

life, health, or safety deficiencies. Sec. 2812. Clarification of scope of unspecified minor construction authority.

Sec. 2813. Temporary authority to waive net floor area limitation for family housing acquired in lieu of construction. Sec. 2814. Reestablishment of authority to waive net floor area limitation on acquisition by purchase of certain military family housing. Sec. 2815. Temporary authority to waive limitations on space by pay grade for military family housing units. Sec. 2816. Rental of family housing in foreign countries.

Sec. 2817. Clarification of scope of report requirement on cost increases under contracts for military family housing construction. Sec. 2818. Authority to convey damaged or deteriorated military family housing.

Sec. 2819. Energy and water conservation savings for the Department of Defense.

Sec. 2820. Extension of authority to enter into leases of land for special operations

activities.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 199

Sec. 2821. Disposition of amounts recovered as a result of damage to real property.

Sec. 2822. Pilot program to provide interest rate buy down authority on loans for

housing within housing shortage areas at military installations.

Subtitle C—Defense Base Closure and Realignment

Sec. 2831. Deposit of proceeds from leases of property located at installations being

closed or realigned. Sec. 2832. In-kind consideration for leases at installations to be closed or realigned.

Sec. 2833. Interim leases of property approved for closure or realignment.

Sec. 2834. Authority to lease property requiring environmental remediation at

installations approved for closure or realignment. Sec. 2835. Final funding for Defense Base Closure and Realignment Commission.

Sec. 2836. Exercise of authority delegated by the Administrator of General Services.

Sec. 2837. Lease back of property disposed from installations approved for closure

or realignment. Sec. 2838. Improvement of base closure and realignment process regarding disposal

of property. Sec. 2839. Agreements for certain services at installations being closed.

Sec. 2840. Authority to transfer property at military installations to be closed to

persons who construct or provide military family housing. Sec. 2841. Use of single base closure authorities for disposal of property and facilities at Fort Holabird, Maryland.

Subtitle D—Land Conveyances Generally

PART I—ARMY CONVEYANCES

Sec. 2851. Transfer of jurisdiction, Fort Sam Houston, Texas.

Sec. 2852. Transfer of jurisdiction, Fort Bliss, Texas.

Sec. 2853. Transfer of jurisdiction and land conveyance, Fort Devens Military Reservation, Massachusetts.

Sec. 2854. Modification of land conveyance, Fort Belvoir, Virginia.

Sec. 2855. Land exchange, Fort Lewis, Washington.

Sec. 2856. Land exchange, Army Reserve Center, Gainesville, Georgia.

Sec. 2857. Land conveyance, Holston Army Ammunition Plant, Mount Carmel,

Tennessee.

Sec. 2858. Land conveyance, Indiana Army Ammunition Plant, Charlestown, Indiana.

Sec. 2859. Land conveyance, Fort Ord, California.

Sec. 2860. Land conveyance, Parks Reserve Forces Training Area, Dublin, California.

Sec. 2861. Land conveyance, Army Reserve Center, Youngstown, Ohio.

Sec. 2862. Land conveyance, Army Reserve Property, Fort Sheridan, Illinois.

Sec. 2863. Land conveyance, property underlying Cummins Apartment Complex,

Fort Holabird, Maryland.

Sec. 2864. Modification of existing land conveyance, Army property, Hamilton Air

Force Base, California.

PART II—NAVY CONVEYANCES

Sec. 2865. Transfer of jurisdiction, Naval Weapons Industrial Reserve Plant,

Calverton, New York.

Sec. 2866. Modification of land conveyance, Naval Weapons Industrial Reserve

Plant, Calverton, New York.

Sec. 2867. Land conveyance alternative to existing lease authority, Naval Supply

Center, Oakland, California.

Sec. 2868. Land conveyance, Naval Weapons Industrial Reserve Plant, McGregor,

Texas.

Sec. 2869. Land conveyance, Naval Surface Warfare Center, Memphis, Tennessee.

Sec. 2870. Land conveyance, Navy property, Fort Sheridan, Illinois.

Sec. 2871. Land conveyance, Naval Communications Station, Stockton, California.

Sec. 2872. Lease of property, Naval Air Station and Marine Corps Air Station,

Miramar, California.

PART III—AIR FORCE CONVEYANCES

Sec. 2874. Land acquisition or exchange, Shaw Air Force Base, South Carolina.

Sec. 2875. Land conveyance, Elmendorf Air Force Base, Alaska.

Sec. 2876. Land conveyance, Radar Bomb Scoring Site, Forsyth, Montana.

Sec. 2877. Land conveyance, Radar Bomb Scoring Site, Powell, Wyoming.

Sec. 2878. Land conveyance, Avon Park Air Force Range, Florida.

Subtitle E—Land Conveyances Involving Utilities

110 STAT. 200 PUBLIC LAW 104–106—FEB. 10, 1996

Sec. 2881. Conveyance of resource recovery facility, Fort Dix, New Jersey.

Sec. 2882. Conveyance of water and wastewater treatment plants, Fort Gordon,

Georgia. Sec. 2883. Conveyance of electricity distribution system, Fort Irwin, California.

Sec. 2884. Conveyance of water treatment plant, Fort Pickett, Virginia.

Subtitle F—Other Matters

Sec. 2891. Authority to use funds for certain educational purposes.

Sec. 2892. Department of Defense Laboratory Revitalization Demonstration Program. Sec. 2893. Authority for Port Authority of State of Mississippi to use Navy property

at Naval Construction Battalion Center, Gulfport, Mississippi. Sec. 2894. Prohibition on joint use of Naval Air Station and Marine Corps Air Station, Miramar, California.

Sec. 2895. Report regarding Army water craft support facilities and activities.

Sec. 2896. Residual value reports.

Sec. 2897. Sense of Congress and report regarding Fitzsimons Army Medical Center, Colorado.

TITLE XXIX—LAND CONVEYANCES INVOLVING JOLIET ARMY

AMMUNITION PLANT, ILLINOIS

Sec. 2901. Short title.

Sec. 2902. Definitions.

Subtitle A—Conversion of Joliet Army Ammunition Plant to Midewin

National Tallgrass Prairie

Sec. 2911. Principles of transfer.

Sec. 2912. Transfer of management responsibilities and jurisdiction over Arsenal.

Sec. 2913. Responsibility and liability.

Sec. 2914. Establishment and administration of Midewin National Tallgrass Prairie.

Sec. 2915. Special management requirements for Midewin National Tallgrass Prairie.

Sec. 2916. Special transfer rules for certain Arsenal parcels intended for MNP.

Subtitle B—Other Land Conveyances Involving Joliet Army Ammunition

Plant

Sec. 2921. Conveyance of certain real property at Arsenal for a national cemetery.

Sec. 2922. Conveyance of certain real property at Arsenal for a county landfill.

Sec. 2923. Conveyance of certain real property at Arsenal for industrial parks.

Subtitle C—Miscellaneous Provisions

Sec. 2931. Degree of environmental cleanup.

Sec. 2932. Retention of property used for environmental cleanup.

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. Other defense activities.

Sec. 3104. 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.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 201

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 program.

Sec. 3134. Payment of penalties.

Sec. 3135. Fissile materials disposition.

Sec. 3136. Tritium recycling.

Sec. 3137. Manufacturing infrastructure for refabrication and certification of nuclear weapons stockpile.

Sec. 3138. Hydronuclear experiments.

Sec. 3139. Limitation on authority to conduct hydronuclear tests.

Sec. 3140. Fellowship program for development of skills critical to the Department

of Energy nuclear weapons complex.

Sec. 3141. Limitation on use of funds for certain research and development purposes.

Sec. 3142. Processing and treatment of high-level nuclear waste and spent nuclear

fuel rods.

Sec. 3143. Protection of workers at nuclear weapons facilities.

Sec. 3144. Department of Energy Declassification Productivity Initiative.

Subtitle D—Other Matters

Sec. 3151. Report on foreign tritium purchases.

Sec. 3152. Study on nuclear test readiness postures.

Sec. 3153. Master plan for the certification, stewardship, and management of warheads in the nuclear weapons stockpile.

Sec. 3154. Prohibition on international inspections of Department of Energy facilities unless protection of restricted data is certified.

Sec. 3155. Review of certain documents before declassification and release.

Sec. 3156. Accelerated schedule for environmental restoration and waste management activities.

Sec. 3157. Sense of Congress regarding certain environmental restoration requirements.

Sec. 3158. Responsibility for Defense Programs Emergency Response Program.

Sec. 3159. Requirements for Department of Energy weapons activities budgets for

fiscal years after fiscal year 1996.

Sec. 3160. Report on hydronuclear testing.

Sec. 3161. Applicability of Atomic Energy Community Act of 1955 to Los Alamos,

New Mexico.

Sec. 3162. Sense of Congress regarding shipments of spent nuclear fuel.

TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

TITLE XXXIII—NATIONAL DEFENSE STOCKPILE

Subtitle A—Authorization of Disposals and Use of Funds

Sec. 3301. Definitions.

Sec. 3302. Authorized uses of stockpile funds.

Sec. 3303. Disposal of chromite and manganese ores and chromium ferro and manganese metal electrolytic.

Sec. 3304. Restrictions on disposal of manganese ferro.

Sec. 3305. Titanium initiative to support battle tank upgrade program.

Subtitle B—Programmatic Change

Sec. 3311. Transfer of excess defense-related materials to stockpile for disposal.

TITLE XXXIV—NAVAL PETROLEUM RESERVES

Subtitle A—Administration of Naval Petroleum Reserves

Sec. 3401. Authorization of appropriations.

Sec. 3402. Price requirement on sale of certain petroleum during fiscal year 1996.

Sec. 3403. Extension of operating contract for Naval Petroleum Reserve Num

bered 1.

Subtitle B—Sale of Naval Petroleum Reserve

Sec. 3411. Definitions.

Sec. 3412. Sale of Naval Petroleum Reserve Numbered 1.

Sec. 3413. Effect of sale of reserve.

110 STAT. 202 PUBLIC LAW 104–106—FEB. 10, 1996

Sec. 3414. Conditions on sale process.

Sec. 3415. Treatment of State of California claim regarding reserve.

Sec. 3416. Study of future of other naval petroleum reserves.

TITLE XXXV—PANAMA CANAL COMMISSION

Subtitle A—Authorization of Appropriations

Sec. 3501. Short title.

Sec. 3502. Authorization of expenditures.

Sec. 3503. Expenditures in accordance with other laws.

Subtitle B—Reconstitution of Commission as Government Corporation

Sec. 3521. Short title.

Sec. 3522. Reconstitution of Commission as Government corporation.

Sec. 3523. Supervisory Board.

Sec. 3524. General and specific powers of Commission.

Sec. 3525. Congressional review of budget.

Sec. 3526. Audits.

Sec. 3527. Prescription of measurement rules and rates of tolls.

Sec. 3528. Procedures for changes in rules of measurement and rates of tolls.

Sec. 3529. Miscellaneous technical amendments.

Sec. 3530. Conforming amendment to title 31, United States Code.

DIVISION D—FEDERAL ACQUISITION REFORM

Sec. 4001. Short title.

TITLE XLI—COMPETITION

Sec. 4101. Efficient competition.

Sec. 4102. Efficient approval procedures.

Sec. 4103. Efficient competitive range determinations.

Sec. 4104. Preaward debriefings.

Sec. 4105. Design-build selection procedures.

TITLE XLII—COMMERCIAL ITEMS

Sec. 4201. Commercial item exception to requirement for certified cost or pricing

data.

Sec. 4202. Application of simplified procedures to certain commercial items.

Sec. 4203. Inapplicability of certain procurement laws to commercially available offthe-shelf items.

Sec. 4204. Amendment of commercial items definition.

Sec. 4205. Inapplicability of cost accounting standards to contracts and subcontracts for commercial items.

TITLE XLIII—ADDITIONAL REFORM PROVISIONS

Subtitle A—Additional Acquisition Reform Provisions

Sec. 4301. Elimination of certain certification requirements.

Sec. 4302. Authorities conditioned on FACNET capability.

Sec. 4303. International competitiveness.

Sec. 4304. Procurement integrity.

Sec. 4305. Further acquisition streamlining provisions.

Sec. 4306. Value engineering for Federal agencies.

Sec. 4307. Acquisition workforce.

Sec. 4308. Demonstration project relating to certain personnel management policies

and procedures. Sec. 4309. Cooperative purchasing.

Sec. 4310. Procurement notice technical amendment.

Sec. 4311. Micro-purchases without competitive quotations.

Subtitle B—Technical Amendments

Sec. 4321. Amendments related to Federal Acquisition Streamlining Act of 1994.

Sec. 4322. Miscellaneous amendments to Federal acquisition laws.

TITLE XLIV—EFFECTIVE DATES AND IMPLEMENTATION

Sec. 4401. Effective date and applicability.

Sec. 4402. Implementing regulations.

DIVISION E—INFORMATION TECHNOLOGY

MANAGEMENT REFORM

Sec. 5001. Short title.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 203

Sec. 5002. Definitions.

TITLE LI—RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION

TECHNOLOGY

Subtitle A—General Authority

Sec. 5101. Repeal of central authority of the Administrator of General Services.

Subtitle B—Director of the Office of Management and Budget

Sec. 5111. Responsibility of Director.

Sec. 5112. Capital planning and investment control.

Sec. 5113. Performance-based and results-based management.

Subtitle C—Executive Agencies

Sec. 5121. Responsibilities.

Sec. 5122. Capital planning and investment control.

Sec. 5123. Performance and results-based management.

Sec. 5124. Acquisitions of information technology.

Sec. 5125. Agency Chief Information Officer.

Sec. 5126. Accountability.

Sec. 5127. Significant deviations.

Sec. 5128. Interagency support.

Subtitle D—Other Responsibilities

Sec. 5131. Responsibilities regarding efficiency, security, and privacy of Federal

computer systems. Sec. 5132. Sense of Congress.

Subtitle E—National Security Systems

Sec. 5141. Applicability to national security systems.

Sec. 5142. National security system defined.

TITLE LII—PROCESS FOR ACQUISITIONS OF INFORMATION

TECHNOLOGY

Sec. 5201. Procurement procedures.

Sec. 5202. Incremental acquisition of information technology.

TITLE LIII—INFORMATION TECHNOLOGY ACQUISITION PILOT

PROGRAMS

Subtitle A—Conduct of Pilot Programs

Sec. 5301. Authority to conduct pilot programs.

Sec. 5302. Evaluation criteria and plans.

Sec. 5303. Report.

Sec. 5304. Recommended legislation.

Sec. 5305. Rule of construction.

Subtitle B—Specific Pilot Programs

Sec. 5311. Share-in-savings pilot program.

Sec. 5312. Solutions-based contracting pilot program.

TITLE LIV—ADDITIONAL INFORMATION RESOURCES MANAGEMENT

MATTERS

Sec. 5401. On-line multiple award schedule contracting.

Sec. 5402. Identification of excess and surplus computer equipment.

Sec. 5403. Access of certain information in information systems to the directory established under section 4101 of title 44, United States Code.

TITLE LV—PROCUREMENT PROTEST AUTHORITY OF THE

COMPTROLLER GENERAL

Sec. 5501. Period for processing protests.

Sec. 5502. Availability of funds following GAO resolution of challenge to contracting action.

TITLE LVI—CONFORMING AND CLERICAL AMENDMENTS

Sec. 5601. Amendments to title 10, United States Code.

Sec. 5602. Amendments to title 28, United States Code.

Sec. 5603. Amendment to title 31, United States Code.

110 STAT. 204 PUBLIC LAW 104–106—FEB. 10, 1996

Sec. 5604. Amendments to title 38, United States Code.

Sec. 5605. Provisions of title 44, United States Code, relating to paperwork reduction.

Sec. 5606. Amendment to title 49, United States Code.

Sec. 5607. Other laws.

Sec. 5608. Clerical amendments.

TITLE LVII—EFFECTIVE DATE, SAVINGS PROVISIONS, AND RULES OF

CONSTRUCTION

Sec. 5701. Effective date.

Sec. 5702. Savings provisions.

Sec. 5703. Rules of construction.

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.

SEC. 4. EXTENSION OF TIME FOR SUBMISSION OF REPORTS.

In the case of any provision of this Act, or any amendment

made by a provision of this Act, requiring the submission of a

report to Congress (or any committee of Congress), that report

shall be submitted not later than the later of—

(1) the date established for submittal of the report in such

provision or amendment; or

(2) the date that is 45 days after the date of the enactment

of this Act.

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, $1,558,805,000.

(2) For missiles, $865,555,000.

(3) For weapons and tracked combat vehicles,

$1,652,745,000.

(4) For ammunition, $1,093,991,000.

(5) For other procurement, $2,763,443,000.

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, $4,572,394,000.

(2) For weapons, including missiles and torpedoes,

$1,659,827,000.

(3) For shipbuilding and conversion, $6,643,958,000.

(4) For other procurement, $2,414,771,000.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 205

(b) MARINE CORPS.—Funds are hereby authorized to be appropriated for fiscal year 1996 for procurement for the Marine Corps

in the amount of $458,947,000.

(c) NAVY AND MARINE CORPS AMMUNITION.—Funds are hereby

authorized to be appropriated for procurement of ammunition for

the Navy and the Marine Corps in the amount of $430,053,000.

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, $7,349,783,000.

(2) For missiles, $2,938,883,000.

(3) For ammunition, $343,848,000.

(4) For other procurement, $6,268,430,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

Funds are hereby authorized to be appropriated for fiscal year

1996 for Defense-wide procurement in the amount of

$2,124,379,000.

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, $160,000,000.

(2) For the Air National Guard, $255,000,000.

(3) For the Army Reserve, $85,700,000.

(4) For the Naval Reserve, $67,000,000.

(5) For the Air Force Reserve, $135,600,000.

(6) For the Marine Corps Reserve, $73,700,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

Funds are hereby authorized to be appropriated for fiscal year

1996 for procurement for the Inspector General of the Department

of Defense in the amount of $1,000,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

There is hereby authorized to be appropriated for fiscal year

1996 the amount of $672,250,000 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.

SEC. 108. DEFENSE HEALTH PROGRAMS.

Funds are hereby authorized to be appropriated for fiscal year

1996 for the Department of Defense for procurement for carrying

out health care programs, projects, and activities of the Department

of Defense in the total amount of $288,033,000.

110 STAT. 206 PUBLIC LAW 104–106—FEB. 10, 1996

Subtitle B—Army Programs

SEC. 111. PROCUREMENT OF OH–58D ARMED KIOWA WARRIOR 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 $140,000,000 for the procurement of

not more than 20 OH–58D Armed Kiowa Warrior 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.

SEC. 113. MULTIYEAR PROCUREMENT OF HELICOPTERS.

The Secretary of the Army may, in accordance with section

2306b of title 10, United States Code, enter into multiyear procurement contracts for procurement of the following: (1) AH–64D Longbow Apache attack helicopters.

(2) UH–60 Black Hawk utility helicopters.

SEC. 114. REPORT ON AH–64D ENGINE UPGRADES.

No later than February 1, 1996, the Secretary of the Army

shall submit to Congress a report on plans to procure T700–701C

engine upgrade kits for Army AH–64D helicopters. The report shall

include—

(1) a plan to provide for the upgrade of all Army AH–

64D helicopters with T700–701C engine kits commencing in

fiscal year 1996; and (2) a detailed timeline and statement of funding requirements for the engine upgrade program described in paragraph

(1).

SEC. 115. REQUIREMENT FOR USE OF PREVIOUSLY AUTHORIZED

MULTIYEAR PROCUREMENT AUTHORITY FOR ARMY

SMALL ARMS PROCUREMENT.

(a) REQUIREMENT.—The Secretary of the Army (subject to the

provision of authority in an appropriations Act) shall enter into

a multiyear procurement contract during fiscal year 1997 in accordance with section 115(b)(2) of the National Defense Authorization

for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2681).

(b) TECHNICAL AMENDMENT.—Section 115(b)(1) of the National

Defense Authorization for Fiscal Year 1995 (Public Law 103–337;

108 Stat. 2681) is amended by striking out ‘‘2306(h)’’ and inserting

in lieu thereof ‘‘2306b’’.

Subtitle C—Navy Programs

SEC. 131. NUCLEAR ATTACK SUBMARINES.

(a) AMOUNTS AUTHORIZED.—(1) Of the amount authorized by

section 102 to be appropriated for Shipbuilding and Conversion,

Navy, for fiscal year 1996—

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 207

(A) $700,000,000 is available for construction of the third

vessel (designated SSN–23) in the Seawolf attack submarine

class, which shall be the final vessel in that class; and

(B) $804,498,000 is available for long-lead and advance

construction and procurement of components for construction

of the fiscal year 1998 and fiscal year 1999 submarines (previously designated by the Navy as the New Attack Submarine),

of which—

(i) $704,498,000 shall be available for long-lead and

advance construction and procurement for the fiscal year

1998 submarine, which shall be built by Electric Boat

Division; and

(ii) $100,000,000 shall be available for long-lead and

advance construction and procurement for the fiscal year

1999 submarine, which shall be built by Newport News

Shipbuilding.

(2) Of the amount authorized by section 201(2), $10,000,000

shall be available only for participation of Newport News Shipbuilding in the design of the submarine previously designated by the

Navy as the New Attack Submarine.

(b) COMPETITION, REPORT, AND BUDGET REVISION LIMITATIONS.—(1) Of the amounts specified in subsection (a)(1), not more

than $200,000,000 may be obligated or expended until the Secretary

of the Navy certifies in writing to the Committee on Armed Services

of the Senate and the Committee on National Security of the

House of Representatives that procurement of nuclear attack submarines to be constructed beginning—

(A) after fiscal year 1999, or

(B) if four submarines are procured as provided for in

the plan described in subsection (c), after fiscal year 2001,

will be under one or more contracts that are entered into after

competition between potential competitors (as defined in subsection

(k)) in which the Secretary solicits competitive proposals and awards

the contract or contracts on the basis of price.

(2) Of the amounts specified in subsection (a)(1), not more

than $1,000,000,000 may be obligated or expended until the Secretary of Defense, not later than March 15, 1996, accomplishes

each of the following:

(A) Submits to the Committee on Armed Services of the

Senate and the Committee on National Security of the House

of Representatives in accordance with subsection (c) the plan

required by that subsection for a program to produce a more

capable, less expensive nuclear attack submarine than the submarine design previously designated by the Navy as the New

Attack Submarine.

(B) Notwithstanding any other provision of law, or the

funding level in the President’s budget for each year after

fiscal year 1996, the Under Secretary of Defense (Comptroller)

shall incorporate the costs of the plan required by subsection

(c) in the Future Years Defense Program (FYDP) even if the

total cost of that Program exceeds the President’s budget.

(C) Directs that the Under Secretary of Defense for Acquisition and Technology conduct oversight over the development

and improvement of the nuclear attack submarine program

of the Navy. Officials of the Department of the Navy exercising

management oversight of the program shall report to the Under

110 STAT. 208 PUBLIC LAW 104–106—FEB. 10, 1996

Secretary of Defense for Acquisition and Technology with

respect to that program.

(c) PLAN FOR FISCAL YEAR 1998, 1999, 2000, AND 2001 SUB- MARINES.—(1) The Secretary of Defense shall, not later than March

15, 1996, develop (and submit to the committees specified in subsection (b)(2)(A)) a detailed plan for development of a program

that will lead to production of a more capable, less expensive

submarine than the submarine previously designated as the New

Attack Submarine.

(2) As part of such plan, the Secretary shall provide for a

program for the design, development, and procurement of four

nuclear attack submarines to be procured during fiscal years 1998

through 2001, the purpose of which shall be to develop and demonstrate new technologies that will result in each successive submarine of those four being a more capable and more affordable

submarine than the submarine that preceded it. The program shall

be structured so that—

(A) one of the four submarines is to be constructed with

funds appropriated for each fiscal year from fiscal year 1998

through fiscal year 2001;

(B) in order to ensure flexibility for innovation, the fiscal

year 1998 and the fiscal year 2000 submarines are to be constructed by the Electric Boat Division and the fiscal year 1999

and the fiscal year 2001 submarines are to be constructed

by Newport News Shipbuilding;

(C) the design designated by the Navy for the submarine

previously designated as the New Attack Submarine will be

used as the base design by both contractors;

(D) each contractor shall be called upon to propose improvements, including design improvements, for each successive submarine as new and better technology is demonstrated and

matures so that—

(i) each successive submarine is more capable and more

affordable; and

(ii) the design for a future class of nuclear attack

submarines will incorporate the latest, best, and most

affordable technology; and

(E) the fifth and subsequent nuclear attack submarines

to be built after the SSN–23 submarine shall be procured

as required by subsection (b)(1).

(3) The plan under paragraph (1) shall—

(A) set forth a program to accomplish the design, development, and construction of the four submarines taking maximum

advantage of a streamlined acquisition process, as provided

under subsection (d);

(B) culminate in selection of a design for a next submarine

for serial production not earlier than fiscal year 2003, with

such submarine to be procured as required by subsection (b)(1);

(C) identify advanced technologies that are in various

phases of research and development, as well as those that

are commercially available off-the-shelf, that are candidates

to be incorporated into the plan to design, develop, and procure

the submarines;

(D) designate the fifth submarine to be procured as the

lead ship in the next generation submarine class, unless the

Secretary of the Navy, in consultation with the special submarine review panel described in subsection (f), determines

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 209

that more submarines should be built before the design of

the new class of submarines is fixed, in which case each such

additional submarine shall be procured in the same manner

as is required by subsection (b)(1); and

(E) identify the impact of the submarine program described

in paragraph (1) on the remainder of the appropriation account

known as ‘‘Shipbuilding and Conversion, Navy’’, as such impact

relates to—

(i) force structure levels required by the October 1993

Department of Defense report entitled ‘‘Report on the Bottom-Up Review’’;

(ii) force structure levels required by the 1995 report

on the Surface Ship Combatant Study that was carried

out for the Department of Defense; and

(iii) the funding requirements for submarine construction, as a percentage of the total ship construction account,

for each fiscal year throughout the FYDP.

(4) As part of such plan, the Secretary shall provide—

(A) cost estimates and schedules for developing new technologies that may be used to make submarines more capable

and more affordable; and

(B) an analysis of significant risks associated with fielding

the new technologies on the schedule proposed by the Secretary

and significant increased risks that are likely to be incurred

by accelerating that schedule.

(d) STREAMLINED ACQUISITION PROCESS.—The Secretary of

Defense shall prescribe and use streamlined acquisition policies

and procedures to reduce the cost and increase the efficiency of

the submarine program under this section.

(e) ANNUAL REVISIONS TO PLAN.—The Secretary shall submit

to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives an annual

update to the plan required to be submitted under subsection (b).

Each such update shall be submitted concurrent with the President’s budget submission to Congress for each of fiscal years 1998

through 2002.

(f) SPECIAL SUBMARINE REVIEW PANEL.—(1) The plan under

subsection (c) and each annual update under subsection (e) shall

be reviewed by a special bipartisan congressional panel working

with the Navy. The panel shall consist of three members of the

Committee on Armed Services of the Senate, who shall be designated by the chairman of that committee, and three members

of the Committee on National Security of the House of Representatives, who shall be designated by the chairman of that committee.

The members of the panel shall be briefed by the Secretary of

the Navy on the status of the submarine modernization program

and the status of submarine-related research and development

under this section.

(2) Not later than May 1 of each year, the panel shall report

to the Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives on the

panel’s findings and recommendations regarding the progress of

the Secretary in procuring a more capable, less expensive submarine. The panel may recommend any funding adjustments it

believes appropriate to achieve this objective.

(g) LINKAGE OF FISCAL YEAR 1998 AND 1999 SUBMARINES.—

Funds referred to in subsection (a)(1)(B) that are available for

Reports.

110 STAT. 210 PUBLIC LAW 104–106—FEB. 10, 1996

the fiscal year 1998 and fiscal year 1999 submarines under this

section may not be expended during fiscal year 1996 for the fiscal

year 1998 submarine (other than for design) unless funds are obligated or expended during such fiscal year for a contract in support

of procurement of the fiscal year 1999 submarine.

(h) CONTRACTS AUTHORIZED.—The Secretary of the Navy is

authorized, using funds available pursuant to paragraph (1)(B)

of subsection (a), to enter into contracts with Electric Boat Division

and Newport News Shipbuilding, and suppliers of components, during fiscal year 1996 for—

(1) the procurement of long-lead components for the fiscal

year 1998 submarine and the fiscal year 1999 submarine under

this section; and

(2) advance construction of such components and other

components for such submarines.

(i) ADVANCED RESEARCH PROJECTS AGENCY DEVELOPMENT OF

ADVANCED TECHNOLOGIES.—(1) Of the amount provided in section

201(4) for the Advanced Research Projects Agency, $100,000,000

is available only for development and demonstration of advanced

technologies for incorporation into the submarines constructed as

part of the plan developed under subsection (c). Such advanced

technologies shall include the following:

(A) Electric drive.

(B) Hydrodynamic quieting.

(C) Ship control automation.

(D) Solid-state power electronics.

(E) Wake reduction technologies.

(F) Superconductor technologies.

(G) Torpedo defense technologies.

(H) Advanced control concept.

(I) Fuel cell technologies.

(J) Propulsors.

(2) The Director of the Advanced Research Projects Agency

shall implement a rapid prototype acquisition strategy for both

land-based and at-sea subsystem and system demonstrations of

advanced technologies under paragraph (1). Such acquisition strategy shall be developed and implemented in concert with Electric

Boat Division and Newport News Shipbuilding and the Navy.

(j) REFERENCES TO CONTRACTORS.—For purposes of this section—

(1) the contractor referred to as ‘‘Electric Boat Division’’

is the Electric Boat Division of the General Dynamics Corporation; and

(2) the contractor referred to as ‘‘Newport News Shipbuilding’’ is the Newport News Shipbuilding and Drydock Company.

(k) POTENTIAL COMPETITOR DEFINED.—For purposes of this section, the term ‘‘potential competitor’’ means any source to which

the Secretary of the Navy has awarded, within 10 years before

the date of the enactment of this Act, a contract or contracts

to construct one or more nuclear attack submarines.

SEC. 132. RESEARCH FOR ADVANCED SUBMARINE TECHNOLOGY.

Of the amount appropriated for fiscal year 1996 for the National

Defense Sealift Fund, $50,000,000 shall be available only for the

Director of the Advanced Research Projects Agency for advanced

submarine technology activities.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 211

SEC. 133. COST LIMITATION FOR SEAWOLF SUBMARINE PROGRAM.

(a) LIMITATION OF COSTS.—Except as provided in subsection

(b), the total amount obligated or expended for procurement of

the SSN–21, SSN–22, and SSN–23 Seawolf class submarines may

not exceed $7,223,659,000.

(b) AUTOMATIC INCREASE OF LIMITATION AMOUNT.—The amount

of the limitation set forth in subsection (a) is increased by the

following amounts:

(1) The amounts of outfitting costs and post-delivery costs

incurred for the submarines referred to in such subsection.

(2) The amounts of increases in costs attributable to economic inflation after September 30, 1995.

(3) The amounts of increases in costs attributable to compliance with changes in Federal, State, or local laws enacted

after September 30, 1995.

(c) REPEAL OF SUPERSEDED PROVISION.—Section 122 of the

National Defense Authorization Act for Fiscal Year 1995 (Public

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

SEC. 134. 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. 135. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

(a) AUTHORIZATION FOR PROCUREMENT OF SIX VESSELS.—The

Secretary of the Navy is authorized to construct six Arleigh Burke

class destroyers in accordance with this section. Within the amount

authorized to be appropriated pursuant to section 102(a)(3),

$2,169,257,000 is authorized to be appropriated for construction

(including advance procurement) for the Arleigh Burke class

destroyers.

(b) CONTRACTS.—(1) The Secretary is authorized to enter into

contracts in fiscal year 1996 for the construction of three Arleigh

Burke class destroyers.

(2) The Secretary is authorized, in fiscal year 1997, to enter

into contracts for the construction of the other three Arleigh Burke

class destroyers covered by subsection (a), subject to the availability

of appropriations for such destroyers.

(3) In awarding contracts for the six vessels covered by subsection (a), the Secretary shall continue the contract award pattern

and sequence used by the Secretary for the procurement of Arleigh

Burke class destroyers during fiscal years 1994 and 1995.

(4) A contract for construction of a vessel or vessels that is

entered into in accordance with paragraph (1) shall include a clause

that limits the liability of the Government to the contractor for

any termination of the contract. The maximum liability of the

Government under the clause shall be the amount appropriated

for the vessel or vessels.

(c) USE OF AVAILABLE FUNDS.—(1) Subject to paragraph (2),

the Secretary may take appropriate actions to use for full funding

of a contract entered into in accordance with subsection (b)—

(A) any funds that, having been appropriated for shipbuilding and conversion programs of the Navy other than Arleigh

Burke class destroyer programs pursuant to the authorization

in section 102(a)(3), become excess to the needs of the Navy

110 STAT. 212 PUBLIC LAW 104–106—FEB. 10, 1996

for such programs by reason of cost savings achieved for such

programs; (B) any unobligated funds that are available to the Sec- retary for shipbuilding and conversion for any fiscal year before

fiscal year 1996; and (C) any funds that are appropriated after the date of the enactment of the Department of Defense Appropriations Act,

1996, to complete the full funding of the contract.

(2) The Secretary may not, in the exercise of authority provided in subparagraph (A) or (B) of paragraph (1), obligate funds for

a contract entered into in accordance with subsection (b) until

30 days after the date on which the Secretary submits to the

congressional defense committees in writing a notification of the

intent to obligate the funds. The notification shall set forth the

source or sources of the funds and the amount of the funds from

each such source that is to be so obligated.

SEC. 136. ACQUISITION PROGRAM FOR CRASH ATTENUATING SEATS.

(a) PROGRAM AUTHORIZED.—The Secretary of the Navy shall

establish a program to procure for, and install in, H–53E military

transport helicopters commercially developed, energy absorbing,

crash attenuating seats that the Secretary determines are consistent

with military specifications for seats for such helicopters.

(b) FUNDING.—To the extent provided in appropriations Acts,

of the unobligated balance of amounts appropriated for the Legacy

Resource Management Program pursuant to the authorization of

appropriations in section 301(5) of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2706),

not more than $10,000,000 shall be available to the Secretary

of the Navy, by transfer to the appropriate accounts, for carrying

out the program authorized in subsection (a).

SEC. 137. T–39N TRAINER AIRCRAFT.

(a) LIMITATION.—The Secretary of the Navy may not enter

into a contract, using funds appropriated for fiscal year 1996 for

procurement of aircraft for the Navy, for the acquisition of the

aircraft described in subsection (b) until 60 days after the date

on which the Under Secretary of Defense for Acquisition and Technology submits to the Committee on Armed Services of the Senate

and the Committee on National Security of the House of Representatives—

(1) an analysis of the proposed acquisition of such aircraft;

and

(2) a certification that the proposed acquisition during fiscal year 1996 (A) is in the best interest of the Government, and

(B) is the most cost effective means of meeting the requirements

of the Navy for aircraft for use in the training of naval flight

officers.

(b) COVERED AIRCRAFT.—Subsection (a) applies to certain T–

39 trainer aircraft that as of November 1, 1995 (1) are used by

the Navy under a lease arrangement for the training of naval

flight officers, and (2) are offered for sale to the Government.

SEC. 138. PIONEER UNMANNED AERIAL VEHICLE PROGRAM.

Not more than one-sixth of the amount appropriated pursuant

to this Act for the activities and operations of the Unmanned

Aerial Vehicle Joint Program Office (UAV–JPO), and none of the

unobligated balances of funds appropriated for fiscal years before

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 213

fiscal year 1996 for the activities and operations of such office,

may be obligated until the Secretary of the Navy certifies to the

Committee on Armed Services of the Senate and the Committee

on National Security of the House of Representatives that funds

have been obligated to equip nine Pioneer Unmanned Aerial Vehicle

systems with the Common Automatic Landing and Recovery System

(CARS).

Subtitle D—Air Force Programs

SEC. 141. B–2 AIRCRAFT PROGRAM.

(a) REPEAL OF LIMITATIONS.—The following provisions of law

are repealed:

(1) Section 151(c) of the National Defense Authorization

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

(2) Sections 131(c) and 131(d) of the National Defense

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

107 Stat. 1569).

(3) Section 133(e) of the National Defense Authorization

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

(b) CONVERSION OF LIMITATION TO ANNUAL REPORT REQUIREMENT.—Section 112 of the National Defense Authorization Act for

Fiscal Years 1990 and 1991 (Public Law 101–189; 103 Stat. 1373)

is amended—

(1) by striking out subsection (a);

(2) by striking out the matter in subsection (b) preceding

paragraph (1) and inserting in lieu thereof the following:

‘‘(a) ANNUAL REPORTING REQUIREMENT.—Not later than March

1 of each 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 that sets forth

the finding of the Secretary (as of January 1 of such year) on

each of the following matters:’’;

(3) by striking out ‘‘That’’ in paragraphs (1), (2), (3), (4),

and (5) and inserting in lieu thereof ‘‘Whether’’; (4) in paragraph (1), by striking out ‘‘latest’’ and all that

follows through ‘‘100–180’’ and inserting in lieu thereof

‘‘Requirements Correlation Matrix found in the user-defined

Operational Requirements Document (as contained in Attachment B to a letter from the Secretary of Defense to Congress

dated October 14, 1993)’’;

(5) in paragraph (3), by striking out ‘‘congressional defense’’;

(6) in paragraph (4), by striking out ‘‘such certification

to be submitted’’;

(7) by adding at the end the following: ‘‘(b) FIRST REPORT.—The Secretary shall submit the first annual report under subsection (a) not later than March 1, 1996.’’; and

(8) by amending the section heading to read as follows:

‘‘SEC. 112. ANNUAL REPORT ON B–2 BOMBER AIRCRAFT PROGRAM.’’.

(c) REPEAL OF CONDITION ON OBLIGATION OF FUNDS IN

ENHANCED BOMBER CAPABILITY FUND.—Section 133(d)(3) of the

National Defense Authorization Act for Fiscal Year 1995 (Public

Law 103–337; 108 Stat. 2688) is amended by striking out ‘‘If,’’

and all that follows through ‘‘bombers, the Secretary’’ and inserting

in lieu thereof ‘‘The Secretary’’.

110 STAT. 214 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 142. PROCUREMENT OF B–2 BOMBERS.

Of the amount authorized to be appropriated by section 103 for the B–2 bomber procurement program, not more than

$279,921,000 may be obligated or expended before March 31, 1996.

SEC. 143. MC–130H AIRCRAFT PROGRAM.

The limitation on the obligation of funds for payment of an award fee and the procurement of contractor-furnished equipment

for the MC–130H Combat Talon aircraft set forth in section 161(a)

of the National Defense Authorization Act for Fiscal Years 1990

and 1991 (Public Law 101–189; 103 Stat. 1388) shall cease to

apply upon determination by the Director of Operational Test and

Evaluation (and submission of a certification of that determination

to the congressional defense committees) that, based on the operational test and evaluation and the analysis conducted on that

aircraft to the date of that determination, such aircraft is operationally effective and meets the needs of its intended users.

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. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL AGENTS AND MUNITIONS.

(a) IN GENERAL.—The Secretary of Defense shall proceed with

the program for destruction of the chemical munitions stockpile

of the Department of Defense while maintaining the maximum

protection of the environment, the general public, and the personnel

involved in the actual destruction of the munitions. In carrying

out such program, the Secretary shall use technologies and procedures that will minimize the risk to the public at each site.

(b) INITIATION OF DEMILITARIZATION OPERATIONS.—The Secretary of Defense may not initiate destruction of the chemical

munitions stockpile stored at a site until the following support

measures are in place:

(1) Support measures that are required by Department

of Defense and Army chemical surety and security program

regulations.

(2) Support measures that are required by the general

and site chemical munitions demilitarization plans specific to

that installation.

(3) Support measures that are required by the permits

required by the Solid Waste Disposal Act (42 U.S.C. 6901

et seq.) and the Clean Air Act (42 U.S.C. 7401 et seq.) for

chemical munitions demilitarization operations at that installation, as approved by the appropriate State regulatory agencies.

(c) ASSESSMENT OF ALTERNATIVES.—(1) The Secretary of

Defense shall conduct an assessment of the current chemical demilitarization program and of measures that could be taken to reduce

50 USC 1521

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 215

significantly the total cost of the program, while ensuring maximum

protection of the general public, the personnel involved in the

demilitarization program, and the environment. The measures

considered shall be limited to those that would minimize the risk

to the public. The assessment shall be conducted without regard

to any limitation that would otherwise apply to the conduct of

such an assessment under any provision of law.

(2) The assessment shall be conducted in coordination with

the National Research Council.

(3) Based on the results of the assessment, the Secretary shall

develop appropriate recommendations for revision of the chemical

demilitarization program.

(4) Not later than March 1, 1996, the Secretary of Defense

shall submit to the congressional defense committees an interim

report assessing the current status of the chemical stockpile demilitarization program, including the results of the Army’s analysis

of the physical and chemical integrity of the stockpile and implications for the chemical demilitarization program, and providing recommendations for revisions to that program that have been included

in the budget request of the Department of Defense for fiscal

year 1997. The Secretary shall submit to the congressional defense

committees with the submission of the budget request of the Department of Defense for fiscal year 1998 a final report on the assessment

conducted in accordance with paragraph (1) and recommendations

for revision to the program, including an assessment of alternative

demilitarization technologies and processes to the baseline incineration process and potential reconfiguration of the stockpile that

should be incorporated in the program.

(d) ASSISTANCE FOR CHEMICAL WEAPONS STOCKPILE COMMUNITIES AFFECTED BY BASE CLOSURE.—(1) 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.

(2) The review shall include the following:

(A) An analysis of the economic impacts on these communities and the unique reuse problems facing local communities

associated with ongoing chemical weapons programs.

(B) Recommendations of the Secretary on methods for

expeditious and cost-effective transfer or lease of these facilities

to local communities for reuse by those communities.

(3) The Secretary shall submit to the congressional defense

committees a report on the review and evaluation under this subsection. The report shall be submitted not later than 90 days

after the date of the enactment of this Act.

SEC. 153. ADMINISTRATION OF CHEMICAL DEMILITARIZATION PROGRAM.

(a) TRAVEL FUNDING FOR MEMBERS OF CHEMICAL DEMILITARIZATION CITIZENS’ ADVISORY COMMISSIONS.—Section 172(g) of Public

Law 102–484 (50 U.S.C. 1521 note) is amended to read as follows:

‘‘(g) PAY AND EXPENSES.—Members of each commission shall

receive no pay for their involvement in the activities of their

commissions. Funds appropriated for the Chemical Stockpile

Demilitarization Program may be used for travel and associated

travel costs for Citizens’ Advisory Commissioners, when such travel

Reports.

Reports.

110 STAT. 216 PUBLIC LAW 104–106—FEB. 10, 1996

is conducted at the invitation of the Assistant Secretary of the

Army (Research, Development, and Acquisition).’’. (b) QUARTERLY REPORT CONCERNING TRAVEL FUNDING FOR CITI- ZENS’ ADVISORY COMMISSIONERS.—Section 1412(g) of the Depart- ment of Defense Authorization Act, 1986 (50 U.S.C. 1521(g)), is

amended—

(1) by striking out ‘‘(g) ANNUAL REPORT.—’’ and inserting in lieu thereof ‘‘(g) PERIODIC REPORTS.—’’;

(2) in paragraph (2)— (A) by striking out ‘‘Each such report shall con- tain—’’ and inserting in lieu thereof ‘‘Each annual report

shall contain—’’

(B) in subparagraph (B)— (i) by striking out ‘‘and’’ at the end of clause (iv);

(ii) by striking out the period at the end of clause (v) and inserting in lieu thereof ‘‘; and’’; and (iii) by adding at the end the following: ‘‘(vi) travel and associated travel costs for Citizens’

Advisory Commissioners under section 172(g) of Public Law

102–484 (50 U.S.C. 1521 note).’’;

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

(4) by inserting after paragraph (2) the following new para- graph (3):

‘‘(3) The Secretary shall transmit 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 a quarterly report containing an accounting of all funds expended (during the quarter covered

by the report) for travel and associated travel costs for Citizens’

Advisory Commissioners under section 172(g) of Public Law 102–

484 (50 U.S.C. 1521 note). The quarterly report for the final quarter

of the period covered by a report under paragraph (1) may be

included in that report.’’; and (5) in paragraph (4), as redesignated by paragraph (3)— (A) by striking out ‘‘this subsection’’ and inserting in lieu thereof ‘‘paragraph (1)’’; and (B) by adding at the end the following: ‘‘No quarterly

report is required under paragraph (3) after the transmittal

of the final report under paragraph (1).’’.

(c) DIRECTOR OF PROGRAM.—Section 1412(e)(3) of the Department of Defense Authorization Act, 1986 (50 U.S.C. 1521(e)(3)),

is amended by inserting ‘‘or civilian equivalent’’ after ‘‘general

officer’’.

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, $4,737,581,000.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 217

(2) For the Navy, $8,474,783,000.

(3) For the Air Force, $12,914,868,000.

(4) For Defense-wide activities, $9,693,180,000, of which—

(A) $251,082,000 is authorized for the activities of the

Director, Test and Evaluation; and

(B) $22,587,000 is authorized for the Director of Operational 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, $4,088,879,000 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) COUNCIL MEMBERSHIP.—Section 2902(b) of title 10, United

States Code, is amended—

(1) by striking out ‘‘thirteen’’ and inserting in lieu thereof

‘‘12’’;

(2) by striking out paragraph (3);

(3) by redesignating paragraphs (4), (5), (6), (7), (8), (9),

and (10) as paragraphs (3), (4), (5), (6), (7), (8), and (9), respectively; and

(4) in paragraph (8), as redesignated, by striking out ‘‘,

who shall be nonvoting members’’.

(b) ANNUAL REPORT.—(1) Section 2902 of such title is amended

in subsection (d)—

(A) by striking out paragraph (3) and inserting in lieu

thereof the following:

‘‘(3) To prepare an annual report that contains the following:

‘‘(A) A description of activities of the strategic environmental research and development program carried out during the fiscal year before the fiscal year in which the

report is prepared.

‘‘(B) A general outline of the activities planned for

the program during the fiscal year in which the report

is prepared.

‘‘(C) A summary of projects continued from the fiscal

year before the fiscal year in which the report is prepared

and projects expected to be started during the fiscal year

in which the report is prepared and during the following

fiscal year.’’; and

(B) in paragraph (4), by striking out ‘‘Federal Coordinating

Council on Science, Engineering, and Technology’’ and inserting

in lieu thereof ‘‘National Science and Technology Council’’.

(2) Section 2902 of such title is further amended—

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

(B) by redesignating subsection (g) as subsection (f); and

(C) by adding at the end the following new subsection:

110 STAT. 218 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(g)(1) Not later than February 1 of each year, the Council

shall submit to the Secretary of Defense the annual report prepared

pursuant to subsection (d)(3).

‘‘(2) Not later than March 15 of each year, the Secretary of

Defense shall submit such annual report to Congress, along with

such comments as the Secretary considers appropriate.’’.

(3) The amendments made by this subsection shall apply with

respect to the annual report prepared during fiscal year 1997 and

each fiscal year thereafter.

(c) POLICIES AND PROCEDURES.—Section 2902(e) of such title

is amended in paragraph (3) by striking out ‘‘programs, particularly’’

and all that follows through the end of the paragraph and inserting

in lieu thereof ‘‘programs;’’.

(d) 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,’’.

(e) CONTINUATION OF EXPIRING AUTHORITY.—(1) Section 2903(d)

of such title is amended in paragraph (2) by striking out the

last sentence.

(2) The amendment made by paragraph (1) shall take effect

as of September 29, 1995.

SEC. 204. DEFENSE DUAL USE TECHNOLOGY INITIATIVE.

(a) FISCAL YEAR 1996 AMOUNT.—Of the amount authorized

to be appropriated in section 201(4), $195,000,000 shall be available

for the defense dual use technology initiative conducted under chapter 148 of title 10, United States Code.

(b) AVAILABILITY OF FUNDS FOR EXISTING TECHNOLOGY

REINVESTMENT PROJECTS.—The Secretary of Defense shall use

amounts made available for the defense dual use technology initiative under subsection (a) only for the purpose of continuing or

completing technology reinvestment projects that were initiated

before October 1, 1995.

(c) NOTICE CONCERNING PROJECTS TO BE CARRIED OUT.—Of

the amounts made available for the defense dual use technology

initiative under subsection (a)—

(1) $145,000,000 shall be available for obligation only after

the date on which the Secretary of Defense notifies the congressional defense committees regarding the defense reinvestment

projects to be funded using such funds; and

(2) the remaining $50,000,000 shall be available for obligation only after the date on which the Secretary of Defense

certifies to the congressional defense committees that the

defense reinvestment projects to be funded using such funds

have been determined by the Joint Requirements Oversight

Council to be of significant military priority.

Effective date.

10 USC 2903

note.

10 USC 2902

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 219

Subtitle B—Program Requirements,

Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

(a) ALLOCATION OF FUNDS.—Of the amount authorized to be

appropriated pursuant to the authorization in section 201(3),

$50,000,000 shall be available for a competitive reusable rocket

technology program.

(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. TACTICAL MANNED RECONNAISSANCE.

(a) LIMITATION.—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

until the report required by subsection (b) is submitted to the

congressional defense committees. (b) REPORT.—The Secretary of the Air Force shall submit to

the congressional defense committees a report setting forth in detail

information about the manner in which the funds authorized by

section 201 of this Act and section 201 of the National Defense

Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108

Stat. 2690) are planned to be used during fiscal year 1996 for

research, development, test, and evaluation for the Air Force tactical

manned reconnaissance mission. At a minimum, the report shall

include the sources, by program element, of the funds and the

purposes for which the funds are planned to be used.

SEC. 213. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM.

(a) ALLOCATION OF FUNDS.—Of the amounts authorized to be

appropriated pursuant to the authorizations in section 201,

$200,156,000 shall be available for the Joint Advanced Strike Technology (JAST) program. Of that amount—

(1) $83,795,000 shall be available for program element

63800N in the budget of the Department of Defense for fiscal

year 1996;

(2) $85,686,000 shall be available for program element

63800F in such budget; and

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

63800E in such budget.

(b) ADDITIONAL ALLOCATION.—Of the amounts made available

under paragraphs (1), (2), and (3) of subsection (a)—

(1) $25,000,000 shall be available from the amount authorized to be appropriated pursuant to the authorization in section

201(2) for the conduct, during fiscal year 1996, of a 6-month

program definition phase for the A/F117X, an F–117 fighter

aircraft modified for use by the Navy as a long-range, medium

attack aircraft; and

(2) $7,000,000 shall be available to provide for competitive

engine concepts.

110 STAT. 220 PUBLIC LAW 104–106—FEB. 10, 1996

(c) LIMITATION.—Not more than 75 percent of the amount

appropriated for the Joint Advanced Strike Technology program

pursuant to the authorizations in section 201 may be obligated

until a period of 30 days has expired after the report required

by subsection (d) is submitted to the congressional defense committees.

(d) REPORT.—The Secretary of Defense shall submit to the congressional defense committees a report, in unclassified and

classified forms, not later than March 1, 1996, that sets forth

in detail the following information for the period 1997 through

2005:

(1) The total joint requirement, assuming the capability to successfully conduct two nearly simultaneous major regional

contingencies, for the following: (A) Numbers of bombers, tactical combat aircraft, and

attack helicopters and the characteristics required of those

aircraft in terms of capabilities, range, and low-observability.

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

munitions.

(C) Cruise missiles.

(D) Ground-based systems, such as the Extended

Range-Multiple Launch Rocket System and the Army Tactical Missile System (ATACMS), for joint warfighting

capability.

(2) The warning time assumptions for two nearly simultaneous major regional contingencies, and the effects on future

tactical attack/fighter aircraft requirements using other warning time assumptions.

(3) The requirements that exist for the Joint Advanced

Strike Technology program that cannot be met by existing

aircraft or by those in development.

SEC. 214. DEVELOPMENT OF LASER PROGRAM.

Of the amount authorized to be appropriated by section 201(2),

$9,000,000 shall be used for the development by the Naval High

Energy Laser Office of a continuous wave, superconducting radio

frequency free electron laser program.

SEC. 215. NAVY MINE COUNTERMEASURES PROGRAM.

Section 216(a) of the National Defense Authorization Act for

Fiscal Years 1992 and 1993 (Public Law 102–190; 105 Stat. 1317)

is amended—

(1) by striking out ‘‘Director, Defense Research and

Engineering’’ and inserting in lieu thereof ‘‘Under Secretary

of Defense for Acquisition and Technology’’; and (2) by striking out ‘‘fiscal years 1995 through 1999’’ and

inserting in lieu thereof ‘‘fiscal years 1996 through 1999’’.

SEC. 216. SPACE-BASED INFRARED SYSTEM.

(a) PROGRAM BASELINE.—The Secretary of Defense shall establish a program baseline for the Space-Based Infrared System. Such

baseline shall—

(1) include—

(A) program cost and an estimate of the funds required

for development and acquisition activities for each fiscal

year in which such activities are planned to be carried

out;

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 221

(B) a comprehensive schedule with program milestones

and exit criteria; and

(C) optimized performance parameters for each segment of an integrated space-based infrared system;

(2) be structured to achieve initial operational capability

of the low earth orbit space segment (the Space and Missile

Tracking System) in fiscal year 2003, with a first launch of

Block I satellites in fiscal year 2002;

(3) ensure integration of the Space and Missile Tracking

System into the architecture of the Space-Based Infrared System; and

(4) ensure that the performance parameters of all space

segment components are selected so as to optimize the performance of the Space-Based Infrared System while minimizing

unnecessary redundancy and cost.

(b) REPORT ON PROGRAM BASELINE.—Not later than 60 days

after the date of the enactment of this Act, the Secretary of Defense

shall submit to the congressional defense committees a report,

in classified and unclassified forms as necessary, on the program

baseline established under subsection (a).

(c) ESTABLISHMENT OF PROGRAM ELEMENTS.—In the budget

justification materials submitted to Congress in support of the

Department of Defense budget for any fiscal year after fiscal year

1996 (as submitted in the budget of the President under section

1105(a) of title 31, United States Code), the amount requested

for the Space-Based Infrared System shall be set forth in accordance

with the following program elements:

(1) Space Segment High.

(2) Space Segment Low (Space and Missile Tracking System).

(3) Ground Segment.

(d) FUNDING FOR FISCAL YEAR 1996.—Of the amounts authorized to be appropriated pursuant to section 201(3) for fiscal year

1996, or otherwise made available to the Department of Defense

for fiscal year 1996, the following amounts shall be available for

the Space-Based Infrared System:

(1) $265,744,000 for demonstration and validation, of which

$249,824,000 shall be available for the Space and Missile Tracking System.

(2) $162,219,000 for engineering and manufacturing development, of which $9,400,000 shall be available for the Miniature

Sensor Technology Integration program.

SEC. 217. DEFENSE NUCLEAR AGENCY PROGRAMS.

(a) AGENCY FUNDING.—Of the amounts authorized to be appropriated to the Department of Defense in section 201, $241,703,000

shall be available for the Defense Nuclear Agency.

(b) TUNNEL CHARACTERIZATION AND NEUTRALIZATION PROGRAM.—Of the amount made available under subsection (a),

$3,000,000 shall be available for a tunnel characterization and

neutralization program to be managed by the Defense Nuclear

Agency as part of the counterproliferation activities of the Department of Defense.

(c) LONG-TERM RADIATION TOLERANT MICROELECTRONICS PROGRAM.—(1) Of the amount made available under subsection (a),

$6,000,000 shall be available for the establishment of a long-term

110 STAT. 222 PUBLIC LAW 104–106—FEB. 10, 1996

radiation tolerant microelectronics program to be managed by the

Defense Nuclear Agency for the purposes of— (A) providing for the development of affordable and effective

hardening technologies and for incorporation of such technologies into systems;

(B) sustaining the supporting industrial base; and

(C) ensuring that a use of a nuclear weapon in regional

threat scenarios does not interrupt or defeat the continued

operability of systems of the Armed Forces exposed to the

combined effects of radiation emitted by the weapon.

(2) Not later than 120 days after the date of the enactment

of this Act, the Secretary of Defense shall submit to Congress

a report on how the long-term radiation tolerant microelectronics

program is to be conducted and funded in the fiscal years after

fiscal year 1996 that are covered by the future-years defense program submitted to Congress in 1995.

(d) THERMIONICS PROGRAM.—Of the amount made available

under subsection (a), $10,000,000 shall be available for the

thermionics program, to be managed by the Defense Nuclear

Agency.

(e) ELECTROTHERMAL GUN TECHNOLOGY PROGRAM.—Of the

amount made available under subsection (a), $4,000,000 shall be

available for the electrothermal gun technology program of the

Defense Nuclear Agency.

(f) COUNTERTERROR EXPLOSIVES RESEARCH PROGRAM.—Of the

amount made available under subsection (a), $4,000,000 shall be

available for the counterterror explosives research program of the

Defense Nuclear Agency.

(g) TRANSFER OF UNOBLIGATED BALANCE.—The Secretary of

Defense shall transfer to the Defense Nuclear Agency, to be available for the thermionics program, an amount not to exceed

$12,000,000 from the unobligated balance of funds authorized and

appropriated for research, development, test, and evaluation for

fiscal year 1995 for the Air Force for the Advanced Weapons Program.

SEC. 218. COUNTERPROLIFERATION SUPPORT PROGRAM.

(a) FUNDING.—Of the funds authorized to be appropriated to

the Department of Defense under section 201(4), $138,237,000 shall

be available for the Counterproliferation Support Program, of which

$30,000,000 shall be available for a tactical antisatellite technologies program.

(b) ADDITIONAL AUTHORITY TO TRANSFER AUTHORIZATIONS.—

(1) In addition to the transfer authority provided in section 1001,

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 to counterproliferation

programs, projects, and activities identified as areas for progress

by the Counterproliferation Program Review Committee established

by section 1605 of the National Defense Authorization Act for

Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1845). 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 transferred under the

authority of this subsection may not exceed $50,000,000.

Reports.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 223

(3) The authority provided by this subsection to transfer

authorizations—

(A) may only be used to provide authority for items that

have a higher priority than the items from which authority

is transferred; and

(B) may not be used to provide authority for an item

that has been denied authorization by Congress.

(4) 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.

(5) The Secretary of Defense shall promptly notify Congress

of transfers made under the authority of this subsection.

SEC. 219. NONLETHAL WEAPONS STUDY.

(a) FINDINGS.—Congress finds the following:

(1) The role of the United States military in operations

other than war has increased.

(2) Weapons and instruments that are nonlethal in application yet immobilizing could have widespread operational utility

and application.

(3) The use of nonlethal weapons in operations other than

war poses a number of important doctrine, legal, policy, and

operations questions which should be addressed in a comprehensive and coordinated manner.

(4) The development of nonlethal technologies continues

to spread across military and agency budgets.

(5) The Department of Defense should provide improved

budgetary focus and management direction to the nonlethal

weapons program.

(b) RESPONSIBILITY FOR DEVELOPMENT OF NONLETHAL WEAPONS

TECHNOLOGY.—Not later than February 15, 1996, the Secretary

of Defense shall assign centralized responsibility for development

(and any other functional responsibility the Secretary considers

appropriate) of nonlethal weapons technology to an existing office

within the Office of the Secretary of Defense or to a military

service as the executive agent.

(c) REPORT.—Not later than February 15, 1996, the Secretary

of Defense shall submit to Congress a report setting forth the

following:

(1) The name of the office or military service assigned

responsibility for the nonlethal weapons program by the Secretary of Defense pursuant to subsection (b) and a discussion

of the rationale for such assignment.

(2) The degree to which nonlethal weapons are required

by more than one of the armed forces.

(3) The time frame for the development and deployment

of such weapons.

(4) The appropriate role of the military departments and

defense agencies in the development of such weapons.

(5) The military doctrine, legal, policy, and operational

issues that must be addressed by the Department of Defense

before such weapons achieve operational capability.

(d) AUTHORIZATION.—Of the amount authorized to be appropriated under section 201(4), $37,200,000 shall be available for

nonlethal weapons programs and nonlethal technologies programs.

Notification.

110 STAT. 224 PUBLIC LAW 104–106—FEB. 10, 1996

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

‘‘nonlethal weapon’’ means a weapon or instrument the effect of

which on human targets is less than fatal.

SEC. 220. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS AND UNIVERSITY-AFFILIATED RESEARCH CENTERS.

(a) CENTERS COVERED.—Funds appropriated or otherwise made

available for the Department of Defense for fiscal year 1996 pursuant to an authorization of appropriations in section 201 may be

obligated to procure work from a federally funded research and

development center (in this section referred to as an ‘‘FFRDC’’)

or a university-affiliated research center (in this section referred

to as a ‘‘UARC’’) only in the case of a center named in the report

required by subsection (b) and, in the case of such a center, only

in an amount not in excess of the amount of the proposed funding

level set forth for that center in such report.

(b) REPORT ON ALLOCATIONS FOR CENTERS.—(1) Not later than

30 days after the date of the enactment of this Act, 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 containing—

(A) the name of each FFRDC and UARC from which work

is proposed to be procured for the Department of Defense

for fiscal year 1996; and

(B) for each such center, the proposed funding level and

the estimated personnel level for fiscal year 1996.

(2) The total of the proposed funding levels set forth in the

report for all FFRDCs and UARCs may not exceed the amount

set forth in subsection (d).

(c) LIMITATION PENDING SUBMISSION OF REPORT.—Not more

than 15 percent of the funds appropriated or otherwise made available for the Department of Defense for fiscal year 1996 pursuant

to an authorization of appropriations in section 201 for FFRDCs

and UARCs may be obligated to procure work from an FFRDC

or UARC until the Secretary of Defense submits the report required

by subsection (b).

(d) FUNDING.—Of the amounts authorized to be appropriated

by section 201, not more than a total of $1,668,850,000 may be

obligated to procure services from the FFRDCs and UARCs named

in the report required by subsection (b).

(e) AUTHORITY TO WAIVE FUNDING LIMITATION.—The Secretary

of Defense may waive the limitation regarding the maximum funding amount that applies under subsection (a) to an FFRDC or

UARC. Whenever the Secretary proposes to make such a waiver,

the Secretary shall submit to the Committee on Armed Services

of the Senate and the Committee on National Security of the

House of Representatives notice of the proposed waiver and the

reasons for the waiver. The waiver may then be made only after

the end of the 60-day period that begins on the date on which

the notice is submitted to those committees, unless the Secretary

determines that it is essential to the national security that funds

be obligated for work at that center in excess of that limitation

before the end of such period and notifies those committees of

that determination and the reasons for the determination.

(f) FIVE-YEAR PLAN.—(1) 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

Notice.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 225

by FFRDCs and UARCs and establish a framework for the future

workload of such centers.

(2) The plan shall—

(A) set forth the manner in which the Secretary of Defense

could achieve by October 1, 2000, implementation by FFRDCs

and UARCs of only those core activities, as defined by the

Secretary, that require the unique capabilities and arrangements afforded by such centers; and

(B) include an assessment of the number of personnel

needed in each FFRDC and UARC during each year over the

five years covered by the plan.

(3) Not later than February 1, 1996, the Secretary of Defense

shall submit to the congressional defense committees a report on

the plan required by this subsection.

SEC. 221. JOINT SEISMIC PROGRAM AND GLOBAL SEISMIC NETWORK.

Of the amount authorized to be appropriated under section

201(3), $9,500,000 shall be available for fiscal year 1996 (in program

element 61101F in the budget of the Department of Defense for

fiscal year 1996) for continuation of the Joint Seismic Program

and Global Seismic Network.

SEC. 222. HYDRA–70 ROCKET PRODUCT IMPROVEMENT PROGRAM.

(a) FUNDING AUTHORIZATION.—Of the amount authorized to

be appropriated under section 201(1) for Other Missile Product

Improvement Programs, $10,000,000 is authorized to be appropriated for a Hydra–70 rocket product improvement program and

to be made available under such program for full qualification

and operational platform certification of a Hydra–70 rocket

described in subsection (b) for use on the Apache attack helicopter.

(b) HYDRA–70 ROCKET COVERED.—The Hydra–70 rocket

referred to in subsection (a) is any Hydra–70 rocket that has as

its propulsion component a 2.75-inch rocket motor that is a

nondevelopmental item and uses a composite propellant.

(c) COMPETITION REQUIRED.—The Secretary of the Army shall

conduct the product improvement program referred to in subsection

(a) with full and open competition.

(d) SUBMISSION OF TECHNICAL DATA PACKAGE REQUIRED.—

Upon the full qualification and operational platform certification

of a Hydra–70 rocket as described in subsection (a), the contractor

providing the rocket so qualified and certified shall submit the

technical data package for the rocket to the Secretary of the Army.

The Secretary shall use the technical data package in competitions

for contracts for the procurement of Hydra–70 rockets described

in subsection (b) for the Army.

(e) DEFINITIONS.—For purposes of this section, the terms ‘‘full

and open competition’’ and ‘‘nondevelopmental item’’ have the meanings given such terms in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

SEC. 223. LIMITATION ON OBLIGATION OF FUNDS UNTIL RECEIPT OF

ELECTRONIC COMBAT CONSOLIDATION MASTER PLAN.

(a) LIMITATION.—Not more than 75 percent of the amounts

appropriated or otherwise made available pursuant to the

authorization of appropriations in section 201 for test and evaluation program elements 65896A, 65864N, 65807F, and 65804D in

the budget of the Department of Defense for fiscal year 1996 may

Reports.

110 STAT. 226 PUBLIC LAW 104–106—FEB. 10, 1996

be obligated until 14 days after the date on which the congressional

defense committees receive the plan specified in subsection (b). (b) PLAN.—The plan referred to in subsection (a) is the master

plan for electronic combat consolidation described under DefenseWide Programs under Research, Development, Test, and Evaluation

in the Report of the Committee on Armed Services of the House

of Representatives on H.R. 4301 (House Report 103–499), dated

May 10, 1994.

SEC. 224. REPORT ON REDUCTIONS IN RESEARCH, DEVELOPMENT,

TEST, AND EVALUATION.

(a) REPORT REQUIREMENT.—Not later than March 15, 1996,

the Under Secretary of Defense (Comptroller) shall submit to the

congressional defense committees a report that sets forth in detail

the allocation of reductions for research, development, test, and

evaluation described in subsection (b).

(b) DESCRIPTION OF REDUCTIONS.—The reductions for research,

development, test, and evaluation covered by subsection (a) are

the following Army, Navy, Air Force, and Defense-wide reductions,

as required by the Department of Defense Appropriations Act, 1996: (1) General reductions.

(2) Reductions to reflect savings from revised economic

assumptions. (3) Reductions to reflect the funding ceiling for defense federally funded research and development centers. (4) Reductions for savings through improved management of contractor automatic data processing costs charged through

indirect rates on Department of Defense acquisition contracts.

SEC. 225. 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 if— (1) the Secretary determines that the technical risk associ- ated with liquid propellant will increase costs and delay the

initial operational capability of the Crusader; and (2) the Secretary notifies the congressional defense commit- tees 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 program

after August 15, 1996, unless— (1) the report required by subsection (c) has been submitted by that date; and (2) such report includes documentation of significant progress, as determined by the Secretary, toward meeting the

objectives for the liquid propellant portion of the program,

as set forth in the baseline description for the Crusader program

and approved by the Office of the Secretary of Defense on

January 4, 1995.

(c) REPORT REQUIRED.—Not later than August 1, 1996, the

Secretary of the Army shall submit to the congressional defense

committees a report containing documentation of the progress being

made in meeting the objectives set forth in the baseline description

for the Crusader program and approved by the Office of the SecNotification.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 227

retary of Defense on January 4, 1995. The report shall specifically

address the progress being made toward meeting the following

objectives:

(1) Establishment of breech and ignition design criteria

for rate of fire for the cannon of the Crusader.

(2) Selection of a satisfactory ignition concept for the next

prototype of the cannon.

(3) Selection, on the basis of modeling and simulation,

of design concepts to prevent chamber piston reversals, and

validation of the selected concepts by gun and mock chamber

firings.

(4) Achievement of an understanding of the chemistry and

physics of propellant burn resulting from the firing of liquid

propellant into any target zone, and achievement, on the basis

of modeling and simulation, of an ignition process that is

predictable.

(5) Completion of an analysis of the management of heat

dissipation for the full range of performance requirements for

the cannon, completion of concept designs supported by that

analysis, and proposal of such concept designs for engineering.

(6) Development, for integration into the next prototype

of the cannon, of engineering designs to control pressure oscillations in the chamber of the cannon during firing.

(7) Completion of 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, and documentation of predictable reactions of contaminated or sensitized liquid propellant.

(d) ADDITIONAL MATTERS TO BE COVERED BY REPORT.—The

report required by subsection (c) also shall contain the following:

(1) An assertion that all the known hazards associated

with liquid propellant have been identified and are controllable

to acceptable levels.

(2) An assessment of the technology for each component

of the Crusader (the cannon, vehicle, and crew module), including, for each performance goal of the Crusader program (including the goal for 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 after August 1, 1996, and the cost of each

unit of the Crusader in the year the Crusader will be completed.

SEC. 226. DEMILITARIZATION OF CONVENTIONAL MUNITIONS, ROCKETS, AND EXPLOSIVES.

Of the amount appropriated pursuant to the authorization in

section 201 for explosives demilitarization technology, $15,000,000

shall be available to establish an integrated program for the development and demonstration of conventional munitions and explosives

demilitarization technologies that comply with applicable environmental laws for the demilitarization and disposal of unserviceable,

obsolete, or nontreaty compliant munitions, rocket motors, and

explosives.

110 STAT. 228 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 227. DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.

(a) LIMITATION.—Not more than three percent of the total

amount appropriated for research and development under the

Defense Airborne Reconnaissance program pursuant to the

authorizations of appropriations in section 201 may be obligated

for systems engineering and technical assistance (SETA) contracts

until—

(1) funds are obligated (out of such appropriated funds) for—

(A) the upgrade of U–2 aircraft senior year electro- optical reconnaissance sensors to the newest configuration;

and

(B) the upgrade of the U–2 SIGINT system; and (2) the Under Secretary of Defense for Acquisition and Technology submits the report required under subsection (b).

(b) REPORT ON U–2-RELATED UPGRADES.—(1) Not later than

April 1, 1996, the Under Secretary of Defense for Acquisition and

Technology shall transmit to the Committee on Armed Services

of the Senate and the Committee on National Security of the

House of Representatives a report on obligations of funds for

upgrades relating to airborne reconnaissance by U–2 aircraft. (2) The report shall set forth the specific purposes under the general purposes described in subparagraphs (A) and (B) of subsection (a)(1) for which funds have been obligated (as of the date

of the report) and the amounts that have been obligated (as of

such date) for those specific purposes.

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. FINDINGS.

Congress makes the following findings: (1) The emerging threat that is posed to the national secu- rity interests of the United States by the proliferation of ballistic missiles is significant and growing, both in terms of numbers

of missiles and in terms of the technical capabilities of those

missiles.

(2) The deployment of ballistic missile defenses is a nec- essary, but not sufficient, element of a broader strategy to

discourage both the proliferation of weapons of mass destruction

and the proliferation of the means of their delivery and to

defend against the consequences of such proliferation. (3) The deployment of effective Theater Missile Defense

systems can deter potential adversaries of the United States

from escalating a conflict by threatening or attacking United

States forces or the forces or territory of coalition partners

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.

(4) United States intelligence officials have provided intelligence estimates to congressional committees that (A) the trend

Ballistic Missile

Defense Act of

1995.

10 USC 2431

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 229

in missile proliferation is toward longer range and more sophisticated ballistic missiles, (B) North Korea may deploy an intercontinental ballistic missile capable of reaching Alaska or

beyond within five years, and (C) although a new, indigenously

developed ballistic missile threat to the continental United

States is not foreseen within the next ten years, determined

countries can acquire intercontinental ballistic missiles in the

near future and with little warning by means other than indigenous development. (5) The development and deployment by the United States and its allies of effective defenses against ballistic missiles

of all ranges will reduce the incentives for countries to acquire

such missiles or to augment existing missile capabilities. (6) The concept of mutual assured destruction (based upon an offense-only form of deterrence), which is the major philosophical rationale underlying the ABM Treaty, is now questionable as a basis for stability in a multipolar world in which

the United States and the states of the former Soviet Union

are seeking to normalize relations and eliminate Cold War

attitudes and arrangements. (7) The development and deployment of a National Missile Defense system against the threat of limited ballistic missile

attacks—

(A) would strengthen deterrence at the levels of forces agreed to by the United States and Russia under the

Strategic Arms Reduction Talks Treaty (START–I); and (B) would further strengthen deterrence if reductions below the levels permitted under START–I should be

agreed to and implemented in the future.

(8) The distinction made during the Cold War, based upon the technology of the time, between strategic ballistic missiles

and nonstrategic ballistic missiles, which resulted in the distinction made in the ABM Treaty between strategic defense and

nonstrategic defense, has become obsolete because of technological advancement (including the development by North Korea

of long-range Taepo-Dong I and Taepo-Dong II missiles) and,

therefore, that distinction in the ABM Treaty should be

reviewed.

SEC. 233. BALLISTIC MISSILE DEFENSE POLICY.

It is the policy of the United States— (1) to deploy affordable and operationally effective theater missile defenses to protect forward-deployed and expeditionary

elements of the Armed Forces of the United States and to

complement the missile defense capabilities of forces of coalition

partners and of allies of the United States; and (2) to seek a cooperative, negotiated transition to a regime

that does not feature an offense-only form of deterrence as

the basis for strategic stability.

SEC. 234. THEATER MISSILE DEFENSE ARCHITECTURE.

(a) ESTABLISHMENT OF CORE PROGRAM.—To implement the policy established in paragraph (1) of section 233, the Secretary of

Defense shall restructure the core theater missile defense program

to consist of the following systems, to be carried out so as to

achieve the specified capabilities:

(1) The Patriot PAC–3 system, with a first unit equipped (FUE) during fiscal year 1998.

110 STAT. 230 PUBLIC LAW 104–106—FEB. 10, 1996

(2) The Navy Lower Tier (Area) system, with a user oper- ational evaluation system (UOES) capability during fiscal year

1997 and an initial operational capability (IOC) during fiscal

year 1999.

(3) The Theater High-Altitude Area Defense (THAAD) system, with a user operational evaluation system (UOES) capability not later than fiscal year 1998 and a first unit equipped

(FUE) not later than fiscal year 2000.

(4) The Navy Upper Tier (Theater Wide) system, with

a user operational evaluation system (UOES) capability during

fiscal year 1999 and an initial operational capability (IOC)

during fiscal year 2001.

(b) USE OF STREAMLINED ACQUISITION PROCEDURES.—The Secretary of Defense shall prescribe and use streamlined acquisition

policies and procedures to reduce the cost and increase the efficiency

of developing and deploying the theater missile defense systems

specified in subsection (a).

(c) INTEROPERABILITY AND SUPPORT OF CORE SYSTEMS.—To

maximize effectiveness and flexibility of the systems comprising

the core theater missile defense program, the Secretary of Defense

shall ensure that those systems are integrated and complementary

and are fully capable of exploiting external sensor and battle

management support from systems such as—

(A) the Cooperative Engagement Capability (CEC) system

of the Navy;

(B) airborne sensors; and

(C) space-based sensors (including, in particular, the Space

and Missile Tracking System).

(d) FOLLOW-ON SYSTEMS.—(1) The Secretary of Defense shall

prepare an affordable development plan for theater missile defense

systems to be developed as follow-on systems to the core systems

specified in subsection (a). The Secretary shall make the selection

of a system for inclusion in the plan based on the capability of

the system to satisfy military requirements not met by the systems

in the core program and on the capability of the system to use

prior investments in technologies, infrastructure, and battlemanagement capabilities that are incorporated in, or associated

with, the systems in the core program.

(2) The Secretary may not proceed with the development of

a follow-on theater missile defense system beyond the Demonstration/Validation stage of development unless the Secretary designates that system as a part of the core program under this

section and submits to the congressional defense committees notice

of that designation. The Secretary shall include with any such

notification a report describing—

(A) the requirements for the system and the specific threats

that such system is designed to counter;

(B) how the system will relate to, support, and build upon

existing core systems;

(C) the planned acquisition strategy for the system; and

(D) a preliminary estimate of total program cost for that

system and the effect of development and acquisition of such

system on Department of Defense budget projections.

(e) PROGRAM ACCOUNTABILITY REPORT.—(1) As part of the

annual report of the Ballistic Missile Defense Organization required

by section 224 of Public Law 101–189 (10 U.S.C. 2431 note), the

Secretary of Defense shall describe the technical milestones, the

Reports.

Notice.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 231

schedule, and the cost of each phase of development and acquisition

(together with total estimated program costs) for each core and

follow-on theater missile defense program. (2) As part of such report, the Secretary shall describe, with

respect to each program covered in the report, any variance in

the technical milestones, program schedule milestones, and costs

for the program compared with the information relating to that

program in the report submitted in the previous year and in the

report submitted in the first year in which that program was

covered.

(f) REPORTS ON TMD SYSTEM LIMITATIONS UNDER ABM

TREATY.—(1) Whenever, after January 1, 1993, the Secretary of

Defense issues a certification with respect to the compliance of

a particular Theater Missile Defense system with the ABM Treaty,

the Secretary shall transmit to the Committee on Armed Services

of the Senate and the Committee on National Security of the

House of Representatives a copy of such certification. Such transmittal shall be made not later than 30 days after the date on which

such certification is issued, except that in the case of a certification

issued before the date of the enactment of this Act, such transmittal

shall be made not later than 60 days after the date of the enactment

of this Act.

(2) If a certification under paragraph (1) is based on application

of a policy concerning United States compliance with the ABM

Treaty that differs from the policy described in section 235(b)(1),

the Secretary shall include with the transmittal under that paragraph a report providing a detailed assessment of—

(A) how the policy applied differs from the policy described

in section 235(b)(1); and

(B) how the application of that policy (rather than the

policy described in section 235(b)(1)) will affect the cost, schedule, and performance of that system.

SEC. 235. PROHIBITION ON USE OF FUNDS TO IMPLEMENT AN INTERNATIONAL AGREEMENT CONCERNING THEATER MISSILE

DEFENSE SYSTEMS.

(a) FINDINGS.—(1) Congress hereby reaffirms—

(A) the finding in section 234(a)(7) of the National Defense

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

107 Stat. 1595; 10 U.S.C. 2431 note) that the ABM Treaty

was not intended to, and does not, apply to or limit research,

development, testing, or deployment of missile defense systems,

system upgrades, or system components that are designed to

counter modern theater ballistic missiles, regardless of the

capabilities of such missiles, unless those systems, system

upgrades, or system components are tested against or have

demonstrated capabilities to counter modern strategic ballistic

missiles; and

(B) the statement in section 232 of the National Defense

Authorization Act for Fiscal Year 1995 (Public Law 103–337;

108 Stat. 2700) that the United States shall not be bound

by any international agreement entered into by the President

that would substantively modify the ABM Treaty unless the

agreement is entered into pursuant to the treaty making power

of the President under the Constitution.

(2) Congress also finds that the demarcation standard described

in subsection (b)(1) for compliance of a missile defense system,

Certification.

110 STAT. 232 PUBLIC LAW 104–106—FEB. 10, 1996

system upgrade, or system component with the ABM Treaty is

based upon current technology. (b) SENSE OF CONGRESS CONCERNING COMPLIANCE POLICY.— It is the sense of Congress that—

(1) unless a missile defense system, system upgrade, or

system component (including one that exploits data from spacebased or other external sensors) is flight tested in an ABMqualifying flight test (as defined in subsection (e)), that system,

system upgrade, or system component has not, for purposes

of the ABM Treaty, been tested in an ABM mode nor been

given capabilities to counter strategic ballistic missiles and,

therefore, is not subject to any application, limitation, or obligation under the ABM Treaty; and

(2) any international agreement that would limit the

research, development, testing, or deployment of missile defense

systems, system upgrades, or system components that are

designed to counter modern theater ballistic missiles in a manner that would be more restrictive than the compliance criteria

specified in paragraph (1) should be entered into only pursuant

to the treaty making powers of the President under the Constitution.

(c) PROHIBITION ON FUNDING.—Funds appropriated or otherwise

made available to the Department of Defense for fiscal year 1996

may not be obligated or expended to implement an agreement,

or any understanding with respect to interpretation of the ABM

Treaty, between the United States and any of the independent

states of the former Soviet Union entered into after January 1,

1995, that—

(1) would establish a demarcation between theater missile

defense systems and anti-ballistic missile systems for purposes

of the ABM Treaty; or

(2) would restrict the performance, operation, or deployment of United States theater missile defense systems.

(d) EXCEPTIONS.—Subsection (c) does not apply—

(1) to the extent provided by law in an Act enacted after

this Act;

(2) to expenditures to implement that portion of any such

agreement or understanding that implements the policy set

forth in subsection (b)(1); or

(3) to expenditures to implement any such agreement or

understanding that is approved as a treaty or by law.

(e) 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 COOPERATION WITH ALLIES.

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 the missile defense capabilities developed

and deployed by its allies and possible coalition partners. Therefore,

the Congress urges the President—

(1) to pursue high-level discussions with allies of the United

States 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;

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 233

(2) 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

(3) in the interim, to seek agreement with allies of the

United States 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—

(A) the sharing of early warning information derived

from sensors deployed by the United States and other

states;

(B) 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

(C) operational level planning to exploit current missile

defense capabilities and to help define future requirements.

SEC. 237. ABM TREATY DEFINED.

For purposes of this subtitle, the term ‘‘ABM Treaty’’ means

the Treaty Between the United States of America 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 the 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 (10 U.S.C. 2431 note) is

repealed.

Subtitle D—Other Ballistic Missile Defense

Provisions

SEC. 251. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.

(a) ELEMENTS SPECIFIED.—In the budget justification materials

submitted to Congress in support of the Department of Defense

budget for any fiscal year after fiscal year 1996 (as submitted

with the budget of the President under section 1105(a) of title

31, United States Code), the amount requested for activities of

the Ballistic Missile Defense Organization shall be set forth in

accordance with the following program elements:

(1) The Patriot system.

(2) The Navy Lower Tier (Area) system.

(3) The Theater High-Altitude Area Defense (THAAD) system.

(4) The Navy Upper Tier (Theater Wide) system.

(5) The Corps Surface-to-Air Missile (SAM) system.

(6) Other Theater Missile Defense Activities.

(7) National Missile Defense.

(8) Follow-On and Support Technologies.

(b) TREATMENT OF CORE THEATER MISSILE DEFENSE PROGRAMS.—Amounts requested for core theater missile defense programs specified in section 234 shall be specified in individual,

dedicated program elements, and amounts appropriated for such

10 USC 221 note.

110 STAT. 234 PUBLIC LAW 104–106—FEB. 10, 1996

programs shall be available only for activities covered by those

program elements. (c) BM/C3I PROGRAMS.—Amounts requested for programs,

projects, and activities involving battle management, command,

control, communications, and intelligence (BM/C3I) shall be included

in the ‘‘Other Theater Missile Defense Activities’’ program element

or the ‘‘National Missile Defense’’ program element, as determined

on the basis of the primary objectives involved.

(d) MANAGEMENT AND SUPPORT.—Each program element shall

include requests for the amounts necessary for the management

and support of the programs, projects, and activities contained

in that program element.

SEC. 252. 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. 253. 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).

Certification.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 235

(4) Section 8123 of the Department of Defense Appropria- tions Act, 1989 (Public Law 100–463; 102 Stat. 2270–40).

(5) Section 8133 of the Department of Defense Appropria- tions 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).

(7) Section 242 of the National Defense Authorization Act

for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1603;

10 U.S.C. 2431 note).

(8) Section 235 of the National Defense Authorization Act

for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2701;

10 U.S.C. 221 note).

(9) Section 2609 of title 10, United States Code.

Subtitle E—Miscellaneous Reviews,

Studies, and Reports

SEC. 261. PRECISION-GUIDED MUNITIONS.

(a) ANALYSIS REQUIRED.—The Secretary of Defense shall per- form an analysis of the full range of precision-guided munitions

in production and in research, development, test, and evaluation

in order to determine the following: (1) The numbers and types of precision-guided munitions that are needed to provide complementary capabilities against

each target class. (2) The feasibility of carrying out joint development and procurement of additional types of munitions by more than

one of the Armed Forces.

(3) The feasibility of integrating a particular precision- guided munition on multiple service platforms. (4) The economy and effectiveness of continuing the acquisi- tion of—

(A) interim precision-guided munitions; or

(B) precision-guided munitions that, as a result of being procured in decreasing numbers to meet decreasing quantity requirements, have increased in cost per unit by more

than 50 percent over the cost per unit for such munitions

as of December 1, 1991.

(b) REPORT.—(1) Not later than April 15, 1996, the Secretary shall submit to Congress a report on the findings and other results

of the analysis. (2) The report shall include a detailed discussion of the process

by which the Department of Defense— (A) approves the development of new precision-guided

munitions;

(B) avoids duplication and redundancy in the precision- guided munitions programs of the Army, Navy, Air Force, and

Marine Corps;

(C) ensures rationality in the relationship between the

funding plans for precision-guided munitions modernization for

fiscal years following fiscal year 1996 and the costs of such

modernization for those fiscal years; and

(D) identifies by name and function each person responsible

for approving each new precision-guided munition for initial

low-rate production.

110 STAT. 236 PUBLIC LAW 104–106—FEB. 10, 1996

(c) FUNDING LIMITATION.—Funds authorized to be appropriated

by this Act may not be expended for research, development, test,

and evaluation or procurement of interim precision-guided munitions after April 15, 1996, unless the Secretary of Defense has

submitted the report under subsection (b).

(d) INTERIM PRECISION-GUIDED MUNITION DEFINED.—For purposes of subsection (c), a precision-guided munition is an interim

precision-guided munition if the munition is being procured in

fiscal year 1996, but funding is not proposed for additional procurement of the munition in the fiscal years after fiscal year 1996

that are covered by the future years defense program submitted

to Congress in 1995 under section 221(a) of title 10, United States

Code.

SEC. 262. 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 request 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 review

shall be conducted over the two-year period beginning on the date

on which the National Research Council and the Secretary of

Defense enter into a contract or other agreement for the conduct

of the review.

(d) REPORTS.—(1) In the contract or other agreement for the

conduct of the review, the Secretary of Defense shall provide that

the National Research Council shall submit to the Department

of Defense and Congress interim reports and progress updates

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

review shall set forth the findings, conclusions, and recommendations of the Council for defense-wide and service C4I programs

and shall be submitted to the Committee on Armed Services of

the Senate, the Committee on National Security of the House of

Representatives, and the Secretary of Defense.

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

be submitted in unclassified form with classified annexes as necessary.

10 USC 113 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 237

(e) INTERAGENCY COOPERATION WITH STUDY.—All military departments, defense agencies, and other components of the Department of Defense shall cooperate fully with the National Research

Council in its activities in carrying out the review under this

section.

(f) EXPEDITED PROCESSING OF SECURITY CLEARANCES FOR

STUDY.—For the purpose of facilitating the commencement of the study under this section, the Secretary of Defense shall expedite

to the fullest degree possible the processing of security clearances

that are necessary for the National Research Council to conduct

the study. (g) FUNDING.—Of the amount authorized to be appropriated

in section 201 for defense-wide activities, $900,000 shall be available

for the study under this section.

SEC. 263. ANALYSIS OF CONSOLIDATION OF BASIC RESEARCH

ACCOUNTS OF MILITARY DEPARTMENTS.

(a) ANALYSIS REQUIRED.—The Secretary of Defense shall con- duct 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. 264. 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 ‘‘the year after the year’’ and inserting

in lieu thereof ‘‘the fiscal year after the fiscal year’’.

SEC. 265. AERONAUTICAL RESEARCH AND TEST CAPABILITIES

ASSESSMENT.

(a) FINDINGS.—Congress finds the following:

(1) It is in the Nation’s long-term national security interests

for the United States 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) It is in the national security and economic interests

of the United States and the budgetary interests of the Department of Defense for the department to encourage the establishment of active partnerships between the department and other

Government agencies, academic institutions, and private industry to develop, maintain, and enhance aeronautical research

and test capabilities.

(b) REVIEW.—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.

110 STAT. 238 PUBLIC LAW 104–106—FEB. 10, 1996

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

of Defense shall submit to the congressional defense committees

a report setting forth in detail the findings of the review required

by subsection (b).

(2) The report shall include the following:

(A) The 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.

(B) 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) 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.

Subtitle F—Other Matters

SEC. 271. 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 United States-owned companies or United

States-incorporated companies operating in the United States

will lead to superior performance electronics systems for the

Department of Defense.’’;

(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 made by the Semiconductor Industry Association

as being advisory in nature.’’;

(3) in subsection (c)—

(A) by inserting ‘‘Defense’’ before ‘‘Advanced’’; and

(B) by striking out ‘‘ARPA’’ both places it appears

and inserting in lieu thereof ‘‘DARPA’’; and

(4) by adding at the end the following:

‘‘(d) DEFINITIONS.—In this section:

‘‘(1) The term ‘United States-owned company’ means a company the majority ownership or control of which is held by

citizens of the United States.

‘‘(2) The term ‘United States-incorporated company’ means

a company that the Secretary of Defense finds is incorporated

in the United States and has a parent company that is incorporated in a country— ‘‘(A) that affords to United States-owned companies

opportunities, comparable to those afforded to any other

company, to participate in any joint venture similar to

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 239

those authorized under section 28 of the National Institute

of Standards and Technology Act (15 U.S.C. 278n); ‘‘(B) that affords to United States-owned companies

local investment opportunities comparable to those afforded

to any other company; and ‘‘(C) that affords adequate and effective protection for

the intellectual property rights of United States-owned

companies.’’.

SEC. 272. ENHANCED FIBER OPTIC GUIDED MISSILE (EFOG–M) SYSTEM.

(a) LIMITATIONS.—(1) The Secretary of the Army may not obli- gate 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 enhanced fiber optic guided test missiles.

(B) 256 fully operational enhanced fiber optic guided mis- siles.

(C) 12 fully operational fire units. (2) The Secretary of the Army may not spend funds for the enhanced fiber optic guided missile (EFOG–M) system after September 30, 1998, if the items described in paragraph (1) have not

been delivered to the Army by that date and at a cost not greater

than the amount set forth in paragraph (1). (3) The Secretary of the Army may not enter into an advanced development phase for the EFOG–M system unless— (A) an advanced concept technology demonstration of the system has been successfully completed; and (B) the Secretary certifies to the congressional defense committees that there is a requirement for the EFOG–M system

that is supported by a cost and operational effectiveness analysis.

(b) GOVERNMENT-FURNISHED EQUIPMENT.—The Secretary of the Army shall ensure 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. 273. STATES ELIGIBLE FOR ASSISTANCE UNDER DEFENSE

EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE

RESEARCH.

Subparagraph (A) of section 257(d)(2) of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108

Stat. 2705; 10 U.S.C. 2358 note) is amended to read as follows:

‘‘(A) the average annual amount of all Department of Defense obligations for science and engineering research and

development that were in effect with institutions of higher

education in the State for the three fiscal years preceding

the fiscal year for which the designation is effective or for

the last three fiscal years for which statistics are available

is less than the amount determined by multiplying 60 percent

times the amount equal to 1⁄50 of the total average annual

amount of all Department of Defense obligations for science

and engineering research and development that were in effect

with institutions of higher education in the United States for

such three preceding or last fiscal years, as the case may

be (to be determined in consultation with the Secretary of

Defense);’’.

110 STAT. 240 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 274. CRUISE MISSILE DEFENSE INITIATIVE.

(a) IN GENERAL.—The Secretary of Defense shall undertake

an initiative to coordinate and strengthen the cruise missile defense

programs of the Department of Defense to ensure that the United

States develops and deploys affordable and operationally effective

defenses against existing and future cruise missile threats to United

States military forces and operations.

(b) COORDINATION WITH BALLISTIC MISSILE DEFENSE

EFFORTS.—In carrying out subsection (a), the Secretary shall ensure

that, to the extent practicable, the cruise missile defense programs

of the Department of Defense and the ballistic missile defense

programs of the Department of Defense are coordinated with each

other and that those programs are mutually supporting.

(c) DEFENSES AGAINST EXISTING AND NEAR-TERM CRUISE MISSILE THREATS.—As part of the initiative under subsection (a), the

Secretary shall ensure that appropriate existing and planned air

defense systems are upgraded to provide an affordable and operationally effective defense against existing and near-term cruise

missile threats to United States military forces and operations.

(d) DEFENSES AGAINST ADVANCED CRUISE MISSILES.—As part

of the initiative under subsection (a), the Secretary shall undertake

a well-coordinated development program to support the future

deployment of cruise missile defense systems that are affordable

and operationally effective against advanced cruise missiles, including cruise missiles with low observable features.

(e) IMPLEMENTATION PLAN.—Not later than the date on which

the President submits the budget for fiscal year 1997 under section

1105 of title 31, United States Code, the Secretary of Defense

shall submit to the congressional defense committees a detailed

plan, in unclassified and classified forms, as necessary, for carrying

out this section. The plan shall include an assessment of the following:

(1) The systems of the Department of Defense that currently have or could have cruise missile defense capabilities

and existing programs of the Department of Defense to improve

these capabilities.

(2) The technologies that could be deployed in the nearto mid-term to provide significant advances over existing cruise

missile defense capabilities and the investments that would

be required to ready those technologies for deployment.

(3) The cost and operational tradeoffs, if any, between

(A) upgrading existing air and missile defense systems, and

(B) accelerating follow-on systems with significantly improved

capabilities against advanced cruise missiles.

(4) The organizational and management changes that

would strengthen and further coordinate the cruise missile

defense programs of the Department of Defense, including the

disadvantages, if any, of implementing such changes.

(f) DEFINITION.—For the purposes of this section, the term

‘‘cruise missile defense programs’’ means the programs, projects,

and activities of the military departments, the Advanced Research

Projects Agency, and the Ballistic Missile Defense Organization

relating to development and deployment of defenses against cruise

missiles.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 241

SEC. 275. 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. 276. 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—

(A) by striking out ‘‘Science and’’; and

(B) by inserting after the first sentence the following:

‘‘The Secretary shall use the joint planning process of the

directors of the Department of Defense laboratories in

establishing the program.’’.

(3) Subsection (c) is amended—

(A) by inserting ‘‘(1)’’ after ‘‘(c) EXECUTION.—’’; and

(B) by adding at the end the following:

‘‘(2) The Secretary shall seek, to the extent practicable, the

participation of manufacturers of manufacturing equipment in the

projects under the program.’’.

(4) 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 paragraphs:

‘‘(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 cost to Government cost is two to one.

‘‘(4) If the requirement of paragraph (3) cannot be met by

July 15 of a fiscal year, the Under Secretary of Defense for Acquisition and Technology may waive the requirement and obligate the

balance of the funds available for the program for that fiscal year

on a cost-share basis under which the ratio of recipient cost to

Government cost is less than two to one. Before implementing

any such waiver, the Under Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on National

Security of the House of Representatives the reasons for the

waiver.’’.

10 USC 2358

note.

110 STAT. 242 PUBLIC LAW 104–106—FEB. 10, 1996

(b) CLERICAL AMENDMENT.—The item relating to section 2525

in the table of sections at the beginning of subchapter IV of chapter

148 of title 10, United States Code, is amended to read as follows:

‘‘2525. Manufacturing Technology Program.’’.

SEC. 277. FIVE-YEAR PLAN FOR CONSOLIDATION OF DEFENSE LABORATORIES AND TEST AND EVALUATION CENTERS.

(a) FIVE-YEAR PLAN.—The Secretary of Defense, acting through

the Vice Chief of Staff of the Army, the Vice Chief of Naval Operations, and the Vice Chief of Staff of the Air Force (in their roles

as test and evaluation executive agent board of directors) 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) PREVIOUSLY DEVELOPED DATA REQUIRED TO BE USED.—

In developing the plan, the Secretary shall use the following:

(1) Data and results obtained by the Test and Evaluation

Joint Cross-Service Group and the Laboratory Joint CrossService Group in developing recommendations for the 1995

report of the Defense Base Closure and Realignment Commission.

(2) The report dated March 1994 on the consolidation and

streamlining of the test and evaluation infrastructure, commissioned by the test and evaluation board of directors, along

with all supporting data and reports.

(d) MATTERS TO BE CONSIDERED.—In developing the plan, the

Secretary shall consider, at a minimum, the following:

(1) Consolidation of common support functions, including

the following:

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

(B) Weapons support.

(C) Space systems support.

(D) Support of command, control, communications,

computers, and intelligence.

(2) The extent to which any military construction, acquisition of equipment, or modernization of equipment is planned

at the laboratories and centers.

(3) The encroachment on the laboratories and centers by

residential and industrial expansion.

(4) The total cost to the Federal Government of continuing

to operate the laboratories and centers.

(5) The cost savings and program effectiveness of locating

laboratories and centers at the same sites.

(6) Any loss of expertise resulting from the consolidations.

(7) Whether any legislation is neccessary to provide the

Secretary with any additional authority necessary to accomplish

the downsizing and consolidation of the laboratories and centers.

(e) REPORT.—Not later than May 1, 1996, the Secretary of

Defense shall submit to the congressional defense committees a

report on the plan. The report shall include an identification of

any additional legislation that the Secretary considers necessary

in order for the Secretary to accomplish the downsizing and consolidation of the laboratories and centers.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 243

(f) LIMITATION.—Of the amounts appropriated or otherwise

made available pursuant to an authorization of appropriations in

section 201 for the central test and evaluation investment development program, not more than 75 percent may be obligated before

the report required by subsection (e) is submitted to Congress.

SEC. 278. 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. 279. GLOBAL POSITIONING SYSTEM.

(a) CONDITIONAL PROHIBITION ON USE OF SELECTIVE AVAILABIL- ITY FEATURE.—Except as provided in subsection (b), after

May 1, 1996, the Secretary of Defense may not (through use of

the feature known as ‘‘selective availability’’) deny access of nonDepartment of Defense users to the full capabilities of the Global

Positioning System. (b) PLAN.—Subsection (a) shall cease to apply upon submission

by the Secretary of Defense to the Committee on Armed Services

of the Senate and the Committee on National Security of the

House of Representatives of a plan for enhancement of the Global

Positioning System that provides for— (1) development and acquisition of effective capabilities

to deny hostile military forces the ability to use the Global

Positioning System without hindering the ability of United

States military forces and civil users to have access to and

use of the system, together with a specific date by which those

capabilities could be operational; and

(2) development and acquisition of receivers for the Global

Positioning System and other techniques for weapons and

weapon systems that provide substantially improved resistance

to jamming and other forms of electronic interference or disruption, together with a specific date by which those receivers

and other techniques could be operational with United States

military forces.

SEC. 280. REVISION OF AUTHORITY FOR PROVIDING ARMY SUPPORT

FOR THE NATIONAL SCIENCE CENTER FOR COMMUNICATIONS AND ELECTRONICS.

(a) PURPOSE.—Subsection (b)(2) of section 1459 of the Department of Defense Authorization Act, 1986 (Public Law 99–145; 99

Stat. 763) is amended by striking out ‘‘to make available’’ and

all that follows and inserting in lieu thereof ‘‘to provide for the

110 STAT. 244 PUBLIC LAW 104–106—FEB. 10, 1996

management, operation, and maintenance of those areas in the

national science center that are designated for use by the Army

and to provide incidental support for the operation of those areas

in the center that are designated for general use.’’.

(b) AUTHORITY FOR SUPPORT.—Subsection (c) of such section

is amended to read as follows:

‘‘(c) NATIONAL SCIENCE CENTER.—(1) The Secretary may manage, operate, and maintain facilities at the center under terms

and conditions prescribed by the Secretary for the purpose of

conducting educational outreach programs in accordance with chapter 111 of title 10, United States Code.

‘‘(2) The Foundation, or NSC Discovery Center, Incorporated,

a nonprofit corporation of the State of Georgia, shall submit to

the Secretary for review and approval all matters pertaining to

the acquisition, design, renovation, equipping, and furnishing of

the center, including all plans, specifications, contracts, sites, and

materials for the center.’’.

(c) AUTHORITY FOR ACCEPTANCE OF GIFTS AND FUNDRAISING.—

Subsection (d) of such section is amended to read as follows:

‘‘(d) GIFTS AND FUNDRAISING.—(1) Subject to paragraph (3),

the Secretary may accept a conditional or unconditional donation

of money or property that is made for the benefit of, or in connection

with, the center.

‘‘(2) Notwithstanding any other provision of law, the Secretary

may endorse, promote, and assist the efforts of the Foundation

and NSC Discovery Center, Incorporated, to obtain—

‘‘(A) funds for the management, operation, and maintenance

of the center; and

‘‘(B) donations of exhibits, equipment, and other property

for use in the center.

‘‘(3) The Secretary may not accept a donation under this subsection that is made subject to—

‘‘(A) any condition that is inconsistent with an applicable

law or regulation; or

‘‘(B) except to the extent provided in appropriations Acts,

any condition that would necessitate an expenditure of appropriated funds.

‘‘(4) The Secretary shall prescribe in regulations the criteria

to be used in determining whether to accept a donation. The Secretary shall include criteria to ensure that acceptance of a donation

does not establish an unfavorable appearance regarding the fairness

and objectivity with which the Secretary or any other officer or

employee of the Department of Defense performs official responsibilities and does not compromise or appear to compromise the integrity

of a Government program or any official involved in that program.’’.

(d) AUTHORIZED USES.—Such section is amended—

(1) by striking out subsection (f);

(2) by redesignating subsection (g) as subsection (f); and

(3) in paragraph (1) of subsection (f), as redesignated by

paragraph (2), by inserting ‘‘areas designated for use by the

Army in’’ after ‘‘The Secretary may make’’.

(e) ALTERNATIVE OF ADDITIONAL DEVELOPMENT AND MANAGEMENT.—Such section, as amended by subsection (d), is further

amended by adding at the end the following:

‘‘(g) ALTERNATIVE OR ADDITIONAL DEVELOPMENT AND MANAGEMENT OF THE CENTER.—(1) The Secretary may enter into an agreement with NSC Discovery Center, Incorporated, to develop, manage,

Regulations.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 245

and maintain a national science center under this section. In entering into an agreement with NSC Discovery Center, Incorporated,

the Secretary may agree to any term or condition to which the

Secretary is authorized under this section to agree for purposes

of entering into an agreement with the Foundation.

‘‘(2) The Secretary may exercise the authority under paragraph

(1) in addition to, or instead of, exercising the authority provided

under this section to enter into an agreement with the Foundation.’’.

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, $18,746,695,000.

(2) For the Navy, $21,493,155,000.

(3) For the Marine Corps, $2,521,822,000.

(4) For the Air Force, $18,719,277,000.

(5) For Defense-wide activities, $9,910,476,000.

(6) For the Army Reserve, $1,129,191,000.

(7) For the Naval Reserve, $868,342,000.

(8) For the Marine Corps Reserve, $100,283,000.

(9) For the Air Force Reserve, $1,516,287,000.

(10) For the Army National Guard, $2,361,808,000.

(11) For the Air National Guard, $2,760,121,000.

(12) For the Defense Inspector General, $138,226,000.

(13) For the United States Court of Appeals for the Armed

Forces, $6,521,000.

(14) For Environmental Restoration, Defense,

$1,422,200,000.

(15) For Drug Interdiction and Counter-drug Activities,

Defense-wide, $680,432,000.

(16) For Medical Programs, Defense, $9,876,525,000.

(17) For support for the 1996 Summer Olympics,

$15,000,000.

(18) For Cooperative Threat Reduction programs,

$300,000,000.

(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, $1,024,220,000.

110 STAT. 246 PUBLIC LAW 104–106—FEB. 10, 1996

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. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.

(a) TRANSFER AUTHORITY.—To the extent provided in appropriations Acts, not more than $150,000,000 is authorized to be transferred from the National Defense Stockpile Transaction Fund to

operation and maintenance accounts for fiscal year 1996 in amounts

as follows:

(1) For the Army, $50,000,000.

(2) For the Navy, $50,000,000.

(3) For the Air Force, $50,000,000.

(b) TREATMENT OF TRANSFERS.—Amounts transferred under

this section—

(1) shall be merged with, and be available for the same

purposes and the same period as, the amounts in the accounts

to which transferred; and

(2) may not be expended for an item that has been denied

authorization of appropriations by Congress.

(c) RELATIONSHIP TO OTHER TRANSFER AUTHORITY.—The transfer authority provided in this section is in addition to the transfer

authority provided in section 1001.

SEC. 305. CIVIL AIR PATROL.

Of the amounts authorized to be appropriated pursuant to

this Act, there shall be made available to the Civil Air Patrol

$24,500,000, of which $14,704,000 shall be made available for the

Civil Air Patrol Corporation.

Subtitle B—Depot-Level Activities

SEC. 311. POLICY REGARDING PERFORMANCE OF DEPOT-LEVEL

MAINTENANCE AND REPAIR FOR THE DEPARTMENT OF

DEFENSE.

(a) FINDINGS.—Congress makes the following findings:

(1) The Department of Defense does not have a comprehensive policy regarding the performance of depot-level maintenance and repair of military equipment.

(2) The absence of such a policy has caused the Congress

to establish guidelines for the performance of such functions.

(3) It is essential to the national security of the United

States that the Department of Defense maintain an organic

capability within the department, including skilled personnel,

technical competencies, equipment, and facilities, to perform

depot-level maintenance and repair of military equipment in

order to ensure that the Armed Forces of the United States

are able to meet training, operational, mobilization, and emergency requirements without impediment.

(4) The organic capability of the Department of Defense

to perform depot-level maintenance and repair of military

equipment must satisfy known and anticipated core mainte10 USC 2464

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 247

nance and repair requirements across the full range of peacetime and wartime scenarios.

(5) Although it is possible that savings can be achieved

by contracting with private-sector sources for the performance

of some work currently performed by Department of Defense

depots, the Department of Defense has not determined the

type or amount of work that should be performed under contract

with private-sector sources nor the relative costs and benefits

of contracting for the performance of such work by those

sources.

(b) SENSE OF CONGRESS.—It is the sense of Congress that

there is a compelling need for the Department of Defense to articulate known and anticipated core maintenance and repair requirements, to organize the resources of the Department of Defense

to meet those requirements economically and efficiently, and to

determine what work should be performed by the private sector

and how such work should be managed.

(c) REQUIREMENT FOR POLICY.—Not later than March 31, 1996,

the Secretary of Defense shall develop and report to the Committee

on Armed Services of the Senate and the Committee on National

Security of the House of Representatives a comprehensive policy

on the performance of depot-level maintenance and repair for the

Department of Defense that maintains the capability described

in section 2464 of title 10, United States Code.

(d) CONTENT OF POLICY.—In developing the policy, the Secretary of Defense shall do each of the following:

(1) Identify for each military department, with the concurrence of the Secretary of that military department, those depotlevel maintenance and repair activities that are necessary to

ensure the depot-level maintenance and repair capability as

required by section 2464 of title 10, United States Code.

(2) Provide for performance of core depot-level maintenance

and repair capabilities in facilities owned and operated by

the United States.

(3) Provide for the core capabilities to include sufficient

skilled personnel, equipment, and facilities that—

(A) is of the proper size (i) to ensure a ready and

controlled source of technical competence and repair and

maintenance capability necessary to meet the requirements

of the National Military Strategy and other requirements

for responding to mobilizations and military contingencies,

and (ii) to provide for rapid augmentation in time of emergency; and

(B) is assigned sufficient workload to ensure cost efficiency and technical proficiency in time of peace.

(4) Address environmental liability.

(5) In the case of depot-level maintenance and repair workloads in excess of the workload required to be performed by

Department of Defense depots, provide for competition for those

workloads between public and private entities when there is

sufficient potential for realizing cost savings based on adequate

private-sector competition and technical capabilities.

(6) Address issues concerning exchange of technical data

between the Federal Government and the private sector.

(7) Provide for, in the Secretary’s discretion and after consultation with the Secretaries of the military departments,

the transfer from one military department to another, in accordReports.

110 STAT. 248 PUBLIC LAW 104–106—FEB. 10, 1996

ance with merit-based selection processes, workload that supports the core depot-level maintenance and repair capabilities

in facilities owned and operated by the United States.

(8) Require that, in any competition for a workload

(whether among private-sector sources or between depot-level

activities of the Department of Defense and private-sector

sources), bids are evaluated under a methodology that ensures

that appropriate costs to the Government and the private sector

are identified.

(9) Provide for the performance of maintenance and repair

for any new weapons systems defined as core, under section

2464 of title 10, United States Code, in facilities owned and

operated by the United States.

(e) CONSIDERATIONS.—In developing the policy, the Secretary

shall take into consideration the following matters:

(1) The national security interests of the United States.

(2) The capabilities of the public depots and the capabilities

of businesses in the private sector to perform the maintenance

and repair work required by the Department of Defense.

(3) Any applicable recommendations of the Defense Base

Closure and Realignment Commission that are required to

be implemented under the Defense Base Closure and Realignment Act of 1990.

(4) The extent to which the readiness of the Armed Forces

would be affected by a necessity to construct new facilities

to accommodate any redistribution of depot-level maintenance

and repair workloads that is made in accordance with the

recommendation of the Defense Base Closure and Realignment

Commission, under the Defense Base Closure and Realignment

Act of 1990, that such workloads be consolidated at Department

of Defense depots or private-sector facilities.

(5) Analyses of costs and benefits of alternatives, including

a comparative analysis of—

(A) the costs and benefits, including any readiness

implications, of any proposed policy to convert to contractor

performance of depot-level maintenance and repair workloads where the workload is being performed by Department of Defense personnel; and

(B) the costs and benefits, including any readiness

implications, of a policy to transfer depot-level maintenance

and repair workloads among depots.

(f) REPEAL OF 60/40 REQUIREMENT AND REQUIREMENT RELATING

TO COMPETITION.—(1) Sections 2466 and 2469 of title 10, United

States Code, are repealed.

(2) The table of sections at the beginning of chapter 146 of

such title is amended by striking out the items relating to sections

2466 and 2469.

(3) The amendments made by paragraphs (1) and (2) shall

take effect on the date (after the date of the enactment of this

Act) on which legislation is enacted that contains a provision that

specifically states one of the following:

(A) ‘‘The policy on the performance of depot-level maintenance and repair for the Department of Defense that was

submitted by the Secretary of Defense to the Committee on

Armed Services of the Senate and the Committee on National

Security of the House of Representatives pursuant to section

Effective date.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 249

311 of the National Defense Authorization Act for Fiscal Year

1996 is approved.’’; or

(B) ‘‘The policy on the performance of depot-level maintenance and repair for the Department of Defense that was

submitted by the Secretary of Defense to the Committee on

Armed Services of the Senate and the Committee on National

Security of the House of Representatives pursuant to section

311 of the National Defense Authorization Act for Fiscal Year

1996 is approved with the following modifications:’’ (with the

modifications being stated in matter appearing after the colon).

(g) ANNUAL REPORT.—If legislation referred to in subsection

(f)(3) is enacted, the Secretary of Defense shall, not later than

March 1 of each year (beginning with the year after the year

in which such legislation is enacted), submit to Congress a report

that—

(1) specifies depot maintenance core capability requirements determined in accordance with the procedures established to comply with the policy prescribed pursuant to

subsections (d)(2) and (d)(3);

(2) specifies the planned amount of workload to be accomplished by the depot-level activities of each military department

in support of those requirements for the following fiscal year;

and

(3) identifies the planned amount of workload, which—

(A) shall be measured by direct labor hours and by

amounts to be expended; and

(B) shall be shown separately for each commodity

group.

(h) REVIEW BY GENERAL ACCOUNTING OFFICE.—(1) The Secretary shall make available to the Comptroller General of the

United States all information used by the Department of Defense

in developing the policy under subsections (c) through (e) of this

section.

(2) Not later than 45 days after the date on which the Secretary

submits to Congress the report required by subsection (c), the

Comptroller General shall transmit to Congress a report containing

a detailed analysis of the Secretary’s proposed policy as reported

under such subsection.

(i) REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR WORKLOAD.—Not later than March 31, 1996, the Secretary of Defense

shall submit to Congress a report on the depot-level maintenance

and repair workload of the Department of Defense. The report

shall, to the maximum extent practicable, include the following:

(1) An analysis of the need for and effect 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, including a description of

the effect on military readiness and the national security resulting from that requirement and a description of any specific

difficulties experienced by the Department of Defense as a

result of that requirement.

(2) An analysis of 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 depot-level activities of the Department of Defense

and non-Government personnel, measured by direct labor hours

Reports.

110 STAT. 250 PUBLIC LAW 104–106—FEB. 10, 1996

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.

(3) A projection of the distribution during the five fiscal

years beginning with fiscal year 1997 of the depot-level maintenance and repair workload of the Department of Defense

between depot-level activities of the Department of Defense

and non-Government personnel, measured by direct labor hours

and by amounts expended, and displayed, for that five-year

period and for each year of that period, so as to show (for

each military department (and separately for the Navy and

Marine Corps)) such distribution that would be accomplished

under a new policy as required under subsection (c).

(j) OTHER REVIEW BY GENERAL ACCOUNTING OFFICE.—(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 (i). 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 45 days after the date on which the Secretary

of Defense submits to Congress the report required under subsection

(i), the Comptroller General shall transmit to Congress a report

containing a detailed analysis of the report submitted under that

subsection.

SEC. 312. 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

‘‘(b) ANNUAL REPORT.—Not later than December 1 of each fiscal

year, the Secretary of Defense shall submit to the Committee on

Armed Services of the Senate and the Committee on National

Security of the House of Representatives a report on the number

of employees employed and expected to be employed by the Department of Defense during that fiscal year to perform depot-level

maintenance and repair of materiel. The report shall indicate

whether that number is sufficient to perform the depot-level maintenance and repair functions for which funds are expected to be

provided for that fiscal year for performance by Department of

Defense employees.’’.

(b) TRANSFER OF SUBSECTION.—Subsection (b) of section 2466

of title 10, United States Code, is transferred to section 2472

of such title, as added by subsection (a), redesignated as subsection

(a), and inserted after the section heading.

(c) SUBMISSION OF INITIAL REPORT.—The report under subsection (b) of section 2472 of title 10, United States Code, as

added by subsection (a), for fiscal year 1996 shall be submitted

not later than March 15, 1996 (notwithstanding the date specified

in such subsection).

10 USC 2472

note.

Reports.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 251

(d) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following

new item:

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

SEC. 313. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND

NAVAL SHIPYARDS TO ENGAGE IN DEFENSE-RELATED

PRODUCTION AND SERVICES.

Section 1425(e) of the National Defense Authorization Act for

Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1684) is amended

by striking out ‘‘September 30, 1995’’ and inserting in lieu thereof

‘‘September 30, 1996’’.

SEC. 314. 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.’’.

Subtitle C—Environmental Provisions

SEC. 321. REVISION OF REQUIREMENTS FOR AGREEMENTS FOR SERVICES UNDER ENVIRONMENTAL RESTORATION PROGRAM.

(a) REQUIREMENTS.—(1) Section 2701(d) of title 10, United

States Code, is amended to read as follows:

‘‘(d) SERVICES OF OTHER AGENCIES.—

‘‘(1) IN GENERAL.—Subject to paragraph (2), the Secretary

may enter into agreements on a reimbursable or other basis

with any other Federal agency, or with any State or local

government agency, to obtain the services of the agency to

assist the Secretary in carrying out any of the Secretary’s

responsibilities under this section. Services which may be

obtained under this subsection include the identification, investigation, and cleanup of any off-site contamination resulting

from the release of a hazardous substance or waste at a facility

under the Secretary’s jurisdiction.

‘‘(2) LIMITATION ON REIMBURSABLE AGREEMENTS.—An

agreement with an agency under paragraph (1) may not provide

for reimbursement of the agency for regulatory enforcement

activities.’’.

(2)(A) Except as provided in subparagraph (B), the total amount

of funds available for reimbursements under agreements entered

into under section 2710(d) of title 10, United States Code, as amended by paragraph (1), in fiscal year 1996 may not exceed $10,000,000.

(B) The Secretary of Defense may pay in fiscal year 1996

an amount for reimbursements under agreements referred to in

subparagraph (A) in excess of the amount specified in that subparagraph for that fiscal year if—

(i) the Secretary certifies to Congress that the payment

of the amount under this subparagraph is essential for the

Certification.

10 USC 2701

note.

110 STAT. 252 PUBLIC LAW 104–106—FEB. 10, 1996

management of the Defense Environmental Restoration Program under chapter 160 of title 10, United States Code; and (ii) a period of 60 days has expired after the date on

which the certification is received by Congress.

(b) REPORT ON SERVICES OBTAINED.—The Secretary of Defense

shall include in the report submitted to Congress with respect

to fiscal year 1998 under section 2706(a) of title 10, United States

Code, information on the services, if any, obtained by the Secretary

during fiscal year 1996 pursuant to each agreement on a reimbursable basis entered into with a State or local government agency

under section 2701(d) of title 10, United States Code, as amended

by subsection (a). The information shall include a description of

the services obtained under each agreement and the amount of

the reimbursement provided for the services.

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 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. USE OF DEFENSE ENVIRONMENTAL RESTORATION ACCOUNT.

(a) GOAL FOR CERTAIN DERA EXPENDITURES.—It shall be the

goal of the Secretary of Defense 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.

(b) REPORT.—Not later than April 1, 1996, the Secretary shall

submit to Congress a report that contains specific, detailed information on—

(1) the extent to which the Secretary has attained the

goal described in subsection (a) as of the date of the submission

of the report; and

(2) if the Secretary has not attained such goal by such

date, the actions the Secretary plans to take to attain the

goal.

SEC. 324. REVISION OF AUTHORITIES RELATING TO RESTORATION

ADVISORY BOARDS.

(a) REGULATIONS.—Paragraph (2) of subsection (d) of section

2705 of title 10, United States Code, is amended to read as follows:

‘‘(2)(A) The Secretary shall prescribe regulations regarding the

establishment, characteristics, composition, and funding of restoration advisory boards pursuant to this subsection.

‘‘(B) The issuance of regulations under subparagraph (A) shall

not be a precondition to the establishment of restoration advisory

boards under this subsection.’’.

(b) FUNDING FOR ADMINISTRATIVE EXPENSES.—Paragraph (3)

of such subsection is amended to read as follows:

10 USC 2706

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 253

‘‘(3) The Secretary may authorize the commander of an installation (or, if there is no such commander, an appropriate official

of the Department of Defense designated by the Secretary) to pay

routine administrative expenses of a restoration advisory board

established for that installation. Such payments shall be made

from funds available under subsection (g).’’.

(c) TECHNICAL ASSISTANCE.—Such section is further amended

by striking out subsection (e) and inserting in lieu thereof the

following new subsection (e):

‘‘(e) TECHNICAL ASSISTANCE.—(1) The Secretary may, upon the

request of the technical review committee or restoration advisory

board for an installation, authorize the commander of the installation (or, if there is no such commander, an appropriate official

of the Department of Defense designated by the Secretary) to obtain

for the committee or advisory board, as the case may be, from

private sector sources technical assistance for interpreting scientific

and engineering issues with regard to the nature of environmental

hazards at the installation and the restoration activities conducted,

or proposed to be conducted, at the installation. The commander

of an installation (or, if there is no such commander, an appropriate

official of the Department of Defense designated by the Secretary)

shall use funds made available under subsection (g) for obtaining

assistance under this paragraph.

‘‘(2) The commander of an installation (or, if there is no such

commander, an appropriate official of the Department of Defense

designated by the Secretary) may obtain technical assistance under

paragraph (1) for a technical review committee or restoration

advisory board only if—

‘‘(A) the technical review committee or restoration advisory

board demonstrates that the Federal, State, and local agencies

responsible for overseeing environmental restoration at the

installation, and available Department of Defense personnel,

do not have the technical expertise necessary for achieving

the objective for which the technical assistance is to be obtained;

or

‘‘(B) the technical assistance—

‘‘(i) is likely to contribute to the efficiency, effectiveness,

or timeliness of environmental restoration activities at the

installation; and

‘‘(ii) is likely to contribute to community acceptance

of environmental restoration activities at the installation.’’.

(d) FUNDING.—(1) Such section is further amended by adding

at the end the following new subsection:

‘‘(g) FUNDING.—The Secretary shall, to the extent provided in

appropriations Acts, make funds available for administrative

expenses and technical assistance under this section using funds

in the following accounts:

‘‘(1) In the case of a military installation not approved

for closure pursuant to a base closure law, the Defense Environmental Restoration Account established under section 2703(a)

of this title.

‘‘(2) In the case of an installation approved for closure

pursuant to such a law, the Department of Defense Base Closure Account 1990 established under 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).’’.

110 STAT. 254 PUBLIC LAW 104–106—FEB. 10, 1996

(2)(A) Subject to subparagraph (B), the total amount of funds made available under section 2705(g) of title 10, United States

Code, as added by paragraph (1), for fiscal year 1996 may not

exceed $6,000,000.

(B) Amounts may not be made available under subsection (g)

of such section 2705 after September 15, 1996, unless the Secretary

of Defense publishes proposed final or interim final regulations

required under subsection (d) of such section, as amended by subsection (a).

(e) DEFINITION.—Such section is further amended by adding

after subsection (g) (as added by subsection (d)) the following new

subsection:

‘‘(h) DEFINITION.—In this section, the term ‘base closure law’

means the following:

‘‘(1) Title II of the Defense Authorization Amendments

and Base Closure and Realignment Act (Public Law 100–526;

10 U.S.C. 2687 note).

‘‘(2) 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) Section 2687 of this title.’’.

(f) REPORTS ON ACTIVITIES OF TECHNICAL REVIEW COMMITTEES

AND RESTORATION ADVISORY BOARDS.—Section 2706(a)(2) of title

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

following:

‘‘(J) A statement of the activities, if any, including expenditures for administrative expenses and technical assistance

under section 2705 of this title, of the technical review committee or restoration advisory board established for the installation

under such section during the preceding fiscal year.’’.

SEC. 325. DISCHARGES FROM VESSELS OF THE ARMED FORCES.

(a) PURPOSES.—The purposes of this section are to—

(1) enhance the operational flexibility of vessels of the

Armed Forces domestically and internationally;

(2) stimulate the development of innovative vessel pollution

control technology; and

(3) advance the development by the United States Navy

of environmentally sound ships.

(b) UNIFORM NATIONAL DISCHARGE STANDARDS DEVELOPMENT.—Section 312 of the Federal Water Pollution Control Act

(33 U.S.C. 1322) is amended by adding at the end the following:

‘‘(n) UNIFORM NATIONAL DISCHARGE STANDARDS FOR VESSELS

OF THE ARMED FORCES.—

‘‘(1) APPLICABILITY.—This subsection shall apply to vessels

of the Armed Forces and discharges, other than sewage, incidental to the normal operation of a vessel of the Armed Forces,

unless the Secretary of Defense finds that compliance with

this subsection would not be in the national security interests

of the United States.

‘‘(2) DETERMINATION OF DISCHARGES REQUIRED TO BE CONTROLLED BY MARINE POLLUTION CONTROL DEVICES.—

‘‘(A) IN GENERAL.—The Administrator and the Secretary of Defense, after consultation with the Secretary

of the department in which the Coast Guard is operating,

the Secretary of Commerce, and interested States, shall

jointly determine the discharges incidental to the normal

33 USC 1322

note.

10 USC 2705

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 255

operation of a vessel of the Armed Forces for which it

is reasonable and practicable to require use of a marine

pollution control device to mitigate adverse impacts on

the marine environment. Notwithstanding subsection (a)(1)

of section 553 of title 5, United States Code, the Administrator and the Secretary of Defense shall promulgate the

determinations in accordance with such section. The Secretary of Defense shall require the use of a marine pollution

control device on board a vessel of the Armed Forces in

any case in which it is determined that the use of such

a device is reasonable and practicable.

‘‘(B) CONSIDERATIONS.—In making a determination

under subparagraph (A), the Administrator and the Secretary of Defense shall take into consideration—

‘‘(i) the nature of the discharge;

‘‘(ii) the environmental effects of the discharge;

‘‘(iii) the practicability of using the marine pollution control device;

‘‘(iv) the effect that installation or use of the

marine pollution control device would have on the operation or operational capability of the vessel;

‘‘(v) applicable United States law;

‘‘(vi) applicable international standards; and

‘‘(vii) the economic costs of the installation and

use of the marine pollution control device.

‘‘(3) PERFORMANCE STANDARDS FOR MARINE POLLUTION CONTROL DEVICES.—

‘‘(A) IN GENERAL.—For each discharge for which a

marine pollution control device is determined to be required

under paragraph (2), the Administrator and the Secretary

of Defense, in consultation with the Secretary of the department in which the Coast Guard is operating, the Secretary

of State, the Secretary of Commerce, other interested Federal agencies, and interested States, shall jointly promulgate Federal standards of performance for each marine

pollution control device required with respect to the discharge. Notwithstanding subsection (a)(1) of section 553

of title 5, United States Code, the Administrator and the

Secretary of Defense shall promulgate the standards in

accordance with such section.

‘‘(B) CONSIDERATIONS.—In promulgating standards

under this paragraph, the Administrator and the Secretary

of Defense shall take into consideration the matters set

forth in paragraph (2)(B).

‘‘(C) CLASSES, TYPES, AND SIZES OF VESSELS.—The

standards promulgated under this paragraph may—

‘‘(i) distinguish among classes, types, and sizes

of vessels;

‘‘(ii) distinguish between new and existing vessels;

and

‘‘(iii) provide for a waiver of the applicability of

the standards as necessary or appropriate to a particular class, type, age, or size of vessel.

‘‘(4) REGULATIONS FOR USE OF MARINE POLLUTION CONTROL

DEVICES.—The Secretary of Defense, after consultation with

the Administrator and the Secretary of the department in which

the Coast Guard is operating, shall promulgate such regulations

110 STAT. 256 PUBLIC LAW 104–106—FEB. 10, 1996

governing the design, construction, installation, and use of

marine pollution control devices on board vessels of the Armed

Forces as are necessary to achieve the standards promulgated

under paragraph (3).

‘‘(5) DEADLINES; EFFECTIVE DATE.—

‘‘(A) DETERMINATIONS.—The Administrator and the

Secretary of Defense shall—

‘‘(i) make the initial determinations under paragraph (2) not later than 2 years after the date of

the enactment of this subsection; and

‘‘(ii) every 5 years—

‘‘(I) review the determinations; and

‘‘(II) if necessary, revise the determinations

based on significant new information.

‘‘(B) STANDARDS.—The Administrator and the Secretary of Defense shall—

‘‘(i) promulgate standards of performance for a

marine pollution control device under paragraph (3)

not later than 2 years after the date of a determination

under paragraph (2) that the marine pollution control

device is required; and

‘‘(ii) every 5 years—

‘‘(I) review the standards; and

‘‘(II) if necessary, revise the standards, consistent with paragraph (3)(B) and based on significant

new information.

‘‘(C) REGULATIONS.—The Secretary of Defense shall

promulgate regulations with respect to a marine pollution

control device under paragraph (4) as soon as practicable

after the Administrator and the Secretary of Defense

promulgate standards with respect to the device under

paragraph (3), but not later than 1 year after the Administrator and the Secretary of Defense promulgate the standards. The regulations promulgated by the Secretary of

Defense under paragraph (4) shall become effective upon

promulgation unless another effective date is specified in

the regulations.

‘‘(D) PETITION FOR REVIEW.—The Governor of any State

may submit a petition requesting that the Secretary of

Defense and the Administrator review a determination

under paragraph (2) or a standard under paragraph (3),

if there is significant new information, not considered previously, that could reasonably result in a change to the

particular determination or standard after consideration

of the matters set forth in paragraph (2)(B). The petition

shall be accompanied by the scientific and technical

information on which the petition is based. The Administrator and the Secretary of Defense shall grant or deny

the petition not later than 2 years after the date of receipt

of the petition.

‘‘(6) EFFECT ON OTHER LAWS.—

‘‘(A) PROHIBITION ON REGULATION BY STATES OR POLITICAL SUBDIVISIONS OF STATES.—Beginning on the effective

date of—

‘‘(i) a determination under paragraph (2) that it

is not reasonable and practicable to require use of

a marine pollution control device regarding a particular

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 257

discharge incidental to the normal operation of a vessel

of the Armed Forces; or

‘‘(ii) regulations promulgated by the Secretary of Defense under paragraph (4);

except as provided in paragraph (7), neither a State nor

a political subdivision of a State may adopt or enforce

any statute or regulation of the State or political subdivision with respect to the discharge or the design, construction, installation, or use of any marine pollution control

device required to control discharges from a vessel of the

Armed Forces.

‘‘(B) FEDERAL LAWS.—This subsection shall not affect

the application of section 311 to discharges incidental to

the normal operation of a vessel.

‘‘(7) ESTABLISHMENT OF STATE NO-DISCHARGE ZONES.—

‘‘(A) STATE PROHIBITION.—

‘‘(i) IN GENERAL.—After the effective date of—

‘‘(I) a determination under paragraph (2) that

it is not reasonable and practicable to require use

of a marine pollution control device regarding a

particular discharge incidental to the normal operation of a vessel of the Armed Forces; or

‘‘(II) regulations promulgated by the Secretary

of Defense under paragraph (4);

if a State determines that the protection and enhancement of the quality of some or all of the waters within

the State require greater environmental protection, the

State may prohibit 1 or more discharges incidental

to the normal operation of a vessel, whether treated

or not treated, into the waters. No prohibition shall

apply until the Administrator makes the determinations described in subclauses (II) and (III) of subparagraph (B)(i).

‘‘(ii) DOCUMENTATION.—To the extent that a

prohibition under this paragraph would apply to vessels of the Armed Forces and not to other types of

vessels, the State shall document the technical or

environmental basis for the distinction.

‘‘(B) PROHIBITION BY THE ADMINISTRATOR.—

‘‘(i) IN GENERAL.—Upon application of a State, the

Administrator shall by regulation prohibit the discharge from a vessel of 1 or more discharges incidental

to the normal operation of a vessel, whether treated

or not treated, into the waters covered by the application if the Administrator determines that—

‘‘(I) the protection and enhancement of the

quality of the specified waters within the State

require a prohibition of the discharge into the

waters;

‘‘(II) adequate facilities for the safe and sanitary removal of the discharge incidental to the

normal operation of a vessel are reasonably available for the waters to which the prohibition would

apply; and

‘‘(III) the prohibition will not have the effect

of discriminating against a vessel of the Armed

Forces by reason of the ownership or operation

Regulations.

110 STAT. 258 PUBLIC LAW 104–106—FEB. 10, 1996

by the Federal Government, or the military function, of the vessel.

‘‘(ii) APPROVAL OR DISAPPROVAL.—The Administrator shall approve or disapprove an application

submitted under clause (i) not later than 90 days after

the date on which the application is submitted to the

Administrator. Notwithstanding clause (i)(II), the

Administrator shall not disapprove an application for

the sole reason that there are not adequate facilities

to remove any discharge incidental to the normal operation of a vessel from vessels of the Armed Forces.

‘‘(C) APPLICABILITY TO FOREIGN FLAGGED VESSELS.—

A prohibition under this paragraph—

‘‘(i) shall not impose any design, construction, manning, or equipment standard on a foreign flagged vessel

engaged in innocent passage unless the prohibition

implements a generally accepted international rule or

standard; and

‘‘(ii) that relates to the prevention, reduction, and

control of pollution shall not apply to a foreign flagged

vessel engaged in transit passage unless the prohibition implements an applicable international regulation

regarding the discharge of oil, oily waste, or any other

noxious substance into the waters.

‘‘(8) PROHIBITION RELATING TO VESSELS OF THE ARMED

FORCES.—After the effective date of the regulations promulgated by the Secretary of Defense under paragraph (4), it

shall be unlawful for any vessel of the Armed Forces subject

to the regulations to—

‘‘(A) operate in the navigable waters of the United

States or the waters of the contiguous zone, if the vessel

is not equipped with any required marine pollution control

device meeting standards established under this subsection;

or

‘‘(B) discharge overboard any discharge incidental to

the normal operation of a vessel in waters with respect

to which a prohibition on the discharge has been established under paragraph (7).

‘‘(9) ENFORCEMENT.—This subsection shall be enforceable,

as provided in subsections (j) and (k), against any agency of

the United States responsible for vessels of the Armed Forces

notwithstanding any immunity asserted by the agency.’’.

(c) CONFORMING AMENDMENTS.—

(1) DEFINITIONS.—Section 312(a) of the Federal Water

Pollution Control Act (33 U.S.C. 1322(a)) is amended—

(A) in paragraph (8)—

(i) by striking ‘‘or’’; and

(ii) by inserting ‘‘or agency of the United States,’’

after ‘‘association,’’;

(B) in paragraph (11), by striking the period at the

end and inserting a semicolon; and

(C) by adding at the end the following:

‘‘(12) ‘discharge incidental to the normal operation of a

vessel’—

‘‘(A) means a discharge, including—

‘‘(i) graywater, bilge water, cooling water, weather

deck runoff, ballast water, oil water separator effluent,

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 259

and any other pollutant discharge from the operation

of a marine propulsion system, shipboard maneuvering

system, crew habitability system, or installed major

equipment, such as an aircraft carrier elevator or a

catapult, or from a protective, preservative, or absorptive application to the hull of the vessel; and

‘‘(ii) a discharge in connection with the testing,

maintenance, and repair of a system described in

clause (i) whenever the vessel is waterborne; and

‘‘(B) does not include—

‘‘(i) a discharge of rubbish, trash, garbage, or other

such material discharged overboard;

‘‘(ii) an air emission resulting from the operation

of a vessel propulsion system, motor driven equipment,

or incinerator; or

‘‘(iii) a discharge that is not covered by part 122.3

of title 40, Code of Federal Regulations (as in effect

on the date of the enactment of subsection (n));

‘‘(13) ‘marine pollution control device’ means any equipment

or management practice, for installation or use on board a

vessel of the Armed Forces, that is—

‘‘(A) designed to receive, retain, treat, control, or discharge a discharge incidental to the normal operation of

a vessel; and

‘‘(B) determined by the Administrator and the Secretary of Defense to be the most effective equipment or

management practice to reduce the environmental impacts

of the discharge consistent with the considerations set forth

in subsection (n)(2)(B); and

‘‘(14) ‘vessel of the Armed Forces’ means—

‘‘(A) any vessel owned or operated by the Department

of Defense, other than a time or voyage chartered vessel;

and

‘‘(B) any vessel owned or operated by the Department

of Transportation that is designated by the Secretary of

the department in which the Coast Guard is operating

as a vessel equivalent to a vessel described in subparagraph

(A).’’.

(2) ENFORCEMENT.—The first sentence of section 312(j) of

the Federal Water Pollution Control Act (33 U.S.C. 1322(j))

is amended—

(A) by striking ‘‘of this section or’’ and inserting a

comma; and

(B) by striking ‘‘of this section shall’’ and inserting

‘‘, or subsection (n)(8) shall’’.

(3) OTHER DEFINITIONS.—Subparagraph (A) of the second

sentence of section 502(6) of the Federal Water Pollution Control Act (33 U.S.C. 1362(6)) is amended by striking ‘‘ ‘sewage

from vessels’ ’’ and inserting ‘‘ ‘sewage from vessels or a discharge incidental to the normal operation of a vessel of the

Armed Forces’ ’’.

(d) COOPERATION IN STANDARDS DEVELOPMENT.—The Administrator of the Environmental Protection Agency and the Secretary

of Defense may, by mutual agreement, with or without reimbursement, provide for the use of information, reports, personnel, or

other resources of the Environmental Protection Agency or the

Department of Defense to carry out section 312(n) of the Federal

33 USC 1322

note.

110 STAT. 260 PUBLIC LAW 104–106—FEB. 10, 1996

Water Pollution Control Act (as added by subsection (b)), including

the use of the resources—

(1) to determine—

(A) the nature and environmental effect of discharges incidental to the normal operation of a vessel of the Armed

Forces;

(B) the practicability of using marine pollution control devices on vessels of the Armed Forces; and

(C) the effect that installation or use of marine pollution control devices on vessels of the Armed Forces would

have on the operation or operational capability of the vessels; and

(2) to establish performance standards for marine pollution

control devices on vessels of the Armed Forces.

Subtitle D—Commissaries and

Nonappropriated Fund Instrumentalities

SEC. 331. OPERATION OF COMMISSARY 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 INSTRUMENTAL- ITIES.—(1) The Defense Commissary Agency, and any other agency of the Department of Defense that supports the operation of the

commissary system, may enter into a contract or other agreement

with another department, agency, or instrumentality of the Department of Defense or another Federal agency to provide services

beneficial to the efficient management and operation of the commissary system.

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

instrumentality of the Department of Defense 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 or any other agency of the Department of Defense

that supports the operation of the commissary system to a

nonappropriated fund instrumentality for the operation of a commissary store.’’.

(b) 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. 332. 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

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 261

to merchandise provided by that manufacturer, distributor, or

vendor’’.

SEC. 333. 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 provides 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 costs associated with 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 of 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. 334. 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 authorize the officials responsible for operation of commissaries and military exchanges 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.’’.

110 STAT. 262 PUBLIC LAW 104–106—FEB. 10, 1996

(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. 335. DEMONSTRATION PROJECT FOR UNIFORM FUNDING OF

MORALE, WELFARE, AND RECREATION ACTIVITIES AT CERTAIN MILITARY INSTALLATIONS.

(a) DEMONSTRATION PROJECT REQUIRED.—(1) The Secretary of

Defense shall conduct a demonstration project to evaluate the feasibility of using only nonappropriated funds to support morale,

welfare, and recreation programs at military installations in order

to facilitate the procurement of property and services for those

programs and the management of employees used to carry out

those programs.

(2) Under the demonstration project—

(A) procurements of property and services for programs

referred to in paragraph (1) may be carried out in accordance

with laws and regulations applicable to procurements paid for

with nonappropriated funds; and

(B) appropriated funds available for such programs may

be expended in accordance with laws applicable to expenditures

of nonappropriated funds as if the appropriated funds were

nonappropriated funds.

(3) The Secretary shall prescribe regulations to carry out paragraph (2). The regulations shall provide for financial management

and accounting of appropriated funds expended in accordance with

subparagraph (B) of such paragraph.

(b) COVERED MILITARY INSTALLATIONS.—The Secretary shall

select not less than three and not more than six military installations to participate in the demonstration project.

(c) PERIOD OF DEMONSTRATION PROJECT.—The demonstration

project shall terminate not later than September 30, 1998.

(d) EFFECT ON EMPLOYEES.—For the purpose of testing fiscal

accounting procedures, the Secretary may convert, for the duration

of the demonstration project, the status of an employee who carries

out a program referred to in subsection (a)(1) from the status

of an employee paid by appropriated funds to the status of a

nonappropriated fund instrumentality employee, except that such

conversion may occur only—

(1) if the employee whose status is to be converted—

(A) is fully informed of the effects of such conversion

on the terms and conditions of the employment of that

employee for purposes of title 5, United States Code, and

on the benefits provided to that employee under such title;

and

(B) consents to such conversion; or

(2) in a manner which does not affect such terms and

conditions of employment or such benefits.

(e) REPORTS.—(1) Not later than six months after the date

of the enactment of this Act, the Secretary shall submit to Congress

an interim report on the implementation of this section.

(2) Not later than December 31, 1998, the Secretary shall

submit to Congress a final report on the results of the demonstration

project. The report shall include a comparison of—

(A) the cost incurred under the demonstration project in

using employees paid by appropriated funds together with

Termination

date.

Regulations.

10 USC 2241

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 263

nonappropriated fund instrumentality employees to carry out

the programs referred to in subsection (a)(1); and

(B) an estimate of the cost that would have been incurred

if only nonappropriated fund instrumentality employees had

been used to carry out such programs.

SEC. 336. OPERATION OF COMBINED EXCHANGE AND COMMISSARY

STORES.

(a) IN GENERAL.—(1) Chapter 147 of title 10, United States

Code, is amended by adding at the end the following new section:

‘‘§ 2490a. Combined exchange and commissary stores

‘‘(a) AUTHORITY.—The Secretary of Defense may authorize a

nonappropriated fund instrumentality to operate a military

exchange and a commissary store as a combined exchange and

commissary store on a military installation.

‘‘(b) LIMITATIONS.—(1) Not more than ten combined exchange

and commissary stores may be operated pursuant to this section.

‘‘(2) The Secretary may select a military installation for the

operation of a combined exchange and commissary store under

this section only if—

‘‘(A) the installation is to be closed, or has been or is

to be realigned, under a base closure law; or

‘‘(B) a military exchange and a commissary store are operated at the installation by separate entities at the time of,

or immediately before, such selection and it is not economically

feasible to continue that separate operation.

‘‘(c) OPERATION AT CARSWELL FIELD.—Combined exchange and

commissary stores operated under this section shall include the

combined exchange and commissary store that is operated at the

Naval Air Station Fort Worth, Joint Reserve Center, Carswell Field,

Texas, under the authority provided in section 375 of the National

Defense Authorization Act for Fiscal Year 1995 (Public Law 103–

337; 108 Stat. 2736).

‘‘(d) ADJUSTMENTS AND SURCHARGES.—Adjustments to, and surcharges on, the sales price of a grocery food item sold in a combined

exchange and commissary store under this section shall be provided

for in accordance with the same laws that govern such adjustments

and surcharges for items sold in a commissary store of the Defense

Commissary Agency.

‘‘(e) USE OF APPROPRIATED FUNDS.—(1) If a nonappropriated

fund instrumentality incurs a loss in operating a combined exchange

and commissary store at a military installation under this section

as a result of the requirement set forth in subsection (d), the

Secretary may authorize a transfer of funds available for the

Defense Commissary Agency to the nonappropriated fund

instrumentality to offset the loss.

‘‘(2) The total amount of appropriated funds transferred during

a fiscal year to support the operation of a combined exchange

and commissary store at a military installation under this section

may not exceed an amount that is equal to 25 percent of the

amount of appropriated funds that was provided for the operation

of the commissary store of the Defense Commissary Agency on

that installation during the last full fiscal year of operation of

that commissary store.

‘‘(f) DEFINITIONS.—In this section:

Texas.

110 STAT. 264 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(1) 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.

‘‘(2) The term ‘base closure law’ has the meaning given such term by section 2667(g) of this title.’’.

(2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

‘‘2490a. Combined exchange and commissary stores.’’.

(b) CONFORMING AMENDMENT.—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,’’.

SEC. 337. DEFERRED PAYMENT PROGRAMS OF MILITARY EXCHANGES.

(a) USE OF COMMERCIAL BANKING INSTITUTION.—(1) As soon

as practicable after the date of the enactment of this Act, the

Secretary of Defense shall seek to enter into an agreement with

a commercial banking institution under which the institution agrees

to finance and operate the deferred payment program of the Army

and Air Force Exchange Service and the deferred payment program

of the Navy Exchange Service Command. The Secretary shall use

competitive procedures to enter into an agreement under this paragraph. (2) In order to facilitate the transition of the operation of the programs referred to in paragraph (1) to commercial operation

under an agreement described in that paragraph, the Secretary

may initially limit the scope of any such agreement so as to apply

to only one of the programs. (b) REPORT.—Not later than December 31, 1995, the Secretary shall submit to Congress a report on the implementation of this

section. The report shall also include an analysis of the impact

of the deferred payment programs referred to in subsection (a)(1),

including the impact of the default and collection procedures under

such programs, on members of the Armed Forces and their families.

SEC. 338. 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 less 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. 339. 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;

Contracts.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 265

(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 options identified in the study to achieve the greater efficiencies referred to

in subsection (a).

SEC. 340. REPEAL OF REQUIREMENT TO CONVERT SHIPS’ STORES TO

NONAPPROPRIATED FUND INSTRUMENTALITIES.

(a) REPEAL.—Section 371 of the National Defense Authorization

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

note) is amended—

(1) by striking out subsections (a) and (b); and

(2) by redesignating subsections (c) and (d) as subsections

(a) and (b), respectively.

(b) INSPECTOR GENERAL REVIEW.—Not later than April 1, 1996,

the Inspector General of the Department of Defense shall submit

to Congress a report that reviews the report on the costs and

benefits of converting to operation of Navy ships’ stores by

nonappropriated fund instrumentalities that the Navy Audit Agency

prepared in connection with the postponement of the deadline for

the conversion provided for in section 374(a) of the National Defense

Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108

Stat. 2736).

SEC. 341. DISPOSITION OF EXCESS MORALE, WELFARE, AND RECREATION FUNDS.

Section 2219 of title 10, United States Code, is amended—

(1) in the first sentence, by striking out ‘‘a military department’’ and inserting in lieu thereof ‘‘an armed force’’;

(2) in the second sentence—

(A) by striking out ‘‘, department-wide’’; and

(B) by striking out ‘‘of the military department’’ and

inserting in lieu thereof ‘‘for that armed force’’; and

(3) by adding at the end the following: ‘‘This section does

not apply to the Coast Guard.’’.

SEC. 342. CLARIFICATION OF ENTITLEMENT TO USE OF MORALE, WELFARE, AND RECREATION FACILITIES BY MEMBERS OF

RESERVE COMPONENTS AND DEPENDENTS.

(a) IN GENERAL.—Section 1065 of title 10, United States Code,

is amended to read as follows:

‘‘§ 1065. Morale, welfare, and recreation retail facilities: use

by members of reserve components and dependents

‘‘(a) MEMBERS OF THE SELECTED RESERVE.—A member of the

Selected Reserve in good standing (as determined by the Secretary

concerned) shall be permitted to use MWR retail facilities on the

same basis as members on active duty.

‘‘(b) MEMBERS OF READY RESERVE NOT IN SELECTED RESERVE.—

Subject to such regulations as the Secretary of Defense may prescribe, a member of the Ready Reserve (other than members of

Reports.

110 STAT. 266 PUBLIC LAW 104–106—FEB. 10, 1996

the Selected Reserve) may be permitted to use MWR retail facilities

on the same basis as members serving on active duty. ‘‘(c) RESERVE RETIREES UNDER AGE 60.—A member or former

member of a reserve component under 60 years of age who, but

for age, would be eligible for retired pay under chapter 1223 of

this title shall be permitted to use MWR retail facilities on the

same basis as members of the armed forces entitled to retired

pay under any other provision of law. ‘‘(d) DEPENDENTS.—(1) Dependents of a member who is permitted under subsection (a) or (b) to use MWR retail facilities

shall be permitted to use such facilities on the same basis as

dependents of members on active duty.

‘‘(2) Dependents of a member who is permitted under subsection

(c) to use MWR retail facilities shall be permitted to use such

facilities on the same basis as dependents of members of the armed

forces entitled to retired pay under any other provision of law.

‘‘(e) MWR RETAIL FACILITY DEFINED.—In this section, the term

‘MWR retail facilities’ means exchange stores and other revenuegenerating facilities operated by nonappropriated fund activities

of the Department of Defense for the morale, welfare, and recreation

of members of the armed forces.’’.

(b) CLERICAL AMENDMENT.—The item relating to such section

in the table of sections at the beginning of chapter 54 of such

title is amended to read as follows:

‘‘1065. Morale, welfare, and recreation retail facilities: use by members of reserve

components and dependents.’’.

Subtitle E—Performance of Functions by

Private-Sector Sources

SEC. 351. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION SERVICES.

(a) REQUIREMENT FOR COMPETITIVE PROCUREMENT.—Except as

provided in subsection (b), the Secretary of Defense shall, during

fiscal year 1996 and consistent with the requirements of title 44,

United States Code, competitively procure printing and duplication

services from private-sector sources for the performance of at least

70 percent of the total printing and duplication requirements of

the Defense Printing Service. (b) EXCEPTION FOR CLASSIFIED INFORMATION.—The requirement

of subsection (a) shall not apply to the procurement of services

for printing and duplicating classified documents and information.

SEC. 352. DIRECT VENDOR DELIVERY SYSTEM FOR CONSUMABLE

INVENTORY ITEMS OF DEPARTMENT OF DEFENSE.

(a) IMPLEMENTATION OF DIRECT VENDOR DELIVERY SYSTEM.—

Not later than September 30, 1997, the Secretary of Defense shall,

to the maximum extent practicable, implement a system under

which consumable inventory items referred to in subsection (b)

are delivered to military installations throughout the United States

directly by the vendors of those items. The purpose for implementing

the system is to reduce the expense and necessity of maintaining

extensive warehouses for those items within the Department of

Defense.

(b) COVERED ITEMS.—The items referred to in subsection (a)

are the following:

10 USC 2458

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 267

(1) Food and clothing.

(2) Medical and pharmaceutical supplies.

(3) Automotive, electrical, fuel, and construction supplies.

(4) Other consumable inventory items the Secretary considers appropriate.

SEC. 353. PAYROLL, FINANCE, AND ACCOUNTING FUNCTIONS OF THE

DEPARTMENT OF DEFENSE.

(a) PLAN FOR PRIVATE OPERATION OF CERTAIN FUNCTIONS.—

(1) Not later than October 1, 1996, the Secretary of Defense shall

submit to Congress a plan for the performance by private-sector

sources of payroll functions for civilian employees of the Department

of Defense other than employees paid from nonappropriated funds.

(2)(A) The Secretary shall implement the plan referred to in

paragraph (1) if the Secretary determines that the cost of performance by private-sector sources of the functions referred to in that

paragraph does not exceed the cost of performance of those functions

by employees of the Federal Government.

(B) In computing the total cost of performance of such functions

by employees of the Federal Government, the Secretary shall

include the following:

(i) Managerial and administrative costs.

(ii) Personnel costs, including the cost of providing retirement benefits for such personnel.

(iii) Costs associated with the provision of facilities and

other support by Federal agencies.

(C) The Defense Contract Audit Agency shall verify the costs

computed for the Secretary under this paragraph by others.

(3) At the same time the Secretary submits the plan required

by paragraph (1), the Secretary shall submit to Congress a report

on other accounting and finance functions of the Department that

are appropriate for performance by private-sector sources.

(b) PILOT PROGRAM FOR PRIVATE OPERATION OF NAFI FUNCTIONS.—(1) The Secretary shall carry out a pilot program to test

the performance by private-sector sources of payroll and other

accounting and finance functions of nonappropriated fund

instrumentalities and to evaluate the extent to which cost savings

and efficiencies would result from the performance of such functions

by those sources.

(2) The payroll and other accounting and finance functions

designated by the Secretary for performance by private-sector

sources under the pilot program shall include at least one major

payroll, accounting, or finance function.

(3) To carry out the pilot program, the Secretary shall enter

into discussions with private-sector sources for the purpose of developing a request for proposals to be issued for performance by

those sources of functions designated by the Secretary under paragraph (2). The discussions shall be conducted on a schedule that

accommodates issuance of a request for proposals within 60 days

after the date of the enactment of this Act.

(4) A goal of the pilot program is to reduce by at least 25

percent the total costs incurred by the Department annually for

the performance of a function referred to in paragraph (2) through

the performance of that function by a private-sector source.

(5) Before conducting the pilot program, the Secretary shall

develop a plan for the program that addresses the following:

(A) The purposes of the program.

10 USC 2461

note.

Reports.

10 USC 2461

note.

110 STAT. 268 PUBLIC LAW 104–106—FEB. 10, 1996

(B) The methodology, duration, and anticipated costs of

the program, including the cost of an arrangement pursuant

to which a private-sector source would receive an agreed-upon

payment plus an additional negotiated amount not to exceed

50 percent of the dollar savings achieved in excess of the

goal specified in paragraph (4).

(C) 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.

(D) A mechanism to evaluate the program.

(E) A provision for all payroll, accounting, and finance

functions of nonappropriated fund instrumentalities of the

Department of Defense to be performed by private-sector

sources, if determined advisable on the basis of a final assessment of the results of the program.

(6) The Secretary shall act through the Under Secretary of

Defense (Comptroller) in the performance of the Secretary’s responsibilities under this subsection.

(c) LIMITATION ON OPENING OF NEW OPERATING LOCATIONS

FOR DEFENSE FINANCE AND ACCOUNTING SERVICE.—(1) Except as

provided in paragraph (2), the Secretary may not establish a new

operating location for the Defense Finance and Accounting Service

during fiscal year 1996.

(2) The Secretary may establish a new operating location for

the Defense Finance and Accounting Service if—

(A) for a new operating location that the Secretary planned

before the date of the enactment of this Act to establish on

or after that date, the Secretary reconsiders the need for

establishing that new operating location; and

(B) for each new operating location, including a new operating location referred to in subparagraph (A)—

(i) the Secretary submits to Congress, as part of the

report required by subsection (a)(4), an analysis of the

need for establishing the new operating location; and

(ii) a period of 30 days elapses after the Congress

receives the report.

(3) In this subsection, the term ‘‘new operating location’’ means

an operating location that is not in operation on the date of the

enactment of this Act, except that such term does not include

an operating location for which, as of such date—

(A) the Secretary has established a date for the commencement of operations; and

(B) funds have been expended for the purpose of its

establishment.

SEC. 354. DEMONSTRATION PROGRAM TO IDENTIFY OVERPAYMENTS

MADE TO VENDORS.

(a) IN GENERAL.—The Secretary of Defense shall conduct a

demonstration program to evaluate the feasibility of using private

contractors to audit accounting and procurement records of the

Department of Defense in order to identify overpayments made

to vendors by the Department. The demonstration program shall

be conducted for the Defense Logistics Agency and include the

Defense Personnel Support Center.

(b) PROGRAM REQUIREMENTS.—(1) Under the demonstration

program, the Secretary shall, by contract, provide for one or more

persons to audit the accounting and procurement records of the

Contracts.

10 USC 2461

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 269

Defense Logistics Agency that relate to (at least) fiscal years 1993,

1994, and 1995. The Secretary may enter into more than one

contract under the program.

(2) A contract under the demonstration program shall require

the contractor to use data processing techniques that are generally

used in audits of private-sector records similar to the records

audited under the contract.

(c) AUDIT REQUIREMENTS.—In conducting an audit under the

demonstration program, a contractor shall compare Department

of Defense purchase agreements (and related documents) with

invoices submitted by vendors under the purchase agreements.

A purpose of the comparison is to identify, in the case of each

audited purchase agreement, the following:

(1) Any payments to the vendor for costs that are not

allowable under the terms of the purchase agreement or by

law.

(2) Any amounts not deducted from the total amount paid

to the vendor under the purchase agreement that should have

been deducted from that amount on account of goods and services provided to the vendor by the Department.

(3) Duplicate payments.

(4) Unauthorized charges.

(5) Other discrepancies between the amount paid to the

vendor and the amount actually due the vendor under the

purchase agreement.

(d) BONUS PAYMENT.—To the extent provided for in a contract

under the demonstration program, the Secretary may pay the contractor a bonus in addition to any other amount paid for performance of the contract. The amount of such bonus may not exceed

the amount that is equal to 25 percent of all amounts recovered

by the United States on the basis of information obtained as a

result of the audit performed under the contract. Any such bonus

shall be paid out of amounts made available pursuant to subsection

(e).

(e) AVAILABILITY OF FUNDS.—Of the amount authorized to be

appropriated pursuant to section 301(5), not more than $5,000,000

shall be available for the demonstration program.

SEC. 355. PILOT PROGRAM ON PRIVATE OPERATION OF DEFENSE

DEPENDENTS’ SCHOOLS.

(a) PILOT PROGRAM.—The Secretary of Defense may conduct

a pilot program to evaluate 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 conducts the pilot program, the Secretary shall select one school of

the defense dependents’ education system for participation in the

program and provide for the operation of the school by a 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

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.

20 USC 921 note.

110 STAT. 270 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 356. PROGRAM FOR IMPROVED TRAVEL PROCESS FOR THE

DEPARTMENT OF DEFENSE.

(a) IN GENERAL.—(1) The Secretary of Defense shall conduct

a program to evaluate options to improve the Department of Defense

travel process. To carry out the program, the Secretary shall compare the results of the tests conducted under subsection (b) to

determine which travel process tested under such subsection is

the better option to effectively manage travel of Department personnel.

(2) The program shall be conducted at not less than three

and not more than six military installations, except that an installation may be the subject of only one test conducted under the

program.

(3) The Secretary shall act through the Under Secretary of

Defense (Comptroller) in the performance of the Secretary’s responsibilities under this section.

(b) CONDUCT OF TESTS.—(1) The Secretary shall conduct a

test at an installation referred to in subsection (a)(2) under which

the Secretary—

(A) implements the changes proposed to be made with

respect to the Department of Defense travel process by the

task force on travel management that was established by the

Secretary in July 1994;

(B) manages and uniformly applies that travel process

(including the implemented changes) throughout the Department; and

(C) provides opportunities for private-sector sources to provide travel reservation services and credit card services to

facilitate that travel process.

(2) The Secretary shall conduct a test at an installation referred

to in subsection (a)(2) under which the Secretary—

(A) enters into one or more contracts with a private-sector

source pursuant to which the private-sector source manages

the Department of Defense travel process (except for functions

referred to in subparagraph (B)), provides for responsive,

reasonably priced services as part of the travel process, and

uniformly applies the travel process throughout the Department; and

(B) provides for the performance by employees of the

Department of only those travel functions, such as travel

authorization, that the Secretary considers to be necessary

to be performed by such employees.

(3) Each test required by this subsection shall begin not later

than 60 days after the date of the enactment of this Act and

end two years after the date on which it began. Each such test

shall also be conducted in accordance with the guidelines for travel

management issued for the Department by the Under Secretary

of Defense (Comptroller).

(c) EVALUATION CRITERIA.—The Secretary shall establish criteria to evaluate the travel processes tested under subsection (b).

The criteria shall, at a minimum, include the extent to which

a travel process provides for the following:

(1) The coordination, at the time of a travel reservation,

of travel policy and cost estimates with the mission which

necessitates the travel.

10 USC 2461

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 271

(2) The use of fully integrated travel solutions envisioned

by the travel reengineering report of the Department of Defense

dated January 1995.

(3) The coordination of credit card data and travel reservation data with cost estimate data.

(4) The elimination of the need for multiple travel approvals

through the coordination of such data with proposed travel

plans.

(5) A responsive and flexible management information system that enables the Under Secretary of Defense (Comptroller)

to monitor travel expenses throughout the year, accurately

plan travel budgets for future years, and assess, in the case

of travel of an employee on temporary duty, the relationship

between the cost of the travel and the value of the travel

to the accomplishment of the mission which necessitates the

travel.

(d) PLAN FOR PROGRAM.—Before conducting the program, the

Secretary shall develop a plan for the program that addresses

the following:

(1) The purposes of the program, including the achievement

of an objective of reducing by at least 50 percent the total

cost incurred by the Department annually to manage the

Department of Defense travel process.

(2) The methodology and anticipated cost of the program,

including the cost of an arrangement pursuant to which a

private-sector source would receive an agreed-upon payment

plus an additional negotiated amount that does not exceed

50 percent of the total amount saved 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 criteria established pursuant to subsection (c).

(5) A provision for implementing throughout the Department the travel process determined to be the better option

to effectively manage travel of Department personnel on the

basis of a final assessment of the results of the program.

(e) REPORT.—After the first full year of the conduct of the

tests required by subsection (b), 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 implementation of the program. The report shall include

an analysis of the evaluation criteria established pursuant to subsection (c).

SEC. 357. INCREASED RELIANCE ON PRIVATE-SECTOR SOURCES FOR

COMMERCIAL PRODUCTS AND SERVICES.

(a) IN GENERAL.—The Secretary of Defense shall endeavor to

carry out through a private-sector source any activity to provide

a commercial product or service for the Department of Defense

if—

(1) the product or service can be provided adequately

through such a source; and

(2) an adequate competitive environment exists to provide

for economical performance of the activity by such a source.

10 USC 2461

note.

110 STAT. 272 PUBLIC LAW 104–106—FEB. 10, 1996

(b) APPLICABILITY.—(1) Subsection (a) shall not apply to any commercial product or service with respect to which the Secretary

determines that production, manufacture, or provision of that product or service by the Government is necessary for reasons of national

security. (2) A determination under paragraph (1) shall be made in accordance with regulations prescribed under subsection (c). (c) REGULATIONS.—The Secretary shall prescribe regulations to carry out this section. Such regulations shall be prescribed in

consultation with the Director of the Office of Management and

Budget. (d) REPORT.—(1) The Secretary shall identify activities of the Department (other than activities specified by the Secretary pursuant to subsection (b)) that are carried out by employees of the

Department to provide commercial-type products or services for

the Department. (2) Not later than April 15, 1996, the Secretary shall transmit to the congressional defense committees a report on opportunities

for increased use of private-sector sources to provide commercial

products and services for the Department. (3) The report required by paragraph (2) shall include the following:(A) A list of activities identified under paragraph (1) indicating, for each activity, whether the Secretary proposes

to convert the performance of that activity to performance

by private-sector sources and, if not, the reasons why. (B) An assessment of the advantages and disadvantages of using private-sector sources, rather than employees of the

Department, to provide commercial products and services for

the Department that are not essential to the warfighting mission of the Armed Forces.

(C) A specification of all legislative and regulatory impedi- ments to converting the performance of activities identified

under paragraph (1) to performance by private-sector sources. (D) The views of the Secretary on the desirability of termi- nating the applicability of OMB Circular A–76 to the Department.

(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.

Subtitle F—Miscellaneous Reviews,

Studies, and Reports

SEC. 361. 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

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 273

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 Depart- ment 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 shall—

‘‘(1) specifically describe identified readiness problems or

deficiencies and planned remedial actions; and

‘‘(2) include the key indicators and other relevant data

related to the identified problem 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 calendaryear quarter during which this Act is enacted.

SEC. 362. 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.—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 each budget activity 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.

‘‘(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 for each covered budget activity

the following:

‘‘(1) A statement, for the period covered by the report,

of—

10 USC 452 note.

110 STAT. 274 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(A) the total amount of transfers into funds available

for that activity; ‘‘(B) the total amount of transfers from funds available

for that activity; and ‘‘(C) the net amount of transfers into, or out of, funds

available for that activity.

‘‘(2) A detailed explanation of the transfers into, and out

of, funds available for that activity during the period covered

by the report.

‘‘(d) COVERED BUDGET ACTIVITIES.—The budget activities to which this section applies are the following: ‘‘(1) The budget activity groups (known as ‘subactivities’) within the Operating Forces budget activity of the annual Operation and Maintenance, Army, appropriation that are designated as follows: ‘‘(A) Combat Units.

‘‘(B) Tactical Support.

‘‘(C) Force-Related Training/Special Activities.

‘‘(D) Depot Maintenance.

‘‘(E) JCS Exercises.

‘‘(2) The budget activity groups (known as ‘subactivities’) within the Operating Forces budget activity of the annual Operation and Maintenance, Navy, appropriation that are designated as follows: ‘‘(A) Mission and Other Flight Operations.

‘‘(B) Mission and Other Ship Operations.

‘‘(C) Fleet Air Training.

‘‘(D) Ship Operational Support and Training.

‘‘(E) Aircraft Depot Maintenance.

‘‘(F) Ship Depot Maintenance. ‘‘(3) The budget activity groups (known as ‘subactivities’), or other activity, within the Operating Forces budget activity

of the annual Operation and Maintenance, Air Force, appropriation that are designated or otherwise identified as follows: ‘‘(A) Primary Combat Forces.

‘‘(B) Primary Combat Weapons.

‘‘(C) Global and Early Warning.

‘‘(D) Air Operations Training.

‘‘(E) Depot Maintenance.

‘‘(F) JCS Exercises.’’.

SEC. 363. 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 program’’ has the meaning given that term in section 2430(a) of title

10, United States Code.

SEC. 364. REVIEWS OF MANAGEMENT OF INVENTORY CONTROL

POINTS AND MATERIEL MANAGEMENT STANDARD SYSTEM.

(a) REVIEW OF CONSOLIDATION OF INVENTORY CONTROL

POINTS.—(1) The Secretary of Defense shall conduct a review of

the management by the Defense Logistics Agency of all inventory

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 275

control points of the Department of Defense. In conducting the

review, the Secretary shall examine the management and acquisition practices of the Defense Logistics Agency for inventory of

repairable spare parts. (2) Not later than March 31, 1996, the Secretary shall submit to the Comptroller General of the United States and the congressional defense committees a report on the results the review conducted under paragraph (1). (b) REVIEW OF MATERIEL MANAGEMENT STANDARD SYSTEM.— (1) The Comptroller General of the United States shall conduct

a review of the automated data processing system of the Department

of Defense known as the Materiel Management Standard System. (2) Not later than May 1, 1996, the Comptroller General shall submit to the congressional defense committees a report on the

results of the review conducted under paragraph (1).

SEC. 365. REPORT ON PRIVATE PERFORMANCE OF CERTAIN FUNCTIONS PERFORMED BY MILITARY AIRCRAFT.

(a) REPORT REQUIRED.—Not later than May 1, 1996, the Sec- retary of Defense shall submit to Congress a report on the feasibility

of providing for the performance by private-sector sources of functions necessary to be performed to fulfill the requirements of the

Department of Defense for air transportation of personnel and

cargo. (b) CONTENT OF REPORT.—The report shall include the following: (1) A cost-benefit analysis with respect to the performance by private-sector sources of functions described in subsection

(a), including an explanation of the assumptions used in the

cost-benefit analysis. (2) An assessment of the issues raised by providing for such performance by means of a contract entered into with

a private-sector source. (3) An assessment of the issues raised by providing for such performance by means of converting functions described

in subsection (a) to private ownership and operation, in whole

or in part. (4) A discussion of the requirements for the performance

of such functions in order to fulfill the requirements referred

to in subsection (a) during wartime. (5) The effect on military personnel and facilities of using private-sector sources to fulfill the requirements referred to

in such subsection.

(6) The performance by private-sector sources of any other military aircraft functions (such as non-combat inflight fueling

of aircraft) the Secretary considers appropriate.

SEC. 366. STRATEGY AND REPORT ON AUTOMATED INFORMATION

SYSTEMS OF DEPARTMENT OF DEFENSE.

(a) DEVELOPMENT OF STRATEGY.—The Secretary of Defense

shall develop a strategy for the development or modernization of

automated information systems for the Department of Defense. (b) MATTERS TO CONSIDER.—In developing the strategy required under subsection (a), the Secretary shall consider the following: (1) The use of performance measures and management

controls.

(2) Findings of the Functional Management Review conducted by the Secretary.

10 USC 113 note.

110 STAT. 276 PUBLIC LAW 104–106—FEB. 10, 1996

(3) Program management actions planned by the Secretary.

(4) Actions and milestones necessary for completion of functional and economic analyses for—

(A) the Automated System for Transportation data;

(B) continuous acquisition and life cycle support;

(C) electronic data interchange;

(D) flexible computer integrated manufacturing;

(E) the Navy Tactical Command Support System; and

(F) the Defense Information System Network.

(5) Progress made by the Secretary in resolving problems

with respect to the Defense Information System Network and

the Joint Computer-Aided Acquisition and Logistics Support

System.

(6) Tasks identified in the review conducted by the Secretary of the Standard Installation/Division Personnel System3.

(7) Such other matters as the Secretary considers appropriate.

(c) REPORT ON STRATEGY.—(1) Not later than April 15, 1996,

the Secretary shall submit to Congress a report on the development

of the strategy required under subsection (a).

(2) In the case of the Air Force Wargaming Center, the Air

Force Command Exercise System, the Cheyenne Mountain Upgrade,

the Transportation Coordinator Automated Command and Control

Information Systems, and the Wing Command and Control Systems,

the report required by paragraph (1) shall provide functional economic analyses and address waivers exercised for compelling military importance under section 381(d) of the National Defense

Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108

Stat. 2739).

(3) The report required by paragraph (1) shall also include

the following:

(A) A certification by the Secretary of the termination

of the Personnel Electronic Record Management System or

a justification for the continued need for such system.

(B) Findings of the Functional Management Review conducted by the Secretary and program management actions

planned by the Secretary for—

(i) the Base Level System Modernization and the

Sustaining Base Information System; and

(ii) the Standard Installation/Division Personnel System-3.

(C) An assessment of the implementation of migration systems and applications, including—

(i) identification of the systems and applications by

functional or business area, specifying target dates for operation of the systems and applications;

(ii) identification of the legacy systems and applications

that will be terminated;

(iii) the cost of and schedules for implementing the

migration systems and applications; and

(iv) termination schedules.

(D) A certification by the Secretary that each information

system that is subject to review by the Major Automated

Information System Review Committee of the Department is

cost-effective and supports the corporate information manageCertification.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 277

ment goals of the Department, including the results of the

review conducted for each such system by the Committee.

Subtitle G—Other Matters

SEC. 371. 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

or converted to management 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 Commissary Agency.

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

‘‘(6) The Joint Logistics Systems Center.

‘‘(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:

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

goods and services, whenever practicable, and the costs of the

development, implementation, operation, and maintenance of

systems supporting the wholesale supply and maintenance

activities of the Department of Defense.

‘‘(B) Amounts for depreciation of capital assets, set in

accordance with generally accepted accounting principles.

Records.

110 STAT. 278 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(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:

‘‘(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.

‘‘(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.

‘‘(3)(A) The Secretary of Defense may submit to a customer

a bill for the provision of goods and services through the Fund

in advance of the provision of those goods and services.

‘‘(B) The Secretary shall submit to Congress a report on advance

billings made pursuant to subparagraph (A)—

‘‘(i) when the aggregate amount of all such billings after

the date of the enactment of the National Defense Authorization

Act for Fiscal Year 1996 reaches $100,000,000; and

‘‘(ii) whenever the aggregate amount of all such billings

after the date of a preceding report under this subparagraph

reaches $100,000,000.

‘‘(C) Each report under subparagraph (B) shall include, for

each such advance billing, the following:

‘‘(i) An explanation of the reason for the advance billing.

‘‘(ii) An analysis of the impact of the advance billing on

readiness.

‘‘(iii) An analysis of the impact of the advance billing on

the customer so billed.

‘‘(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 stateReports.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 279

ment for each subaccount of the Fund) for the fiscal year

ending in the year preceding the year in which the budget

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 fiscal year referred to in

paragraph (1) 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 $50,000:

‘‘(A) Minor construction projects financed by the Fund

pursuant to section 2805(c)(1) of this title.

‘‘(B) Automatic data processing equipment, software.

‘‘(C) Equipment other than equipment described in

subparagraph (B).

‘‘(D) 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).

110 STAT. 280 PUBLIC LAW 104–106—FEB. 10, 1996

(5) Section 8121 of the Department of Defense Appropriations Act, 1992 (Public Law 102–172; 10 U.S.C. 2208 note).

SEC. 372. CLARIFICATION OF SERVICES AND PROPERTY THAT MAY

BE EXCHANGED TO BENEFIT THE HISTORICAL COLLECTION OF THE ARMED FORCES.

Section 2572(b)(1) of title 10, United States Code, is amended

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 such items or services 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. 373. FINANCIAL MANAGEMENT TRAINING.

(a) LIMITATION.—The Secretary of Defense may enter into a

capital lease for the establishment of a Department of Defense

financial management training center no earlier than the date

that is 30 days after the date on which the Secretary of Defense

submits to the Committee on Armed Services of the Senate and

the Committee on National Security of the House of Representatives, in accordance with subsection (b), a certification of the need

for such a center and a report on financial management training

for Department of Defense personnel.

(b) CERTIFICATION AND REPORT.—(1) The certification and

report referred to in subsection (a) are the following:

(A) Certification by the Secretary of the need for such

a center.

(B) A report, submitted with the certification, on financial

management training for Department of Defense personnel.

(2) Any report under paragraph (1) shall contain the following:

(A) The Secretary’s analysis of the requirements for providing financial management training for employees of the Department of Defense.

(B) The alternatives considered by the Secretary for meeting those requirements.

(C) A detailed plan for meeting those requirements.

(D) A financial analysis of the estimated short-term and

long-term costs of carrying out the plan.

(3) If, upon completing the analysis referred to in paragraph

(2)(A) and after considering alternatives as described in paragraph

(2)(B), the Secretary determines to meet the requirements for

providing financial management training for employees of the

Department of Defense through establishment of a financial

management training center, the Secretary—

(A) shall make the determination of the location of the

center using a merit-based selection process; and

(B) shall include in the report under paragraph (1) a

description of that merit-based selection process.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 281

SEC. 374. PERMANENT AUTHORITY FOR USE OF PROCEEDS FROM THE

SALE OF CERTAIN LOST, ABANDONED, OR UNCLAIMED

PROPERTY.

(a) PERMANENT AUTHORITY.—Section 2575 of title 10 is

amended—

(1) by striking out subsection (b) and inserting in lieu

thereof the following:

‘‘(b)(1) In the case of lost, abandoned, or unclaimed personal

property found on a military installation, the proceeds from the

sale of the property under this section shall be credited to the

operation and maintenance account of that installation and used—

‘‘(A) to reimburse the installation for any costs incurred

by the installation to collect, transport, store, protect, or sell

the property; and

‘‘(B) to the extent that the amount of the proceeds exceeds

the amount necessary for reimbursing all such costs, to support

morale, welfare, and recreation activities under the jurisdiction

of the armed forces that are conducted for the comfort, pleasure,

contentment, or physical or mental improvement of members

of the armed forces at such installation.

‘‘(2) The net proceeds from the sale of other property under

this section shall be covered into the Treasury as miscellaneous

receipts.’’; and

(2) by adding at the end the following:

‘‘(d)(1) The owner (or heirs, next of kin, or legal representative

of the owner) of personal property the proceeds of which are credited

to a military installation under subsection (b)(1) may file a claim

with the Secretary of Defense for the amount equal to the proceeds

(less costs referred to in subparagraph (A) of such subsection).

Amounts to pay the claim shall be drawn from the morale, welfare,

and recreation account for the installation that received the proceeds.

‘‘(2) The owner (or heirs, next of kin, or legal representative

of the owner) may file a claim with the Comptroller General of

the United States for proceeds covered into the Treasury under

subsection (b)(2).

‘‘(3) Unless a claim is filed under this subsection within 5

years after the date of the disposal of the property to which the

claim relates, the claim may not be considered by a court, the

Secretary of Defense (in the case of a claim filed under paragraph

(1)), or the Comptroller General of the United States (in the case

of a claim filed under paragraph (2)).’’.

(b) REPEAL OF AUTHORITY FOR DEMONSTRATION PROGRAM.—

Section 343 of the National Defense Authorization Act for Fiscal

Years 1992 and 1993 (Public Law 102–190; 105 Stat. 1343) is

repealed.

SEC. 375. SALE OF MILITARY CLOTHING AND SUBSISTENCE AND

OTHER SUPPLIES OF THE NAVY AND MARINE CORPS.

(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)(1) The Secretary of the Navy shall procure and sell, for

cash or credit—

110 STAT. 282 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(A) articles designated by the Secretary to members of

the Navy and Marine Corps; and

‘‘(B) items of individual clothing and equipment to members

of the Navy and Marine Corps, under such restrictions as

the Secretary may prescribe.

‘‘(2) An account of sales on credit shall be kept and the amount

due reported to 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 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 Secretary may sell serviceable supplies, other than

subsistence supplies, to members of other armed forces for the

buyers’ use in the service. The prices at which the supplies are

sold shall be the same 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 honorably or under honorable conditions from the Navy

or Marine Corps, at the prices at which like articles are sold

to members of the Navy or Marine Corps. This subsection does

not modify sections 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)(1) The Secretary may provide for the procurement and

sale of stores designated by the Secretary to such civilian officers

and employees of the United States, and such other persons, as

the Secretary considers proper—

‘‘(A) at military installations outside the United States;

and

‘‘(B) subject to paragraph (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 such stores from commercial enterprises without

impairing the efficient operation of military activities.

‘‘(2) Sales to civilian officers and employees inside the United

States may be made under paragraph (1) only to civilian officers

and employees residing 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 such members and their families.’’.

Regulations.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 283

(2) The table of sections at the beginning of chapter 651 of such title is amended by adding at the end the following:

‘‘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 of such title is amended—

(A) by striking out ‘‘The branch, office, or officer designated by the Secretary of the Army’’ in subsection (a) and inserting

in lieu thereof ‘‘The Secretary of the Army’’; (B) by striking out ‘‘The branch, office, or officer designated by the Secretary’’ both places it appears in subsections (b)

and (c) and inserting in lieu thereof ‘‘The Secretary’’; and (C) by inserting before the period at the end of subsection (f) the following: ‘‘or by commercial credit’’.

(2) Section 9621 of such title is amended—

(A) by striking out ‘‘The Air Force shall’’ in subsection (b) and inserting in lieu thereof ‘‘The Secretary shall’’; and (B) by inserting before the period at the end of subsection (f) the following: ‘‘or by commercial credit’’.

SEC. 376. 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 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. 377. 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. Competitions for excellence: acceptance of monetary awards

‘‘(a) ACCEPTANCE AUTHORIZED.—The Secretary of Defense may accept a monetary award given to the Department of Defense by

a nongovernmental entity as a result of the participation of the

Department in a competition carried out to recognize excellence

or innovation in providing services or administering programs. ‘‘(b) DISPOSITION OF AWARDS.—A monetary award accepted under subsection (a) shall be credited to one or more

nonappropriated fund accounts supporting morale, welfare, and

recreation activities for the command, installation, or other activity

that is recognized for the award. Amounts so credited may be

expended only for such activities. ‘‘(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 by the Department to participate in a competition

described in subsection (a) or to accept a monetary award under

this section.

‘‘(d) REGULATIONS AND REPORTING.—(1) The Secretary shall prescribe regulations to determine the disposition of monetary

awards accepted under this section and the payment of incidental

expenses under subsection (c).

110 STAT. 284 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(2) At the end of each year, the Secretary shall submit to

Congress a report for that year describing the disposition of monetary awards accepted under this section and the payment of incidental expenses under subsection (c).

‘‘(e) TERMINATION.—The authority of the Secretary under this

section shall expire two years after the date of the enactment

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

(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. Competitions for excellence: acceptance of monetary awards.’’.

SEC. 378. PROVISION OF EQUIPMENT AND FACILITIES TO ASSIST IN

EMERGENCY RESPONSE ACTIONS.

Section 372 of title 10, United States Code, is amended—

(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘The Secretary

of Defense’’; and

(2) by adding at the end the following new subsection:

‘‘(b) EMERGENCIES INVOLVING CHEMICAL AND BIOLOGICAL

AGENTS.—(1) In addition to equipment and facilities described in

subsection (a), the Secretary may provide an item referred to in

paragraph (2) to a Federal, State, or local law enforcement or

emergency response agency to prepare for or respond to an emergency involving chemical or biological agents if the Secretary determines that the item is not reasonably available from another source.

‘‘(2) An item referred to in paragraph (1) is any material or

expertise of the Department of Defense appropriate for use in

preparing for or responding to an emergency involving chemical

or biological agents, including the following:

‘‘(A) Training facilities.

‘‘(B) Sensors.

‘‘(C) Protective clothing.

‘‘(D) Antidotes.’’.

SEC. 379. REPORT ON DEPARTMENT OF DEFENSE MILITARY AND

CIVIL DEFENSE PREPAREDNESS TO RESPOND TO EMERGENCIES RESULTING FROM A CHEMICAL, BIOLOGICAL,

RADIOLOGICAL, OR NUCLEAR ATTACK.

(a) REPORT.—(1) Not later than March 1, 1996, the Secretary

of Defense and the Secretary of Energy shall submit to Congress

a joint report on the military and civil defense plans and programs

of the Department of Defense to prepare for and respond to the

effects of an emergency in the United States resulting from a

chemical, biological, radiological, or nuclear attack on the United

States (hereinafter in this section referred to as an ‘‘attack-related

civil defense emergency’’).

(2) The report shall be prepared in consultation with the Director of the Federal Emergency Management Agency.

(b) CONTENT OF REPORT.—The report shall include the following:

(1) A discussion of the military and civil defense plans

and programs of the Department of Defense for preparing for

and responding to an attack-related civil defense emergency

arising from an attack of a type for which the Department

of Defense has a primary responsibility to respond.

(2) A discussion of the military and civil defense plans

and programs of the Department of Defense for preparing for

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 285

and providing a response to an attack-related civil defense

emergency arising from an attack of a type for which the

Department of Defense has responsibility to provide a supporting response.

(3) A description of any actions, and any recommended

legislation, that the Secretaries consider necessary for improving the preparedness of the Department of Defense to respond

effectively to an attack-related civil defense emergency.

TITLE IV—MILITARY PERSONNEL

AUTHORIZATIONS

Subtitle A—Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

(a) FISCAL YEAR 1996.—The Armed Forces are authorized

strengths for active duty personnel as of September 30, 1996, as

follows:

(1) The Army, 495,000, of which not more than 81,300

may be commissioned officers.

(2) The Navy, 428,340, of which not more than 58,870

may be commissioned officers.

(3) The Marine Corps, 174,000, of which not more than

17,978 may be commissioned officers.

(4) The Air Force, 388,200, of which not more than 75,928

may be commissioned officers.

(b) FLOOR ON END STRENGTHS.—(1) 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 implement a reduction of the active duty end strength

for any of the armed forces for any fiscal year below the level

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

implement such a reduction for that fiscal year until the end of

the six-month period beginning on the date of the receipt of such

notice by Congress.

‘‘(d) For a fiscal year for which the active duty end strength

authorized by law pursuant to section 115(a)(1)(A) of this title

10 USC 115 note.

110 STAT. 286 PUBLIC LAW 104–106—FEB. 10, 1996

for any of the armed forces is identical to the number applicable

to that armed force under subsection (b), the Secretary of Defense

may reduce that number by not more than 0.5 percent. ‘‘(e) 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.’’.

(2) 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.’’.

(c) ACTIVE COMPONENT END STRENGTH FLEXIBILITY.—Section

115(c)(1) of title 10, United States Code, is amended by striking

out ‘‘0.5 percent’’ and inserting in lieu thereof ‘‘1 percent’’.

SEC. 402. TEMPORARY VARIATION IN DOPMA AUTHORIZED END

STRENGTH LIMITATIONS FOR ACTIVE DUTY AIR FORCE

AND NAVY OFFICERS IN CERTAIN GRADES.

(a) AIR FORCE OFFICERS.—In the administration of the limitation under section 523(a)(1) of title 10, United States Code, for

fiscal years 1996 and 1997, the numbers applicable to officers

of the Air Force serving on active duty in the grades of major,

lieutenant colonel, and colonel shall be the numbers set forth for

that fiscal year in the following table (rather than the numbers

determined in accordance with the table in that section):

Fiscal year:

Number of officers who may be serving on active duty in the

grade of:

Major Lieutenant colonel Colonel

1996 ................................. 15,566 9,876 3,609

1997 ................................. 15,645 9,913 3,627

(b) NAVY OFFICERS.—In the administration of the limitation

under section 523(a)(2) of title 10, United States Code, for fiscal

years 1996 and 1997, the numbers applicable to officers of the

Navy serving on active duty in the grades of lieutenant commander,

commander, and captain shall be the numbers set forth for that

fiscal year in the following table (rather than the numbers determined in accordance with the table in that section):

Fiscal year:

Number of officers who may be serving on active duty in the

grade of:

Lieutenant commander Commander Captain

1996 ................................. 11,924 7,390 3,234

1997 ................................. 11,732 7,297 3,188

SEC. 403. CERTAIN GENERAL AND FLAG OFFICERS AWAITING RETIREMENT NOT TO BE COUNTED.

(a) DISTRIBUTION OF OFFICERS ON ACTIVE DUTY IN GENERAL

AND FLAG OFFICER GRADES.—Section 525 of title 10, United States

Code, is amended by adding at the end the following new subsection:

‘‘(d) An officer continuing to hold the grade of general or admiral under section 601(b)(4) of this title after relief from the position

of Chairman of the Joint Chiefs of Staff, Chief of Staff of the

Army, Chief of Naval Operations, Chief of Staff of the Air Force,

or Commandant of the Marine Corps shall not be counted for

purposes of this section.’’.

10 USC 523 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 287

(b) NUMBER OF OFFICERS ON ACTIVE DUTY IN GRADE OF GEN- ERAL OR ADMIRAL.—Section 528(b) of such title is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and

(2) by adding at the end the following:

‘‘(2) An officer continuing to hold the grade of general or admiral

under section 601(b)(4) of this title after relief from the position

of Chairman of the Joint Chiefs of Staff, Chief of Staff of the

Army, Chief of Naval Operations, Chief of Staff of the Air Force,

or Commandant of the Marine Corps shall not be counted for

purposes of this section.’’.

(c) CLARIFICATION.—Section 601(b) of such title is amended—

(1) in the matter preceding paragraph (1), by striking out

‘‘of importance and responsibility designated’’ and inserting

in lieu thereof ‘‘designated under subsection (a) or by law’’;

(2) in paragraph (1), by striking out ‘‘of importance and

responsibility’’;

(3) in paragraph (2), by striking out ‘‘designating’’ and

inserting in lieu thereof ‘‘designated under subsection (a) or

by law’’; and

(4) in paragraph (4), by inserting ‘‘under subsection (a)

or by law’’ after ‘‘designated’’.

Subtitle B—Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

(a) FISCAL YEAR 1996.—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, 98,894.

(4) The Marine Corps Reserve, 42,274.

(5) The Air National Guard of the United States, 112,707.

(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 for a fiscal

year 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.

10 USC 12001

note.

110 STAT. 288 PUBLIC LAW 104–106—FEB. 10, 1996

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, 17,587.

(4) The Marine Corps Reserve, 2,559.

(5) The Air National Guard of the United States, 10,066.

(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.’’.

SEC. 414. INCREASE IN NUMBER OF MEMBERS IN CERTAIN GRADES

AUTHORIZED TO SERVE ON ACTIVE DUTY IN SUPPORT OF

THE RESERVES.

(a) OFFICERS.—The table in section 12011(a) of title 10, United

States Code, is amended to read as follows:

‘‘Grade Army Navy Air

Force

Marine

Corps

Major or Lieutenant Commander ....................... 3,219 1,071 643 140

Lieutenant Colonel or Commander .................... 1,524 520 672 90

Colonel or Navy Captain ..................................... 412 188 274 30’’.

(b) SENIOR ENLISTED MEMBERS.—The table in section 12012(a)

of such title is amended to read as follows:

‘‘Grade Army Navy Air

Force

Marine

Corps

E–9 ........................................................................ 603 202 366 20

E–8 ........................................................................ 2,585 429 890 94’’.

SEC. 415. RESERVES ON ACTIVE DUTY IN SUPPORT OF COOPERATIVE

THREAT REDUCTION PROGRAMS NOT TO BE COUNTED.

Section 115(d) of title 10, United States Code, is amended

by adding at the end the following:

10 USC 12001

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 289

‘‘(8) Members of the Selected Reserve of the Ready Reserve

on active duty for more that 180 days to support programs

described in section 1203(b) of the Cooperative Threat Reduction Act of 1993 (title XII of Public Law 103–160; 22 U.S.C.

5952(b)).’’.

SEC. 416. RESERVES ON ACTIVE DUTY FOR MILITARY-TO-MILITARY

CONTACTS AND COMPARABLE ACTIVITIES NOT TO BE

COUNTED.

Section 168 of title 10, United States Code, is amended—

(1) by redesignating subsection (f) as subsection (g); and

(2) by inserting after subsection (e) the following new subsection (f):

‘‘(f) ACTIVE DUTY END STRENGTHS.—(1) A member of a reserve

component referred to in paragraph (2) shall not be counted for

purposes of the following personnel strength limitations:

‘‘(A) The end strength for active-duty personnel authorized

pursuant to section 115(a)(1) of this title for the fiscal year

in which the member carries out the activities referred to

in paragraph (2).

‘‘(B) The authorized daily average for members in pay

grades E–8 and E–9 under section 517 of this title for the

calendar year in which the member carries out such activities.

‘‘(C) The authorized strengths for commissioned officers

under section 523 of this title for the fiscal year in which

the member carries out such activities.

‘‘(2) A member of a reserve component referred to in paragraph

(1) is any member on active duty under an order to active duty

for 180 days or more who is engaged in activities authorized under

this section.’’.

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 training 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.

110 STAT. 290 PUBLIC LAW 104–106—FEB. 10, 1996

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 $69,191,008,000. The authorization in the preceding sentence

supersedes any other authorization of appropriations (definite or

indefinite) for such purpose for fiscal year 1996.

SEC. 432. AUTHORIZATION FOR INCREASE IN ACTIVE-DUTY END

STRENGTHS.

(a) AUTHORIZATION.—There is hereby authorized to be appropriated to the Department of Defense for fiscal year 1996 for military personnel the sum of $112,000,000. Any amount appropriated

pursuant to this section shall be allocated, in such manner as

the Secretary of Defense prescribes, among appropriations for

active-component military personnel for that fiscal year and shall

be available only to increase the number of members of the Armed

Forces on active duty during that fiscal year (compared to the

number of members that would be on active duty but for such

appropriation).

(b) EFFECT ON END STRENGTHS.—The end-strength authorizations in section 401 shall each be deemed to be increased by such

number as necessary to take account of additional members of

the Armed Forces authorized by the Secretary of Defense pursuant

to subsection (a).

TITLE V—MILITARY PERSONNEL

POLICY

Subtitle A—Officer Personnel Policy

SEC. 501. JOINT OFFICER MANAGEMENT.

(a) CRITICAL JOINT DUTY ASSIGNMENT POSITIONS.—Section

661(d)(2)(A) of title 10, United States Code, is amended by striking

out ‘‘1,000’’ and inserting in lieu thereof ‘‘800’’.

(b) ADDITIONAL QUALIFYING JOINT SERVICE.—Section 664 of

such title is amended by adding at the end the following:

‘‘(i) JOINT DUTY CREDIT FOR CERTAIN JOINT TASK FORCE

ASSIGNMENTS.—(1) In the case of an officer who completes service

in a qualifying temporary joint task force assignment, the Secretary

of Defense, with the advice of the Chairman of the Joint Chiefs

of Staff, may (subject to the criteria prescribed under paragraph

(4)) grant the officer—

‘‘(A) credit for having completed a full tour of duty in

a joint duty assignment; or

‘‘(B) credit countable for determining cumulative service

in joint duty assignments.

‘‘(2)(A) For purposes of paragraph (1), a qualifying temporary

joint task force assignment of an officer is a temporary assignment,

any part of which is performed by the officer on or after the

date of the enactment of this subsection—

10 USC 115 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 291

‘‘(i) to the headquarters staff of a United States joint task

force that is part of a unified command or the United States

element of the headquarters staff of a multinational force;

and

‘‘(ii) with respect to which the Secretary of Defense determines that service of the officer in that assignment is equivalent

to that which would be gained by the officer in a joint duty

assignment.

‘‘(B) An officer may not be granted credit under this subsection

unless the officer is recommended for such credit by the Chairman

of the Joint Chiefs of Staff.

‘‘(3) Credit under paragraph (1) (including a determination

under paragraph (2)(A)(ii) and a recommendation under paragraph

(2)(B) with respect to such credit) may be granted only on a caseby-case basis in the case of an individual officer.

‘‘(4) The Secretary of Defense shall prescribe by regulation

criteria for determining whether an officer may be granted credit

under paragraph (1) with respect to service in a qualifying temporary joint task force assignment. The criteria shall apply uniformly among the armed forces and shall include the following

requirements:

‘‘(A) For an officer to be credited as having completed

a full tour of duty in a joint duty assignment, the length

of the officer’s service in the qualifying temporary joint task

force assignment must meet the requirements of subsection

(a) or (c).

‘‘(B) For an officer to be credited with service for purposes

of determining cumulative service in joint duty assignments,

the officer must serve at least 90 consecutive days in the

qualifying temporary joint task force assignment.

‘‘(C) The service must be performed in support of a mission

that is directed by the President or that is assigned by the

President to United States forces in the joint task force

involved.

‘‘(D) The joint task force must be constituted or designated

by the Secretary of Defense or by the commander of a combatant

command or of another force.

‘‘(E) The joint task force must conduct combat or combatrelated operations in a unified action under joint or multinational command and control.

‘‘(5) Officers for whom joint duty credit is granted pursuant

to this subsection may not be taken into account for the purposes

of any of the following provisions of this title: section 661(d)(1),

section 662(a)(3), section 662(b), subsection (a) of this section, and

paragraphs (7), (8), (9), (11), and (12) of section 667.

‘‘(6) In the case of an officer credited with having completed

a full tour of duty in a joint duty assignment pursuant to this

subsection, the Secretary of Defense may waive the requirement

in paragraph (1)(B) of section 661(c) of this title that the tour

of duty in a joint duty assignment be performed after the officer

completes a program of education referred to in paragraph (1)(A)

of that section. The provisions of subparagraphs (C) and (D) of

section 661(c)(3) of this title shall apply to such a waiver in the

same manner as to a waiver under subparagraph (A) of that section.’’.

Regulations.

110 STAT. 292 PUBLIC LAW 104–106—FEB. 10, 1996

(c) INFORMATION IN ANNUAL REPORT.—Section 667 of such title

is amended by striking out paragraph (16) and inserting after

paragraph (15) the following new paragraph (16): ‘‘(16) The number of officers granted credit for service in

joint duty assignments under section 664(i) of this title and—

‘‘(A) of those officers—

‘‘(i) the number of officers credited with having

completed a tour of duty in a joint duty assignment;

and

‘‘(ii) the number of officers granted credit for purposes of determining cumulative service in joint duty

assignments; and

‘‘(B) the identity of each operation for which an officer

has been granted credit pursuant to section 664(i) of this

title and a brief description of the mission of the operation.’’.

(d) APPLICABILITY OF LIMITATION ON WAIVER AUTHORITY.—Section 661(c)(3) of such title is amended—

(1) in the third sentence of subparagraph (D), by striking

out ‘‘The total number’’ and inserting in lieu thereof ‘‘In the

case of officers in grades below brigadier general and rear

admiral (lower half), the total number’’; and

(2) by adding at the end the following new subparagraph:

‘‘(E) There may not be more than 32 general and flag officers

on active duty at the same time who were selected for the joint

specialty while holding a general or flag officer grade and for

whom a waiver was granted under this subparagraph.’’.

(e) LENGTH OF SECOND JOINT TOUR.—Section 664 of such title

is amended—

(1) in subsection (e)(2), by inserting after subparagraph

(B) the following:

‘‘(C) Service described in subsection (f)(6), except that no

more than 10 percent of all joint duty assignments shown

on the list published pursuant to section 668(b)(2)(A) of this

title may be so excluded in any year.’’; and

(2) in subsection (f)—

(A) in the matter preceding paragraph (1), by striking

out ‘‘completion of—’’ and inserting in lieu thereof ‘‘completion of any of the following:’’;

(B) by striking out ‘‘a’’ at the beginning of paragraphs

(1), (2), (4), and (5) and inserting in lieu thereof ‘‘A’’;

(C) by striking out ‘‘cumulative’’ in paragraph (3) and

inserting in lieu thereof ‘‘Cumulative’’;

(D) by striking out the semicolon at the end of paragraphs (1), (2), and (3) and ‘‘; or’’ at the end of paragraph

(4) and inserting in lieu thereof a period; and

(E) by adding at the end the following:

‘‘(6) A second joint duty assignment that is less than the

period required under subsection (a), but not less than two

years, without regard to whether a waiver was granted for

such assignment under subsection (b).’’.

(f) TECHNICAL AMENDMENT.—Section 664(e)(1) of such title is

amended by striking out ‘‘(after fiscal year 1990)’’.

SEC. 502. RETIRED GRADE FOR OFFICERS IN GRADES ABOVE MAJOR

GENERAL AND REAR ADMIRAL.

(a) APPLICABILITY OF TIME-IN-GRADE REQUIREMENTS.—Section

1370 of title 10, United States Code, is amended—

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 293

(1) in subsection (a)(2)(A), by striking out ‘‘and below

lieutenant general or vice admiral’’; and

(2) in the first sentence of subsection (d)(2)(B), as added

effective October 1, 1996, by section 1641 of the Reserve Officer

Personnel Management Act (title XVI of Public Law 103–337;

108 Stat. 2968), by striking out ‘‘and below lieutenant general

or vice admiral’’.

(b) RETIREMENT IN HIGHEST GRADE UPON CERTIFICATION OF

SATISFACTORY SERVICE.—Subsection (c) of such section is amended

to read as follows:

‘‘(c) OFFICERS IN O–9 AND O–10 GRADES.—(1) An officer who

is serving in or has served in the grade of general or admiral

or lieutenant general or vice admiral may be retired in that grade

under subsection (a) only after the Secretary of Defense certifies

in writing to the President and Congress that the officer served

on active duty satisfactorily in that grade.

‘‘(2) In the case of an officer covered by paragraph (1), the

three-year service-in-grade requirement in paragraph (2)(A) of subsection (a) may not be reduced or waived under that subsection—

‘‘(A) while the officer is under investigation for alleged

misconduct; or

‘‘(B) while there is pending the disposition of an adverse

personnel action against the officer for alleged misconduct.’’.

(c) REPEAL OF SUPERSEDED PROVISIONS.—Sections 3962(a),

5034, 5043(c), and 8962(a) of such title are repealed.

(d) TECHNICAL AND CLERICAL AMENDMENTS.—(1) Sections

3962(b) and 8962(b) of such title are amended by striking out

‘‘(b) Upon’’ and inserting in lieu thereof ‘‘Upon’’.

(2) The table of sections at the beginning of chapter 505 of

such title is amended by striking out the item relating to section

5034.

(e) EFFECTIVE DATE FOR AMENDMENT TO PROVISION TAKING

EFFECT IN 1996.—The amendment made by subsection (a)(2) shall

take effect on October 1, 1996, immediately after subsection (d)

of section 1370 of title 10, United States Code, takes effect under

section 1691(b)(1) of the Reserve Officer Personnel Management

Act (108 Stat. 3026).

(f) PRESERVATION OF APPLICABILITY OF LIMITATION.—Section

1370(a)(2)(C) of title 10, United States Code, is amended by striking

out ‘‘The number of officers in an armed force in a grade’’ and

inserting in lieu thereof ‘‘In the case of a grade below the grade

of lieutenant general or vice admiral, the number of members

of one of the armed forces in that grade’’.

(g) STYLISTIC AMENDMENTS.—Section 1370 of title 10, United

States Code, is further amended—

(1) in subsection (a), by striking out ‘‘(a)(1)’’ and inserting

in lieu thereof ‘‘(a) RULE FOR RETIREMENT IN HIGHEST GRADE

HELD SATISFACTORILY.—(1)’’;

(2) in subsection (b), by inserting ‘‘RETIREMENT IN NEXT

LOWER GRADE.—’’ after ‘‘(b)’’; and

(3) in subsection (d), as added effective October 1, 1996,

by section 1641 of the Reserve Officer Personnel Management

Act (title XVI of Public Law 103–337; 108 Stat. 2968), by

striking out ‘‘(d)(1)’’ and inserting in lieu thereof ‘‘(d) RESERVE

OFFICERS.—(1)’’.

10 USC 1370

note.

110 STAT. 294 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 503. WEARING OF INSIGNIA FOR HIGHER GRADE BEFORE PROMOTION.

(a) AUTHORITY AND LIMITATIONS.—(1) Chapter 45 of title 10,

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

new section:

‘‘§ 777. Wearing of insignia of higher grade before promotion (frocking): authority; restrictions

‘‘(a) AUTHORITY.—An officer who has been selected for promotion to the next higher grade may be authorized, under regulations and policies of the Department of Defense and subject to

subsection (b), to wear the insignia for that next higher grade.

An officer who is so authorized to wear the insignia of the next

higher grade is said to be ‘frocked’ to that grade.

‘‘(b) RESTRICTIONS.—An officer may not be authorized to wear

the insignia for a grade as described in subsection (a) unless—

‘‘(1) the Senate has given its advice and consent to the

appointment of the officer to that grade; and

‘‘(2) the officer is serving in, or has received orders to

serve in, a position for which that grade is authorized.

‘‘(c) BENEFITS NOT TO BE CONSTRUED AS ACCRUING.—(1)

Authority provided to an officer as described in subsection (a) to

wear the insignia of the next higher grade may not be construed

as conferring authority for that officer to—

‘‘(A) be paid the rate of pay provided for an officer in

that grade having the same number of years of service as

that officer; or

‘‘(B) assume any legal authority associated with that grade.

‘‘(2) The period for which an officer wears the insignia of the

next higher grade under such authority may not be taken into

account for any of the following purposes:

‘‘(A) Seniority in that grade.

‘‘(B) Time of service in that grade.

‘‘(d) LIMITATION ON NUMBER OF OFFICERS FROCKED TO SPECIFIED GRADES.—(1) The total number of colonels and Navy captains

on the active-duty list who are authorized as described in subsection

(a) to wear the insignia for the grade of brigadier general or rear

admiral (lower half), as the case may be, may not exceed the

following:

‘‘(A) During fiscal years 1996 and 1997, 75.

‘‘(B) During fiscal year 1998, 55.

‘‘(C) After fiscal year 1998, 35.

‘‘(2) The number of officers of an armed force on the activeduty list who are authorized as described in subsection (a) to

wear the insignia for a grade to which a limitation on total number

applies under section 523(a) of this title for a fiscal year may

not exceed 1 percent of the total number provided for the officers

in that grade in that armed force in the administration of the

limitation under that section for that fiscal year.’’.

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

is amended by adding at the end the following new item:

‘‘777. Wearing of insignia of higher grade before promotion (frocking): authority; restrictions.’’.

(b) TEMPORARY VARIATION OF LIMITATIONS ON NUMBERS OF

FROCKED OFFICERS.—In the administration of section 777(d)(2) of

title 10, United States Code (as added by subsection (a)), the percent

10 USC 777 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 295

limitation applied under that section for fiscal year 1996 shall

be 2 percent (instead of 1 percent). (c) REPORT.—Not later than September 1, 1996, the Secretary of Defense shall submit to Congress a report providing the assessment of the Secretary on the practice, known as ‘‘frocking’’, of

authorizing an officer who has been selected for promotion to the

next higher grade to wear the insignia for that next higher grade.

The report shall include the Secretary’s assessment of the appropriate number, if any, of colonels and Navy captains to be eligible

under section 777(d)(1) of title 10, United States Code (as added

by subsection (a)), to wear the insignia for the grade of brigadier

general or rear admiral (lower half).

SEC. 504. 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. Any such

deferral shall be made on a case-by-case basis considering the

circumstances of the case of the particular officer concerned. The

authority of the Secretary to grant such a deferral may not be

delegated.’’. (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. Any such deferral shall be made on a case-bycase basis considering the circumstances of the case of the particular

officer concerned. The authority of the Secretary to grant such

a deferral may not be delegated.’’.

SEC. 505. 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 that percentage of the programmed manpower structure

for officers for the active component of the Army that is provided

for in the most recent Defense Planning Guidance issued by the

Secretary of Defense. ‘‘(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 requireVerDate 07-FEB-96 03:34 Mar 05, 1996 Jkt 029139 PO 00106 Frm 00111 Fmt 6580 Sfmt 6581 PUBL106.104 apps06
110 STAT. 296 PUBLIC LAW 104–106—FEB. 10, 1996

ments 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 thencurrent 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 to enable the Army to meet the requirement specified

in section 3201 of title 10, United States Code, as added by subsection (a).

SEC. 506. AUTHORITY FOR MEDICAL DEPARTMENT OFFICERS OTHER

THAN PHYSICIANS TO BE APPOINTED AS SURGEON GENERAL.

(a) SURGEON GENERAL OF THE ARMY.—The third sentence of

section 3036(b) of title 10, United States Code, is amended by

inserting after ‘‘The Surgeon General’’ the following: ‘‘may be

appointed from officers in any corps of the Army Medical Department and’’.

(b) SURGEON GENERAL OF THE NAVY.—Section 5137 of such

title is amended—

(1) in the first sentence of subsection (a), by striking out ‘‘in the Medical Corps’’ and inserting in lieu thereof ‘‘in any

corps of the Navy Medical Department’’; and (2) in subsection (b), by striking out ‘‘in the Medical Corps’’ and inserting in lieu thereof ‘‘who is qualified to be the Chief

of the Bureau of Medicine and Surgery’’.

(c) SURGEON GENERAL OF THE AIR FORCE.—The first sentence

of section 8036 of such title is amended by striking out ‘‘designated

as medical officers under section 8067(a) of this title’’ and inserting

in lieu thereof ‘‘in the Air Force medical department’’.

SEC. 507. DEPUTY JUDGE ADVOCATE GENERAL OF THE AIR FORCE.

(a) TENURE AND GRADE OF DEPUTY JUDGE ADVOCATE GEN- ERAL.—Section 8037(d)(1) of such title is amended—

(1) in the second sentence, by striking out ‘‘two years’’ and inserting in lieu thereof ‘‘four years’’; and (2) by striking out the last sentence and inserting in lieu thereof the following: ‘‘An officer appointed as Deputy Judge

Advocate General who holds a lower regular grade shall be

appointed in the regular grade of major general.’’.

(b) EFFECTIVE DATE.—The amendments made by subsection (a) apply to any appointment to the position of Deputy Judge

Advocate General of the Air Force that is made after the date

of the enactment of this Act.

SEC. 508. AUTHORITY FOR TEMPORARY PROMOTIONS FOR CERTAIN

NAVY LIEUTENANTS WITH CRITICAL SKILLS.

(a) EXTENSION OF AUTHORITY.—Subsection (f) of section 5721

of title 10, United States Code, is amended by striking out ‘‘September 30, 1995’’ and inserting in lieu thereof ‘‘September 30, 1996’’. (b) LIMITATION.—Such section is further amended—

(1) by redesignating subsection (f), as amended by subsection (a), as subsection (g); and

10 USC 8037

note.

10 USC 3201

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 297

(2) by inserting after subsection (e) the following new subsection (f):

‘‘(f) LIMITATION ON NUMBER OF ELIGIBLE POSITIONS.—(1) An

appointment under this section may only be made for service in

a position designated by the Secretary of the Navy for purposes

of this section. The number of positions so designated may not

exceed 325.

‘‘(2) Whenever the Secretary makes a change to the positions

designated under paragraph (1), the Secretary shall submit notice

of the change in writing to Congress.’’.

(c) REPORT.—Not later than April 1, 1996, the Secretary of

Defense shall submit to Congress a report providing the Secretary’s

assessment of that continuing need for the promotion authority

under section 5721 of title 10, United States Code. The Secretary

shall include in the report the following:

(1) The nature and grade structure of the positions for

which such authority has been used.

(2) The cause or causes of the reported chronic shortages

of qualified personnel in the required grade to fill the positions

specified under paragraph (1).

(3) The reasons for the perceived inadequacy of the officer

promotion system (including ‘‘below-the-zone’’ selections) to provide sufficient officers in the required grade to fill those positions.

(4) The extent to which a bonus program or some other

program would be a more appropriate means of resolving the

reported chronic shortages in engineering positions.

(d) CLERICAL AMENDMENTS.—Section 5721 of title 10, United

States Code, is amended as follows:

(1) Subsection (a) is amended by inserting ‘‘PROMO

TION AUTHORITY FOR CERTAIN OFFICER WITH CRITICAL

SKILLS.—’’ after ‘‘(a)’’.

(2) Subsection (b) is amended by inserting ‘‘STATUS OF

OFFICERS APPOINTED.—’’ after ‘‘(b)’’.

(3) Subsection (c) is amended by inserting ‘‘BOARD RECOMMENDATION REQUIRED.—’’ after ‘‘(c)’’.

(4) Subsection (d) is amended by inserting ‘‘ACCEPTANCE

AND EFFECTIVE DATE OF APPOINTMENT.—’’ after ‘‘(d)’’.

(5) Subsection (e) is amended by inserting ‘‘TERMINATION

OF APPOINTMENT.—’’ after ‘‘(e)’’.

(6) Subsection (g), as redesignated by subsection (b)(1),

is amended by inserting ‘‘TERMINATION OF APPOINTMENT

AUTHORITY.—’’ after ‘‘(g)’’.

(e) EFFECTIVE DATE.—Subsection (f) of section 5721 of title

10, United States Code, as added by subsection (b)(2), shall take

effect at the end of the 30-day period beginning on the date of

the enactment of this Act and shall apply to any appointment

under that section after the end of such period.

SEC. 509. RETIREMENT FOR YEARS OF SERVICE OF DIRECTORS OF

ADMISSIONS OF MILITARY AND AIR FORCE ACADEMIES.

(a) MILITARY ACADEMY.—(1) Section 3920 of title 10, United

States Code, is amended to read as follows:

10 USC 5721

note.

Notice.

110 STAT. 298 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘§ 3920. More than thirty years: permanent professors and

the Director of Admissions of the United States

Military Academy

‘‘(a) The Secretary of the Army may retire an officer specified

in subsection (b) who has more than 30 years of service as a

commissioned officer.

‘‘(b) Subsection (a) applies in the case of the following officers:

‘‘(1) Any permanent professor of the United States Military

Academy.

‘‘(2) The Director of Admissions of the United States Military Academy.’’.

(2) The item relating to such section in the table of sections

at the beginning of chapter 367 of such title is amended to read

as follows:

‘‘3920. More than thirty years: permanent professors and the Director of Admissions

of the United States Military Academy.’’.

(b) AIR FORCE ACADEMY.—(1) Section 8920 of title 10, United

States Code, is amended to read as follows:

‘‘§ 8920. More than thirty years: permanent professors and

the Director of Admissions of the United States

Air Force Academy

‘‘(a) The Secretary of the Air Force may retire an officer specified in subsection (b) who has more than 30 years of service as

a commissioned officer.

‘‘(b) Subsection (a) applies in the case of the following officers:

‘‘(1) Any permanent professor of the United States Air

Force Academy.

‘‘(2) The Director of Admissions of the United States Air

Force Academy.’’.

(2) The item relating to such section in the table of sections

at the beginning of chapter 867 of such title is amended to read

as follows:

‘‘8920. More than thirty years: permanent professors and the Director of Admissions

of the United States Air Force Academy.’’.

Subtitle B—Matters Relating to Reserve

Components

SEC. 511. EXTENSION OF CERTAIN RESERVE OFFICER MANAGEMENT

AUTHORITIES.

(a) GRADE DETERMINATION AUTHORITY FOR CERTAIN RESERVE

MEDICAL OFFICERS.—Sections 3359(b) and 8359(b) of title 10,

United States Code, are each amended by striking out ‘‘September

30, 1995’’ and inserting in lieu thereof ‘‘September 30, 1996’’.

(b) PROMOTION AUTHORITY FOR CERTAIN RESERVE OFFICERS

SERVING ON ACTIVE DUTY.—Sections 3380(d) and 8380(d) of title

10, United States Code, are each 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) is amended by striking

out ‘‘September 30, 1995’’ and inserting in lieu thereof ‘‘September

30, 1996’’.

10 USC 3360

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 299

SEC. 512. 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 MOBILIZATION

INCOME INSURANCE

‘‘Sec.

‘‘12521. Definitions.

‘‘12522. Establishment of insurance program.

‘‘12523. Risk insured.

‘‘12524. Enrollment and election of benefits.

‘‘12525. Benefit amounts.

‘‘12526. Premiums.

‘‘12527. Payment of premiums.

‘‘12528. Reserve Mobilization Income Insurance Fund.

‘‘12529. Board of Actuaries.

‘‘12530. Payment of benefits.

‘‘12531. Purchase of insurance.

‘‘12532. Termination for nonpayment of premiums; forfeiture.

‘‘§ 12521. Definitions

‘‘In this chapter: ‘‘(1) The term ‘insurance program’ means the Ready Reserve Mobilization Income Insurance Program established under section 12522 of this title.

‘‘(2) The term ‘covered service’ means active duty performed by a member of a reserve component under an order to active

duty for a period of more than 30 days which specifies that

the member’s service—

‘‘(A) is in support of an operational mission for which

members of the reserve components have been ordered

to active duty without their consent; or ‘‘(B) is in support of forces activated during a period of war declared by Congress or a period of national emergency declared by the President or Congress.

‘‘(3) The term ‘insured member’ means a member of the

Ready Reserve who is enrolled for coverage under the insurance

program in accordance with section 12524 of this title. ‘‘(4) The term ‘Secretary’ means the Secretary of Defense.

‘‘(5) The term ‘Department’ means the Department of

Defense.

‘‘(6) The term ‘Board of Actuaries’ means the Department

of Defense Education Benefits Board of Actuaries referred to

in section 2006(e)(1) of this title.

‘‘(7) The term ‘Fund’ means the Reserve Mobilization

Income Insurance Fund established by section 12528(a) of this

title.

‘‘§ 12522. Establishment of insurance program

‘‘(a) ESTABLISHMENT.—The Secretary shall establish for mem- bers of the Ready Reserve (including the Coast Guard Reserve)

an insurance program to be known as the ‘Ready Reserve Mobilization Income Insurance Program’. ‘‘(b) ADMINISTRATION.—The insurance program shall be

administered by the Secretary. The Secretary may prescribe in

regulations such rules, procedures, and policies as the Secretary

considers necessary or appropriate to carry out the insurance program.

110 STAT. 300 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(c) AGREEMENT WITH SECRETARY OF TRANSPORTATION.—The

Secretary and the Secretary of Transportation shall enter into an

agreement with respect to the administration of the insurance

program for the Coast Guard Reserve.

‘‘§ 12523. Risk insured

‘‘(a) IN GENERAL.—The insurance program shall insure members of the Ready Reserve against the risk of being ordered into

covered service.

‘‘(b) ENTITLEMENT TO BENEFITS.—(1) An insured member

ordered into covered service shall be entitled to payment of a

benefit for each month (and fraction thereof) of covered service

that exceeds 30 days of covered service, except that no member

may be paid under the insurance program for more than 12 months

of covered service served during any period of 18 consecutive

months.

‘‘(2) Payment shall be based solely on the insured status of

a member and on the period of covered service served by the

member. Proof of loss of income or of expenses incurred as a

result of covered service may not be required.

‘‘§ 12524. Enrollment and election of benefits

‘‘(a) ENROLLMENT.—(1) Except as provided in subsection (f),

upon first becoming a member of the Ready Reserve, a member

shall be automatically enrolled for coverage under the insurance

program. An automatic enrollment of a member shall be void if

within 60 days after first becoming a member of the Ready Reserve

the member declines insurance under the program in accordance

with the regulations prescribed by the Secretary.

‘‘(2) Promptly after the insurance program is established, the

Secretary shall offer to members of the reserve components who

are then members of the Ready Reserve (other than members

ineligible under subsection (f)) an opportunity to enroll for coverage

under the insurance program. A member who fails to enroll within

60 days after being offered the opportunity shall be considered

as having declined to be insured under the program.

‘‘(3) A member of the Ready Reserve ineligible to enroll under

subsection (f) shall be afforded an opportunity to enroll upon being

released from active duty in accordance with regulations prescribed

by the Secretary if the member has not previously had the opportunity to be enrolled under paragraph (1) or (2). A member who

fails to enroll within 60 days after being afforded that opportunity

shall be considered as having declined to be insured under the

program.

‘‘(b) ELECTION OF BENEFIT AMOUNT.—The amount of a member’s monthly benefit under an enrollment shall be the basic benefit

under subsection (a) of section 12525 of this title unless the member

elects a different benefit under subsection (b) of such section within

60 days after first becoming a member of the Ready Reserve or

within 60 days after being offered the opportunity to enroll, as

the case may be.

‘‘(c) ELECTIONS IRREVOCABLE.—(1) An election to decline insurance pursuant to paragraph (1) or (2) of subsection (a) is irrevocable.

‘‘(2) The amount of coverage may not be increased after enrollment.

‘‘(d) ELECTION TO TERMINATE.—A member may terminate an

enrollment at any time.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 301

‘‘(e) INFORMATION TO BE FURNISHED.—The Secretary shall ensure that members referred to in subsection (a) are given a

written explanation of the insurance program and are advised that

they have the right to decline to be insured and, if not declined,

to elect coverage for a reduced benefit or an enhanced benefit

under subsection (b).

‘‘(f) MEMBERS INELIGIBLE TO ENROLL.—Members of the Ready

Reserve serving on active duty (or full-time National Guard duty)

are not eligible to enroll for coverage under the insurance program.

The Secretary may define any additional category of members of

the Ready Reserve to be excluded from eligibility to purchase insurance under this chapter.

‘‘§ 12525. Benefit amounts

‘‘(a) BASIC BENEFIT.—The basic benefit for an insured member

under the insurance program is $1,000 per month (as adjusted

under subsection (d)).

‘‘(b) REDUCED AND ENHANCED BENEFITS.—Under the regulations prescribed by the Secretary, a person enrolled for coverage

under the insurance program may elect—

‘‘(1) a reduced coverage benefit equal to one-half the amount

of the basic benefit; or

‘‘(2) an enhanced benefit in the amount of $1,500, $2,000,

$2,500, $3,000, $3,500, $4,000, $4,500, or $5,000 per month

(as adjusted under subsection (d)).

‘‘(c) AMOUNT FOR PARTIAL MONTH.—The amount of insurance

payable to an insured member for any period of covered service

that is less than one month shall be determined by multiplying

1⁄30 of the monthly benefit rate for the member by the number

of days of the covered service served by the member during such

period.

‘‘(d) ADJUSTMENT OF AMOUNTS.—(1) The Secretary shall determine annually the effect of inflation on benefits and shall adjust

the amounts set forth in subsections (a) and (b)(2) to maintain

the constant dollar value of the benefit.

‘‘(2) If the amount of a benefit as adjusted under paragraph

(1) is not evenly divisible by $10, the amount shall be rounded

to the nearest multiple of $10, except that an amount evenly divisible by $5 but not by $10 shall be rounded to the next lower

amount that is evenly divisible by $10.

‘‘§ 12526. Premiums

‘‘(a) ESTABLISHMENT OF RATES.—(1) The Secretary, in consultation with the Board of Actuaries, shall prescribe the premium

rates for insurance under the insurance program.

‘‘(2) The Secretary shall prescribe a fixed premium rate for

each $1,000 of monthly insurance benefit. The premium amount

shall be equal to the share of the cost attributable to insuring

the member and shall be the same for all members of the Ready

Reserve who are insured under the insurance program for the

same benefit amount. The Secretary shall prescribe the rate on

the basis of the best available estimate of risk and financial exposure, levels of subscription by members, and other relevant factors.

‘‘(b) LEVEL PREMIUMS.—The premium rate prescribed for the

first year of insurance coverage of an insured member shall be

continued without change for subsequent years of insurance coverage, except that the Secretary, after consultation with the Board

110 STAT. 302 PUBLIC LAW 104–106—FEB. 10, 1996

of Actuaries, may adjust the premium rate in order to fund inflationadjusted benefit increases on an actuarially sound basis.

‘‘§ 12527. Payment of premiums

‘‘(a) METHODS OF PAYMENT.—(1) The monthly premium for

coverage of a member under the insurance program shall be

deducted and withheld from the insured member’s pay for each

month.

‘‘(2) An insured member who does not receive pay on a monthly

basis shall pay the Secretary directly the premium amount

applicable for the level of benefits for which the member is insured.

‘‘(b) ADVANCE PAY FOR PREMIUM.—The Secretary concerned

may advance to an insured member the amount equal to the first

insurance premium payment due under this chapter. The advance

may be paid out of appropriations for military pay. An advance

to a member shall be collected from the member either by deducting

and withholding the amount from basic pay payable for the member

or by collecting it from the member directly. No disbursing or

certifying officer shall be responsible for any loss resulting from

an advance under this subsection.

‘‘(c) PREMIUMS TO BE DEPOSITED IN FUND.—Premium amounts

deducted and withheld from the pay of insured members and premium amounts paid directly to the Secretary shall be credited

monthly to the Fund.

‘‘§ 12528. Reserve Mobilization Income Insurance Fund

‘‘(a) ESTABLISHMENT.—There is established on the books of the

Treasury a fund to be known as the ‘Reserve Mobilization 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 the liabilities of the insurance program

on an actuarially sound basis.

‘‘(b) ASSETS OF FUND.—There shall be deposited into the Fund

the following:

‘‘(1) Premiums paid under section 12527 of this title.

‘‘(2) Any amount appropriated to the Fund.

‘‘(3) Any return on investment of the assets of the Fund.

‘‘(c) AVAILABILITY.—Amounts in the Fund shall be available

for paying insurance benefits under the insurance program.

‘‘(d) 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 the Fund.

‘‘(e) ANNUAL ACCOUNTING.—At the beginning of each fiscal year,

the Secretary, in consultation with the Board of Actuaries and

the Secretary of the Treasury, shall determine the following:

‘‘(1) The projected amount of the premiums to be collected,

investment earnings to be received, and any transfers or appropriations to be made for the Fund for that fiscal year.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 303

‘‘(2) The amount for that fiscal year of any cumulative unfunded liability (including any negative amount or any gain

to the Fund) resulting from payments of benefits. ‘‘(3) The amount for that fiscal year (including any negative

amount) of any cumulative actuarial gain or loss to the Fund.

‘‘§ 12529. Board of Actuaries

‘‘(a) ACTUARIAL RESPONSIBILITY.—The Board of Actuaries shall

have the actuarial responsibility for the insurance program.

‘‘(b) VALUATIONS AND PREMIUM RECOMMENDATIONS.—The Board

of Actuaries shall carry out periodic actuarial valuations of the

benefits under the insurance program and determine a premium

rate methodology for the Secretary to use in setting premium rates

for the insurance program. The Board shall conduct the first valuation and determine a premium rate methodology not later than

six months after the insurance program is established.

‘‘(c) EFFECTS OF CHANGED BENEFITS.—If at the time of any

actuarial valuation under subsection (b) there has been a change

in benefits under the insurance 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 of Actuaries shall determine a premium rate methodology, and recommend to the Secretary a premium schedule, for

the liquidation of any liability (or actuarial gain to the Fund)

resulting from 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.

‘‘(d) ACTUARIAL GAINS OR LOSSES.—If at the time of any such

valuation the Board of Actuaries determines that there has been

an actuarial gain or loss to the Fund as a result of changes in

actuarial assumptions since the last valuation or as a result of

any differences, between actual and expected experience since the

last valuation, the Board shall recommend to the Secretary a premium rate schedule for the amortization of the cumulative gain

or loss to the Fund resulting from such changes in assumptions

and any previous such changes in assumptions or from the differences in actual and expected experience, respectively, through

an increase or decrease in the payments that would otherwise

be made to the Fund.

‘‘(e) INSUFFICIENT ASSETS.—If at any time liabilities of the

Fund exceed assets of the Fund as a result of members of the

Ready Reserve being ordered to active duty as described in section

12521(2) of this title, and funds are unavailable to pay benefits

completely, the Secretary shall request the President to submit

to Congress a request for a special appropriation to cover the

unfunded liability. If appropriations are not made to cover an

unfunded liability in any fiscal year, the Secretary shall reduce

the amount of the benefits paid under the insurance program to

a total amount that does not exceed the assets of the Fund expected

to accrue by the end of such fiscal year. Benefits that cannot

be paid because of such a reduction shall be deferred and may

be paid only after and to the extent that additional funds become

available.

‘‘(f) DEFINITION OF PRESENT VALUE.—The Board of Actuaries

shall define the term ‘present value’ for purposes of this subsection.

110 STAT. 304 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘§ 12530. Payment of benefits

‘‘(a) COMMENCEMENT OF PAYMENT.—An insured member 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

beginning not later than one month after the 30th day of covered

service.

‘‘(b) METHOD OF PAYMENT.—The Secretary shall prescribe in the regulations the manner in which payments shall be made

to the member or to a person designated in accordance with subsection (c).

‘‘(c) DESIGNATED RECIPIENTS.—(1) A member may designate in writing another person (including a spouse, parent, or other

person with an insurable interest, as determined in accordance

with the regulations prescribed by the Secretary) to receive payments of insurance benefits under the insurance program. ‘‘(2) A member may direct that payments of insurance benefits for a person designated under paragraph (1) be deposited with

a bank or other financial institution to the credit of the designated

person. ‘‘(d) RECIPIENTS IN EVENT OF DEATH OF INSURED MEMBER.— Any insurance payable under the insurance program on account

of a deceased member’s period of covered service shall be paid,

upon the establishment of a valid claim, to the beneficiary or

beneficiaries which the deceased member 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.

‘‘§ 12531. Purchase of insurance

‘‘(a) PURCHASE AUTHORIZED.—The Secretary may, instead of or in addition to underwriting the insurance program through the

Fund, purchase from one or more insurance companies a policy

or policies of group insurance in order to provide the benefits

required under this chapter. The Secretary may waive any requirement for full and open competition in order to purchase an insurance

policy under this subsection. ‘‘(b) ELIGIBLE INSURERS.—In order to be eligible to sell insur- ance to the Secretary for purposes of subsection (a), an 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 one

percent of the total amount of insurance that all such insurance

companies have in effect in the United States.

‘‘(c) ADMINISTRATIVE PROVISIONS.—(1) An insurance company that issues a policy for purposes of subsection (a) shall establish

an administrative office at a place and under a name designated

by the Secretary. ‘‘(2) For the purposes of carrying out this chapter, the Secretary

may use the facilities and services of any insurance company issuing

any policy for purposes of subsection (a), may designate one such

company as the representative of the other companies for such

purposes, and may contract to pay a reasonable fee to the designated

company for its services. ‘‘(d) REINSURANCE.—The Secretary shall arrange with each

insurance company issuing any policy for purposes of subsection

(a) to reinsure, under conditions approved by the Secretary, portions

Regulations.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 305

of the total amount of the insurance under such policy or policies

with such other insurance companies (which meet qualifying criteria

prescribed by the Secretary) as may elect to participate in such

reinsurance.

‘‘(e) TERMINATION.—The Secretary may at any time terminate

any policy purchased under this section.

‘‘§ 12532. Termination for nonpayment of premiums; forfeiture

‘‘(a) TERMINATION FOR NONPAYMENT.—The coverage of a member under the insurance program shall terminate without prior

notice upon a failure of the member to make required monthly

payments of premiums for two consecutive months. The Secretary

may provide in the regulations for reinstatement of insurance coverage terminated under this subsection.

‘‘(b) FORFEITURE.—Any person convicted 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 Mobilization Income Insurance ........................................12521’’.

(b) EFFECTIVE DATE.—The insurance program provided for in

chapter 1214 of title 10, United States Code, as added by subsection

(a), and the requirement for deductions and contributions for that

program shall take effect on September 30, 1996, or on any earlier

date declared by the Secretary and published in the Federal Register.

SEC. 513. 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 minimum 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) shall be 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.

10 USC 115 note.

10 USC 115 note.

Federal Register,

publication.

10 USC 12521

note.

110 STAT. 306 PUBLIC LAW 104–106—FEB. 10, 1996

(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), seek to 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) Military technician authorizations and personnel in highpriority 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.

‘‘(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

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 307

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 the annual funding required to support those positions for the

purpose of creating new positions or filling existing positions in

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. 514. 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 enlistments as described in section 8020 of

the Department of Defense Appropriations Act, 1994 (Public Law

103–139). The Secretary shall enlist not fewer than 1,000 new

10 USC 10105

note.

110 STAT. 308 PUBLIC LAW 104–106—FEB. 10, 1996

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’’; and

(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. 515. 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 Sec10 USC 10105

note.

10 USC 10105

note.

10 USC 10105

note.

Effective date.

10 USC 10105

note.

10 USC 10105

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 309

retary) 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 para- graphs (1), (2), (3), and (4) and inserting in lieu thereof ‘‘of

that unit’’.

SEC. 516. LEAVE FOR MEMBERS OF RESERVE COMPONENTS

PERFORMING PUBLIC SAFETY DUTY.

(a) ELECTION OF LEAVE TO BE CHARGED.—Subsection (b) of

section 6323 of title 5, United States Code, is amended by adding

at the end the following: ‘‘Upon the request of an employee, the

period for which an employee is absent to perform service described

in paragraph (2) may be charged to the employee’s accrued annual

leave or to compensatory time available to the employee instead

of being charged as leave to which the employee is entitled under

this subsection. The period of absence may not be charged to sick

leave.’’.

(b) PAY FOR PERIOD OF ABSENCE.—Section 5519 of such title

is amended by striking out ‘‘entitled to leave’’ and inserting in

lieu thereof ‘‘granted military leave’’.

SEC. 517. DEPARTMENT OF DEFENSE FUNDING FOR NATIONAL

GUARD PARTICIPATION IN JOINT DISASTER AND EMERGENCY ASSISTANCE EXERCISES.

Section 503(a) of title 32, United States Code, is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

(2) by adding at the end the following:

‘‘(2) Paragraph (1) includes authority to provide for participation

of the National Guard in conjunction with the Army or the Air

Force, or both, in joint exercises for instruction to prepare the

National Guard for response to civil emergencies and disasters.’’.

Subtitle C—Decorations and Awards

SEC. 521. AWARD OF PURPLE HEART TO PERSONS WOUNDED WHILE

HELD AS PRISONERS OF WAR BEFORE APRIL 25, 1962.

(a) AWARD OF PURPLE HEART.—For purposes of the award

of the Purple Heart, the Secretary concerned (as defined in section

101 of title 10, United States Code) shall treat a former prisoner

of war who was wounded before April 25, 1962, while held as

a prisoner of war (or while being taken captive) in the same manner

as a former prisoner of war who is wounded on or after that

date while held as a prisoner of war (or while being taken captive).

(b) STANDARDS FOR AWARD.—An award of the Purple Heart

under subsection (a) shall be made in accordance with the standards

in effect on the date of the enactment of this Act for the award

of the Purple Heart to persons wounded on or after April 25,

1962.

(c) ELIGIBLE FORMER PRISONERS OF WAR.—A person shall be

considered to be a former prisoner of war for purposes of this

10 USC 1129

note.

110 STAT. 310 PUBLIC LAW 104–106—FEB. 10, 1996

section if the person is eligible for the prisoner-of-war medal under

section 1128 of title 10, United States Code.

SEC. 522. AUTHORITY TO AWARD DECORATIONS RECOGNIZING ACTS

OF VALOR PERFORMED IN COMBAT DURING THE VIETNAM

CONFLICT.

(a) FINDINGS.—Congress makes the following findings:

(1) The Ia Drang Valley (Pleiku) campaign, carried out

by the Armed Forces in the Ia Drang Valley of Vietnam from

October 23, 1965, to November 26, 1965, is illustrative of the

many battles during the Vietnam conflict which pitted forces

of the United States against North Vietnamese Army regulars

and Viet Cong in vicious fighting.

(2) Accounts of those battles that have been published

since the end of that conflict authoritatively document numerous and repeated acts of extraordinary heroism, sacrifice, and

bravery on the part of members of the Armed Forces, many

of which have never been officially recognized.

(3) In some of those battles, United States military units

suffered substantial losses, with some units sustaining casualties in excess of 50 percent.

(4) The incidence of heavy casualties throughout the Vietnam conflict inhibited the timely collection of comprehensive

and detailed information to support recommendations for

awards recognizing acts of heroism, sacrifice, and bravery.

(5) Subsequent requests to the Secretaries of the military

departments for review of award recommendations for such

acts have been denied because of restrictions in law and regulations that require timely filing of such recommendations and

documented justification.

(6) Acts of heroism, sacrifice, and bravery performed in

combat by members of the Armed Forces deserve appropriate

and timely recognition by the people of the United States.

(7) It is appropriate to recognize acts of heroism, sacrifice,

or bravery that are belatedly, but properly, documented by

persons who witnessed those acts.

(b) WAIVER OF TIME LIMITATIONS FOR RECOMMENDATIONS FOR

AWARDS.—(1) Any decoration covered by paragraph (2) may be

awarded, without regard to any time limit imposed by law or

regulation for a recommendation for such award to any person

for actions by that person in the Southeast Asia theater of operations while serving on active duty during the Vietnam era. The

waiver of time limitations under this paragraph applies only in

the case of awards for acts of valor for which a request for consideration is submitted under subsection (c).

(2) Paragraph (1) applies to any decoration (including any

device in lieu of a decoration) that, during or after the Vietnam

era and before the date of the enactment of this Act, was authorized

by law or under regulations of the Department of Defense or the

military department concerned to be awarded to members of the

Armed Forces for acts of valor.

(c) REVIEW OF REQUESTS FOR CONSIDERATION OF AWARDS.—

(1) The Secretary of each military department shall review each

request for consideration of award of a decoration described in

subsection (b) that are received by the Secretary during the oneyear period beginning on the date of enactment of this Act.

10 USC 1130

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 311

(2) The Secretaries shall begin the review within 30 days after

the date of the enactment of this Act and shall complete the review

of each request for consideration not later than one year after

the date on which the request is received.

(3) The Secretary may use the same process for carrying out

the review as the Secretary uses for reviewing other recommendations for award of decorations to members of the Armed Forces

under the Secretary’s jurisdiction for valorous acts.

(d) REPORT.—(1) Upon completing the review of each such

request under subsection (c), the Secretary shall submit a report

on the review to the Committee on Armed Services of the Senate

and the Committee on National Security of the House of Representatives.

(2) The report shall include, with respect to each request for

consideration received, the following information:

(A) A summary of the request for consideration.

(B) The findings resulting from the review.

(C) The final action taken on the request for consideration.

(e) DEFINITION.—For purposes of this section:

(1) The term ‘‘Vietnam era’’ has the meaning given that

term in section 101 of title 38, United States Code.

(2) The term ‘‘active duty’’ has the meaning given that

term in section 101 of title 10, United States Code.

SEC. 523. MILITARY INTELLIGENCE PERSONNEL PREVENTED BY

SECRECY FROM BEING CONSIDERED FOR DECORATIONS

AND AWARDS.

(a) WAIVER ON RESTRICTIONS OF AWARDS.—(1) Any decoration

covered by paragraph (2) may be awarded, without regard to any

time limit imposed by law or regulation for a recommendation

for such award, to any person for an act, achievement, or service

that the person performed in carrying out military intelligence

duties during the period beginning on January 1, 1940, and ending

on December 31, 1990.

(2) Paragraph (1) applies to any decoration (including any

device in lieu of a decoration) that, during or after the period

described in paragraph (1) and before the date of the enactment

of this Act, was authorized by law or under the regulations of

the Department of Defense or the military department concerned

to be awarded to a person for an act, achievement, or service

performed by that person while serving on active duty.

(b) REVIEW OF REQUESTS FOR CONSIDERATION OF AWARDS.—

(1) The Secretary of each military department shall review each

request for consideration of award of a decoration described in

subsection (a) that is received by the Secretary during the oneyear period beginning on the date of the enactment of this Act.

(2) The Secretaries shall begin the review within 30 days after

the date of the enactment of this Act and shall complete the review

of each request for consideration not later than one year after

the date on which the request is received.

(3) The Secretary may use the same process for carrying out

the review as the Secretary uses for reviewing other recommendations for awarding decorations to members of the Armed Forces

under the Secretary’s jurisdiction for acts, achievements, or service.

(c) REPORT.—(1) Upon completing the review of each such

request under subsection (b), the Secretary shall submit a report

on the review to the Committee on Armed Services of the Senate

10 USC 1130

note.

110 STAT. 312 PUBLIC LAW 104–106—FEB. 10, 1996

and the Committee on National Security of the House of Representatives.

(2) The report shall include, with respect to each request for

consideration reviewed, the following information:

(A) A summary of the request for consideration.

(B) The findings resulting from the review.

(C) The final action taken on the request for consideration.

(D) Administrative or legislative recommendations to

improve award procedures with respect to military intelligence

personnel.

(d) DEFINITION.—For purposes of this section, the term ‘‘active

duty’’ has the meaning given such term in section 101 of title

10, United States Code.

SEC. 524. REVIEW REGARDING UPGRADING OF DISTINGUISHED-SERVICE CROSSES AND NAVY CROSSES AWARDED TO ASIANAMERICANS AND NATIVE AMERICAN PACIFIC ISLANDERS

FOR WORLD WAR II SERVICE.

(a) REVIEW REQUIRED.—(1) The Secretary of the Army shall

review the records relating to each award of the DistinguishedService Cross, and the Secretary of the Navy shall review the

records relating to each award of the Navy Cross, that was awarded

to an Asian-American or a Native American Pacific Islander with

respect to service as a member of the Armed Forces during World

War II. The purpose of the review shall be to determine whether

any such award should be upgraded to the Medal of Honor.

(2) If the Secretary concerned determines, based upon the

review under paragraph (1), that such an upgrade is appropriate

in the case of any person, the Secretary shall submit to the President a recommendation that the President award the Medal of

Honor to that person.

(b) WAIVER OF TIME LIMITATIONS.—A Medal of Honor may

be awarded to a person referred to in subsection (a) in accordance

with a recommendation of the Secretary concerned under that subsection without regard to—

(1) section 3744, 6248, or 8744 of title 10, United States

Code, as applicable; and

(2) any regulation or other administrative restriction on—

(A) the time for awarding the Medal of Honor; or

(B) the awarding of the Medal of Honor for service

for which a Distinguished-Service Cross or Navy Cross

has been awarded.

(c) DEFINITION.—For purposes of this section, the term ‘‘Native

American Pacific Islander’’ means a Native Hawaiian and any other

Native American Pacific Islander within the meaning of the Native

American Programs Act of 1974 (42 U.S.C. 2991 et seq.).

SEC. 525. 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.

10 USC 1130

note.

Records.

10 USC 3741

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 313

(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. 526. PROCEDURE FOR CONSIDERATION OF MILITARY DECORATIONS NOT PREVIOUSLY SUBMITTED IN TIMELY FASHION.

(a) IN GENERAL.—Chapter 57 of title 10, United States Code,

is amended by adding at the end the following new section:

‘‘§ 1130. Consideration of proposals for decorations not previously submitted in timely fashion: procedures

for review and recommendation

‘‘(a) Upon request of a Member of Congress, the Secretary

concerned shall review a proposal for the award or presentation

of a decoration (or the upgrading of a decoration), either for an

individual or a unit, that is not otherwise authorized to be presented

or awarded due to limitations established by law or policy for

timely submission of a recommendation for such award or presentation. Based upon such review, the Secretary shall make a determination as to the merits of approving the award or presentation

of the decoration and the other determinations necessary to comply

with subsection (b).

‘‘(b) Upon making a determination under subsection (a) as

to the merits of approving the award or presentation of the decoration, the Secretary concerned shall submit to the Committee on

Armed Services of the Senate and the Committee on National

Security of the House of Representatives and to the requesting

member of Congress notice in writing of one of the following:

‘‘(1) The award or presentation of the decoration does not

warrant approval on the merits.

‘‘(2) The award or presentation of the decoration warrants

approval and a waiver by law of time restrictions prescribed

by law is recommended.

‘‘(3) The award or presentation of the decoration warrants

approval on the merits and has been approved as an exception

to policy.

‘‘(4) The award or presentation of the decoration warrants

approval on the merits, but a waiver of the time restrictions

prescribed by law or policy is not recommended.

A notice under paragraph (1) or (4) shall be accompanied by a

statement of the reasons for the decision of the Secretary.

‘‘(c) Determinations under this section regarding the award

or presentation of a decoration shall be made in accordance with

the same procedures that apply to the approval or disapproval

of the award or presentation of a decoration when a recommendation

for such award or presentation is submitted in a timely manner

as prescribed by law or regulation.

‘‘(d) In this section:

‘‘(1) The term ‘Member of Congress’ means—

‘‘(A) a Senator; or

110 STAT. 314 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(B) a Representative in, or a Delegate or Resident

Commissioner to, Congress.

‘‘(2) The term ‘decoration’ means any decoration or award that may be presented or awarded to a member or unit of

the armed forces.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the begin- ning of such chapter is amended by adding at the end the following

new item:

‘‘1130. Consideration of proposals for decorations not previously submitted in timely

fashion: procedures for review and recommendation.’’.

Subtitle D—Officer Education Programs

PART I—SERVICE ACADEMIES

SEC. 531. REVISION OF SERVICE OBLIGATION FOR GRADUATES OF

THE SERVICE ACADEMIES.

(a) MILITARY ACADEMY.—Section 4348(a)(2)(B) of title 10,

United States Code, is amended by striking out ‘‘six years’’ and

inserting in lieu thereof ‘‘five years’’. (b) NAVAL ACADEMY.—Section 6959(a)(2)(B) of such title is

amended by striking out ‘‘six years’’ and inserting in lieu thereof

‘‘five years’’. (c) AIR FORCE ACADEMY.—Section 9348(a)(2)(B) of such title

is amended by striking out ‘‘six years’’ and inserting in lieu thereof

‘‘five years’’. (d) REQUIREMENT FOR REVIEW AND REPORT.—(1) The Secretary of Defense shall review the effects that each of various periods

of obligated active duty service for graduates of the United States

Military Academy, the United States Naval Academy, and the

United States Air Force Academy would have on the number and

quality of the eligible and qualified applicants seeking appointment

to such academies.

(2) Not later than April 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 Secretary’s findings under the review, together with any

recommended legislation regarding the minimum periods of obligated active duty service for graduates of the United States Military

Academy, the United States Naval Academy, and the United States

Air Force Academy. (e) APPLICABILITY.—The amendments made by this section

apply to persons first admitted to the United States Military Academy, United States Naval Academy, and United States Air Force

Academy after December 31, 1991.

SEC. 532. 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 USC 4348

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 315

‘‘(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. 533. REPEAL OF REQUIREMENT FOR ATHLETIC DIRECTOR AND

NONAPPROPRIATED FUND ACCOUNT FOR THE ATHLETICS

PROGRAMS AT THE SERVICE ACADEMIES.

(a) UNITED STATES MILITARY ACADEMY.—(1) Section 4357 of

title 10, United States Code, is repealed. (2) The table of sections at the beginning of chapter 403 of such title is amended by striking out the item relating to section

4357.

(b) UNITED STATES NAVAL ACADEMY.—Section 556 of the

National Defense Authorization Act for Fiscal Year 1995 (Public

Law 103–337; 108 Stat. 2774) is amended by striking out subsections (b) and (e).

(c) UNITED STATES AIR FORCE ACADEMY.—(1) Section 9356 of

title 10, United States Code, is repealed. (2) The table of sections at the beginning of chapter 903 of such title is amended by striking out the item relating to section

9356.

SEC. 534. REPEAL OF REQUIREMENT FOR PROGRAM TO TEST

PRIVATIZATION OF SERVICE ACADEMY PREPARATORY

SCHOOLS.

Section 536 of the National Defense Authorization Act for Fiscal

Year 1994 (Public Law 103–160; 10 U.S.C. 4331 note) is repealed.

PART II—RESERVE OFFICER TRAINING CORPS

SEC. 541. 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 CON- TRACTS.—(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

10 USC 6975,

6975 note.

110 STAT. 316 PUBLIC LAW 104–106—FEB. 10, 1996

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 begin- ning 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. 542. 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. 543. 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

Federal Register,

publication.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 317

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 IMPLEMENTA- TION.—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. 544. DURATION OF FIELD TRAINING OR PRACTICE CRUISE

REQUIRED UNDER THE SENIOR RESERVE OFFICERS’

TRAINING CORPS PROGRAM.

Section 2104(b)(6)(A)(ii) of title 10, United States Code, is

amended by striking out ‘‘not less than six weeks’ duration’’ and

inserting in lieu thereof ‘‘a duration’’.

SEC. 545. 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 ASSIST- ANT COMMANDANT OF CADETS.—(1) Upon the request of a senior

military college, the Secretary of Defense may 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

110 STAT. 318 PUBLIC LAW 104–106—FEB. 10, 1996

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

may 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.’’.

Subtitle E—Miscellaneous Reviews,

Studies, and Reports

SEC. 551. REPORT CONCERNING APPROPRIATE FORUM FOR JUDICIAL

REVIEW OF DEPARTMENT OF DEFENSE PERSONNEL

ACTIONS.

(a) ESTABLISHMENT.—The Secretary of Defense shall establish

an advisory committee to consider issues relating to the appropriate

forum for judicial review of Department of Defense administrative

personnel actions.

(b) MEMBERSHIP.—(1) The committee shall be composed of five

members, who shall be appointed by the Secretary of Defense

after consultation with the Attorney General and the Chief Justice

of the United States.

(2) All members of the committee shall be appointed not later

than 30 days after the date of the enactment of this Act.

(c) DUTIES.—The committee shall review, and provide findings

and recommendations regarding, the following matters with respect

to judicial review of administrative personnel actions of the Department of Defense:

10 USC 113 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 319

(1) Whether the existing forum for such review through

the United States district courts provides appropriate and adequate review of such actions.

(2) Whether jurisdiction to conduct judicial review of such

actions should be established in a single court in order to

provide a centralized review of such actions and, if so, in

which court that jurisdiction should be vested.

(d) REPORT.—(1) Not later than December 15, 1996, the committee shall submit to the Secretary of Defense a report setting forth

its findings and recommendations, including its recommendations

pursuant to subsection (c).

(2) Not later than January 1, 1997, the Secretary of Defense,

after consultation with the Attorney General, shall transmit the

committee’s report to Congress. The Secretary may include in the

transmittal any comments on the report that the Secretary or

the Attorney General consider appropriate.

(e) TERMINATION OF COMMITTEE.—The committee shall terminate 30 days after the date of the submission of its report to

Congress under subsection (d)(2).

SEC. 552. COMPTROLLER GENERAL REVIEW OF PROPOSED ARMY END

STRENGTH ALLOCATIONS.

(a) IN GENERAL.—During fiscal years 1996 through 2001, the

Comptroller General of the United States shall analyze the plans

of the Secretary of the Army for the allocation of assigned active

component end strengths for the Army through the requirements

process known as Total Army Analysis 2003 and through any

subsequent similar requirements process of the Army that is conducted before 2002. The Comptroller General’s analysis shall consider whether the proposed active component end strengths and

planned allocation of forces for that period will be sufficient to

implement the national military strategy. In monitoring those plans,

the Comptroller General shall determine the extent to which the

Army will be able during that period—

(1) to man fully the combat force based on the projected

active component Army end strength for each of fiscal years

1996 through 2001;

(2) to meet the support requirements for the force and

strategy specified in the report of the Bottom-Up Review,

including requirements for operations other than war; and

(3) to streamline further Army infrastructure in order to

eliminate duplication and inefficiencies and replace active duty

personnel in overhead positions, whenever practicable, with

civilian or reserve personnel.

(b) ACCESS TO DOCUMENTS, ETC.—The Secretary of the Army

shall ensure that the Comptroller General is provided access, on

a timely basis and in accordance with the needs of the Comptroller

General, to all analyses, models, memoranda, reports, and other

documents prepared or used in connection with the requirements

process of the Army known as Total Army Analysis 2003 and

any subsequent similar requirements process of the Army that

is conducted before 2002.

(c) ANNUAL REPORT.—Not later than March 1 of each year

through 2002, the Comptroller General shall submit to Congress

a report on the findings and conclusions of the Comptroller General

under this section.

10 USC 115 note.

110 STAT. 320 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 553. REPORT ON MANNING STATUS OF HIGHLY DEPLOYABLE

SUPPORT UNITS.

(a) REPORT.—Not later than September 30, 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 report on the units of the Armed Forces under

the Secretary’s jurisdiction—

(1) that (as determined by the Secretary of the military

department concerned) are high-priority support units that

would deploy early in a contingency operation or other crisis;

and

(2) that are, as a matter of policy, managed at less than

100 percent of their authorized strengths.

(b) MATTERS TO BE INCLUDED.—The Secretary shall include

in the report—

(1) the number of such high-priority support units (shown

by type of unit) that are so managed;

(2) the level of manning within such high-priority support

units; and

(3) with respect to each such unit, either the justification

for manning of less than 100 percent or the status of corrective

action.

SEC. 554. REVIEW OF SYSTEM FOR CORRECTION OF MILITARY

RECORDS.

(a) REVIEW OF PROCEDURES.—The Secretary of Defense shall

review the system and procedures for the correction of military

records used by the Secretaries of the military departments in

the exercise of authority under section 1552 of title 10, United

States Code, in order to identify potential improvements that could

be made in the process for correcting military records to ensure

fairness, equity, and (consistent with appropriate service to

applicants) maximum efficiency. The Secretary may not delegate

responsibility for the review to an officer or official of a military

department.

(b) ISSUES REVIEWED.—In conducting the review, the Secretary

shall consider (with respect to each Board for the Correction of

Military Records) the following:

(1) The composition of the board and of the support staff

for the board.

(2) Timeliness of final action.

(3) Independence of deliberations by the civilian board.

(4) The authority of the Secretary of the military department concerned to modify the recommendations of the board.

(5) Burden of proof and other evidentiary standards.

(6) Alternative methods for correcting military records.

(7) Whether the board should be consolidated with the

Discharge Review Board of the military department.

(c) REPORT.—Not later than April 1, 1996, the Secretary of

Defense shall submit a report on the results of the Secretary’s

review under this section to the Committee on Armed Services

of the Senate and the Committee on National Security of the

House of Representatives. The report shall contain the recommendations of the Secretary for improving the process for correcting military records in order to achieve the objectives referred to in

subsection (a).

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 321

SEC. 555. 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. The report

shall be prepared in consultation with the Director of the Federal

Bureau of Investigation.

(b) MATTERS TO BE INCLUDED.—In the report, the Secretary

shall—

(1) survey fingerprint cards and final disposition forms

filled out in the past 24 months by each investigative organization;

(2) compare the fingerprint cards and final disposition

forms filled out to all judicial and nonjudicial procedures initiated as a result of actions taken by each investigative service

in the past 24 months;

(3) account for any discrepancies between the forms filled

out and the judicial and nonjudicial procedures initiated;

(4) compare the fingerprint cards and final disposition

forms filled out with the information held by the Federal

Bureau of Investigation criminal history identification files;

(5) identify any weaknesses in the collection of fingerprint

cards and final disposition forms and in the reporting of that

information to the Federal Bureau of Investigation; and

(6) determine whether or not other law enforcement activities of the military services collect and report such information

or, if not, should collect and report such information.

(c) SUBMISSION OF REPORT.—The report shall be submitted

not later than one year 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.

Subtitle F—Other Matters

SEC. 561. 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 in connection with a trial, whether before, during,

or after the trial; or’’; and

(3) by redesignating paragraph (5) as paragraph (4).

110 STAT. 322 PUBLIC LAW 104–106—FEB. 10, 1996

(b) OFFICER SERVICE CREDIT.—Such section is further amended

by adding at the end the following:

‘‘(b) OFFICERS NOT ALLOWED SERVICE CREDIT FOR TIME LOST.—

In the case of an officer of an armed force who after the date

of the enactment of the National Defense Authorization Act for

Fiscal Year 1996—

‘‘(1) deserts;

‘‘(2) is absent from his organization, station, or duty for

more than one day without proper authority, as determined

by competent authority;

‘‘(3) is confined by military or civilian authorities for more

than one day in connection with a trial, whether before, during,

or after the 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:

10 USC 1405.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 323

‘‘§ 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. 562. 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.—(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 Ranger Training Brigade (or other organizational element of

the Army primarily responsible for Ranger student training) are

not less than 90 percent of the required manning spaces for officers,

and for enlisted members, respectively, for that brigade. ‘‘(2) In this subsection, 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) 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

10 USC 972 note.

110 STAT. 324 PUBLIC LAW 104–106—FEB. 10, 1996

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,

and the number of enlisted members, permanently assigned to

the Army Ranger Training Brigade are not each at (or above)

the requirement specified in subsection (a) of section 4303 of title

10, United States Code, as added by subsection (a), the Secretary

of the Army shall—

(A) take such steps as necessary to accomplish that requirement within 12 months after such date of enactment; and

(B) submit to Congress, not later than 90 days after such

date of enactment, a plan to achieve and maintain that requirement.

(2) The requirement specified in subsection (a) of section 4303

of title 10, United States Code, as added by subsection (a), shall

expire two years after the date (on or after the date of the enactment

of this Act) on which the required manning levels referred to in

paragraph (1) are first attained.

(c) GAO ASSESSMENT.—(1) Not later than one year after the

date of the enactment of this Act, the Comptroller General shall

submit to Congress a report providing a preliminary assessment

of the implementation and effectiveness of all corrective actions

taken by the Army as a result of the February 1995 accident

at the Florida Ranger Training Camp, including an evaluation

of the implementation of the required manning levels established

by subsection (a) of section 4303 of title 10, United States Code,

as added by subsection (a).

(2) At the end of the two-year period specified in subsection

(b)(2), the Comptroller General shall submit to Congress a report

providing a final assessment of the matters covered in the preliminary report under paragraph (1). The report shall include the

Comptroller General’s recommendation as to the need to continue

required statutory manning levels as specified in subsection (a)

of section 4303 of title 10, United States Code, as added by subsection (a).

(d) SENSE OF CONGRESS.—In light of requirement that particularly dangerous training activities (such as Ranger training, Search,

Evasion, Rescue, and Escape (SERE) training, SEAL training, and

Airborne training) must be adequately manned and resourced to

ensure safety and effective oversight, it is the sense of Congress—

(1) that the Secretary of Defense, in conjunction with the

Secretaries of the military departments, should review and,

if necessary, enhance oversight of all such training activities;

and

(2) that organizations similar to the safety cells required

to be established for Army Ranger training in section 4303

of title 10, United States Code, as added by subsection (a),

should (when appropriate) be used for all such training activities.

Reports.

10 USC 4303

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 325

SEC. 563. SEPARATION IN CASES INVOLVING EXTENDED CONFINEMENT.

(a) SEPARATION.—(1)(A) Chapter 59 of title 10, United States

Code, is amended by inserting after section 1166 the following

new section:

‘‘§ 1167. Members under confinement by sentence of courtmartial: separation after six months confinement

‘‘Except as otherwise provided in regulations prescribed by

the Secretary of Defense, a member sentenced by a court-martial

to a period of confinement for more than six months may be separated from the member’s armed force at any time after the sentence

to confinement has become final under chapter 47 of this title

and the person has served in confinement for a period of six

months.’’.

(B) The table of sections at the beginning of chapter 59 of

such title is amended by inserting after the item relating to section

1166 the following new item:

‘‘1167. Members under confinement by sentence of court-martial: separation after

six months confinement.’’.

(2)(A) Chapter 1221 of title 10, United States Code, is amended

by adding at the end the following:

‘‘§ 12687. Reserves under confinement by sentence of courtmartial: separation after six months confinement

‘‘Except as otherwise provided in regulations prescribed by

the Secretary of Defense, a Reserve sentenced by a court-martial

to a period of confinement for more than six months may be separated from that Reserve’s armed force at any time after the sentence

to confinement has become final under chapter 47 of this title

and the Reserve has served in confinement for a period of six

months.’’.

(B) The table of sections at the beginning of chapter 1221

of such title is amended by inserting at the end thereof the following

new item:

‘‘12687. Reserves under confinement by sentence of court-martial: separation after

six months confinement.’’.

(b) DROP FROM ROLLS.—(1) Section 1161(b) of title 10, United

States Code, is amended by striking out ‘‘or (2)’’ and inserting

in lieu thereof ‘‘(2) who may be separated under section 1178

of this title by reason of a sentence to confinement adjudged by

a court-martial, or (3)’’.

(2) Section 12684 of such title is amended—

(A) by striking out ‘‘or’’ at the end of paragraph (1);

(B) by redesignating paragraph (2) as paragraph (3); and

(C) by inserting after paragraph (1) the following new

paragraph (2):

‘‘(2) who may be separated under section 12687 of this

title by reason of a sentence to confinement adjudged by a

court-martial; or’’.

SEC. 564. LIMITATIONS ON REDUCTIONS IN MEDICAL PERSONNEL.

(a) IN GENERAL.—(1) Chapter 3 of title 10, United States Code,

is amended by inserting after section 129b the following new section:

110 STAT. 326 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘§ 129c. Medical personnel: limitations on reductions

‘‘(a) LIMITATION ON REDUCTION.—For any fiscal year, the Secretary of Defense may not make a reduction in the number of

medical personnel of the Department of Defense described in subsection (b) unless the Secretary makes a certification for that fiscal

year described in subsection (c).

‘‘(b) COVERED REDUCTIONS.—Subsection (a) applies to a reduction in the number of medical personnel of the Department of

Defense as of the end of a fiscal year to a number that is less

than—

‘‘(1) 95 percent of the number of such personnel at the

end of the immediately preceding fiscal year; or

‘‘(2) 90 percent of the number of such personnel at the

end of the third fiscal year preceding the fiscal year.

‘‘(c) CERTIFICATION.—A certification referred to in subsection

(a) with respect to reductions in medical personnel of the Department of Defense for any fiscal year is a certification by the Secretary

of Defense to Congress that—

‘‘(1) the number of medical personnel being reduced is

excess to the current and projected needs of the Department

of Defense; and

‘‘(2) such reduction will not result in an increase in the

cost of health care services provided under the Civilian Health

and Medical Program of the Uniformed Services under chapter

55 of this title.

‘‘(d) POLICY FOR IMPLEMENTING REDUCTIONS.—Whenever the

Secretary of Defense directs that there be a reduction in the total

number of military medical personnel of the Department of Defense,

the Secretary shall require that the reduction be carried out so

as to ensure that the reduction is not exclusively or disproportionately borne by any one of the armed forces and is not exclusively

or disproportionately borne by either the active or the reserve

components.

‘‘(e) DEFINITION.—In this section, the term ‘medical personnel’

means—

‘‘(1) the members of the armed forces covered by the term

‘medical personnel’ as defined in section 115a(g)(2) of this title;

and

‘‘(2) the civilian personnel of the Department of Defense

assigned to military medical facilities.’’.

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

is amended by inserting after the item relating to section 129b

the following new item:

‘‘129c. Medical personnel: limitations on reductions.’’.

(b) SPECIAL TRANSITION RULE FOR FISCAL YEAR 1996.—For

purposes of applying subsection (b)(1) of section 129c of title 10,

United States Code, as added by subsection (a), during fiscal year

1996, the number against which the percentage limitation of 95

percent is computed shall be the number of medical personnel

of the Department of Defense as of the end of fiscal year 1994

(rather than the number as of the end of fiscal year 1995).

(c) REPORT ON PLANNED REDUCTIONS.—(1) Not later than March

1, 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 reduction

10 USC 129c

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 327

of the number of medical personnel of the Department of Defense

over the five-year period beginning on October 1, 1996. (2) The Secretary shall prepare the plan through the Assistant

Secretary of Defense having responsibility for health affairs, who

shall consult in the preparation of the plan with the Surgeon

General of the Army, the Surgeon General of the Navy, and the

Surgeon General of the Air Force.

(3) For purposes of this subsection, the term ‘‘medical personnel

of the Department of Defense’’ shall have the meaning given the

term ‘‘medical personnel’’ in section 129c(e) of title 10, United

States Code, as added by subsection (a).

(d) REPEAL OF SUPERSEDED PROVISIONS OF LAW.—The following

provisions of law are repealed:

(1) Section 711 of the National Defense Authorization Act

for Fiscal Year 1991 (10 U.S.C. 115 note).

(2) Subsection (b) of section 718 of the National Defense

Authorization Act for Fiscal Years 1992 and 1993 (Public Law

102–190; 10 U.S.C. 115 note).

(3) Section 518 of the National Defense Authorization Act

for Fiscal Year 1993 (Public Law 102–484; 10 U.S.C. 12001

note).

SEC. 565. 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 defined and managed with a view toward establishing

and achieving reasonable personnel tempo standards for all personnel, regardless of service, unit, or assignment.

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

110 STAT. 328 PUBLIC LAW 104–106—FEB. 10, 1996

(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.

SEC. 567. 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.

33 USC 857a

note.

10 USC 1293

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 329

‘‘(e) ENTITLEMENT TO HEALTH CARE.—A member separated

under this section shall be entitled to medical and dental care

under chapter 55 of this title to the same extent and under the

same conditions as a person who is entitled to such care under

section 1074(b) of this title.

‘‘(f) 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.

‘‘(g) HIV-POSITIVE MEMBERS.—A member shall be considered

to be HIV-positive for purposes of this section if there is serologic

evidence that the member is infected with the virus known as

Human Immunodeficiency Virus–1 (HIV–1), the virus most commonly associated with the acquired immune deficiency syndrome

(AIDS) in the United States. Such serologic evidence shall be considered to exist if there is a reactive result given by an enzymelinked immunosorbent assay (ELISA) serologic test that is

confirmed by a reactive and diagnostic immunoelectrophoresis test

(Western blot) on two separate samples. Any such serologic test

must be one that is approved by the Food and Drug

Administration.’’.

(2) The item relating to such section in the table of sections

at the beginning of chapter 59 of such title is amended to read

as follows:

‘‘1177. Members infected with HIV–1 virus: mandatory discharge or retirement.’’.

(b) EFFECTIVE DATE.—Section 1177 of title 10, United States

Code, as amended by subsection (a), applies with respect to members of the Armed Forces determined to be HIV-positive before,

on, or after the date of the enactment of this Act. In the case

of a member of the Armed Forces determined to be HIV-positive

before such date, the deadline for separation of the member under

subsection (a) of such section, as so amended, shall be determined

from the date of the enactment of this Act (rather than from

the date of such determination).

SEC. 568. 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.

10 USC 1177

note.

110 STAT. 330 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘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 sur- veys of members of the armed forces on active duty or in an

active status, members of the families of such members, and retired

members of the armed forces to determine the effectiveness of

Federal programs relating to military families and the need for

new programs. ‘‘(b) RESPONSES TO BE VOLUNTARY.—Responses to surveys conducted under this section shall be voluntary.

‘‘(c) FEDERAL RECORDKEEPING REQUIREMENTS.—With respect

to such surveys, family members of members of the armed forces

and reserve and retired members of the armed forces shall be

considered to be employees of the United States for purposes of

section 3502(3)(A)(i) 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.

President.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 331

‘‘(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.

110 STAT. 332 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘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

entry-level employees at that installation who are drawn from

the same labor pool; and

Regulations.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 333

‘‘(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.

‘‘(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 subRegulations.

Public

information.

Regulations.

110 STAT. 334 PUBLIC LAW 104–106—FEB. 10, 1996

section (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.

‘‘§ 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.

Regulations.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 335

‘‘§ 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.

10 USC 1787

note.

110 STAT. 336 PUBLIC LAW 104–106—FEB. 10, 1996

(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) 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. 569. 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 Department of Defense

civilian employee or contractor employee who serves with or accompanies the Armed Forces in the field under orders) who becomes

missing or unaccounted for is ultimately accounted for by the United

States 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. Actions of Secretary concerned; initial board inquiry.

‘‘1504. Subsequent board of inquiry.

‘‘1505. Further review.

‘‘1506. Personnel files.

‘‘1507. Recommendation of status of death.

‘‘1508. Judicial review.

‘‘1509. Preenactment, special interest cases.

‘‘1510. Applicability to Coast Guard.

‘‘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

related to missing persons (including matters related to search,

rescue, escape, and evasion); 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 be responsible

for the coordination for such purposes within the Department of

Establishment.

10 USC 1501

note.

10 USC 1784

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 337

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 throughout the Department of Defense, for personnel recovery (including search, rescue, escape, and evasion).

‘‘(4) The office shall establish procedures to be followed by

Department of Defense boards of inquiry, and by officials reviewing

the reports of such boards, under this chapter.

‘‘(b) UNIFORM DOD PROCEDURES.—(1) The Secretary of Defense

shall prescribe procedures, to apply uniformly throughout the

Department of Defense, for—

‘‘(A) the determination of the status of persons described

in subsection (c); and

‘‘(B) for the systematic, comprehensive, and timely collection, analysis, review, dissemination, and periodic update of

information related to such persons.

‘‘(2) Such procedures may provide for the delegation by the

Secretary of Defense of any responsibility of the Secretary under

this chapter to the Secretary of a military department.

‘‘(3) Such procedures shall be prescribed in a single directive

applicable to all elements of the Department of Defense.

‘‘(4) 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 the period with respect to

which the extension is provided. Subsequent extensions may be

provided on the same basis.

‘‘(c) 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

becomes involuntarily absent as a result of a hostile action,

or under circumstances suggesting that the involuntary absence

is a result of a hostile action, and whose status is undetermined

or who is unaccounted for.

‘‘(2) Any civilian employee of the Department of Defense,

and any employee of a contractor of the Department of Defense,

who serves with or accompanies the armed forces in the field

under orders who becomes involuntarily absent as a result

of a hostile action, or under circumstances suggesting that

the involuntary absence is a result of a hostile action, and

whose status is undetermined or who is unaccounted for.

‘‘(d) PRIMARY NEXT OF KIN.—The individual who is primary

next of kin of any person prescribed in subsection (c) may for

purposes of this chapter designate another individual to act on

behalf of that individual as primary next of kin. The Secretary

concerned 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.

‘‘(e) TERMINATION OF APPLICABILITY OF PROCEDURES WHEN

MISSING PERSON IS ACCOUNTED FOR.—The provisions of this chapter

relating to boards of inquiry and to the actions by the Secretary

concerned on the reports of those boards shall cease to apply in

the case of a missing person upon the person becoming accounted

for or otherwise being determined to be in a status other than

missing.

110 STAT. 338 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(f) SECRETARY CONCERNED.—In this chapter, the term ‘Secretary concerned’ includes, in the case of a civilian employee of

the Department of Defense or contractor of the Department of

Defense, the Secretary of the military department or head of the

element of the Department of Defense employing the employee

or contracting with the contractor, as the case may be.

‘‘§ 1502. Missing persons: initial report

‘‘(a) PRELIMINARY ASSESSMENT AND RECOMMENDATION BY COMMANDER.—After receiving information that the whereabouts and

status of a person described in section 1501(c) 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 a report containing that recommendation to the

theater component commander with jurisdiction over the missing person in accordance with procedures prescribed under

section 1501(b) of this title.

‘‘(b) TRANSMISSION THROUGH THEATER COMPONENT COMMANDER.—Upon reviewing a report under subsection (a) recommending that a person be placed in a missing status, the theater

component commander shall ensure that all necessary actions are

being taken, and all appropriate assets are being used, to resolve

the status of the missing person. Not later than 14 days after

receiving the report, the theater component commander shall forward the report to the Secretary of Defense or the Secretary concerned in accordance with procedures prescribed under section

1501(b) of this title. The theater component commander shall

include with such report a certification that all necessary actions

are being taken, and all appropriate assets are being used, to

resolve the status of the missing person.

‘‘(c) SAFEGUARDING AND FORWARDING OF RECORDS.—A commander making a preliminary assessment under subsection (a)

with respect to a missing person shall (in accordance with procedures prescribed under section 1501 of this title) safeguard and

forward for official use any information relating to the whereabouts

and status of the missing person that results from the preliminary

assessment or from actions taken to locate the person. The theater

component commander through whom the report with respect to

the missing person is transmitted under subsection (b) shall ensure

that all pertinent information relating to the whereabouts and

status of the missing person that results from the preliminary

assessment or from actions taken to locate the person is properly

safeguarded to avoid loss, damage, or modification.

‘‘§ 1503. Actions of Secretary concerned; initial board inquiry

‘‘(a) DETERMINATION BY SECRETARY.—Upon receiving a rec- ommendation under section 1502(b) of this title that a person be

placed in a missing status, the Secretary receiving the recommendation shall review the recommendation and, not later than 10 days

after receiving such recommendation, shall appoint a board under

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 339

this section 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 Secretary who appoints a board under this

section that the absence or missing status of two or more persons

is factually related, the Secretary may appoint a single board under

this section to conduct the inquiry into the whereabouts and status

of all such persons.

‘‘(c) COMPOSITION.—(1) A board appointed under this section

to inquire into the whereabouts and status of a person 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 Department of Defense or of

a contractor of the Department of Defense.

‘‘(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 individual access to all information relating to

the whereabouts and status of the missing persons covered by

the inquiry.

‘‘(4) A Secretary appointing a board under this subsection shall,

for purposes of providing legal counsel to the board, assign to

the board a judge advocate, or appoint to the board an attorney,

who has expertise in the law relating to missing persons, the

determination of death of such persons, and the rights of family

members and dependents of such persons.

‘‘(d) DUTIES OF BOARD.—A board appointed to conduct an

inquiry into the whereabouts and status of a missing person under

this section shall—

‘‘(1) collect, develop, and investigate all facts and evidence

relating to the disappearance or whereabouts and status of

the person;

‘‘(2) collect appropriate documentation of the facts and evidence covered by the board’s 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 Secretary 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 (subject to the requirements of

section 1507 of this title) to be dead.

‘‘(e) BOARD PROCEEDINGS.—During the proceedings of an

inquiry under this section, a board shall—

‘‘(1) 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 and status of each person

covered by the inquiry;

110 STAT. 340 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(2) gather information relating to actions taken to find

the person, including any evidence of the whereabouts and

status of the person arising from such actions; and

‘‘(3) maintain a record of its proceedings.

‘‘(f) COUNSEL FOR MISSING PERSON.—(1) The Secretary appointing a board to conduct an inquiry under this section shall appoint

counsel to represent each person covered by the inquiry or, in

a case covered by subsection (b), one counsel to represent all persons

covered by the inquiry. Counsel appointed under this paragraph

may be referred to as ‘missing person’s counsel’ and represents

the interests of the person covered by the inquiry (and not any

member of the person’s family or other interested parties).

‘‘(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;

‘‘(B) have a security clearance that affords the counsel

access to all information relating to the whereabouts and status

of the person or persons covered by the inquiry; and

‘‘(C) have expertise in the law relating to missing persons,

the determination of the death of such persons, and the rights

of family members and dependents of such persons.

‘‘(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 assist the board in ensuring that all appropriate information concerning the case is collected,

logged, filed, and safeguarded.

‘‘(5) A missing person’s counsel shall review the report of the

board under subsection (h) and submit to the Secretary concerned

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 the person covered by the inquiry, the

primary next of kin, other members of the immediate family, and

any other previously designated person of the person).

‘‘(h) REPORT.—(1) A board appointed under this section shall

submit to the Secretary who appointed the board 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

(d) 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).

Records.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 341

‘‘(2) A board shall submit a report under this subsection with

respect to the inquiry carried out by the board not later than

30 days after the date of the appointment of the board to carry

out the inquiry. The report may include a classified annex.

‘‘(3) The Secretary of Defense shall prescribe procedures for

the release of a report submitted under this subsection with respect

to a missing person. Such procedures shall provide that the report

may not be made public (except as provided for in subsection

(j)) until one year after the date on which the report is submitted.

‘‘(i) DETERMINATION BY SECRETARY.—(1) Not later than 30 days

after receiving a report from a board under subsection (h), the

Secretary receiving the report shall review the report.

‘‘(2) In reviewing a report under paragraph (1), 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, including whether

the person shall—

‘‘(A) be declared to be missing;

‘‘(B) be declared to have deserted;

‘‘(C) be declared to be absent without leave; or

‘‘(D) be declared to be dead.

‘‘(j) REPORT TO FAMILY MEMBERS AND OTHER INTERESTED PERSONS.—Not later than 30 days after the date on which the Secretary

concerned makes a determination of the status of a person under

subsection (i), the Secretary shall take reasonable actions to—

‘‘(1) provide to the primary next of kin, the other members

of the immediate family, and any other previously designated

person of the person—

‘‘(A) an unclassified summary of the unit commander’s

report with respect to the person under section 1502(a)

of this title; and

‘‘(B) the report of the board (including the names of

the members of the board) under subsection (h); and

‘‘(2) inform each individual referred to in paragraph (1)

that the United States will conduct a subsequent inquiry into

the whereabouts and status of the person on or about one

year after the date of the first official notice of the disappearance of the person, unless information becomes available sooner

that may result in a change in status of the person.

‘‘(k) TREATMENT OF DETERMINATION.—Any determination of the

status of a missing person under subsection (i) shall be treated

as the determination of the status of the person by all departments

and agencies of the United States.

‘‘§ 1504. Subsequent board of inquiry

‘‘(a) ADDITIONAL BOARD.—If information that may result in

a change of status of a person covered by a determination under

section 1503(i) of this title becomes available within one year after

the date of the transmission of a report with respect to the person

under section 1502(a)(2) of this title, the Secretary concerned shall

110 STAT. 342 PUBLIC LAW 104–106—FEB. 10, 1996

appoint a board under this section to conduct an inquiry into

the information.

‘‘(b) DATE OF APPOINTMENT.—The Secretary concerned shall

appoint a board under this section to conduct an inquiry into

the whereabouts and status of a missing person on or about one

year after the date of the transmission of a report concerning

the person under section 1502(a)(2) of this title.

‘‘(c) COMBINED INQUIRIES.—If it appears to the Secretary concerned 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 and status of such

persons.

‘‘(d) COMPOSITION.—(1) A board appointed under this section

shall be composed of at least three members as follows:

‘‘(A) In the case of a board that will inquire into the

whereabouts and status of one or more members of the armed

forces (and no civilians described in subparagraph (B)), the

board shall be composed of officers having the grade of major

or lieutenant commander or above.

‘‘(B) In the case of a board that will inquire into the

whereabouts and status of one or more civilian employees of

the Department of Defense or contractors of the Department

of Defense (and no members of the armed forces), the board

shall be composed of—

‘‘(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

considers advisable.

‘‘(C) In the case of a board that will inquire into the

whereabouts and status of both one or more members of the

armed forces and one or more civilians described in subparagraph (B)—

‘‘(i) the board shall include at least one officer described

in subparagraph (A) and at least one employee of the

Department of Defense described in subparagraph (B)(i);

and

‘‘(ii) the ratio of such officers to such employees on

the board shall be roughly proportional to the ratio of

the number of members of the armed forces who are subjects of the board’s inquiry to the number of civilians who

are subjects of the board’s inquiry.

‘‘(2) The Secretary concerned 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) One member of each board appointed under this subsection

shall be an individual who—

‘‘(A) has an occupational specialty similar to that of one

or more of the persons covered by the inquiry; and

‘‘(B) has an understanding of and expertise in the type

of official activities that one or more such persons were engaged

in at the time such person or persons disappeared.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 343

‘‘(4) The Secretary who appoints a board under this subsection

shall, for purposes of providing legal counsel to the board, assign

to the board a judge advocate, or appoint to the board an attorney,

with the same qualifications as specified in section 1503(c)(4) of

this title.

‘‘(e) DUTIES OF BOARD.—A board appointed under this section

to conduct an inquiry into the whereabouts and status of a person

shall—

‘‘(1) review the reports with respect to the person transmitted under section 1502(a)(2) of this title and submitted under

section 1503(h) of this title;

‘‘(2) collect and evaluate any document, fact, or other evidence with respect to the whereabouts and status of the person

that has become available since the determination of the status

of the person under section 1503 of this title;

‘‘(3) draw conclusions as to the whereabouts and 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 concerned a report describing

the findings and conclusions of the board, together with a

recommendation for a determination by the Secretary concerning the whereabouts and status of the person.

‘‘(f) COUNSEL FOR MISSING PERSONS.—(1) When the Secretary

concerned 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.

‘‘(g) 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 person may attend the proceedings of the board during the inquiry.

‘‘(2) The Secretary concerned shall take reasonable actions to

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 notice under paragraph (2)

shall notify the Secretary of the intent, if any, of that individual

to attend the proceedings of the board not later 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

Reports.

110 STAT. 344 PUBLIC LAW 104–106—FEB. 10, 1996

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 an objection to any recommendation of

the board under subsection (i) as to the status of the missing

person.

‘‘(5)(A) Individuals who wish to file objections under paragraph

(4)(D) to any recommendation of the board shall—

‘‘(i) submit a letter of intent to the president of the board

not later than 15 days after the date on which the recommendations are made; and

‘‘(ii) submit to the president of the board the objections

in writing not later than 30 days after the date on which

the recommendations are made.

‘‘(B) The president of a board shall include any objections

to a recommendation of the board that are submitted to the president of the board under subparagraph (A) in the report of the

board containing the recommendation under subsection (i).

‘‘(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.

‘‘(h) 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, or if the classification markings cannot be removed before release from the information covered by the request, or if the material cannot be summarized

in a manner that prevents the release of classified information,

the classified information shall be made available only to the 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 the proceeding of the board

at 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

Classified

information.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 345

shall assist the president of a board in ensuring that classified

information is not compromised through board proceedings. ‘‘(i) RECOMMENDATION ON STATUS.—(1) Upon completion of an

inquiry under this subsection, a board shall make a recommendation

as to the current whereabouts and 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 in making the recommendation

the board complies with section 1507 of this title.

‘‘(j) REPORT.—A board appointed under this section shall submit

to the Secretary concerned 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.

‘‘(k) ACTIONS BY SECRETARY CONCERNED.—(1) Not later than

30 days after the receipt of a report from a board under subsection

(j), 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)(5).

‘‘(2) In reviewing a report under paragraph (1) (including the

objections described in subparagraph (C) of that paragraph), the

Secretary concerned 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.

‘‘(l) REPORT TO FAMILY MEMBERS AND OTHER INTERESTED PERSONS.—Not later than 60 days after the date on which the Secretary

concerned makes a determination with respect to a missing person

under subsection (k), the Secretary shall—

‘‘(1) provide the report reviewed by the Secretary in making

the determination to the primary next of kin, the other members of the immediate family, and any other previously designated person of the person; and

‘‘(2) in the case of a person who continues to be in a

missing status, inform each individual referred to in paragraph

(1) that the United States will conduct a further investigation

into the whereabouts and status of the person as specified

in section 1505 of this title.

‘‘(m) TREATMENT OF DETERMINATION.—Any determination of

the status of a missing person under subsection (k) shall supersede

the determination of the status of the person under section 1503

of this title and shall be treated as the determination of the status

of the person by all departments and agencies of the United States.

‘‘§ 1505. Further review

‘‘(a) SUBSEQUENT REVIEW.—The Secretary concerned shall conduct subsequent inquiries into the whereabouts and status of any

person determined by the Secretary under section 1504 of this

title to be in a missing status.

110 STAT. 346 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(b) FREQUENCY OF SUBSEQUENT REVIEWS.—(1) In the case

of a missing person who was last known to be alive or who was

last suspected of being alive, 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 initial

report of the disappearance of the person under section 1502(a)

of this title; 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 missing person under this subsection upon receipt

of information that could result in a change of status of the missing

person. When 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 initial report of the

disappearance of the missing person required by section 1502

of this title; or

‘‘(B) if, before the end of such 30-year period, the missing

person is accounted for.

‘‘(c) ACTION UPON DISCOVERY OR RECEIPT OF INFORMATION.—

(1) Whenever any United States intelligence agency or other element of the Government finds or receives information that may

be related to a missing person, the information shall promptly

be forwarded to the office established under section 1501 of this

title.

‘‘(2) Upon receipt of information under paragraph (1), the head

of the office established under section 1501 of this title shall as

expeditiously as possible ensure that the information is added to

the appropriate case file for that missing person and notify (A)

the designated missing person’s counsel for that person, and (B)

the primary next of kin and any previously designated person

for the missing person of the existence of that information.

‘‘(3) The head of the office established under section 1501 of

this title, with the advice of the missing person’s counsel notified

under paragraph (2), shall determine whether the information is

significant enough to require a board review under this section.

‘‘(d) CONDUCT OF PROCEEDINGS.—If it is determined that such

a board should be appointed, 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 subsections

(b), (c), and (d), the Secretary concerned shall, to the maximum

extent practicable, ensure that the personnel file of a missing person

contains all information in the possession of the United States

relating to the disappearance and whereabouts and status of the

person.

‘‘(b) CLASSIFIED INFORMATION.—The Secretary concerned may

withhold classified information from a personnel file under this

section. If the Secretary concerned withholds classified information

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 347

from a personnel file, the Secretary shall ensure that the file

contains the following:

‘‘(1) A notice that the withheld information exists.

‘‘(2) A notice of the date of the most recent review of

the classification of the withheld information.

‘‘(c) PROTECTION OF PRIVACY.—The Secretary concerned shall

maintain personnel files under this section, and shall permit disclosure of or access to such files, in accordance with the provisions

of section 552a of title 5 and with other applicable laws and regulations pertaining to the privacy of the persons covered by the files.

‘‘(d) PRIVILEGED INFORMATION.—(1) The Secretary concerned

shall withhold from personnel files under this section, as privileged

information, debriefing reports provided by missing persons

returned to United States control which are obtained under a promise of confidentiality made for the purpose of ensuring the fullest

possible disclosure of information.

‘‘(2) If a debriefing report contains non-derogatory information

about the status and whereabouts of a missing person other than

the source of the debriefing report, the Secretary concerned shall

prepare an extract of the non-derogatory information. That extract,

following a review by the source of the debriefing report, shall

be placed in the personnel file of the missing person in such a

manner as to protect the identity of the source providing the

information.

‘‘(3) Whenever the Secretary concerned withholds a debriefing

report from a personnel file under this subsection, the Secretary

shall ensure that the file contains a notice that withheld information

exists.

‘‘(e) WRONGFUL WITHHOLDING.—Except as provided in subsections (a) through (d), any person who knowingly and willfully

withholds from the personnel file of a missing person any information relating to the disappearance or whereabouts and status of

a missing person shall be fined as provided in title 18 or imprisoned

not more than one year, or both.

‘‘(f) AVAILABILITY OF INFORMATION.—The Secretary concerned

shall, upon request, make available the contents of the personnel

file of a missing person to the primary next of kin, the other

members of the immediate family, or any other previously designated person of the person.

‘‘§ 1507. Recommendation of status of death

‘‘(a) REQUIREMENTS RELATING TO RECOMMENDATION.—A board

appointed under section 1503, 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; and

‘‘(3) representatives of the United States—

‘‘(A) 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

‘‘(B) 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

110 STAT. 348 PUBLIC LAW 104–106—FEB. 10, 1996

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 1503, 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 that 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) RIGHT OF REVIEW.—A person who is the primary next

of kin (or the previously designated person) of a person who is

the subject of a finding described in subsection (b) may obtain

judicial review in a United States district court of that finding,

but only on the basis of a claim that there is information that

could affect the status of the missing person’s case that was not

adequately considered during the administrative review process

under this chapter. Any such review shall be as provided in section

706 of title 5.

‘‘(b) FINDINGS FOR WHICH JUDICIAL REVIEW MAY BE SOUGHT.—

Subsection (a) applies to the following findings:

‘‘(1) A finding by a board appointed under section 1504

or 1505 of this title that a missing person is dead.

‘‘(2) 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.

‘‘(c) SUBSEQUENT REVIEW.—Appeals from a decision of the district court shall be taken to the appropriate United States court

of appeals and to the Supreme Court as provided by law.

‘‘§ 1509. Preenactment, special interest cases

‘‘(a) REVIEW OF STATUS.—In the case of an unaccounted for

person covered by section 1501(c) of this title who is described

in subsection (b), if new information that could change the status

of that person is found or received by a United States intelligence

agency, by a Department of Defense agency, or by a person specified

in section 1504(g) of this title, that information shall be provided

to the Secretary of Defense with a request that the Secretary

evaluate the information in accordance with sections 1505(c) and

1505(d) of this title.

‘‘(b) CASES ELIGIBLE FOR REVIEW.—The cases eligible for review

under this section are the following:

‘‘(1) With respect to the Korean conflict, any unaccounted

for person who was classified as a prisoner of war or as missing

in action during that conflict and who (A) was known to be

or suspected to be alive at the end of that conflict, or (B)

was classified as missing in action and whose capture was

possible.

‘‘(2) With respect to the Cold War, any unaccounted for

person who was engaged in intelligence operations (such as

Prisoners of war.

Missing in action.

Reports.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 349

aerial ‘ferret’ reconnaissance missions over and around the

Soviet Union and China) during the Cold War.

‘‘(3) With respect to the Indochina war era, any unaccounted for person who was classified as a prisoner of war

or as missing in action during the Indochina conflict.

‘‘(c) SPECIAL RULE FOR PERSONS CLASSIFIED AS ‘KIA/BNR’.—

In the case of a person described in subsection (b) who was classified

as ‘killed in action/body not recovered’, the case of that person

may be reviewed under this section only if the new information

referred to in subsection (a) is compelling.

‘‘(d) DEFINITIONS.—In this section:

‘‘(1) The term ‘Korean conflict’ means the period beginning

on June 27, 1950, and ending on January 31, 1955.

‘‘(2) The term ‘Cold War’ means the period beginning on

September 2, 1945, and ending on August 21, 1991.

‘‘(3) The term ‘Indochina war era’ means the period beginning on July 8, 1959, and ending on May 15, 1975.

‘‘§ 1510. Applicability to Coast Guard

‘‘(a) DESIGNATED OFFICER TO HAVE RESPONSIBILITY.—The

Secretary of Transportation shall designate an officer of the Department of Transportation to have responsibility within the Department of Transportation for matters relating to missing persons

who are members of the Coast Guard.

‘‘(b) PROCEDURES.—The Secretary of Transportation shall prescribe procedures for the determination of the status of persons

described in section 1501(c) of this title who are members of the

Coast Guard and for the collection, analysis, review, and update

of information on such persons. To the maximum extent practicable,

the procedures prescribed under this section shall be similar to

the procedures prescribed by the Secretary of Defense under section

1501(b) of this title.

‘‘§ 1511. Return alive of person declared missing or dead

‘‘(a) PAY AND ALLOWANCES.—Any person (except for a person

subsequently determined to have been absent without leave or

a deserter) in a missing status or declared dead under subchapter

VII of chapter 55 of title 5 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 such State or political

subdivision.

110 STAT. 350 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(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 Department of Defense

or an employee of a contractor of the Department of Defense

who serves with or accompanies the Armed Forces in the

field 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 category of any

of the following:

‘‘(A) Missing.

‘‘(B) Missing in action.

‘‘(C) Interned in a foreign country.

‘‘(D) Captured.

‘‘(E) Beleaguered.

‘‘(F) Besieged.

‘‘(G) 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 recovered and, if

not identifiable through visual means as those of the missing person, are identified as those of the missing person

by a practitioner of an appropriate forensic science; or

‘‘(C) credible evidence exists to support another determination of the person’s status.

‘‘(4) The term ‘primary next of kin’, in the case of a missing

person, means the individual authorized to direct disposition

of the remains of the person under section 1482(c) of this

title.

‘‘(5) The term ‘member of the immediate family’, in the

case of a missing person, means the following:

‘‘(A) The spouse of the person.

‘‘(B) A natural child, adopted child, stepchild, or illegitimate child (if acknowledged by the person or parenthood

has been established by a court of competent jurisdiction)

of the person, except that if such child has not attained

the age of 18 years, the term means a surviving parent

or legal guardian of such child.

‘‘(C) A biological parent of the person, unless legal

custody of the person by the parent has been previously

terminated by reason of a court decree or otherwise under

law and not restored.

‘‘(D) A brother or sister of the person, if such brother

or sister has attained the age of 18 years.

‘‘(E) Any other blood relative or adoptive relative of

the person, if such relative was given sole legal custody

of the person by a court decree or otherwise under law

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 351

before the person attained the age of 18 years and such

custody was not subsequently terminated before that time.

‘‘(6) The term ‘previously designated person’, in the case

of a missing person, means an individual designated by the

person under section 655 of this title for purposes of this

chapter.

‘‘(7) 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.

‘‘(8) 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 under chapter

76 of 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) only apply with respect to a

case to which section 555 of this title applies.’’;

110 STAT. 352 PUBLIC LAW 104–106—FEB. 10, 1996

(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 PERSONS 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 a missing member

‘‘(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 or persons, if any, other than

that person’s primary next of kin or immediate family, to whom

information on the whereabouts and status of the member shall

be provided if such whereabouts and 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 mem- ber, permit the member to revise the person or persons specified

by the member under subsection (a) at any time. Any such revision

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 a missing member.’’.

(e) ACCOUNTING FOR CIVILIAN EMPLOYEE AND CONTRACTORS

OF THE UNITED STATES.—(1) The Secretary of State shall carry

out a comprehensive study of the provisions of subchapter VII

of chapter 55 of title 5, United States Code (commonly referred

to as the ‘‘Missing Persons Act of 1942’’) (5 U.S.C. 5561 et seq.)

and any other law or regulation establishing procedures for the

accounting for of civilian employees of the United States or contractors of the United States who serve with or accompany the Armed

Forces in the field. The purpose of the study shall be to determine

the means, if any, by which those procedures may be improved.

(2) The Secretary of State shall carry out the study required

under paragraph (1) in consultation with the Secretary of Defense,

the Secretary of Transportation, the Director of Central Intelligence,

and the heads of such other departments and agencies of the

United States as the President designates for that purpose.

(3) In carrying out the study, the Secretary of State shall

examine the procedures undertaken when a civilian employee

referred to in paragraph (1) becomes involuntarily absent as a

result of a hostile action, or under circumstances suggesting that

the involuntary absence is a result of a hostile action, and whose

status is undetermined or who is unaccounted for, including procedures for—

(A) search and rescue for the employee;

(B) determining the status of the employee;

(C) reviewing and changing the status of the employee;

5 USC 5561 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 353

(D) determining the rights and benefits accorded to the

family of the employee; and

(E) maintaining and providing appropriate access to the

records of the employee and the investigation into the status

of the employee.

(4) Not later than one year after the date of the enactment

of this Act, the Secretary of State 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 study

carried out by the Secretary under this subsection. The report

shall include the recommendations, if any, of the Secretary for

legislation to improve the procedures covered by the study.

SEC. 570. ASSOCIATE DIRECTOR OF CENTRAL INTELLIGENCE FOR

MILITARY SUPPORT.

Section 102 of the National Security Act of 1947 (50 U.S.C.

403) is amended by adding at the end the following:

‘‘(e) In the event that neither the Director nor Deputy Director

of Central Intelligence is a commissioned officer of the Armed

Forces, a commissioned officer of the Armed Forces appointed to

the position of Associate Director of Central Intelligence for Military

Support, while serving in such position, shall not be counted against

the numbers and percentages of commissioned officers of the rank

and grade of such officer authorized for the armed force of which

such officer is a member.’’.

Subtitle G—Support for Non-Department

of Defense Activities

SEC. 571. REPEAL OF CERTAIN CIVIL-MILITARY PROGRAMS.

(a) REPEAL OF CIVIL-MILITARY COOPERATIVE ACTION PROGRAM.—The following provisions of law are repealed:

(1) Section 410 of title 10, United States Code.

(2) Section 1081(a) of the National Defense Authorization

Act for Fiscal Year 1993 (Public Law 102–484; 10 U.S.C. 410

note).

(b) REPEAL OF RELATED PROVISION.—Section 1045 of the

National Defense Authorization Act for Fiscal Year 1993 (Public

Law 102–484; 10 U.S.C. 410 note), relating to a pilot outreach

program to reduce demand for illegal drugs, is repealed.

(c) TECHNICAL AND CONFORMING AMENDMENTS.—Chapter 20

of title 10, United States Code, is amended—

(1) by striking out the table of subchapters after the chapter

heading;

(2) by striking out the subchapter heading for subchapter

I; and

(3) by striking out the subchapter heading for subchapter

II and the table of sections following that subchapter heading.

SEC. 572. TRAINING ACTIVITIES RESULTING IN INCIDENTAL SUPPORT

AND SERVICES FOR ELIGIBLE ORGANIZATIONS AND

ACTIVITIES OUTSIDE THE DEPARTMENT OF DEFENSE.

(a) IN GENERAL.—(1) Chapter 101 of title 10, United States

Code, is amended by adding at the end the following new section:

Reports.

Records.

110 STAT. 354 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘§ 2012. Support and services for eligible organizations and activities outside Department of Defense

‘‘(a) AUTHORITY TO PROVIDE SERVICES AND SUPPORT.—Under

regulations prescribed by the Secretary of Defense, the Secretary

of a military department may in accordance with this section

authorize units or individual members of the armed forces under

that Secretary’s jurisdiction to provide support and services to nonDepartment of Defense organizations and activities specified in

subsection (e), but only if— ‘‘(1) such assistance is authorized by a provision of law (other than this section); or

‘‘(2) the provision of such assistance is incidental to military

training.

‘‘(b) SCOPE OF COVERED ACTIVITIES SUBJECT TO SECTION.— This section does not—

‘‘(1) apply to the provision by the Secretary concerned, under regulations prescribed by the Secretary of Defense, of

customary community relations and public affairs activities

conducted in accordance with Department of Defense policy;

or

‘‘(2) prohibit the Secretary concerned from encouraging members of the armed forces under the Secretary’s jurisdiction

to provide volunteer support for community relations activities

under regulations prescribed by the Secretary of Defense.

‘‘(c) REQUIREMENT FOR SPECIFIC REQUEST.—Assistance under

subsection (a) may only be provided if— ‘‘(1) the assistance is requested by a responsible official of the organization to which the assistance is to be provided;

and

‘‘(2) the assistance is not reasonably available from a commercial entity or (if so available) the official submitting

the request for assistance certifies that the commercial entity

that would otherwise provide such services has agreed to the

provision of such services by the armed forces.

‘‘(d) RELATIONSHIP TO MILITARY TRAINING.—(1) Assistance

under subsection (a) may only be provided if the following requirements are met:

‘‘(A) The provision of such assistance— ‘‘(i) in the case of assistance by a unit, will accomplish valid unit training requirements; and ‘‘(ii) in the case of assistance by an individual member,

will involve tasks directly related to the specific military

occupational specialty of the member.

‘‘(B) The provision of such assistance will not adversely

affect the quality of training or otherwise interfere with the

ability of a member or unit of the armed forces to perform

the military functions of the member or unit. ‘‘(C) The provision of such assistance will not result in

a significant increase in the cost of the training.

‘‘(2) Subparagraph (A)(i) of paragraph (1) does not apply in

a case in which the assistance to be provided consists primarily

of military manpower and the total amount of such assistance

in the case of a particular project does not exceed 100 man-hours. ‘‘(e) ELIGIBLE ENTITIES.—The following organizations and activities are eligible for assistance under this section: ‘‘(1) Any Federal, regional, State, or local governmental

entity.

Regulations.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 355

‘‘(2) Youth and charitable organizations specified in section

508 of title 32.

‘‘(3) Any other entity as may be approved by the Secretary

of Defense on a case-by-case basis.

‘‘(f) REGULATIONS.—The Secretary of Defense shall prescribe

regulations governing the provision of assistance under this section.

The regulations shall include the following:

‘‘(1) Rules governing the types of assistance that may be

provided.

‘‘(2) Procedures governing the delivery of assistance that

ensure, to the maximum extent practicable, that such assistance

is provided in conjunction with, rather than separate from,

civilian efforts.

‘‘(3) Procedures for appropriate coordination with civilian

officials to ensure that the assistance—

‘‘(A) meets a valid need; and

‘‘(B) does not duplicate other available public services.

‘‘(4) Procedures to ensure that Department of Defense

resources are not applied exclusively to the program receiving

the assistance.

‘‘(g) ADVISORY COUNCILS.—(1) The Secretary of Defense shall

encourage the establishment of advisory councils at regional, State,

and local levels, as appropriate, in order to obtain recommendations

and guidance concerning assistance under this section from persons

who are knowledgeable about regional, State, and local conditions

and needs.

‘‘(2) The advisory councils should include officials from relevant

military organizations, representatives of appropriate local, State,

and Federal agencies, representatives of civic and social service

organizations, business representatives, and labor representatives.

‘‘(3) The Federal Advisory Committee Act (5 U.S.C. App.) shall

not apply to such councils.

‘‘(h) CONSTRUCTION OF PROVISION.—Nothing in this section

shall be construed as authorizing—

‘‘(1) the use of the armed forces for civilian law enforcement

purposes or for response to natural or manmade disasters;

or

‘‘(2) the use of Department of Defense personnel or

resources for any program, project, or activity that is prohibited

by law.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following

new item:

‘‘2012. Support and services for eligible organizations and activities outside Department of Defense.’’.

SEC. 573. NATIONAL GUARD CIVILIAN YOUTH OPPORTUNITIES PILOT

PROGRAM.

(a) TERMINATION.—The authority under subsection (a) of section

1091 of the National Defense Authorization Act for Fiscal Year

1993 (Public Law 102–484; 32 U.S.C. 501 note) to carry out a

pilot program under that section is hereby continued through the

end of the 18-month period beginning on the date of the enactment

of this Act and such authority shall terminate as of the end of

that period.

(b) LIMITATION ON NUMBER OF PROGRAMS.—During the period

beginning on the date of the enactment of this Act and ending

32 USC 501 note.

110 STAT. 356 PUBLIC LAW 104–106—FEB. 10, 1996

on the termination of the pilot program under subsection (a), the

number of programs carried out under subsection (d) of that section

as part of the pilot program may not exceed the number of such

programs as of September 30, 1995.

SEC. 574. TERMINATION OF FUNDING FOR OFFICE OF CIVIL-MILITARY

PROGRAMS IN OFFICE OF THE SECRETARY OF DEFENSE.

No funds may be obligated or expended after the date of the enactment of this Act (1) for the office that as of the date of

the enactment of this Act is designated, within the Office of the

Assistant Secretary of Defense for Reserve Affairs, as the Office

of Civil-Military Programs, or (2) for any other entity within the

Office of the Secretary of Defense that has an exclusive or principal

mission of providing centralized direction for activities under section

2012 of title 10, United States Code, as added by section 572.

TITLE VI—COMPENSATION AND OTHER

PERSONNEL BENEFITS

Subtitle A—Pay and Allowances

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

(a) RESCISSION OF PRIOR SECTION 1009 ADJUSTMENT.—The

adjustment made as of January 1, 1996, pursuant to section 4

of Executive Order No. 12984 (issued December 28, 1995), in elements of compensation of members of the uniformed services pursuant to section 1009 of title 37, United States Code, is hereby

rescinded.

(b) INCREASE IN BASIC PAY AND BAS.—The rates of basic pay

and basic allowance for subsistence of members of the uniformed

services, as in effect on December 31, 1995, are hereby increased

by 2.4 percent. (c) INCREASE IN BAQ.—The rates of basic allowance for quarters

of members of the uniformed services, as in effect on December

31, 1995, are hereby increased by 5.2 percent. (d) EFFECTIVE DATE.—This section shall take effect as of January 1, 1996.

SEC. 602. LIMITATION ON BASIC ALLOWANCE FOR SUBSISTENCE FOR

MEMBERS RESIDING WITHOUT DEPENDENTS 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 enlisted 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 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

37 USC 1009

note.

10 USC 2012

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 357

duty station. The Secretary concerned shall achieve the percentage

limitation specified in this paragraph 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 text composed of the second, third,

and fourth sentences as paragraph (2); and

(4) by designating the text composed of the fifth and sixth

sentences 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 Marine Corps—

(1) the number of members who reside without dependents

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 who reside without dependents in Government

quarters;

(3) a recommended maximum percentage of the members

residing without dependents in Government quarters at their

permanent duty station who should receive a basic allowance

for subsistence; and

(4) the reasons such maximum percentage is recommended.

SEC. 603. ELECTION OF BASIC ALLOWANCE FOR QUARTERS INSTEAD

OF ASSIGNMENT TO INADEQUATE QUARTERS.

(a) ELECTION AUTHORIZED.—Section 403(b) of title 37, United

States Code, is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(b)’’;

(2) by designating the second sentence as paragraph (2)

and, as so designated, by striking out ‘‘However, subject’’ and

inserting in lieu thereof ‘‘Subject’’; and

(3) by adding at the end the following new paragraph:

‘‘(3) A member without dependents who is in pay grade E–

6 and who is assigned to quarters of the United States that do

not meet the minimum adequacy standards established by the

Department of Defense for members in such pay grade, or to a

housing facility under the jurisdiction of a uniformed service that

does not meet such standards, may elect not to occupy such quarters

or facility and instead to receive the basic allowance for quarters

prescribed for the member’s pay grade by this section.’’.

110 STAT. 358 PUBLIC LAW 104–106—FEB. 10, 1996

(b) EFFECTIVE DATE.—The amendments made by this section

shall take effect on July 1, 1996.

SEC. 604. PAYMENT OF BASIC ALLOWANCE FOR QUARTERS TO MEMBERS IN PAY GRADE E–6 WHO ARE ASSIGNED TO SEA DUTY.

(a) PAYMENT AUTHORIZED.—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 this section

shall take effect on July 1, 1996.

SEC. 605. LIMITATION ON REDUCTION OF VARIABLE HOUSING ALLOWANCE FOR CERTAIN MEMBERS.

(a) LIMITATION ON REDUCTION IN VHA.—(1) Subsection (c)(3)

of section 403a of title 37, United States Code, is amended by

adding at the end the following new sentence: ‘‘However, so long

as a member of a uniformed service retains uninterrupted eligibility

to receive a variable housing allowance within an area and the

member’s certified housing costs are not reduced (as indicated by

certifications provided by the member under subsection (b)(4)), the

monthly amount of a variable housing allowance under this section

for the member within that area may not be reduced as a result

of systematic adjustments required by changes in housing costs

within that area.’’.

(2) The amendment made by paragraph (1) shall apply for

fiscal years after fiscal year 1995.

(b) 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 amounts of variable housing allowance necessary as a

result of the requirements of the second sentence of subsection

(c)(3).’’.

(c) 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.

(d) RESOLVING VHA INADEQUACIES IN HIGH HOUSING COST

AREAS.—If the Secretary of Defense determines that, despite the

amendments made by this section, inadequacies exist in the provision of variable housing allowances under section 403a of title

37, United States Code, the Secretary shall submit to Congress

a report containing a legislative proposal to address the inadequacies. The Secretary shall make the determination required by this

subsection and submit the report, if necessary, not later than May

31, 1996.

SEC. 606. CLARIFICATION OF LIMITATION ON ELIGIBILITY FOR FAMILY SEPARATION ALLOWANCE.

Section 427(b)(4) of title 37, United States Code, is amended

in the first sentence by inserting ‘‘paragraph (1)(A) of’’ after ‘‘not

entitled to an allowance under’’.

Reports.

Applicability.

37 USC 403a

note.

37 USC 403 note.

37 USC 403 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 359

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, 1997’’.

(b) SELECTED RESERVE ENLISTMENT BONUS.—Section 308c(e)

of title 37, United States Code, is amended by striking out ‘‘September 30, 1996’’ and inserting in lieu thereof ‘‘September 30, 1997’’.

(c) SELECTED RESERVE AFFILIATION BONUS.—Section 308e(e)

of title 37, United States Code, is amended by striking out ‘‘September 30, 1996’’ and inserting in lieu thereof ‘‘September 30, 1997’’.

(d) READY RESERVE ENLISTMENT AND REENLISTMENT BONUS.—

Section 308h(g) of title 37, United States Code, is amended by

striking out ‘‘September 30, 1996’’ and inserting in lieu thereof

‘‘September 30, 1997’’.

(e) PRIOR SERVICE ENLISTMENT BONUS.—Section 308i(i) of title

37, United States Code, is amended by striking out ‘‘September

30, 1996’’ and inserting in lieu thereof ‘‘September 30, 1997’’.

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, 1997’’.

(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, 1997’’.

(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, 1997’’.

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, 1997’’.

(b) REENLISTMENT BONUS FOR ACTIVE MEMBERS.—Section

308(g) of title 37, United States Code, is amended by striking

out ‘‘September 30, 1996’’ and inserting in lieu thereof ‘‘September

30, 1997’’.

(c) ENLISTMENT BONUSES FOR CRITICAL SKILLS.—Sections

308a(c) and 308f(c) of title 37, United States Code, are each

amended by striking out ‘‘September 30, 1996’’ and inserting in

lieu thereof ‘‘September 30, 1997’’.

(d) SPECIAL PAY FOR ENLISTED MEMBERS OF THE SELECTED

RESERVE ASSIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section

308d(c) of title 37, United States Code, is amended by striking

out ‘‘September 30, 1996’’ and inserting in lieu thereof ‘‘September

30, 1997’’.

110 STAT. 360 PUBLIC LAW 104–106—FEB. 10, 1996

(e) SPECIAL PAY FOR NUCLEAR QUALIFIED OFFICERS EXTENDING

PERIOD OF ACTIVE SERVICE.—Section 312(e) of title 37, United

States Code, is amended by striking out ‘‘September 30, 1996’’

and inserting in lieu thereof ‘‘September 30, 1997’’.

(f) NUCLEAR CAREER ACCESSION BONUS.—Section 312b(c) of

title 37, United States Code, is amended by striking out ‘‘September

30, 1996’’ and inserting in lieu thereof ‘‘September 30, 1997’’.

(g) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—Section

312c(d) of title 37, United States Code, is amended by striking

out ‘‘October 1, 1996’’ and inserting in lieu thereof ‘‘October 1,

1997’’.

(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,

1997’’.

(i) COVERAGE OF PERIOD OF LAPSED AGREEMENT AUTHORITY.—

(1) In the case of an officer described in section 301b(b) of title

37, United States Code, who executes an agreement described in

paragraph (2) during the 90-day period beginning on the date

of the enactment of this Act, the Secretary concerned may treat

the agreement for purposes of the retention bonus authorized under

the agreement as having been executed and accepted on the first

date on which the officer would have qualified for such an agreement had the amendment made by subsection (a) taken effect

on October 1, 1995.

(2) An agreement referred to in this subsection is a service

agreement with the Secretary concerned that is a condition for

the payment of a retention bonus under section 301b of title 37,

United States Code.

(3) For purposes of this subsection, the term ‘‘Secretary concerned’’ has the meaning given that term in section 101(5) of title

37, United States Code.

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.

37 USC 3016

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 361

‘‘(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, 1997.’’.

(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 provisions of section 613 of the National Defense

Authorization Act, Fiscal Year 1989, as in effect on the day before

the date of the enactment of this Act, shall continue to apply

to agreements entered into under such section before such date.

SEC. 615. HAZARDOUS DUTY INCENTIVE PAY FOR WARRANT OFFICERS AND ENLISTED MEMBERS SERVING AS AIR WEAPONS

CONTROLLERS.

(a) INCLUSION OF ADDITIONAL MEMBERS.—Subsection (a)(11)

of section 301 of title 37, United States Code, is amended by

striking out ‘‘an officer (other than a warrant officer)’’ and inserting

in lieu thereof ‘‘a member’’.

(b) CALCULATION OF HAZARDOUS DUTY INCENTIVE PAY.—The

table in subparagraph (A) of subsection (c)(2) of such section is

amended to read as follows:

‘‘Pay grade

Years of service as an air weapons controller

2 or less Over 2 Over 3 Over 4 Over 6 Over 8 Over 10

‘‘O–7 and

above ..... $200 $200 $200 $200 $200 $200 $200

‘‘O–6 .......... 225 250 300 325 350 350 350

‘‘O–5 .......... 200 250 300 325 350 350 350

‘‘O–4 .......... 175 225 275 300 350 350 350

‘‘O–3 .......... 125 156 188 206 350 350 350

‘‘O–2 .......... 125 156 188 206 250 300 300

‘‘O–1 .......... 125 156 188 206 250 250 250

‘‘W–4 ......... 200 225 275 300 325 325 325

‘‘W–3 ......... 175 225 275 300 325 325 325

‘‘W–2 ......... 150 200 250 275 325 325 325

‘‘W–1 ......... 100 125 150 175 325 325 325

‘‘E–9 .......... 200 225 250 275 300 300 300

‘‘E–8 .......... 200 225 250 275 300 300 300

‘‘E–7 .......... 175 200 225 250 275 275 275

‘‘E–6 .......... 156 175 200 225 250 250 250

‘‘E–5 .......... 125 156 175 188 200 200 200

‘‘E–4 and

below ..... 125 156 175 188 200 200 200

37 USC 302 note.

110 STAT. 362 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘Pay grade—

Continued

Years of service as an air weapons controller—Continued

Over 12 Over 14 Over 16 Over 18 Over 20 Over 22 Over 24 Over 25

‘‘O–7 and

above ..... $200 $200 $200 $200 $200 $200 $200 $110

‘‘O–6 .......... 350 350 350 350 300 250 250 225

‘‘O–5 .......... 350 350 350 350 300 250 250 225

‘‘O–4 .......... 350 350 350 350 300 250 250 225

‘‘O–3 .......... 350 350 350 300 275 250 225 200

‘‘O–2 .......... 300 300 300 275 245 210 200 180

‘‘O–1 .......... 250 250 250 245 210 200 180 150

‘‘W–4 ......... 325 325 325 325 276 250 225 200

‘‘W–3 ......... 325 325 325 325 325 250 225 200

‘‘W–2 ......... 325 325 325 325 275 250 225 200

‘‘W–1 ......... 325 325 325 325 275 250 225 200

‘‘E–9 .......... 300 300 300 300 275 230 200 200

‘‘E–8 .......... 300 300 300 300 265 230 200 200

‘‘E–7 .......... 300 300 300 300 265 230 200 200

‘‘E–6 .......... 300 300 300 300 265 230 200 200

‘‘E–5 .......... 250 250 250 250 225 200 175 150

‘‘E–4 and

below ..... 200 200 200 200 175 150 125 125’’.

(c) CONFORMING AMENDMENTS.—Subsection (c)(2) of such section is further amended—

(1) by striking out ‘‘an officer’’ each place it appears and

inserting in lieu thereof ‘‘a member’’; and

(2) by striking out ‘‘the officer’’ each place it appears and

inserting in lieu thereof ‘‘the member’’.

SEC. 616. AVIATION CAREER INCENTIVE PAY.

(a) YEARS OF OPERATIONAL FLYING DUTIES REQUIRED.—Paragraph (4) of section 301a(a) of title 37, United States Code, is

amended in the first sentence by striking out ‘‘9’’ and inserting

in lieu thereof ‘‘8’’.

(b) EXERCISE OF WAIVER AUTHORITY.—Paragraph (5) of such

section is amended by inserting after the second sentence the following new sentence: ‘‘The Secretary concerned may not delegate the

authority in the preceding sentence to permit the payment of incentive pay under this subsection.’’.

SEC. 617. CLARIFICATION OF AUTHORITY TO PROVIDE SPECIAL PAY

FOR NURSES.

Section 302c(d)(1) of title 37, United States Code, is amended—

(1) by striking out ‘‘or’’ after ‘‘Air Force,’’; and

(2) by inserting before the semicolon the following: ‘‘, an

officer of the Nurse Corps of the Army or Navy, or an officer

of the Air Force designated as a nurse’’.

SEC. 618. CONTINUOUS ENTITLEMENT TO CAREER SEA PAY FOR

CREW MEMBERS OF SHIPS DESIGNATED AS TENDERS.

Subparagraph (A) of section 305a(d)(1) of title 37, United States

Code, is amended to read as follows:

‘‘(A) while permanently or temporarily assigned to a ship,

ship-based staff, or ship-based aviation unit and—

‘‘(i) while serving on a ship the primary mission of

which is accomplished while under way;

‘‘(ii) while serving as a member of the off-crew of a

two-crewed submarine; or

‘‘(iii) while serving as a member of a tender-class ship

(with the hull classification of submarine or destroyer);

or’’.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 363

SEC. 619. 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. REPEAL OF REQUIREMENT REGARDING CALCULATION OF

ALLOWANCES ON BASIS OF MILEAGE TABLES.

Section 404(d)(1)(A) of title 37, United States Code, is amended

by striking out ‘‘, based on distances established over the shortest

usually traveled route, under mileage tables prepared under the

direction of the Secretary of Defense’’.

SEC. 622. DEPARTURE ALLOWANCES.

(a) ELIGIBILITY WHEN EVACUATION AUTHORIZED BUT NOT

ORDERED.—Section 405a(a) of title 37, United States Code, is

amended by striking out ‘‘ordered’’ each place it appears and inserting in lieu thereof ‘‘authorized or ordered’’. (b) APPLICATION OF AMENDMENT.—The amendment made by subsection (a) shall apply with respect to persons authorized or

ordered to depart as described in section 405a(a) of title 37, United

States Code, on or after October 1, 1995.

SEC. 623. TRANSPORTATION OF NONDEPENDENT CHILD FROM MEMBER’S STATION OVERSEAS AFTER LOSS OF DEPENDENT

STATUS WHILE OVERSEAS.

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’’.

SEC. 624. 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:

37 USC 405a

note.

37 USC 307 note.

110 STAT. 364 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(5) the member is ordered to move in connection with

the closure or realignment of a military installation and, as

a result, the member’s dependents actually move or, in the

case of a member without dependents, the member actually

moves.’’.

(b) CONFORMING AMENDMENTS.—(1) The last sentence of such

subsection is amended—

(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) Subsection (b) of such section is amended—

(A) by striking out ‘‘subsection (a)(3) or (a)(4)(B)’’ in the

first sentence and inserting in lieu thereof ‘‘paragraph (3) or

(4)(B) of subsection (a)’’; and

(B) by striking out ‘‘subsection (a)(1)’’ in the second sentence

and inserting in lieu thereof ‘‘paragraph (1) or (5) of subsection

(a)’’.

Subtitle D—Retired Pay, Survivor Benefits,

and Related Matters

SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING

ADJUSTMENTS FOR FISCAL YEARS 1996, 1997, AND 1998.

(a) ADJUSTMENT OF EFFECTIVE DATES.—Subparagraph (B) of

section 1401a(b)(2) of title 10, United States Code, is amended

to read as follows:

‘‘(B) SPECIAL RULES FOR FISCAL YEARS 1996 AND 1998.—

‘‘(i) FISCAL YEAR 1996.—In the case of the increase

in retired pay that, pursuant to paragraph (1), becomes

effective on December 1, 1995, the initial month for

which such increase is payable as part of such retired

pay shall (notwithstanding such December 1 effective

date) be March 1996.

‘‘(ii) FISCAL YEAR 1998.—In the case of the increase

in retired pay that, pursuant to paragraph (1), becomes

effective on December 1, 1997, the initial month for

which such increase is payable as part of such retired

pay shall (notwithstanding such December 1 effective

date) be September 1998.’’.

(b) CONTINGENT ALTERNATIVE DATE FOR FISCAL YEAR 1998.—

(1) If a civil service retiree cola that becomes effective during

fiscal year 1998 becomes effective on a date other than the date

on which a military retiree cola during that fiscal year is specified

to become effective under subparagraph (B) of section 1401a(b)(2)

of title 10, United States Code, as amended by subsection (a),

then the increase in military retired and retainer pay shall become

payable as part of such retired and retainer pay effective on the

same date on which such civil service retiree cola becomes effective

(notwithstanding the date otherwise specified in such subparagraph

(B)).

(2) Paragraph (1) does not apply with respect to the retired

pay of a person retired under chapter 61 of title 10, United States

Code.

(3) For purposes of this subsection:

10 USC 1401a

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 365

(A) The term ‘‘civil service retiree cola’’ means an increase

in annuities under the Civil Service Retirement System either

under section 8340(b) of title 5, United States Code, or pursuant

to a law providing a general increase in such annuities.

(B) The term ‘‘military retiree cola’’ means an adjustment

in retired and retainer pay pursuant to section 1401a(b) of

title 10, United States Code.

(c) REPEAL OF PRIOR CONDITIONAL ENACTMENT.—Section

8114A(b) of Public Law 103–335 (108 Stat. 2648) is repealed.

SEC. 632. DENIAL OF NON-REGULAR SERVICE RETIRED PAY FOR

RESERVES RECEIVING CERTAIN COURT-MARTIAL SENTENCES.

(a) IN GENERAL.—(1) Chapter 1223 of title 10, United States

Code, is amended by adding at the end the following new section:

‘‘§ 12740. Eligibility: denial upon certain punitive discharges

or dismissals

‘‘A person who—

‘‘(1) is convicted of an offense under the Uniform Code

of Military Justice (chapter 47 of this title) and whose sentence

includes death; or

‘‘(2) is separated pursuant to sentence of a court-martial

with a dishonorable discharge, a bad conduct discharge, or

(in the case of an officer) a dismissal,

is not eligible for retired pay under this chapter.’’.

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

is amended by adding at the end the following new item:

‘‘12740. Eligibility: denial upon certain punitive discharges or dismissals.’’.

(b) EFFECTIVE DATE.—Section 12740 of title 10, United States

Code, as added by subsection (a), shall apply with respect to courtmartial sentences adjudged after the date of the enactment of

this Act.

SEC. 633. REPORT ON PAYMENT OF ANNUITIES FOR CERTAIN MILITARY SURVIVING SPOUSES.

(a) STUDY REQUIRED.—(1) The Secretary of Defense shall conduct a study to determine the number of potential beneficiaries

there would be if Congress were to enact authority for the Secretary

of the military department concerned to pay an annuity to the

qualified surviving spouse of each member of the Armed Forces

who—

(A) died before March 21, 1974, and was entitled to retired

or retainer pay on the date of death; or

(B) was a member of a reserve component who died during

the period beginning on September 21, 1972, and ending on

October 1, 1978, and at the time of death would have been

entitled to retired pay under chapter 67 of title 10, United

States Code, but for the fact that he was under 60 years

of age.

(2) A qualified surviving spouse for purposes of paragraph

(1) is a surviving spouse who has not remarried and who is not

eligible for an annuity under section 4 of Public Law 92–425

(10 U.S.C. 1448 note).

(b) REQUIRED DETERMINATIONS.—As part of the study under

subsection (a), the Secretary shall determine the following:

10 USC 12740

note.

10 USC 1401a,

1401a note.

110 STAT. 366 PUBLIC LAW 104–106—FEB. 10, 1996

(1) The number of unremarried surviving spouses of deceased members and deceased former members of the Armed

Forces referred to in subparagraph (A) of subsection (a)(1)

who would be eligible for an annuity under authority described

in such subsection.

(2) The number of unremarried surviving spouses of deceased members and deceased former members of reserve

components referred to in subparagraph (B) of subsection (a)(1)

who would be eligible for an annuity under authority described

in such subsection.

(3) The number of persons in each group of unremarried former spouses described in paragraphs (1) and (2) who are

receiving a widow’s insurance benefit or a widower’s insurance

benefit under title II of the Social Security Act on the basis

of employment of a deceased member or deceased former member referred to in subsection (a)(1).

(c) REPORT.—Not later than March 1, 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 report on the results of the study under this

section. The Secretary shall include in the report a recommendation

on the amount of the annuity that should be authorized to be

paid under any authority described in subsection (a)(1), together

with a recommendation on whether the annuity should be adjusted

annually to offset increases in the cost of living.

SEC. 634. PAYMENT OF BACK QUARTERS AND SUBSISTENCE ALLOWANCES TO WORLD WAR II VETERANS WHO SERVED AS

GUERRILLA FIGHTERS IN THE PHILIPPINES.

(a) IN GENERAL.—The Secretary of the military department concerned shall pay, upon request, to an individual described in

subsection (b) the amount determined with respect to that individual under subsection (c).

(b) COVERED INDIVIDUALS.—A payment under subsection (a) shall be made to any individual who as a member of the Armed

Forces during World War II— (1) was captured on the Island of Bataan in the territory of the Philippines by Japanese forces; (2) participated in the Bataan Death March;

(3) escaped from captivity; and

(4) served as a guerrilla fighter in the Philippines during the period from January 1942 through February 1945.

(c) AMOUNT TO BE PAID.—The amount of a payment under subsection (a) shall be the amount of quarters and subsistence

allowance which accrued to an individual described in subsection

(b) during the period specified in paragraph (4) of subsection (b)

and which was not paid to that individual. The Secretary shall

apply interest compounded at the three-month Treasury bill rate.

(d) PAYMENT TO SURVIVORS.—In the case of any individual described in subsection (b) who is deceased, payment under this

section with respect to that individual shall be made to that individual’s nearest surviving relative, as determined by the Secretary

concerned.

SEC. 635. AUTHORITY FOR RELIEF FROM PREVIOUS OVERPAYMENTS

UNDER MINIMUM INCOME WIDOWS PROGRAM.

(a) AUTHORITY.—The Secretary of Defense may waive recovery

by the United States of any overpayment by the United States

10 USC 1448

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 367

described in subsection (b). In the case of any such waiver, any

debt to the United States arising from such overpayment is forgiven. (b) COVERED OVERPAYMENTS.—Subsection (a) applies in the

case of an overpayment by the United States that—

(1) was made before the date of the enactment of this

Act under section 4 of Public Law 92–425 (10 U.S.C. 1448

note); and

(2) is attributable to failure by the Department of Defense

to apply the eligibility provisions of subsection (a) of such

section in the case of the person to whom the overpayment

was made.

SEC. 636. TRANSITIONAL COMPENSATION FOR DEPENDENTS OF MEMBERS OF THE ARMED FORCES SEPARATED FOR DEPENDENT ABUSE.

(a) COVERAGE OF PROGRAM.—Subsection (a) of section 1059

of title 10, United States Code, is amended by adding at the end

the following: ‘‘Upon establishment of such a program, the program

shall apply in the case of each such member described in subsection

(b) who is under the jurisdiction of the Secretary establishing the

program.’’.

(b) CLARIFICATION OF PAYMENT TO DEPENDENTS OF MEMBERS

NOT DISCHARGED.—Subsection (d) of such section is amended—

(1) in the matter preceding paragraph (1)—

(A) by striking out ‘‘any case of a separation from

active duty as described in subsection (b)’’ and inserting

in lieu thereof ‘‘the case of any individual described in

subsection (b)’’; and

(B) by striking ‘‘former member’’ and inserting in lieu

thereof ‘‘individual’’;

(2) in paragraph (1)—

(A) by striking out ‘‘former member’’ and inserting

in lieu thereof ‘‘individual’’; and

(B) by striking out ‘‘member’’ and inserting in lieu

thereof ‘‘individual’’;

(3) in paragraph (2), by striking out ‘‘former member’’ both

places it appears and inserting in lieu thereof ‘‘individual

described in subsection (b)’’;

(4) in paragraph (3), by striking out ‘‘former member’’ and

inserting in lieu thereof ‘‘individual described in subsection

(b)’’; and

(5) in paragraph (4), by striking out ‘‘member’’ both places

it appears and inserting in lieu thereof ‘‘individual described

in subsection (b)’’.

(c) EFFECTIVE DATE.—Section 554(b) of the National Defense

Authorization Act for Fiscal Year 1994 (10 U.S.C. 1059 note) is

amended—

(1) in paragraph (1), by striking out ‘‘on or after the date

of the enactment of this Act’’ and inserting in lieu thereof

‘‘after November 29, 1993’’; and

(2) by striking out paragraph (2) and inserting in lieu

thereof the following:

‘‘(2) Payments of transitional compensation under that section

in the case of any person eligible to receive payments under that

section shall be made for each month after November 1993 for

which that person may be paid transitional compensation in accordance with that section.’’.

110 STAT. 368 PUBLIC LAW 104–106—FEB. 10, 1996

Subtitle E—Other Matters

SEC. 641. PAYMENT TO SURVIVORS OF DECEASED MEMBERS FOR ALL

LEAVE ACCRUED.

(a) INAPPLICABILITY OF 60-DAY LIMITATION.—Section 501(d) of

title 37, United States Code, is amended—

(1) in paragraph (1), by striking out the third sentence;

and

(2) by striking out paragraph (2) and inserting in lieu

thereof the following new paragraph:

‘‘(2) The limitations in the second sentence of subsection (b)(3),

subsection (f), and the second sentence of subsection (g) shall not

apply with respect to a payment made under this subsection.’’.

(b) CONFORMING AMENDMENT.—Section 501(f) of such title is

amended by striking out ‘‘, (d),’’ in the first sentence.

SEC. 642. REPEAL OF 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.—Section 1008(a)

of title 37, United States Code, is amended by striking out the

second sentence.

(c) REPORT ON QUADRENNIAL REVIEW OF ADJUSTMENTS IN COMPENSATION.—Section 1009(f) of such title is amended by striking

out ‘‘of this title,’’ and all that follows through the period at the

end and inserting in lieu thereof ‘‘of this title.’’.

SEC. 643. RECOUPMENT OF ADMINISTRATIVE EXPENSES IN GARNISHMENT ACTIONS.

(a) IN GENERAL.—Subsection (j) of section 5520a of title 5,

United States Code, is amended by striking out paragraph (2)

and inserting in lieu thereof the following new paragraph:

‘‘(2) Such regulations shall provide that an agency’s administrative costs incurred in executing legal process to which the agency

is subject under this section shall be deducted from the amount

withheld from the pay of the employee concerned pursuant to the

legal process.’’.

(b) INVOLUNTARY ALLOTMENTS OF PAY OF MEMBERS OF THE

UNIFORMED SERVICES.—Subsection (k) of such section is amended—

(1) by redesignating paragraph (3) as paragraph (4); and

(2) by inserting after paragraph (2) the following new

paragraph:

‘‘(3) Regulations under this subsection may also provide that

the administrative costs incurred in establishing and maintaining

an involuntary allotment be deducted from the amount withheld

from the pay of the member of the uniformed services concerned

pursuant to such regulations.’’.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 369

(c) DISPOSITION OF AMOUNTS WITHHELD FOR ADMINISTRATIVE

EXPENSES.—Such section is further amended by adding at the end the following: ‘‘(l) The amount of an agency’s administrative costs deducted under regulations prescribed pursuant to subsection (j)(2) or (k)(3)

shall be credited to the appropriation, fund, or account from which

such administrative costs were paid.’’.

SEC. 644. REPORT ON EXTENDING TO JUNIOR NONCOMMISSIONED

OFFICERS PRIVILEGES PROVIDED FOR SENIOR NONCOMMISSIONED OFFICERS.

(a) REPORT REQUIRED.—Not later than February 1, 1996, the Secretary of Defense shall submit to Congress a report containing

the determinations of the Secretary regarding whether, in order

to improve the working conditions of noncommissioned officers in

pay grades E–5 and E–6, any of the privileges afforded noncommissioned officers in any of the pay grades above E–6 should be

extended to noncommissioned officers in pay grades E–5 and

E–6.

(b) SPECIFIC RECOMMENDATION REGARDING ELECTION OF

BAS.—The Secretary shall include in the report a determination

on whether noncommissioned officers in pay grades E–5 and

E–6 should be afforded the same privilege as noncommissioned

officers in pay grades above E–6 to elect to mess separately and

receive the basic allowance for subsistence.

(c) ADDITIONAL MATTERS.—The report shall also contain a

discussion of the following matters:

(1) The potential costs of extending additional privileges

to noncommissioned officers in pay grades E–5 and E–6.

(2) The effects on readiness that would result from extending the additional privileges.

(3) The options for extending the privileges on an incremental basis over an extended period.

(d) RECOMMENDED LEGISLATION.—The Secretary shall include

in the report any recommended legislation that the Secretary

considers necessary in order to authorize extension of a privilege

as determined appropriate under subsection (a).

SEC. 645. 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. 646. AUTOMATIC MAXIMUM COVERAGE UNDER SERVICEMEN’S

GROUP LIFE INSURANCE.

Effective April 1, 1996, section 1967 of title 38, United States

Code, is amended—

Effective date.

110 STAT. 370 PUBLIC LAW 104–106—FEB. 10, 1996

(1) in subsections (a) and (c), by striking out ‘‘$100,000’’

each place it appears and inserting in lieu thereof in each

instance ‘‘$200,000’’;

(2) by striking out subsection (e); and

(3) by redesignating subsection (f) as subsection (e).

SEC. 647. TERMINATION OF SERVICEMEN’S GROUP LIFE INSURANCE

FOR MEMBERS OF THE READY RESERVE WHO FAIL TO

PAY PREMIUMS.

(a) AUTHORITY.—Section 1969(a)(2) of title 38, United States

Code, is amended—

(1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and

(2) by adding at the end the following:

‘‘(B) If an individual who is required pursuant to subparagraph

(A) to make a direct remittance of costs to the Secretary concerned

fails to make the required remittance within 60 days of the date

on which such remittance is due, such individual’s insurance with

respect to which such remittance is required shall be terminated

by the Secretary concerned. Such termination shall be made by

written notice to the individual’s official address and shall be effective 60 days after the date of such notice. Such termination of

insurance may be vacated if, before the effective date of termination,

the individual remits all amounts past due for such insurance

and demonstrates to the satisfaction of the Secretary concerned

that the failure to make timely remittances was justifiable.’’.

(b) CONFORMING AMENDMENT.—Section 1968(a) is amended by

inserting ‘‘(or discontinued pursuant to section 1969(a)(2)(B) of this

title)’’ in the matter preceding paragraph (1) after ‘‘upon the written

request of the insured’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall take effect on April 1, 1996.

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;’’.

38 USC 1968

note.

Notice.

Effective date.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 371

SEC. 702. CORRECTION OF INEQUITIES IN MEDICAL AND DENTAL

CARE AND DEATH AND DISABILITY BENEFITS FOR CERTAIN RESERVES.

(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 inactiveduty training, at or in the vicinity of the site of the inactiveduty training, if the site is outside reasonable commuting

distance from the member’s residence.’’.

(b) RECOVERY, CARE, AND DISPOSITION OF REMAINS.—Section

1481(a)(2) of title 10, United States Code, is amended—

(1) in subparagraph (C), by striking out ‘‘or’’ at the end

of the subparagraph;

(2) by redesignating subparagraph (D) as subparagraph

(E); and

(3) by inserting after subparagraph (C) the following new

subparagraph:

‘‘(D) remaining overnight, between successive periods

of inactive-duty training, at or in the vicinity of the site

of the inactive-duty training, if 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, if 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, if 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

110 STAT. 372 PUBLIC LAW 104–106—FEB. 10, 1996

(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, if the

site is outside reasonable commuting distance from the

member’s residence.’’.

SEC. 703. MEDICAL CARE FOR SURVIVING DEPENDENTS OF RETIRED

RESERVES WHO DIE BEFORE AGE 60.

(a) CHANGE IN ELIGIBILITY REQUIREMENTS.—Paragraph (2) of

section 1076(b) of title 10, United States Code, is amended—

(1) by striking out ‘‘death (A) would’’ and inserting in

lieu thereof ‘‘death would’’; and

(2) by striking out ‘‘, and (B) had elected to participate

in the Survivor Benefit Plan established under subchapter II

of chapter 73 of this title’’.

(b) CONFORMING AMENDMENTS.—Such paragraph is further

amended—

(1) in the matter following paragraph (2), by striking out

‘‘clause (2)’’ the first place it appears and inserting in lieu

thereof ‘‘paragraph (2)’’; and

(2) by striking out the second sentence.

SEC. 704. MEDICAL AND DENTAL CARE FOR MEMBERS OF THE

SELECTED RESERVE ASSIGNED TO EARLY DEPLOYING

UNITS OF THE ARMY SELECTED RESERVE.

(a) ANNUAL MEDICAL AND DENTAL SCREENINGS AND CARE.—

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) 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.

SEC. 705. DENTAL INSURANCE FOR MEMBERS OF THE SELECTED

RESERVE.

(a) PROGRAM AUTHORIZATION.—(1) Chapter 55 of title 10,

United States Code, is amended by inserting after section 1076a

the following new section:

‘‘§ 1076b. Selected Reserve dental insurance

‘‘(a) AUTHORITY TO ESTABLISH PLAN.—The Secretary of Defense

shall establish a dental insurance plan for members of the Selected

10 USC 10105

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 373

Reserve of the Ready Reserve. The plan shall provide for voluntary

enrollment and for premium sharing between the Department of

Defense and the members enrolled in the plan. The plan shall

be administered under regulations prescribed by the Secretary of

Defense.

‘‘(b) PREMIUM SHARING.—(1) A member enrolling in the dental

insurance plan shall pay a share of the premium charged for the

insurance coverage. The member’s share may not exceed $25 per

month.

‘‘(2) The Secretary of Defense may reduce the monthly premium

required to be paid by enlisted members under paragraph (1) if

the Secretary determines that the reduction is appropriate in order

to assist enlisted members to participate in the dental insurance

plan.

‘‘(3) A member’s share of the premium for coverage by the

dental insurance plan shall be deducted and withheld from the

basic pay payable to the member for inactive duty training and

from the basic pay payable to the member for active duty.

‘‘(4) The Secretary of Defense shall pay the portion of the

premium charged for coverage of a member under the dental insurance plan that exceeds the amount paid by the member.

‘‘(c) BENEFITS AVAILABLE UNDER THE PLAN.—The dental insurance plan shall provide benefits for basic dental care and treatment,

including diagnostic services, preventative services, basic restorative

services, and emergency oral examinations.

‘‘(d) TERMINATION OF COVERAGE.—The coverage of a member

by the dental insurance plan shall terminate on the last day of

the month in which the member is discharged, transfers to the

Individual Ready Reserve, Standby Reserve, or Retired Reserve,

or is ordered to active duty for a period of more than 30 days.’’.

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

is amended by inserting after the item relating to section 1076a

the following:

‘‘1076b. Selected Reserve dental insurance.’’.

(b) IMPLEMENTATION.—Beginning not later than October 1,

1996, the Secretary of Defense shall offer members of the Selected

Reserve the opportunity to enroll in the dental insurance plan

required under section 1076b of title 10, United States Code (as

added by subsection (a)). During fiscal year 1996, the Secretary

shall collect such information and complete such planning and

other preparations as are necessary to offer and administer the

dental insurance plan by that date. The activities undertaken by

the Secretary under this subsection during fiscal year 1996 may

include—

(1) surveys; and

(2) tests, in not more than three States, of a dental insurance plan or alternative dental insurance plans meeting the

requirements of section 1076b of title 10, United States Code.

SEC. 706. PERMANENT AUTHORITY TO CARRY OUT SPECIALIZED

TREATMENT FACILITY PROGRAM.

Section 1105 of title 10, United States Code, is amended by

striking out subsection (h).

10 USC 1076b

note.

Regulations.

110 STAT. 374 PUBLIC LAW 104–106—FEB. 10, 1996

Subtitle B—TRICARE Program

SEC. 711. DEFINITION OF TRICARE PROGRAM.

For purposes of this subtitle, 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. 712. 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. 713. STAGGERED PAYMENT OF ENROLLMENT FEES FOR TRICARE

PROGRAM.

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 quarterly basis, any enrollment fee required for such participation.’’.

SEC. 714. REQUIREMENT OF BUDGET NEUTRALITY FOR TRICARE PROGRAM 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.’’.

10 USC 1073

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 375

SEC. 715. 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—

(1) 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;

and

(2) to appropriate members of the support staff of the

treatment facility who will be responsible for daily operation

of the TRICARE program.

(b) 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. 716. PILOT PROGRAM OF INDIVIDUALIZED RESIDENTIAL MENTAL HEALTH SERVICES.

(a) PROGRAM REQUIRED.—(1) During fiscal year 1996, the Secretary of Defense, in consultation with the other administering

Secretaries under chapter 55 of title 10, United States Code, shall

implement a pilot program to provide residential and wraparound

services to children described in paragraph (2) who are in need

of mental health services. The Secretary shall implement the pilot

program for an initial period of at least two years in a military

health care region in which the TRICARE program has been

implemented.

(2) A child shall be eligible for selection to participate in the

pilot program if the child is a dependent (as described in subparagraph (D) or (I) of section 1072(2) of title 10, United States Code)

who—

(A) is eligible for health care under section 1079 or 1086

of such title; and

(B) has a serious emotional disturbance that is generally

regarded as amenable to treatment.

(b) WRAPAROUND SERVICES DEFINED.—For purposes of this section, the term ‘‘wraparound services’’ means individualized mental

health services that are provided principally to allow a child to

remain in the family home or other least-restrictive and leastcostly setting, but also are provided as an aftercare planning service

for children who have received acute or residential care. Such

term includes nontraditional mental health services that will assist

the child to be maintained in the least-restrictive and least-costly

setting.

(c) PILOT PROGRAM AGREEMENT.—Under the pilot program the

Secretary of Defense shall enter into one or more agreements that

require a mental health services provider under the agreement—

(1) to provide wraparound services to a child described

in subsection (a)(2);

(2) to continue to provide such services as needed during

the period of the agreement even if the child moves to another

location within the same TRICARE program region during

that period; and

Children and

youth.

10 USC 1073

note.

10 USC 1073

note.

110 STAT. 376 PUBLIC LAW 104–106—FEB. 10, 1996

(3) to share financial risk by accepting as a maximum annual payment for such services a case-rate reimbursement

not in excess of the amount of the annual standard CHAMPUS

residential treatment benefit payable (as determined in accordance with section 8.1 of chapter 3 of volume II of the CHAMPUS

policy manual).

(d) REPORT.—Not later than March 1, 1998, 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 program carried out under this

section. The report shall contain— (1) an assessment of the effectiveness of the program; and

(2) the Secretary’s views regarding whether the program should be implemented throughout the military health care

system.

SEC. 717. EVALUATION AND REPORT ON TRICARE PROGRAM

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— (1) the impact of the TRICARE program on military retirees with regard to access, costs, and quality of health care services;

and

(2) identify noncatchment areas in which the health maintenance organization option of the TRICARE program is

available or is proposed to become available.

(b) ENTITY TO CONDUCT EVALUATION.—The Secretary may use a federally funded research and development center to conduct

the evaluation required by subsection (a). (c) ANNUAL REPORT.—Not later than March 1, 1997, and each

March 1 thereafter, the Secretary shall submit to Congress a report

describing the results of the evaluation under subsection (a) during

the preceding year.

SEC. 718. SENSE OF CONGRESS REGARDING ACCESS TO HEALTH CARE

UNDER TRICARE PROGRAM FOR COVERED BENEFICIARIES

WHO ARE MEDICARE ELIGIBLE.

(a) FINDINGS.—Congress finds the following: (1) Medical care provided in facilities of the uniformed

services is generally less expensive to the Federal Government

than the same care provided at Government expense in the

private sector. (2) Covered beneficiaries under the military health care

provisions of chapter 55, United States Code, who are eligible

for medicare under title XVIII of the Social Security Act (42

U.S.C. 1395 et seq.) deserve health care options that empower

them to choose the health plan that best fits their needs.

(b) SENSE OF CONGRESS.—In light of the findings specified in subsection (a), it is the sense of Congress that— (1) the Secretary of Defense should develop a program

to ensure that such covered beneficiaries who reside in a region

in which the TRICARE program has been implemented con10 USC 1073

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 377

tinue to have adequate access to health care services after

the implementation of the TRICARE program; and (2) as a means of ensuring such access, the budget for

fiscal year 1997 submitted by the President under section 1105

of title 31, United States Code, should provide for reimbursement by the Health Care Financing Administration to the

Department of Defense for health care services provided to

such covered beneficiaries in medical treatment facilities of

the Department of Defense.

Subtitle C—Uniformed Services Treatment

Facilities

SEC. 721. DELAY OF TERMINATION OF STATUS OF CERTAIN FACILITIES AS UNIFORMED SERVICES TREATMENT FACILITIES.

Section 1252(e) of the Department of Defense Authorization

Act, 1984 (42 U.S.C. 248d(e)) is amended by striking out ‘‘December

31, 1996’’ in the first sentence and inserting in lieu thereof ‘‘September 30, 1997’’.

SEC. 722. LIMITATION ON EXPENDITURES TO SUPPORT UNIFORMED

SERVICES TREATMENT FACILITIES.

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.—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 fiscal year.’’.

SEC. 723. APPLICATION OF CHAMPUS PAYMENT RULES IN CERTAIN

CASES.

Section 1074 of title 10, United States Code, is amended by

adding at the end the following new subsection:

‘‘(d)(1) The Secretary of Defense may require, by regulation,

a private CHAMPUS provider to apply the CHAMPUS payment

rules (subject to any modifications considered appropriate by the

Secretary) in imposing charges for health care that the private

CHAMPUS provider provides to a member of the uniformed services

who is enrolled in a health care plan of a facility deemed to

be a facility of the uniformed services under section 911(a) of

the Military Construction Authorization Act, 1982 (42 U.S.C.

248c(a)) when the health care is provided outside the catchment

area of the facility.

‘‘(2) In this subsection:

‘‘(A) The term ‘private CHAMPUS provider’ means a private facility or health care provider that is a health care provider under the Civilian Health and Medical Program of the

Uniformed Services.

‘‘(B) The term ‘CHAMPUS payment rules’ means the payment rules referred to in subsection (c).

‘‘(3) The Secretary of Defense shall prescribe regulations under

this subsection after consultation with the other administering Secretaries.’’.

Regulations.

110 STAT. 378 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 724. 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.

(3) For purposes of this subsection, the term ‘‘Uniformed Services Treatment Facility’’ means a facility deemed to be a facility

of the uniformed services by virtue of section 911(a) of the Military

Construction Authorization Act, 1982 (42 U.S.C. 248c(a)).

SEC. 725. 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) The Secretary

of Defense shall develop a plan under which Uniformed Services

Treatment Facilities could be included, before the expiration

date of the participation agreements entered into under this

section, 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

42 USC 248c

note.

42 USC 248c

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 379

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 Secretary shall submit the plan developed under

this paragraph to Congress not later than March 1, 1996.

‘‘(C) The plan developed under this paragraph shall be

consistent with the requirements specified in paragraph (4).

If the plan is not submitted to Congress by the expiration

date of the participation agreements entered into under this

section, the participation agreements shall remain in effect,

at the option of the Uniformed Services Treatment Facilities,

until the end of the 180-day period beginning on the date

the plan is finally submitted.

‘‘(D) 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. 726. 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) October 1, 1996.

(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.—(1) 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

42 USC 248c

note.

110 STAT. 380 PUBLIC LAW 104–106—FEB. 10, 1996

(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.

SEC. 727. ELIMINATION OF UNNECESSARY ANNUAL REPORTING

REQUIREMENT REGARDING UNIFORMED SERVICES

TREATMENT FACILITIES.

Section 1252 of the Department of Defense Authorization Act,

1984 (42 U.S.C. 248d), is amended by striking out subsection (d).

Subtitle D—Other Changes to Existing

Laws Regarding Health Care Management

SEC. 731. MAXIMUM ALLOWABLE PAYMENTS TO INDIVIDUAL HEALTHCARE 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) the amount equivalent to the 80th percentile of billed

charges made for similar services in the same locality during

the 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 Secretary determines to be necessary to assure that

covered beneficiaries retain adequate access to health care services.

Such exceptions may include the payment of amounts higher than

the amount allowed under paragraph (1) when enrollees in managed

care programs obtain covered emergency services from

nonparticipating providers. To provide a suitable transition from

the payment methodologies 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 below the amount allowed for the same

service during the immediately preceding 12-month period (or other

period as established by the Secretary of Defense).

Regulations.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 381

‘‘(5) The Secretary of Defense, in consultation with the other administering Secretaries, shall prescribe regulations to establish

limitations (similar to the 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 sub- section 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. 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. In developing the notification mechanism, the administering Secretaries

shall consult with the administrator of the Health Care Financing

Administration.’’.

SEC. 733. PERSONAL SERVICES CONTRACTS FOR MEDICAL TREATMENT FACILITIES OF THE COAST GUARD.

(a) CONTRACTING AUTHORITY.—Section 1091(a) of title 10,

United States Code, is amended—

(1) by inserting after ‘‘Secretary of Defense’’ the following:

‘‘, with respect to medical treatment facilities of the Department

of Defense, and the Secretary of Transportation, with respect

to medical treatment facilities of the Coast Guard when the

Coast Guard is not operating as a service in the Navy,’’; and (2) by striking out ‘‘medical treatment facilities of the

Department of Defense’’ and inserting in lieu thereof ‘‘such

facilities’’.

(b) RATIFICATION OF EXISTING CONTRACTS.—Any exercise of

authority under section 1091 of title 10, United States Code, to

enter into a personal services contract on behalf of the Coast Guard

before the effective date of the amendments made by subsection

(a) is hereby ratified. (c) EFFECTIVE DATE.—The amendments made by subsection

(a) shall take effect as of October 1, 1995.

SEC. 734. 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 providing for the collection of information regarding insurance, medical service, or health plans of third-party payers

held by covered beneficiaries.

10 USC 1091

note.

10 USC 1091

note.

Regulations.

110 STAT. 382 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(2) The collection of information under regulations prescribed

under paragraph (1) shall be conducted in the same manner as

is 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 may disclose relevant employment information collected under this subsection to fiscal intermediaries or other

designated contractors.

‘‘(4) The Secretary 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)).

Notwithstanding clause (iii) of such section, 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. 735. 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) Of the total amount appropriated for a fiscal year for

programs and activities carried out under this chapter, the amount

equal to three percent of such total amount shall remain available

for obligation until the end of the following fiscal year.’’.

(c) CONFORMING AMENDMENTS.—Such section is further

amended—

(1) by striking out subsections (c), (d), and (f); and

(2) by redesignating subsection (e) as subsection (c).

(d) CLERICAL AMENDMENTS.—(1) The heading of such section

is amended to read as follows:

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 383

‘‘§ 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. 736. 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. 737. APPLICABILITY OF LIMITATION ON PRICES OF PHARMACEUTICALS PROCURED FOR COAST GUARD.

(a) INCLUSION OF COAST GUARD.—Section 8126(b) of title 38,

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

new paragraph:

‘‘(4) The Coast Guard.’’.

(b) EFFECTIVE DATE; APPLICATION OF AMENDMENT.—The

amendment made by subsection (a) shall take effect as if included

in the enactment of section 603 of the Veterans Health Care Act

of 1992 (Public Law 102–585; 106 Stat. 4971).

SEC. 738. RESTRICTION ON USE OF DEPARTMENT OF DEFENSE

FACILITIES FOR ABORTIONS.

(a) IN GENERAL.—Section 1093 of title 10, United States Code,

is amended—

(1) by inserting ‘‘(a) RESTRICTION ON USE OF

FUNDS.—’’ before ‘‘Funds available’’; and

(2) by adding at the end the following:

‘‘(b) RESTRICTION ON USE OF FACILITIES.—No medical treatment

facility or other facility of the Department of Defense may be

used to perform an abortion except where the life of the mother

would be endangered if the fetus were carried to term or in a

case in which the pregnancy is the result of an act of rape or

incest.’’.

(b) CLERICAL AMENDMENTS.—(1) The heading of such section

is amended to read as follows:

‘‘§ 1093. Performance of abortions: restrictions’’.

(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. Performance of abortions: restrictions.’’.

38 USC 8126

note.

110 STAT. 384 PUBLIC LAW 104–106—FEB. 10, 1996

Subtitle E—Other Matters

SEC. 741. TRISERVICE NURSING RESEARCH.

(a) PROGRAM AUTHORIZED.—Chapter 104 of title 10, United

States Code, is amended by adding at the end the following new

section:

‘‘§ 2116. Military nursing research

‘‘(a) DEFINITIONS.—In this section:

‘‘(1) The term ‘military nursing research’ means research

on the furnishing of care and services by nurses in the armed

forces.

‘‘(2) The term ‘TriService Nursing Research Program’

means the program of military nursing research authorized

under this section.

‘‘(b) PROGRAM AUTHORIZED.—The Secretary of Defense may

establish at the University a program of military nursing research.

‘‘(c) TRISERVICE RESEARCH GROUP.—The TriService Nursing

Research Program shall be administered by a TriService Nursing

Research Group composed of Army, Navy, and Air Force nurses

who are involved in military nursing research and are designated

by the Secretary concerned to serve as members of the group.

‘‘(d) DUTIES OF GROUP.—The TriService Nursing Research

Group shall—

‘‘(1) develop for the Department of Defense recommended

guidelines for requesting, reviewing, and funding proposed military nursing research projects; and

‘‘(2) make available to Army, Navy, and Air Force nurses

and Department of Defense officials concerned with military

nursing research—

‘‘(A) information about nursing research projects that

are being developed or carried out in the Army, Navy,

and Air Force; and

‘‘(B) expertise and information beneficial to the

encouragement of meaningful nursing research.

‘‘(e) RESEARCH TOPICS.—For purposes of this section, military

nursing research includes research on the following issues:

‘‘(1) Issues regarding how to improve the results of nursing

care and services provided in the armed forces in time of

peace.

‘‘(2) Issues regarding how to improve the results of nursing

care and services provided in the armed forces in time of

war.

‘‘(3) Issues regarding how to prevent complications associated with battle injuries.

‘‘(4) Issues regarding how to prevent complications associated with the transporting of patients in the military medical

evacuation system.

‘‘(5) Issues regarding how to improve methods of training

nursing personnel.

‘‘(6) Clinical nursing issues, including such issues as

prevention and treatment of child abuse and spouse abuse.

‘‘(7) Women’s health issues.

‘‘(8) Wellness issues.

‘‘(9) Preventive medicine issues.

‘‘(10) Home care management issues.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 385

‘‘(11) Case management issues.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 104 of such title is amended by adding at the

end the following:

‘‘2116. Military nursing research.’’.

SEC. 742. TERMINATION OF PROGRAM TO TRAIN MILITARY

PSYCHOLOGISTS TO PRESCRIBE PSYCHOTROPIC MEDICATIONS.

(a) TERMINATION.—Not later than June 30, 1997, the Secretary

of Defense shall terminate the demonstration pilot program for

training 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).

(b) PROHIBITION ON ADDITIONAL ENROLLEES PENDING TERMINATION.—After the date of the enactment of this Act, the Secretary

of Defense may not enroll any new participants for the demonstration pilot program described in subsection (a).

(c) EFFECT ON CURRENT PARTICIPANTS.—The requirement to

terminate the demonstration pilot program described in subsection

(a) shall not be construed to affect the training or utilization of

military psychologists in the prescription of psychotropic medications who are participating in the demonstration pilot program

on the date of the enactment of this Act or who have completed

such training before that date.

(d) EVALUATION.—As soon as possible after the date of the

enactment of this Act, but not later than April 1, 1997, the

Comptroller General of the United States shall submit to Congress

a report evaluating the success of the demonstration pilot program

described in subsection (a). The report shall include—

(1) a cost-benefit analysis of the program;

(2) a discussion of the utilization requirements under the

program; and (3) recommendations regarding—

(A) whether the program should be extended so as

to continue to provide training to military psychologists

in the prescription of psychotropic medications; and

(B) any modifications that should be made in the manner in which military psychologists are trained and used

to prescribe psychotropic medications so as to improve the

training provided under the program, if the program is

extended.

SEC. 743. 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;

10 USC 1086

note.

Reports.

110 STAT. 386 PUBLIC LAW 104–106—FEB. 10, 1996

(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.

1395 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. 744. DEMONSTRATION PROGRAM TO TRAIN MILITARY MEDICAL

PERSONNEL IN CIVILIAN SHOCK TRAUMA UNITS.

(a) DEMONSTRATION PROGRAM.—(1) 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 one or more public

or nonprofit hospitals. The Secretary shall carry out the program

pursuant to an agreement with such hospitals. (2) Under the agreement with a hospital, 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. (3) The agreement shall require, as consideration for the serv- ices provided by military medical personnel under the agreement,

that the hospital 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

10 USC 1092

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 387

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. 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 that 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. 747. REPORT ON EFFECT OF CLOSURE OF FITZSIMONS ARMY

MEDICAL CENTER, COLORADO, ON PROVISION OF CARE

TO MILITARY PERSONNEL, RETIRED MILITARY PERSONNEL, AND THEIR DEPENDENTS.

(a) EFFECT OF CLOSURE ON MEMBERS EXPERIENCING HEALTH

DIFFICULTIES ASSOCIATED WITH PERSIAN GULF SYNDROME.—Not

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

the Secretary of Defense shall submit to Congress a report that—

(1) assesses the effects of the closure of Fitzsimons Army

Medical Center, Colorado, on the capability of the Department

of Defense to provide appropriate and adequate health care

to members and former members of the Armed Forces who

suffer from undiagnosed illnesses (or combination of illnesses)

as a result of service in the Armed Forces in the Southwest

Asia theater of operations during the Persian Gulf conflict;

and

(2) describes the plans of the Secretary of Defense and

the Secretary of the Army to ensure that adequate and appropriate health care is provided to such members for such illnesses (or combination of illnesses).

110 STAT. 388 PUBLIC LAW 104–106—FEB. 10, 1996

(b) EFFECT OF CLOSURE ON OTHER COVERED BENEFICIARIES.— The report required by subsection (a) shall also include— (1) an assessment of the effects of the closure of Fitzsimons

Army Medical Center on the capability of the Department

of Defense to provide appropriate and adequate health care

to the dependents of members and former members of the

Armed Forces and retired members and their dependents who

currently obtain care at the medical center; and

(2) a description of the plans of the Secretary of Defense

and the Secretary of the Army to ensure that adequate and

appropriate health care is provided to such persons, as called

for in the recommendations of the Secretary of Defense for

the closure of Fitzsimons Army Medical Center.

SEC. 748. SENSE OF CONGRESS ON CONTINUITY OF HEALTH CARE

SERVICES FOR COVERED BENEFICIARIES ADVERSELY

AFFECTED BY CLOSURES OF MILITARY MEDICAL TREATMENT FACILITIES.

(a) FINDINGS.—Congress finds the following: (1) Military installations selected for closure in the 1991

and 1993 rounds of the base closure process will soon close.

(2) Additional military installations have been selected for

closure in the 1995 round of the base closure process.

(3) Some of the military installations selected for closure

include military medical treatment facilities. (4) 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 such installations

will be left without immediate access to military medical treatment facilities.

(b) SENSE OF CONGRESS.—In light of the findings specified in subsection (a), it is the sense of Congress that the Secretary

of Defense should take all appropriate steps necessary to ensure

the continuation of medical and pharmaceutical benefits for covered

beneficiaries adversely affected by the closure of military

installations.

SEC. 749. STATE RECOGNITION OF MILITARY ADVANCE MEDICAL

DIRECTIVES.

(a) REQUIREMENT FOR RECOGNITION BY STATES.—(1) Chapter

53 of title 10, United States Code, is amended by inserting after

section 1044b the following new section:

‘‘§ 1044c. Advance medical directives of members and

dependents: requirement for recognition by

States

‘‘(a) INSTRUMENTS TO BE GIVEN LEGAL EFFECT WITHOUT

REGARD TO STATE LAW.—An advance medical directive executed

by a person eligible for legal assistance—

‘‘(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) ADVANCE MEDICAL DIRECTIVES.—For purposes of this section, an advance medical directive is any written declaration that—

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 389

‘‘(1) sets forth directions regarding the provision, withdrawal, or withholding of life-prolonging procedures, including

hydration and sustenance, for the declarant whenever the

declarant has a terminal physical condition or is in a persistent

vegetative state; or

‘‘(2) authorizes another person to make health care decisions for the declarant, under circumstances stated in the declaration, whenever the declarant is incapable of making

informed health care decisions.

‘‘(c) STATEMENT TO BE INCLUDED.—(1) Under regulations prescribed by the Secretary concerned, an advance medical directive

prepared by an attorney authorized to provide legal assistance

shall contain a statement that sets forth the provisions of subsection

(a).

‘‘(2) Paragraph (1) shall not be construed to make inapplicable

the provisions of subsection (a) to an advance medical directive

that does not include a statement described in that paragraph.

‘‘(d) STATES NOT RECOGNIZING ADVANCE MEDICAL DIRECTIVES.—Subsection (a) does not make an advance medical directive

enforceable in a State that does not otherwise recognize and enforce

advance medical directives under the laws of the State.

‘‘(e) DEFINITIONS.—In this section:

‘‘(1) The term ‘State’ includes the District of Columbia,

the Commonwealth of Puerto Rico, and a possession of the

United States.

‘‘(2) The term ‘person eligible for legal assistance’ means

a person who is eligible for legal assistance under section

1044 of this title.

‘‘(3) The term ‘legal assistance’ means legal services authorized under section 1044 of this title.’’.

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

is amended by inserting after the item relating to section 1044b

the following:

‘‘1044c. Advance medical directives of members and dependents: requirement for

recognition by States.’’.

(b) EFFECTIVE DATE.—Section 1044c of title 10, United States

Code, shall take effect on the date of the enactment of this Act

and shall apply to advance medical directives referred to in that

section that are executed before, on, or after that date.

TITLE VIII—ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle A—Acquisition Reform

SEC. 801. INAPPLICABILITY OF LIMITATION ON EXPENDITURE OF

APPROPRIATIONS TO CONTRACTS AT OR BELOW SIMPLIFIED ACQUISITION THRESHOLD.

Section 2207 of title 10, United States Code, is amended—

(1) by inserting ‘‘(a)’’ before ‘‘Money appropriated’’; and

(2) by adding at the end the following new subsection:

‘‘(b) This section does not apply to a contract that is for an

amount not greater than the simplified acquisition threshold (as

10 USC 1044c

note.

Regulations.

110 STAT. 390 PUBLIC LAW 104–106—FEB. 10, 1996

defined in section 4(11) of the Office of Federal Procurement Policy

Act (41 U.S.C. 403(11))).’’.

SEC. 802. AUTHORITY TO DELEGATE CONTRACTING AUTHORITY.

(a) REPEAL OF DUPLICATIVE AUTHORITY AND RESTRICTION.—

Section 2356 of title 10, United States Code, is repealed.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 139 of title 10, United States Code, is amended

by striking out the item relating to section 2356.

SEC. 803. CONTROL IN PROCUREMENTS OF CRITICAL AIRCRAFT AND

SHIP SPARE PARTS.

(a) REPEAL.—Section 2383 of title 10, United States Code, is

repealed.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 141 of such title is amended by striking out the

item relating to section 2383.

SEC. 804. FEES FOR CERTAIN TESTING SERVICES.

Section 2539b(c) of title 10, United States Code, is amended

by inserting ‘‘and indirect’’ after ‘‘recoup the direct’’ in the second

sentence.

SEC. 805. 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 decision’ has the meaning prescribed by the Secretary of Defense in regulations.’’.

SEC. 806. 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) COMPONENTS FOR NAVAL VESSELS.—(A) The following

components:

‘‘(i) Air circuit breakers.

‘‘(ii) Welded shipboard anchor and mooring chain with

a diameter of four inches or less.

‘‘(iii) Vessel propellers with a diameter of six feet or

more.

‘‘(B) The following components of vessels, to the extent

they are unique to marine applications: gyrocompasses, electronic navigation chart systems, steering controls, pumps,

propulsion and machinery control systems, and totally enclosed

lifeboats.’’.

(2) Subsection (b) of section 2534 of such title is amended

by adding at the end the following:

‘‘(3) MANUFACTURER OF VESSEL PROPELLERS.—In the case

of a procurement of vessel propellers referred to in subsection

(a)(3)(A)(ii), the manufacturer of the propellers meets the

requirements of this subsection only if—

‘‘(A) the manufacturer meets the requirements set forth

in paragraph (1); and

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 391

‘‘(B) all castings incorporated into such propellers are

poured and finished in the United States.’’.

(3) Paragraph (1) of section 2534(c) of such title is amended

to read as follows:

‘‘(1) COMPONENTS FOR NAVAL VESSELS.—Subsection (a) does

not apply to a procurement of spare or repair parts needed

to support components for naval vessels produced or manufactured outside the United States.’’.

(4) Section 2534 of such title is amended by adding at the

end the following new subsection:

‘‘(h) IMPLEMENTATION OF NAVAL 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.’’.

(5) Subsection (a)(3)(B) of section 2534 of title 10, United States

Code, as amended by paragraph (1), shall apply only to contracts

entered into after March 31, 1996.

(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) TERMINATION OF VESSEL PROPELLER LIMITATION.—Section

2534(c) of such title is amended by adding at the end the following

new paragraph:

‘‘(4) VESSEL PROPELLERS.—Subsection (a)(3)(A)(iii) and this

paragraph shall cease to be effective on the date occurring

two years after the date of the enactment of the National

Defense Authorization Act for Fiscal Year 1996.’’.

(d) 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. 807. ENCOURAGEMENT OF USE OF LEASING AUTHORITY.

(a) IN GENERAL.—(1) Section 2401a of title 10, United States

Code, is amended—

(A) by inserting before ‘‘The Secretary of Defense’’ the

following subsection heading: ‘‘(b) LIMITATION ON CONTRACTS

WITH TERMS OF 18 MONTHS OR MORE.—’’;

(B) by inserting after the section heading the following:

‘‘(a) LEASING OF COMMERCIAL VEHICLES AND EQUIPMENT.—The

Secretary of Defense may use leasing in the acquisition of commercial vehicles and equipment whenever the Secretary determines

that leasing of such vehicles is practicable and efficient.’’; and

(C) by amending the section heading to read as follows:

Termination

date.

110 STAT. 392 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘§ 2401a. Lease of vehicles, equipment, vessels, and aircraft’’.

(2) The item relating to section 2401a in the table of sections

at the beginning of chapter 141 of such title is amended to read

as follows:

‘‘2401a. Lease of vehicles, equipment, vessels, and aircraft.’’.

(b) REPORT.—Not later than 90 days after the date of the

enactment of this Act, 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

setting forth changes in legislation that would be required to facilitate the use of leasing in the acquisition of equipment by the

Department of Defense.

(c) PILOT PROGRAM.—(1) The Secretary of the Army may conduct a pilot program for leasing commercial utility cargo vehicles

in accordance with this subsection.

(2) Under the pilot program—

(A) the Secretary may trade existing commercial utility

cargo vehicles of the Army for credit against the costs of leasing

new replacement commercial utility cargo vehicles for the Army;

(B) the quantities and trade-in value of commercial utility

cargo vehicles to be traded in shall be subject to negotiation

between the Secretary and the lessors of the new replacement

commercial utility cargo vehicles;

(C) the lease agreement for a new commercial utility cargo

vehicle may be executed with or without an option to purchase

at the end of the lease period;

(D) the lease period for a new commercial utility cargo

vehicle may not exceed the warranty period for the vehicle;

and

(E) up to 40 percent of the validated requirement for

commercial utility cargo vehicles may be satisfied by leasing

such vehicles, except that one or more options for satisfying

the remainder of the validated requirement may be provided

for and exercised (subject to the requirements of paragraph

(6)).

(3) In awarding contracts under the pilot program, the Secretary shall comply with section 2304 of title 10, United States

Code.

(4) The pilot program may not be commenced until—

(A) the Secretary submits to the Committee on Armed

Services of the Senate and the Committee on National Security

of the House of Representatives a report that contains the

plans of the Secretary for implementing the program and that

sets forth in detail the savings in operating and support costs

expected to be derived from retiring older commercial utility

cargo vehicles, as compared to the expected costs of leasing

newer commercial utility cargo vehicles; and

(B) a period of 30 calendar days has elapsed after submission of such report.

(5) Not later than one year after the date on which the first

lease under the pilot program is entered into, 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 on the status of the pilot program.

Such report shall be based on at least six months of experience

in operating the pilot program.

Reports.

Reports.

10 USC 2401a

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 393

(6) The Secretary may exercise an option provided for under paragraph (2) only after a period of 60 days has elapsed after

the submission of the report.

(7) No lease of commercial utility cargo vehicles may be entered

into under the pilot program after September 30, 2000.

SEC. 808. 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 objectives set forth in section 2501(b) 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 sum of—

(i) the incremental indirect costs attributable to such

work; and

(ii) the amount by which the revenue attributable to

such private sector work exceeds the sum of—

(I) the direct costs attributable to such private

sector work; and

(II) the incremental indirect costs attributable to

such private sector 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 established accounting

practices.

(2) The cost reimbursement rules set forth in paragraph (1)

may be modified by the Secretary of Defense 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(b) of title 10, United States Code.

(c) IMPLEMENTATION.—Not later than 90 days after the date

of the enactment of this Act, the Secretary of Defense shall establish

application procedures and procedures for expeditious consideration

of defense capability preservation agreements as authorized by this

section.

(d) CONTRACTS COVERED.—An agreement entered into with a

contractor under subsection (a) shall apply to each Department

of Defense contract with the contractor in effect on the date on

10 USC 2501

note.

110 STAT. 394 PUBLIC LAW 104–106—FEB. 10, 1996

which the agreement is entered into and each Department of

Defense contract that is awarded to the contractor during the

term of the agreement. (e) REPORTS.—Not later than one year after the date of the

enactment of this Act, the Secretary of Defense shall submit to

the congressional defense committees a report setting forth—

(1) the number of applications received and the number

of applications approved for defense capability preservation

agreements; and

(2) any changes to the authority in this section that the

Secretary recommends to further facilitate the policy set forth

in section 2501(b) of title 10, United States Code.

SEC. 809. SUBCONTRACTS FOR OCEAN TRANSPORTATION SERVICES.

Notwithstanding any other provision of law, neither section

901(b) of the Merchant Marine Act, 1936 (46 U.S.C. 1241(b)) nor

section 2631 of title 10, United States Code, shall be included

before May 1, 1996, on any list promulgated under section 34(b)

of the Office of Federal Procurement Policy Act (41 U.S.C. 430(b)).

SEC. 810. PROMPT RESOLUTION OF AUDIT RECOMMENDATIONS.

Section 6009 of the Federal Acquisition Streamlining Act of

1994 (Public Law 103–355; 108 Stat. 3367) is amended to read

as follows:

‘‘SEC. 6009. PROMPT MANAGEMENT DECISIONS AND IMPLEMENTATION OF AUDIT RECOMMENDATIONS.

‘‘(a) MANAGEMENT DECISIONS.—(1) The head of a Federal

agency shall make management decisions on all findings and recommendations set forth in an audit report of the inspector general

of the agency within a maximum of six months after the issuance

of the report.

‘‘(2) The head of a Federal agency shall make management

decisions on all findings and recommendations set forth in an

audit report of any auditor from outside the Federal Government

within a maximum of six months after the date on which the

head of the agency receives the report.

‘‘(b) COMPLETION OF FINAL ACTION.—The head of a Federal

agency shall complete final action on each management decision

required with regard to a recommendation in an inspector general’s

report under subsection (a)(1) within 12 months after the date

of the inspector general’s report. If the head of the agency fails

to complete final action with regard to a management decision

within the 12-month period, the inspector general concerned shall

identify the matter in each of the inspector general’s semiannual

reports pursuant to section 5(a)(3) of the Inspector General Act

of 1978 (5 U.S.C. App.) until final action on the management

decision is completed.’’.

SEC. 811. TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE

SUBCONTRACTING PLANS.

(a) REVISION OF AUTHORITY.—Subsection (a) of section 834 of

National Defense Authorization Act for Fiscal Years 1990 and 1991

(15 U.S.C. 637 note) is amended by striking out paragraph (1)

and inserting in lieu thereof the following:

‘‘(1) The Secretary of Defense shall establish a test program

under which contracting activities in the military departments and

the Defense Agencies are authorized to undertake one or more

Establishment.

5 USC app. 5

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 395

demonstration projects to determine whether the negotiation and

administration of comprehensive subcontracting plans will reduce

administrative burdens on contractors while enhancing opportunities provided under Department of Defense contracts for small

business concerns and small business concerns owned and controlled

by socially and economically disadvantaged individuals. In selecting

the contracting activities to undertake demonstration projects, the

Secretary shall take such action as is necessary to ensure that

a broad range of the supplies and services acquired by the Department of Defense are included in the test program.’’.

(b) COVERED CONTRACTORS.—Subsection (b) of such section is

amended by striking out paragraph (3) and inserting in lieu thereof

the following:

‘‘(3) A Department of Defense contractor referred to in paragraph (1) is, with respect to a comprehensive subcontracting plan

negotiated in any fiscal year, a business concern that, during the

immediately preceding fiscal year, furnished the Department of

Defense with supplies or services (including professional services,

research and development services, and construction services) pursuant to at least three Department of Defense contracts having

an aggregate value of at least $5,000,000.’’.

(c) TECHNICAL AMENDMENTS.—Such section is amended—

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

(2) by redesignating subsection (h) as subsection (g).

SEC. 812. PROCUREMENT OF ITEMS FOR EXPERIMENTAL OR TEST

PURPOSES.

Section 2373(b) of title 10, United States Code, is amended

by inserting ‘‘only’’ after ‘‘applies’’ in the second sentence.

SEC. 813. USE OF FUNDS FOR ACQUISITION OF DESIGNS, PROCESSES,

TECHNICAL DATA, AND COMPUTER SOFTWARE.

Section 2386(3) of title 10, United States Code, is amended

to read as follows:

‘‘(3) Design and process data, technical data, and computer

software.’’.

SEC. 814. INDEPENDENT COST ESTIMATES FOR MAJOR DEFENSE

ACQUISITION PROGRAMS.

Section 2434(b)(1)(A) of title 10, United States Code, is amended

to read as follows:

‘‘(A) be prepared—

‘‘(i) by an office or other entity that is not under

the supervision, direction, or control of the military

department, Defense Agency, or other component of

the Department of Defense that is directly responsible

for carrying out the development or acquisition of the

program; or

‘‘(ii) if the decision authority for the program has

been delegated to an official of a military department,

Defense Agency, or other component of the Department

of Defense, by an office or other entity that is not

directly responsible for carrying out the development

or acquisition of the program; and’’.

110 STAT. 396 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 815. CONSTRUCTION, REPAIR, ALTERATION, FURNISHING, AND

EQUIPPING OF NAVAL VESSELS.

(a) APPLICABILITY OF CERTAIN LAW.—Chapter 633 of title 10,

United States Code, is amended by inserting after section 7297

the following:

‘‘§ 7299. Contracts: applicability of Walsh-Healey Act

‘‘Each contract for the construction, alteration, furnishing, or equipping of a naval vessel is subject to the Walsh-Healey Act

(41 U.S.C. 35 et seq.) unless the President determines that this

requirement is not in the interest of national defense.’’. (b) CLERICAL AMENDMENT.—The table of sections at the begin- ning of such chapter is amended by inserting after the item relating

to section 7297 the following:

‘‘7299. Contracts: applicability of Walsh-Healey Act.’’.

Subtitle B—Other Matters

SEC. 821. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

(a) FUNDING.—Of the amount authorized to be appropriated under section 301(5), $12,000,000 shall be available for carrying

out the provisions of chapter 142 of title 10, United States Code. (b) SPECIFIC PROGRAMS.—Of the amounts made available pursu- ant to subsection (a), $600,000 shall be available for fiscal year

1996 for the purpose of carrying out programs sponsored by eligible

entities referred to in subparagraph (D) of section 2411(1) of title

10, United States Code, that provide procurement technical assistance in distressed areas referred to in subparagraph (B) of section

2411(2) of such title. If there is an insufficient number of satisfactory proposals for cooperative agreements in such distressed areas

to allow effective use of the funds made available in accordance

with this subsection in such areas, the funds shall be allocated

among the Defense Contract Administration Services regions in

accordance with section 2415 of such title.

SEC. 822. DEFENSE FACILITY-WIDE PILOT PROGRAM.

(a) AUTHORITY TO CONDUCT DEFENSE FACILITY-WIDE PILOT

PROGRAM.—The Secretary of Defense may conduct a pilot program,

to be known as the ‘‘defense facility-wide pilot program’’, for the

purpose of determining the potential for increasing the efficiency

and effectiveness of the acquisition process in facilities by using

commercial practices on a facility-wide basis. (b) DESIGNATION OF PARTICIPATING FACILITIES.—(1) Subject to paragraph (2), the Secretary may designate up to two facilities

as participants in the defense facility-wide pilot program. (2) The Secretary may designate for participation in the pilot

program only those facilities that are authorized to be so designated

in a law authorizing appropriations for national defense programs

that is enacted after the date of the enactment of this Act.

(c) SCOPE OF PROGRAM.—At a facility designated as a participant in the pilot program, the pilot program shall consist of the

following:(1) All contracts and subcontracts for defense supplies and

services that are performed at the facility. (2) All Department of Defense contracts and all subcontracts under Department of Defense contracts performed

10 USC 2302

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 397

elsewhere that the Secretary determines are directly and

substantially related to the production of defense supplies and

services at the facility and are necessary for the pilot program.

(d) CRITERIA FOR DESIGNATION OF PARTICIPATING FACILITIES.—

The Secretary shall establish criteria for selecting a facility for

designation as a participant in the pilot program. In developing

such criteria, the Secretary shall consider the following:

(1) The number of existing and anticipated contracts and

subcontracts performed at the facility—

(A) for which contractors are required to provide certified cost or pricing data pursuant to section 2306a of

title 10, United States Code; and

(B) which are administered with the application of

cost accounting standards under section 26(f) of the Office

of Federal Procurement Policy Act (41 U.S.C. 422(f)).

(2) The relationship of the facility to other organizations

and facilities performing under contracts with the Department

of Defense and subcontracts under such contracts.

(3) The impact that the participation of the facility under

the pilot program would have on competing domestic

manufacturers.

(4) Such other factors as the Secretary considers

appropriate.

(e) NOTIFICATION.—(1) The Secretary shall transmit to the

Committee on Armed Services of the Senate and the Committee

on National Security of the House of Representatives a written

notification of each facility proposed to be designated by the Secretary for participation in the pilot program.

(2) The Secretary shall include in the notification regarding

a facility designated for participation in the program a management

plan addressing the following:

(A) The proposed treatment of research and development

contracts or subcontracts to be performed at the facility during

the pilot program.

(B) The proposed treatment of the cost impact of the use

of commercial practices on the award and administration of

contracts and subcontracts performed at the facility.

(C) The proposed method for reimbursing the contractor

for existing and new contracts.

(D) The proposed method for measuring the performance

of the facility for meeting the management goals of the

Secretary.

(E) Estimates of the annual amount and the total amount

of the contracts and subcontracts covered under the pilot

program.

(3)(A) The Secretary shall ensure that the management plan

for a facility provides for attainment of the following objectives:

(i) A significant reduction of the cost to the Government

for programs carried out at the facility.

(ii) A reduction of the schedule associated with programs

carried out at the facility.

(iii) An increased use of commercial practices and procedures for programs carried out at the facility.

(iv) Protection of a domestic manufacturer competing for

contracts at such facility from being placed at a significant

competitive disadvantage by the participation of the facility

in the pilot program.

110 STAT. 398 PUBLIC LAW 104–106—FEB. 10, 1996

(B) The management plan for a facility shall also require that

all or substantially all of the contracts to be awarded and performed

at the facility after the designation of that facility under subsection

(b), and all or substantially all of the subcontracts to be awarded

under those contracts and performed at the facility after the designation, be—

(i) for the production of supplies or services on a firmfixed price basis;

(ii) awarded without requiring the contractors or subcontractors to provide certified cost or pricing data pursuant

to section 2306a of title 10, United States Code; and

(iii) awarded and administered without the application of

cost accounting standards under section 26(f) of the Office

of Federal Procurement Policy Act (41 U.S.C. 422(f)).

(f) EXEMPTION FROM CERTAIN REQUIREMENTS.—In the case of

a contract or subcontract that is to be performed at a facility

designated for participation in the defense facility-wide pilot program and that is subject to section 2306a of title 10, United States

Code, or section 26(f) of the Office of Federal Procurement Policy

Act (41 U.S.C. 422(f)), the Secretary of Defense may exempt such

contract or subcontract from the requirement to obtain certified

cost or pricing data under such section 2306a or the requirement

to apply mandatory cost accounting standards under such section

26(f) if the Secretary determines that the contract or subcontract—

(1) is within the scope of the pilot program (as described

in subsection (c)); and

(2) is fairly and reasonably priced based on information

other than certified cost and pricing data.

(g) SPECIAL AUTHORITY.—The authority provided under subsection (a) includes authority for the Secretary of Defense—

(1) to apply any amendment or repeal of a provision of

law made in this Act to the pilot program before the effective

date of such amendment or repeal; and

(2) to apply to a procurement of items other than commercial items under such program—

(A) the authority provided in section 34 of the Office

of Federal Procurement Policy Act (41 U.S.C. 430) to waive

a provision of law in the case of commercial items, and

(B) any exception applicable under this Act or the

Federal Acquisition Streamlining Act of 1994 (Public Law

103–355) (or an amendment made by a provision of either

Act) in the case of commercial items,

before the effective date of such provision (or amendment)

to the extent that the Secretary determines necessary to test

the application of such waiver or exception to procurements

of items other than commercial items.

(h) APPLICABILITY.—(1) Subsections (f) and (g) apply to the

following contracts, if such contracts are within the scope of the

pilot program at a facility designated for the pilot program under

subsection (b):

(A) A contract that is awarded or modified during the

period described in paragraph (2).

(B) A contract that is awarded before the beginning of

such period, that is to be performed (or may be performed),

in whole or in part, during such period, and that may be

modified as appropriate at no cost to the Government.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 399

(2) The period referred to in paragraph (1), with respect to a facility designated under subsection (b), is the period that— (A) begins 45 days after the date of the enactment of

the Act authorizing the designation of that facility in accordance

with paragraph (2) of such subsection; and

(B) ends on September 30, 2000.

(i) COMMERCIAL PRACTICES ENCOURAGED.—With respect to contracts and subcontracts within the scope of the defense facilitywide pilot program, the Secretary of Defense may, to the extent

the Secretary determines appropriate and in accordance with

applicable law, adopt commercial practices in the administration

of contracts and subcontracts. Such commercial practices may

include the following:

(1) Substitution of commercial oversight and inspection

procedures for Government audit and access to records.

(2) Incorporation of commercial oversight, inspection, and

acceptance procedures.

(3) Use of alternative dispute resolution techniques (including arbitration).

(4) Elimination of contract provisions authorizing the

Government to make unilateral changes to contracts.

SEC. 823. TREATMENT OF DEPARTMENT OF DEFENSE CABLE TELEVISION FRANCHISE AGREEMENTS.

Not later than 180 days after the date of the enactment of

this Act, the chief judge of the United States Court of Federal

Claims shall transmit to Congress a report containing an advisory

opinion on the following two questions: (1) Is it within the power of the executive branch to treat

cable television franchise agreements for the construction,

installation, or capital improvement of cable television systems

at military installations of the Department of Defense as contracts under part 49 of the Federal Acquisition Regulation

without violating title VI of the Communications Act of 1934

(47 U.S.C. 521 et seq.)?

(2) If the answer to the question in paragraph (1) is in

the affirmative, is the executive branch required by law to

so treat such franchise agreements?

SEC. 824. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

Section 831(j)(1) of the National Defense Authorization Act

for Fiscal Year 1991 (10 U.S.C. 2301 note) is amended by striking

out ‘‘1995’’ and inserting in lieu thereof ‘‘1996’’.

TITLE IX—DEPARTMENT OF DEFENSE

ORGANIZATION AND MANAGEMENT

Subtitle A—General Matters

SEC. 901. ORGANIZATION OF THE OFFICE OF THE SECRETARY OF

DEFENSE.

(a) FINDINGS.—Congress makes the following findings:

(1) The statutory provisions that as of the date of the

enactment of this Act govern the organization of the Office

of the Secretary of Defense have evolved from enactment of

10 USC 131 note.

10 USC 2302

note.

Reports.

110 STAT. 400 PUBLIC LAW 104–106—FEB. 10, 1996

a number of executive branch legislative proposals and congressional initiatives over a period of years.

(2) The May 1995 report of the congressionally mandated

Commission on Roles and Missions of the Armed Forces

included a number of recommendations relating to the Office

of the Secretary of Defense.

(3) The Secretary of Defense has decided to create a special

Department task force and to conduct other reviews to review

many of the Commission’s recommendations.

(4) The Secretary of Defense has decided to institute a

5 percent per year reduction of civilian personnel assigned

to the Office of the Secretary of Defense, including the Washington Headquarters Service and the Defense Support Activities,

for the period from fiscal year 1996 through fiscal year 2001.

(5) Over the ten-year period from 1986 through 1995,

defense spending in real dollars has been reduced by 34 percent

and military end-strengths have been reduced by 28 percent.

During the same period, the number of civilian employees of

the Office of the Secretary of Defense has increased by 22

percent.

(6) To achieve greater efficiency and to revalidate the role

and mission of the Office of the Secretary of Defense, a comprehensive review of the organizations and functions of that

Office and of the personnel needed to carry out those functions

is required.

(b) REVIEW.—The Secretary of Defense shall conduct a further

review of the organizations and functions of the Office of the Secretary of Defense, including the Washington Headquarters Service

and the Defense Support Activities, and the personnel needed to

carry out those functions. The review shall include the following:

(1) An assessment of the appropriate functions of the Office

and whether the Office of the Secretary of Defense or some

of its component parts should be organized along mission lines.

(2) An assessment of the adequacy of the present organizational structure to efficiently and effectively support the Secretary in carrying out his responsibilities in a manner that

ensures civilian authority in the Department of Defense.

(3) An assessment of the advantages and disadvantages

of the use of political appointees to fill the positions of the

various Under Secretaries of Defense, Assistant Secretaries

of Defense, and Deputy Under Secretaries of Defense.

(4) An assessment of the extent of unnecessary duplication

of functions between the Office of the Secretary of Defense

and the Joint Staff.

(5) An assessment of the extent of unnecessary duplication

of functions between the Office of the Secretary of Defense

and the military departments.

(6) An assessment of the appropriate number of positions

referred to in paragraph (3) and of Deputy Assistant Secretaries

of Defense.

(7) An assessment of whether some or any of the functions

currently performed by the Office of Humanitarian and Refugee

Affairs are more properly or effectively performed by another

agency of Government or elsewhere within the Department

of Defense.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 401

(8) An assessment of the efficacy of the Joint Requirements Oversight Council and whether it is advisable or necessary

to establish a statutory charter for this organization. (9) An assessment of any benefits or efficiencies derived from decentralizing certain functions currently performed by

the Office of the Secretary of Defense. (10) An assessment of the appropriate size, number, and

functional responsibilities of the Defense Agencies and other

Department of Defense support organizations.

(c) REPORT.—Not later than March 1, 1996, the Secretary of Defense shall submit to the congressional defense committees a

report containing — (1) his findings and conclusions resulting from the review under subsection (b); and

(2) a plan for implementing resulting recommendations, including proposals for legislation (with supporting rationale)

that would be required as a result of the review.

(d) PERSONNEL REDUCTION.—(1) Effective October 1, 1999, the

number of OSD personnel may not exceed 75 percent of the number

of OSD personnel as of October 1, 1994. (2) For purposes of this subsection, the term ‘‘OSD personnel’’

means military and civilian personnel of the Department of Defense

who 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). (3) In carrying out reductions in the number of personnel assigned to, or employed in, the Office of the Department of Defense

in order to comply with paragraph (1), the Secretary may not

reassign functions solely in order to evade the requirement contained in that paragraph. (4) If the Secretary of Defense determines, and certifies to Congress, that the limitation in paragraph (1) would adversely

affect United States national security, the limitation under paragraph (1) shall be applied by substituting ‘‘80 percent’’ for ‘‘75

percent’’.

SEC. 902. REDUCTION IN NUMBER OF ASSISTANT SECRETARY OF

DEFENSE POSITIONS.

(a) REDUCTION.—Section 138(a) of title 10, United States Code,

is amended by striking out ‘‘eleven’’ and inserting in lieu thereof

‘‘ten’’.

(b) CONFORMING AMENDMENT.—Section 5315 of title 5, United

States Code, is amended by striking out ‘‘(11)’’ after ‘‘Assistant

Secretaries of Defense’’ and inserting in lieu thereof ‘‘(10)’’.

SEC. 903. DEFERRED REPEAL OF VARIOUS STATUTORY POSITIONS

AND OFFICES IN OFFICE OF THE SECRETARY OF DEFENSE.

(a) EFFECTIVE DATE.—The amendments made by this section

shall take effect on January 31, 1997. (b) TERMINATION OF SPECIFICATION BY LAW OF ASD POSI- TIONS.—Subsection (b) of section 138 of title 10, United States

Code, is amended to read as follows:

‘‘(b) The Assistant Secretaries shall perform such duties and

exercise such powers as the Secretary of Defense may prescribe.’’. (c) REPEAL OF CERTAIN OSD PRESIDENTIAL APPOINTMENT POSITIONS.—The following sections of chapter 4 of such title are

repealed:

10 USC 131 note.

Effective date.

110 STAT. 402 PUBLIC LAW 104–106—FEB. 10, 1996

(1) Section 133a, relating to the Deputy Under Secretary

of Defense for Acquisition and Technology. (2) Section 134a, relating to the Deputy Under Secretary

of Defense for Policy.

(3) Section 137, relating to the Director of Defense Research

and Engineering.

(4) Section 142, relating to the Assistant to the Secretary

of Defense for Nuclear and Chemical and Biological Defense

Programs.

(d) DIRECTOR OF MILITARY RELOCATION ASSISTANCE PROGRAMS.—Section 1056 of such title is amended by striking out

subsection (d).

(e) CONFORMING AMENDMENTS RELATING TO REPEAL OF VARIOUS OSD POSITIONS.—Chapter 4 of such title is further amended—

(1) in section 131(b)—

(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) in section 138(d), 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’’; and

(3) in the table of sections at the beginning of the chapter,

by striking out the items relating to sections 133a, 134a, 137,

and 142.

(f) CONFORMING AMENDMENTS RELATING TO REPEAL OF SPECIFICATION OF ASD POSITIONS.—

(1) Section 176(a)(3) of title 10, United States Code, 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’’.

(2) Section 1216(d) of such title 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’’.

(3) Section 1587(d) of such title 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’’.

(4) The text of section 10201 of such title 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.’’.

(5) Section 1211(b)(2) of the National Defense Authorization

Act for Fiscal Years 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

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 403

designated by the Secretary of Defense to have principal responsibility for matters relating to special operations and low intensity conflict’’.

(g) REPEAL OF MINIMUM NUMBER OF SENIOR STAFF 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.

SEC. 904. REDESIGNATION OF THE POSITION OF ASSISTANT TO THE

SECRETARY OF DEFENSE FOR ATOMIC ENERGY.

(a) IN GENERAL.—(1) Section 142 of title 10, United States

Code, is amended—

(A) by striking out the section heading and inserting in

lieu thereof the following:

‘‘§ 142. Assistant to the Secretary of Defense for Nuclear and

Chemical and Biological Defense Programs’’;

(B) in subsection (a), by striking out ‘‘Assistant to the

Secretary of Defense for Atomic Energy’’ and inserting in lieu

thereof ‘‘Assistant to the Secretary of Defense for Nuclear and

Chemical and Biological Defense Programs’’; and

(C) by striking out subsection (b) and inserting in lieu

thereof the following:

‘‘(b) The Assistant to the Secretary shall—

‘‘(1) advise the Secretary of Defense on nuclear energy,

nuclear weapons, and chemical and biological defense;

‘‘(2) serve as the Staff Director of the Nuclear Weapons

Council established by section 179 of this title; and

‘‘(3) perform such additional duties as the Secretary may

prescribe.’’.

(2) The item relating to such section in the table of sections

at the beginning of chapter 4 of such title is amended to read

as follows:

‘‘142. Assistant to the Secretary of Defense for Nuclear and Chemical and Biological

Defense Programs.’’.

(b) CONFORMING AMENDMENTS.—(1) Section 179(c)(2) of title

10, United States Code, is amended by striking out ‘‘The Assistant

to the Secretary of Defense for Atomic Energy’’ and inserting in

lieu thereof ‘‘The Assistant to the Secretary of Defense for Nuclear

and Chemical and Biological Defense Programs’’.

(2) Section 5316 of title 5, United States Code, is amended

by striking out ‘‘The Assistant to the Secretary of Defense for

Atomic Energy, Department of Defense.’’ and inserting in lieu

thereof the following:

‘‘Assistant to the Secretary of Defense for Nuclear and

Chemical and Biological Defense Programs, Department of

Defense.’’.

SEC. 905. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

(a) IN GENERAL.—(1) Chapter 7 of title 10, United States Code,

is amended by adding at the end the following new section:

‘‘§ 181. Joint Requirements Oversight Council

‘‘(a) ESTABLISHMENT.—The Secretary of Defense shall establish

a Joint Requirements Oversight Council in the Department of

Defense.

110 STAT. 404 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(b) MISSION.—In addition to other matters assigned to it by the President or Secretary of Defense, the Joint Requirements Oversight Council shall— ‘‘(1) assist the Chairman of the Joint Chiefs of Staff in

identifying and assessing the priority of joint military requirements (including existing systems and equipment) to meet the

national military strategy;

‘‘(2) assist the Chairman in considering alternatives to

any acquisition program that has been identified to meet military requirements by evaluating the cost, schedule, and

performance criteria of the program and of the identified alternatives; and

‘‘(3) as part of its mission to assist the Chairman in assigning joint priority among existing and future programs meeting

valid requirements, ensure that the assignment of such priorities conforms to and reflects resource levels projected by the

Secretary of Defense through defense planning guidance.

‘‘(c) COMPOSITION.—(1) The Joint Requirements Oversight

Council is composed of—

‘‘(A) the Chairman of the Joint Chiefs of Staff, who is

the chairman of the Council;

‘‘(B) an Army officer in the grade of general;

‘‘(C) a Navy officer in the grade of admiral;

‘‘(D) an Air Force officer in the grade of general; and

‘‘(E) a Marine Corps officer in the grade of general.

‘‘(2) Members of the Council, other than the Chairman of the

Joint Chiefs of Staff, shall be selected by the Chairman of the

Joint Chiefs of Staff, after consultation with the Secretary of

Defense, from officers in the grade of general or admiral, as the

case may be, who are recommended for such selection by the Secretary of the military department concerned.

‘‘(3) The functions of the Chairman of the Joint Chiefs of Staff

as chairman of the Council may only be delegated to the Vice

Chairman of the Joint Chiefs of Staff.’’.

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

is amended by adding at the end the following new item:

‘‘181. Joint Requirements Oversight Council.’’.

(b) EFFECTIVE DATE.—The amendments made by this section

shall take effect on January 31, 1997.

SEC. 906. 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 (as defined by the Secretary) by 25

10 USC 181 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 405

percent over a period of five years, beginning on October 1,

1995.

(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), the Federal

Acquisition Reform Act of 1995 (division D of this Act), 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) 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 15,000.

(2) For purposes of this subsection, the term ‘‘defense acquisition personnel’’ means military and civilian personnel assigned

to, or employed in, acquisition organizations of the Department

of Defense (as specified in Department of Defense Instruction numbered 5000.58 dated January 14, 1992) with the exception of personnel who possess technical competence in trade-skill maintenance

and repair positions involved in performing depot maintenance

functions.

SEC. 907. REPORT ON NUCLEAR POSTURE REVIEW AND ON PLANS

FOR NUCLEAR WEAPONS MANAGEMENT IN EVENT OF

ABOLITION OF DEPARTMENT OF ENERGY.

(a) REPORT REQUIRED.—The Secretary of Defense shall submit

to Congress a report concerning the nuclear weapons complex.

The report shall set forth—

(1) the Secretary’s views on the effectiveness of the Department of Energy in managing the nuclear weapons complex,

including the fulfillment of the requirements for nuclear weapVerDate 07-FEB-96 03:34 Mar 05, 1996 Jkt 029139 PO 00106 Frm 00221 Fmt 6580 Sfmt 6581 PUBL106.104 apps06
110 STAT. 406 PUBLIC LAW 104–106—FEB. 10, 1996

ons established for the Department of Energy in the Nuclear

Posture Review; and

(2) the Secretary’s recommended plan for the incorporation

into the Department of Defense of the national security programs of the Department of Energy if the Department of Energy

should be abolished and those programs be transferred to the

Department of Defense.

(b) DEFINITION.—For purposes of this section, the term ‘‘Nuclear

Posture Review’’ means the Department of Defense Nuclear Posture

Review as contained in the report entitled ‘‘Report of the Secretary

of Defense to the President and the Congress’’, dated February

19, 1995, or in subsequent such reports.

(c) SUBMISSION OF REPORT.—The report under subsection (a)

shall be submitted not later than March 15, 1996.

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 or in any provision

of this Act to the Advanced Research Projects Agency shall be

considered to be a reference to the Defense Advanced Research

Projects Agency.

Subtitle B—Financial Management

SEC. 911. TRANSFER AUTHORITY REGARDING FUNDS AVAILABLE FOR

FOREIGN CURRENCY FLUCTUATIONS.

(a) TRANSFERS TO MILITARY PERSONNEL ACCOUNTS AUTHORIZED.—Section 2779 of title 10, United States Code, is amended

by adding at the end the following:

‘‘(c) TRANSFERS TO MILITARY PERSONNEL ACCOUNTS.—The Secretary of Defense may transfer funds to military personnel appropriations for a fiscal year out of funds available to the Department

of Defense for that fiscal year under the appropriation ‘Foreign

Currency Fluctuations, Defense’.’’.

(b) REVISION AND CODIFICATION OF AUTHORITY FOR TRANSFERS

TO FOREIGN CURRENCY FLUCTUATIONS ACCOUNT.—Section 2779 of

such title, as amended by subsection (a), is further amended by

adding at the end the following:

‘‘(d) TRANSFERS TO FOREIGN CURRENCY FLUCTUATIONS

ACCOUNT.—(1) The Secretary of Defense may transfer to the appropriation ‘Foreign Currency Fluctuations, Defense’ unobligated

amounts of funds appropriated for operation and maintenance and

unobligated amounts of funds appropriated for military personnel.

‘‘(2) Any transfer from an appropriation under paragraph (1)

shall be made not later than the end of the second fiscal year

following the fiscal year for which the appropriation is provided.

‘‘(3) Any transfer made pursuant to the authority provided

in this subsection shall be limited so that the amount in the

appropriation ‘Foreign Currency Fluctuations, Defense’ does not

exceed $970,000,000 at the time the transfer is made.’’.

10 USC 111 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 407

(c) CONDITIONS OF AVAILABILITY FOR TRANSFERRED FUNDS.—

Section 2779 of such title, as amended by subsection (b), is further

amended by adding at the end the following:

‘‘(e) CONDITIONS OF AVAILABILITY FOR TRANSFERRED FUNDS.—

Amounts transferred under subsection (c) or (d) shall be merged

with and be available for the same purposes and for the same

period as the appropriations to which transferred.’’.

(d) REPEAL OF SUPERSEDED PROVISIONS.—(1) Section 767A of

Public Law 96–527 (94 Stat. 3093) is repealed.

(2) Section 791 of the Department of Defense Appropriation

Act, 1983 (enacted in section 101(c) of Public Law 97–377; 96

Stat. 1865) is repealed.

(e) TECHNICAL AMENDMENTS.—Section 2779 of title 10, United

States Code, is amended—

(1) in subsection (a), by striking out ‘‘(a)(1)’’ and inserting

in lieu thereof ‘‘(a) TRANSFERS BACK TO FOREIGN CURRENCY

FLUCTUATIONS APPROPRIATION.—(1)’’;

(2) in subsection (a)(2), by striking out ‘‘2d fiscal year’’

and inserting in lieu thereof ‘‘second fiscal year’’; and

(3) in subsection (b), by striking out ‘‘(b)(1)’’ and inserting

in lieu thereof ‘‘(b) FUNDING FOR LOSSES IN MILITARY

CONSTRUCTION AND FAMILY HOUSING.—(1)’’.

(f) EFFECTIVE DATE.—Subsections (c) and (d) of section 2779

of title 10, United States Code, as added by subsections (a) and

(b), and the repeals made by subsection (d), shall apply only with

respect to amounts appropriated for a fiscal year after fiscal year

1995.

SEC. 912. DEFENSE MODERNIZATION ACCOUNT.

(a) ESTABLISHMENT AND USE.—(1) Chapter 131 of title 10,

United States Code, is amended by inserting after section 2215

the following new section:

‘‘§ 2216. Defense Modernization Account

‘‘(a) ESTABLISHMENT.—There is established in the Treasury an

account to be known as the ‘Defense Modernization Account’.

‘‘(b) TRANSFERS TO ACCOUNT.—(1)(A) Upon a determination by

the Secretary of a military department or the Secretary of Defense

with respect to Defense-wide appropriations accounts of the availability and source of funds described in subparagraph (B), that

Secretary may transfer to the Defense Modernization Account during any fiscal year any amount of funds available to the Secretary

described in that subparagraph. Such funds may be transferred

to that account only after the Secretary concerned notifies the

congressional defense committees in writing of the amount and

source of the proposed transfer.

‘‘(B) This subsection applies to the following funds available

to the Secretary concerned:

‘‘(i) Unexpired funds in appropriations accounts that are

available for procurement and that, as a result of economies,

efficiencies, and other savings achieved in carrying out a

particular procurement, are excess to the requirements of that

procurement.

‘‘(ii) Unexpired funds that are available during the final

30 days of a fiscal year for support of installations and facilities

and that, as a result of economies, efficiencies, and other sav10 USC 2779

note.

10 USC 114 note.

110 STAT. 408 PUBLIC LAW 104–106—FEB. 10, 1996

ings, are excess to the requirements for support of installations

and facilities.

‘‘(C) Any transfer under subparagraph (A) shall be made under

regulations prescribed by the Secretary of Defense.

‘‘(2) Funds referred to in paragraph (1) may not be transferred

to the Defense Modernization Account if—

‘‘(A) the funds are necessary for programs, projects, and

activities that, as determined by the Secretary, have a higher

priority than the purposes for which the funds would be available if transferred to that account; or

‘‘(B) the balance of funds in the account, after transfer

of funds to the account, would exceed $1,000,000,000.

‘‘(3) Amounts credited to the Defense Modernization Account

shall remain available for transfer until the end of the third fiscal

year that follows the fiscal year in which the amounts are credited

to the account.

‘‘(4) The period of availability of funds for expenditure provided

for in sections 1551 and 1552 of title 31 may not be extended

by transfer into the Defense Modernization Account.

‘‘(c) SCOPE OF USE OF FUNDS.—Funds transferred to the Defense

Modernization Account from funds appropriated for a military

department, Defense Agency, or other element of the Department

of Defense shall be available in accordance with subsections (f)

and (g) only for transfer to funds available for that military department, Defense Agency, or other element.

‘‘(d) AUTHORIZED USE OF FUNDS.—Funds available from the

Defense Modernization Account pursuant to subsection (f) or (g)

may be used for the following purposes:

‘‘(1) For increasing, subject to subsection (e), the quantity

of items and services procured under a procurement program

in order to achieve a more efficient production or delivery

rate.

‘‘(2) For research, development, test, and evaluation and

for procurement necessary for modernization of an existing

system or of a system being procured under an ongoing procurement program.

‘‘(e) LIMITATIONS.—(1) Funds in the Defense Modernization

Account may not be used to increase the quantity of an item

or services procured under a particular procurement program to

the extent that doing so would—

‘‘(A) result in procurement of a total quantity of items

or services in excess of—

‘‘(i) a specific limitation provided by law on the quantity

of the items or services that may be procured; or

‘‘(ii) the requirement for the items or services as

approved by the Joint Requirements Oversight Council and

reported to Congress by the Secretary of Defense; or

‘‘(B) result in an obligation or expenditure of funds in

excess of a specific limitation provided by law on the amount

that may be obligated or expended, respectively, for that

procurement program.

‘‘(2) Funds in the Defense Modernization Account may not

be used for a purpose or program for which Congress has not

authorized appropriations.

‘‘(3) Funds may not be transferred from the Defense Modernization Account in any year for the purpose of—

Regulations.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 409

‘‘(A) making an expenditure for which there is no corresponding obligation; or

‘‘(B) making an expenditure that would satisfy an unliquidated or unrecorded obligation arising in a prior fiscal year.

‘‘(f) TRANSFER OF FUNDS.—(1) The Secretary of Defense may

transfer funds in the Defense Modernization Account to appropriations available for purposes set forth in subsection (d).

‘‘(2) Funds in the Defense Modernization Account may not

be transferred under paragraph (1) until 30 days after the date

on which the Secretary concerned notifies the congressional defense

committees in writing of the amount and purpose of the proposed

transfer.

‘‘(3) The total amount of transfers from the Defense Modernization Account during any fiscal year under this subsection may

not exceed $500,000,000.

‘‘(g) AVAILABILITY OF FUNDS BY APPROPRIATION.—In addition

to transfers under subsection (f), funds in the Defense Modernization Account may be made available for purposes set forth in

subsection (d) in accordance with the provisions of appropriations

Acts, but only to the extent authorized in an Act other than an

appropriations Act.

‘‘(h) SECRETARY TO ACT THROUGH COMPTROLLER.—The Secretary of Defense shall carry out this section through the Under

Secretary of Defense (Comptroller), who shall be authorized to

implement this section through the issuance of any necessary regulations, policies, and procedures after consultation with the General

Counsel and Inspector General of the Department of Defense.

‘‘(i) QUARTERLY REPORTS.—(1) Not later than 15 days after

the end of each calendar quarter, the Secretary of Defense shall

submit to the congressional committees specified in paragraph (2)

a report on the Defense Modernization Account. Each such report

shall set forth the following:

‘‘(A) The amount and source of each credit to the account

during that quarter.

‘‘(B) The amount and purpose of each transfer from the

account during that quarter.

‘‘(C) The balance in the account at the end of the quarter

and, of such balance, the amount attributable to transfers to

the account from each Secretary concerned.

‘‘(2) The committees referred to in paragraph (1) are the

congressional defense committees and the Committee on Governmental Affairs of the Senate and the Committee on Government

Reform and Oversight of the House of Representatives.

‘‘(j) DEFINITIONS.—In this section:

‘‘(1) The term ‘Secretary concerned’ includes the Secretary

of Defense with respect to Defense-wide appropriations

accounts.

‘‘(2) The term ‘unexpired funds’ means funds appropriated

for a definite period that remain available for obligation.

‘‘(3) The term ‘congressional defense committees’ means—

‘‘(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.’’.

Notification.

110 STAT. 410 PUBLIC LAW 104–106—FEB. 10, 1996

(2) The table of sections at the beginning of chapter 131 of

such title is amended by inserting after the item relating to section

2215 the following new item:

‘‘2216. Defense Modernization Account.’’.

(b) EFFECTIVE DATE.—Section 2216 of title 10, United States

Code (as added by subsection (a)), shall apply only to funds appropriated for fiscal years after fiscal year 1995. (c) EXPIRATION OF AUTHORITY AND ACCOUNT.—(1) The authority under section 2216(b) of title 10, United States Code (as added

by subsection (a)), to transfer funds into the Defense Modernization

Account terminates at the close of September 30, 2003.

(2) Three years after the termination date specified in para- graph (1), the Defense Modernization Account shall be closed and

any remaining balance in the account shall be canceled and thereafter shall not be available for any purpose. (d) GAO REVIEWS.—(1) The Comptroller General of the United

States shall conduct two reviews of the administration of the

Defense Modernization Account. In each review, the Comptroller

General shall assess the operations and benefits of the account.

(2) Not later than March 1, 2000, the Comptroller General

shall—

(A) complete the first review; and

(B) submit to the specified committees of Congress an

initial report on the administration and benefits of the Defense

Modernization Account.

(3) Not later than March 1, 2003, the Comptroller General

shall—

(A) complete the second review; and

(B) submit to the specified committees of Congress a final

report on the administration and benefits of the Defense Modernization Account.

(4) Each such report shall include any recommended legislation

regarding the account that the Comptroller General considers

appropriate.

(5) For purposes of this subsection, the term ‘‘specified committees of Congress’’ means the congressional committees referred to

in section 2216(i)(2) of title 10, United States Code, as added

by subsection (a).

SEC. 913. 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.’’.

(2) Section 2773 of title 10, United States Code, is amended—

(A) in subsection (a)—

(i) in paragraph (1), by striking out ‘‘With the approval

of a 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,

Reports.

10 USC 2216

note.

10 USC 2216

note.

10 USC 2216

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 411

in the case of a disbursing official of a military department, the

Secretary of that military department.’’; and (B) in subsection (b)(1), by striking out ‘‘any military

department’’ and inserting in lieu thereof ‘‘the Department

of Defense’’.

(b) DESIGNATION OF MEMBERS OF THE ARMED FORCES TO HAVE

AUTHORITY TO CERTIFY VOUCHERS.—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, members of the armed forces under the jurisdiction of

the Secretary of Defense may certify vouchers when authorized,

in writing, by the Secretary to do so.’’.

(c) 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) Section 1007(a) of title 37, United States Code, is amended

by striking out ‘‘Secretary concerned’’ and inserting in lieu thereof

‘‘Secretary of Defense, or upon the denial of relief of an officer

pursuant to section 3527 of title 31’’.

(3)(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.’’.

(4) Section 3527(b)(1) of title 31, United States Code, is amended—

(A) by striking out ‘‘a disbursing official of the armed

forces’’ and inserting in lieu thereof ‘‘an official of the armed

forces referred to in subsection (a)’’;

(B) by striking out ‘‘records,’’ and inserting in lieu thereof

‘‘records, or a payment described in section 3528(a)(4)(A) of

this title,’’;

(C) by redesignating subparagraphs (A), (B), and (C) as

clauses (i), (ii), and (iii), and realigning such clauses four ems

from the left margin;

(D) by inserting before clause (i), as so redesignated, the

following:

‘‘(A) in the case of a physical loss or deficiency—’’;

(E) in clause (iii), as so redesignated, by striking out the

period at the end and inserting in lieu thereof ‘‘; or’’; and

(F) by adding at the end the following:

‘‘(B) in the case of a payment described in section

3528(a)(4)(A) of this title, the Secretary of Defense or the Secretary of the appropriate military department, after taking

a diligent collection action, finds that the criteria of section

3528(b)(1) of this title are satisfied.’’.

110 STAT. 412 PUBLIC LAW 104–106—FEB. 10, 1996

(5) Section 3528 of title 31, United States Code, is amended

by striking out subsection (d).

SEC. 914. FISHER HOUSE TRUST FUNDS.

(a) ESTABLISHMENT.—(1) Chapter 131 of title 10, United States

Code, is amended by adding at the end the following new section:

‘‘§ 2221. Fisher House trust funds

‘‘(a) ESTABLISHMENT.—The following trust funds are established

on the books of the Treasury:

‘‘(1) The Fisher House Trust Fund, Department of the

Army.

‘‘(2) The Fisher House Trust Fund, Department of the

Air Force.

‘‘(b) INVESTMENT.—Funds in the trust funds may be invested

in securities of the United States. Earnings and gains realized

from the investment of funds in a trust fund shall be credited

to the trust fund.

‘‘(c) USE OF FUNDS.—(1) Amounts in the Fisher House Trust

Fund, Department of the Army, that are attributable to earnings

or gains realized from investments shall be available for the operation and maintenance of Fisher houses that are located in proximity to medical treatment facilities of the Army.

‘‘(2) Amounts in the Fisher House Trust Fund, Department

of the Air Force, that are attributable to earnings or gains realized

from investments shall be available for the operation and maintenance of Fisher houses that are located in proximity to medical

treatment facilities of the Air Force.

‘‘(3) The use of funds under this section is subject to section

1321(b)(2) of title 31.

‘‘(d) FISHER HOUSE DEFINED.—In this section, the term ‘Fisher

house’ means a housing facility that—

‘‘(1) is located in proximity to a medical treatment facility

of the Army or the Air Force; and

‘‘(2) is available for residential use on a temporary basis

by patients at such facilities, members of the family of such

patients, and others providing the equivalent of familial support

for such patients.’’.

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

is amended by adding at the end the following new item:

‘‘2221. Fisher House trust funds.’’.

(b) CORPUS OF TRUST FUNDS.—(1) The Secretary of the Treasury

shall—

(A) close the accounts established with the funds that were

required by section 8019 of Public Law 102–172 (105 Stat.

1175) and section 9023 of Public Law 102–396 (106 Stat. 1905)

to be transferred to an appropriated trust fund; and

(B) transfer the amounts in such accounts to the Fisher

House Trust Fund, Department of the Army, established by

subsection (a)(1) of section 2221 of title 10, United States Code,

as added by subsection (a).

(2) The Secretary of the Air Force shall transfer to the Fisher

House Trust Fund, Department of the Air Force, established by

subsection (a)(2) of section 2221 of title 10, United States Code

(as added by section (a)), all amounts in the accounts for Air

Force installations and other facilities that, as of the date of the

10 USC 2221

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 413

enactment of this Act, are available for operation and maintenance

of Fisher houses (as defined in subsection (d) of such section 2221).

(c) CONFORMING AMENDMENTS.—Section 1321 of title 31, United

States Code, is amended—

(1) by adding at the end of subsection (a) the following:

‘‘(92) Fisher House Trust Fund, Department of the Army.

‘‘(93) Fisher House Trust Fund, Department of the Air

Force.’’; and

(2) in subsection (b)—

(A) by inserting ‘‘(1)’’ after ‘‘(b)’’;

(B) in the second sentence, by striking out ‘‘Amounts

accruing to these funds (except to the trust fund ‘Armed

Forces Retirement Home Trust Fund’)’’ and inserting in

lieu thereof ‘‘Except as provided in paragraph (2), amounts

accruing to these funds’’;

(C) by striking out the third sentence; and

(D) by adding at the end the following:

‘‘(2) Expenditures from the following trust funds may be made

only under annual appropriations and only if the appropriations

are specifically authorized by law:

‘‘(A) Armed Forces Retirement Home Trust Fund.

‘‘(B) Fisher House Trust Fund, Department of the Army.

‘‘(C) Fisher House Trust Fund, Department of the Air

Force.’’.

(d) REPEAL OF SUPERSEDED PROVISIONS.—The following provisions of law are repealed:

(1) Section 8019 of Public Law 102–172 (105 Stat. 1175).

(2) Section 9023 of Public Law 102–396 (106 Stat. 1905).

(3) Section 8019 of Public Law 103–139 (107 Stat. 1441).

(4) Section 8017 of Public Law 103–335 (108 Stat. 2620;

10 U.S.C. 1074 note).

SEC. 915. LIMITATION ON USE OF AUTHORITY TO PAY FOR EMERGENCY AND EXTRAORDINARY EXPENSES.

Section 127 of title 10, United States Code, is amended—

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

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

‘‘(c)(1) Funds may not be obligated or expended in an amount

in excess of $500,000 under the authority of subsection (a) or

(b) until the Secretary of Defense has notified 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 of the intent to

obligate or expend the funds, and—

‘‘(A) in the case of an obligation or expenditure in excess

of $1,000,000, 15 days have elapsed since the date of the

notification; or

‘‘(B) in the case of an obligation or expenditure in excess

of $500,000, but not in excess of $1,000,000, 5 days have elapsed

since the date of the notification.

‘‘(2) Subparagraph (A) or (B) of paragraph (1) shall not apply

to an obligation or expenditure of funds otherwise covered by such

subparagraph if the Secretary of Defense determines that the

national security objectives of the United States will be compromised by the application of the subparagraph to the obligation

or expenditure. If the Secretary makes a determination with respect Notification.

Notification.

110 STAT. 414 PUBLIC LAW 104–106—FEB. 10, 1996

to an obligation or expenditure under the preceding sentence, the

Secretary shall immediately notify the committees referred to in

paragraph (1) that such obligation or expenditure is necessary

and provide any relevant information (in classified form, if necessary) jointly to the chairman and ranking minority member (or

their designees) of such committees.

‘‘(3) A notification under paragraph (1) and information referred

to in paragraph (2) shall include the amount to be obligated or

expended, as the case may be, and the purpose of the obligation

or expenditure.’’.

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.

(d) NOTICE TO CONGRESS.—The Secretary shall promptly notify

Congress of each transfer made under subsection (a).

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

(a) STATUS OF CLASSIFIED ANNEX.—The Classified Annex prepared by the committee on conference 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,

10 USC 114 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 415

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) Section 127a of

title 10, United States Code, is amended to read as follows:

‘‘§ 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

specified in paragraph (2) that involves—

‘‘(A) 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) the provision of humanitarian assistance, disaster

relief, or support for law enforcement (including immigration

control) for which funds have not been specifically provided

in advance.

‘‘(2) This section applies to—

‘‘(A) any operation the incremental cost of which is expected

to exceed $50,000,000; and

‘‘(B) any other operation the expected incremental cost

of which, when added to the expected incremental costs of

other operations that are currently ongoing, is expected to

result in a cumulative incremental cost of ongoing operations

of the Department of Defense in excess of $100,000,000.

Any operation the incremental cost of which is expected not to

exceed $10,000,000 shall be disregarded for the purposes of subparagraph (B).

‘‘(3) Whenever an operation to which this section applies is

commenced or subsequently becomes covered by this section, 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).

‘‘(4) 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.

Notification.

President.

110 STAT. 416 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(2) The amounts which but for paragraph (1) would be required

to be reimbursed to an element of the Department of Defense

(or a fund) shall be recorded as an expense attributable to the

operation and shall be accounted for separately.

‘‘(c) TRANSFER AUTHORITY.—(1) Whenever there is an operation

of the Department of Defense described in subsection (a), the Secretary of Defense may 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, other than amounts within

any operation and maintenance appropriation that are available

for (A) an account (known as a budget activity 1 account) that

is specified as being for operating forces, or (B) an account (known

as a budget activity 2 account) that is specified as being for mobilization.

‘‘(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) REPORT UPON DESIGNATION OF AN OPERATION.—Within

45 days after the Secretary of Defense identifies an operation pursuant to subsection (a)(2), the Secretary of Defense shall submit

to Congress a report that sets forth the following:

‘‘(1) The manner by which the Secretary proposes to obtain

funds for the cost to the United States of the operation, including a specific discussion of how the Secretary proposes to restore

balances in—

‘‘(A) the Defense Business Operations Fund (or a

successor fund), or

‘‘(B) the accounts from which the Secretary transfers

funds under the authority of subsection (c), to the levels

that would have been anticipated but for the provisions

of subsection (c).

‘‘(2) If the operation is described in subsection (a)(1)(B),

a justification why the budgetary resources of another department or agency of the Federal Government, instead of resources

of the Department of Defense, are not being used for carrying

out the operation.

‘‘(3) The objectives of the operation.

Records.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 417

‘‘(4) The estimated duration of the operation and of any

deployment of armed forces personnel in such operation. ‘‘(5) The estimated incremental cost of the operation to

the United States.

‘‘(6) The exit criteria for the operation and for the withdrawal of the elements of the armed forces involved in the

operation.

‘‘(e) LIMITATIONS.—(1) The Secretary may not 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).

‘‘(2) The Secretary may not restore balances in the Defense

Business Operations Fund or any other fund or account through

the use of unobligated amounts in an operation and maintenance

appropriation that are available within that appropriation for (A)

an account (known as a budget activity 1 account) that is specified

as being for operating forces, or (B) an account (known as a budget

activity 2 account) that is specified as being for mobilization.

‘‘(f) SUBMISSION OF REQUESTS FOR SUPPLEMENTAL APPROPRIATIONS.—It is the sense of Congress that whenever there is an

operation described in subsection (a), the President should, not

later than 90 days after the date on which notification is provided

pursuant to subsection (a)(3), submit to Congress a request for

the enactment of supplemental appropriations for the then-current

fiscal year 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 and should, as

necessary, submit subsequent requests for the enactment of such

appropriations.

‘‘(g) 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). Incremental costs do not include the cost

of property or services acquired by the Department that are paid

for by a source outside the Department or out of funds contributed

by such a source.

‘‘(h) 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.

‘‘(i) 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.’’.

(2) The item relating to section 127a in the table of sections

at the beginning of chapter 3 of such title is amended to read

as follows:

‘‘127a. Operations for which funds are not provided in advance: funding mechanisms.’’.

(b) EFFECTIVE DATE.—The amendment to section 127a of title

10, United States Code, made by subsection (a) shall take effect

on the date of the enactment of this Act and shall apply to any

10 USC 127a

note.

110 STAT. 418 PUBLIC LAW 104–106—FEB. 10, 1996

operation of the Department of Defense that is in effect on or

after that date, whether such operation is begun before, on, or

after such date of enactment. In the case of an operation begun

before such date, any reference in such section to the commencement of such operation shall be treated as referring to the effective

date under the preceding sentence.

SEC. 1004. OPERATION PROVIDE COMFORT.

(a) AUTHORIZATION OF AMOUNTS AVAILABLE.—Within the total

amounts authorized to be appropriated in titles III and IV, there

is hereby authorized to be appropriated for fiscal year 1996 for

costs associated with Operation Provide Comfort— (1) $136,300,000 for operation and maintenance costs; and

(2) $7,000,000 for incremental military personnel costs. (b) REPORT.—Not more than $70,000,000 of the amount appro- priated under subsection (a) may be obligated until the Secretary

of Defense submits to the congressional defense committees a report

on Operation Provide Comfort which includes the following: (1) A detailed presentation of the projected costs to be incurred by the Department of Defense for Operation Provide

Comfort during fiscal year 1996, together with a discussion

of missions and functions expected to be performed by the

Department as part of that operation during that fiscal year. (2) A detailed presentation of the projected costs to be incurred by other departments and agencies of the Federal

Government participating in or providing support to Operation

Provide Comfort during fiscal year 1996. (3) A discussion of available options to reduce the involvement of the Department of Defense in those aspects of Operation Provide Comfort that are not directly related to the military mission of the Department of Defense. (4) A plan establishing an exit strategy for United States involvement in, and support for, Operation Provide Comfort.

(c) OPERATION PROVIDE COMFORT.—For purposes of this section,

the term ‘‘Operation Provide Comfort’’ means the operation of the

Department of Defense that as of October 30, 1995, is designated

as Operation Provide Comfort.

SEC. 1005. OPERATION ENHANCED SOUTHERN WATCH.

(a) AUTHORIZATION OF AMOUNTS AVAILABLE.—Within the total

amounts authorized to be appropriated in titles III and IV, there

is hereby authorized to be appropriated for fiscal year 1996 for

costs associated with Operation Enhanced Southern Watch— (1) $433,400,000 for operation and maintenance costs; and

(2) $70,400,000 for incremental military personnel costs. (b) REPORT.—(1) Of the amounts specified in subsection (a),

not more than $250,000,000 may be obligated until the Secretary

of Defense submits to the congressional defense committees a report

designating Operation Enhanced Southern Watch, or significant

elements thereof, as a forward presence operation for which funding

should be budgeted as part of the annual defense budget process

in the same manner as other activities of the Armed Forces involving forward presence or forward deployed forces. (2) The report shall set forth the following: (A) The expected duration and annual costs of the various

elements of Operation Enhanced Southern Watch.

(B) Those elements of Operation Enhanced Southern Watch

that are semi-permanent in nature and should be budgeted

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 419

in the future as part of the annual defense budget process

in the same manner as other activities of the Armed Forces

involving forward presence or forward deployed forces. (C) The political and military objectives associated with

Operation Enhanced Southern Watch.

(D) The contributions (both in-kind and actual) by other

nations to the costs of conducting Operation Enhanced Southern

Watch.

(c) OPERATION ENHANCED SOUTHERN WATCH.—For purposes

of this section, the term ‘‘Operation Enhanced Southern Watch’’

means the operation of the Department of Defense that as of October 30, 1995, is designated as Operation Enhanced Southern Watch.

SEC. 1006. 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. 1007. 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; 109

Stat. 73).

(b) NEW AUTHORIZATION.—The appropriation provided in section 104 of such Act (109 Stat. 79) is hereby authorized.

SEC. 1008. AUTHORIZATION REDUCTIONS TO REFLECT SAVINGS

FROM REVISED ECONOMIC ASSUMPTIONS.

(a) REDUCTION.—The total amount authorized to be appropriated in titles I, II, and III of this Act is hereby reduced by

$832,000,000 to reflect savings from revised economic assumptions.

110 STAT. 420 PUBLIC LAW 104–106—FEB. 10, 1996

Such reduction shall be made from accounts in those titles as

follows:

Operation and Maintenance, Army, $54,000,000.

Operation and Maintenance, Navy, $80,000,000.

Operation and Maintenance, Marine Corps, $9,000,000.

Operation and Maintenance, Air Force, $51,000,000.

Operation and Maintenance, Defense-Wide, $36,000,000.

Operation and Maintenance, Army Reserve, $4,000,000.

Operation and Maintenance, Navy Reserve, $4,000,000.

Operation and Maintenance, Marine Corps Reserve,

$1,000,000.

Operation and Maintenance, Air Force Reserve, $3,000,000.

Operation and Maintenance, Army National Guard,

$7,000,000.

Operation and Maintenance, Air National Guard,

$7,000,000.

Drug Interdiction and Counter-Drug Activities, Defense,

$5,000,000.

Environmental Restoration, Defense, $11,000,000.

Overseas Humanitarian, Disaster, and Civic Aid,

$1,000,000.

Former Soviet Union Threat Reduction, $2,000,000.

Defense Health Program, $51,000,000.

Aircraft Procurement, Army, $9,000,000.

Missile Procurement, Army, $5,000,000.

Procurement of Weapons and Tracked Combat Vehicles,

Army, $10,000,000.

Procurement of Ammunition, Army, $6,000,000.

Other Procurement, Army, $17,000,000.

Aircraft Procurement, Navy, $29,000,000.

Weapons Procurement, Navy, $13,000,000.

Shipbuilding and Conversion, Navy, $42,000,000.

Other Procurement, Navy, $18,000,000.

Procurement, Marine Corps, $4,000,000.

Aircraft Procurement, Air Force, $50,000,000.

Missile Procurement, Air Force, $29,000,000.

Other Procurement, Air Force, $45,000,000.

Procurement, Defense-Wide, $16,000,000.

Chemical Agents and Munitions Destruction, Defense,

$5,000,000.

Research, Development, Test and Evaluation, Army,

$20,000,000.

Research, Development, Test and Evaluation, Navy,

$50,000,000.

Research, Development, Test and Evaluation, Air Force,

$79,000,000.

Research, Development, Test and Evaluation, DefenseWide, $57,000,000.

Research, Development, Test and Evaluation, Defense,

$2,000,000.

(b) REDUCTIONS TO BE APPLIED PROPORTIONALLY.—Reductions

under this section shall be applied proportionally to each budget

activity, activity group, and subactivity group and to each program,

project, and activity within each account.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 421

Subtitle B—Naval Vessels and Shipyards

SEC. 1011. IOWA CLASS BATTLESHIPS.

(a) RETURN TO NAVAL VESSEL REGISTER.—The Secretary of

the Navy shall list on the Naval Vessel Register, and maintain

on such register, at least two of the Iowa-class battleships that

were stricken from the register in February 1995. (b) SUPPORT.—The Secretary shall retain the existing logistical

support necessary for support of at least two operational Iowa

class battleships in active service, including technical manuals,

repair and replacement parts, and ordnance.

(c) SELECTION OF SHIPS.—The Secretary shall select for listing on the Naval Vessel Register under subsection (a) Iowa class battleships that are in good material condition and can provide adequate

fire support for an amphibious assault.

(d) REPLACEMENT FIRE-SUPPORT CAPABILITY.—(1) If the Secretary of the Navy makes a certification described in paragraph

(2), the requirements of subsections (a) and (b) shall terminate,

effective 60 days after the date of the submission of such

certification.

(2) A certification referred to in paragraph (1) is a certification

submitted by the Secretary of the Navy in writing to the Committee

on Armed Services of the Senate and the Committee on National

Security of the House of Representatives that the Navy has within

the fleet an operational surface fire-support capability that equals

or exceeds the fire-support capability that the Iowa class battleships

listed on the Naval Vessel Register pursuant to subsection (a)

would, if in active service, be able to provide for Marine Corps

amphibious assaults and operations ashore.

SEC. 1012. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN

COUNTRIES.

(a) TRANSFERS BY GRANT.—The Secretary of the Navy is authorized to transfer on a grant basis under section 516 of the Foreign

Assistance Act of 1961 (22 U.S.C. 2321j) frigates of the Oliver

Hazard Perry class to other countries as follows:

(1) To the Government of Bahrain, the guided missile frigate Jack Williams (FFG 24).

(2) To the Government of Egypt, the frigate Copeland (FFG

25).

(3) To the Government of Turkey, the frigates Clifton

Sprague (FFG 16) and Antrim (FFG 20).

(b) TRANSFERS BY LEASE OR SALE.—The Secretary of the Navy

is authorized to transfer on a lease basis under section 61 of

the Arms Export Control Act (22 U.S.C. 2796) or on a sale basis

under section 21 of the Arms Export Control Act (22 U.S.C. 2761)

frigates of the Oliver Hazard Perry class to other countries as

follows:

(1) To the Government of Egypt, the frigate Duncan (FFG

10).

(2) To the Government of Oman, the guided missile frigate

Mahlon S. Tisdale (FFG 27).

(3) To the Government of Turkey, the frigate Flatley (FFG

21).

(4) To the Government of the United Arab Emirates, the

guided missile frigate Gallery (FFG 26).

Certification.

Termination

date.

110 STAT. 422 PUBLIC LAW 104–106—FEB. 10, 1996

(c) FINANCING FOR TRANSFERS BY LEASE.—Section 23 of the

Arms Export Control Act (22 U.S.C. 2763) may be used to provide

financing for any transfer by lease under subsection (b) in the

same manner as if such transfer were a procurement by the recipient nation of a defense article.

(d) COSTS OF TRANSFERS.—Any expense incurred by the United

States in connection with a transfer authorized by subsection (a)

or (b) shall be charged to the recipient.

(e) EXPIRATION OF AUTHORITY.—The authority to transfer a

vessel under subsection (a) and under subsection (b) shall expire

at the end of the two-year period beginning on the date of the

enactment of this Act, except that a lease entered into during

that period under any provision of subsection (b) may be renewed.

(f) REPAIR AND REFURBISHMENT IN UNITED STATES SHIPYARDS.—The Secretary of the Navy shall require, as a condition

of the transfer of a vessel under this section, that the country

to which the vessel is transferred have such repair or refurbishment

of the vessel as is needed, before the vessel joins the naval forces

of that country, performed at a shipyard located in the United

States, including a United States Navy shipyard.

(g) PROHIBITION ON CERTAIN TRANSFERS OF VESSELS ON GRANT

BASIS.—(1) Section 516 of the Foreign Assistance Act of 1961 (22

U.S.C. 2321j) is amended by adding at the end the following new

subsection:

‘‘(g) PROHIBITION ON CERTAIN TRANSFERS OF VESSELS ON GRANT

BASIS.—(1) The President may not transfer on a grant basis under

this section a vessel that is in excess of 3,000 tons or that is

less than 20 years of age.

‘‘(2) If the President determines that it is in the national

security interests of the United States to transfer a particular

vessel on a grant basis under this section, the President may

request that Congress enact legislation exempting the transfer from

the prohibition in paragraph (1).’’.

(2) The amendment made by paragraph (1) shall apply with

respect to the transfer of a vessel on or after the date of the

enactment of this Act (other than a vessel the transfer of which

is authorized by subsection (a) or by law before the date of the

enactment of this Act).

SEC. 1013. 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

Applicability.

22 USC 2321j

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 423

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, subject to the availability of funds authorized

and appropriated for such purpose. Nothing in this subsection shall

be construed to preclude the Secretary of the Navy from competing

the award of the two options between the two shipyards holding

new construction contracts referred to in subsection (a)(3).

(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. 1014. NATIONAL DEFENSE RESERVE FLEET.

(a) AVAILABILITY OF NATIONAL DEFENSE SEALIFT FUND.—Section 2218 of title 10, United States Code, is amended—

(1) in subsection (c)(1)—

(A) by striking out ‘‘only for—’’ in the matter preceding

subparagraph (A) and inserting in lieu thereof ‘‘only for

the following purposes:’’;

(B) by capitalizing the first letter of the first word

of subparagraphs (A), (B), (C), and (D);

(C) by striking out the semicolon at the end of subparagraphs (A) and (B) and inserting in lieu thereof a period;

(D) by striking out ‘‘; and’’ at the end of subparagraph

(C) and inserting in lieu thereof a period; and

(E) by adding at the end the following new

subparagraph:

‘‘(E) Expenses for maintaining the National Defense

Reserve Fleet under section 11 of the Merchant Ship Sales

Act of 1946 (50 U.S.C. App. 1744), and for the costs of acquisition of vessels for, and alteration and conversion of vessels

110 STAT. 424 PUBLIC LAW 104–106—FEB. 10, 1996

in (or to be placed in), the fleet, but only for vessels built

in United States shipyards.’’; and (2) in subsection (i), by inserting ‘‘(other than subsection (c)(1)(E))’’ after ‘‘Nothing in this section’’.

(b) CLARIFICATION OF EXEMPTION OF NDRF VESSELS FROM

RETROFIT REQUIREMENT.—Section 11 of the Merchant Ship Sales

Act of 1946 (50 U.S.C. App. 1744) is amended by adding at the

end the following new subsection:

‘‘(e) Vessels in the National Defense Reserve Fleet are exempt

from the provisions of section 3703a of title 46, United States

Code.’’.

(c) AUTHORITY TO USE NATIONAL DEFENSE SEALIFT FUND TO

CONVERT TWO VESSELS.—Of the amount authorized to be appropriated in section 302 for fiscal year 1996 for the National Defense

Sealift Fund under section 2218 of title 10, United States Code,

not more than $20,000,000 shall be available for conversion work

on the following two roll-on/roll-off vessels, which were acquired

by the Maritime Administration during fiscal year 1995:

(1) M/V Cape Knox (ON–1036323).

(2) M/V Cape Kennedy (ON–1036324).

SEC. 1015. NAVAL SALVAGE FACILITIES.

Chapter 637 of title 10, United States Code, is amended to

read as follows:

‘‘CHAPTER 637—SALVAGE FACILITIES

‘‘Sec.

‘‘7361. Authority to provide for necessary salvage facilities.

‘‘7362. Acquisition and transfer of vessels and equipment.

‘‘7363. Settlement of claims.

‘‘7364. Disposition of receipts.

‘‘§ 7361. Authority to provide for necessary salvage facilities

‘‘(a) AUTHORITY.—The Secretary of the Navy may provide, by

contract or otherwise, necessary salvage facilities for public and

private vessels.

‘‘(b) COORDINATION WITH SECRETARY OF TRANSPORTATION.— The Secretary shall submit to the Secretary of Transportation for

comment each proposed contract for salvage facilities that affects

the interests of the Department of Transportation.

‘‘(c) LIMITATION.—The Secretary of the Navy may enter into a term contract under subsection (a) only if the Secretary determines that available commercial salvage facilities are inadequate

to meet the requirements of national defense.

‘‘(d) PUBLIC NOTICE.—The Secretary may not enter into a contract under subsection (a) until the Secretary has provided public

notice of the intent to enter into such a contract.

‘‘§ 7362. Acquisition and transfer of vessels and equipment

‘‘(a) AUTHORITY.—The Secretary of the Navy may acquire or

transfer for operation by private salvage companies such vessels

and equipment as the Secretary considers necessary.

‘‘(b) AGREEMENT ON USE.—Before any salvage vessel or salvage

gear is transferred by the Secretary to a private party, the private

party must agree in writing with the Secretary that the vessel

or gear will be used to support organized offshore salvage facilities

for a period of as many years as the Secretary considers appropriate.

Contracts.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 425

‘‘(c) REFERENCE TO AUTHORITY TO ADVANCE FUNDS FOR IMME- DIATE SALVAGE OPERATIONS.—For authority for the Secretary of

the Navy to advance to private salvage companies such funds as

the Secretary considers necessary to provide for the immediate

financing of salvage operations, see section 2307(g)(2) of this title.

‘‘§ 7363. Settlement of claims

‘‘The Secretary of the Navy may settle any claim by the United

States for salvage services rendered by the Department of the

Navy and may receive payment of any such claim.

‘‘§ 7364. Disposition of receipts

‘‘Amounts received under this chapter shall be credited to

appropriations for maintaining naval salvage facilities. However,

any amount received under this chapter in any fiscal year in excess

of naval salvage costs incurred by the Navy during that fiscal

year shall be deposited into the general fund of the Treasury.’’.

SEC. 1016. VESSELS SUBJECT TO REPAIR UNDER PHASED MAINTENANCE CONTRACTS.

(a) IN GENERAL.—The Secretary of the Navy shall ensure that

any vessel that is covered by the contract referred to in subsection

(b) remains covered by that contract, regardless of the operating

command to which the vessel is subsequently assigned, unless

the vessel is taken out of service for the Department of the Navy.

(b) COVERED CONTRACT.—The contract referred to in subsection

(a) is the contract entered into before the date of the enactment

of this Act for the phased maintenance of AE class ships.

SEC. 1017. 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. 1018. SENSE OF CONGRESS CONCERNING NAMING OF AMPHIBIOUS SHIPS.

It is the sense of Congress that the Secretary of the Navy— (1) should name the vessel to be designated LHD–7 as

the U.S.S. Iwo Jima; and

(2) should name the vessel to be designated LPD–17, and

each subsequent ship of the LPD–17 class, after a Marine

Corps battle or a member of the Marine Corps.

SEC. 1019. SENSE OF CONGRESS CONCERNING 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. 1020. 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)

Joseph Vittori.

110 STAT. 426 PUBLIC LAW 104–106—FEB. 10, 1996

to Tidewater Community College, Portsmouth, Virginia, for scientific and educational purposes.

(b) VESSEL.—The authority under subsection (a) applies in the

case of a riverine patrol craft of the U.S.S. Swift class.

(c) LIMITATION.—The transfer authorized by subsection (a) may

be made only if the Secretary determines that the vessel to be

transferred is of no further use to the United States for national

security purposes.

(d) TERMS AND CONDITIONS.—The Secretary may require such

terms and conditions in connection with the transfer authorized

by this section as the Secretary considers appropriate.

Subtitle C—Counter-Drug Activities

SEC. 1021. REVISION AND CLARIFICATION OF AUTHORITY FOR FEDERAL SUPPORT OF DRUG INTERDICTION AND COUNTERDRUG ACTIVITIES OF THE NATIONAL GUARD.

(a) FUNDING ASSISTANCE AUTHORIZED.—Subsection (a) of section 112 of title 32, United States Code, is amended to read as

follows:

‘‘(a) FUNDING ASSISTANCE.—The Secretary of Defense may provide funds to the Governor of a State who submits to the Secretary

a State drug interdiction and counter-drug activities plan satisfying

the requirements of subsection (c). Such funds shall be used for—

‘‘(1) the pay, allowances, clothing, subsistence, gratuities,

travel, and related expenses, as authorized by State law, of

personnel of the National Guard of that State used, while

not in Federal service, for the purpose of drug interdiction

and counter-drug activities;

‘‘(2) the operation and maintenance of the equipment and

facilities of the National Guard of that State used for the

purpose of drug interdiction and counter-drug activities; and

‘‘(3) the procurement of services and leasing of equipment

for the National Guard of that State used for the purpose

of drug interdiction and counter-drug activities.’’.

(b) REORGANIZATION OF SECTION.—Such section is further

amended—

(1) by redesignating subsection (f) as subsection (h);

(2) by redesignating subsection (d) as subsection (g) and

transferring that subsection to appear before subsection (h),

as redesignated by paragraph (1); and

(3) by redesignating subsections (b) and (c) as subsections

(c) and (d), respectively.

(c) STATE DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES

PLAN.—Subsection (c) of such section, as redesignated by subsection (b)(3), is amended—

(1) in the matter preceding paragraph (1), by striking out ‘‘A plan referred to in subsection (a)’’ and inserting in lieu

thereof ‘‘A State drug interdiction and counter-drug activities

plan’’;

(2) by striking out ‘‘and’’ at the end of paragraph (2);

and

(3) in paragraph (3)— (A) by striking out ‘‘annual training’’ and inserting

in lieu thereof ‘‘training’’;

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 427

(B) by striking out the period at the end and inserting

in lieu thereof a semicolon; and

(C) by adding at the end the following new paragraphs: ‘‘(4) include a certification by the Attorney General of the

State (or, in the case of a State with no position of Attorney

General, a civilian official of the State equivalent to a State

attorney general) that the use of the National Guard of the

State for the activities proposed under the plan is authorized

by, and is consistent with, State law; and

‘‘(5) certify that the Governor of the State or a civilian

law enforcement official of the State designated by the Governor

has determined that any activities included in the plan that

are carried out in conjunction with Federal law enforcement

agencies serve a State law enforcement purpose.’’.

(d) EXAMINATION OF STATE PLAN.—Subsection (d) of such section, as redesignated by subsection (b)(3), is amended—

(1) in paragraph (1)—

(A) by striking out ‘‘subsection (b)’’ and inserting in

lieu thereof ‘‘subsection (c)’’; and

(B) by inserting after ‘‘Before funds are provided to

the Governor of a State under this section’’ the following:

‘‘and before members of the National Guard of that State

are ordered to full-time National Guard duty as authorized

in subsection (b)’’; and

(2) in paragraph (3)—

(A) in subparagraph (A), by striking out ‘‘subsection

(b)’’ and inserting in lieu thereof ‘‘subsection (c)’’; and

(B) by striking out subparagraph (B) and inserting

in lieu thereof the following:

‘‘(B) pursuant to the plan submitted for a previous fiscal

year, funds were provided to the State in accordance with

subsection (a) or personnel of the National Guard of the State

were ordered to perform full-time National Guard duty in

accordance with subsection (b).’’.

(e) USE OF PERSONNEL PERFORMING FULL-TIME NATIONAL

GUARD DUTY.—Such section is further amended by inserting after

subsection (a) the following new subsection (b):

‘‘(b) USE OF PERSONNEL PERFORMING FULL-TIME NATIONAL

GUARD DUTY.—Under regulations prescribed by the Secretary of

Defense, personnel of the National Guard of a State may, in accordance with the State drug interdiction and counter-drug activities

plan referred to in subsection (c), be ordered to perform full-time

National Guard duty under section 502(f) of this title for the purpose

of carrying out drug interdiction and counter-drug activities.’’.

(f) END STRENGTH LIMITATION.—Such section is further

amended by inserting after subsection (e) the following new subsection (f):

‘‘(f) END STRENGTH LIMITATION.—(1) Except as provided in paragraph (2), at the end of a fiscal year there may not be more

than 4000 members of the National Guard—

‘‘(A) on full-time National Guard duty under section 502(f)

of this title to perform drug interdiction or counter-drug activities pursuant to an order to duty for a period of more than

180 days; or

‘‘(B) on duty under State authority to perform drug interdiction or counter-drug activities pursuant to an order to duty

for a period of more than 180 days with State pay and allowRegulations.

Certification.

110 STAT. 428 PUBLIC LAW 104–106—FEB. 10, 1996

ances being reimbursed with funds provided under subsection

(a)(1).

‘‘(2) The Secretary of Defense may increase the end strength

authorized under paragraph (1) by not more than 20 percent for

any fiscal year if the Secretary determines that such an increase

is necessary in the national security interests of the United States.’’.

(g) DEFINITIONS.—Subsection (h) of such section, as redesignated by subsection (b)(1), is amended by striking out paragraph

(1) and inserting in lieu thereof the following:

‘‘(1) The term ‘drug interdiction and counter-drug activities’,

with respect to the National Guard of a State, means the

use of National Guard personnel in drug interdiction and

counter-drug law enforcement activities authorized by the law

of the State and requested by the Governor of the State.’’.

(h) TECHNICAL AMENDMENTS.—Subsection (e) of such section

is amended—

(1) in paragraph (1), by striking out ‘‘sections 517 and

524’’ and inserting in lieu thereof ‘‘sections 12011 and 12012’’;

and

(2) in paragraph (2), by striking out ‘‘the Committees on

Armed Services of the Senate and House of Representatives’’

and inserting in lieu thereof ‘‘the Committee on Armed Services

of the Senate and the Committee on National Security of the

House of Representatives’’.

Subtitle D—Civilian Personnel

SEC. 1031. MANAGEMENT OF DEPARTMENT OF DEFENSE CIVILIAN

PERSONNEL.

Section 129 of title 10, United States Code, is amended—

(1) in subsection (a)—

(A) by striking out ‘‘man-year constraint or limitation’’

and inserting in lieu thereof ‘‘constraint or limitation in

terms of man years, end strength, full-time equivalent positions, or maximum number of employees’’; and

(B) by adding at the end the following new sentence:

‘‘The Secretary of Defense and the Secretaries of the military departments may 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.’’;

(2) in subsection (b)(2), by striking out ‘‘any end-strength’’

and inserting in lieu thereof ‘‘any constraint or limitation in

terms of man years, end strength, full-time equivalent positions,

or maximum number of employees’’; and

(3) by adding at the end the following new subsection:

‘‘(d) With respect to each budget activity within an appropriation for a 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 with the combination of skills

and qualifications that are necessary to carry out the functions

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 429

within that budget activity for which funds are provided for that

fiscal year.’’.

SEC. 1032. CONVERSION OF MILITARY POSITIONS TO CIVILIAN POSITIONS.

(a) CONVERSION REQUIREMENT.—(1) By September 30, 1997,

the Secretary of Defense shall convert at least 10,000 military

positions to civilian positions.

(2) At least 3,000 of the military positions converted to satisfy

the requirement of paragraph (1) shall be converted to civilian

positions not later than September 30, 1996.

(3) In this subsection:

(A) The term ‘‘military position’’ means a position that,

as of the date of the enactment of this Act, is authorized

to be filled by a member of the Armed Forces on active duty.

(B) The term ‘‘civilian position’’ means a position that is

required to be filled by a civilian employee of the Department

of Defense.

(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. 1033. ELIMINATION OF 120-DAY LIMITATION ON DETAILS OF CERTAIN EMPLOYEES.

(a) ELIMINATION OF LIMITATION.—Subsection (b) of section 3341

of title 5, United States Code, is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and

(2) by adding at the end the following:

‘‘(2) The 120-day limitation in paragraph (1) for details and

renewals of details does not apply to the Department of Defense

in the case of a detail—

‘‘(A) made in connection with the closure or realignment

of a military installation pursuant to a base closure law or

an organizational restructuring of the Department as part of

a reduction in the size of the armed forces or the civilian

workforce of the Department; and

‘‘(B) in which the position to which the employee is detailed

is eliminated on or before the date of the closure, realignment,

or restructuring.

‘‘(c) For purposes of this section—

‘‘(1) the term ‘base closure law’ means—

‘‘(A) section 2687 of title 10;

‘‘(B) title II of the Defense Authorization Amendments

and Base Closure and Realignment Act (10 U.S.C. 2687

note); and

‘‘(C) the Defense Base Closure and Realignment Act

of 1990 (10 U.S.C. 2687 note); and

‘‘(2) the term ‘military installation’—

‘‘(A) in the case of an installation covered by section

2687 of title 10, has the meaning given such term in

subsection (e)(1) of such section;

‘‘(B) in the case of an installation covered by the Act

referred to in subparagraph (B) of paragraph (1), has the

meaning given such term in section 209(6) of such Act;

and

Effective date.

10 USC 129a

note.

110 STAT. 430 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(C) in the case of an installation covered by the Act referred to in subparagraph (C) of that paragraph, has

the meaning given such term in section 2910(4) of such

Act.’’.

(b) APPLICABILITY.—The amendments made by subsection (a)

apply to details made before the date of the enactment of this

Act but still in effect on that date and details made on or after

that date.

SEC. 1034. AUTHORITY FOR CIVILIAN EMPLOYEES OF DEPARTMENT

OF DEFENSE TO PARTICIPATE VOLUNTARILY IN REDUCTIONS IN FORCE.

Section 3502 of title 5, United States Code, is amended by

adding at the end the following:

‘‘(f)(1) The Secretary of Defense or the Secretary of a military

department may—

‘‘(A) release in a reduction in force an employee who volunteers for the release even though the employee is not otherwise

subject to release in the reduction in force under the criteria

applicable under the other provisions of this section; and

‘‘(B) for each employee voluntarily released in the reduction

in force under subparagraph (A), retain an employee in a similar position who would otherwise be released in the reduction

in force under such criteria.

‘‘(2) A voluntary release of an employee in a reduction in

force pursuant to paragraph (1) shall be treated as an involuntary

release in the reduction in force.

‘‘(3) An employee with critical knowledge and skills (as defined

by the Secretary concerned) may not participate in a voluntary

release under paragraph (1) if the Secretary concerned determines

that such participation would impair the performance of the mission

of the Department of Defense or the military department concerned.

‘‘(4) The regulations prescribed under this section shall incorporate the authority provided in this subsection.

‘‘(5) The authority under paragraph (1) may not be exercised

after September 30, 1996.’’.

SEC. 1035. AUTHORITY TO PAY SEVERANCE PAYMENTS IN LUMP SUMS.

Section 5595 of title 5, United States Code, is amended by

adding at the end the following:

‘‘(i)(1) In the case of an employee of the Department of Defense

who is entitled to severance pay under this section, the Secretary

of Defense or the Secretary of the military department concerned

may, upon application by the employee, pay the total amount of

the severance pay to the employee in one lump sum.

‘‘(2)(A) If an employee paid severance pay in a lump sum

under this subsection is reemployed by the Government of the

United States or the government of the District of Columbia at

such time that, had the employee been paid severance pay in

regular pay periods under subsection (b), the payments of such

pay would have been discontinued under subsection (d) upon such

reemployment, the employee shall repay to the Department of

Defense (for the military department that formerly employed the

employee, if applicable) an amount equal to the amount of severance

pay to which the employee was entitled under this section that

would not have been paid to the employee under subsection (d)

by reason of such reemployment.

Termination

date.

Regulations.

5 USC 3341 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 431

‘‘(B) The period of service represented by an amount of sever- ance pay repaid by an employee under subparagraph (A) shall

be considered service for which severance pay has not been received

by the employee under this section. ‘‘(C) Amounts repaid to an agency under this paragraph shall be credited to the appropriation available for the pay of employees

of the agency for the fiscal year in which received. Amounts so

credited shall be merged with, and shall be available for the

same purposes and the same period as, the other funds in that

appropriation. ‘‘(3) If an employee fails to repay to an agency an amount required to be repaid under paragraph (2)(A), that amount is

recoverable from the employee as a debt due the United States. ‘‘(4) This subsection applies with respect to severance pay pay- able under this section for separations taking effect on or after

the date of the enactment of the National Defense Authorization

Act for Fiscal Year 1996 and before October 1, 1999.’’.

SEC. 1036. CONTINUED HEALTH INSURANCE COVERAGE.

Section 8905a(d)(4) of title 5, United States Code, is amended—

(1) in subparagraph (A), by inserting ‘‘, or a voluntary separation from a surplus position,’’ after ‘‘an involuntary separation from a position’’; and (2) by adding at the end the following new subparagraph: ‘‘(C) For the purpose of this paragraph, ‘surplus position’ means a position which is identified in pre-reduction-in-force planning

as no longer required, and which is expected to be eliminated

under formal reduction-in-force procedures.’’.

SEC. 1037. REVISION OF AUTHORITY FOR APPOINTMENTS OF INVOLUNTARILY SEPARATED MILITARY RESERVE TECHNICIANS.

(a) REVISION OF AUTHORITY.—Section 3329 of title 5, United

States Code, as added by section 544 of the National Defense

Authorization Act for Fiscal Year 1993 (Public Law 102–484; 106

Stat. 2415), is amended—

(1) in subsection (b), by striking out ‘‘be offered’’ and insert- ing in lieu thereof ‘‘be provided placement consideration in

a position described in subsection (c) through a priority placement program of the Department of Defense’’; and (2) by striking out subsection (c) and inserting in lieu thereof the following new subsection (c):

‘‘(c)(1) The position for which placement consideration shall be provided to a former military technician under subsection (b)

shall be a position— ‘‘(A) in either the competitive service or the excepted service;

‘‘(B) within the Department of Defense; and

‘‘(C) in which the person is qualified to serve, taking into

consideration whether the employee in that position is required

to be a member of a reserve component of the armed forces

as a condition of employment.

‘‘(2) To the maximum extent practicable, the position shall

also be in a pay grade or other pay classification sufficient to

ensure that the rate of basic pay of the former military technician,

upon appointment to the position, is not less than the rate of

basic pay last received by the former military technician for technician service before separation.’’.

Applicability.

110 STAT. 432 PUBLIC LAW 104–106—FEB. 10, 1996

(b) TECHNICAL AND CLERICAL AMENDMENTS.—(1) The section

3329 of title 5, United States Code, that was added by section

4431 of the National Defense Authorization Act for Fiscal Year

1993 (Public Law 102–484; 106 Stat. 2719) is redesignated as section 3330 of such title.

(2) The table of sections at the beginning of chapter 33 of

such title is amended by striking out the item relating to section

3329, as added by section 4431(b) of such Act (106 Stat. 2720),

and inserting in lieu thereof the following new item:

‘‘3330. Government-wide list of vacant positions.’’.

SEC. 1038. WEARING OF UNIFORM BY NATIONAL GUARD TECHNICIANS.

(a) REQUIREMENT.—Section 709(b) of title 32, United States

Code, is amended to read as follows:

‘‘(b) Except as prescribed by the Secretary concerned, a technician employed under subsection (a) shall, while so employed—

‘‘(1) be a member of the National Guard;

‘‘(2) hold the military grade specified by the Secretary

concerned for that position; and

‘‘(3) wear the uniform appropriate for the member’s grade

and component of the armed forces while performing duties

as a technician.’’.

(b) UNIFORM ALLOWANCES FOR OFFICERS.—Section 417 of title

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

following:

‘‘(d)(1) For purposes of sections 415 and 416 of this title, a

period for which an officer of an armed force, while employed

as a National Guard technician, is required to wear a uniform

under section 709(b) of title 32 shall be treated as a period of

active duty (other than for training).

‘‘(2) A uniform allowance may not be paid, and uniforms may

not be furnished, to an officer under section 1593 of title 10 or

section 5901 of title 5 for a period of employment referred to

in paragraph (1) for which an officer is paid a uniform allowance

under section 415 or 416 of this title.’’.

(c) CLOTHING OR ALLOWANCES FOR ENLISTED MEMBERS.—Section 418 of title 37, United States Code, is amended—

(1) by inserting ‘‘(a)’’ before ‘‘The President’’; and

(2) by adding at the end the following:

‘‘(b) In determining the quantity and kind of clothing or allowances to be furnished pursuant to regulations prescribed under

this section to persons employed as National Guard technicians

under section 709 of title 32, the President shall take into account

the requirement under subsection (b) of such section for such persons to wear a uniform.

‘‘(c) A uniform allowance may not be paid, and uniforms may

not be furnished, under section 1593 of title 10 or section 5901

of title 5 to a person referred to in subsection (b) for a period

of employment referred to in that subsection for which a uniform

allowance is paid under section 415 or 416 of this title.’’.

SEC. 1039. 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

Regulations.

President.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 433

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. 1040. 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 reporting of alleged violations of subsection (b) directly 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: reprisals’’.

(2) The item relating to such section 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: reprisals.’’.

SEC. 1041. COVERAGE OF NONAPPROPRIATED FUND EMPLOYEES

UNDER AUTHORITY FOR FLEXIBLE AND COMPRESSED

WORK SCHEDULES.

Paragraph (2) of section 6121 of title 5, United States Code,

is amended to read as follows:

‘‘(2) ‘employee’ has the meaning given the term in subsection (a) of section 2105 of this title, except that such term

also includes an employee described in subsection (c) of that

section;’’.

110 STAT. 434 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 1042. 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), an 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, 1997; 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. 1043. ELECTIONS RELATING TO RETIREMENT COVERAGE.

(a) IN GENERAL.—

(1) CIVIL SERVICE RETIREMENT SYSTEM.—Section 8347(q)

of title 5, United States Code, is amended—

(A) in paragraph (1)—

(i) by striking ‘‘of the Department of Defense or

the Coast Guard’’ in the matter before subparagraph

(A); and

(ii) by striking ‘‘3 days’’ and inserting ‘‘1 year’’;

and

(B) in paragraph (2)(C)—

(i) by striking ‘‘3 days’’ and inserting ‘‘1 year’’;

and

(ii) by striking ‘‘in the Department of Defense or

the Coast Guard, respectively,’’.

(2) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—Section

8461(n) of title 5, United States Code, is amended—

(A) in paragraph (1)—

(i) by striking ‘‘of the Department of Defense or

the Coast Guard’’ in the matter before subparagraph

(A); and

(ii) by striking ‘‘3 days’’ and inserting ‘‘1 year’’;

and

(B) in paragraph (2)(C)—

(i) by striking ‘‘3 days’’ and inserting ‘‘1 year’’;

and

(ii) by striking ‘‘in the Department of Defense or

the Coast Guard, respectively,’’.

(b) REGULATIONS.—Not later than 6 months after the date

of the enactment of this Act, the Office of Personnel Management

(and each of the other administrative authorities, within the meaning of subsection (c)(2)(C)(iii)) shall prescribe any regulations (or

make any modifications in existing regulations) necessary to carry

Notification.

5 USC 8347 note.

10 USC 1587

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 435

out this section and the amendments made by this section, including

regulations to provide for the notification of individuals who may

be affected by the enactment of this section. All regulations (and

modifications to regulations) under the preceding sentence shall

take effect on the same date.

(c) APPLICABILITY; RELATED PROVISIONS.—

(1) PROSPECTIVE RULES.—Except as otherwise provided in

this subsection, the amendments made by this section shall

apply with respect to moves occurring on or after the effective

date of the regulations under subsection (b). Moves occurring

on or after the date of the enactment of this Act and before

the effective date of such regulations shall be subject to

applicable provisions of title 5, United States Code, disregarding

the amendments made by this section, except that any individual making an election pursuant to this sentence shall be

ineligible to make an election otherwise allowable under paragraph (2).

(2) RETROACTIVE RULES.—

(A) IN GENERAL.—The regulations under subsection (b)

shall include provisions for the application of sections

8347(q) and 8461(n) of title 5, United States Code, as

amended by this section, with respect to any individual

who, at any time after December 31, 1965, and before

the effective date of such regulations, moved between positions in circumstances that would have qualified such

individual to make an election under the provisions of

such section 8347(q) or 8461(n), as so amended, if such

provisions had then been in effect.

(B) DEADLINE; RELATED PROVISIONS.—An election

pursuant to this paragraph—

(i) shall be made within 1 year after the effective

date of the regulations under subsection (b), and

(ii) shall have the same force and effect as if it

had been timely made at the time of the move,

except that no such election may be made by any

individual—

(I) who has previously made, or had an opportunity

to make, an election under section 8347(q) or 8461(n)

of title 5, United States Code (as in effect before being

amended by this section); however, this subclause shall

not be considered to render an individual ineligible,

based on an opportunity arising out of a move occurring

during the period described in the second sentence

of paragraph (1), if no election has in fact been made

by such individual based on such move;

(II) who has not, since the move on which eligibility

for the election is based, remained continuously subject

(disregarding any break in service of less than 3 days)

to CSRS or FERS or both seriatim (if the move was

from a NAFI position) or any retirement system (or

2 or more such systems seriatim) established for

employees described in section 2105(c) of such title

(if the move was to a NAFI position); or

(III) if such election would be based on a move

to the Civil Service Retirement System from a retirement system established for employees described in

section 2105(c) of such title.

5 USC 8347 note.

Effective date.

110 STAT. 436 PUBLIC LAW 104–106—FEB. 10, 1996

(C) TRANSFERS OF CONTRIBUTIONS.— (i) IN GENERAL.—If an individual makes an election

under this paragraph to be transferred back to a retirement system in which such individual previously

participated (in this section referred to as the ‘‘previous

system’’), all individual contributions (including

interest) and Government contributions to the retirement system in which such individual is then currently

participating (in this section referred to as the ‘‘current

system’’), excluding those made to the Thrift Savings

Plan or any other defined contribution plan, which

are attributable to periods of service performed since

the move on which the election is based, shall be

paid to the fund, account, or other repository for contributions made under the previous system. For purposes of this section, the term ‘‘current system’’ shall

be considered also to include any retirement system

(besides the one in which the individual is participating

at the time of making the election) in which such

individual previously participated since the move on

which the election is based.

(ii) CONDITION SUBSEQUENT RELATING TO REPAYMENT OF LUMP-SUM CREDIT.—In the case of an individual who has received such individual’s lump-sum credit

(within the meaning of section 8401(19) of title 5,

United States Code, or a similar payment) from such

individual’s previous system, the payment described

in clause (i) shall not be made (and the election to

which it relates shall be ineffective) unless such lumpsum credit is redeposited or otherwise paid at such

time and in such manner as shall be required under

applicable regulations. Regulations to carry out this

clause shall include provisions for the computation of

interest (consistent with section 8334(e) (2) and (3)

of title 5, United States Code), if no provisions for

such computation otherwise exist.

(iii) CONDITION SUBSEQUENT RELATING TO DEFICIENCY IN PAYMENTS RELATIVE TO AMOUNTS NEEDED

TO ENSURE THAT BENEFITS ARE FULLY FUNDED.—

(I) IN GENERAL.—Except as provided in

subclause (II), the payment described in clause

(i) shall not be made (and the election to which

it relates shall be ineffective) if the actuarial

present value of the future benefits that would

be payable under the previous system with respect

to service performed by such individual after the

move on which the election under this paragraph

is based and before the effective date of the election, exceeds the total amounts required to be

transferred to the previous system under the

preceding provisions of this subparagraph with

respect to such service, as determined by the

authority administering such previous system (in

this section referred to as the ‘‘administrative

authority’’).

(II) PAYMENT OF DEFICIENCY.—A determination of a deficiency under this clause shall not

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 437

render an election ineffective if the individual pays

or arranges to pay, at a time and in a manner

satisfactory to such administrative authority, the

full amount of the deficiency described in subclause

(I).

(D) ALTERNATIVE ELECTION FOR AN INDIVIDUAL THEN

PARTICIPATING IN FERS.—

(i) APPLICABILITY.—This subparagraph applies

with respect to any individual who—

(I) is then currently participating in FERS;

and

(II) would then otherwise be eligible to make

an election under subparagraphs (A) through (C)

of this paragraph, determined disregarding the

matter in subclause (I) of subparagraph (B) before

the first semicolon therein.

(ii) ELECTION.—An individual described in clause

(i) may, instead of making an election for which such

individual is otherwise eligible under this paragraph,

elect to have all prior qualifying NAFI service of such

individual treated as creditable service for purposes

of any annuity under FERS payable out of the Civil

Service Retirement and Disability Fund.

(iii) QUALIFYING NAFI SERVICE.—For purposes of

this subparagraph, the term ‘‘qualifying NAFI service’’

means any service which, but for this subparagraph,

would be creditable for purposes of any retirement

system established for employees described in section

2105(c) of title 5, United States Code.

(iv) SERVICE CEASES TO BE CREDITABLE FOR NAFI

RETIREMENT SYSTEM PURPOSES.—Any qualifying NAFI

service that becomes creditable for FERS purposes by

virtue of an election made under this subparagraph

shall not be creditable for purposes of any retirement

system referred to in clause (iii).

(v) CONDITIONS.—An election under this subparagraph shall be subject to requirements, similar to those

set forth in subparagraph (C), to ensure that—

(I) appropriate transfers of individual and

Government contributions are made to the Civil

Service Retirement and Disability Fund; and

(II) the actuarial present value of future benefits under FERS attributable to service made creditable by such election is fully funded.

(E) ALTERNATIVE ELECTION FOR AN INDIVIDUAL THEN

PARTICIPATING IN A NAFI RETIREMENT SYSTEM.—

(i) APPLICABILITY.—This subparagraph applies

with respect to any individual who—

(I) is then currently participating in any retirement system established for employees described

in section 2105(c) of title 5, United States Code

(in this subparagraph referred to as a ‘‘NAFI

retirement system’’); and

(II) would then otherwise be eligible to make

an election under subparagraphs (A) through (C)

of this paragraph (determined disregarding the

matter in subclause (I) of subparagraph (B) before

110 STAT. 438 PUBLIC LAW 104–106—FEB. 10, 1996

the first semicolon therein) based on a move from

FERS.

(ii) ELECTION.—An individual described in clause

(i) may, instead of making an election for which such

individual is otherwise eligible under this paragraph,

elect to have all prior qualifying FERS service of such

individual treated as creditable service for purposes

of determining eligibility for benefits under a NAFI

retirement system, but not for purposes of computing

the amount of any such benefits except as provided

in clause (v)(II).

(iii) QUALIFYING FERS SERVICE.—For purposes of

this subparagraph, the term ‘‘qualifying FERS service’’

means any service which, but for this subparagraph,

would be creditable for purposes of the Federal Employees’ Retirement System.

(iv) SERVICE CEASES TO BE CREDITABLE FOR PURPOSES OF FERS.—Any qualifying FERS service that

becomes creditable for NAFI purposes by virtue of an

election made under this subparagraph shall not be

creditable for purposes of the Federal Employees’

Retirement System.

(v) FUNDING REQUIREMENTS.—

(I) IN GENERAL.—Except as provided in

subclause (II), nothing in this section or in any

other provision of law or any other authority shall

be considered to require any payment or transfer

of monies in order for an election under this

subparagraph to be effective.

(II) CONTRIBUTION REQUIRED ONLY IF INDIVIDUAL ELECTS TO HAVE SERVICE MADE CREDITABLE

FOR COMPUTATION PURPOSES AS WELL.—Under

regulations prescribed by the appropriate administrative authority, an individual making an election

under this subparagraph may further elect to have

the qualifying FERS service made creditable for

computation purposes under a NAFI retirement

system, but only if the individual pays or arranges

to pay, at a time and in a manner satisfactory

to such administrative authority, the amount necessary to fully fund the actuarial present value

of future benefits under the NAFI retirement system attributable to the qualifying FERS service.

(3) INFORMATION.—The regulations under subsection (b)

shall include provisions under which any individual—

(A) shall, upon request, be provided information or

assistance in determining whether such individual is

eligible to make an election under paragraph (2) and, if

so, the exact amount of any payment which would be

required of such individual in connection with any such

election; and

(B) may seek any other information or assistance relating to any such election.

(d) CREDITABILITY OF NAFI SERVICE FOR RIF PURPOSES.—

(1) IN GENERAL.—Clause (ii) of section 3502(a)(C) of title

5, United States Code, is amended by striking ‘‘January 1,

1987’’ and inserting ‘‘January 1, 1966’’.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 439

(2) EFFECTIVE DATE.—Notwithstanding any provision of subsection (c), the amendment made by paragraph (1) shall— (A) take effect on the date of the enactment of this

Act; and

(B) apply with respect to any reduction in force carried

out on or after such date.

SEC. 1044. EXTENSION OF TEMPORARY AUTHORITY TO PAY CIVILIAN

EMPLOYEES WITH RESPECT TO THE EVACUATION FROM

GUANTANAMO, CUBA.

(a) EXTENSION OF AUTHORITY.—The Secretary of Defense may,

until the end of January 31, 1996, and without regard to the

time limitations specified in subsection (a) of section 5523 of title

5, United States Code, make payments under the provisions of

such section from funds available for the pay of civilian personnel

in the case of employees, or an employee’s dependents or immediate

family, evacuated from Guantanamo Bay, Cuba, pursuant to the

August 26, 1994 order of the Secretary. This section shall take

effect as of October 1, 1995, and shall apply with respect to payments made for periods occurring on or after that date.

(b) MONTHLY REPORT.—On the first day of each month beginning after the date of the enactment of this Act and ending before

March 1996, the Secretary of the Navy shall transmit to the

Committee on Armed Services of the Senate and the Committee

on National Security of the House of Representatives a report

regarding the payment of employees pursuant to subsection (a).

Each such report shall include, for the month preceding the month

in which the report is transmitted, a statement of the following:

(1) The number of the employees paid pursuant to such

section.

(2) The positions of employment of the employees.

(3) The number and location of the employees’ dependents

and immediate families.

(4) The actions taken by the Secretary to eliminate the

conditions which necessitated the payments.

Subtitle E—Miscellaneous Reporting

Requirements

SEC. 1051. REPORT ON FISCAL YEAR 1997 BUDGET SUBMISSION

REGARDING GUARD AND RESERVE COMPONENTS.

(a) REPORT.—The Secretary of Defense shall submit to the

congressional defense committees, at the same time that the President submits the budget for fiscal year 1997 under section 1105(a)

of title 31, United States Code, a report on amounts requested

in that budget for the Guard and Reserve components.

(b) CONTENT.—The report shall include the following:

(1) A description of the anticipated effect that the amounts

requested (if approved by Congress) will have to enhance the

capabilities of each of the Guard and Reserve components.

(2) A listing, with respect to each such component, of each

of the following:

(A) The amount requested for each major weapon system for which funds are requested in the budget for that

component.

Effective date.

Applicability.

5 USC 3502 note.

110 STAT. 440 PUBLIC LAW 104–106—FEB. 10, 1996

(B) The amount requested for each item of equipment (other than a major weapon system) for which funds are

requested in the budget for that component. (C) The amount requested for each military construc- tion project, together with the location of each such project,

for which funds are requested in the budget for that

component. (c) INCLUSION OF INFORMATION IN NEXT FYDP.—The Secretary of Defense shall specifically display in the next future-years defense

program (or program revision) submitted to Congress after the

date of the enactment of this Act the amounts programmed for

procurement of equipment and for military construction for each

of the Guard and Reserve components. (d) DEFINITION.—For purposes of this section, the term ‘‘Guard

and Reserve components’’ means the following: (1) The Army Reserve.

(2) The Army National Guard of the United States.

(3) The Naval Reserve.

(4) The Marine Corps Reserve.

(5) The Air Force Reserve.

(6) The Air National Guard of the United States.

SEC. 1052. REPORT ON DESIRABILITY AND FEASIBILITY OF PROVIDING AUTHORITY FOR USE OF FUNDS DERIVED FROM

RECOVERED LOSSES RESULTING FROM CONTRACTOR

FRAUD.

(a) REPORT.—Not later than April 1, 1996, the Secretary of Defense shall submit to Congress a report on the desirability and

feasibility of authorizing by law the retention and use by the

Department of Defense of a specified portion (not to exceed three

percent) of amounts recovered by the Government during any fiscal

year from losses and expenses incurred by the Department of Defense as a result of contractor fraud at military installations. (b) MATTERS TO BE INCLUDED.—The report shall include the

views of the Secretary of Defense regarding— (1) the degree to which such authority would create enhanced incentives for the discovery, investigation, and resolution of contractor fraud at military installations; and (2) the appropriate allocation for funds that would be available for expenditure pursuant to such authority.

SEC. 1053. REPORT OF NATIONAL POLICY ON PROTECTING THE

NATIONAL INFORMATION INFRASTRUCTURE AGAINST

STRATEGIC ATTACKS.

Not later than 120 days after the date of the enactment of this Act, the President shall submit to Congress a report setting

forth the results of a review of the national policy on protecting

the national information infrastructure against strategic attacks.

The report shall include the following: (1) A description of the national policy and architecture

governing the plans for establishing procedures, capabilities,

systems, and processes necessary to perform indications, warning, and assessment functions regarding strategic attacks by

foreign nations, groups, or individuals, or any other entity

against the national information infrastructure.

(2) An assessment of the future of the National Communications System (NCS), which has performed the central role in

ensuring national security and emergency preparedness

President.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 441

communications for essential United States Government and

private sector users, including a discussion of—

(A) whether there is a Federal interest in expanding

or modernizing the National Communications System in

light of the changing strategic national security environment and the revolution in information technologies; and

(B) the best use of the National Communications System and the assets and experience it represents as an

integral part of a larger national strategy to protect the

United States against a strategic attack on the national

information infrastructure.

SEC. 1054. REPORT ON DEPARTMENT OF DEFENSE BOARDS AND

COMMISSIONS.

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

of the boards and commissions described in subsection (c). As part

of such study, the Secretary shall determine, with respect to each

such board or commission that received support from the Department of Defense during fiscal year 1995, whether that board or

commission merits continued support from the Department.

(b) REPORT.—Not later than April 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 results of the study. The report shall include

the following:

(1) A list of each board and commission described in subsection (c) that received support from the Department of

Defense during fiscal year 1995.

(2) With respect to the boards and commissions specified

on the list under paragraph (1)—

(A) a list of each such board or commission concerning

which the Secretary determined under subsection (a) that

continued support from the Department of Defense is merited; and

(B) a list of each such board or commission concerning

which the Secretary determined under subsection (a) that

continued support from the Department if not merited.

(3) For each board and commission specified on the list

under paragraph (2)(A), a description of—

(A) the purpose of the board or commission;

(B) the nature and cost of the support provided by

the Department to the board or commission during fiscal

year 1995;

(C) the nature and duration of the support that the

Secretary proposes to provide to the board or commission;

(D) the anticipated cost to the Department of providing

such support; and

(E) a justification of the determination that the board

or commission merits the continued support of the

Department.

(4) For each board and commission specified on the list

under paragraph (2)(B), a description of—

(A) the purpose of the board or commission;

(B) the nature and cost of the support provided by

the Department to the board or commission during fiscal

year 1995; and

110 STAT. 442 PUBLIC LAW 104–106—FEB. 10, 1996

(C) a justification of the determination that the board

or commission does not merit the continued support of

the Department.

(c) COVERED BOARDS AND COMMISSIONS.—Subsection (a) applies

to any board or commission (including any board or commission

authorized by law) that operates within or for the Department

of Defense and that—

(1) provides only policy-making assistance or advisory services for the Department; or

(2) carries out only activities that are not routine activities,

on-going activities, or activities necessary to the routine, ongoing operations of the Department.

(d) SUPPORT DEFINED.—For purposes of this section, the term

‘‘support’’ includes the provision of any of the following:

(1) Funds.

(2) Equipment, materiel, or other assets.

(3) Services of personnel.

SEC. 1055. DATE FOR SUBMISSION OF ANNUAL REPORT ON SPECIAL

ACCESS PROGRAMS.

Section 119(a) of title 10, United States Code, is amended

by striking out ‘‘February 1’’ and inserting in lieu thereof

‘‘March 1’’.

Subtitle F—Repeal of Certain Reporting

and Other Requirements and Authorities

SEC. 1061. 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 each

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 chapters 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).

10 USC 2891 et

seq.

10 USC 1801 et

seq.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 443

(e) OBSOLETE AUTHORITY FOR PAYMENT OF STIPENDS FOR MEM- BERS 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) 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)’’.

(i) REQUIREMENT OF NOTICE OF CERTAIN DISPOSALS AND GIFTS

BY SECRETARY OF NAVY.—Section 7545 of such title is amended—

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

(2) by redesignating subsection (d) as subsection (c).

(j) 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.

(k) REPORTS AND NOTIFICATIONS RELATING TO CHEMICAL AND

BIOLOGICAL AGENTS.—Subsection (a) of section 409 of Public Law

91–121 (50 U.S.C. 1511) is repealed.

(l) 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.

(m) 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).

(n) 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.

SEC. 1062. REPORTS REQUIRED BY TITLE 10, UNITED STATES CODE.

(a) ANNUAL REPORT ON RELOCATION ASSISTANCE PROGRAMS.—

Section 1056 of title 10, United States Code, is amended—

10 USC 113 note.

110 STAT. 444 PUBLIC LAW 104–106—FEB. 10, 1996

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

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

(b) NOTICE OF SALARY INCREASES FOR FOREIGN NATIONAL

EMPLOYEES.—Section 1584 of such title is amended—

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

(2) in subsection (a), by striking out ‘‘(a) WAIVER OF

EMPLOYMENT RESTRICTIONS FOR CERTAIN PERSONNEL.—’’.

(c) NOTICE REGARDING CONTRACTS PERFORMED FOR PERIODS

EXCEEDING 10 YEARS.—(1) Section 2352 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 section

2352.

(d) REPORT ON LOW-RATE PRODUCTION UNDER NAVAL VESSEL

AND MILITARY SATELLITE PROGRAMS.—Section 2400(c) of such title

is amended—

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

(2) in paragraph (1)—

(A) by striking out ‘‘(1)’’; and

(B) by redesignating clauses (A) and (B) as clauses

(1) and (2), respectively.

(e) REPORT ON WAIVERS OF PROHIBITION ON EMPLOYMENT OF

FELONS.—Section 2408(a)(3) of such title is amended by striking

out the second sentence.

(f) REPORT ON DETERMINATION NOT TO DEBAR FOR FRAUDULENT

USE OF LABELS.—Section 2410f(a) of such title is amended by

striking out the second sentence.

(g) NOTICE OF MILITARY CONSTRUCTION CONTRACTS ON GUAM.—

Section 2864(b) of such title is amended by striking out ‘‘after

the 21-day period’’ and all that follows through ‘‘determination’’.

SEC. 1063. REPORTS REQUIRED BY DEFENSE AUTHORIZATION AND

APPROPRIATIONS ACTS.

(a) PUBLIC LAW 99–661 REQUIREMENT FOR REPORT ON FUNDING

FOR NICARAGUAN DEMOCRATIC RESISTANCE.—Section 1351 of the

National Defense Authorization Act for Fiscal Year 1987 (Public

Law 99–661; 100 Stat. 3995; 10 U.S.C. 114 note) is amended—

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

(2) in subsection (a), by striking out ‘‘(a)

LIMITATION.—’’.

(b) ANNUAL REPORT ON OVERSEAS MILITARY FACILITY INVESTMENT RECOVERY ACCOUNT.—Section 2921 of the Military Construction Authorization Act for Fiscal Year 1991 (division B of Public

Law 101–510; 10 U.S.C. 2687 note) is amended—

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

(2) by redesignating subsections (g) and (h) as subsections

(f) and (g), respectively.

(c) SCIENCE, MATHEMATICS, AND ENGINEERING EDUCATION MASTER PLAN.—Section 829 of the National Defense Authorization Act

for Fiscal Years 1992 and 1993 (Public Law 102–190; 105 Stat.

1444; 10 U.S.C. 2192 note) is repealed.

(d) REPORT REGARDING HEATING FACILITY MODERNIZATION AT

KAISERSLAUTERN.—Section 8008 of the Department of Defense

Appropriations Act, 1994 (Public Law 103–139; 107 Stat. 1438),

is amended by inserting ‘‘but without regard to the notification

requirement in subsection (b)(2) of such section,’’ after ‘‘section

2690 of title 10, United States Code,’’.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 445

SEC. 1064. REPORTS REQUIRED BY OTHER PROVISIONS OF LAW.

(a) REQUIREMENT UNDER ARMS EXPORT CONTROL ACT FOR

QUARTERLY REPORT ON PRICE AND AVAILABILITY ESTIMATES.—Section 28 of the Arms Export Control Act (22 U.S.C. 2768) is repealed.

(b) ANNUAL REPORT ON NATIONAL SECURITY AGENCY EXECUTIVE

PERSONNEL.—Section 12(a) of the National Security Agency Act

of 1959 (50 U.S.C. 402 note) is amended by striking out

paragraph (5).

(c) REPORTS CONCERNING CERTAIN FEDERAL CONTRACTING AND

FINANCIAL TRANSACTIONS.—Section 1352 of title 31, United States

Code, is amended—

(1) in subsection (b)(6)(A), by inserting ‘‘(other than the

Secretary of Defense and Secretary of a military department)’’

after ‘‘The head of each agency’’; and

(2) in subsection (d)(1), by inserting ‘‘(other than in the

case of the Department of Defense or a military department)’’

after ‘‘paragraph (3) of this subsection’’.

(d) ANNUAL REPORT ON WATER RESOURCES PROJECT AGREEMENTS.—Section 221 of the Flood Control Act of 1970 (42 U.S.C.

1962d–5b) is amended—

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

(2) by redesignating subsection (f) as subsection (e).

(e) ANNUAL REPORT ON CONSTRUCTION OF TENNESSEETOMBIGBEE WATERWAY.—Section 185 of the Water Resources Development Act of 1976 (33 U.S.C. 544c) is amended by striking out

the second sentence.

(f) ANNUAL REPORT ON MONITORING OF NAVY HOME PORT

WATERS.—Section 7 of the Organotin Antifouling Paint Control

Act of 1988 (33 U.S.C. 2406) is amended—

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

(2) by redesignating subsections (e) and (f) as subsections

(d) and (e), respectively.

Subtitle G—Department of Defense

Education Programs

SEC. 1071. CONTINUATION OF UNIFORMED SERVICES UNIVERSITY OF

THE HEALTH SCIENCES.

(a) POLICY.—Congress reaffirms—

(1) the prohibition set forth in subsection (a) of section

922 of the National Defense Authorization Act for Fiscal Year

1995 (Public Law 103–337; 108 Stat. 2829; 10 U.S.C. 2112

note) regarding closure of the Uniformed Services University

of the Health Sciences; and

(2) the expression of the sense of Congress set forth in

subsection (b) of such section regarding the budgetary commitment to continuation of the University.

(b) PERSONNEL STRENGTH.—During the five-year period beginning on October 1, 1995, the personnel staffing levels for the Uniformed Services University of the Health Sciences may not be

reduced below the personnel staffing levels for the University as

of October 1, 1993.

(c) 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

10 USC 2112

note.

110 STAT. 446 PUBLIC LAW 104–106—FEB. 10, 1996

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. 1072. ADDITIONAL GRADUATE SCHOOLS AND PROGRAMS AT UNIFORMED SERVICES UNIVERSITY OF THE HEALTH

SCIENCES.

(a) ADDITIONAL SCHOOLS AND PROGRAMS.—Subsection (h) of

section 2113 of title 10, United States Code, is amended to read

as follows:

‘‘(h) The Secretary of Defense may establish the following educational programs at the University: ‘‘(1) Postdoctoral, postgraduate, and technological

institutes.

‘‘(2) A graduate school of nursing.

‘‘(3) Other schools or programs that the Secretary determines necessary in order to operate the University in a costeffective manner.’’.

(b) CONFORMING AMENDMENTS TO REFLECT ADVISORY NATURE

OF BOARD OF REGENTS.—(1) Section 2112(b) of such title is amended

by striking out ‘‘, upon recommendation of the Board of Regents,’’.

(2) Section 2113 of such title is amended—

(A) in subsection (a)—

(i) by striking out ‘‘a Board of Regents (hereinafter

in this chapter referred to as the ‘Board’)’’ in the first

sentence and inserting in lieu thereof ‘‘the Secretary of

Defense’’; and

(ii) by inserting after the first sentence the following

new sentence: ‘‘To assist the Secretary in an advisory capacity, there is a Board of Regents for the University.’’;

(B) in subsection (d), by striking out ‘‘Board’’ the first

place it appears and inserting in lieu thereof ‘‘Secretary’’;

(C) in subsection (e), by striking out ‘‘of Defense’’;

(D) in subsection (f)(1), by striking out ‘‘of Defense’’;

(E) in subsection (g)—

(i) by striking out ‘‘Board is authorized to’’ in the

first sentence and inserting in lieu thereof ‘‘Secretary may’’;

(ii) by striking out ‘‘Board is also authorized to’’ in

the third sentence and inserting in lieu thereof ‘‘Secretary

may’’; and

(iii) by striking out ‘‘Board may also, subject to the

approval of the Secretary of Defense,’’ in the fifth sentence

and inserting in lieu thereof ‘‘Secretary may’’; and

(F) by striking out ‘‘Board’’ each place it appears in subsections (f), (i), and (j) and inserting in lieu thereof ‘‘Secretary’’.

(3) Section 2114(e)(1) of such title is amended by striking out

‘‘Board, upon approval of the Secretary of Defense,’’ and inserting

in lieu thereof ‘‘Secretary of Defense’’.

(c) CLERICAL AMENDMENTS.—(1) The heading of section 2113

of such title is amended to read as follows:

‘‘§ 2113. Administration of University’’.

(2) The item relating to such section in the table of sections

at the beginning of chapter 104 of such title is amended to read

as follows:

‘‘2113. Administration of University.’’.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 447

SEC. 1073. FUNDING FOR ADULT EDUCATION PROGRAMS FOR MILITARY PERSONNEL AND DEPENDENTS OUTSIDE THE

UNITED STATES.

Of amounts appropriated pursuant to section 301, $600,000

shall be available to carry out adult education programs, consistent

with the Adult Education Act (20 U.S.C. 1201 et seq.), for the

following:

(1) Members of the Armed Forces who are serving in

locations—

(A) that are outside the United States; and

(B) for which amounts are not required to be allotted

under section 313(b) of such Act (20 U.S.C. 1201b(b)).

(2) The dependents of such members.

SEC. 1074. 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 FOR

FISCAL YEAR 1996.—(1) Of the amounts authorized to be appropriated in section 301(5)—

(A) $30,000,000 shall be available for providing educational

agencies assistance (as defined in paragraph (4)(A)) to local

educational agencies; and

(B) $5,000,000 shall be available for making educational

agencies payments (as defined in paragraph (4)(B)) to local

educational agencies.

(2) Not later than June 30, 1996, the Secretary of Defense

shall—

(A) 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

(B) 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.

(3) The Secretary of Defense shall disburse funds made available under subparagraphs (A) and (B) of paragraph (1) not later

than 30 days after the date on which notification to the eligible

local educational agencies is provided pursuant to paragraph (2).

(4) In this section:

(A) 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).

(B) The term ‘‘educational agencies payments’’ means payments authorized under subsection (d) of that section, as

amended by subsection (d).

(b) SPECIAL RULE FOR 1994 PAYMENTS.—The Secretary of Education shall not consider any payment to a local educational agency

by the Department of Defense, that is available to such agency

for current expenditures and used for capital expenses, as funds

available to such agency for purposes of making a determination

for fiscal year 1994 under section 3(d)(2)(B)(i) of the Act of September 30, 1950 (Public Law 874, 81st Congress) (as such Act was

in effect on September 30, 1994).

Notification.

110 STAT. 448 PUBLIC LAW 104–106—FEB. 10, 1996

(c) REDUCTION IN IMPACT THRESHOLD.—Subsection (c)(1) of section 386 of the National Defense Authorization Act for Fiscal Year

1993 (Public Law 102–484; 20 U.S.C. 238 note) is amended—

(1) by striking out ‘‘30 percent’’ and inserting in lieu thereof

‘‘20 percent’’; and

(2) by striking out ‘‘counted under subsection (a) or (b)

of section 3 of the Act of September 30, 1950 (Public Law

874, Eighty-first Congress; 20 U.S.C. 238)’’ and inserting in

lieu thereof ‘‘counted under section 8003(a) of the Elementary

and Secondary Education Act of 1965 (20 U.S.C. 7703(a))’’.

(d) ADJUSTMENTS RELATED TO BASE CLOSURES AND

REALIGNMENTS.—Subsection (d) of section 386 of the National

Defense Authorization Act for Fiscal Year 1993 (Public Law 102–

484; 28 U.S.C. 238 note) is amended to read as follows:

‘‘(d) ADJUSTMENTS RELATED TO BASE CLOSURES AND

REALIGNMENTS.—To assist communities in making adjustments

resulting from reductions in the size of the Armed Forces, the

Secretary of Defense shall, in consultation with the Secretary of

Education, make payments to local educational agencies that, during the period between the end of the school year preceding the

fiscal year for which the payments are authorized and the beginning

of the school year immediately preceding that school year, had

an overall reduction of not less than 20 percent in the number

of military dependent students as a result of the closure or realignment of military installations.’’.

(e) 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’’.

(f) PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.—Subsection (f) of section 8003 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703) is amended—

(1) in paragraph (2)—

(A) in the matter preceding clause (i) of subparagraph

(A), by striking ‘‘only if such agency’’ and inserting ‘‘if

such agency is eligible for a supplementary payment in

accordance with subparagraph (B) or such agency’’; and

(B) by adding at the end the following new

subparagraph:

‘‘(D) A local educational agency shall only be eligible

to receive additional assistance under this subsection if

the Secretary determines that—

‘‘(i) such agency is exercising due diligence in

availing itself of State and other financial assistance;

and

‘‘(ii) the eligibility of such agency under State law

for State aid with respect to the free public education

of children described in subsection (a)(1) and the

amount of such aid are determined on a basis no

less favorable to such agency than the basis used in

determining the eligibility of local educational agencies

for State aid, and the amount of such aid, with respect

to the free public education of other children in the

State.’’; and

(2) in paragraph (3)—

(A) in subparagraph (A)—

20 USC 7703

note.

20 USC 7703

note.

20 USC 7703

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 449

(i) in the matter preceding clause (i), by inserting ‘‘(other than any amount received under paragraph

(2)(B))’’ after ‘‘subsection’’;

(ii) in subclause (I) of clause (i), by striking ‘‘or

the average per-pupil expenditure of all the States’’;

(iii) by amending clause (ii) to read as follows:

‘‘(ii) The Secretary shall next multiply the amount

determined under clause (i) by the total number of

students in average daily attendance at the schools

of the local educational agency.’’; and

(iv) by amending clause (iii) to read as follows:

‘‘(iii) The Secretary shall next subtract from the

amount determined under clause (ii) all funds available

to the local educational agency for current expenditures, but shall not so subtract funds provided—

‘‘(I) under this Act; or

‘‘(II) by any department or agency of the Federal Government (other than the Department) that

are used for capital expenses.’’; and

(B) by amending subparagraph (B) to read as follows:

‘‘(B) SPECIAL RULE.—With respect to payments under

this subsection for a fiscal year for a local educational

agency described in clause (ii) or (iii) of paragraph (2)(A),

the maximum amount of payments under this subsection

shall be equal to—

‘‘(i) the product of—

‘‘(I) the average per-pupil expenditure in all

States multiplied by 0.7, except that such amount

may not exceed 125 percent of the average perpupil expenditure in all local educational agencies

in the State; multiplied by

‘‘(II) the number of students described in

subparagraph (A) or (B) of subsection (a)(1) for

such agency; minus

‘‘(ii) the amount of payments such agency receives

under subsections (b) and (d) for such year.’’.

(g) CURRENT YEAR DATA.—Paragraph (4) of section 8003(f) of

such Act (20 U.S.C. 7703(f)) is amended to read as follows:

‘‘(4) CURRENT YEAR DATA.—For purposes of providing assistance under this subsection the Secretary—

‘‘(A) shall use student and revenue data from the fiscal

year for which the local educational agency is applying

for assistance under this subsection; and

‘‘(B) shall derive the per pupil expenditure amount

for such year for the local educational agency’s comparable

school districts by increasing or decreasing the per pupil

expenditure data for the second fiscal year preceding the

fiscal year for which the determination is made by the

same percentage increase or decrease reflected between

the per pupil expenditure data for the fourth fiscal year

preceding the fiscal year for which the determination is

made and the per pupil expenditure data for such second

year.’’.

(h) 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—

20 USC 7703

note.

110 STAT. 450 PUBLIC LAW 104–106—FEB. 10, 1996

(1) in subsection (e)(2)—

(A) in subparagraph (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.),’’; and

(B) in subparagraph (D)(iii), by striking out ‘‘under

subsections (a) and (b) of section 3 of such Act (20 U.S.C.

238)’’; and

(2) in subsection (h)—

(A) in paragraph (1), by striking out ‘‘section 14101

of the Elementary and Secondary Education Act of 1965’’

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’ means each of the 50 States and

the District of Columbia.’’.

SEC. 1075. SHARING OF PERSONNEL OF DEPARTMENT OF DEFENSE

DOMESTIC DEPENDENT SCHOOLS AND DEFENSE DEPENDENTS’ EDUCATION SYSTEM.

Section 2164(e) of title 10, United States Code, is amended

by adding at the end the following:

‘‘(4)(A) The Secretary may, without regard to the provisions

of any law relating to the number, classification, or compensation

of employees—

‘‘(i) transfer employees from schools established under this

section to schools in the defense dependents’ education system

in order to provide the services referred to in subparagraph

(B) to such system; and

‘‘(ii) transfer employees from such system to schools established under this section in order to provide such services

to those schools.

‘‘(B) The services referred to in subparagraph (A) are the

following:

‘‘(i) Administrative services.

‘‘(ii) Logistical services.

‘‘(iii) Personnel services.

‘‘(iv) Such other services as the Secretary considers

appropriate.

‘‘(C) Transfers under this paragraph shall extend for such periods as the Secretary considers appropriate. The Secretary shall

provide appropriate compensation for employees so transferred.

‘‘(D) The Secretary may provide that the transfer of an employee

under this paragraph occur without reimbursement of the school

or system concerned.

‘‘(E) In this paragraph, the term ‘defense dependents’ education

system’ means the program established and operated under section

1402(a) of the Defense Dependents’ Education Act of 1978 (20

U.S.C. 921(a)).’’.

SEC. 1076. INCREASE IN RESERVE COMPONENT MONTGOMERY GI

BILL 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:

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 451

‘‘(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) In the case of a person who has a skill or specialty des- ignated 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, who

is eligible for educational benefits under chapter 30 (other than

section 3012) of title 38 and who meets the eligibility criteria

specified in subparagraphs (A) and (B) of section 16132(a)(1) of

this title, 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 section 3015 of title

38 as the Secretary of Defense considers appropriate, but the

amount of any such increase may not exceed $350 per month.

‘‘(3) The authority provided by paragraphs (1) and (2) shall

be exercised by the Secretaries concerned under regulations prescribed by the Secretary of Defense.’’.

SEC. 1077. DATE FOR ANNUAL REPORT ON RESERVE COMPONENT

MONTGOMERY GI BILL EDUCATIONAL ASSISTANCE

PROGRAM.

Section 16137 of title 10, United States Code, is amended

by striking out ‘‘December 15 of each year’’ and inserting in lieu

thereof ‘‘March 1 of each year’’.

SEC. 1078. SCOPE OF EDUCATION PROGRAMS OF COMMUNITY COLLEGE OF THE AIR FORCE.

(a) LIMITATION TO MEMBERS OF THE AIR FORCE.—Section

9315(a)(1) of title 10, United States Code, is amended by striking

out ‘‘for enlisted members of the armed forces’’ and inserting in

lieu thereof ‘‘for enlisted members of the Air Force’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply with respect to enrollments in the Community College

of the Air Force after March 31, 1996.

SEC. 1079. 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—

10 USC 9315

note.

Regulations.

110 STAT. 452 PUBLIC LAW 104–106—FEB. 10, 1996

(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’’.

Subtitle H—Other Matters

SEC. 1081. NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE,

DEFENSE REINVESTMENT, AND DEFENSE CONVERSION

PROGRAMS.

(a) NATIONAL SECURITY OBJECTIVES FOR NATIONAL TECHNOLOGY AND INDUSTRIAL BASE.—(1) Section 2501 of title 10, United

States Code, is amended—

(A) in subsection (a)—

(i) by striking out ‘‘DEFENSE POLICY’’ in the subsection

heading and inserting in lieu thereof ‘‘NATIONAL SECURITY’’;

and

(ii) by striking out paragraph (5);

(B) by striking out subsection (b); and

(C) by redesignating subsection (c) as subsection (b).

(2) The heading of such section is amended to read as follows:

‘‘§ 2501. National security objectives concerning national

technology and industrial base’’.

(b) NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE

COUNCIL.—Section 2502(c) of such title is amended—

(1) in paragraph (1), by striking out subparagraph (B)

and inserting in lieu thereof the following new subparagraph:

‘‘(B) programs for achieving such national security

objectives; and’’;

(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.—Section 2511 of such title is

amended to read as follows:

‘‘§ 2511. Defense dual-use critical technology program

‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary of Defense

shall conduct a program to further the national security objectives

set forth in section 2501(a) of this title by encouraging and providing

for research, development, and application of dual-use critical techVerDate 07-FEB-96 03:34 Mar 05, 1996 Jkt 029139 PO 00106 Frm 00268 Fmt 6580 Sfmt 6581 PUBL106.104 apps06
PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 453

nologies. The Secretary may make grants, enter into contracts,

or enter into cooperative agreements and other transactions pursuant to section 2371 of this title in furtherance of the program.

The Secretary shall identify projects to be conducted as part of

the program.

‘‘(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 shall 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.

‘‘(c) FINANCIAL COMMITMENT OF NON-FEDERAL GOVERNMENT

PARTICIPANTS.—(1) The total amount of funds provided by the Federal Government for a project conducted under the program may

not exceed 50 percent of the total cost of the project. However,

the Secretary of Defense may agree to a project in which the

total amount of funds provided by the Federal Government exceeds

50 percent if the Secretary determines the project is particularly

meritorious, but the project would not otherwise have sufficient

non-Federal funding or in-kind contributions.

‘‘(2) The Secretary may prescribe regulations to provide for

consideration of in-kind contributions by non-Federal Government

participants in a project conducted under the program for the

purpose of calculating the share of the project costs that has been

or is being undertaken by such participants. In such regulations,

the Secretary may authorize a participant that is a small business

concern to use funds received under the Small Business Innovation

Research Program or the Small Business Technology Transfer Program to help pay the costs of project activities. Any such funds

so used may be considered in calculating the amount of the financial

commitment undertaken by the non-Federal Government participants unless the Secretary determines that the small business

concern has not made a significant equity percentage contribution

in the project from non-Federal sources.

‘‘(3) The Secretary shall consider a project proposal submitted

by a small business concern without regard to the ability of the

small business concern to immediately meet its share of the anticipated project costs. Upon the selection of a project proposal submitted by a small business concern, the small business concern shall

have a period of not less than 120 days in which to arrange

to meet its financial commitment requirements under the project

from sources other than a person of a foreign country. If the Secretary determines upon the expiration of that period that the small

business concern will be unable to meet its share of the anticipated

project costs, the Secretary shall revoke the selection of the project

proposal submitted by the small business concern.

‘‘(d) SELECTION PROCESS.—Competitive procedures shall be used

in the conduct of the program.

‘‘(e) SELECTION CRITERIA.—The criteria for the selection of

projects under the program shall include the following:

‘‘(1) The extent to which the proposed project advances

and enhances the national security objectives set forth in section 2501(a) of this title.

‘‘(2) The technical excellence of the proposed project.

110 STAT. 454 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(3) The qualifications of the personnel proposed to participate in the research activities of the proposed project. ‘‘(4) An assessment of timely private sector investment

in activities to achieve the goals and objectives of the proposed

project other than through the project.

‘‘(5) The potential effectiveness of the project in the further

development and application of each technology proposed to

be developed by the project for the national technology and

industrial base.

‘‘(6) The extent of the financial commitment of eligible

firms to the proposed project.

‘‘(7) The extent to which the project does not unnecessarily

duplicate projects undertaken by other agencies.

‘‘(f) REGULATIONS.—The Secretary of Defense shall prescribe

regulations for the purposes of this section.’’.

(d) 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’’; and

(2) in subsection (f), by striking out ‘‘section 2511(f)’’ and

inserting in lieu thereof ‘‘section 2511(e)’’.

(e) MANUFACTURING SCIENCE AND TECHNOLOGY PROGRAM.—

Subsection (b) of section 2525 of such title is amended to read

as follows:

‘‘(b) PURPOSE OF PROGRAM.—The Secretary of Defense shall

use the program—

‘‘(1) to provide centralized guidance and direction (including

goals, milestones, and priorities) to the military departments

and the Defense Agencies on all matters relating to manufacturing technology;

‘‘(2) to direct the development and implementation of

Department of Defense plans, programs, projects, activities,

and policies that promote the development and application

of advanced technologies to manufacturing processes, tools, and

equipment;

‘‘(3) to improve the manufacturing quality, productivity,

technology, and practices of businesses and workers providing

goods and services to the Department of Defense;

‘‘(4) to promote dual-use manufacturing processes;

‘‘(5) to disseminate information concerning improved manufacturing improvement concepts, including information on such

matters as best manufacturing practices, product data exchange

specifications, computer-aided acquisition and logistics support,

and rapid acquisition of manufactured parts;

‘‘(6) to sustain and enhance the skills and capabilities of

the manufacturing work force;

‘‘(7) to promote high-performance work systems (with development and dissemination of production technologies that build

upon the skills and capabilities of the work force), high levels

of worker education and training; and

‘‘(8) to ensure appropriate coordination between the manufacturing technology programs and industrial preparedness programs of the Department of Defense and similar programs

undertaken by other departments and agencies of the Federal

Government or by the private sector.’’.

(f) REPEAL OF VARIOUS ASSISTANCE PROGRAMS.—Sections 2512,

2513, 2520, 2521, 2522, 2523, and 2524 of such title are repealed.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 455

(g) REPEAL OF MILITARY-CIVILIAN INTEGRATION AND TECH- NOLOGY TRANSFER ADVISORY BOARD.—Section 2516 of such title

is repealed. (h) REPEAL OF OBSOLETE DEFINITIONS.—Section 2491 of such

title is amended—

(1) by striking out paragraphs (11) and (12); and

(2) by redesignating paragraphs (13), (14), (15), and (16) as paragraphs (11), (12), (13), and (14), respectively.

(i) CLERICAL AMENDMENTS.—(1) The table of sections at the

beginning of subchapter II of chapter 148 of such title is amended

by striking out the item relating to section 2501 and inserting

in lieu thereof the following new item:

‘‘2501. National security objectives concerning national technology and industrial

base.’’.

(2) The table of sections at the beginning of subchapter III of such chapter 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, 2516, 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. 1082. AMMUNITION INDUSTRIAL BASE.

(a) REVIEW OF AMMUNITION PROCUREMENT PROGRAMS.—The

Secretary of Defense shall carry out a review of the programs

of the Department of Defense for the procurement of ammunition.

The review shall include the Department of Defense management

of ammunition procurement programs, including the procedures

of the Department for the planning for, budgeting for, administration, and carrying out of such programs. The Secretary shall begin

the review not later than 30 days after the date of the enactment

of this Act.

(b) MATTERS TO BE REVIEWED.—The review under subsection

(a) shall include an assessment of the following:

(1) The practicability and desirability of (A) continuing

to use centralized procurement practices (through a single

executive agent) for the procurement of ammunition required

by the Armed Forces, and (B) using such centralized procurement practices for the procurement of all such ammunition.

(2) The capability of the ammunition production facilities

of the Government to meet the requirements of the Armed

Forces for procurement of ammunition.

(3) The practicability and desirability of converting those

ammunition production facilities to ownership or operation by

private sector entities.

(4) The practicability and desirability of integrating the

budget planning for the procurement of ammunition among

the Armed Forces.

(5) The practicability and desirability of establishing an

advocate within the Department of Defense for matters relating

to the ammunition industrial base, with such an advocate to

be responsible for—

(A) establishing the quantity and price of ammunition

procured by the Armed Forces; and

110 STAT. 456 PUBLIC LAW 104–106—FEB. 10, 1996

(B) establishing and implementing policy to ensure

the continuing capability of the ammunition industrial base

in the United States to meet the requirements of the Armed

Forces.

(6) The practicability and desirability of providing information on the ammunition procurement practices of the Armed

Forces to Congress through a single source.

(c) REPORT.—Not later than April 1, 1996, the Secretary shall

submit to the congressional defense committees a report on the

review carried out under subsection (a). The report shall include

the following:

(1) The results of the review.

(2) A discussion of the methodologies used in carrying

out the review.

(3) An assessment of various methods of ensuring the

continuing capability of the ammunition industrial base of the

United States to meet the requirements of the Armed Forces.

(4) Recommendations of means (including legislation) of

implementing those methods in order to ensure such continuing

capability.

SEC. 1083. POLICY CONCERNING EXCESS DEFENSE INDUSTRIAL

CAPACITY.

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. 1084. SENSE OF CONGRESS CONCERNING ACCESS TO SECONDARY SCHOOL STUDENT INFORMATION FOR RECRUITING

PURPOSES.

(a) SENSE OF CONGRESS.—It is the sense of Congress that—

(1) the States (with respect to public schools) and entities

operating private secondary schools should not have a policy

of denying, or otherwise effectively preventing, the Secretary

of Defense from obtaining for military recruiting purposes—

(A) entry to any secondary school or access to students

at any secondary school equal to that of other employers;

or

(B) access to directory information pertaining to students at secondary schools equal to that of other employers

(other than in a case in which an objection has been raised

as described in paragraph (2)); and

(2) any State, and any entity operating a private secondary

school, that releases directory information secondary school

students should—

(A) give public notice of the categories of such information to be released; and

(B) allow a reasonable period after such notice has

been given for a student or (in the case of an individual

younger than 18 years of age) a parent to inform the

school that any or all of such information should not be

released without obtaining prior consent from the student

or the parent, as the case may be.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 457

(b) REPORT ON DOD PROCEDURES.—Not later than March 1,

1996, the Secretary of Defense shall submit to Congress a report

on Department of Defense procedures for determining if and when

a State or an entity operating a private secondary school has

denied or prevented access to students or information as described

in subsection (a)(1).

(c) DEFINITIONS.—For purposes of this section: (1) The term ‘‘directory information’’ means, with respect to a student, the student’s name, address, telephone listing,

date and place of birth, level of education, degrees received,

and (if available) the most recent previous educational program

enrolled in by the student. (2) The term ‘‘student’’ means an individual enrolled in

any program of education who is 17 years of age or older.

SEC. 1085. DISCLOSURE OF INFORMATION CONCERNING UNACCOUNTED FOR UNITED STATES PERSONNEL FROM THE

KOREAN CONFLICT, THE VIETNAM ERA, AND THE COLD

WAR.

Section 1082 of the National Defense Authorization Act for

Fiscal Years 1992 and 1993 (Public Law 102–190; 50 U.S.C. 401

note) is amended—

(1) in subsection (b)(3)(A), by striking out ‘‘cannot be located after a reasonable effort.’’ and inserting in lieu thereof ‘‘cannot

be located by the Secretary of Defense— ‘‘(i) in the case of a person missing from the Vietnam era, after a reasonable effort; and

‘‘(ii) in the case of a person missing from the Korean Conflict or Cold War, after a period of 90 days from the

date on which any record or other information referred

to in paragraph (2) is received by the Department of

Defense for disclosure review from the Archivist of the

United States, the Library of Congress, or the Joint United

States-Russian Commission on POW/MIAs.’’; and

(2) in subsection (c)(1), by striking out ‘‘not later than September 30, 1995’’ and inserting in lieu thereof ‘‘not later

than January 2, 1996’’.

SEC. 1086. OPERATIONAL SUPPORT AIRLIFT AIRCRAFT FLEET.

(a) SUBMITTAL OF JCS REPORT ON AIRCRAFT.—Not later than

February 1, 1996, the Secretary of Defense shall submit to Congress

the report that, as of the date of the enactment of this Act, is

in preparation by the Chairman of the Joint Chiefs of Staff on

operational support airlift aircraft. (b) CONTENT OF REPORT.—(1) The report referred to in sub- section (a) shall contain findings and recommendations on the

following:(A) Requirements for the modernization and safety of the operational support airlift aircraft fleet.

(B) The disposition of aircraft that would be excess to

that fleet upon fulfillment of the requirements referred to in

subparagraph (A). (C) Plans and requirements for the standardization of the

fleet, including plans and requirements for the provision of

a single manager for all logistical support and operational

requirements.

(D) Central scheduling of all operational support airlift

aircraft.

50 USC 435 note.

110 STAT. 458 PUBLIC LAW 104–106—FEB. 10, 1996

(E) Needs of the Department for helicopter support in

the National Capital Region, including the acceptable uses of

that support.

(2) In preparing the report, the Chairman of the Joint Chiefs

of Staff shall take into account the recommendation of the Commission on Roles and Missions of the Armed Forces to reduce the

size of the operational support airlift aircraft fleet.

(c) REGULATIONS.—(1) Upon completion of the report referred

to in subsection (a), the Secretary shall prescribe regulations,

consistent with the findings and recommendations set forth in the

report, for the operation, maintenance, disposition, and use of operational support airlift aircraft.

(2) The regulations shall, to the maximum extent practicable,

provide for, and encourage the use of, commercial airlines in lieu

of the use of such aircraft.

(3) The regulations shall apply uniformly throughout the

Department.

(4) The regulations shall not require exclusive use of such

aircraft for any particular class of government personnel.

(d) REDUCTIONS IN FLYING HOURS.—(1) The Secretary shall

ensure that the number of hours flown during fiscal year 1996

by operational support airlift aircraft does not exceed the number

equal to 85 percent of the number of hours flown during fiscal

year 1995 by operational support airlift aircraft.

(2) The Secretary should ensure that the number of hours

flown in the National Capital Region during fiscal year 1996 by

helicopters of the operational support airlift aircraft fleet does not

exceed the number equal to 85 percent of the number of hours

flown in the National Capital Region during fiscal year 1995 by

helicopters of the operational support airlift aircraft fleet.

(e) RESTRICTION ON AVAILABILITY OF FUNDS.—Of the funds

appropriated pursuant to section 301 for the operation and use

of operational support airlift aircraft, not more than 50 percent

is available for obligation until the Secretary submits to Congress

the report referred to in subsection (a).

(f) DEFINITIONS.—In this section:

(1) The term ‘‘operational support airlift aircraft’’ means

aircraft of the Department of Defense designated within the

Department as operational support airlift aircraft.

(2) The term ‘‘National Capital Region’’ has the meaning

given such term in section 2674(f)(2) of title 10, United States

Code.

SEC. 1087. CIVIL RESERVE AIR FLEET.

Section 9512 of title 10, United States Code, is amended by

striking out ‘‘full Civil Reserve Air Fleet’’ in subsections (b)(2)

and (e) and inserting in lieu thereof ‘‘Civil Reserve Air Fleet’’.

SEC. 1088. DAMAGE OR LOSS TO PERSONAL PROPERTY DUE TO EMERGENCY EVACUATION OR EXTRAORDINARY CIRCUMSTANCES.

(a) SETTLEMENT OF CLAIMS OF PERSONNEL.—Section 3721(b)(1)

of title 31, United States Code, is amended by inserting after

the first sentence the following: ‘‘If, however, the claim arose from

an emergency evacuation or from extraordinary circumstances, the

amount settled and paid under the authority of the preceding

sentence may exceed $40,000, but may not exceed $100,000.’’.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 459

(b) APPLICABILITY.—The amendment made by subsection (a) shall apply to claims arising before, on, or after the date of the

enactment of this Act.

(c) REPRESENTMENTS OF PREVIOUSLY PRESENTED CLAIMS.—(1)

A claim under subsection (b) of section 3721 of title 31, United

States Code, that was settled under such section before the date

of the enactment of this Act may be represented under such section,

as amended by subsection (a), to the head of the agency concerned

to recover the amount equal to the difference between the actual

amount of the damage or loss and the amount settled and paid

under the authority of such section before the date of the enactment

of this Act, except that— (A) the claim shall be represented in writing within two years after the date of the enactment of this Act; (B) a determination of the actual amount of the damage or loss shall have been made by the head of the agency concerned pursuant to settlement of the claim under the authority

of such section before the date of the enactment of this Act;

(C) the claimant shall have proof of the determination referred to in subparagraph (B); and (D) the total of all amounts paid in settlement of the

claim under the authority of such section may not exceed

$100,000.

(2) Subsection (k) of such section shall not apply to bar representment of a claim described in paragraph (1), but shall

apply to such a claim that is represented and settled under that

section after the date of the enactment of this Act.

SEC. 1089. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION

ACTIONS AGAINST DECEASED MEMBERS.

Section 3711 of title 31, United States Code, is amended by adding at the end the following: ‘‘(g)(1) The Secretary of Defense may suspend or terminate an action by the Secretary or by the Secretary of a military department under subsection (a) to collect a claim against the estate

of a person who died while serving on active duty as a member

of the Army, Navy, Air Force, or Marine Corps if the Secretary

determines that, under the circumstances applicable with respect

to the deceased person, it is appropriate to do so. ‘‘(2) In this subsection, the term ‘active duty’ has the meaning given that term in section 101 of title 10.’’.

SEC. 1090. CHECK CASHING AND EXCHANGE TRANSACTIONS FOR

DEPENDENTS OF UNITED STATES GOVERNMENT PERSONNEL.

(a) AUTHORITY TO CARRY OUT TRANSACTIONS.—Subsection (b)

of section 3342 of title 31, United States Code, is amended—

(1) by redesignating paragraphs (3), (4), and (5) as para- graphs (4), (5), and (6), respectively; and (2) by inserting after paragraph (2) the following new

paragraph: ‘‘(3) a dependent of personnel of the Government, but only— ‘‘(A) at a United States installation at which adequate

banking facilities are not available; and ‘‘(B) in the case of negotiation of negotiable

instruments, if the dependent’s sponsor authorizes, in writing, the presentation of negotiable instruments to the

disbursing official for negotiation.’’.

31 USC 3721

note.

31 USC 3721

note.

110 STAT. 460 PUBLIC LAW 104–106—FEB. 10, 1996

(b) PAY OFFSET.—Subsection (c) of such section is amended—

(1) by redesignating paragraph (3) as paragraph (4); and

(2) by inserting after paragraph (2) the following new para- graph (3):

‘‘(3) The amount of any deficiency resulting from cashing a check for a dependent under subsection (b)(3), including any charges

assessed against the disbursing official by a financial institution

for insufficient funds to pay the check, may be offset from the

pay of the dependent’s sponsor.’’. (c) DEFINITIONS.—Such section is further amended by adding at the end the following: ‘‘(e) Regulations prescribed under subsection (d) shall include regulations that define the terms ‘dependent’ and ‘sponsor’ for the

purposes of this section. In the regulations, the term ‘dependent’,

with respect to a member of a uniformed service, shall have the

meaning given that term in section 401 of title 37.’’.

SEC. 1091. DESIGNATION OF NATIONAL MARITIME CENTER.

(a) DESIGNATION OF NATIONAL MARITIME CENTER.—The

NAUTICUS building, located at one Waterside Drive, Norfolk, Virginia, shall be known and designated as the ‘‘National Maritime

Center’’.

(b) REFERENCE TO NATIONAL MARITIME CENTER.—Any reference in a law, map, regulation, document, paper, or other record of

the United States to the building referred to in subsection (a)

shall be deemed to be a reference to the ‘‘National Maritime Center’’.

SEC. 1092. SENSE OF CONGRESS REGARDING HISTORIC PRESERVATION OF MIDWAY ISLANDS.

(a) FINDINGS.—Congress makes the following findings: (1) September 2, 1995, marks the 50th anniversary of the United States victory over Japan in World War II. (2) The Battle of Midway proved to be the turning point in the war in the Pacific, as United States Navy forces inflicted

such severe losses on the Imperial Japanese Navy during the

battle that the Imperial Japanese Navy never again took the

offensive against United States or allied forces. (3) During the Battle of Midway, an outnumbered force of the United States Navy, consisting of 29 ships and other

units of the Armed Forces under the command of Admiral

Nimitz and Admiral Spruance, out-maneuvered and out-fought

350 ships of the Imperial Japanese Navy. (4) It is in the public interest to erect a memorial to

the Battle of Midway that is suitable to express the enduring

gratitude of the American people for victory in the battle and

to inspire future generations of Americans with the heroism

and sacrifice of the members of the Armed Forces who achieved

that victory.

(b) SENSE OF CONGRESS.—It is the sense of Congress that— (1) the Midway Islands and the surrounding seas deserve

to be memorialized;

(2) the historic structures related to the Battle of Midway

should be maintained, in accordance with the National Historic

Preservation Act (16 U.S.C. 470–470t), and subject to the availability of appropriations for that purpose. (3) appropriate access to the Midway Islands by survivors

of the Battle of Midway, their families, and other visitors should

be provided in a manner that ensures the public health and

Virginia.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 461

safety on the Midway Islands and the conservation of the

natural resources of those islands in accordance with existing

Federal law.

SEC. 1093. SENSE OF SENATE REGARDING FEDERAL SPENDING.

It is the sense of the Senate that in pursuit of a balanced

Federal budget, Congress should exercise fiscal restraint, particularly in authorizing spending not requested by the executive branch

and in proposing new programs.

SEC. 1094. EXTENSION OF AUTHORITY FOR VESSEL WAR RISK INSURANCE.

Section 1214 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1294), is amended by striking ‘‘June 30, 1995’’ and inserting in

lieu thereof ‘‘June 30, 2000’’.

TITLE XI—UNIFORM CODE OF MILITARY

JUSTICE

SEC. 1101. SHORT TITLE.

This title may be cited as the ‘‘Military Justice Amendments of 1995’’.

SEC. 1102. REFERENCES TO UNIFORM CODE OF MILITARY JUSTICE.

Except as otherwise expressly provided, whenever in this title 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).

Subtitle A—Offenses

SEC. 1111. REFUSAL TO TESTIFY BEFORE COURT-MARTIAL.

Section 847(b) (article 47(b)) is amended—

(1) in the first sentence, by inserting ‘‘indictment or’’ after

‘‘shall be tried on’’; and

(2) in the second sentence, by striking out ‘‘shall be’’ and

all that follows and inserting in lieu thereof ‘‘shall be fined

or imprisoned, or both, at the court’s discretion.’’.

SEC. 1112. 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. Art. 95. Resistance, flight, breach of arrest, and escape.’’.

10 USC 801 note.

Military Justice

Amendments of

1995.

110 STAT. 462 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 1113. 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 courtmartial may direct.’’.

(b) MISTAKE OF FACT.—Such section (article) is further amended

by adding at the end the following new subsection:

‘‘(d)(1) In a prosecution under subsection (b), it is an affirmative

defense that—

‘‘(A) 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

‘‘(B) the accused reasonably believed that that person had

at the time of the alleged offense attained the age of sixteen

years.

‘‘(2) The accused has the burden of proving a defense under

paragraph (1) by a preponderance of the evidence.’’.

Subtitle B—Sentences

SEC. 1121. EFFECTIVE DATE FOR FORFEITURES OF PAY AND ALLOWANCES AND REDUCTIONS IN GRADE BY SENTENCE OF

COURT-MARTIAL.

(a) EFFECTIVE DATE OF SPECIFIED PUNISHMENTS.—Subsection

(a) of section 857 (article 57) is amended to read as follows:

‘‘(a)(1) Any forfeiture of pay or allowances or reduction in grade

that is included in a sentence of a court-martial takes effect on

the earlier of—

‘‘(A) the date that is 14 days after the date on which

the sentence is adjudged; or

‘‘(B) the date on which the sentence is approved by the

convening authority.

‘‘(2) On application by an accused, the convening authority

may defer a forfeiture of pay or allowances or reduction in grade

that would otherwise become effective under paragraph (1)(A) until

the date on which the sentence is approved by the convening authority. Such a deferment may be rescinded at any time by the convening authority.

‘‘(3) A forfeiture of pay or allowances shall be applicable to

pay and allowances accruing on and after the date on which the

sentence takes effect.

‘‘(4) In this subsection, the term ‘convening authority’, with

respect to a sentence of a court-martial, means any person authorized to act on the sentence under section 860 of this title (article

60).’’.

(b) APPLICABILITY.—The amendment made by subsection (a)

shall apply to a case in which a sentence is adjudged by a courtmartial on or after the first day of the first month that begins

at least 30 days after the date of the enactment of this Act.

10 USC 857 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 463

SEC. 1122. REQUIRED FORFEITURE OF PAY AND ALLOWANCES DURING CONFINEMENT.

(a) EFFECT OF PUNITIVE SEPARATION OR CONFINEMENT FOR

MORE THAN SIX MONTHS.—(1) Subchapter VIII is amended by

inserting after section 858a (article 58a) the following:

‘‘§ 858b. Art. 58b. Sentences: forfeiture of pay and allowances

during confinement

‘‘(a)(1) A court-martial sentence described in paragraph (2) shall

result in the forfeiture of pay and allowances due that member

during any period of confinement or parole. The forfeiture pursuant

to this section shall take effect on the date determined under

section 857(a) of this title (article 57(a)) and may be deferred

as provided in that section. The pay and allowances forfeited, in

the case of a general court-martial, shall be all pay and allowances

due that member during such period and, in the case of a special

court-martial, shall be two-thirds of all pay and allowances due

that member during such period.

‘‘(2) A sentence covered by this section is any sentence that

includes—

‘‘(A) confinement for more than six months or death; or

‘‘(B) confinement for six months or less and a dishonorable

or bad-conduct discharge or dismissal.

‘‘(b) In a case involving an accused who has dependents, the

convening authority or other person acting under section 860 of

this title (article 60) may waive any or all of the forfeitures of

pay and allowances required by subsection (a) for a period not

to exceed six months. Any amount of pay or allowances that, except

for a waiver under this subsection, would be forfeited shall be

paid, as the convening authority or other person taking action

directs, to the dependents of the accused.

‘‘(c) 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 a punishment referred to in subsection (a)(2), the member shall be paid the pay and allowances

which the member would have been paid, except 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 adding at the end the following new item:

‘‘858b. 58b. Sentences: forfeiture of pay and allowances during confinement.’’.

(b) APPLICABILITY.—The section (article) added by the amendment made by subsection (a)(1) shall apply to a case in which

a sentence is adjudged by a court-martial on or after the first

day of the first month that begins at least 30 days after the

date of the enactment of this Act.

(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. 1123. DEFERMENT OF CONFINEMENT.

(a) DEFERMENT.—Subchapter VIII is amended—

(1) by inserting after subsection (c) of section 857 (article

57) the following:

10 USC 858b

note.

110 STAT. 464 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘§ 857a. Art. 57a. Deferment of sentences’’;

(2) by redesignating the succeeding two subsections as subsection (a) and (b);

(3) in subsection (b), as redesignated by paragraph (2),

by striking out ‘‘postpone’’ and inserting in lieu thereof ‘‘defer’’;

and

(4) by inserting after subsection (b), as redesignated by

paragraph (2), the following:

‘‘(c) In any case in which a court-martial sentences a person

to confinement and the sentence to confinement has been ordered

executed, but in which review of the case under section 867(a)(2)

of this title (article 67(a)(2)) is pending, the Secretary concerned

may defer further service of the sentence to confinement while

that review is pending.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such subchapter is amended by inserting after the item

relating to section 857 (article 57) the following new item:

‘‘857a. 57a. Deferment of sentences.’’.

Subtitle C—Pretrial and Post-Trial Actions

SEC. 1131. ARTICLE 32 INVESTIGATIONS.

Section 832 (article 32) is amended—

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

(2) by inserting after subsection (c) the following new sub- section (d):

‘‘(d) If evidence adduced in an investigation under this article

indicates that the accused committed an uncharged offense, the

investigating officer may investigate the subject matter of that

offense without the accused having first been charged with the

offense if the accused—

‘‘(1) is present at the investigation;

‘‘(2) is informed of the nature of each uncharged offense

investigated; and ‘‘(3) is afforded the opportunities for representation, crossexamination, and presentation prescribed in subsection (b).’’.

SEC. 1132. SUBMISSION OF MATTERS TO THE CONVENING AUTHORITY

FOR CONSIDERATION.

Section 860(b)(1) (article 60(b)(1)) is amended by inserting after

the first sentence the following: ‘‘Any such submission shall be

in writing.’’.

SEC. 1133. COMMITMENT OF ACCUSED TO TREATMENT FACILITY BY

REASON OF LACK OF MENTAL CAPACITY OR MENTAL

RESPONSIBILITY.

(a) APPLICABLE PROCEDURES.—(1) Subchapter IX is amended

by inserting after section 876a (article 76a) the following:

‘‘§ 876b. Art. 76b. Lack of mental capacity or mental responsibility: commitment of accused for examination

and treatment

‘‘(a) PERSONS INCOMPETENT TO STAND TRIAL.—(1) In the case

of a person determined under this chapter to be presently suffering

from a mental disease or defect rendering the person mentally

incompetent to the extent that the person is unable to understand

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 465

the nature of the proceedings against that person or to conduct

or cooperate intelligently in the defense of the case, the general

court-martial convening authority for that person shall commit

the person to the custody of the Attorney General.

‘‘(2) The Attorney General shall take action in accordance with

section 4241(d) of title 18.

‘‘(3) If at the end of the period for hospitalization provided

for in section 4241(d) of title 18, it is determined that the committed

person’s mental condition has not so improved as to permit the

trial to proceed, action shall be taken in accordance with section

4246 of such title.

‘‘(4)(A) When the director of a facility in which a person is

hospitalized pursuant to paragraph (2) determines that the person

has recovered to such an extent that the person is able to understand the nature of the proceedings against the person and to

conduct or cooperate intelligently in the defense of the case, the

director shall promptly transmit a notification of that determination

to the Attorney General and to the general court-martial convening

authority for the person. The director shall send a copy of the

notification to the person’s counsel.

‘‘(B) Upon receipt of a notification, the general court-martial

convening authority shall promptly take custody of the person

unless the person covered by the notification is no longer subject

to this chapter. If the person is no longer subject to this chapter,

the Attorney General shall take any action within the authority

of the Attorney General that the Attorney General considers appropriate regarding the person.

‘‘(C) The director of the facility may retain custody of the

person for not more than 30 days after transmitting the notifications

required by subparagraph (A).

‘‘(5) In the application of section 4246 of title 18 to a case

under this subsection, references to the court that ordered the

commitment of a person, and to the clerk of such court, shall

be deemed to refer to the general court-martial convening authority

for that person. However, if the person is no longer subject to

this chapter at a time relevant to the application of such section

to the person, the United States district court for the district

where the person is hospitalized or otherwise may be found shall

be considered as the court that ordered the commitment of the

person.

‘‘(b) PERSONS FOUND NOT GUILTY BY REASON OF LACK OF MENTAL RESPONSIBILITY.—(1) If a person is found by a court-martial

not guilty only by reason of lack of mental responsibility, the

person shall be committed to a suitable facility until the person

is eligible for release in accordance with this section.

‘‘(2) The court-martial shall conduct a hearing on the mental

condition in accordance with subsection (c) of section 4243 of title

18. Subsections (b) and (d) of that section shall apply with respect

to the hearing.

‘‘(3) A report of the results of the hearing shall be made to

the general court-martial convening authority for the person.

‘‘(4) If the court-martial fails to find by the standard specified

in subsection (d) of section 4243 of title 18 that the person’s release

would not create a substantial risk of bodily injury to another

person or serious damage of property of another due to a present

mental disease or defect—

Reports.

Notification.

110 STAT. 466 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(A) the general court-martial convening authority may

commit the person to the custody of the Attorney General;

and

‘‘(B) the Attorney General shall take action in accordance

with subsection (e) of section 4243 of title 18.

‘‘(5) Subsections (f), (g), and (h) of section 4243 of title 18

shall apply in the case of a person hospitalized pursuant to paragraph (4)(B), except that the United States district court for the

district where the person is hospitalized shall be considered as

the court that ordered the person’s commitment.

‘‘(c) GENERAL PROVISIONS.—(1) Except as otherwise provided

in this subsection and subsection (d)(1), the provisions of section

4247 of title 18 apply in the administration of this section.

‘‘(2) In the application of section 4247(d) of title 18 to hearings

conducted by a court-martial under this section or by (or by order

of) a general court-martial convening authority under this section,

the reference in that section to section 3006A of such title does

not apply.

‘‘(d) APPLICABILITY.—(1) The provisions of chapter 313 of title

18 referred to in this section apply according to the provisions

of this section notwithstanding section 4247(j) of title 18.

‘‘(2) If the status of a person as described in section 802 of

this title (article 2) terminates while the person is, pursuant to

this section, in the custody of the Attorney General, hospitalized,

or on conditional release under a prescribed regimen of medical,

psychiatric, or psychological care or treatment, the provisions of

this section establishing requirements and procedures regarding

a person no longer subject to this chapter shall continue to apply

to that person notwithstanding the change of status.’’.

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

is amended by inserting after the item relating to section 876a

(article 76a) the following:

‘‘876b. 76b. Lack of mental capacity or mental responsibility: commitment of accused

for examination and treatment.’’.

(b) CONFORMING AMENDMENT.—Section 802 (article 2) is

amended by adding at the end the following new subsection: ‘‘(e) The provisions of this section are subject to section 876b(d)(2) of this title (article 76b(d)(2)).’’.

(c) EFFECTIVE DATE.—Section 876b of title 10, United States

Code (article 76b of the Uniform Code of Military Justice), as

added by subsection (a), shall take effect at the end of the sixmonth period beginning on the date of the enactment of this Act

and shall apply with respect to charges referred to courts-martial

after the end of that period.

Subtitle D—Appellate Matters

SEC. 1141. APPEALS BY THE UNITED STATES.

(a) APPEALS RELATING TO DISCLOSURE OF CLASSIFIED INFORMATION.—Section 862(a)(1) (article 62(a)(1)) is amended to read as

follows:

‘‘(a)(1) In a trial by court-martial in which a military judge

presides and in which a punitive discharge may be adjudged, the

United States may appeal the following (other than an order or

ruling that is, or that amounts to, a finding of not guilty with

respect to the charge or specification):

10 USC 876b

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 467

‘‘(A) An order or ruling of the military judge which terminates the proceedings with respect to a charge or specification. ‘‘(B) An order or ruling which excludes evidence that is

substantial proof of a fact material in the proceeding.

‘‘(C) An order or ruling which directs the disclosure of

classified information.

‘‘(D) An order or ruling which imposes sanctions for

nondisclosure of classified information.

‘‘(E) A refusal of the military judge to issue a protective

order sought by the United States to prevent the disclosure

of classified information.

‘‘(F) A refusal by the military judge to enforce an order

described in subparagraph (E) that has previously been issued

by appropriate authority.’’.

(b) DEFINITIONS.—Section 801 (article 1) is amended by inserting after paragraph (14) the following new paragraphs:

‘‘(15) The term ‘classified information’ means (A) any

information or material that has been determined by an official

of the United States pursuant to law, an Executive order,

or regulation to require protection against unauthorized disclosure for reasons of national security, and (B) any restricted

data, as defined in section 11(y) of the Atomic Energy Act

of 1954 (42 U.S.C. 2014(y)).

‘‘(16) The term ‘national security’ means the national

defense and foreign relations of the United States.’’.

SEC. 1142. REPEAL OF TERMINATION OF AUTHORITY FOR CHIEF JUSTICE OF THE 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.

Subtitle E—Other Matters

SEC. 1151. ADVISORY COMMITTEE ON CRIMINAL LAW JURISDICTION

OVER CIVILIANS ACCOMPANYING THE ARMED FORCES IN

TIME OF ARMED CONFLICT.

(a) ESTABLISHMENT.—Not later than 45 days after the date

of the enactment of this Act, the Secretary of Defense and the

Attorney General shall jointly appoint an advisory committee to

review and make recommendations concerning the appropriate

forum for criminal jurisdiction over civilians accompanying the

Armed Forces in the field outside the United States in time of

armed conflict.

(b) MEMBERSHIP.—The committee shall be composed of at least

five individuals, including experts in military law, international

law, and Federal civilian criminal law. In making appointments

to the committee, the Secretary and the Attorney General shall

ensure that the members of the committee reflect diverse experiences in the conduct of prosecution and defense functions.

(c) DUTIES.—The committee shall do the following:

(1) Review historical experiences and current practices

concerning the use, training, discipline, and functions of

civilians accompanying the Armed Forces in the field.

10 USC 802 note.

110 STAT. 468 PUBLIC LAW 104–106—FEB. 10, 1996

(2) Based upon such review and other information available

to the committee, develop specific recommendations concerning

the advisability and feasibility of establishing United States

criminal law jurisdiction over persons who as civilians accompany the Armed Forces in the field outside the United States

during time of armed conflict not involving a war declared

by Congress, including whether such jurisdiction should be

established through any of the following means (or a combination of such means depending upon the degree of the armed

conflict involved):

(A) Establishing court-martial jurisdiction over such

persons.

(B) Extending the jurisdiction of the Article III courts

to cover such persons.

(C) Establishing an Article I court to exercise criminal

jurisdiction over such persons.

(3) Develop such additional recommendations as the

committee considers appropriate as a result of the review.

(d) REPORT.—(1) Not later than December 15, 1996, the advisory

committee shall transmit to the Secretary of Defense and the Attorney General a report setting forth its findings and recommendations, including the recommendations required under subsection

(c)(2).

(2) Not later than January 15, 1997, the Secretary of Defense

and the Attorney General shall jointly transmit the report of the

advisory committee to Congress. The Secretary and the Attorney

General may include in the transmittal any joint comments on

the report that they consider appropriate, and either such official

may include in the transmittal any separate comments on the

report that such official considers appropriate.

(e) DEFINITIONS.—For purposes of this section:

(1) The term ‘‘Article I court’’ means a court established

under Article I of the Constitution.

(2) The term ‘‘Article III court’’ means a court established

under Article III of the Constitution.

(f) TERMINATION OF COMMITTEE.—The advisory committee shall

terminate 30 days after the date on which the report of the committee is submitted to Congress under subsection (d)(2).

SEC. 1152. 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. 1153. 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’’.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 469

TITLE XII—COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER

SOVIET UNION

SEC. 1201. 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 programs with respect to states of

the former Soviet Union:

(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. 1202. FISCAL YEAR 1996 FUNDING ALLOCATIONS.

(a) IN GENERAL.—Of the amount appropriated pursuant to the

authorization of appropriations in section 301 for Cooperative

Threat Reduction programs, not more than the following amounts

may be obligated for the purposes specified:

(1) For elimination of strategic offensive weapons in Russia,

Ukraine, Belarus, and Kazakhstan, $90,000,000.

(2) For weapons security in Russia, $42,500,000.

(3) For the Defense Enterprise Fund, $0.

(4) For nuclear infrastructure elimination in Ukraine,

Belarus, and Kazakhstan, $35,000,000.

(5) For planning and design of a storage facility for Russian

fissile material, $29,000,000.

(6) For planning and design of a chemical weapons destruction facility in Russia, $73,000,000.

(7) For activities designated as Defense and Military Contacts/General Support/Training in Russia, Ukraine, Belarus,

and Kazakhstan, $10,000,000.

(8) For activities designated as Other Assessments/Support

$20,500,000.

(b) LIMITED AUTHORITY TO VARY INDIVIDUAL AMOUNTS.—(1)

If the Secretary of Defense determines that it is necessary to

do so in the national interest, the Secretary may, subject to paragraph (2), obligate amounts for the purposes stated in any of the

paragraphs of subsection (a) in excess of the amount specified

for those purposes in that paragraph, but not in excess of 115

percent of that amount. However, the total amount obligated for

the purposes stated in the paragraphs in subsection (a) may not

by reason of the use of the authority provided in the preceding

sentence exceed the sum of the amounts specified in those

paragraphs.

22 USC 5955

note.

110 STAT. 470 PUBLIC LAW 104–106—FEB. 10, 1996

(2) An obligation for the purposes stated in any of the para- graphs in subsection (a) in excess of the amount specified in that

paragraph may be made using the authority provided in paragraph

(1) only after— (A) the Secretary submits to Congress a notification of the intent to do so together with a complete discussion of

the justification for doing so; and (B) 15 days have elapsed following the date of the notification.

(c) REIMBURSEMENT OF PAY ACCOUNTS.—Funds appropriated

pursuant to the authorization of appropriations in section 301 for

Cooperative Threat Reduction programs may be transferred to military personnel accounts for reimbursement of those accounts for

the amount of pay and allowances paid to reserve component

personnel for service while engaged in any activity under a Cooperative Threat Reduction program.

SEC. 1203. 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. 1204. REVISION TO AUTHORITY FOR ASSISTANCE FOR WEAPONS

DESTRUCTION.

Section 211 of Public Law 102–228 (22 U.S.C. 2551 note) is

amended by adding at the end the following new subsection: ‘‘(c) As part of a transmission to Congress under subsection (b) of a certification that a proposed recipient of United States

assistance under this title is committed to carrying out the matters

specified in each of paragraphs (1) through (6) of that subsection,

the President shall include a statement setting forth, in unclassified

form (together with a classified annex if necessary), the determination of the President, with respect to each such paragraph, as

to whether that proposed recipient is at that time in fact carrying

out the matter specified in that paragraph.’’.

SEC. 1205. 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 1201 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

22 USC 5955

note.

Reports.

President.

Notification.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 471

(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. 1206. 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. 1207. LIMITATION ON ASSISTANCE TO NUCLEAR WEAPONS SCIENTISTS OF FORMER SOVIET UNION.

Amounts appropriated pursuant to the authorization of appropriations in section 301 for Cooperative Threat Reduction programs

may not be obligated for any program established primarily to

assist nuclear weapons scientists in states of the former Soviet

Union until 30 days after the date on which the Secretary of

Defense certifies in writing to Congress that the funds to be obligated will not be used (1) to contribute to the modernization of

the strategic nuclear forces of such states, or (2) for research,

development, or production of weapons of mass destruction.

SEC. 1208. LIMITATION RELATING TO OFFENSIVE BIOLOGICAL WARFARE PROGRAM OF RUSSIA.

(a) LIMITATION.—Of the amount appropriated pursuant to the

authorization of appropriations in section 301 for Cooperative

Threat Reduction programs that is available for the purpose stated

in section 1202(a)(6), $60,000,000 may not be obligated or expended

until the President submits to Congress either a certification as

provided in subsection (b) or a certification as provided in subsection

(c).

President.

Certification.

22 USC 5955

note.

110 STAT. 472 PUBLIC LAW 104–106—FEB. 10, 1996

(b) CERTIFICATION WITH RESPECT TO OFFENSIVE BIOLOGICAL

WARFARE PROGRAM OF RUSSIA.—A certification under this subsection is a certification by the President of each of the following: (1) That Russia is in compliance with its obligations under

the Biological Weapons Convention.

(2) That Russia has agreed with the United States and

the United Kingdom on a common set of procedures to govern

visits by officials of the United States and United Kingdom

to military biological facilities of Russia, as called for under

the Joint Statement on Biological Weapons issued by officials

of the United States, the United Kingdom, and Russia on

September 14, 1992.

(3) That visits by officials of the United States and United

Kingdom to the four declared military biological facilities of

Russia have occurred.

(c) ALTERNATIVE CERTIFICATION.—A certification under this

subsection is a certification by the President that the President

is unable to make a certification under subsection (b).

(d) USE OF FUNDS UPON ALTERNATIVE CERTIFICATION.—If the

President makes a certification under subsection (c), the

$60,000,000 specified in subsection (a)—

(1) shall not be available for the purpose stated in section

1202(a)(6); and

(2) shall be available for activities in Ukraine, Kazakhstan,

and Belarus—

(A) for the elimination of strategic offensive weapons

(in addition to the amount specified in section 1202(a)(1));

and

(B) for nuclear infrastructure elimination (in addition

to the amount specified in section 1202(a)(4)).

SEC. 1209. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS

DESTRUCTION FACILITY.

(a) LIMITATION.—Of the amount appropriated pursuant to the

authorization of appropriations in section 301 for Cooperative

Threat Reduction programs that is available for planning and design

of a chemical weapons destruction facility, not more than onehalf of such amount may be obligated or expended until the President certifies to Congress the following:

(1) That the United States and Russia have completed

a joint laboratory study to determine the feasibility of an appropriate technology for destruction of chemical weapons of Russia.

(2) That Russia is making reasonable progress, with the

assistance of the United States (if necessary), toward the

completion of a comprehensive implementation plan for managing and funding the dismantlement and destruction of Russia’s

chemical weapons stockpile.

(3) That the United States and Russia have made substantial progress toward resolution, to the satisfaction of the United

States, of outstanding compliance issues under the 1989

Wyoming Memorandum of Understanding and the 1990

Bilateral Destruction Agreement.

(b) DEFINITIONS.—In this section:

(1) The term ‘‘1989 Wyoming Memorandum of Understanding’’ means the Memorandum of Understanding between the

Government of the United States of America and the Government of the Union of Soviet Socialist Republics Regarding a

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 473

Bilateral Verification Experiment and Data Exchange Related

to Prohibition on Chemical Weapons, signed at Jackson Hole,

Wyoming, on September 23, 1989. (2) The term ‘‘1990 Bilateral Destruction Agreement’’ means the Agreement between the United States of America

and the Union of Soviet Socialist Republics on destruction

and nonproduction of chemical weapons and on measures to

facilitate the multilateral convention on banning chemical

weapons signed on June 1, 1990.

TITLE XIII—MATTERS RELATING TO

OTHER NATIONS

Subtitle A—Peacekeeping Provisions

SEC. 1301. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS

FOR UNITED STATES SHARE OF COSTS OF UNITED

NATIONS PEACEKEEPING ACTIVITIES.

(a) IN GENERAL.—Chapter 20 of title 10, United States Code,

is amended by inserting after section 404 the following new section:

‘‘§ 405. 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.’’. (b) CLERICAL AMENDMENT.—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. Use of Department of Defense funds for United States share of costs of United

Nations peacekeeping activities: limitation.’’.

Subtitle B—Humanitarian Assistance

Programs

SEC. 1311. OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID

PROGRAMS.

(a) COVERED 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.

(b) GAO REPORT.—Not later than March 1, 1996, the Comptroller General of the United States shall provide to the congressional

defense committees a report on—

110 STAT. 474 PUBLIC LAW 104–106—FEB. 10, 1996

(1) existing funding mechanisms available to cover the

costs associated with the Overseas Humanitarian, Disaster,

and Civic Assistance activities through funds provided to the

Department of State or the Agency for International Development, and

(2) if such mechanisms do not exist, actions necessary

to institute such mechanisms, including any changes in existing

law or regulations.

SEC. 1312. 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. 1313. LANDMINE CLEARANCE PROGRAM.

(a) INCLUSION IN GENERAL HUMANITARIAN ASSISTANCE PROGRAM.—Subsection (e) of section 401 of title 10, United States

Code, is amended—

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 475

(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—Arms Exports and Military

Assistance

SEC. 1321. 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:

110 STAT. 476 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(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 in Central Europe that, as determined by

the Secretary of State—

‘‘(A) has changed its form of national government from

a nondemocratic form of government to a democratic form

of government since October 1, 1989; or

‘‘(B) is in the process of changing its form of national

government from a nondemocratic form of government to

a democratic form of government.

‘‘(4) A noncommunist country that was a member nation

of the Asia Pacific Economic Cooperation (APEC) as of October

31, 1993.

‘‘(c) AUTHORITY SUBJECT TO PROVISIONS OF APPROPRIATIONS.—

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 longterm 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) EXPOSURE FEES.—The Secretary of Defense shall charge

a fee (known as ‘exposure fee’) for each guarantee issued under

this subchapter.

‘‘(b) AMOUNT OF EXPOSURE FEE.—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 subsection (a) with respect to a loan guarantee shall be fixed in an

amount that is sufficient to meet potential liabilities of the United

States under the loan guarantee.

‘‘(c) PAYMENT TERMS.—The fee under subsection (a) 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

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 477

as portions of the loan are disbursed, the fee shall be paid incrementally in proportion to the amount of the guarantee that is issued.

‘‘(d) ADMINISTRATIVE FEES.—The Secretary of Defense shall

charge a fee for each guarantee issued under this subchapter to

reflect the additional administrative costs of the Department of

Defense that are directly attributable to the administration of the

program under this subchapter. Such fees shall be credited to

a special account in the Treasury. Amounts in the special account

shall be available, to the extent and in amounts provided in appropriations Acts, for paying the costs of administrative expenses of

the Department of Defense that are attributable to the loan guarantee program under this subchapter.

‘‘§ 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.

(c) FIRST YEAR COSTS.—The Secretary of Defense shall make

available, from amounts appropriated to the Department of Defense

for fiscal year 1996 for operations and maintenance, such amounts

as may be necessary, not to exceed $500,000, for the expenses

of the Department of Defense during fiscal year 1996 that are

directly attributable to the administration of the defense export

loan guarantee program under subchapter VI of chapter 148 of

title 10, United States Code, as added by subsection (a).

(d) REPLENISHMENT OF OPERATIONS AND MAINTENANCE

ACCOUNTS FOR FIRST YEAR COSTS.—The Secretary of Defense shall,

using funds in the special account referred to in section 2540c(d)

of title 10, United States Code (as added by subsection (b)), replenish operations and maintenance accounts for amounts expended

from such accounts for expenses referred to in subsection (c).

President.

10 USC 2540

note.

110 STAT. 478 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 1322. NATIONAL SECURITY IMPLICATIONS OF UNITED STATES

EXPORT CONTROL POLICY.

(a) FINDINGS.—Congress makes the following findings: (1) Export controls remain an important element of the

national security policy of the United States. (2) It is in the national security interest that United States export control policy be effective in preventing the transfer,

to potential adversaries or combatants of the United States,

of technology that threatens the national security or defense

of the United States.

(3) It is in the national security interest that the United States monitor aggressively the export of militarily critical technology in order to prevent its diversion to potential adversaries

or combatants of the United States.

(4) The Department of Defense relies increasingly on commercial and dual-use technologies, products, and processes

to support United States military capabilities and economic

strength. (5) The maintenance of the military advantage of the United States depends on effective export controls on dualuse items and technologies that are critical to the military

capabilities of the Armed Forces.

(b) SENSE OF CONGRESS.—It is the sense of Congress that—

(1) the Secretary of Defense should evaluate license applications for the export of militarily critical commodities the export

of which is controlled for national security reasons if those

commodities are to be exported to certain countries of concern;

(2) the Secretary of Defense should identify the dual-use

items and technologies that are critical to the military capabilities of the Armed Forces, including the military use made

of such items and technologies;

(3) upon identification by the Secretary of Defense of the

dual-use items and technologies referred to in paragraph (2),

the President should ensure effective export controls or use

unilateral export controls on dual-use items and technologies

that are critical to the military capabilities of the Armed Forces

(regardless of the availability of such items or technologies

overseas) with respect to the countries that—

(A) pose a threat to the national security interests

of the United States; and

(B) are not members in good standing of bilateral or

multilateral agreements to which the United States is a

party on the use of such items and technologies; and

(4) the President, upon recommendation of the Secretary

of Defense, should ensure effective controls on the re-export

by other countries of dual-use items and technologies that

are critical to the military capabilities of the Armed Forces.

(c) ANNUAL REPORT.—(1) Not later than December 1 of each

year through 1999, the President shall submit to the committees

specified in paragraph (4) a report on the effect of the export

control policy of the United States on the national security interests

of the United States.

(2) The report shall include the following:

(A) A list setting forth each country determined by the

Secretary of Defense, the intelligence community, and other

appropriate agencies to be a rogue nation or potential adversary

or combatant of the United States.

President.

50 USC app.

2404 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 479

(B) For each country so listed, a list of— (i) the categories of items that the United States currently prohibits for export to the country; (ii) the categories of items that may be exported from

the United States with an individual license, and in such

cases, any licensing conditions normally required and the

policy grounds used for approvals and denials; and

(iii) the categories of items that may be exported under

a general license designated ‘‘G-DEST’’.

(C) For each category of items listed under subparagraph

(B)—

(i) a statement whether a prohibition, control, or licensing requirement on a category of items is imposed pursuant

to an international multilateral agreement or is unilateral;

(ii) a statement whether a prohibition, control, or

licensing requirement on a category of items is imposed

by the other members of an international agreement or

is unilateral;

(iii) when the answer under either clause (i) or clause

(ii) is unilateral, a statement concerning the efforts being

made to ensure that the prohibition, control, or licensing

requirement is made multilateral; and

(iv) a statement on what impact, if any, a unilateral

prohibition is having, or would have, on preventing the

rogue nation or potential adversary from attaining the

items in question for military purposes.

(D) A description of United States policy on sharing satellite

imagery that has military significance and a discussion of the

criteria for determining the imagery that has that significance.

(E) A description of the relationship between United States

policy on the export of space launch vehicle technology and

the Missile Technology Control Regime.

(F) An assessment of United States efforts to support the

inclusion of additional countries in the Missile Technology Control Regime.

(G) An assessment of the ongoing efforts made by potential

participant countries in the Missile Technology Control Regime

to meet the guidelines established by the Missile Technology

Control Regime.

(H) A discussion of the history of the space launch vehicle

programs of other countries, including a discussion of the military origins and purposes of such programs and the current

level of military involvement in such programs.

(3) The President shall submit the report in unclassified form,

but may include a classified annex.

(4) The committees referred to in paragraph (1) are the

following:

(A) The Committee on Armed Services and the Committee

on Foreign Relations of the Senate.

(B) The Committee on National Security and the Committee on International Relations of the House of Representatives.

(5) For purposes of this subsection, the term ‘‘Missile Technology Control Regime’’ means the policy statement announced

on April 16, 1987, between the United States, the United Kingdom,

the Federal Republic of Germany, France, Italy, Canada, and Japan

to restrict sensitive missile-relevant transfers based on the Missile

Technology Control Regime Annex, and any amendment thereto.

110 STAT. 480 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 1323. DEPARTMENT OF DEFENSE REVIEW OF EXPORT LICENSES

FOR CERTAIN BIOLOGICAL PATHOGENS.

(a) DEPARTMENT OF DEFENSE REVIEW.—Any application to the

Secretary of Commerce for a license for the export of a class 2,

class 3, or class 4 biological pathogen to a country identified to

the Secretary under subsection (c) as a country that is known

or suspected to have a biological weapons program shall be referred

to the Secretary of Defense for review. The Secretary of Defense

shall notify the Secretary of Commerce within 15 days after receipt

of an application under the preceding sentence whether the export

of such biological pathogen pursuant to the license would be contrary to the national security interests of the United States.

(b) DENIAL OF LICENSE IF CONTRARY TO NATIONAL SECURITY

INTEREST.—A license described in subsection (a) shall be denied

by the Secretary of Commerce if it is determined that the export

of such biological pathogen to that country would be contrary to

the national security interests of the United States.

(c) IDENTIFICATION OF COUNTRIES KNOWN OR SUSPECTED TO

HAVE A PROGRAM TO DEVELOP OFFENSIVE BIOLOGICAL WEAPONS.—

(1) The Secretary of Defense shall determine, for the purposes

of this section, those countries that are known or suspected to

have a program to develop offensive biological weapons. Upon making such determination, the Secretary shall provide to the Secretary

of Commerce a list of those countries.

(2) The Secretary of Defense shall update the list under paragraph (1) on a regular basis. Whenever a country is added to

or deleted from such list, the Secretary shall notify the Secretary

of Commerce.

(3) Determination under this subsection of countries that are

known or suspected to have a program to develop offensive biological

weapons shall be made in consultation with the Secretary of State

and the intelligence community.

(d) DEFINITION.—For purposes of this section, the term ‘‘class

2, class 3, or class 4 biological pathogen’’ means any biological

pathogen that is characterized by the Centers for Disease Control

as a class 2, class 3, or class 4 biological pathogen.

SEC. 1324. ANNUAL REPORTS ON IMPROVING EXPORT CONTROL

MECHANISMS AND ON MILITARY ASSISTANCE.

(a) JOINT REPORTS BY SECRETARIES OF STATE AND COMMERCE.—

Not later than April 1 of each of 1996 and 1997, the Secretary

of State and the Secretary of Commerce shall submit to Congress

a joint report, prepared in consultation with the Secretary of

Defense, relating to United States export-control mechanisms. Each

such report shall set forth measures to be taken to strengthen

United States export-control mechanisms, including—

(1) steps being taken by each Secretary (A) to share on

a regular basis the export licensing watchlist of that Secretary’s

department with the other Secretary, and (B) to incorporate

the export licensing watchlist data received from the other

Secretary into the watchlist of that Secretary’s department;

(2) steps being taken by each Secretary to incorporate

into the watchlist of that Secretary’s department similar data

from systems maintained by the Department of Defense and

the United States Customs Service; and

50 USC app.

2404 note.

Notification.

Notification.

50 USC app.

2404 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 481

(3) a description of such further measures to be taken

to strengthen United States export-control mechanisms as the

Secretaries consider to be appropriate.

(b) REPORTS BY INSPECTORS GENERAL.—(1) Not later than April

1 of each of 1996 and 1997, the Inspector General of the Department

of State and the Inspector General of the Department of Commerce

shall each submit to Congress a report providing that official’s

evaluation of the effectiveness during the preceding year of the

export licensing watchlist screening process of that official’s department. The reports shall be submitted in both a classified and

unclassified version.

(2) Each report of an Inspector General under paragraph (1) shall (with respect to that official’s department)— (A) set forth the number of export licenses granted to parties on the export licensing watchlist; (B) set forth the number of end-use checks performed with

respect to export licenses granted to parties on the export

licensing watchlist the previous year; (C) assess the screening process used in granting an export license when an applicant is on the export licensing watchlist;

and

(D) assess the extent to which the export licensing watchlist contains all relevant information and parties required by statute or regulation.

(c) ANNUAL MILITARY ASSISTANCE REPORT.—The Foreign Assist- ance Act of 1961 is amended by inserting after section 654 (22

U.S.C. 2414) the following new section:

‘‘SEC. 655. ANNUAL REPORT ON MILITARY ASSISTANCE, MILITARY

EXPORTS, AND MILITARY IMPORTS.

‘‘(a) REPORT REQUIRED.—Not later than February 1 of each of 1996 and 1997, the President shall transmit to Congress a

report concerning military assistance authorized or furnished for

the fiscal year ending the previous September 30. ‘‘(b) INFORMATION RELATING TO MILITARY ASSISTANCE AND MILI- TARY EXPORTS.—Each such report shall show the aggregate dollar value and quantity of defense articles (including excess defense

articles) and defense services, and of military education and training, authorized or furnished by the United States to each foreign

country and international organization. The report shall specify,

by category, whether those articles and services, and that education

and training, were furnished by grant under chapter 2 or chapter

5 of part II of this Act or by sale under chapter 2 of the Arms

Export Control Act or were authorized by commercial sale licensed

under section 38 of the Arms Export Control Act. ‘‘(c) INFORMATION RELATING TO MILITARY IMPORTS.—Each such

report shall also include the total amount of military items of

non-United States manufacture that were imported into the United

States during the fiscal year covered by the report. The report

shall show the country of origin, the type of item being imported,

and the total amount of items.’’.

SEC. 1325. REPORT ON PERSONNEL REQUIREMENTS FOR CONTROL

OF TRANSFER OF CERTAIN WEAPONS.

Not later than 30 days after the date of the enactment of

this Act, the Secretary of Defense and the Secretary of Energy

shall submit to the committees of Congress referred to in subsection

(c) of section 1154 of the National Defense Authorization Act for

President.

22 USC 2415.

110 STAT. 482 PUBLIC LAW 104–106—FEB. 10, 1996

Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1761) the report

required under subsection (a) of that section. The Secretary of

Defense and the Secretary of Energy shall include with the report

an explanation of the failure of such Secretaries to submit the

report in accordance with such subsection (a) and with all other

previous requirements for the submittal of the report.

Subtitle D—Burdensharing and Other Cooperative Activities Involving Allies and

NATO

SEC. 1331. 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. 1332. 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:

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 483

‘‘§ 2350k. Relocation within host nation of elements of armed

forces overseas

‘‘(a) AUTHORITY TO ACCEPT CONTRIBUTIONS.—The Secretary of

Defense may accept contributions from any nation because of or

in support of the relocation of elements of the armed forces from

or to any location within that nation. Such contributions may be

accepted in dollars or in the currency of the host nation. Any

such contribution shall be placed in an account established for

such purpose and shall remain available until expended for the

purposes specified in subsection (b). The Secretary shall establish

a separate account for such purpose for each country from which

such contributions are accepted.

‘‘(b) USE OF CONTRIBUTIONS.—The Secretary may use a contribution accepted under subsection (a) only for payment of costs

incurred in connection with the relocation concerning which the

contribution was made. Those costs include the following:

‘‘(1) Design and construction services, including development and review of statements of work, master plans and

designs, acquisition of construction, and supervision and

administration of contracts relating thereto.

‘‘(2) Transportation and movement services, including packing, unpacking, storage, and transportation.

‘‘(3) Communications services, including installation and

deinstallation of communications equipment, transmission of

messages and data, and rental of transmission capability.

‘‘(4) Supply and administration, including acquisition of

expendable office supplies, rental of office space, budgeting

and accounting services, auditing services, secretarial services,

and translation services.

‘‘(5) Personnel costs, including salary, allowances and overhead of employees whether full-time or part-time, temporary

or permanent (except for military personnel), and travel and

temporary duty costs.

‘‘(6) All other clearly identifiable expenses directly related

to relocation.

‘‘(c) METHOD OF CONTRIBUTION.—Contributions may be

accepted in any of the following forms:

‘‘(1) Irrevocable letter of credit issued by a financial institution acceptable to the Treasurer of the United States.

‘‘(2) Drawing rights on a commercial bank account established and funded by the host nation, which account is blocked

such that funds deposited cannot be withdrawn except by or

with the approval of the United States.

‘‘(3) Cash, which shall be deposited in a separate trust

fund in the United States Treasury pending expenditure and

which shall accrue interest in accordance with section 9702

of title 31.

‘‘(d) ANNUAL REPORT TO CONGRESS.—Not later than 30 days

after the end of each fiscal year, the Secretary shall submit to

Congress a report specifying—

‘‘(1) the amount of the contributions accepted by the Secretary during the preceding fiscal year under subsection (a)

and the purposes for which the contributions were made; and

‘‘(2) the amount of the contributions expended by the Secretary during the preceding fiscal year and the purposes for

which the contributions were expended.’’.

110 STAT. 484 PUBLIC LAW 104–106—FEB. 10, 1996

(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 the date

of the enactment of this Act 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. 1333. REVISED GOAL FOR ALLIED SHARE OF COSTS FOR UNITED

STATES INSTALLATIONS IN EUROPE.

Section 1304(a) of the National Defense Authorization Act for

Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2890) is amended—

(1) by inserting ‘‘(1)’’ after ‘‘so that’’; and

(2) by inserting before the period at the end the following: ‘‘, and (2) by September 30, 1997, those nations have assumed

42.5 percent of such costs’’.

SEC. 1334. EXCLUSION OF CERTAIN FORCES FROM EUROPEAN END

STRENGTH LIMITATION.

(a) EXCLUSION OF MEMBERS PERFORMING DUTIES UNDER MILI- TARY-TO-MILITARY CONTACT PROGRAM.—Paragraph (3) of section 1002(c) of the Department of Defense Authorization Act, 1985 (22

U.S.C. 1928 note) is amended to read as follows:

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

of the Armed Forces are excluded in calculating 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: ‘‘(A) Members assigned to permanent duty ashore in Iceland, Greenland, and the Azores.

‘‘(B) Members performing duties in Europe for more than

179 days under a military-to-military contact program under

section 168 of title 10, United States Code.’’.

SEC. 1335. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS WITH NATO ORGANIZATIONS.

Section 2350b(e) of title 10, United States Code, is amended—

(1) in paragraph (1), by inserting ‘‘or a NATO organization’’

after ‘‘a participant (other than the United States)’’; and

(2) in paragraph (2), by striking out ‘‘a cooperative project’’

and inserting in lieu thereof ‘‘such a cooperative project or

a NATO organization’’.

SEC. 1336. SUPPORT SERVICES FOR THE NAVY AT THE PORT OF HAIFA,

ISRAEL.

(a) SENSE OF CONGRESS.—It is the sense of Congress that

the Secretary of Defense should promptly seek to undertake such

actions as are necessary—

(1) to ensure that suitable port services are available to

the Navy at the Port of Haifa, Israel; and

(2) to ensure the availability to the Navy of suitable services

at that port in light of the continuing increase in commercial

activities at the port.

(b) REPORT.—Not later than 30 days after the date of the

enactment of this Act, the Secretary of the Navy shall submit

to Congress a report on the availablity of port services for the

10 USC 2350k

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 485

Navy in the eastern Mediterranean Sea region. The report shall

specify—

(1) the services required by the Navy when calling at

the port of Haifa, Israel; and

(2) the availability of those services at ports elsewhere

in the region.

Subtitle E—Other Matters

SEC. 1341. PROHIBITION ON FINANCIAL ASSISTANCE TO TERRORIST

COUNTRIES.

(a) PROHIBITION.—Subchapter I of chapter 134 of title 10,

United States Code, is amended by adding at the end the following:

‘‘§ 2249a. Prohibition on providing financial assistance to

terrorist countries

‘‘(a) PROHIBITION.—Funds available to the Department of

Defense may not be obligated or expended to provide financial

assistance to—

‘‘(1) any country with respect to which the Secretary of

State has made a determination under section 6(j)(1)(A) of

the Export Administration Act of 1979 (50 App. 2405(j));

‘‘(2) any country identified in the latest report submitted

to Congress under section 140 of the Foreign Relations

Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C.

2656f), as providing significant support for international terrorism; or

‘‘(3) any other country that, as determined by the

President—

‘‘(A) grants sanctuary from prosecution to any individual or group that has committed an act of international

terrorism; or

‘‘(B) otherwise supports international terrorism.

‘‘(b) WAIVER.—(1) The President may waive the application

of subsection (a) to a country if the President determines—

‘‘(A) that it is in the national security interests of the

United States to do so; or

‘‘(B) that the waiver should be granted for humanitarian

reasons.

‘‘(2) The President shall—

‘‘(A) notify the Committee on Armed Services and the

Committee on Foreign Relations of the Senate and the Committee on National Security and the Committee on International

Relations of the House of Representatives at least 15 days

before the waiver takes effect; and

‘‘(B) publish a notice of the waiver in the Federal Register.

‘‘(c) DEFINITION.—In this section, the term ‘international terrorism’ has the meaning given that term in section 140(d) of the

Foreign Relations Authorization Act, Fiscal Years 1988 and 1989

(22 U.S.C. 2656f(d)).’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of subchapter I of such chapter is amended by adding at

the end the following:

‘‘2249a. Prohibition on providing financial assistance to terrorist countries.’’.

Federal Register,

publication.

Notification.

President.

110 STAT. 486 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 1342. JUDICIAL ASSISTANCE TO THE INTERNATIONAL TRIBUNAL

FOR YUGOSLAVIA AND TO THE INTERNATIONAL TRIBUNAL FOR RWANDA.

(a) SURRENDER OF PERSONS.—

(1) APPLICATION OF UNITED STATES EXTRADITION LAWS.—

Except as provided in paragraphs (2) and (3), the provisions

of chapter 209 of title 18, United States Code, relating to

the extradition of persons to a foreign country pursuant to

a treaty or convention for extradition between the United States

and a foreign government, shall apply in the same manner

and extent to the surrender of persons, including United States

citizens, to—

(A) the International Tribunal for Yugoslavia, pursuant

to the Agreement Between the United States and the International Tribunal for Yugoslavia; and

(B) the International Tribunal for Rwanda, pursuant

to the Agreement Between the United States and the International Tribunal for Rwanda.

(2) EVIDENCE ON HEARINGS.—For purposes of applying section 3190 of title 18, United States Code, in accordance with

paragraph (1), the certification referred to in that section may

be made by the principal diplomatic or consular officer of the

United States resident in such foreign countries where the

International Tribunal for Yugoslavia or the International

Tribunal for Rwanda may be permanently or temporarily

situated.

(3) PAYMENT OF FEES AND COSTS.—(A) The provisions of

the Agreement Between the United States and the International Tribunal for Yugoslavia and of the Agreement Between

the United States and the International Tribunal for Rwanda

shall apply in lieu of the provisions of section 3195 of title

18, United States Code, with respect to the payment of expenses

arising from the surrender by the United States of a person

to the International Tribunal for Yugoslavia or the International Tribunal for Rwanda, respectively, or from any

proceedings in the United States relating to such surrender.

(B) The authority of subparagraph (A) may be exercised

only to the extent and in the amounts provided in advance

in appropriations Acts.

(4) NONAPPLICABILITY OF THE FEDERAL RULES.—The Federal Rules of Evidence and the Federal Rules of Criminal

Procedure do not apply to proceedings for the surrender of

persons to the International Tribunal for Yugoslavia or the

International Tribunal for Rwanda.

(b) ASSISTANCE TO FOREIGN AND INTERNATIONAL TRIBUNALS

AND TO LITIGANTS BEFORE SUCH TRIBUNALS.—Section 1782(a) of

title 28, United States Code, is amended by inserting in the first

sentence after ‘‘foreign or international tribunal’’ the following: ‘‘,

including criminal investigations conducted before formal

accusation’’.

(c) DEFINITIONS.—For purposes of this section:

(1) INTERNATIONAL TRIBUNAL FOR YUGOSLAVIA.—The term

‘‘International Tribunal for Yugoslavia’’ means the International Tribunal for the Prosecution of Persons Responsible

for Serious Violations of International Humanitarian Law in

the Territory of the Former Yugoslavia, as established by

18 USC 3181

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 487

United Nations Security Council Resolution 827 of May 25,

1993.

(2) INTERNATIONAL TRIBUNAL FOR RWANDA.—The term

‘‘International Tribunal for Rwanda’’ means the International

Tribunal for the Prosecution of Persons Responsible for Genocide and Other Serious Violations of International Humanitarian Law Committed in the Territory of Rwanda and

Rwandan Citizens Responsible for Genocide and Other Such

Violations Committed in the Territory of Neighboring States,

as established by United Nations Security Council Resolution

955 of November 8, 1994.

(3) AGREEMENT BETWEEN THE UNITED STATES AND THE

INTERNATIONAL TRIBUNAL FOR YUGOSLAVIA.—The term ‘‘Agreement Between the United States and the International Tribunal

for Yugoslavia’’ means the Agreement on Surrender of Persons

Between the Government of the United States and the International Tribunal for the Prosecution of Persons Responsible

for Serious Violations of International Law in the Territory

of the Former Yugoslavia, signed at The Hague, October 5,

1994.

(4) AGREEMENT BETWEEN THE UNITED STATES AND THE

INTERNATIONAL TRIBUNAL FOR RWANDA.—The term ‘‘Agreement

between the United States and the International Tribunal for

Rwanda’’ means the Agreement on Surrender of Persons

Between the Government of the United States and the International Tribunal for the Prosecution of Persons Responsible

for Genocide and Other Serious Violations of International

Humanitarian Law Committed in the Territory of Rwanda and

Rwandan Citizens Responsible for Genocide and Other Such

Violations Committed in the Territory of Neighboring States,

signed at The Hague, January 24, 1995.

SEC. 1343. SEMIANNUAL REPORTS CONCERNING UNITED STATES-PEOPLE’S REPUBLIC OF CHINA JOINT DEFENSE CONVERSION

COMMISSION.

(a) REPORTS REQUIRED.—The Secretary of Defense shall submit

to Congress a semiannual report on the United States-People’s

Republic of China Joint Defense Conversion Commission. Each

such report shall include the following:

(1) A description of the extent to which the activities conducted in, through, or as a result of the Commission could

have directly or indirectly assisted, or may directly or indirectly

assist, the military modernization efforts of the People’s Republic of China.

(2) A discussion of the activities and operations of the

Commission, including—

(A) United States funding;

(B) a listing of participating United States officials;

(C) specification of meeting dates and locations

(prospective and retrospective);

(D) summary of discussions; and

(E) copies of any agreements reached.

(3) A discussion of the relationship between the ‘‘defense

conversion’’ activities of the People’s Republic of China and

its defense modernization efforts.

(4) A discussion of the extent to which United States business activities pursued, or proposed to be pursued, under the

110 STAT. 488 PUBLIC LAW 104–106—FEB. 10, 1996

imprimatur of the Commission, or the importation of western

technology in general, contributes to the modernization of China’s military industrial base, including any steps taken by

the United States or by United States commercial entities

to safeguard the technology or intellectual property rights associated with any materials or information transferred.

(5) An assessment of the benefits derived by the United

States from its participation in the Commission, including

whether or to what extent United States participation in the

Commission has resulted or will result in the following:

(A) Increased transparency in the current and projected

military budget and doctrine of the People’s Republic of

China.

(B) Improved behavior and cooperation by the People’s

Republic of China in the areas of missile and nuclear

proliferation.

(C) Increased transparency in the plans of the People’s

Republic of China’s for nuclear and missile force modernization and testing.

(6) Efforts undertaken by the Secretary of Defense to—

(A) establish a list of enterprises controlled by the

People’s Liberation Army, including those which have been

successfully converted to produce products solely for civilian

use; and

(B) provide estimates of the total revenues of those

enterprises.

(7) A description of current or proposed mechanisms for

improving the ability of the United States to track the flow

of revenues from the enterprises specified on the list established

under paragraph (6)(A).

(b) SUBMITTAL OF REPORTS.—A report shall be submitted under

subsection (a) not later than August 1 of each year with respect

to the first six months of that year and shall be submitted not

later than February 1 of each year with respect to the last six

months of the preceding year. The first report under such subsection

shall be submitted not less than 60 days after the date of the

enactment of this Act and shall apply with respect to the sixmonth period preceding the date of the enactment of this Act.

(c) FINAL REPORT UPON TERMINATION OF COMMISSION.—Upon

the termination of the United States-People’s Republic of China

Joint Defense Conversion Commission, the Secretary of Defense

shall submit a final report under this section covering the period

from the end of the period covered by the last such report through

the termination of the Commission, and subsection (a) shall cease

to apply after the submission of such report.

TITLE XIV—ARMS CONTROL MATTERS

SEC. 1401. REVISION OF DEFINITION OF LANDMINE FOR PURPOSES

OF LANDMINE EXPORT MORATORIUM.

Section 1423(d) of the National Defense Authorization Act for

Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1832) is amended—

(1) by redesignating paragraphs (1), (2), and (3) as subparagraphs (A), (B), and (C), respectively;

(2) in subparagraph (C), as so redesignated, by striking

out ‘‘by remote control or’’;

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 489

(3) by inserting ‘‘(1)’’ before ‘‘For purposes of’’; and

(4) by adding at the end the following new paragraph: ‘‘(2) The term does not include command detonated antipersonnel land mines (such as the M18A1 ‘Claymore’ mine).’’.

SEC. 1402. REPORTS ON MORATORIUM ON USE BY ARMED FORCES

OF ANTIPERSONNEL LANDMINES.

Not later than April 30 of each of 1996, 1997, and 1998,

the Chairman of the Joint Chiefs of Staff shall submit to the

congressional defense committees a report on the projected effects

of a moratorium on the defensive use of antipersonnel mines and

antitank mines by the Armed Forces. The report shall include

a discussion of the following matters: (1) The extent to which current doctrine and practices

of the Armed Forces on the defensive use of antipersonnel

mines and antitank mines adhere to applicable international

law.

(2) The effects that a moratorium would have on the defensive use of the current United States inventory of remotely

delivered, self-destructing antitank systems, antipersonnel

mines, and antitank mines.

(3) The reliability of the self-destructing antipersonnel mines and self-destructing antitank mines of the United States. (4) The cost of clearing the antipersonnel minefields cur- rently protecting Naval Station Guantanamo Bay, Cuba, and

other United States installations.

(5) The cost of replacing antipersonnel mines in such mine- fields with substitute systems such as the Claymore mine,

and the level of protection that would be afforded by use of

such a substitute.

(6) The extent to which the defensive use of antipersonnel

mines and antitank mines by the Armed Forces is a source

of civilian casualties around the world, and the extent to which

the United States, and the Department of Defense particularly,

contributes to alleviating the illegal and indiscriminate use

of such munitions.

(7) The extent to which the threat to the security of United States forces during operations other than war and combat

operations would increase as a result of such a moratorium.

SEC. 1403. EXTENSION AND AMENDMENT OF COUNTER-PROLIFERATION 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’’.

110 STAT. 490 PUBLIC LAW 104–106—FEB. 10, 1996

(2) Subsection (c)(3) of such section is amended by striking out ‘‘will be counted’’ and all that follows and inserting in lieu

thereof ‘‘will be counted as discretionary spending in the national

defense budget function (function 050).’’. (c) AMOUNT OF ASSISTANCE.—Subsection (d) of such section

is amended—

(1) in paragraph (1)— (A) by striking out ‘‘for fiscal year 1994’’ the first place it appears and all that follows through the period

at the end of the second sentence and inserting in lieu

thereof ‘‘for any fiscal year shall be derived from amounts

made available to the Department of Defense for that fiscal

year.’’; and (B) by striking out ‘‘referred to in this paragraph’’; and

(2) in paragraph (3)— (A) by striking out ‘‘may not exceed’’ and all that follows through ‘‘1995’’; and (B) by inserting before the period at the end the follow- ing: ‘‘, 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. 1404. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF

STRATEGIC NUCLEAR DELIVERY SYSTEMS.

(a) SENSE OF CONGRESS.—It is the sense of Congress that, unless and until the START II Treaty enters into force, the Secretary of Defense should not take any action to retire or dismantle,

or to prepare to retire or dismantle, any of the following strategic

nuclear delivery systems: (1) B–52H bomber aircraft.

(2) Trident ballistic missile submarines.

(3) Minuteman III intercontinental ballistic missiles.

(4) Peacekeeper intercontinental ballistic missiles. (b) LIMITATION ON USE OF FUNDS.—Funds available to the

Department of Defense may not be obligated or expended during

fiscal year 1996 for retiring or dismantling, or for preparing to

retire or dismantle, any of the strategic nuclear delivery systems

specified in subsection (a).

SEC. 1405. CONGRESSIONAL FINDINGS AND SENSE OF CONGRESS

CONCERNING TREATY VIOLATIONS.

(a) REAFFIRMATION OF PRIOR FINDINGS CONCERNING THE

KRASNOYARSK RADAR.—Congress, noting its previous findings with respect to the large phased-array radar of the Soviet Union known

as the ‘‘Krasnoyarsk radar’’ stated in paragraphs (1) through (4)

of section 902(a) of the National Defense Authorization Act for

Fiscal Years 1988 and 1989 (Public Law 100–180; 101 Stat. 1135)

(and reaffirmed in section 1006(a) of the National Defense

Authorization Act for Fiscal Years 1990 and 1991 (Public Law

101–189; 103 Stat. 1543)), hereby reaffirms those findings as

follows:

(1) The 1972 Anti-Ballistic Missile Treaty prohibits each

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 each

party from deploying an ABM system to defend its national

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 491

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 has subsequently been judged to be for ballistic missile early warning

and tracking.

(b) FURTHER REFERENCE TO 1987 CONGRESSIONAL STATEMENTS.—Congress further notes that in section 902 of the National

Defense Authorization Act for Fiscal Years 1988 and 1989 (Public

Law 100–180; 101 Stat. 1135) Congress also—

(1) noted that the President had certified that the

Krasnoyarsk radar was an unequivocal violation of the 1972

Anti-Ballistic Missile Treaty; and

(2) stated it to be the sense of the Congress that the

Soviet Union was in violation of its legal obligation under

that treaty.

(c) FURTHER REFERENCE TO 1989 CONGRESSIONAL STATEMENTS.—Congress further notes that in section 1006(b) of the

National Defense Authorization Act for Fiscal Years 1990 and 1991

(Public Law 101–189; 103 Stat. 1543) Congress also—

(1) again noted that in 1987 the President declared that

radar to be a clear violation of the 1972 Anti-Ballistic Missile

Treaty and noted that on October 23, 1989, the Foreign Minister

of the Soviet Union conceded that the Krasnoyarsk radar is

a violation of the 1972 Anti-Ballistic Missile Treaty; and

(2) stated it to be the sense of the Congress that the

Soviet Union should dismantle the Krasnoyarsk radar expeditiously and without conditions and that until such radar was

completely dismantled it would remain a clear violation of

the 1972 Anti-Ballistic Missile Treaty.

(d) ADDITIONAL FINDINGS.—Congress also finds, with respect

to the Krasnoyarsk radar, that retired Soviet General Y.V.

Votintsev, Director of the Soviet National Air Defense Forces from

1967 to 1985, has publicly stated—

(1) that he was directed by the Chief of the Soviet General

staff to locate the large phased-array radar at Krasnoyarsk

despite the recognition by Soviet authorities that the location

of such a radar at that location would be a clear violation

of the 1972 Anti-Ballistic Missile Treaty; and

(2) 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.

(e) SENSE OF CONGRESS CONCERNING SOVIET TREATY VIOLATIONS.—It is the sense of Congress that 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.

(f) SENSE OF CONGRESS CONCERNING COMPLIANCE BY RUSSIA

WITH ARMS CONTROL OBLIGATIONS.—In light of subsections (a)

through (e), it is the sense of Congress that the United States

should remain vigilant in ensuring compliance by Russia with its

D.F. Ustinov.

Y.V. Votintsev.

110 STAT. 492 PUBLIC LAW 104–106—FEB. 10, 1996

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. 1406. SENSE OF CONGRESS ON RATIFICATION OF CHEMICAL

WEAPONS CONVENTION AND START II TREATY.

(a) FINDINGS.—Congress makes the following findings:

(1) Proliferation of chemical or nuclear weapons materials

poses a danger to United States national security, and the

threat or use of such materials by terrorists would directly

threaten United States citizens at home and abroad.

(2) 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 IranIraq 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 not sufficiently addressed, and of the need

to outlaw the development, production, and possession of chemical weapons.

(3) The Chemical Weapons Convention negotiated and

signed by President Bush would make it more difficult for

would-be proliferators, including terrorists, to acquire or use

chemical weapons, if ratified and fully implemented, as signed,

by all signatories.

(4) 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 ratification of the Chemical Weapons Convention.

(5) 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.

(6) The Convention has not entered into force for lack

of the requisite number of ratifications.

(7) Russia has signed the Convention, but has not yet

ratified it.

(8) 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.’’.

(9) The Convention will impose a legally binding obligation

on Russia and other nations that possess chemical weapons

and that ratify the Convention to cease offensive chemical

weapons activities and to destroy their chemical weapons stockpiles and production facilities.

(10) 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.

John

Shalikashvili.

George Bush.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 493

(11) 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.

(12) The START II Treaty negotiated and signed by President Bush would help reduce the danger of potential

proliferators, including terrorists, acquiring nuclear warheads

and materials, and would contribute to United States-Russian

bilateral efforts to secure and dismantle nuclear warheads,

if ratified and fully implemented as signed by both parties.

(13) It is in the national security interest of the United

States to take effective steps to make it more difficult for

proliferators or would-be terrorists to obtain chemical or nuclear

materials for use in weapons.

(14) The President has urged prompt Senate action on,

and advice and consent to ratification of, the START II Treaty

and the Chemical Weapons Convention.

(15) The Chairman of the Joint Chiefs of Staff has testified

to Congress that ratification and full implementation of both

treaties by all parties is in the United States national interest

and has strongly urged prompt Senate advice and consent

to their ratification.

(b) SENSE OF CONGRESS.—It is the sense of Congress that

the United States, Russia, and all other parties to the START

II Treaty and the Chemical Weapons Convention should promptly

ratify and fully implement, as negotiated, both treaties.

SEC. 1407. IMPLEMENTATION OF ARMS CONTROL AGREEMENTS.

(a) FUNDING.—Of the amounts appropriated pursuant to

authorizations in sections 102, 103, 104, 201, and 301, the Secretary

of Defense may use an amount not to exceed $239,941,000 for

implementing arms control agreements to which the United States

is a party.

(b) LIMITATION.—(1) Funds made available pursuant to subsection (a) for the costs of implementing an arms control agreement

may not (except as provided in paragraph (2)) be used to reimburse

expenses incurred by any other party to the agreement for which

(without regard to any executive agreement or any policy not part

of an arms control agreement)—

(A) the other party is responsible under the terms of the

arms control agreement; and

(B) the United States has no responsibility under the agreement.

(2) The limitation in paragraph (1) does not apply to a use

of funds to carry out an arms control expenses reimbursement

policy of the United States described in subsection (c).

(c) COVERED ARMS CONTROL EXPENSES REIMBURSEMENT POLICIES.—Subsection (b)(2) applies to a policy of the United States

to reimburse expenses incurred by another party to an arms control

agreement if—

(1) the policy does not modify any obligation imposed by

the arms control agreement;

(2) the President—

(A) issued or approved the policy before the date of

the enactment of this Act; or

(B) entered into an agreement on the policy with the

government of another country or approved an agreement

110 STAT. 494 PUBLIC LAW 104–106—FEB. 10, 1996

on the policy entered into by an official of the United

States and the government of another country; and

(3) the President has notified the designated congressional

committees of the policy or the policy agreement (as the case

may be), in writing, at least 30 days before the date on which

the President issued or approved the policy or has entered

into or approved the policy agreement.

(d) DEFINITIONS.—For the purposes of this section:

(1) The term ‘‘arms control agreement’’ means an arms

control treaty or other form of international arms control agreement.

(2) The term ‘‘executive agreement’’ means an international

agreement entered into by the President that is not authorized

by law or entered into as a Treaty to which the Senate has

given its advice and consent to ratification.

(3) The term ‘‘designated congressional committees’’ means

the following:

(A) The Committee on Foreign Relations, the Committee on Armed Services, and the Committee on Appropriations of the Senate.

(B) The Committee on International Relations, the

Committee on National Security, and the Committee on

Appropriations of the House of Representatives.

SEC. 1408. IRAN AND IRAQ ARMS NONPROLIFERATION.

(a) SANCTIONS AGAINST TRANSFERS OF PERSONS.—Section

1604(a) of the Iran-Iraq Arms Non-Proliferation Act of 1992 (title

XVI of Public Law 102–484; 50 U.S.C. 1701 note) is amended

by inserting ‘‘to acquire chemical, biological, or nuclear weapons

or’’ before ‘‘to acquire’’.

(b) SANCTIONS AGAINST TRANSFERS OF FOREIGN COUNTRIES.—

Section 1605(a) of such Act is amended by inserting ‘‘to acquire

chemical, biological, or nuclear weapons or’’ before ‘‘to acquire’’.

(c) CLARIFICATION OF UNITED STATES ASSISTANCE.—Subparagraph (A) of section 1608(7) of such Act is amended to read as

follows:

‘‘(A) any assistance under the Foreign Assistance Act

of 1961 (22 U.S.C. 2151 et seq.), other than urgent humanitarian assistance or medicine;’’.

(d) NOTIFICATION OF CERTAIN WAIVERS UNDER MTCR PROCEDURES.—Section 73(e)(2) of the Arms Export Control Act (22 U.S.C.

2797b(e)(2)) is amended—

(1) by striking out ‘‘the Congress’’ and inserting in lieu

thereof ‘‘the Committee on Armed Services and the Committee

on Foreign Relations of the Senate and the Committee on

National Security and the Committee on International Relations of the House of Representatives’’; and

(2) by striking out ‘‘20 working days’’ and inserting in

lieu thereof ‘‘45 working days’’.

50 USC 1701

note.

50 USC 1701

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 495

TITLE XV—TECHNICAL AND CLERICAL

AMENDMENTS

SEC. 1501. AMENDMENTS RELATED TO RESERVE OFFICER PERSONNEL MANAGEMENT ACT.

(a) PUBLIC LAW 103–337.—The Reserve Officer Personnel

Management Act (title XVI of the National Defense Authorization

Act for Fiscal Year 1995 (Public Law 103–337)) is amended as

follows:

(1) Section 1624 (108 Stat. 2961) is amended—

(A) by striking out ‘‘641’’ and all that follows through ‘‘(2)’’ and inserting in lieu thereof ‘‘620 is amended’’; and (B) by redesignating as subsection (d) the subsection

added by the amendment made by that section.

(2) Section 1625 (108 Stat. 2962) is amended by striking

out ‘‘Section 689’’ and inserting in lieu thereof ‘‘Section 12320’’. (3) Section 1626(1) (108 Stat. 2962) is amended by striking out ‘‘(W–5)’’ in the second quoted matter therein and inserting

in lieu thereof ‘‘, W–5,’’.

(4) Section 1627 (108 Stat. 2962) is amended by striking out ‘‘Section 1005(b)’’ and inserting in lieu thereof ‘‘Section

12645(b)’’.

(5) Section 1631 (108 Stat. 2964) is amended—

(A) in subsection (a), by striking out ‘‘Section 510’’

and inserting in lieu thereof ‘‘Section 12102’’; and (B) in subsection (b), by striking out ‘‘Section 591’’

and inserting in lieu thereof ‘‘Section 12201’’.

(6) Section 1632 (108 Stat. 2965) is amended by striking out ‘‘Section 593(a)’’ and inserting in lieu thereof ‘‘Section

12203(a)’’.

(7) Section 1635(a) (108 Stat. 2968) is amended by striking

out ‘‘section 1291’’ and inserting in lieu thereof ‘‘section

1691(b)’’.

(8) Section 1671 (108 Stat. 3013) is amended—

(A) in subsection (b)(3), by striking out ‘‘512, and 517’’

and inserting in lieu thereof ‘‘and 512’’; and

(B) in subsection (c)(2), by striking out the comma

after ‘‘861’’ in the first quoted matter therein.

(9) Section 1684(b) (108 Stat. 3024) is amended by striking

out ‘‘section 14110(d)’’ and inserting in lieu thereof ‘‘section

14111(c)’’.

(b) SUBTITLE E OF TITLE 10.—Subtitle E of title 10, United

States Code, is amended as follows:

(1) The tables of chapters preceding part I and at the

beginning of part IV are amended by striking out ‘‘Repayments’’

in the item relating to chapter 1609 and inserting in lieu

thereof ‘‘Repayment Programs’’.

(2)(A) The heading for section 10103 is amended to read

as follows:

‘‘§ 10103. Basic policy for order into Federal service’’.

(B) The item relating to section 10103 in the table of

sections at the beginning of chapter 1003 is amended to read

as follows:

‘‘10103. Basic policy for order into Federal service.’’.

10 USC 14310

note.

10 USC 113.

10 USC 3853

note.

10 USC 12203.

10 USC 12201.

10 USC 12102.

10 USC 12645.

10 USC 741.

10 USC 12320.

10 USC 620.

110 STAT. 496 PUBLIC LAW 104–106—FEB. 10, 1996

(3) The table of sections at the beginning of chapter 1005

is amended by striking out the third word in the item relating

to section 10142.

(4) The table of sections at the beginning of chapter 1007

is amended—

(A) by striking out the third word in the item relating

to section 10205; and

(B) by capitalizing the initial letter of the sixth word

in the item relating to section 10211.

(5) The table of sections at the beginning of chapter 1011

is amended by inserting ‘‘Sec.’’ at the top of the column of

section numbers.

(6) Section 10507 is amended—

(A) by striking out ‘‘section 124402(b)’’ and inserting

in lieu thereof ‘‘section 12402(b)’’; and

(B) by striking out ‘‘Air Forces’’ and inserting in lieu

thereof ‘‘Air Force’’.

(7)(A) Section 10508 is repealed.

(B) The table of sections at the beginning of chapter 1011

is amended by striking out the item relating to section 10508.

(8) Section 10542 is amended by striking out subsection

(d).

(9) Section 12004(a) is amended by striking out ‘‘activestatus’’ and inserting in lieu thereof ‘‘active status’’.

(10) Section 12012 is amended by inserting ‘‘the’’ in the

section heading before the penultimate word.

(11)(A) The heading for section 12201 is amended to read

as follows:

‘‘§ 12201. Reserve officers: qualifications for appointment’’.

(B) The item relating to that section in the table of sections

at the beginning of chapter 1205 is amended to read as follows:

‘‘12201. Reserve officers: qualifications for appointment.’’.

(12)(A) The heading for section 12209 is amended to read

as follows:

‘‘§ 12209. Officer candidates: enlisted Reserves’’.

(B) The heading for section 12210 is amended to read

as follows:

‘‘§ 12210. Attending Physician to the Congress: reserve grade

while so serving’’.

(13)(A) The headings for sections 12211, 12212, 12213,

and 12214 are amended by inserting ‘‘the’’ after ‘‘National

Guard of’’

(B) The table of sections at the beginning of chapter 1205

is amended by inserting ‘‘the’’ in the items relating to sections

12211, 12212, 12213, and 12214 after ‘‘National Guard of’’.

(14) Section 12213(a) is amended by striking out ‘‘section

593’’ and inserting in lieu thereof ‘‘section 12203’’.

(15) The table of sections at the beginning of chapter 1207

is amended by striking out ‘‘promotions’’ in the item relating

to section 12243 and inserting in lieu thereof ‘‘promotion’’.

(16) The table of sections at the beginning of chapter 1209

is amended—

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 497

(A) in the item relating to section 12304, by striking

out the colon and inserting in lieu thereof a semicolon;

and

(B) in the item relating to section 12308, by striking

out the second, third, and fourth words.

(17) Section 12307 is amended by striking out ‘‘Ready

Reserve’’ in the second sentence and inserting in lieu thereof

‘‘Retired Reserve’’.

(18)(A) The table of sections at the beginning of chapter

1211 is amended by inserting ‘‘the’’ in the items relating to

sections 12401, 12402, 12403, and 12404 after ‘‘Army and Air

National Guard of’’.

(B) The headings for sections 12402, 12403, and 12404

are amended by inserting ‘‘the’’ after ‘‘Army and Air National

Guard of’’

(19) Section 12407(b) is amended—

(A) by striking out ‘‘of those jurisdictions’’ and inserting

in lieu thereof ‘‘State’’; and

(B) by striking out ‘‘jurisdictions’’ and inserting in lieu

thereof ‘‘States’’.

(20) Section 12731(f) is amended by striking out ‘‘the date

of the enactment of this subsection’’ and inserting in lieu thereof

‘‘October 5, 1994,’’.

(21) Section 12731a(c)(3) is amended by inserting a comma

after ‘‘Defense Conversion’’.

(22) Section 14003 is amended by inserting ‘‘lists’’ in the

section heading immediately before the colon.

(23) The table of sections at the beginning of chapter 1403

is amended by striking out ‘‘selection board’’ in the item relating

to section 14105 and inserting in lieu thereof ‘‘promotion board’’.

(24) The table of sections at the beginning of chapter 1405

is amended—

(A) in the item relating to section 14307, by striking

out ‘‘Numbers’’ and inserting in lieu thereof ‘‘Number’’;

(B) in the item relating to section 14309, by striking

out the colon and inserting in lieu thereof a semicolon;

and

(C) in the item relating to section 14314, by capitalizing

the initial letter of the antepenultimate word.

(25) Section 14315(a) is amended by striking out ‘‘a Reserve

officer’’ and inserting in lieu thereof ‘‘a reserve officer’’.

(26) Section 14317(e) is amended—

(A) by inserting ‘‘OFFICERS ORDERED TO ACTIVE DUTY

IN TIME OF WAR OR NATIONAL EMERGENCY.—’’ after ‘‘(e)’’;

and

(B) by striking out ‘‘section 10213 or 644’’ and inserting

in lieu thereof ‘‘section 123 or 10213’’.

(27) The table of sections at the beginning of chapter 1407

is amended—

(A) in the item relating to section 14506, by inserting

‘‘reserve’’ after ‘‘Marine Corps and’’; and

(B) in the item relating to section 14507, by inserting

‘‘reserve’’ after ‘‘Removal from the’’; and

(C) in the item relating to section 14509, by inserting

‘‘in grades’’ after ‘‘reserve officers’’.

110 STAT. 498 PUBLIC LAW 104–106—FEB. 10, 1996

(28) Section 14501(a) is amended by inserting ‘‘OFFICERS

BELOW THE GRADE OF COLONEL OR NAVY CAPTAIN.—’’ after

‘‘(a)’’.

(29) The heading for section 14506 is amended by inserting

a comma after ‘‘Air Force’’.

(30) Section 14508 is amended by striking out ‘‘this’’ after

‘‘from an active status under’’ in subsections (c) and (d).

(31) Section 14515 is amended by striking out ‘‘inactive

status’’ and inserting in lieu thereof ‘‘inactive-status’’.

(32) Section 14903(b) is amended by striking out ‘‘chapter’’

and inserting in lieu thereof ‘‘title’’.

(33) The table of sections at the beginning of chapter 1606

is amended in the item relating to section 16133 by striking

out ‘‘limitations’’ and inserting in lieu thereof ‘‘limitation’’.

(34) Section 16132(c) is amended by striking out ‘‘section’’

and inserting in lieu thereof ‘‘sections’’.

(35) Section 16135(b)(1)(A) is amended by striking out ‘‘section 2131(a)’’ and inserting in lieu thereof ‘‘section 16131(a)’’.

(36) Section 18236(b)(1) is amended by striking out ‘‘section

2233(e)’’ and inserting in lieu thereof ‘‘section 18233(e)’’.

(37) Section 18237 is amended—

(A) in subsection (a), by striking out ‘‘section

2233(a)(1)’’ and inserting in lieu thereof ‘‘section

18233(a)(1)’’; and

(B) in subsection (b), by striking out ‘‘section 2233(a)’’

and inserting in lieu thereof ‘‘section 18233(a)’’.

(c) OTHER PROVISIONS OF TITLE 10.—Effective as of December

1, 1994 (except as otherwise expressly provided), and as if included

as amendments made by the Reserve Officer Personnel Management Act (title XVI of Public Law 103–360) as originally enacted,

title 10, United States Code, is amended as follows:

(1) Section 101(d)(6)(B)(i) is amended by striking out ‘‘section 175’’ and inserting in lieu thereof ‘‘section 10301’’.

(2) Section 114(b) is amended by striking out ‘‘chapter

133’’ and inserting in lieu thereof ‘‘chapter 1803’’.

(3) Section 115(d) is amended—

(A) in paragraph (1), by striking out ‘‘section 673’’

and inserting in lieu thereof ‘‘section 12302’’;

(B) in paragraph (2), by striking out ‘‘section 673b’’

and inserting in lieu thereof ‘‘section 12304’’; and

(C) in paragraph (3), by striking out ‘‘section 3500

or 8500’’ and inserting in lieu thereof ‘‘section 12406’’.

(4) Section 123(a) is amended—

(A) by striking out ‘‘281, 592, 1002, 1005, 1006, 1007,

1374, 3217, 3218, 3219, 3220, 3352(a) (last sentence),’’,

‘‘5414, 5457, 5458, 5506,’’, and ‘‘8217, 8218, 8219,’’; and

(B) by striking out ‘‘and 8855’’ and inserting in lieu

thereof ‘‘8855, 10214, 12003, 12004, 12005, 12007, 12202,

12213(a) (second sentence), 12642, 12645, 12646, 12647,

12771, 12772, and 12773’’.

(5) Section 582(1) is amended by striking out ‘‘section

672(d)’’ in subparagraph (B) and ‘‘section 673b’’ in subparagraph

(D) and inserting in lieu thereof ‘‘section 12301(d)’’ and ‘‘section

12304’’, respectively.

(6) Section 641(1)(B) is amended by striking out ‘‘10501’’

and inserting in lieu thereof ‘‘10502, 10505, 10506(a), 10506(b),

10507’’.

Effective date.

10 USC 101 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 499

(7) The table of sections at the beginning of chapter 39

is amended by striking out the items relating to sections 687

and 690.

(8) Sections 1053(a)(1) and 1064 are amended by striking

out ‘‘chapter 67’’ and inserting in lieu thereof ‘‘chapter 1223’’.

(9) Section 1063(a)(1) is amended by striking out ‘‘section

1332(a)(2)’’ and inserting in lieu thereof ‘‘section 12732(a)(2)’’.

(10) Section 1074b(b)(2) is amended by striking out ‘‘section

673c’’ and inserting in lieu thereof ‘‘section 12305’’.

(11) Section 1076(b)(2)(A) is amended by striking out

‘‘before the effective date of the Reserve Officer Personnel

Management Act’’ and inserting in lieu thereof ‘‘before December 1, 1994’’.

(12) Section 1176(b) is amended by striking out ‘‘section

1332’’ in the matter preceding paragraph (1) and in paragraphs

(1) and (2) and inserting in lieu thereof ‘‘section 12732’’.

(13) Section 1208(b) is amended by striking out ‘‘section

1333’’ and inserting in lieu thereof ‘‘section 12733’’.

(14) Section 1209 is amended by striking out ‘‘section 1332’’,

‘‘section 1335’’, and ‘‘chapter 71’’ and inserting in lieu thereof

‘‘section 12732’’, ‘‘section 12735’’, and ‘‘section 12739’’, respectively.

(15) Section 1407 is amended—

(A) in subsection (c)(1) and (d)(1), by striking out ‘‘section 1331’’ and inserting in lieu thereof ‘‘section 12731’’;

and

(B) in the heading for paragraph (1) of subsection

(d), by striking out ‘‘CHAPTER 67’’ and inserting in lieu

thereof ‘‘CHAPTER 1223’’.

(16) Section 1408(a)(5) is amended by striking out ‘‘section

1331’’ and inserting in lieu thereof ‘‘section 12731’’.

(17) Section 1431(a)(1) is amended by striking out ‘‘section

1376(a)’’ and inserting in lieu thereof ‘‘section 12774(a)’’.

(18) Section 1463(a)(2) is amended by striking out ‘‘chapter

67’’ and inserting in lieu thereof ‘‘chapter 1223’’.

(19) Section 1482(f)(2) is amended by inserting ‘‘section’’

before ‘‘12731 of this title’’.

(20) The table of sections at the beginning of chapter 533

is amended by striking out the item relating to section 5454.

(21) Section 2006(b)(1) is amended by striking out ‘‘chapter

106 of this title’’ and inserting in lieu thereof ‘‘chapter 1606

of this title’’.

(22) Section 2121(c) is amended by striking out ‘‘section

3353, 5600, or 8353’’ and inserting in lieu thereof ‘‘section

12207’’, effective on the effective date specified in section

1691(b)(1) of Public Law 103–337.

(23) Section 2130a(b)(3) is amended by striking out ‘‘section

591’’ and inserting in lieu thereof ‘‘section 12201’’.

(24) The table of sections at the beginning of chapter 337

is amended by striking out the items relating to section 3351

and 3352.

(25) Sections 3850, 6389(c), 6391(c), and 8850 are amended

by striking out ‘‘section 1332’’ and inserting in lieu thereof

‘‘section 12732’’.

(26) Section 5600 is repealed, effective on the effective

date specified in section 1691(b)(1) of Public Law 103–337.

Effective date.

Effective date.

110 STAT. 500 PUBLIC LAW 104–106—FEB. 10, 1996

(27) Section 5892 is amended by striking out ‘‘section 5457

or section 5458’’ and inserting in lieu thereof ‘‘section 12004

or section 12005’’.

(28) Section 6410(a) is amended by striking out ‘‘section

1005’’ and inserting in lieu thereof ‘‘section 12645’’.

(29) The table of sections at the beginning of chapter 837

is amended by striking out the items relating to section 8351

and 8352.

(30) Section 8360(b) is amended by striking out ‘‘section

1002’’ and inserting in lieu thereof ‘‘section 12642’’.

(31) Section 8380 is amended by striking out ‘‘section 524’’

in subsections (a) and (b) and inserting in lieu thereof ‘‘section

12011’’.

(32) Sections 8819(a), 8846(a), and 8846(b) are amended

by striking out ‘‘sections 1005 and 1006’’ and inserting in lieu

thereof ‘‘sections 12645 and 12646’’.

(33) Section 8819 is amended by striking out ‘‘section 1005’’

and ‘‘section 1006’’ and inserting in lieu thereof ‘‘section 12645’’

and ‘‘section 12646’’, respectively.

(d) CROSS REFERENCES IN OTHER DEFENSE LAWS.—

(1) Section 337(b) of the National Defense Authorization

Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2717)

is amended by inserting before the period at the end the following: ‘‘or who after November 30, 1994, transferred to the Retired

Reserve under section 10154(2) of title 10, United States Code,

without having completed the years of service required under

section 12731(a)(2) of such title for eligibility for retired pay

under chapter 1223 of such title’’.

(2) Section 525 of the National Defense Authorization Act

for Fiscal Years 1992 and 1993 (Public Law 102–190, 105

Stat. 1363) is amended by striking out ‘‘section 690’’ and inserting in lieu thereof ‘‘section 12321’’.

(3) Subtitle B of title XLIV of the National Defense

Authorization Act for Fiscal Year 1993 (Public Law 102–484;

10 U.S.C. 12681 note) is amended—

(A) in section 4415, by striking out ‘‘section 1331a’’

and inserting in lieu thereof ‘‘section 12731a’’;

(B) in subsection 4416—

(i) in subsection (a), by striking out ‘‘section 1331’’

and inserting in lieu thereof ‘‘section 12731’’;

(ii) in subsection (b)—

(I) by inserting ‘‘or section 12732’’ in paragraph (1) after ‘‘under that section’’; and

(II) by inserting ‘‘or 12731(a)’’ in paragraph

(2) after ‘‘section 1331(a)’’;

(iii) in subsection (e)(2), by striking out ‘‘section

1332’’ and inserting in lieu thereof ‘‘section 12732’’;

and

(iv) in subsection (g), by striking out ‘‘section

1331a’’ and inserting in lieu thereof ‘‘section 12731a’’;

and

(C) in section 4418—

(i) in subsection (a), by striking out ‘‘section 1332’’

and inserting in lieu thereof ‘‘section 12732’’; and

(ii) in subsection (b)(1)(A), by striking out ‘‘section

1333’’ and inserting in lieu thereof ‘‘section 12733’’.

(4) Title 37, United States Code, is amended—

106 Stat. 2717.

106 Stat. 2714.

106 Stat. 2714.

10 USC 12321

note.

10 USC 2466

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 501

(A) in section 302f(b), by striking out ‘‘section 673c

of title 10’’ in paragraphs (2) and (3)(A) and inserting

in lieu thereof ‘‘section 12305 of title 10’’; and

(B) in section 433(a), by striking out ‘‘section 687 of

title 10’’ and inserting in lieu thereof ‘‘section 12319 of

title 10’’.

(e) CROSS REFERENCES IN OTHER LAWS.—

(1) Title 14, United States Code, is amended—

(A) in section 705(f), by striking out ‘‘600 of title 10’’

and inserting in lieu thereof ‘‘12209 of title 10’’; and

(B) in section 741(c), by striking out ‘‘section 1006

of title 10’’ and inserting in lieu thereof ‘‘section 12646

of title 10’’.

(2) Title 38, United States Code, is amended—

(A) in section 3011(d)(3), by striking out ‘‘section 672,

673, 673b, 674, or 675 of title 10’’ and inserting in lieu

thereof ‘‘section 12301, 12302, 12304, 12306, or 12307 of

title 10’’;

(B) in sections 3012(b)(1)(B)(iii) and 3701(b)(5)(B), by

striking out ‘‘section 268(b) of title 10’’ and inserting in

lieu thereof ‘‘section 10143(a) of title 10’’;

(C) in section 3501(a)(3)(C), by striking out ‘‘section

511(d) of title 10’’ and inserting in lieu thereof ‘‘section

12103(d) of title 10’’; and

(D) in section 4211(4)(C), by striking out ‘‘section

672(a), (d), or (g), 673, or 673b of title 10’’ and inserting

in lieu thereof ‘‘section 12301(a), (d), or (g), 12302, or 12304

of title 10’’.

(3) Section 702(a)(1) of the Soldiers’ and Sailors’ Civil Relief

Act of 1940 (50 U.S.C. App. 592(a)(1)) is amended—

(A) by striking out ‘‘section 672 (a) or (g), 673, 673b,

674, 675, or 688 of title 10’’ and inserting in lieu thereof

‘‘section 688, 12301(a), 12301(g), 12302, 12304, 12306, or

12307 of title 10’’; and

(B) by striking out ‘‘section 672(d) of such title’’ and

inserting in lieu thereof ‘‘section 12301(d) of such title’’.

(4) Section 463A of the Higher Education Act of 1965

(20 U.S.C. 1087cc–1) is amended in subsection (a)(10) by striking out ‘‘(10 U.S.C. 2172)’’ and inserting in lieu thereof ‘‘(10

U.S.C. 16302)’’.

(5) Section 179 of the National and Community Service

Act of 1990 (42 U.S.C. 12639) is amended in subsection (a)(2)(C)

by striking out ‘‘section 216(a) of title 5’’ and inserting in

lieu thereof ‘‘section 10101 of title 10’’.

(f) EFFECTIVE DATES.—

(1) Section 1636 of the Reserve Officer Personnel Management Act shall take effect on the date of the enactment of

this Act.

(2) The amendments made by sections 1672(a), 1673(a)

(with respect to chapters 541 and 549), 1673(b)(2), 1673(b)(4),

1674(a), and 1674(b)(7) shall take effect on the effective date

specified in section 1691(b)(1) of the Reserve Officer Personnel

Management Act (notwithstanding section 1691(a) of such Act).

(3) The amendments made by this section shall take effect

as if included in the Reserve Officer Personnel Management

Act as enacted on October 5, 1994.

10 USC 113 note.

10 USC 10001

note.

10 USC 12213

note.

110 STAT. 502 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 1502. AMENDMENTS TO REFLECT NAME CHANGE OF COMMITTEE

ON ARMED SERVICES OF THE HOUSE OF REPRESENTATIVES.

(a) TITLE 10, UNITED STATES CODE.—Title 10, United States

Code, is amended as follows:

(1) Sections 503(b)(5), 520a(d), 526(d)(1), 619a(h)(2),

806a(b), 838(b)(7), 946(c)(1)(A), 1098(b)(2), 2313(b)(4),

2361(c)(1), 2371(h), 2391(c), 2430(b), 2432(b)(3)(B), 2432(c)(2),

2432(h)(1), 2667(d)(3), 2672a(b), 2687(b)(1), 4342(g),

7307(b)(1)(A), and 9342(g) are amended by striking out ‘‘Committees on Armed Services of the Senate and House of Representatives’’ and inserting in lieu thereof ‘‘Committee on

Armed Services of the Senate and the Committee on National

Security of the House of Representatives’’. (2) Sections 178(c)(1)(A), 942(e)(5), 2350f(c), 7426(e),

7431(a), 7431(b)(1), 7431(c), 7438(b), 12302(b), 18235(a), and

18236(a) are amended by striking out ‘‘Committees on Armed

Services of the Senate and the House of Representatives’’ and

inserting in lieu thereof ‘‘Committee on Armed Services of

the Senate and the Committee on National Security of the

House of Representatives’’.

(3) Section 113(j)(1) is amended by striking out ‘‘Committees on Armed Services and Committees on Appropriations

of the Senate and’’ and inserting in lieu thereof ‘‘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’’.

(4) Section 119(g) is amended by striking out paragraphs

(1) and (2) and inserting in lieu thereof the following:

‘‘(1) the Committee on Armed Services and the Committee

on Appropriations, and the Defense Subcommittee of the

Committee on Appropriations, of the Senate; and

‘‘(2) the Committee on National Security and the Committee

on Appropriations, and the National Security Subcommittee

of the Committee on Appropriations, of the House of Representatives.’’.

(5) Section 127(c) is amended by striking out ‘‘Committees

on Armed Services and Appropriations of the Senate and’’ and

inserting in lieu thereof ‘‘Committee on Armed Services and

the Committee on Appropriations of the Senate and the

Committee on National Security and the Committee on Appropriations of’’.

(6) Section 135(e) is amended—

(A) by inserting ‘‘(1)’’ after ‘‘(e)’’;

(B) by striking out ‘‘the Committees on Armed Services

and the Committees on Appropriations of the Senate and

House of Representatives are each’’ and inserting in lieu

thereof ‘‘each congressional committee specified in paragraph (2) is’’; and

(C) by adding at the end the following:

‘‘(2) The committees referred to in paragraph (1) 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.’’.

(7) Section 179(e) is amended by striking out ‘‘to the

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PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 503

ate and’’ and inserting in lieu thereof ‘‘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’’.

(8) Sections 401(d) and 402(d) are amended by striking

out ‘‘submit to the’’ and all that follows through ‘‘Foreign

Affairs’’ and inserting in lieu thereof ‘‘submit to the Committee

on Armed Services and the Committee on Foreign Relations

of the Senate and the Committee on National Security and

the Committee on International Relations’’.

(9) Section 2367(d)(2) is amended by striking out ‘‘the

Committees on Armed Services and the Committees on Appropriations of the Senate and’’ and inserting in lieu thereof ‘‘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’’.

(10) Sections 2306b(g), 2801(c)(4), and 18233a(a)(1) are

amended by striking out ‘‘the Committees on Armed Services

and on Appropriations of the Senate and’’ and inserting in

lieu thereof ‘‘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’’.

(11) Section 1599(e)(2) is amended—

(A) in subparagraph (A), by striking out ‘‘The Committees on Armed Services and Appropriations’’ and inserting

in lieu thereof ‘‘The Committee on National Security, the

Committee on Appropriations,’’; and

(B) in subparagraph (B), by striking out ‘‘The Committees on Armed Services and Appropriations’’ and inserting

in lieu thereof ‘‘The Committee on Armed Services, the

Committee on Appropriations,’’.

(12) Sections 4355(a)(3), 6968(a)(3), and 9355(a)(3) are

amended by striking out ‘‘Armed Services’’ and inserting in

lieu thereof ‘‘National Security’’.

(13) Section 1060(d) is amended by striking out ‘‘Committee

on Armed Services and the Committee on Foreign Affairs’’

and inserting in lieu thereof ‘‘Committee on National Security

and the Committee on International Relations’’.

(14) Section 2215 is amended—

(A) by inserting ‘‘(a) CERTIFICATION REQUIRED.—’’ at

the beginning of the text of the section;

(B) by striking out ‘‘to the Committees’’ and all that

follows through ‘‘House of Representatives’’ and inserting

in lieu thereof ‘‘to the congressional committees specified

in subsection (b)’’; and

(C) by adding at the end the following:

‘‘(b) CONGRESSIONAL COMMITTEES.—The committees referred to

in subsection (a) 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.’’.

(15) Section 2218 is amended—

(A) in subsection (j), by striking out ‘‘the Committees

on Armed Services and on Appropriations of the Senate

110 STAT. 504 PUBLIC LAW 104–106—FEB. 10, 1996

and the House of Representatives’’ and inserting in lieu

thereof ‘‘the congressional defense committees’’; and

(B) by adding at the end of subsection (k) the following

new paragraph:

‘‘(4) The term ‘congressional defense committees’ means—

‘‘(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.’’.

(16) Section 2342(b) is amended—

(A) in the matter preceding paragraph (1), by striking

out ‘‘section—’’ and inserting in lieu thereof ‘‘section

unless—’’;

(B) in paragraph (1), by striking out ‘‘unless’’; and

(C) in paragraph (2), by striking out ‘‘notifies the’’

and all that follows through ‘‘House of Representatives’’

and inserting in lieu thereof ‘‘the Secretary submits to

the Committee on Armed Services and the Committee on

Foreign Relations of the Senate and the Committee on

National Security and the Committee on International

Relations of the House of Representatives notice of the

intended designation’’.

(17) Section 2350a(f)(2) is amended by striking out ‘‘submit

to the Committees’’ and all that follows through ‘‘House of

Representatives’’ and inserting in lieu thereof ‘‘submit to the

Committee on Armed Services and the Committee on Foreign

Relations of the Senate and the Committee on National Security

and the Committee on International Relations of the House

of Representatives’’.

(18) Section 2366 is amended—

(A) in subsection (d), by striking out ‘‘the Committees

on Armed Services and on Appropriations of the Senate

and House of Representatives’’ and inserting in lieu thereof

‘‘the congressional defense committees’’; and

(B) by adding at the end of subsection (e) the following

new paragraph:

‘‘(7) The term ‘congressional defense committees’ means—

‘‘(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.’’.

(19) Section 2399(h)(2) is amended by striking out ‘‘means’’

and all the follows and inserting in lieu thereof the following:

‘‘means—

‘‘(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.’’.

(20) Section 2401(b)(1) is amended—

(A) in subparagraph (B), by striking out ‘‘the Committees on Armed Services and on Appropriations of the Senate

and’’ and inserting in lieu thereof ‘‘the Committee on Armed

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PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 505

ate and the Committee on National Security and the

Committees on Appropriations of the’’; and

(B) in subparagraph (C), by striking out ‘‘the Committees on Armed Services and on Appropriations of the Senate

and House of Representatives’’ and inserting in lieu thereof

‘‘those committees’’.

(21) Section 2403(e) is amended—

(A) by inserting ‘‘(1)’’ before ‘‘Before making’’;

(B) by striking out ‘‘shall notify the Committees on

Armed Services and on Appropriations of the Senate and

House of Representatives’’ and inserting in lieu thereof

‘‘shall submit to the congressional committees specified in

paragraph (2) notice’’; and

(C) by adding at the end the following new paragraph:

‘‘(2) The committees referred to in paragraph (1) 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.’’.

(22) Section 2515(d) is amended—

(A) by striking out ‘‘REPORTING’’ and all that follows

through ‘‘same time’’ and inserting in lieu thereof ‘‘ANNUAL

REPORT.—(1) The Secretary of Defense shall submit to the

congressional committees specified in paragraph (2) an

annual report on the activities of the Office. The report

shall be submitted each year at the same time’’; and

(B) by adding at the end the following new paragraph:

‘‘(2) The committees referred to in paragraph (1) 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.’’.

(23) Section 2662 is amended—

(A) in subsection (a)—

(i) in the matter preceding paragraph (1), by striking out ‘‘the Committees on Armed Services of the

Senate and House of Representatives’’ and inserting

in lieu thereof ‘‘the Committee on Armed Services of

the Senate and the Committee on National Security

of the House of Representatives’’; and

(ii) in the matter following paragraph (6), by striking out ‘‘to be submitted to the Committees on Armed

Services of the Senate and House of Representatives’’;

(B) in subsection (b), by striking out ‘‘shall report

annually to the Committees on Armed Services of the Senate and the House of Representatives’’ and inserting in

lieu thereof ‘‘shall submit annually to the congressional

committees named in subsection (a) a report’’;

(C) in subsection (e), by striking out ‘‘the Committees

on Armed Services of the Senate and the House of Representatives’’ and inserting in lieu thereof ‘‘the congressional committees named in subsection (a)’’; and

(D) in subsection (f), by striking out ‘‘the Committees

on Armed Services of the Senate and the House of Representatives shall’’ and inserting in lieu thereof ‘‘the

congressional committees named in subsection (a) shall’’.

(24) Section 2674(a) is amended—

110 STAT. 506 PUBLIC LAW 104–106—FEB. 10, 1996

(A) in paragraph (2), by striking out ‘‘Committees on Armed Services of the Senate and the House of Representatives, the Committee on Environment and Public Works

of the Senate, and the Committee on Public Works and

Transportation of the House of Representatives’’ and inserting in lieu thereof ‘‘congressional committees specified in

paragraph (3)’’; and (B) by adding at the end the following new paragraph: ‘‘(3) The committees referred to in paragraph (2) are— ‘‘(A) the Committee on Armed Services and the Committee

on Environment and Public Works of the Senate; and

‘‘(B) the Committee on National Security and the Commit- tee on Transportation and Infrastructure of the House of Representatives.’’.

(25) Section 2813(c) is amended by striking out ‘‘Commit- tees on Armed Services and the Committees on Appropriations

of the Senate and House of Representatives’’ and inserting

in lieu thereof ‘‘appropriate committees of Congress’’. (26) Sections 2825(b)(1) and 2832(b)(2) are amended by striking out ‘‘Committees on Armed Services and the Committees on Appropriations of the Senate and of the House of

Representatives’’ and inserting in lieu thereof ‘‘appropriate

committees of Congress’’. (27) Section 2865(e)(2) and 2866(c)(2) are amended by strik- ing out ‘‘Committees on Armed Services and Appropriations

of the Senate and House of Representatives’’ and inserting

in lieu thereof ‘‘appropriate committees of Congress’’.

(28)(A) Section 7434 of such title is amended to read as

follows:

‘‘§ 7434. Annual report to congressional committees

‘‘Not later than October 31 of each year, 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 production from the naval petroleum reserves during

the preceding calendar year.’’.

(B) The item relating to such section in the table of contents

at the beginning of chapter 641 is amended to read as follows:

‘‘7434. Annual report to congressional committees.’’.

(b) TITLE 37, UNITED STATES CODE.—Sections 301b(i)(2) and

406(i) of title 37, United States Code, are amended by striking

out ‘‘Committees on Armed Services of the Senate and House of

Representatives’’ and inserting in lieu thereof ‘‘Committee on Armed

Services of the Senate and the Committee on National Security

of the House of Representatives’’.

(c) ANNUAL DEFENSE AUTHORIZATION ACTS.—

(1) The National Defense Authorization Act for Fiscal Year

1994 (Public Law 103–160) is amended in sections 2922(b)

and 2925(b) (10 U.S.C. 2687 note) by striking out ‘‘Committees

on Armed Services of the Senate and House of Representatives’’

and inserting in lieu thereof ‘‘Committee on Armed Services

of the Senate and the Committee on National Security of the

House of Representatives’’.

(2) The National Defense Authorization Act for Fiscal Year

1993 (Public Law 102–484) is amended—

(A) in section 326(a)(5) (10 U.S.C. 2301 note) and section 1304(a) (10 U.S.C. 113 note), by striking out ‘‘Com10 USC 2302

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 507

mittees on Armed Services of the Senate and House of

Representatives’’ and inserting in lieu thereof ‘‘Committee

on Armed Services of the Senate and the Committee on

National Security of the House of Representatives’’; and

(B) in section 1505(e)(2)(B) (22 U.S.C. 5859a), by striking out ‘‘the Committee on Armed Services, the Committee

on Appropriations, the Committee on Foreign Affairs, and

the Committee on Energy and Commerce’’ and inserting

in lieu thereof ‘‘the Committee on National Security, the

Committee on Appropriations, the Committee on International Relations, and the Committee on Commerce’’.

(3) Section 1097(a)(1) of the National Defense Authorization

Act for Fiscal Years 1992 and 1993 (Public Law 102–190; 22

U.S.C. 2751 note) is amended by striking out ‘‘the Committees

on Armed Services and Foreign Affairs’’ and inserting in lieu

thereof ‘‘the Committee on National Security and the Committee on International Relations’’.

(4) The National Defense Authorization Act for Fiscal Year

1991 (Public Law 101–510) is amended as follows:

(A) Section 402(a) and section 1208(b)(3) (10 U.S.C.

1701 note) are amended by striking out ‘‘Committees on

Armed Services of the Senate and the House of Representatives’’ and inserting in lieu thereof ‘‘Committee on Armed

Services of the Senate and the Committee on National

Security of the House of Representatives’’.

(B) Section 1403 (50 U.S.C. 404b) is amended—

(i) in subsection (a), by striking out ‘‘the Committees on’’ and all that follows through ‘‘each year’’ and

inserting in lieu thereof ‘‘the congressional committees

specified in subsection (d) each year’’; and

(ii) by adding at the end the following new subsection:

‘‘(d) SPECIFIED CONGRESSIONAL COMMITTEES.—The congressional committees referred to in subsection (a) are the following:

‘‘(1) The Committee on Armed Services, the Committee

on Appropriations, and the Select Committee on Intelligence

of the Senate.

‘‘(2) The Committee on National Security, the Committee

on Appropriations, and the Permanent Select Committee on

Intelligence of the House of Representatives.’’.

(C) Section 1457 (50 U.S.C. 404c) is amended—

(i) in subsection (a), by striking out ‘‘shall submit

to the’’ and all that follows through ‘‘each year’’ and

inserting in lieu thereof ‘‘shall submit to the congressional committees specified in subsection (d) each

year’’;

(ii) in subsection (c)—

(I) by striking out ‘‘(1) Except as provided in

paragraph (2), the President’’ and inserting in lieu

thereof ‘‘The President’’; and

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

(iii) by adding at the end the following new subsection:

‘‘(d) SPECIFIED CONGRESSIONAL COMMITTEES.—The congressional committees referred to in subsection (a) are the following:

‘‘(1) The Committee on Armed Services and the Committee

on Foreign Relations of the Senate.

10 USC 115 note.

110 STAT. 508 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(2) The Committee on National Security and the Committee on International Relations of the House of Representatives.’’.

(D) Section 2921 (10 U.S.C. 2687 note) is amended—

(i) in subsection (e)(3)(A), by striking out ‘‘the

Committee on Armed Services, the Committee on

Appropriations, and the Defense Subcommittees’’ and

inserting in lieu thereof ‘‘the Committee on National

Security, the Committee on Appropriations, and the

National Security Subcommittee’’; and

(ii) in subsection (g)(2), by striking out ‘‘the

Committee on Armed Services of the Senate and House

of Representatives’’ and inserting in lieu thereof ‘‘the

Committee on Armed Services of the Senate and the

Committee on National Security of the House of Representatives’’.

(5) Section 613(h)(1) of the National Defense Authorization

Act, Fiscal Year 1989 (Public Law 100–456; 37 U.S.C. 302

note), is amended by striking out ‘‘the Committees on Armed

Services of the Senate and the House of Representatives’’ and

inserting in lieu thereof ‘‘the Committee on Armed Services

of the Senate and the Committee on National Security of the

House of Representatives’’.

(6) Section 1412 of the Department of Defense Authorization Act, 1986 (Public Law 99–145; 50 U.S.C. 1521), is amended

in subsections (b)(4) and (k)(2), by striking out ‘‘Committees

on Armed Services of the Senate and House of Representatives’’

and inserting in lieu thereof ‘‘Committee on Armed Services

of the Senate and the Committee on National Security of the

House of Representatives’’.

(7) Section 1002(d) of the Department of Defense Authorization Act, 1985 (Public Law 98–525; 22 U.S.C. 1928 note), is

amended by striking out ‘‘the Committees on Armed Services

of the Senate and the House of Representatives’’ and inserting

in lieu thereof ‘‘the Committee on Armed Services of the Senate,

the Committee on National Security of the House of Representatives’’.

(8) Section 1252 of the Department of Defense Authorization Act, 1984 (42 U.S.C. 248d), is amended—

(A) in subsection (d), by striking out ‘‘Committees on

Appropriations and on Armed Services of the Senate and

the House of Representatives’’ and inserting in lieu thereof

‘‘Committee on Appropriations and the Committee on

Armed Services of the Senate and the Committee on Appropriations and the Committee on National Security of the

House of Representatives’’; and

(B) in subsection (e), by striking out ‘‘Committees on

Appropriations and on Armed Services of the Senate and

the House of Representatives’’ and inserting in lieu thereof

‘‘congressional committees specified in subsection (d)’’.

(d) BASE CLOSURE LAW.—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 as follows:

(1) Sections 2902(e)(2)(B)(ii) and 2908(b) are amended by

striking out ‘‘Armed Services’’ the first place it appears and

inserting in lieu thereof ‘‘National Security’’.

(2) Section 2910(2) is amended by striking out ‘‘the Committees on Armed Services and the Committees on Appropriations

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 509

of the Senate and of the House of Representatives’’ and inserting in lieu thereof ‘‘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’’.

(e) NATIONAL DEFENSE STOCKPILE.—The Strategic and Critical

Materials Stock Piling Act is amended—

(1) in section 6(d) (50 U.S.C. 98e(d))—

(A) in paragraph (1), by striking out ‘‘Committees on

Armed Services of the Senate and House of Representatives’’ and inserting in lieu thereof ‘‘Committee on Armed

Services of the Senate and the Committee on National

Security of the House of Representatives’’; and

(B) in paragraph (2), by striking out ‘‘the Committees

on Armed Services of the Senate and House of Representatives’’ and inserting in lieu thereof ‘‘such congressional

committees’’; and

(2) in section 7(b) (50 U.S.C. 98f(b)), by striking out

‘‘Committees on Armed Services of the Senate and House of

Representatives’’ and inserting in lieu thereof ‘‘Committee on

Armed Services of the Senate and the Committee on National

Security of the House of Representatives’’.

(f) OTHER DEFENSE-RELATED PROVISIONS.—

(1) Section 8125(g)(2) of the Department of Defense Appropriations Act, 1989 (Public Law 100–463; 10 U.S.C. 113 note),

is amended by striking out ‘‘Committees on Appropriations

and Armed Services of the Senate and House of Representatives’’ and inserting in lieu thereof ‘‘Committee on Appropriations and the Committee on Armed Services of the Senate

and the Committee on Appropriations and the Committee on

National Security of the House of Representatives’’.

(2) Section 9047A of the Department of Defense Appropriations Act, 1993 (Public Law 102–396; 10 U.S.C. 2687 note),

is amended by striking out ‘‘the Committees on Appropriations

and Armed Services of the House of Representatives and the

Senate’’ and inserting in lieu thereof ‘‘the Committee on Appropriations and the Committee on Armed Services of the Senate

and the Committee on Appropriations and the Committee on

National Security of the House of Representatives’’.

(3) Section 3059(c)(1) of the Defense Drug Interdiction

Assistance Act (subtitle A of title III of Public Law 99–570;

10 U.S.C. 9441 note) is amended by striking out ‘‘Committees

on Appropriations and on Armed Services of the Senate and

the House of Representatives’’ and inserting in lieu thereof

‘‘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’’.

(4) Section 7606(b) of the Anti-Drug Abuse Act of 1988

(Public Law 100–690; 10 U.S.C. 9441 note) is amended by

striking out ‘‘Committees on Appropriations and the Committee

on Armed Services of the Senate and the House of Representatives’’ and inserting in lieu thereof ‘‘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’’.

110 STAT. 510 PUBLIC LAW 104–106—FEB. 10, 1996

(5) Section 104(d)(5) of the National Security Act of 1947

(50 U.S.C. 403–4(d)(5)) is amended by striking out ‘‘Committees

on Armed Services of the Senate and House of Representatives’’

and inserting in lieu thereof ‘‘Committee on Armed Services

of the Senate and the Committee on National Security of the

House of Representatives’’.

(6) Section 8 of the Inspector General Act of 1978 (5 U.S.C.

App.) is amended—

(A) in subsection (b)(3), by striking out ‘‘Committees

on Armed Services and Government Operations’’ and

inserting in lieu thereof ‘‘Committee on National Security

and the Committee on Government Reform and Oversight’’;

(B) in subsection (b)(4), by striking out ‘‘Committees

on Armed Services and Governmental Affairs of the Senate

and the Committees on Armed Services and Government

Operations of the House of Representatives’’ and inserting

in lieu thereof ‘‘congressional committees specified in paragraph (3)’’;

(C) in subsection (f)(1), by striking out ‘‘Committees

on Armed Services and Government Operations’’ and

inserting in lieu thereof ‘‘Committee on National Security

and the Committee on Government Reform and Oversight’’;

and

(D) in subsection (f)(2), by striking out ‘‘Committees

on Armed Services and Governmental Affairs of the Senate

and the Committees on Armed Services and Government

Operations of the House of Representatives’’ and inserting

in lieu thereof ‘‘congressional committees specified in paragraph (1)’’.

(7) Section 204(h)(3) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 485(h)(3)) is amended

by striking out ‘‘Committees on Armed Services of the Senate

and of the House of Representatives’’ and inserting in lieu

thereof ‘‘Committee on Armed Services of the Senate and the

Committee on National Security of the House of Representatives’’.

SEC. 1503. MISCELLANEOUS AMENDMENTS TO TITLE 10, UNITED

STATES CODE.

(a) SUBTITLE A.—Subtitle A of title 10, United States Code,

is amended as follows:

(1) Section 113(i)(2)(B) is amended by striking out ‘‘the

five years covered’’ and all that follows through ‘‘section 114(g)’’

and inserting in lieu thereof ‘‘the period covered by the futureyears defense program submitted to Congress during that year

pursuant to section 221’’.

(2) Section 136(c) is amended by striking out ‘‘Comptroller’’

and inserting in lieu thereof ‘‘Under Secretary of Defense

(Comptroller)’’.

(3) Section 526 is amended—

(A) in subsection (a), by striking out paragraphs (1),

(2), and (3) and inserting in lieu thereof the following:

‘‘(1) For the Army, 302.

‘‘(2) For the Navy, 216.

‘‘(3) For the Air Force, 279.’’;

(B) by striking out subsection (b);

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 511

(C) by redesignating subsections (c), (d), and (e) as subsections (b), (c), and (d);

(D) in subsection (b), as so redesignated, by striking

out ‘‘that are applicable on and after October 1, 1995’’;

and

(E) in paragraph (2)(B) of subsection (c), as redesignated by subparagraph (C), is amended—

(i) by striking out ‘‘the’’ after ‘‘in the’’;

(ii) by inserting ‘‘to’’ after ‘‘reserve component, or’’;

and

(iii) by inserting ‘‘than’’ after ‘‘in a grade other’’.

(4) Section 528(a) is amended by striking out ‘‘after September 30, 1995,’’.

(5) Section 573(a)(2) is amended by striking out ‘‘active

duty list’’ and inserting in lieu thereof ‘‘active-duty list’’.

(6) Section 661(d)(2) is amended—

(A) in subparagraph (B), by striking out ‘‘Until January

1, 1994’’ and all that follows through ‘‘each position so

designated’’ and inserting in lieu thereof ‘‘Each position

designated by the Secretary under subparagraph (A)’’;

(B) in subparagraph (C), by striking out ‘‘the second

sentence of’’; and

(C) by striking out subparagraph (D).

(7) Section 706(c)(1) is amended by striking out ‘‘section

4301 of title 38’’ and inserting in lieu thereof ‘‘chapter 43

of title 38’’.

(8) Section 1059 is amended by striking out ‘‘subsection

(j)’’ in subsections (c)(2) and (g)(3) and inserting in lieu thereof

‘‘subsection (k)’’.

(9) Section 1060a(f)(2)(B) is amended by striking out ‘‘(as

defined in section 101(a)(22) of the Immigration and Nationality

Act (8 U.S.C. 1101(a)(22)))’’ and inserting in lieu thereof ‘‘,

as determined in accordance with the Immigration and Nationality Act (8 U.S.C. 1101 et seq.)’’.

(10) Section 1151 is amended—

(A) in subsection (b), by striking out ‘‘(20 U.S.C. 2701

et seq.)’’ in paragraphs (2)(A) and (3)(A) and inserting

in lieu thereof ‘‘(20 U.S.C. 6301 et seq.)’’; and

(B) in subsection (e)(1)(B), by striking out ‘‘not later

than one year after the date of the enactment of the

National Defense Authorization Act for Fiscal Year 1995’’

and inserting in lieu thereof ‘‘not later than October 5,

1995’’.

(11) Section 1152(g)(2) is amended by striking out ‘‘not

later than 180 days after the date of the enactment of the

National Defense Authorization Act for Fiscal Year 1995’’ and

inserting in lieu thereof ‘‘not later than April 3, 1994,’’.

(12) Section 1177(b)(2) is amended by striking out ‘‘provison

of law’’ and inserting in lieu thereof ‘‘provision of law’’.

(13) The heading for chapter 67 is amended by striking

out ‘‘NONREGULAR’’ and inserting in lieu thereof ‘‘NONREGULAR’’.

(14) Section 1598(a)(2)(A) is amended by striking out ‘‘2701’’

and inserting in lieu thereof ‘‘6301’’.

(15) Section 1745(a) is amended by striking out ‘‘section

4107(d)’’ both places it appears and inserting in lieu thereof

‘‘section 4107(b)’’.

110 STAT. 512 PUBLIC LAW 104–106—FEB. 10, 1996

(16) Section 1746(a) is amended—

(A) by striking out ‘‘(1)’’ before ‘‘The Secretary of

Defense’’; and

(B) by redesignating subparagraphs (A) and (B) as

paragraphs (1) and (2), respectively.

(17) Section 2006(b)(2)(B)(ii) is amended by striking out

‘‘section 1412 of such title’’ and inserting in lieu thereof ‘‘section

3012 of such title’’.

(18) Section 2011(a) is amended by striking out ‘‘TO’’ and

inserting in lieu thereof ‘‘TO’’.

(19) Section 2194(e) is amended by striking out ‘‘(20 U.S.C.

2891(12))’’ and inserting in lieu thereof ‘‘(20 U.S.C. 8801)’’.

(20) Sections 2217(b) and 2220(a)(2) are amended by striking out ‘‘Comptroller of the Department of Defense’’ and inserting in lieu thereof ‘‘Under Secretary of Defense (Comptroller)’’.

(21) Section 2401(c)(2) is amended by striking out ‘‘pursuant to’’ and all that follows through ‘‘September 24, 1983,’’.

(22) Section 2410f(b) is amended by striking out ‘‘For purposes of’’ and inserting in lieu thereof ‘‘In’’.

(23) Section 2410j(a)(2)(A) is amended by striking out

‘‘2701’’ and inserting in lieu thereof ‘‘6301’’.

(24) Section 2457(e) is amended by striking out ‘‘title III

of the Act of March 3, 1933 (41 U.S.C. 10a),’’ and inserting

in lieu thereof ‘‘the Buy American Act (41 U.S.C. 10a)’’.

(25) Section 2465(b)(3) is amended by striking out ‘‘under

contract’’ and all that follows through the period and inserting

in lieu thereof ‘‘under contract on September 24, 1983.’’.

(26) Section 2471(b) is amended—

(A) in paragraph (2), by inserting ‘‘by’’ after ‘‘as determined’’; and

(B) in paragraph (3), by inserting ‘‘of’’ after ‘‘arising

out’’.

(27) Section 2524(e)(4)(B) is amended by inserting a comma

before ‘‘with respect to’’.

(28) The heading of section 2525 is amended by capitalizing

the initial letter of the second, fourth, and fifth words.

(29) Chapter 152 is amended by striking out the table

of subchapters at the beginning and the headings for subchapters I and II.

(30) Section 2534(c) is amended by capitalizing the initial

letter of the third and fourth words of the subsection heading.

(31) The table of sections at the beginning of subchapter

I of chapter 169 is amended by adding a period at the end

of the item relating to section 2811.

(b) OTHER SUBTITLES.—Subtitles B, C, and D of title 10, United

States Code, are amended as follows:

(1) Sections 3022(a)(1), 5025(a)(1), and 8022(a)(1) are

amended by striking out ‘‘Comptroller of the Department of

Defense’’ and inserting in lieu thereof ‘‘Under Secretary of

Defense (Comptroller)’’.

(2) Section 6241 is amended by inserting ‘‘or’’ at the end

of paragraph (2).

(3) Section 6333(a) is amended by striking out the first

period after ‘‘section 1405’’ in formula C in the table under

the column designated ‘‘Column 2’’.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 513

(4) The item relating to section 7428 in the table of sections

at the beginning of chapter 641 is amended by striking out

‘‘Agreement’’ and inserting in lieu thereof ‘‘Agreements’’.

(5) The item relating to section 7577 in the table of sections

at the beginning of chapter 649 is amended by striking out

‘‘Officers’’ and inserting in lieu thereof ‘‘officers’’.

(6) The center heading for part IV in the table of chapters

at the beginning of subtitle D is amended by inserting a comma

after ‘‘SUPPLY’’.

SEC. 1504. MISCELLANEOUS AMENDMENTS TO ANNUAL DEFENSE

AUTHORIZATION ACTS.

(a) PUBLIC LAW 103–337.—Effective as of October 5, 1994,

and as if included therein as enacted, the National Defense

Authorization Act for Fiscal Year 1995 (Public Law 103–337) is

amended as follows:

(1) Section 322(1) (108 Stat. 2711) is amended by striking

out ‘‘SERVICE’’ in both sets of quoted matter and inserting

in lieu thereof ‘‘SERVICES’’.

(2) Section 531(g)(2) (108 Stat. 2758) is amended by inserting ‘‘item relating to section 1034 in the’’ after ‘‘The’’.

(3) Section 541(c)(1) is amended—

(A) in subparagraph (B), by inserting a comma after

‘‘chief warrant officer’’; and

(B) in the matter after subparagraph (C), by striking

out ‘‘this’’.

(4) Section 721(f)(2) (108 Stat. 2806) is amended by striking

out ‘‘revaluated’’ and inserting in lieu thereof ‘‘reevaluated’’.

(5) Section 722(d)(2) (108 Stat. 2808) is amended by striking

out ‘‘National Academy of Science’’ and inserting in lieu thereof

‘‘National Academy of Sciences’’.

(6) Section 904(d) (108 Stat. 2827) is amended by striking

out ‘‘subsection (c)’’ the first place it appears and inserting

in lieu thereof ‘‘subsection (b)’’.

(7) Section 1202 (108 Stat. 2882) is amended—

(A) by striking out ‘‘(title XII of Public Law 103–60’’

and inserting in lieu thereof ‘‘(title XII of Public Law 103–

160’’; and

(B) in paragraph (2), by inserting ‘‘in the first sentence’’

before ‘‘and inserting in lieu thereof’’.

(8) Section 1312(a)(2) (108 Stat. 2894) is amended by striking out ‘‘adding at the end’’ and inserting in lieu thereof ‘‘inserting after the item relating to section 123a’’.

(9) Section 2813(c) (108 Stat. 3055) is amended by striking

out ‘‘above paragraph (1)’’ both places it appears and inserting

in lieu thereof ‘‘preceding subparagraph (A)’’.

(b) PUBLIC LAW 103–160.—The National Defense Authorization

Act for Fiscal Year 1994 (Public Law 103–160) is amended in

section 1603(d) (22 U.S.C. 2751 note)—

(1) in the matter preceding paragraph (1), by striking out

the second comma after ‘‘Not later than April 30 of each year’’;

(2) in paragraph (4), by striking out ‘‘contributes’’ and

inserting in lieu thereof ‘‘contribute’’; and

(3) in paragraph (5), by striking out ‘‘is’’ and inserting

in lieu thereof ‘‘are’’.

10 USC 2687

note.

10 USC 123b.

22 USC 5956.

10 USC 10501

note.

10 USC 1074

note.

10 USC 1074

note.

10 USC 571 note.

10 USC 2701.

Effective date.

10 USC 2701

note.

110 STAT. 514 PUBLIC LAW 104–106—FEB. 10, 1996

(c) PUBLIC LAW 102–484.—The National Defense Authorization

Act for Fiscal Year 1993 (Public Law 102–484) is amended as

follows:

(1) Section 326(a)(5) (106 Stat. 2370; 10 U.S.C. 2301 note)

is amended by inserting ‘‘report’’ after ‘‘each’’.

(2) Section 3163(1)(E) is amended by striking out ‘‘paragraphs (1) through (4)’’ and inserting in lieu thereof ‘‘subparagraphs (A) through (D)’’.

(3) Section 4403(a) (10 U.S.C. 1293 note) is amended by

striking out ‘‘through 1995’’ and inserting in lieu thereof

‘‘through fiscal year 1999’’.

(d) PUBLIC LAW 102–190.—Section 1097(d) of the National

Defense Authorization Act for Fiscal Years 1992 and 1993 (Public

Law 102–190; 105 Stat. 1490) is amended by striking out ‘‘the

Federal Republic of Germany, France’’ and inserting in lieu thereof

‘‘France, Germany’’.

SEC. 1505. MISCELLANEOUS AMENDMENTS TO OTHER LAWS.

(a) OFFICER PERSONNEL ACT OF 1947.—Section 437 of the Officer Personnel Act of 1947 is repealed.

(b) TITLE 5, UNITED STATES CODE.—Title 5, United States

Code, is amended—

(1) in section 8171—

(A) in subsection (a), by striking out ‘‘903(3)’’ and

inserting in lieu thereof ‘‘903(a)’’;

(B) in subsection (c)(1), by inserting ‘‘section’’ before

‘‘39(b)’’; and

(C) in subsection (d), by striking out ‘‘(33 U.S.C. 18

and 21, respectively)’’ and inserting in lieu thereof ‘‘(33

U.S.C. 918 and 921)’’;

(2) in sections 8172 and 8173, by striking out ‘‘(33 U.S.C.

2(2))’’ and inserting in lieu thereof ‘‘(33 U.S.C. 902(2))’’; and

(3) in section 8339(d)(7), by striking out ‘‘Court of Military

Appeals’’ and inserting in lieu thereof ‘‘Court of Appeals for

the Armed Forces’’.

(c) PUBLIC LAW 90–485.—Effective as of August 13, 1968, and

as if included therein as originally enacted, section 1(6) of Public

Law 90–485 (82 Stat. 753) is amended—

(1) by striking out the close quotation marks after the

end of clause (4) of the matter inserted by the amendment

made by that section; and

(2) by adding close quotation marks at the end.

(d) TITLE 37, UNITED STATES CODE.—Section 406(b)(1)(E) of

title 37, United States Code, is amended by striking out ‘‘of this

paragraph’’.

(e) BASE CLOSURE LAWS.—(1) 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—

(A) in section 2905(b)(1)(C), by striking out ‘‘of the Administrator to grant approvals and make determinations under section 13(g) of the Surplus Property Act of 1944 (50 U.S.C.

App. 1622(g))’’ and inserting in lieu thereof ‘‘to dispose of surplus property for public airports under sections 47151 through

47153 of title 49, United States Code’’;

(B) in section 2906(d)(1), by striking out ‘‘section

204(b)(4)(C)’’ and inserting in lieu thereof ‘‘section 204(b)(7)(C)’’;

and

10 USC 1436.

Effective date.

10 USC 5401

note prec.

22 USC 2751

note.

42 USC 7247j.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 515

(C) in section 2910—

(i) by designating the second paragraph (10), as added by section 2(b) of the Base Closure Community Redevelopment and Homeless Assistance Act of 1994 (Public Law

103–421; 108 Stat. 4352), as paragraph (11); and (ii) in such paragraph, as so designated, by striking out ‘‘section 501(h)(4) of the Stewart B. McKinney Homeless

Assistance Act (42 U.S.C. 11411(h)(4))’’ and inserting in

lieu thereof ‘‘section 501(i)(4) of the Stewart B. McKinney

Homeless Assistance Act (42 U.S.C. 11411(i)(4))’’.

(2) Section 2921(d)(1) of the National Defense Authorization

Act for Fiscal Year 1991 (Public Law 101–510; 10 U.S.C. 2687

note) is amended by striking out ‘‘section 204(b)(4)(C)’’ and inserting

in lieu thereof ‘‘section 204(b)(7)(C)’’.

(3) Section 204 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 subsection (b)(1)(C), by striking out ‘‘of the Adminis- trator to grant approvals and make determinations under section 13(g) of the Surplus Property Act of 1944 (50 U.S.C.

App. 1622(g))’’ and inserting in lieu thereof ‘‘to dispose of surplus property for public airports under sections 47151 through

47153 of title 49, United States Code’’; and

(B) in subsection (b)(7)(A)(i), by striking out ‘‘paragraph

(3)’’ and inserting in lieu thereof ‘‘paragraphs (3) through (6)’’.

(f) PUBLIC LAW 103–421.—Section 2(e)(5) of Public Law 103–

421 (108 Stat. 4354) is amended—

(1) by striking out ‘‘(A)’’ after ‘‘(5)’’; and

(2) by striking out ‘‘clause’’ in subparagraph (B)(iv) and

inserting in lieu thereof ‘‘clauses’’.

(g) ATOMIC ENERGY ACT.—Section 123a. of the Atomic Energy

Act (42 U.S.C. 2153a.) is amended by striking out ‘‘144b., or 144d.’’

and inserting ‘‘, 144b., or 144d.’’.

SEC. 1506. COORDINATION WITH OTHER AMENDMENTS.

For purposes of applying amendments made by provisions of

this Act other than provisions of this title, this title shall be treated

as having been enacted immediately before the other provisions

of this Act.

TITLE XVI—CORPORATION FOR THE

PROMOTION OF RIFLE PRACTICE AND

FIREARMS SAFETY

SEC. 1601. SHORT TITLE.

This title may be cited as the ‘‘Corporation for the Promotion

of Rifle Practice and Firearms Safety Act’’.

Subtitle A—Establishment and Operation

of Corporation

SEC. 1611. ESTABLISHMENT OF THE CORPORATION.

(a) ESTABLISHMENT.—There is established a private, nonprofit

corporation to be known as the ‘‘Corporation for the Promotion

36 USC 5501.

36 USC 5501

note.

Corporation for

the Promotion of

Rifle Practice and

Firearms Safety

Act.

10 USC 101 note.

42 USC 2153.

10 USC 2687

note.

110 STAT. 516 PUBLIC LAW 104–106—FEB. 10, 1996

of Rifle Practice and Firearms Safety’’ (in this title referred to

as the ‘‘Corporation’’).

(b) PRIVATE, NONPROFIT STATUS.—(1) The Corporation shall

not be considered to be a department, agency, or instrumentality

of the Federal Government. An officer or employee of the Corporation shall not be considered to be an officer or employee of the

Federal Government.

(2) The Corporation shall be operated in a manner and for

purposes that qualify the Corporation for exemption from taxation

under section 501(a) of the Internal Revenue Code of 1986 as

an organization described in section 501(c)(3) of such Code.

(c) BOARD OF DIRECTORS.—(1) The Corporation shall have a

Board of Directors consisting of not less than nine members.

(2) The Board of Directors may adopt bylaws, policies, and

procedures for the Corporation and may take any other action

that the Board of Directors considers necessary for the management

and operation of the Corporation.

(3) Each member of the Board of Directors shall serve for

a term of two years. Members of the Board of Directors are eligible

for reappointment.

(4) A vacancy on the Board of Directors shall be filled by

a majority vote of the remaining members of the Board.

(5) The Secretary of the Army shall appoint the initial Board

of Directors. Four of the members of the initial Board of Directors,

to be designated by the Secretary at the time of appointment,

shall (notwithstanding paragraph (3)) serve for a term of one year.

(d) DIRECTOR OF CIVILIAN MARKSMANSHIP.—(1) The Board of

Directors shall appoint an individual to serve as the Director of

Civilian Marksmanship.

(2) The Director shall be responsible for the performance of

the daily operations of the Corporation and the functions described

in section 1612.

SEC. 1612. CONDUCT OF CIVILIAN MARKSMANSHIP PROGRAM.

(a) FUNCTIONS.—The Corporation shall have responsibility for

the overall supervision, oversight, and control of the Civilian Marksmanship Program, pursuant to the transfer of the program under

subsection (d), including the performance of the following:

(1) The instruction of citizens of the United States in

marksmanship.

(2) The promotion of practice and safety in the use of

firearms, including the conduct of matches and competitions

in the use of those firearms.

(3) The award to competitors of trophies, prizes, badges,

and other insignia.

(4) The provision of security and accountability for all

firearms, ammunition, and other equipment under the custody

and control of the Corporation.

(5) The issue, loan, or sale of firearms, ammunition, supplies, and appliances under section 1614.

(6) The procurement of necessary supplies, appliances,

clerical services, other related services, and labor to carry out

the Civilian Marksmanship Program.

(b) PRIORITY FOR YOUTH ACTIVITIES.—In carrying out the

Civilian Marksmanship Program, the Corporation shall give priority

to activities that benefit firearms safety, training, and competition

for youth and that reach as many youth participants as possible.

36 USC 5502.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 517

(c) ACCESS TO SURPLUS PROPERTY.—(1) The Corporation may obtain surplus property and supplies from the Defense Reutilization

Marketing Service to carry out the Civilian Marksmanship Program. (2) Any transfer of property and supplies to the Corporation under paragraph (1) shall be made without cost to the Corporation. (d) TRANSFER OF CIVILIAN MARKSMANSHIP PROGRAM TO COR- PORATION.—(1) The Secretary of the Army shall provide for the transition of the Civilian Marksmanship Program, as defined in

section 4308(e) of title 10, United States Code (as such section

was in effect on the day before the date of the enactment of

this Act), from conduct by the Department of the Army to conduct

by the Corporation. The transition shall be completed not later

than September 30, 1996. (2) To carry out paragraph (1), the Secretary shall provide such assistance and take such action as is necessary to maintain

the viability of the program and to maintain the security of firearms,

ammunition, and other property that are transferred or reserved

for transfer to the Corporation under section 1615, 1616, or 1621.

SEC. 1613. ELIGIBILITY FOR PARTICIPATION IN CIVILIAN MARKSMANSHIP PROGRAM.

(a) CERTIFICATION REQUIREMENT.—(1) Before a person may participate in any activity sponsored or supported by the Corporation, the person shall be required to certify by affidavit the following: (A) The person has not been convicted of any Federal or State felony or violation of section 922 of title 18, United

States Code.

(B) The person is not a member of any organization that advocates the violent overthrow of the United States Government.

(2) The Director of Civilian Marksmanship may require any person to attach to the person’s affidavit a certification from the

appropriate State or Federal law enforcement agency for purposes

of paragraph (1)(A). (b) INELIGIBILITY RESULTING FROM CERTAIN CONVICTIONS.— A person who has been convicted of a Federal or State felony

or a violation of section 922 of title 18, United States Code, shall

not be eligible to participate in any activity sponsored or supported

by the Corporation through the Civilian Marksmanship Program. (c) AUTHORITY TO LIMIT PARTICIPATION.—The Director of

Civilian Marksmanship may limit participation as necessary to

ensure—

(1) quality instruction in the use of firearms;

(2) the safety of participants; and

(3) the security of firearms, ammunition, and equipment.

SEC. 1614. ISSUANCE, LOAN, AND SALE OF FIREARMS AND AMMUNITION BY THE CORPORATION.

(a) ISSUANCE AND LOAN.—For purposes of training and competition, the Corporation may issue or loan, with or without charges

to recover administrative costs, caliber .22 rimfire and caliber .30

surplus rifles, caliber .22 and .30 ammunition, air rifles, targets,

and other supplies and appliances necessary for activities related

to the Civilian Marksmanship Program to the following: (1) Organizations affiliated with the Corporation that provide training in the use of firearms to youth. (2) The Boy Scouts of America.

(3) 4–H Clubs.

36 USC 5504.

36 USC 5503.

110 STAT. 518 PUBLIC LAW 104–106—FEB. 10, 1996

(4) Future Farmers of America.

(5) Other youth-oriented organizations.

(b) SALES.—(1) The Corporation may sell at fair market value

caliber .22 rimfire and caliber .30 surplus rifles, caliber .22 and

.30 ammunition, air rifles, repair parts, and accouterments to

organizations affiliated with the Corporation that provide training

in the use of firearms.

(2) Subject to subsection (e), the Corporation may sell at fair

market value caliber .22 rimfire and caliber .30 surplus rifles,

ammunition, targets, repair parts and accouterments, 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 affiliated with the Corporation. In addition to any

other requirement, the Corporation shall establish procedures to

obtain a criminal records check of the person with appropriate

Federal and State law enforcement agencies.

(c) LIMITATIONS ON SALES.—(1) The Corporation may not offer

for sale any repair part designed to convert any firearm to fire

in a fully automatic mode.

(2) The Corporation may not sell rifles, ammunition, or any

other item available for sale to individuals under the Civilian

Marksmanship Program to a person who has been convicted of

a felony or a violation of section 922 of title 18, United States

Code.

(d) OVERSIGHT AND ACCOUNTABILITY.—The Corporation shall

be responsible for ensuring adequate oversight and accountability

of all firearms issued or loaned under this section. The Corporation

shall prescribe procedures for the security of issued or loaned firearms in accordance with Federal, State, and local laws.

(e) APPLICABILITY OF OTHER LAW.—(1) Subject to paragraph

(2), sales under subsection (b)(2) are subject to applicable Federal,

State, and local laws.

(2) Paragraphs (1), (2), (3), and (5) of section 922(a) of title

18, United States Code, do not apply to the shipment, transportation, receipt, transfer, sale, issuance, loan, or delivery by the

Corporation of any item that the Corporation is authorized to issue,

loan, sell, or receive under this title.

SEC. 1615. TRANSFER OF FIREARMS AND AMMUNITION FROM THE

ARMY TO THE CORPORATION.

(a) TRANSFERS REQUIRED.—The Secretary of the Army shall,

in accordance with subsection (b), transfer to the Corporation all

firearms and ammunition that on the day before the date of the

enactment of this Act are under the control of the Director of

the Civilian Marksmanship Program, including—

(1) all firearms on loan to affiliated clubs and State associations;

(2) all firearms in the possession of the Civilian Marksmanship Support Detachment; and

(3) all M–1 Garand and caliber .22 rimfire rifles stored

at Anniston Army Depot, Anniston, Alabama.

(b) TIME FOR TRANSFER.—The Secretary shall transfer firearms

and ammunition under subsection (a) as and when necessary to

enable the Corporation—

(1) to issue or loan such items in accordance with section

1614(a); or

36 USC 5505.

Procedures.

Law enforcement

and crime.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 519

(2) to sell such items to purchasers in accordance with section 1614(b).

(c) PARTS.—The Secretary may make available to the Corpora- tion any part from a rifle designated to be demilitarized in the

inventory of the Department of the Army. (d) VESTING OF TITLE IN TRANSFERRED ITEMS.—Title to an

item transferred to the Corporation under this section shall vest

in the Corporation— (1) upon the issuance of the item to a recipient eligible under section 1614(a) to receive the item; or

(2) immediately before the Corporation delivers the item to a purchaser of the item in accordance with a contract for

a sale of the item that is authorized under section 1614(b).

(e) COSTS OF TRANSFERS.—Any transfer of firearms, ammuni- tion, or parts to the Corporation under this section shall be made

without cost to the Corporation, except that the Corporation shall

assume the cost of preparation and transportation of firearms and

ammunition transferred under this section.

SEC. 1616. RESERVATION BY THE ARMY OF FIREARMS AND AMMUNITION FOR THE CORPORATION.

(a) RESERVATION OF FIREARMS AND AMMUNITION.—The Secretary of the Army shall reserve for the Corporation the following: (1) All firearms referred to in section 1615(a).

(2) Ammunition for such firearms.

(3) All M–16 rifles used to support the small arms firing school that are held by the Department of the Army on the

date of the enactment of this Act.

(4) Any parts from, and accessories and accouterments for, surplus caliber .30 and caliber .22 rimfire rifles.

(b) STORAGE OF FIREARMS AND AMMUNITION.—Firearms stored

at Anniston Army Depot, Anniston, Alabama, before the date of

the enactment of this Act and used for the Civilian Marksmanship

Program shall remain at that facility, or another storage facility

designated by the Secretary of the Army, without cost to the Corporation, until the firearms are issued, loaned, or sold by, or otherwise transferred to, the Corporation. (c) LIMITATION ON DEMILITARIZATION OF M–1 RIFLES.—After

the date of the enactment of this Act, the Secretary may not

demilitarize any M–1 Garand rifle in the inventory of the Army

unless that rifle is determined by the Defense Logistics Agency

to be unserviceable.

(d) EXCEPTION FOR TRANSFERS TO FEDERAL AND STATE AGEN- CIES FOR COUNTERDRUG PURPOSES.—The requirement specified in subsection (a) does not supersede the authority provided in section

1208 of the National Defense Authorization Act for Fiscal Years

1990 and 1991 (Public Law 101–189; 10 U.S.C. 372 note).

SEC. 1617. ARMY LOGISTICAL SUPPORT FOR THE PROGRAM.

(a) LOGISTICAL SUPPORT.—The Secretary of the Army shall

provide logistical support to the Civilian Marksmanship Program

and for competitions and other activities conducted by the Corporation. The Corporation shall reimburse the Secretary for incremental

direct costs incurred in providing such support. Such reimbursements shall be credited to the appropriations account of the Department of the Army that is charged to provide such support. (b) RESERVE COMPONENT PERSONNEL.—The Secretary shall provide, without cost to the Corporation, for the use of members

36 USC 5507.

36 USC 5506.

110 STAT. 520 PUBLIC LAW 104–106—FEB. 10, 1996

of the National Guard and Army Reserve to support the National

Matches as part of the performance of annual training pursuant

to titles 10 and 32, United States Code.

(c) USE OF DEPARTMENT OF DEFENSE FACILITIES FOR NATIONAL

MATCHES.—The National Matches may continue to be held at those

Department of Defense facilities at which the National Matches

were held before the date of the enactment of this Act.

(d) REGULATIONS.—The Secretary shall prescribe regulations

to carry out this section.

SEC. 1618. GENERAL AUTHORITIES OF THE CORPORATION.

(a) DONATIONS AND FEES.—(1) The Corporation may solicit,

accept, hold, use, and dispose of donations of money, property,

and services received by gift, devise, bequest, or otherwise.

(2) The Corporation may impose, collect, and retain such fees

as are reasonably necessary to cover the direct and indirect costs

of the Corporation to carry out the Civilian Marksmanship Program.

(3) Amounts collected by the Corporation under the authority

of this subsection, including the proceeds from the sale of firearms,

ammunition, targets, and other supplies and appliances, may be

used only to support the Civilian Marksmanship Program.

(b) CORPORATE SEAL.—The Corporation may adopt, alter, and

use a corporate seal, which shall be judicially noticed.

(c) CONTRACTS.—The Corporation may enter into contracts,

leases, agreements, or other transactions.

(d) OBLIGATIONS AND EXPENDITURES.—The Corporation 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 such obligations

and expenditures.

(e) RELATED AUTHORITY.—The Corporation may take such other

actions as are necessary or appropriate to carry out the authority

provided in this section.

SEC. 1619. DISTRIBUTION OF CORPORATE ASSETS IN EVENT OF DISSOLUTION.

(a) DISTRIBUTION.—If the Corporation dissolves, then—

(1) upon the dissolution of the Corporation, title to all

firearms stored at Anniston Army Depot, Anniston, Alabama,

on the date of the dissolution, all M–16 rifles that are transferred to the Corporation under section 1615(a)(2), that are

referred to in section 1616(a)(3), or that are otherwise under

the control of the Corporation, and all trophies received by

the Corporation from the National Board for the Promotion

of Rifle Practice as of such date, shall vest in the Secretary

of the Army, and the Secretary shall have the immediate right

to the possession of such items;

(2) assets of the Corporation, other than assets described

in paragraph (1), may be distributed by the Corporation to

an organization that—

(A) is exempt from taxation under section 501(a) of

the Internal Revenue Code of 1986 as an organization

described in section 501(c)(3) of such Code; and

(B) performs functions similar to the functions

described in section 1612(a); and

(3) all assets of the Corporation that are not distributed

pursuant to paragraphs (1) and (2) shall be sold, and the

36 USC 5509.

36 USC 5508.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 521

proceeds from the sale of such assets shall be deposited in

the Treasury.

(b) PROHIBITION.—Assets of the Corporation that are distributed

pursuant to the authority of subsection (a) may not be distributed

to an individual.

Subtitle B—Transitional Provisions

SEC. 1621. TRANSFER OF FUNDS AND PROPERTY TO THE CORPORATION.

(a) FUNDS.—(1) On the date of the submission of a certification

in accordance with section 1623 or, if earlier, October 1, 1996,

the Secretary of the Army shall transfer to the Corporation—

(A) the amounts that are available to the National Board

for the Promotion of Rifle Practice from sales programs and

fees collected in connection with competitions sponsored by

the Board; and

(B) all funds that are in the nonappropriated fund account

known as the National Match Fund.

(2) The funds transferred under paragraph (1)(A) shall be used

to carry out the Civilian Marksmanship Program.

(3) Transfers under paragraph (1)(B) shall be made without

cost to the Corporation.

(b) PROPERTY.—The Secretary of the Army shall, as soon as

practicable, transfer to the Corporation the following:

(1) All automated data equipment, all other office equipment, targets, target frames, vehicles, and all other property

under the control of the Director of Civilian Marksmanship

and the Civilian Marksmanship Support Detachment on the

day before the date of the enactment of this Act (other than

property to which section 1615(a) applies).

(2) Title to property under the control of the National

Match Fund on such day.

(3) All supplies and appliances under the control of the

Director of the Civilian Marksmanship Program on such day.

(c) OFFICES.—The Corporation may use the office space of the

Office of the Director of Civilian Marksmanship until the date

on which the Secretary of the Army completes the transfer of

the Civilian Marksmanship Program to the Corporation. The Corporation shall assume control of the leased property occupied as

of the date of the enactment of this Act by the Civilian Marksmanship Support Detachment, located at the Erie Industrial Park,

Port Clinton, Ohio.

(d) COSTS OF TRANSFERS.—Any transfer of items to the Corporation under this section shall be made without cost to the Corporation.

SEC. 1622. CONTINUATION OF ELIGIBILITY FOR CERTAIN CIVIL SERVICE BENEFITS FOR FORMER FEDERAL EMPLOYEES OF

CIVILIAN MARKSMANSHIP PROGRAM.

(a) CONTINUATION OF ELIGIBILITY.—Notwithstanding any other

provision of law, a Federal employee who is employed by the Department of Defense to support the Civilian Marksmanship Program

as of the day before the date of the transfer of the Program to

the Corporation and is offered employment by the Corporation

as part of the transition described in section 1612(d) may, if the

36 USC 5522.

36 USC 5521.

110 STAT. 522 PUBLIC LAW 104–106—FEB. 10, 1996

employee becomes employed by the Corporation, continue to be

eligible during continuous employment with the Corporation for

the Federal health, retirement, and similar benefits (including life

insurance) for which the employee would have been eligible had

the employee continued to be employed by the Department of

Defense. The employer’s contribution for such benefits shall be

paid by the Corporation.

(b) REGULATIONS.—The Director of the Office of Personnel

Management shall prescribe regulations to carry out subsection

(a).

SEC. 1623. CERTIFICATION OF COMPLETION OF TRANSITION.

(a) CERTIFICATION REQUIREMENT.—Upon completion of the

appointment of the Board of Directors for the Corporation under

section 1611(c)(5) and of the transition required under section

1612(d), 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 certification of the

completion of such actions.

(b) PUBLICATION OF CERTIFICATION.—The Secretary shall take

such actions as are necessary to ensure that the certification is

published in the Federal Register promptly after the submission

of the certification under subsection (a).

SEC. 1624. REPEAL OF AUTHORITY FOR CONDUCT OF CIVILIAN

MARKSMANSHIP PROGRAM BY THE ARMY.

(a) REPEALS.—(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.

(b) CONFORMING AMENDMENTS.—(1) Section 4313 of title 10,

United States Code, is amended—

(A) by striking out subsection (b); and

(B) in subsection (a)—

(i) by striking out ‘‘(a) JUNIOR COMPETITORS.—’’ and

inserting in lieu thereof ‘‘(a) ALLOWANCES FOR PARTICIPATION OF JUNIOR COMPETITORS.—’’; and

(ii) in paragraph (3), by striking out ‘‘(3) For the purposes of this subsection’’ and inserting in lieu thereof ‘‘(b)

JUNIOR COMPETITOR DEFINED.—For the purposes of subsection (a)’’.

(2) Section 4316 of such title is amended by striking out ‘‘,

including fees charged and amounts collected pursuant to subsections (b) and (c) of section 4308,’’.

(3) Section 925(a)(2)(A) of title 18, United States Code, is

amended by inserting after ‘‘section 4308 of title 10’’ the following:

‘‘before the repeal of such section by section 1624(a) of the Corporation for the Promotion of Rifle Practice and Firearms Safety Act’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall take effect on the earlier of—

(1) the date on which the Secretary of the Army submits

a certification in accordance with section 1623; or

(2) October 1, 1996.

10 USC 4313

note.

Federal Register,

publication.

36 USC 5523.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 523

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 ............................................... $16,000,000

California ................... Fort Irwin ...................................................... $25,500,000

Presidio of San Francisco ............................. $3,000,000

Colorado ..................... Fort Carson ................................................... $30,850,000

District of Columbia .. Fort McNair ................................................... $13,500,000

Georgia ....................... Fort Benning ................................................. $37,900,000

Fort Gordon ................................................... $5,750,000

Fort Stewart .................................................. $8,400,000

Hawaii ........................ Schofield Barracks ........................................ $30,000,000

Kansas ........................ Fort Riley ....................................................... $7,000,000

Kentucky .................... Fort Campbell ............................................... $10,000,000

Fort Knox ....................................................... $5,600,000

New Jersey ................ Picatinny Arsenal .......................................... $5,500,000

New Mexico ................ White Sands Missile Range ......................... $2,050,000

New York ................... Fort Drum ...................................................... $8,800,000

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

Washington ................ Fort Lewis ...................................................... $32,100,000

CONUS Classified ..... Classified Location ........................................ $1,900,000

Total: ....................................................... $478,230,000

(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

Military

Construction

Authorization

Act for Fiscal

Year 1996.

110 STAT. 524 PUBLIC LAW 104–106—FEB. 10, 1996

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 ......................................................... $4,500,000

Overseas Classified ... Classified Location ........................................ $48,000,000

Worldwide .................. Host Nation Support ..................................... $20,000,000

Total: ....................................................... $102,550,000

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

Kentucky ............. Fort Knox ........................... 150 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: ............ $65,800,000

(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

$48,856,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

(a) IN GENERAL.—Subject to subsection (c), 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 $2,147,427,000 as follows:

(1) For military construction projects inside the United

States authorized by section 2101(a), $478,230,000.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 525

(2) For military construction projects outside the United States authorized by section 2101(b), $102,550,000. (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,

$34,194,000.

(5) For military family housing functions:

(A) For construction and acquisition, planning and

design, and improvements of military family housing and

facilities, $116,656,000.

(B) For support of military family housing (including

the functions described in section 2833 of title 10, United

States Code), $1,337,596,000.

(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).

(c) ADJUSTMENT.—The total amount authorized to be appropriated pursuant to paragraphs (1) through (6) of subsection (a)

is the sum of the amounts authorized to be appropriated in such

paragraphs, reduced by $6,385,000, which represents the combination of project savings resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes.

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), and, in the case of the project described in section

2204(b)(2), other amounts appropriated pursuant to authorizations

enacted after this Act for that project, 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

Naval Command, Control, and Ocean Surveillance Center, 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

110 STAT. 526 PUBLIC LAW 104–106—FEB. 10, 1996

Navy: Inside the United States—Continued

State Installation or location Amount

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

Hawaii ........................ Honolulu Naval Computer and Telecommunications Area, Master Station

Eastern Pacific ........................................... $1,980,000

Intelligence Center Pacific, Pearl Harbor ... $2,200,000

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

New Jersey ................ Naval Air Warfare Center Aircraft Division, Lakehurst .......................................... $1,700,000

North Carolina .......... Marine Corps Air Station, Cherry Point ..... $11,430,000

Marine Corps Air Station, New River ......... $14,650,000

Marine Corps Base, Camp LeJeune ............ $59,300,000

Pennsylvania ............. Philadelphia Naval Shipyard ....................... $6,000,000

South Carolina .......... Marine Corps Air Station, Beaufort ............ $15,000,000

Texas .......................... Naval Air Station, Corpus Christi ............... $4,400,000

Naval Air Station, Kingsville ....................... $2,710,000

Naval Station, Ingleside ............................... $2,640,000

Virginia ...................... Fleet and Industrial Supply Center, Williamsburg ................................................... $8,390,000

Henderson Hall, Arlington ........................... $1,900,000

Marine Corps Combat Development Command, Quantico ......................................... $3,500,000

Naval Hospital, Portsmouth ........................ $9,500,000

Naval Station, Norfolk .................................. $10,580,000

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

West Virginia ............. Naval Security Group Detachment ............. $7,200,000

CONUS Classified ..... Classified Locations ...................................... $1,200,000

Total: ....................................................... $435,409,000

(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 Computer and Telecommunications

Area, Master Station Western Pacific ..... $2,250,000

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 527

Navy: Outside the United States—Continued

Country Installation or location Amount

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 ........................ 138 units ............. $20,000,000

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 Carolina .... Marine Corps Air Station,

Cherry Point ................... Community Center.$1,003,000

Pennsylvania ....... Navy Ships Parts Control

Center, Mechanicsburg .. Housing Office .... $300,000

Puerto Rico .......... Naval Station, Roosevelt

Roads .............................. Housing Office .... $710,000

Virginia ................ Naval Surface Warfare

Center, Dahlgren ........... Housing Office .... $520,000

Public Works Center, Norfolk .................................. 320 units ............. $42,500,000

Public Works Center, Norfolk .................................. Housing Office .... $1,390,000

West Virginia ...... Security Group Naval Detachment, Sugar Grove . 23 units ............... $3,590,000

Total: ............ $207,478,000

110 STAT. 528 PUBLIC LAW 104–106—FEB. 10, 1996

(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 $290,831,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

(a) IN GENERAL.—Subject to subsection (c), 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

Navy in the total amount of $2,119,317,000 as follows:

(1) For military construction projects inside the United

States authorized by section 2201(a), $427,709,000.

(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,

$50,515,000.

(5) For military family housing functions:

(A) For construction and acquisition, planning and

design, and improvement of military family housing and

facilities, $522,699,000.

(B) For support of military housing (including functions

described in section 2833 of title 10, United States Code),

$1,048,329,000.

(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—

(1) the total amount authorized to be appropriated under

paragraphs (1) and (2) of subsection (a); and

(2) $7,700,000 (the balance of the amount authorized under

section 2201(a) for the construction of a bachelor enlisted quarters at the Naval Construction Batallion Center, Port Hueneme,

California).

(c) ADJUSTMENT.—The total amount authorized to be appropriated pursuant to paragraphs (1) through (5) of subsection (a)

is the sum of the amounts authorized to be appropriated in such

paragraphs, reduced by $6,385,000, which represents the combination of project savings resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 529

SEC. 2205. REVISION OF FISCAL YEAR 1995 AUTHORIZATION OF

APPROPRIATIONS TO CLARIFY AVAILABILITY OF FUNDS

FOR LARGE ANECHOIC CHAMBER FACILITY, PATUXENT

RIVER NAVAL WARFARE CENTER, MARYLAND.

Section 2204(a) of the Military Construction Authorization Act

for Fiscal Year 1995 (division B of Public Law 103–337; 108 Stat.

3033) is amended—

(1) in the matter preceding paragraph (1), by striking out

‘‘$1,591,824,000’’ and inserting in lieu thereof ‘‘$1,601,824,000’’;

and

(2) by adding at the end the following:

‘‘(6) For the construction of the large anechoic chamber

facility at the Patuxent River Naval Warfare Center, Aircraft

Division, Maryland, authorized by section 2201(a) of the Military Construction Authorization Act for Fiscal Year 1993 (division B of Public Law 102–484; 106 Stat. 2590), $10,000,000.’’.

SEC. 2206. AUTHORITY TO CARRY OUT LAND ACQUISITION PROJECT,

HAMPTON ROADS, VIRGINIA.

The table in section 2201(a) of the Military Construction

Authorization Act for Fiscal Year 1993 (division B of Public Law

102–484; 106 Stat. 2589) is amended—

(1) in the item relating to Damneck, Fleet Combat Training

Center, Virginia, by striking out ‘‘$19,427,000’’ in the amount

column and inserting in lieu thereof ‘‘$14,927,000’’; and

(2) by inserting after the item relating to Damneck, Fleet

Combat Training Center, Virginia, the following new item:

Hampton Roads ............................... $4,500,000

SEC. 2207. ACQUISITION OF LAND, HENDERSON HALL, ARLINGTON,

VIRGINIA.

(a) AUTHORITY TO ACQUIRE.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2204(a)(1), the Secretary of the Navy may acquire all right, title,

and interest of any party in and to a parcel of real property,

including an abandoned mausoleum, consisting of approximately

0.75 acres and located in Arlington, Virginia, the site of Henderson

Hall.

(b) DEMOLITION OF MAUSOLEUM.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2204(a)(1), the Secretary may—

(1) demolish the mausoleum located on the parcel acquired

under subsection (a); and

(2) provide for the removal and disposition in an appropriate manner of the remains contained in the mausoleum.

(c) AUTHORITY TO DESIGN PUBLIC WORKS FACILITY.—Using

amounts appropriated pursuant to the authorization of appropriations in section 2204(a)(1), the Secretary may obtain architectural

and engineering services and construction design for a warehouse

and office facility for the Marine Corps to be constructed on the

property acquired under subsection (a).

(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the real property authorized to be acquired under

subsection (a) shall be determined by a survey that is satisfactory

to the Secretary. The cost of the survey shall be borne by the

Secretary.

110 STAT. 530 PUBLIC LAW 104–106—FEB. 10, 1996

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the acquisition under subsection (a) as the Secretary considers

appropriate to protect the interests of the United States.

SEC. 2208. ACQUISITION OR CONSTRUCTION OF MILITARY FAMILY

HOUSING IN VICINITY OF SAN DIEGO, CALIFORNIA.

(a) AUTHORITY TO USE LITIGATION PROCEEDS.—Upon final

settlement in the case of Rossmoor Liquidating Trust against United

States, in the United States District Court for the Central District

of California (Case No. CV 82–0956 LEW (Px)), the Secretary of

the Treasury shall deposit in a separate account any funds paid

to the United States in settlement of such case. At the request

of the Secretary of the Navy, the Secretary of the Treasury shall

make available amounts in the account to the Secretary of the

Navy solely for the acquisition or construction of military family

housing, including the acquisition of land necessary for such acquisition or construction, for members of the Armed Forces and their

dependents stationed in, or in the vicinity of, San Diego, California.

In using amounts in the account, the Secretary of the Navy may

use the authorities provided in subchapter IV of chapter 169 of

title 10, United States Code, as added by section 2801 of this

Act.

(b) UNITS AUTHORIZED.—Not more than 150 military family

housing units may be acquired or constructed with funds referred

to in subsection (a). The units authorized by this subsection are

in addition to any other units of military family housing authorized

to be acquired or constructed in, or in the vicinity of, San Diego,

California.

(c) PAYMENT OF EXCESS INTO TREASURY.—The Secretary of

the Treasury shall deposit into the Treasury as miscellaneous

receipts funds referred to in subsection (a) that have not been

obligated for construction under this section within four years after

receipt thereof.

(d) LIMITATION.—The Secretary may not enter into any contract

for the acquisition or construction of military family housing under

this section until after the expiration of the 21-day period beginning

on the day after the day on which the Secretary transmits to

the congressional defense committees a report containing the details

of such contract.

(e) REPEAL OF EXISTING AUTHORITY.—Section 2848 of the Military Construction Authorization Act for Fiscal Years 1990 and

1991 (division B of Public Law 101–189; 103 Stat. 1666) is repealed.

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), and, in the case of the project described in section

2304(b)(2), other amounts appropriated pursuant to authorizations

enacted after this Act for that project, 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:

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 531

Air Force: Inside the United States

State Installation or location Amount

Alabama ..................... Maxwell Air Force Base ............................... $5,200,000

Alaska ........................ Eielson Air Force Base ................................. $7,850,000

Elmendorf Air Force Base ............................ $9,100,000

Tin City Long Range RADAR Site .............. $2,500,000

Arizona ....................... Davis-Monthan Air Force Base .................... $4,800,000

Luke Air Force Base ..................................... $5,200,000

Arkansas .................... Little Rock Air Force Base ........................... $2,500,000

California ................... Beale Air Force Base .................................... $7,500,000

Edwards Air Force Base ............................... $33,800,000

Travis Air Force Base ................................... $26,700,000

Vandenberg Air Force Base ......................... $6,000,000

Colorado ..................... Buckley Air National Guard Base ............... $5,500,000

Peterson Air Force Base ............................... $4,390,000

US Air Force Academy ................................. $12,874,000

Delaware .................... Dover Air Force Base .................................... $5,500,000

District of Columbia .. Bolling Air Force Base .................................. $12,100,000

Florida ........................ Cape Canaveral Air Force Station .............. $1,600,000

Eglin Air Force Base ..................................... $13,500,000

Tyndall Air Force Base ................................. $1,200,000

Georgia ....................... Moody Air Force Base ................................... $25,190,000

Robins Air Force Base .................................. $12,400,000

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 ............................ $9,450,000

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 ................................. $6,500,000

Missouri ..................... Whiteman Air Force Base ............................ $24,600,000

Nevada ....................... Nellis Air Force Base .................................... $17,500,000

New Jersey ................ McGuire Air Force Base ............................... $16,500,000

New Mexico ................ Cannon Air Force Base ................................. $13,420,000

Holloman Air Force Base ............................. $6,000,000

Kirtland Air Force Base ............................... $9,156,000

North Carolina .......... Pope Air Force Base ..................................... $8,250,000

Seymour Johnson Air Force Base ................ $5,530,000

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 ..................................... $4,800,000

Tinker Air Force Base .................................. $11,100,000

South Carolina .......... Charleston Air Force Base ........................... $12,500,000

Shaw Air Force Base .................................... $1,300,000

South Dakota ............. Ellsworth Air Force Base ............................. $7,800,000

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

Sheppard Air Force Base ............................. $1,500,000

Utah ........................... Hill Air Force Base ....................................... $8,900,000

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 ......................... $9,000,000

110 STAT. 532 PUBLIC LAW 104–106—FEB. 10, 1996

Air Force: Inside the United States—Continued

State Installation or location Amount

CONUS Classified ..... Classified Location ........................................ $700,000

Total: ....................................................... $504,690,000

(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2304(a)(2), the Secretary of the Air Force may acquire real property

and may carry out military construction projects for the installations

and locations outside the United States, and in the amounts, set

forth in the following table:

Air Force: Outside the United States

Country Installation or location Amount

Germany .................... Spangdahlem Air Base ................................. $8,380,000

Vogelweh Annex ............................................ $2,600,000

Greece ......................... Araxos Radio Relay Site ............................... $1,950,000

Italy ............................ Aviano Air Base ............................................ $2,350,000

Ghedi Radio Relay Site ................................ $1,450,000

Turkey ........................ Ankara Air Station ....................................... $7,000,000

Incirlik Air Base ............................................ $4,500,000

United Kingdom ........ Lakenheath Royal Air Force Base ............... $1,820,000

Mildenhall Royal Air Force Base ................. $2,250,000

Overseas Classified ... Classified Location ........................................ $17,100,000

Total: ....................................................... $49,400,000

SEC. 2302. FAMILY HOUSING.

(a) CONSTRUCTION AND ACQUISITION.—Using amounts appropriated pursuant to the authorization of appropriations in section

2304(a)(5)(A), the Secretary of the Air Force may construct or

acquire family housing units (including land acquisition) at the

installations, for the purposes, and in the amounts set forth in

the following table:

Air Force: Family Housing

State/Country Installation Purpose Amount

Alaska .................. Elmendorf Air Force Base Housing Office/

Maintenance

Facility.

$3,000,000

Arizona ................ Davis-Monthan Air Force

Base.

80 units ............... $9,498,000

Arkansas ............. Little Rock Air Force Base Replace 1 General Officer

Quarters.

$210,000

California ............ Beale Air Force Base ......... Family Housing

Office.

$842,000

Edwards Air Force Base ... 127 units ............. $20,750,000

Vandenberg Air Force

Base.

Family Housing

Office.

$900,000

Vandenberg Air Force

Base.

143 units ............. $20,200,000

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 533

Air Force: Family Housing—Continued

State/Country Installation Purpose Amount

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

Robins Air Force Base ...... 83 units ............... $9,800,000

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 ........ 102 units ............. $16,357,000

New Mexico ......... Holloman Air Force Base .. 1 General Officer

Quarters.

$225,000

Kirtland Air Force Base .... 105 units ............. $11,000,000

North Carolina .... Pope Air Force Base .......... 104 units ............. $9,984,000

Seymour Johnson Air

Force Base.

1 General Officer

Quarters.

$204,000

South Carolina .... Shaw Air Force Base ......... Housing Maintenance Facility.$715,000

Texas ................... Dyess Air Force Base ........ Housing Maintenance Facility.$580,000

Lackland Air Force Base .. 67 units ............... $6,200,000

Sheppard Air Force Base .. Management Office.$500,000

Sheppard Air Force Base .. Housing Maintenance Facility.$600,000

Turkey ................. Incirlik Air Base ................ 150 units ............. $10,146,000

Washington ......... McChord Air Force Base ... 50 units ............... $9,504,000

Total: ............ $198,355,000

(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

110 STAT. 534 PUBLIC LAW 104–106—FEB. 10, 1996

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.—Subject to subsection (c), 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 $1,735,086,000 as follows:

(1) For military construction projects inside the United

States authorized by section 2301(a), $504,690,000.

(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,

$30,835,000.

(5) For military housing functions:

(A) For construction and acquisition, planning and

design and improvement of military family housing and

facilities, $298,303,000.

(B) For support of military family housing (including

the functions described in section 2833 of title 10, United

States Code), $849,213,000.

(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—

(1) the total amount authorized to be appropriated under

paragraphs (1) and (2) of subsection (a); and

(2) $5,400,000 (the balance of the amount authorized under

section 2301(a) for the construction of a corrosion control facility

at Tinker Air Force Base, Oklahoma).

(c) ADJUSTMENT.—The total amount authorized to be appropriated pursuant to paragraphs (1) through (5) of subsection (a)

is the sum of the amounts authorized to be appropriated in such

paragraphs, reduced by $6,385,000, which represents the combination of project savings resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes.

SEC. 2305. RETENTION OF ACCRUED INTEREST ON FUNDS DEPOSITED

FOR CONSTRUCTION OF FAMILY HOUSING, SCOTT AIR

FORCE BASE, ILLINOIS.

(a) RETENTION OF INTEREST.—Section 2310 of the Military

Construction Authorization Act for Fiscal Year 1994 (division B

of Public Law 103–160; 107 Stat. 1874) is amended—

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

(2) by inserting after subsection (a) the following new

subsection:

‘‘(b) RETENTION OF INTEREST.—Interest accrued on the funds

transferred to the County pursuant to subsection (a) shall be

retained in the same account as the transferred funds and shall

be available to the County for the same purpose as the transferred

funds.’’.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 535

(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 such

funds) may not exceed the number of units of military family

housing authorized for Scott Air Force Base in section 2302(a)

of the Military Construction Authorization Act for Fiscal Year

1993.’’.

(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

remaining interest accrued on such funds, shall be deposited in

the general fund of the Treasury of the United States.’’.

(d) REPORTS ON ACCRUED INTEREST.—Such section is further

amended by adding at the end the following new subsection:

‘‘(e) REPORTS ON ACCRUED INTEREST.—Not later than March

1 of each year following a year in which funds available to the

County under this section are used by the County for the purpose

referred to in subsection (c), the Secretary shall submit to the

congressional defense committees a report setting forth the amount

of interest that accrued on such funds during the preceding year.’’.

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 .................................. $498,000

Defense Logistics

Agency

Alabama ..................... Defense Distribution Anniston .................... $3,550,000

California ................... Defense Distribution Stockton ..................... $15,000,000

110 STAT. 536 PUBLIC LAW 104–106—FEB. 10, 1996

Defense Agencies: Inside the United States—Continued

Agency/State Installation or location Amount

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 ............. Defense 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

Alabama ..................... Maxwell Air Force Base ............................... $10,000,000

Arizona ....................... Luke Air Force Base ..................................... $8,100,000

California ................... Fort Irwin ...................................................... $6,900,000

Marine Corps Base, Camp Pendleton ......... $1,700,000

Vandenberg Air Force Base ......................... $5,700,000

Delaware .................... Dover Air Force Base .................................... $4,400,000

Georgia ....................... Fort Benning ................................................. $5,600,000

Louisiana ................... Barksdale Air Force Base ............................. $4,100,000

Maryland .................... Bethesda Naval Hospital .............................. $1,300,000

Walter Reed Army Institute of Research .... $1,550,000

Texas .......................... Fort Hood ....................................................... $5,500,000

Lackland Air Force Base .............................. $6,100,000

Virginia ...................... Northwest Naval Security Group Activity .. $4,300,000

National Security

Agency

Maryland .................... Fort Meade .................................................... $18,733,000

Office of the Secretary of Defense

Inside the United

States Classified location ......................................... $11,500,000

Department of Defense Dependents

Schools

Alabama ..................... Maxwell Air Force Base ............................... $5,479,000

Georgia ....................... Fort Benning ................................................. $1,116,000

South Carolina .......... Fort Jackson .................................................. $576,000

Special Operations

Command

California ................... Camp Pendleton ............................................ $5,200,000

Florida ........................ Eglin Air Force Base (Duke Field) .............. $2,400,000

Eglin Auxiliary Field 9 ................................. $14,150,000

North Carolina .......... Fort Bragg ..................................................... $23,800,000

Pennsylvania ............. Olmstead Field, Harrisburg IAP ................. $1,643,000

Virginia ...................... Dam Neck ...................................................... $4,500,000

Naval Amphibious Base, Little Creek ......... $6,100,000

Total: ....................................................... $364,602,000

(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:

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 537

Defense Agencies: Outside the United States

Agency/Country Installation name Amount

Defense Logistics

Agency

Puerto Rico ................ Defense Fuel Support Point, Roosevelt

Roads .......................................................... $6,200,000

Spain .......................... DFSC Rota ..................................................... $7,400,000

Defense Medical

Facility Office

Italy ............................ Naval Support Activity, Naples ................... $5,000,000

Department of Defense Dependents

Schools

Germany .................... Ramstein Air Force Base .............................. $19,205,000

Italy ............................ Naval Air Station, Sigonella ........................ $7,595,000

National Security

Agency

United Kingdom ........ Menwith Hill Station .................................... $677,000

Special Operations

Command

Guam .......................... Naval Station, Guam .................................... $8,800,000

Total: ....................................................... $54,877,000

SEC. 2402. MILITARY FAMILY HOUSING PRIVATE INVESTMENT.

(a) AVAILABILITY OF FUNDS FOR INVESTMENT.—Of the amount

authorized to be appropriated pursuant to section 2405(a)(11)(A),

$22,000,000 shall be available for crediting to the Department of

Defense Family Housing Improvement Fund established by section

2883(a)(1) of title 10, United States Code (as added by section

2801 of this Act).

(b) USE OF FUNDS.—The Secretary of Defense may use funds

credited to the Department of Defense Family Housing Improvement Fund under subsection (a) to carry out any activities authorized by subchapter IV of chapter 169 of such title (as added by

such section) with respect to military family housing.

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)(11)(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)(9), 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 $4,629,491,000 as follows:

110 STAT. 538 PUBLIC LAW 104–106—FEB. 10, 1996

(1) For military construction projects inside the United States authorized by section 2401(a), $329,599,000. (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 unspecified minor construction projects under section 2805 of title 10, United States Code, $23,007,000.

(7) For contingency construction projects of the Secretary

of Defense under section 2804 of title 10, United States Code,

$11,037,000.

(8) For architectural and engineering services and construction design under section 2807 of title 10, United States Code,

$68,837,000.

(9) For energy conservation projects authorized by section

2404, $40,000,000.

(10) 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.

(11) 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. LIMITATIONS ON USE OF DEPARTMENT OF DEFENSE BASE

CLOSURE ACCOUNT 1990.

(a) SET ASIDE FOR 1995 ROUND.—Of the amounts appropriated

pursuant to the authorization of appropriations in section

2405(a)(10), $784,569,000 shall be available only for the purposes

described in section 2905 of the Defense Base Closure and RealignVerDate 07-FEB-96 03:34 Mar 05, 1996 Jkt 029139 PO 00106 Frm 00354 Fmt 6580 Sfmt 6581 PUBL106.104 apps06
PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 539

ment Act of 1990 (part A of title XXIX of Public Law 101–510;

10 U.S.C. 2687 note) with respect to military installations approved

for closure or realignment in 1995. (b) CONSTRUCTION.—Amounts appropriated pursuant to the

authorization of appropriations in section 2405(a)(10) may not be

obligated to carry out a construction project with respect to military

installations approved for closure or realignment in 1995 until

after the date on which the Secretary of Defense submits to Congress a five-year program for executing the 1995 base realignment

and closure plan. The limitation contained in this subsection shall

not prohibit site surveys, environmental baseline surveys, environmental analysis under the National Environmental Policy Act of

1969 (42 U.S.C. 4321 et seq.), and planning and design work conducted in anticipation of such construction.

SEC. 2407. 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. 2408. REDUCTION IN AMOUNTS AUTHORIZED TO BE APPROPRIATED FOR FISCAL YEAR 1994 CONTINGENCY

CONSTRUCTION PROJECTS.

Section 2403(a) of the Military Construction Authorization Act for Fiscal Year 1994 (division B of Public Law 103–160; 107 Stat.

1876) is amended—

(1) in the matter preceding paragraph (1), by striking out

‘‘$3,268,394,000’’ and inserting in lieu thereof ‘‘$3,260,263,000’’;

and

(2) in paragraph (10), by striking out ‘‘$12,200,000’’ and

inserting in lieu thereof ‘‘$4,069,000’’.

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 SecVerDate 07-FEB-96 03:34 Mar 05, 1996 Jkt 029139 PO 00106 Frm 00355 Fmt 6580 Sfmt 6581 PUBL106.104 apps06
110 STAT. 540 PUBLIC LAW 104–106—FEB. 10, 1996

retary 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,

$134,802,000; and

(B) for the Army Reserve, $73,516,000.

(2) For the Department of the Navy, for the Naval and

Marine Corps Reserve, $19,055,000.

(3) For the Department of the Air Force—

(A) for the Air National Guard of the United States,

$170,917,000; and

(B) for the Air Force Reserve, $36,232,000.

SEC. 2602. REDUCTION IN AMOUNT AUTHORIZED TO BE APPROPRIATED FOR FISCAL YEAR 1994 AIR NATIONAL GUARD

PROJECTS.

Section 2601(3)(A) of the Military Construction Authorization

Act for Fiscal Year 1994 (division B of Public Law 103–160; 107

Stat. 1878) is amended by striking out ‘‘$236,341,000’’ and inserting

in lieu thereof ‘‘$229,641,000’’.

SEC. 2603. CORRECTION IN AUTHORIZED USES OF FUNDS FOR ARMY

NATIONAL GUARD PROJECTS IN MISSISSIPPI.

(a) IN GENERAL.—Subject to subsection (b), 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.

(b) NOTICE AND WAIT.—The amounts referred to in subsection

(a) shall not be available for construction with respect to a facility

referred to in that subsection until 21 days after the date on

which the Secretary of the Army submits to Congress a report

describing the construction (including any land acquisition) to be

carried out with respect to the facility.

Reports.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 541

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, 2301, or 2601 of that Act or in section 2201 of that

Act (as amended by section 2206 of this 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 ..... Add/Alter Sewage Treatment Plant.$17,500,000

110 STAT. 542 PUBLIC LAW 104–106—FEB. 10, 1996

Navy: Extension of 1993 Project Authorizations

State Installation or Location Project Amount

California .................... Camp Pendleton Marine Corps Base.Sewage Treatment Plant

Modifications.

$19,740,000

Maryland .................... Patuxent River Naval

Warfare Center.

Large Anechoic

Chamber,

Phase I.

$60,990,000

Mississippi .................. Meridian Naval Air

Station.

Child Development Center.$1,100,000

Virginia ....................... Hampton Roads ......... Land Acquisition.$4,500,000

Air Force: Extension of 1993 Project Authorizations

State Installation or Location Project Amount

Arkansas ..................... Little Rock Air Force

Base.

Fire Training

Facility.

$710,000

District of Columbia ... Bolling Air Force

Base.

Civil Engineer

Complex.

$9,400,000

Mississippi .................. Keesler Air Force

Base.

Alter Student

Dormitory.

$3,100,000

North Carolina ........... Pope Air Force Base .. Construct

Bridge Road

and Utilities.

$4,000,000

Pope Air Force Base .. Munitions Storage Complex.$4,300,000

Virginia ....................... Langley Air Force

Base.

Base Engineer

Complex.

$5,300,000

Guam ........................... Andersen Air Base .... Landfill ............ $10,000,000

Portugal ...................... Lajes Field ................. Water Wells ..... $865,000

Lajes Field ................. Fire Training

Facility.

$950,000

Army National Guard: Extension of 1993 Project

Authorizations

State Installation or Location Project Amount

Alabama ...................... Tuscaloosa .................. Armory ............. $2,273,000

Union Springs ............ Armory ............. $813,000

Oregon ......................... La Grande .................. Organizational

Maintenance

Shop.

$1,220,000

La Grande .................. Armory Addition.$3,049,000

Pennsylvania .............. Indiana ....................... Armory ............. $1,700,000

Rhode Island ............... North Kingston .......... Add/Alter Armory.$3,330,000

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 543

Army Reserve: Extension of 1993 Project Authorizations

State Installation or Location Project Amount

West Virginia ............. Bluefield ..................... United States

Army Reserve Center.

$1,921,000

Clarksburg ................. United States

Army Reserve Center.

$1,566,000

Grantville ................... United States

Army Reserve Center.

$2,785,000

Lewisburg ................... United States

Army Reserve Center.

$1,631,000

Weirton ....................... United States

Army Reserve Center.

$3,481,000

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

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

Demilitarization Support

Facility.

$3,600,000

Umatilla Army Depot Ammunition

Demilitarization Utilities.

$7,500,000

Army National Guard: Extension of 1992 Project

Authorization

State Installation or Location Project Amount

Ohio ............................. Toledo ......................... Armory ............. $3,183,000

Army Reserve: Extension of 1992 Project Authorization

State Installation or Location Project Amount

Tennessee ................... Jackson ....................... Joint Training

Facility.

$1,537,000

110 STAT. 544 PUBLIC LAW 104–106—FEB. 10, 1996

TITLE XXVIII—GENERAL PROVISIONS

Subtitle A—Military Housing Privatization

Initiative

SEC. 2801. ALTERNATIVE AUTHORITY FOR CONSTRUCTION AND

IMPROVEMENT OF MILITARY HOUSING.

(a) ALTERNATIVE AUTHORITY TO CONSTRUCT AND IMPROVE MILI- TARY HOUSING.—(1) Chapter 169 of title 10, United States Code,

is amended by adding at the end the following new subchapter:

‘‘SUBCHAPTER IV—ALTERNATIVE AUTHORITY FOR

ACQUISITION AND IMPROVEMENT OF MILITARY HOUSING

‘‘Sec.

‘‘2871. Definitions.

‘‘2872. General authority.

‘‘2873. Direct loans and loan guarantees.

‘‘2874. Leasing of housing to be constructed.

‘‘2875. Investments in nongovernmental entities.

‘‘2876. Rental guarantees.

‘‘2877. Differential lease payments.

‘‘2878. Conveyance or lease of existing property and facilities.

‘‘2879. Interim leases.

‘‘2880. Unit size and type.

‘‘2881. Ancillary supporting facilities.

‘‘2882. Assignment of members of the armed forces to housing units.

‘‘2883. Department of Defense Housing Funds.

‘‘2884. Reports.

‘‘2885. Expiration of authority.

‘‘§ 2871. Definitions

‘‘In this subchapter: ‘‘(1) The term ‘ancillary supporting facilities’ means facili- ties related to military housing units, including child care centers, day care centers, tot lots, community centers, housing

offices, dining facilities, unit offices, and other similar facilities

for the support of military housing. ‘‘(2) The term ‘base closure law’ means the following: ‘‘(A) Section 2687 of this title.

‘‘(B) Title II of the Defense Authorization Amendments

and Base Closure and Realignment Act (Public Law 100–

526; 10 U.S.C. 2687 note).

‘‘(C) 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) The term ‘construction’ means the construction of military housing units and ancillary supporting facilities or the

improvement or rehabilitation of existing units or ancillary

supporting facilities. ‘‘(4) The term ‘contract’ includes any contract, lease, or other agreement entered into under the authority of this

subchapter.

‘‘(5) The term ‘Fund’ means the Department of Defense

Family Housing Improvement Fund or the Department of

Defense Military Unaccompanied Housing Improvement Fund

established under section 2883(a) of this title.

‘‘(6) The term ‘military unaccompanied housing’ means military housing intended to be occupied by members of the armed

forces serving a tour of duty unaccompanied by dependents.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 545

‘‘(7) The term ‘United States’ includes the Commonwealth

of Puerto Rico.

‘‘§ 2872. General authority

‘‘In addition to any other authority provided under this chapter

for the acquisition or construction of military family housing or

military unaccompanied housing, the Secretary concerned may exercise any authority or any combination of authorities provided under

this subchapter in order to provide for the acquisition or construction by private persons of the following:

‘‘(1) Family housing units on or near military installations

within the United States and its territories and possessions.

‘‘(2) Military unaccompanied housing units on or near such

military installations.

‘‘§ 2873. Direct loans and loan guarantees

‘‘(a) DIRECT LOANS.—(1) Subject to subsection (c), the Secretary

concerned may make direct loans to persons in the private sector

in order to provide funds to such persons for the acquisition or

construction of housing units that the Secretary determines are

suitable for use as military family housing or as military unaccompanied housing.

‘‘(2) The Secretary concerned shall establish such terms and

conditions with respect to loans made under this subsection as

the Secretary considers appropriate to protect the interests of the

United States, including the period and frequency for repayment

of such loans and the obligations of the obligors on such loans

upon default.

‘‘(b) LOAN GUARANTEES.—(1) Subject to subsection (c), the Secretary concerned may guarantee a loan made to any person in

the private sector if the proceeds of the loan are to be used by

the person to acquire, or construct housing units that the Secretary

determines are suitable for use as military family housing or as

military unaccompanied housing.

‘‘(2) The amount of a guarantee on a loan that may be provided

under paragraph (1) may not exceed the amount equal to the

lesser of—

‘‘(A) the amount equal to 80 percent of the value of the

project; or

‘‘(B) the amount of the outstanding principal of the loan.

‘‘(3) The Secretary concerned shall establish such terms and

conditions with respect to guarantees of loans under this subsection

as the Secretary considers appropriate to protect the interests of

the United States, including the rights and obligations of obligors

of such loans and the rights and obligations of the United States

with respect to such guarantees. ‘‘(c) LIMITATION ON DIRECT LOAN AND GUARANTEE AUTHORITY.— Direct loans and loan guarantees may be made under this section

only to the extent that appropriations of budget authority to cover

their cost (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 appropriation Acts. If such appropriation

or other authority is provided, there may be established a financing

account (as defined in section 502(7) of such Act (2 U.S.C. 661a(7))),

which shall be available for the disbursement of direct loans or

payment of claims for payment on loan guarantees under this

110 STAT. 546 PUBLIC LAW 104–106—FEB. 10, 1996

section and for all other cash flows to and from the Government

as a result of direct loans and guarantees made under this section.

‘‘§ 2874. Leasing of housing to be constructed

‘‘(a) BUILD AND LEASE AUTHORIZED.—The Secretary concerned

may enter into contracts for the lease of military family housing

units or military unaccompanied housing units to be constructed

under this subchapter.

‘‘(b) LEASE TERMS.—A contract under this section may be for

any period that the Secretary concerned determines appropriate

and may provide for the owner of the leased property to operate

and maintain the property.

‘‘§ 2875. Investments in nongovernmental entities

‘‘(a) INVESTMENTS AUTHORIZED.—The Secretary concerned may

make investments in nongovernmental entities carrying out projects

for the acquisition or construction of housing units suitable for

use as military family housing or as military unaccompanied

housing.

‘‘(b) FORMS OF INVESTMENT.—An investment under this section

may take the form of an acquisition of a limited partnership interest

by the United States, a purchase of stock or other equity

instruments by the United States, a purchase of bonds or other

debt instruments by the United States, or any combination of

such forms of investment.

‘‘(c) LIMITATION ON VALUE OF INVESTMENT.—(1) The cash

amount of an investment under this section in a nongovernmental

entity may not exceed an amount equal to 331⁄3 percent of the

capital cost (as determined by the Secretary concerned) of the

project or projects that the entity proposes to carry out under

this section with the investment.

‘‘(2) If the Secretary concerned conveys land or facilities to

a nongovernmental entity as all or part of an investment in the

entity under this section, the total value of the investment by

the Secretary under this section may not exceed an amount equal

to 45 percent of the capital cost (as determined by the Secretary)

of the project or projects that the entity proposes to carry out

under this section with the investment.

‘‘(3) In this subsection, the term ‘capital cost’, with respect

to a project for the acquisition or construction of housing, means

the total amount of the costs included in the basis of the housing

for Federal income tax purposes.

‘‘(d) COLLATERAL INCENTIVE AGREEMENTS.—The Secretary concerned shall enter into collateral incentive agreements with nongovernmental entities in which the Secretary makes an investment

under this section to ensure that a suitable preference will be

afforded members of the armed forces and their dependents in

the lease or purchase, as the case may be, of a reasonable number

of the housing units covered by the investment.

‘‘§ 2876. Rental guarantees

‘‘The Secretary concerned may enter into agreements with private persons that acquire or construct military family housing units

or military unaccompanied housing units under this subchapter

in order to assure—

‘‘(1) the occupancy of such units at levels specified in the

agreements; or

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 547

‘‘(2) rental income derived from rental of such units at

levels specified in the agreements.

‘‘§ 2877. Differential lease payments

‘‘Pursuant to an agreement entered into by the Secretary concerned and a private lessor of military family housing or military

unaccompanied housing to members of the armed forces, the Secretary may pay the lessor an amount in addition to the rental

payments for the housing made by the members as the Secretary

determines appropriate to encourage the lessor to make the housing

available to members of the armed forces as military family housing

or as military unaccompanied housing.

‘‘§ 2878. Conveyance or lease of existing property and

facilities

‘‘(a) CONVEYANCE OR LEASE AUTHORIZED.—The Secretary concerned may convey or lease property or facilities (including ancillary

supporting facilities) to private persons for purposes of using the

proceeds of such conveyance or lease to carry out activities under

this subchapter.

‘‘(b) INAPPLICABILITY TO PROPERTY AT INSTALLATION APPROVED

FOR CLOSURE.—The authority of this section does not apply to

property or facilities located on or near a military installation

approved for closure under a base closure law.

‘‘(c) TERMS AND CONDITIONS.—(1) The conveyance or lease of

property or facilities under this section shall be for such consideration and upon such terms and conditions as the Secretary concerned considers appropriate for the purposes of this subchapter

and to protect the interests of the United States.

‘‘(2) As part or all of the consideration for a conveyance or

lease under this section, the purchaser or lessor (as the case may

be) shall enter into an agreement with the Secretary to ensure

that a suitable preference will be afforded members of the armed

forces and their dependents in the lease or sublease of a reasonable

number of the housing units covered by the conveyance or lease,

as the case may be, or in the lease of other suitable housing

units made available by the purchaser or lessee. ‘‘(d) INAPPLICABILITY OF CERTAIN PROPERTY MANAGEMENT

LAWS.—The conveyance or lease of property or facilities under

this section shall not be subject to the following provisions of

law:

‘‘(1) Section 2667 of this title.

‘‘(2) The Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.).

‘‘(3) Section 321 of the Act of June 30, 1932 (commonly known as the Economy Act) (40 U.S.C. 303b). ‘‘(4) Section 501 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11401).

‘‘§ 2879. Interim leases

‘‘Pending completion of a project to acquire or construct military

family housing units or military unaccompanied housing units

under this subchapter, the Secretary concerned may provide for

the interim lease of such units of the project as are complete.

The term of a lease under this section may not extend beyond

the date of the completion of the project concerned.

110 STAT. 548 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘§ 2880. Unit size and type

‘‘(a) CONFORMITY WITH SIMILAR HOUSING UNITS IN LOCALE.—

The Secretary concerned shall ensure that the room patterns and

floor areas of military family housing units and military unaccompanied housing units acquired or constructed under this subchapter

are generally comparable to the room patterns and floor areas

of similar housing units in the locality concerned.

‘‘(b) INAPPLICABILITY OF LIMITATIONS ON SPACE BY PAY

GRADE.—(1) Section 2826 of this title shall not apply to military

family housing units acquired or constructed under this subchapter.

‘‘(2) The regulations prescribed under section 2856 of this title

shall not apply to any military unaccompanied housing unit

acquired or constructed under this subchapter unless the unit is

located on a military installation.

‘‘§ 2881. Ancillary supporting facilities

‘‘Any project for the acquisition or construction of military

family housing units or military unaccompanied housing units

under this subchapter may include the acquisition or construction

of ancillary supporting facilities for the housing units concerned.

‘‘§ 2882. Assignment of members of the armed forces to housing units

‘‘(a) IN GENERAL.—The Secretary concerned may assign members of the armed forces to housing units acquired or constructed

under this subchapter.

‘‘(b) EFFECT OF CERTAIN ASSIGNMENTS ON ENTITLEMENT TO

HOUSING ALLOWANCES.—(1) Except as provided in paragraph (2),

housing referred to in subsection (a) shall be considered as quarters

of the United States or a housing facility under the jurisdiction

of a uniformed service for purposes of section 403(b) of title 37.

‘‘(2) A member of the armed forces who is assigned in accordance with subsection (a) to a housing unit not owned or leased

by the United States shall be entitled to a basic allowance for

quarters under section 403 of title 37 and, if in a high housing

cost area, a variable housing allowance under section 403a of that

title.

‘‘(c) LEASE PAYMENTS THROUGH PAY ALLOTMENTS.—The Secretary concerned may require members of the armed forces who

lease housing in housing units acquired or constructed under this

subchapter to make lease payments for such housing pursuant

to allotments of the pay of such members under section 701 of

title 37.

‘‘§ 2883. Department of Defense Housing Funds

‘‘(a) ESTABLISHMENT.—There are hereby established on the

books of the Treasury the following accounts:

‘‘(1) The Department of Defense Family Housing Improvement Fund.

‘‘(2) The Department of Defense Military Unaccompanied

Housing Improvement Fund.

‘‘(b) COMMINGLING OF FUNDS PROHIBITED.—(1) The Secretary

of Defense shall administer each Fund separately.

‘‘(2) Amounts in the Department of Defense Family Housing

Improvement Fund may be used only to carry out activities under

this subchapter with respect to military family housing.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 549

‘‘(3) Amounts in the Department of Defense Military Unaccompanied Housing Improvement Fund may be used only to carry

out activities under this subchapter with respect to military

unaccompanied housing.

‘‘(c) CREDITS TO FUNDS.—(1) There shall be credited to the

Department of Defense Family Housing Improvement Fund the

following:

‘‘(A) Amounts authorized for and appropriated to that Fund.

‘‘(B) Subject to subsection (f), any amounts that the Secretary of Defense transfers, in such amounts as provided in

appropriation Acts, to that Fund from amounts authorized and

appropriated to the Department of Defense for the acquisition

or construction of military family housing.

‘‘(C) Proceeds from the conveyance or lease of property

or facilities under section 2878 of this title for the purpose

of carrying out activities under this subchapter with respect

to military family housing.

‘‘(D) Income derived from any activities under this subchapter with respect to military family housing, including

interest on loans made under section 2873 of this title, income

and gains realized from investments under section 2875 of

this title, and any return of capital invested as part of such

investments.

‘‘(2) There shall be credited to the Department of Defense

Military Unaccompanied Housing Improvement Fund the following:

‘‘(A) Amounts authorized for and appropriated to that Fund.

‘‘(B) Subject to subsection (f), any amounts that the Secretary of Defense transfers, in such amounts as provided in

appropriation Acts, to that Fund from amounts authorized and

appropriated to the Department of Defense for the acquisition

or construction of military unaccompanied housing.

‘‘(C) Proceeds from the conveyance or lease of property

or facilities under section 2878 of this title for the purpose

of carrying out activities under this subchapter with respect

to military unaccompanied housing.

‘‘(D) Income derived from any activities under this subchapter with respect to military unaccompanied housing,

including interest on loans made under section 2873 of this

title, income and gains realized from investments under section

2875 of this title, and any return of capital invested as part

of such investments.

‘‘(d) USE OF AMOUNTS IN FUNDS.—(1) In such amounts as

provided in appropriation Acts and except as provided in subsection

(e), the Secretary of Defense may use amounts in the Department

of Defense Family Housing Improvement Fund to carry out activities under this subchapter with respect to military family housing,

including activities required in connection with the planning, execution, and administration of contracts entered into under the authority of this subchapter.

‘‘(2) In such amounts as provided in appropriation Acts and

except as provided in subsection (e), the Secretary of Defense may

use amounts in the Department of Defense Military Unaccompanied

Housing Improvement Fund to carry out activities under this subchapter with respect to military unaccompanied housing, including

activities required in connection with the planning, execution, and

administration of contracts entered into under the authority of

this subchapter.

110 STAT. 550 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(3) Amounts made available under this subsection shall remain

available until expended. The Secretary of Defense may transfer

amounts made available under this subsection to the Secretaries

of the military departments to permit such Secretaries to carry

out the activities for which such amounts may be used.

‘‘(e) LIMITATION ON OBLIGATIONS.—The Secretary may not incur

an obligation under a contract or other agreement entered into

under this subchapter in excess of the unobligated balance, at

the time the contract is entered into, of the Fund required to

be used to satisfy the obligation.

‘‘(f) NOTIFICATION REQUIRED FOR TRANSFERS.—A transfer of

appropriated amounts to a Fund under paragraph (1)(B) or (2)(B)

of subsection (c) 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.

‘‘(g) LIMITATION ON AMOUNT OF BUDGET AUTHORITY.—The total

value in budget authority of all contracts and investments undertaken using the authorities provided in this subchapter shall not

exceed—

‘‘(1) $850,000,000 for the acquisition or construction of military family housing; and

‘‘(2) $150,000,000 for the acquisition or construction of military unaccompanied housing.

‘‘§ 2884. Reports

‘‘(a) PROJECT REPORTS.—(1) The Secretary of Defense shall

transmit to the appropriate committees of Congress a report

describing—

‘‘(A) each contract for the acquisition or construction of

family housing units or unaccompanied housing units that the

Secretary proposes to solicit under this subchapter; and

‘‘(B) each conveyance or lease proposed under section 2878

of this title.

‘‘(2) The report shall describe the proposed contract, conveyance,

or lease and the intended method of participation of the United

States in the contract, conveyance, or lease and provide a justification of such method of participation. The report shall be submitted

not later than 30 days before the date on which the Secretary

issues the contract solicitation or offers the conveyance or lease.

‘‘(b) ANNUAL REPORTS.—The Secretary of Defense shall include

each year in the materials that the Secretary submits to Congress

in support of the budget submitted by the President pursuant

to section 1105 of title 31 the following:

‘‘(1) A report on the expenditures and receipts during the

preceding fiscal year covering the Funds established under

section 2883 of this title.

‘‘(2) A methodology for evaluating the extent and effectiveness of the use of the authorities under this subchapter during

such preceding fiscal year.

‘‘(3) A description of the objectives of the Department of

Defense for providing military family housing and military

unaccompanied housing for members of the armed forces.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 551

‘‘§ 2885. Expiration of authority

‘‘The authority to enter into a contract under this subchapter shall expire five years after the date of the enactment of the

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

(2) The table of subchapters at the beginning of such chapter is amended by inserting after the item relating to subchapter III

the following new item:

‘‘IV. Alternative Authority for Acquisition and Improvement of Military

Housing ..................................................................................................... 2871’’.

(b) FINAL REPORT.—Not later than March 1, 2000, the Secretary of Defense shall submit to the congressional defense committees

a report on the use by the Secretary of Defense and the Secretaries

of the military departments of the authorities provided by subchapter IV of chapter 169 of title 10, United States Code, as added

by subsection (a). The report shall assess the effectiveness of such

authority in providing for the construction and improvement of

military family housing and military unaccompanied housing.

SEC. 2802. EXPANSION OF AUTHORITY FOR LIMITED PARTNERSHIPS

FOR DEVELOPMENT OF MILITARY FAMILY HOUSING.

(a) PARTICIPATION OF OTHER MILITARY DEPARTMENTS.—(1) Subsection (a)(1) of section 2837 of title 10, United States Code, is

amended by striking out ‘‘of the naval service’’ and inserting in

lieu thereof ‘‘of the armed forces’’.

(2) Subsection (b)(1) of such section is amended by striking out ‘‘of the naval service’’ and inserting in lieu thereof ‘‘of the

armed forces’’.

(b) ADMINISTRATION.—(1) Subsection (a)(1) of such section is

further amended by striking out ‘‘the Secretary of the Navy’’ in

the first sentence and inserting in lieu thereof ‘‘the Secretary of

a military department’’. (2) Subsections (a)(2), (b), (c), (g), and (h) of such section are amended by striking out ‘‘Secretary’’ each place it appears and

inserting in lieu thereof ‘‘Secretary concerned’’. (c) ACCOUNT.—Subsection (d) of such section is amended to

read as follows:

‘‘(d) ACCOUNT.—(1) There is hereby established on the books of the Treasury an account to be known as the ‘Defense Housing

Investment Account’.

‘‘(2) There shall be deposited into the Account— ‘‘(A) such funds as may be authorized for and appropriated to the Account;

‘‘(B) any proceeds received by the Secretary concerned from the repayment of investments or profits on investments of

the Secretary under subsection (a); and ‘‘(C) any unobligated balances which remain in the Navy Housing Investment Account as of the date of the enactment

of the National Defense Authorization Act for Fiscal Year 1996.

‘‘(3) From such amounts as are provided in advance in appropriation Acts, funds in the Account shall be available to the Secretaries concerned in amounts determined by the Secretary of

Defense for contracts, investments, and expenses necessary for the

implementation of this section. ‘‘(4) The Secretary concerned may not enter into a contract in connection with a limited partnership under subsection (a) or

a collateral incentive agreement under subsection (b) unless a sufficient amount of the unobligated balance of the funds in the Account

Nomenclature.

10 USC 2884

note.

110 STAT. 552 PUBLIC LAW 104–106—FEB. 10, 1996

is available to the Secretary, as of the time the contract is entered

into, to satisfy the total obligations to be incurred by the United

States under the contract.’’.

(d) TERMINATION OF NAVY HOUSING INVESTMENT BOARD.—Such

section is further amended—

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

(2) in subsection (h)—

(A) by striking out ‘‘AUTHORITIES’’ in the subsection

heading and inserting in lieu thereof ‘‘AUTHORITY’’;

(B) by striking out ‘‘(1)’’; and

(C) by striking out paragraph (2).

(e) REPORT.—Subsection (f) of such section is amended—

(1) by striking out ‘‘the Secretary carries out activities’’

and inserting in lieu thereof ‘‘activities are carried out’’; and

(2) by striking out ‘‘the Secretary shall’’ and inserting in

lieu thereof ‘‘the Secretaries concerned shall jointly’’.

(f) EXTENSION OF AUTHORITY.—Subsection (h) of such section

is further amended by striking out ‘‘September 30, 1999’’ and inserting in lieu thereof ‘‘September 30, 2000’’.

(g) CONFORMING AMENDMENT.—Subsection (g) of such section

is further amended by striking out ‘‘NAVY’’ in the subsection

heading.

Subtitle B—Other Military Construction

Program and Military Family Housing

Changes

SEC. 2811. SPECIAL THRESHOLD FOR UNSPECIFIED MINOR

CONSTRUCTION PROJECTS TO CORRECT LIFE, HEALTH,

OR SAFETY DEFICIENCIES.

(a) SPECIAL THRESHOLD.—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 deficiency that is life-threatening,

health-threatening, or safety-threatening, 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 ‘‘not more than— ‘‘(A) $1,000,000, in the case of an unspecified military

construction project intended solely to correct a deficiency that

is life-threatening, health-threatening, or safety-threatening;

or

‘‘(B) $300,000, in the case of any other unspecified military

construction project.’’.

(b) TECHNICAL AMENDMENT.—Section 2861(b)(6) of such title

is amended by striking out ‘‘section 2805(a)(2)’’ and inserting in

lieu thereof ‘‘section 2805(a)(1)’’.

SEC. 2812. CLARIFICATION OF SCOPE OF UNSPECIFIED MINOR

CONSTRUCTION AUTHORITY.

Section 2805(a)(1) of title 10, United States Code, as amended

by section 2811 of this Act, is further amended by striking out

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 553

‘‘(1) that is for a single undertaking at a military installation,

and (2)’’ in the second sentence.

SEC. 2813. TEMPORARY AUTHORITY TO WAIVE NET FLOOR AREA

LIMITATION FOR FAMILY HOUSING ACQUIRED IN LIEU

OF CONSTRUCTION.

Section 2824(c) of title 10, United States Code, is amended

by adding at the end the following new sentence: ‘‘The Secretary

concerned may waive the limitation set forth in the preceding

sentence to family housing units acquired under this section during

the five-year period beginning on the date of the enactment of

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

SEC. 2814. REESTABLISHMENT OF AUTHORITY TO WAIVE NET FLOOR

AREA LIMITATION ON ACQUISITION BY PURCHASE OF

CERTAIN MILITARY FAMILY HOUSING.

Section 2826(e) of title 10, United States Code, is amended

by striking out the second sentence.

SEC. 2815. TEMPORARY AUTHORITY TO WAIVE LIMITATIONS ON

SPACE BY PAY GRADE FOR MILITARY FAMILY HOUSING

UNITS.

Section 2826 of title 10, United States Code, is amended by

adding at the end the following new subsection:

‘‘(i)(1) The Secretary concerned may waive the provisions of

subsection (a) with respect to military family housing units constructed, acquired, or improved during the five-year period beginning on the date of the enactment of the National Defense

Authorization Act for Fiscal Year 1996.

‘‘(2) The total number of military family housing units constructed, acquired, or improved during any fiscal year in the period

referred to in paragraph (1) shall be the total number of such

units authorized by law for that fiscal year.’’.

SEC. 2816. 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. 2817. CLARIFICATION OF SCOPE OF REPORT REQUIREMENT ON

COST INCREASES UNDER CONTRACTS FOR MILITARY

FAMILY HOUSING CONSTRUCTION.

Subsection (d) of section 2853 of title 10, United States Code,

is amended to read as follows:

‘‘(d) The limitation on cost increases in subsection (a) does

not apply to the settlement of a contractor claim under a contract.’’.

SEC. 2818. AUTHORITY TO CONVEY DAMAGED OR DETERIORATED

MILITARY FAMILY HOUSING.

(a) AUTHORITY.—(1) Subchapter III of chapter 169 of title 10,

United States Code, is amended by inserting after section 2854

the following new section:

110 STAT. 554 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘§ 2854a. Conveyance of damaged or deteriorated military family housing; use of proceeds

‘‘(a) AUTHORITY TO CONVEY.—(1) The Secretary concerned may convey any family housing facility that, due to damage or deterioration, is in a condition that is uneconomical to repair. Any conveyance

of a family housing facility under this section may include a conveyance of the real property associated with the facility conveyed. ‘‘(2) The authority of this section does not apply to family housing facilities located at military installations approved for closure under a base closure law or family housing facilities located

at an installation outside the United States at which the Secretary

of Defense terminates operations. ‘‘(3) The aggregate total value of the family housing facilities conveyed by the Department of Defense under the authority in

this subsection in any fiscal year may not exceed $5,000,000. ‘‘(4) For purposes of this subsection, a family housing facility is in a condition that is uneconomical to repair if the cost of

the necessary repairs for the facility would exceed the amount

equal to 70 percent of the cost of constructing a family housing

facility to replace such facility. ‘‘(b) CONSIDERATION.—(1) As consideration for the conveyance of a family housing facility under subsection (a), the person to

whom the facility is conveyed shall pay the United States an amount

equal to the fair market value of the facility conveyed, including

any real property conveyed along with the facility. ‘‘(2) The Secretary concerned shall determine the fair market value of any family housing facility and associated real property

that is conveyed under subsection (a). Such determination shall

be final.

‘‘(c) NOTICE AND WAIT REQUIREMENTS.—The Secretary con- cerned may not enter into an agreement to convey a family housing

facility under this section until— ‘‘(1) the Secretary submits to the appropriate committees of Congress, in writing, a justification for the conveyance under

the agreement, including— ‘‘(A) an estimate of the consideration to be provided

the United States under the agreement; ‘‘(B) an estimate of the cost of repairing the family housing facility to be conveyed; and ‘‘(C) an estimate of the cost of replacing the family housing facility to be conveyed; and

‘‘(2) a period of 21 calendar days has elapsed after the

date on which the justification is received by the committees.

‘‘(d) INAPPLICABILITY OF CERTAIN PROPERTY DISPOSAL LAWS.— The following provisions of law do not apply to the conveyance

of a family housing facility under this section: ‘‘(1) The Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.).

‘‘(2) Title V of the Stewart B. McKinney Homeless Assist- ance Act (42 U.S.C. 11411 et seq.).

‘‘(e) USE OF PROCEEDS.—(1) The proceeds of any conveyance

of a family housing facility under this section shall be credited

to the appropriate fund established under section 2883 of this

title and shall be available—

‘‘(A) to construct family housing units to replace the family

housing facility conveyed under this section, but only to the

extent that the number of units constructed with such proceeds

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 555

does not exceed the number of units of military family housing

of the facility conveyed;

‘‘(B) to repair or restore existing military family housing;

and

‘‘(C) to reimburse the Secretary concerned for the costs

incurred by the Secretary in conveying the family housing

facility.

‘‘(2) Notwithstanding section 2883(d) of this title, proceeds

derived from a conveyance of a family housing facility under this

section shall be available under paragraph (1) without any further

appropriation.

‘‘(f) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of any family housing facility conveyed under this section, including any real property associated with such facility, shall

be determined by such means as the Secretary concerned considers

satisfactory, including by survey in the case of real property.

‘‘(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary concerned may require such additional terms and conditions in connection with the conveyance of family housing facilities under this

section as the Secretary considers appropriate to protect the

interests of the United States.’’.

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

is amended by inserting after the item relating to section 2854

the following new item:

‘‘2854a. Conveyance of damaged or deteriorated military family housing; use of proceeds.’’.

(b) CONFORMING AMENDMENT.—Section 204(h) of the Federal

Property and Administrative Services Act of 1949 (40 U.S.C. 485(h))

is amended—

(1) by redesignating paragraph (4) as paragraph (5); and

(2) by inserting after paragraph (3) the following new paragraph (4):

‘‘(4) This subsection does not apply to damaged or deteriorated

military family housing facilities conveyed under section 2854a

of title 10, United States Code.’’.

SEC. 2819. ENERGY AND WATER CONSERVATION SAVINGS FOR THE

DEPARTMENT OF DEFENSE.

(a) INCLUSION OF WATER EFFICIENT MAINTENANCE IN ENERGY

PERFORMANCE PLAN.—Paragraph (3) of section 2865(a) of title 10,

United States Code, is amended by striking out ‘‘energy efficient

maintenance’’ and inserting in lieu thereof ‘‘energy efficient maintenance or water efficient maintenance’’.

(b) SCOPE OF TERM.—Paragraph (4) of such section is

amended—

(1) in the matter preceding subparagraph (A), by striking

out ‘‘ ‘energy efficient maintenance’ ’’ and inserting in lieu

thereof ‘‘ ‘energy efficient maintenance or water efficient

maintenance’ ’’;

(2) in subparagraph (A), by striking out ‘‘systems or industrial processes,’’ in the matter preceding clause (i) and inserting

in lieu thereof ‘‘systems, industrial processes, or water efficiency

applications,’’; and

(3) in subparagraph (B), by inserting ‘‘or water cost savings’’

before the period at the end.

110 STAT. 556 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 2820. EXTENSION OF AUTHORITY TO ENTER INTO LEASES OF

LAND FOR SPECIAL OPERATIONS ACTIVITIES.

(a) EXTENSION OF AUTHORITY.—Subsection (d) of section 2680

of title 10, United States Code, is amended in the first sentence

by striking out ‘‘September 30, 1995’’ and inserting in lieu thereof

‘‘September 30, 2000’’.

(b) REPORTING REQUIREMENT.—Such section is further amended

by adding at the end the following new subsection:

‘‘(e) REPORTS.—Not later than March 1 of each year, the Secretary of Defense shall submit to the Committee on the Armed

Services of the Senate and the Committee on National Security

of the House of Representatives a report that—

‘‘(1) identifies each leasehold interest acquired during the

previous fiscal year under subsection (a); and

‘‘(2) contains a discussion of each project for the construction or modification of facilities carried out pursuant to subsection (c) during such fiscal year.’’.

(c) CONFORMING REPEAL.—Section 2863 of the National Defense

Authorization Act for Fiscal Years 1992 and 1993 (Public Law

102–190; 10 U.S.C. 2680 note) is amended by striking out subsection

(b).

SEC. 2821. 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. 2822. 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

38 USC 101 note.

Military Housing

Assistance Act of

1995.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 557

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), (6), or (10) of section 3710(a)

of this title.

‘‘(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;

‘‘(2) the individual submits an application for a loan guaran- teed 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 mort38 USC 3708

note.

110 STAT. 558 PUBLIC LAW 104–106—FEB. 10, 1996

gagees under section 3708 of title 38, United States Code,

as added by subsection (b). (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 March 30, 1998, the Secretary

shall submit to Congress a report regarding the effectiveness

of the authority provided in section 3708 of title 38, United

States Code, in ensuring that members of the Armed Forces

and their dependents have access to suitable housing. The

report shall include the recommendations of the Secretary

regarding whether the authority provided in this subsection

should be extended beyond the date specified in paragraph

(5).

(4) EARMARK.—Of the amount provided in section

2405(a)(11)(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 C—Defense Base Closure and

Realignment

SEC. 2831. 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 account established

under 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)(7) 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 ‘‘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’’.

10 USC 2687

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 559

SEC. 2832. IN-KIND CONSIDERATION FOR LEASES AT INSTALLATIONS

TO BE CLOSED OR REALIGNED.

Section 2667(f) of title 10, United States Code, is amended

by adding at the end the following new paragraph:

‘‘(4) The Secretary concerned may accept under subsection (b)(5)

services of a lessee for an entire installation to be closed or realigned

under a base closure law, or for any part of such installation,

without regard to the requirement in subsection (b)(5) that a

substantial part of the installation be leased.’’.

SEC. 2833. INTERIM LEASES OF PROPERTY APPROVED FOR CLOSURE

OR REALIGNMENT.

Section 2667(f) of title 10, United States Code, is amended

by adding after paragraph (4), as added by section 2832 of this

Act, the following new paragraph: ‘‘(5)(A) Notwithstanding the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), the scope of any environmental

impact analysis necessary to support an interim lease of property

under this subsection shall be limited to the environmental consequences of activities authorized under the proposed lease and

the cumulative impacts of other past, present, and reasonably

foreseeable future actions during the period of the proposed lease. ‘‘(B) Interim leases entered into under this subsection shall

be deemed not to prejudice the final disposal decision with respect

to the property, even if final disposal of the property is delayed

until completion of the term of the interim lease. An interim lease

under this subsection shall not be entered into without prior consultation with the redevelopment authority concerned. ‘‘(C) Subparagraphs (A) and (B) shall not apply to an interim

lease under this subsection if authorized activities under the lease

would—

‘‘(i) significantly affect the quality of the human environment; or

‘‘(ii) irreversibly alter the environment in a way that would

preclude any reasonable disposal alternative of the property

concerned.’’.

SEC. 2834. AUTHORITY TO LEASE PROPERTY REQUIRING ENVIRONMENTAL REMEDIATION AT INSTALLATIONS APPROVED

FOR CLOSURE OR REALIGNMENT.

Section 120(h)(3) of the Comprehensive Environmental

Response, Compensation, and Liability Act of 1980 (42 U.S.C.

9620(h)(3)) is amended in the matter following subparagraph (C)—

(1) by striking out the first sentence; and

(2) by adding at the end, flush to the paragraph margin,

the following:

‘‘The requirements of subparagraph (B) shall not apply in any

case in which the person or entity to whom the real property

is transferred is a potentially responsible party with respect

to such property. The requirements of subparagraph (B) shall

not apply in any case in which the transfer of the property

occurs or has occurred by means of a lease, without regard

to whether the lessee has agreed to purchase the property

or whether the duration of the lease is longer than 55 years.

In the case of a lease entered into after September 30, 1995,

with respect to real property located at an installation approved

for closure or realignment under a base closure law, the agency

110 STAT. 560 PUBLIC LAW 104–106—FEB. 10, 1996

leasing the property, in consultation with the Administrator,

shall determine before leasing the property that the property

is suitable for lease, that the uses contemplated for the lease

are consistent with protection of human health and the environment, and that there are adequate assurances that the United

States will take all remedial action referred to in subparagraph

(B) that has not been taken on the date of the lease.’’.

SEC. 2835. FINAL FUNDING FOR DEFENSE BASE CLOSURE AND

REALIGNMENT COMMISSION.

Section 2902(k) 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 paragraph:

‘‘(3)(A) The Secretary may transfer not more than $300,000

from unobligated funds in the account referred to in subparagraph

(B) for the purpose of assisting the Commission in carrying out

its duties under this part during October, November, and December

1995. Funds transferred under the preceding sentence shall remain

available until December 31, 1995.

‘‘(B) The account referred to in subparagraph (A) is the Department of Defense Base Closure 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).’’.

SEC. 2836. EXERCISE OF AUTHORITY DELEGATED BY THE ADMINISTRATOR OF GENERAL SERVICES.

Section 2905(b)(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. 2687 note) is amended—

(1) in subparagraph (A)—

(A) by striking out ‘‘Subject to subparagraph (C)’’ in

the matter preceding clause (i) and inserting in lieu thereof

‘‘Subject to subparagraph (B)’’; and

(B) by striking out ‘‘in effect on the date of the enactment of this Act’’ each place it appears in clauses (i) and

(ii);

(2) by striking out subparagraphs (B) and (C) and inserting

in lieu thereof the following new subparagraph (B):

‘‘(B) The Secretary may, with the concurrence of the Administrator of General Services—

‘‘(i) prescribe general policies and methods for utilizing

excess property and disposing of surplus property pursuant

to the authority delegated under paragraph (1); and

‘‘(ii) issue regulations relating to such policies and methods,

which shall supersede the regulations referred to in subparagraph (A) with respect to that authority.’’; and

(3) by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively.

SEC. 2837. LEASE BACK OF PROPERTY DISPOSED FROM INSTALLATIONS APPROVED FOR CLOSURE OR REALIGNMENT.

(a) AUTHORITY.—Section 2905(b)(4) 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—

(1) by redesignating subparagraphs (C), (D), and (E) as

subparagraphs (D), (E), and (F), respectively; and

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 561

(2) by inserting after subparagraph (B) the following new subparagraph (C):

‘‘(C)(i) The Secretary may transfer real property at an installa- tion approved for closure or realignment under this part (including

property at an installation approved for realignment which will

be retained by the Department of Defense or another Federal agency

after realignment) to the redevelopment authority for the installation if the redevelopment authority agrees to lease, directly upon

transfer, one or more portions of the property transferred under

this subparagraph to the Secretary or to the head of another department or agency of the Federal Government. Subparagraph (B) shall

apply to a transfer under this subparagraph.

‘‘(ii) A lease under clause (i) shall be for a term of not to

exceed 50 years, but may provide for options for renewal or extension of the term by the department or agency concerned.

‘‘(iii) A lease under clause (i) may not require rental payments

by the United States.

‘‘(iv) A lease under clause (i) shall include a provision specifying

that if the department or agency concerned ceases requiring the

use of the leased property before the expiration of the term of

the lease, the remainder of the lease term may be satisfied by

the same or another department or agency of the Federal Government using the property for a use similar to the use under the

lease. Exercise of the authority provided by this clause shall be

made in consultation with the redevelopment authority concerned.’’.

(b) USE OF FUNDS TO IMPROVE LEASED PROPERTY.—Notwithstanding any other provision of law, a department or agency of

the Federal Government that enters into a lease of property under

section 2905(b)(4)(C) 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 amended by subsection (a), may improve

the leased property using funds appropriated or otherwise available

to the department or agency for such purpose.

SEC. 2838. IMPROVEMENT OF BASE CLOSURE AND REALIGNMENT

PROCESS REGARDING DISPOSAL OF PROPERTY.

(a) APPLICABILITY.—Subparagraph (A) of section 2905(b)(7) 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 to read as follows:

‘‘(A) The disposal of buildings and property located at installations approved for closure or realignment under this part after

October 25, 1994, shall be carried out in accordance with this

paragraph rather than paragraph (6).’’.

(b) AGREEMENTS UNDER REDEVELOPMENT PLANS.—Subparagraph (F)(ii)(I) of such section is amended in the second sentence

by striking out ‘‘the approval of the redevelopment plan by the

Secretary of Housing and Urban Development under subparagraph

(H) or (J)’’ and inserting in lieu thereof ‘‘the decision regarding

the disposal of the buildings and property covered by the agreements by the Secretary of Defense under subparagraph (K) or

(L)’’.

(c) REVISION OF REDEVELOPMENT PLANS.—Subparagraph (I) of

such section is amended—

(1) in clause (i)(II), by inserting ‘‘the Secretary of Defense

and’’ before ‘‘the Secretary of Housing and Urban Development’’;

and

10 USC 2687

note.

110 STAT. 562 PUBLIC LAW 104–106—FEB. 10, 1996

(2) in clause (ii), by striking out ‘‘the Secretary of Housing

and Urban Development’’ and inserting in lieu thereof ‘‘such

Secretaries’’.

(d) DISPOSAL OF BUILDINGS AND PROPERTY.—(1) Subparagraph

(K) of such section is amended to read as follows:

‘‘(K)(i) Upon receipt of a notice under subparagraph (H)(iv)

or (J)(ii) of the determination of the Secretary of Housing and

Urban Development that a redevelopment plan for an installation

meets the requirements set forth in subparagraph (H)(i), the Secretary of Defense shall dispose of the buildings and property at

the installation.

‘‘(ii) For purposes of carrying out an environmental assessment

of the closure or realignment of an installation, the Secretary of

Defense shall treat the redevelopment plan for the installation

(including the aspects of the plan providing for disposal to State

or local governments, representatives of the homeless, and other

interested parties) as part of the proposed Federal action for the

installation.

‘‘(iii) The Secretary of Defense shall dispose of buildings and

property under clause (i) in accordance with the record of decision

or other decision document prepared by the Secretary in accordance

with the National Environmental Policy Act of 1969 (42 U.S.C.

4331 et seq.). In preparing the record of decision or other decision

document, the Secretary shall give substantial deference to the

redevelopment plan concerned.

‘‘(iv) The disposal under clause (i) of buildings and property

to assist the homeless shall be without consideration.

‘‘(v) In the case of a request for a conveyance under clause

(i) of buildings and property for public benefit under section 203(k)

of the Federal Property and Administrative Services Act of 1949

(40 U.S.C. 484(k)) or sections 47151 through 47153 of title 49,

United States Code, the sponsoring Federal agency shall use the

eligibility criteria set forth in such section or such subchapter

(as the case may be) to determine the eligibility of the applicant

and use proposed in the request for the public benefit conveyance.

The determination of such eligibility should be made before submission of the redevelopment plan concerned under subparagraph (G).’’.

(2) Subparagraph (L) of such section is amended by striking

out clauses (iii) and (iv) and inserting in lieu thereof the following

new clauses (iii) and (iv):

‘‘(iii) Not later than 90 days after the date of the receipt

of a revised plan for an installation under subparagraph (J), the

Secretary of Housing and Urban Development shall—

‘‘(I) notify the Secretary of Defense and the redevelopment

authority concerned of the buildings and property at an installation under clause (i)(IV) that the Secretary of Housing and

Urban Development determines are suitable for use to assist

the homeless; and

‘‘(II) notify the Secretary of Defense of the extent to which

the revised plan meets the criteria set forth in subparagraph

(H)(i).

‘‘(iv)(I) Upon notice from the Secretary of Housing and Urban

Development with respect to an installation under clause (iii), the

Secretary of Defense shall dispose of buildings and property at

the installation in consultation with the Secretary of Housing and

Urban Development and the redevelopment authority concerned.

Notification.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 563

‘‘(II) For purposes of carrying out an environmental assessment

of the closure or realignment of an installation, the Secretary of

Defense shall treat the redevelopment plan submitted by the

redevelopment authority for the installation (including the aspects

of the plan providing for disposal to State or local governments,

representatives of the homeless, and other interested parties) as

part of the proposed Federal action for the installation. The Secretary of Defense shall incorporate the notification of the Secretary

of Housing and Urban Development under clause (iii)(I) as part

of the proposed Federal action for the installation only to the

extent, if any, that the Secretary of Defense considers such incorporation to be appropriate and consistent with the best and highest

use of the installation as a whole, taking into consideration the

redevelopment plan submitted by the redevelopment authority.

‘‘(III) The Secretary of Defense shall dispose of buildings and

property under subclause (I) in accordance with the record of decision or other decision document prepared by the Secretary in accordance with the National Environmental Policy Act of 1969 (42 U.S.C.

4331 et seq.). In preparing the record of decision or other decision

document, the Secretary shall give deference to the redevelopment

plan submitted by the redevelopment authority for the installation.

‘‘(IV) The disposal under subclause (I) of buildings and property

to assist the homeless shall be without consideration.

‘‘(V) In the case of a request for a conveyance under subclause

(I) of buildings and property for public benefit under section 203(k)

of the Federal Property and Administrative Services Act of 1949

(40 U.S.C. 484(k)) or sections 47151 through 47153 of title 49,

United States Code, the sponsoring Federal agency shall use the

eligibility criteria set forth in such section or such subchapter

(as the case may be) to determine the eligibility of the applicant

and use proposed in the request for the public benefit conveyance.

The determination of such eligibility should be made before submission of the redevelopment plan concerned under subparagraph (G).’’.

(e) CONFORMING AMENDMENT.—Subparagraph (M)(i) of such

section is amended by inserting ‘‘or (L)’’ after ‘‘subparagraph (K)’’.

(f) CLARIFICATION OF PARTICIPANTS IN PROCESS.—Such section

is further amended by adding at the end the following new subparagraph:

‘‘(P) For purposes of this paragraph, the term ‘other interested

parties’, in the case of an installation, includes any parties eligible

for the conveyance of property of the installation under section

203(k) of the Federal Property and Administrative Services Act

of 1949 (40 U.S.C. 484(k)) or sections 47151 through 47153 of

title 49, United States Code, whether or not the parties assist

the homeless.’’.

SEC. 2839. AGREEMENTS FOR CERTAIN SERVICES AT INSTALLATIONS

BEING CLOSED.

(a) 1988 LAW.—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 servVerDate 07-FEB-96 03:34 Mar 05, 1996 Jkt 029139 PO 00106 Frm 00379 Fmt 6580 Sfmt 6581 PUBL106.104 apps06
110 STAT. 564 PUBLIC LAW 104–106—FEB. 10, 1996

ices, 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 agreements is in the best interests of the Department

of Defense.’’.

(b) 1990 LAW.—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 agreements is in the best interests of the Department

of Defense.’’.

SEC. 2840. AUTHORITY TO TRANSFER PROPERTY AT MILITARY

INSTALLATIONS TO BE CLOSED TO PERSONS WHO CONSTRUCT OR PROVIDE MILITARY FAMILY HOUSING.

(a) 1988 LAW.—Section 204 of the Defense Authorization

Amendments and Base Closure and Realignment Act (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 or near an installation

closed or to be closed under this title with any person who agrees,

in exchange for the real property or facilities, to transfer to the

Secretary housing units that are constructed or provided by the

person and located at or near a military installation at which

there is a shortage of suitable housing to meet the requirements

of members of the Armed Forces and their dependents. The Secretary may not select real property for transfer under this paragraph if the property is identified in the redevelopment plan for

the installation as items essential to the reuse or redevelopment

of the installation.

‘‘(2) A transfer of real property or facilities may be made under

paragraph (1) only if—

‘‘(A) the fair market value of the housing units to be

received by the Secretary in exchange for the property or facilities to be transferred is equal to or greater than the fair

market value of such property or facilities, as determined by

the Secretary; or

‘‘(B) in the event the fair market value of the housing

units is less than the fair market value of property or facilities

to be transferred, the recipient of the property or facilities

agrees to pay to the Secretary the amount equal to the excess

of the fair market value of the property or facilities over the

fair market value of the housing units.

‘‘(3) Notwithstanding section 207(a)(7), the Secretary may

deposit funds received under paragraph (2)(B) in the Department

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 565

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) 1990 LAW.—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 or near 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 property 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) in the event the fair market value of the housing

units is less than the fair market value of property or facilities

to be transferred, the recipient of the property or facilities

agrees to pay to the Secretary the amount equal to the excess

of the fair market value of the property or facilities over the

fair market value of the housing units.

‘‘(3) Notwithstanding paragraph (2) of section 2906(a), the Secretary may 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 congressional defense

committees 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 congressional defense

committees 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

Reports.

Reports.

110 STAT. 566 PUBLIC LAW 104–106—FEB. 10, 1996

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 (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. 2841. USE OF SINGLE BASE CLOSURE AUTHORITIES FOR DISPOSAL OF PROPERTY AND FACILITIES AT FORT

HOLABIRD, MARYLAND.

(a) CONSOLIDATION OF BASE CLOSURE AUTHORITIES.—In the

case of the property and facilities at Fort Holabird, Maryland,

described in subsection (b), the Secretary of Defense shall dispose

of such property and facilities in accordance with section 2905(b)(7)

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 amended by section 2838 of this Act. (b) COVERED PROPERTY AND FACILITIES.—Subsection (a) applies

to the following property and facilities at Fort Holabird, Maryland: (1) Property and facilities that were approved for closure or realignment under title II of the Defense Authorization

Amendments and Base Closure and Realignment Act (Public

Law 100–526; 10 U.S.C. 2687 note), but have not been disposed

of as of the date of the enactment of this Act, including buildings

305 and 306 and the parking lots and other property associated

with such buildings. (2) Property and facilities that were approved in 1995

for closure or realignment under 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).

(c) USE OF SURVEYS AND OTHER EVALUATIONS OF PROPERTY.— In carrying out the disposal of the property and facilities referred

to in subsection (b)(1), the Secretary shall utilize any surveys and

other evaluations of such property and facilities that were prepared

by the Corps of Engineers before the date of the enactment of

this Act as part of the process for the disposal of such property

and facilities.

Subtitle D—Land Conveyances Generally

PART I—ARMY CONVEYANCES

SEC. 2851. 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.

10 USC 2687

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 567

(c) LEGAL DESCRIPTION.—The exact acreage and legal description of the real property to be transferred under this section shall

be determined by a survey satisfactory to the Secretary of the

Army. The cost of the survey shall be borne by the Secretary

of Veterans Affairs.

(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary of the

Army may require such additional terms and conditions in connection with the transfer under this section as the Secretary of the

Army considers appropriate to protect the interests of the United

States.

SEC. 2852. 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) LEGAL DESCRIPTION.—The exact acreage and legal description of the real property to be transferred under this section shall

be determined by a survey satisfactory to the Secretary of the

Army. The cost of the survey shall be borne by the Secretary

of Veterans Affairs.

(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary of the

Army may require such additional terms and conditions in connection with the transfer under this section as the Secretary of the

Army considers appropriate to protect the interests of the United

States.

SEC. 2853. TRANSFER OF JURISDICTION AND LAND CONVEYANCE,

FORT DEVENS MILITARY RESERVATION, MASSACHUSETTS.

(a) TRANSFER OF LAND FOR WILDLIFE REFUGE.—Subject to subsections (b) and (c), 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,

Massachusetts, that is situated south of Massachusetts State Route

2, for inclusion in the Oxbow National Wildlife Refuge.

(b) LAND CONVEYANCE.—Subject to subsection (c), 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) REQUIREMENTS RELATING TO TRANSFER AND CONVEYANCE.—

(1) The transfer under subsection (a) and the conveyance under

subsection (b) may not be made unless the property to be transferred

and conveyed is determined to be excess to the needs of the Department of Defense.

(2) The transfer and conveyance shall be made as soon as

practicable after the date on which the property is determined

to be excess to the needs of the Department of Defense.

16 USC 668dd

note.

110 STAT. 568 PUBLIC LAW 104–106—FEB. 10, 1996

(d) LEGAL DESCRIPTION.—(1) The exact acreage and legal

description of the real property to be transferred under subsection

(a) shall be determined by a survey mutually satisfactory to the

Secretary of the Army and the Secretary of the Interior. The cost

of the survey 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 a

survey mutually satisfactory to the Secretary of the Army, the

Secretary of the Interior, and the Board of Selectmen of the Town.

The cost of the survey shall be borne by the Town.

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary of the

Army may require such additional terms and conditions in connection with the transfer under subsection (a) and the conveyance

under subsection (b) as the Secretary of the Army considers appropriate to protect the interests of the United States.

SEC. 2854. MODIFICATION OF LAND CONVEYANCE, FORT BELVOIR,

VIRGINIA.

(a) DESIGNATION OF RECIPIENT.—Subsection (a) of section 2821

of the Military Construction Authorization Act for Fiscal Years

1990 and 1991 (division B of Public Law 101–189; 103 Stat. 1658)

is amended by striking out ‘‘any grantee selected in accordance

with subsection (e)’’ and inserting in lieu thereof ‘‘the County of

Fairfax, Virginia (in this section referred to as the ‘grantee’),’’.

(b) CONSIDERATION.—Subsection (b)(1) of such section is

amended by striking out subparagraph (B) and inserting in lieu

thereof the following new subparagraph:

‘‘(B) grant title, free of liens and other encumbrances,

to the Department to such facilities and, if not already

owned by the Department, to the underlying land; and’’.

(c) CONTENT OF AGREEMENT.—Subsection (c) of such section

is amended to read as follows:

‘‘(c) CONTENT OF AGREEMENT.—An agreement entered into

under this section shall include the following:

‘‘(1) A requirement that the grantee construct facilities

and make infrastructure improvements for the Department

of the Army that the Secretary determines are necessary for

the Department at Fort Belvoir and at other sites at which

activities will be relocated as a result of the conveyance made

under this section.

‘‘(2) A requirement that the construction of facilities and

infrastructure improvements referred to in paragraph (1) be

carried out in accordance with plans and specifications approved

by the Secretary.

‘‘(3) A requirement that the Secretary retain a lien or

other security interest against the property conveyed to the

grantee in the amount of the fair market value of the property,

as determined under subsection (b)(2). The agreement will

specify the terms for releasing the lien or other security

interest, in whole or in part. In the event of default by the

County on its obligations under the terms of the agreement,

the Secretary shall enforce the lien or security interest. The

proceeds obtained through enforcing the lien or security interest

may be used by the Secretary to construct facilities and make

infrastructure improvements in lieu of those provided for in

the agreement.’’.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 569

(d) SURVEYS.—Subsection (g) of such section is amended by

striking out the last sentence and inserting in lieu thereof the

following: ‘‘The grantee shall be responsible for completing any

such survey without cost to the United States.’’.

(e) CONFORMING AMENDMENTS.—Such section is further

amended—

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

(b) through (h), the’’ and inserting in lieu thereof ‘‘The’’;

(2) in subsection (b)(1), by striking out ‘‘subsection (c)(1)(D)’’

both places it appears and inserting in lieu thereof ‘‘subsection

(c)(1)(A)’’;

(3) by striking out subsections (e) and (f); and

(4) by redesignating subsections (g) and (h) as subsections

(e) and (f), respectively.

SEC. 2855. 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 (consisting of 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 acceptable

to the Secretary, a 0.39 acre parcel of real property located adjacent

to 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 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 a survey satisfactory to the Secretary. The cost of the survey 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.

Weyerhauser

Real Estate

Company.

110 STAT. 570 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 2856. LAND EXCHANGE, ARMY RESERVE CENTER, GAINESVILLE,

GEORGIA.

(a) LAND EXCHANGE AUTHORIZED.—The Secretary of the Army

may convey to the City of Gainesville, Georgia (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, together with any improvements thereon, consisting of approximately 4.2 acres and located

on Shallowford Road in Gainesville, Georgia, the site of the Army

Reserve Center, Gainesville, Georgia.

(b) CONSIDERATION.—As consideration for the conveyance

authorized by subsection (a), the City shall—

(1) convey to the United States all right, title, and interest

in and to a parcel of real property consisting of approximately

8 acres located in the Atlas Industrial Park, Gainesville, Georgia, that is acceptable to the Secretary;

(2) design and construct on such real property suitable

facilities (as determined by the Secretary) for training activities

of the Army Reserve to replace facilities conveyed under subsection (a);

(3) carry out, at cost to the City, any environmental assessments and any other studies, analyses, and assessments that

may be required under Federal law in connection with the

land conveyances under subsection (a) and paragraph (1) and

the construction under paragraph (2);

(4) pay the Secretary the amount (as determined by the

Secretary) equal to the cost of relocating Army Reserve units

from the real property to be conveyed under subsection (a)

to the replacement facilities to be constructed under paragraph

(2); and

(5) if the fair market value of the real property conveyed

by the Secretary under subsection (a) exceeds the fair market

value of the consideration provided by the City under paragraphs (1) through (4), pay the United States the amount

equal to the amount of such excess.

(c) DETERMINATION OF FAIR MARKET VALUE.—The Secretary

shall determine the fair market value of the real property to be

conveyed under subsection (a) and of the consideration to be furnished by the City under subsection (b). Such determination shall

be final.

(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the parcels of real property to be conveyed under

subsections (a) and (b) shall be determined by a survey satisfactory

to the Secretary. 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 conveyances authorized by this section as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2857. 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,

including improvements thereon, consisting of approximately 6.5

acres located at Holston Army Ammunition Plant, Tennessee. The

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 571

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 the 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. 2858. 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 the 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. 2859. 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

a portion of 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. (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 such amounts as may be necessary to cover

morale, welfare, and recreation activities at Army installations

in the general vicinity of Fort Ord during fiscal years 1996 through

2000. The amount deposited by the Secretary into the Account

shall not exceed the fair market value, as established under subsection (b), of the two Fort Ord Golf Courses conveyed under subsection (a). The Secretary shall notify Congress of the amount Notification.

110 STAT. 572 PUBLIC LAW 104–106—FEB. 10, 1996

to be deposited not later than 90 days after the date of the

conveyance. (2) The Secretary shall deposit the balance of any 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 to be conveyed under subsection

(a) shall be determined by a survey mutually 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. 2860. 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, including improvements thereon, consisting of

approximately 42 acres 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

the following services at the portion of Parks Reserve Forces Training Area retained by the Army:

(A) Relocation of the main gate of the retained 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) Enclosing and landscaping of the southern boundary

of the retained Training Area installation located northerly

of Dublin Boulevard.

(C) Enclosing and landscaping of the eastern boundary

of the retained Training Area from Dublin Boulevard to Gleason

Drive.

(D) Resurfacing of roadways within the retained Training

Area.

(E) Provision of such other services in connection with

the retained 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.

(F) Provision for and funding of 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

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 573

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 fair market value of improvements and services received

by the United States from the County under paragraph (1) must

be equal to or exceed the appraised fair market value of the real

property to be conveyed under subsection (a)(1). The appraisal

of the fair market value of the property shall be subject to the

Secretary’s 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 the 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. 2861. 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

(in this section referred to as the ‘‘City’’), 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 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 the survey shall be borne by the City.

(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. 2862. LAND CONVEYANCE, ARMY RESERVE PROPERTY, FORT

SHERIDAN, ILLINOIS.

(a) CONVEYANCE AUTHORIZED.—Subject to subsection (b), the

Secretary of the Army may convey to any transferee selected under

subsection (g) all right, title, and interest of the United States

in and to a parcel of real property (including improvements thereon)

at Fort Sheridan, Illinois, consisting of approximately 114 acres

and comprising an Army Reserve area.

(b) REQUIREMENT FOR FEDERAL SCREENING OF PROPERTY.—

The Secretary may not carry out the conveyance of property authorized by subsection (a) unless the Secretary determines that no

department or agency of the Federal Government will accept the

transfer of the property.

110 STAT. 574 PUBLIC LAW 104–106—FEB. 10, 1996

(c) CONSIDERATION.—(1) As consideration for the conveyance

under subsection (a), the transferee selected under subsection (g)

shall—

(A) convey to the United States a parcel of real property

that meets the requirements of subsection (d);

(B) design for and construct on the property conveyed under

subparagraph (A) such facilities (including support facilities

and infrastructure) to replace the facilities conveyed pursuant

to the authority in subsection (a) as the Secretary considers

appropriate; and

(C) pay the cost of relocating Army personnel in the facilities located on the real property conveyed pursuant to the

authority in subsection (a) to the facilities constructed under

subparagraph (B).

(2) The Secretary shall ensure that the fair market value of

the consideration provided by the transferee under paragraph (1)

is not less than the fair market value of the real property conveyed

by the Secretary under subsection (a).

(d) REQUIREMENTS RELATING TO PROPERTY TO BE CONVEYED

TO UNITED STATES.—The real property conveyed to the United

States under subsection (c)(1)(A) by the transferee selected under

subsection (g) shall—

(1) be located not more than 25 miles from Fort Sheridan;

(2) be located in a neighborhood or area having social

and economic conditions similar to the social and economic

conditions of the area in which Fort Sheridan is located; and

(3) be acceptable to the Secretary.

(e) INTERIM RELOCATION OF ARMY PERSONNEL.—Pending

completion of the construction of all the facilities proposed to be

constructed under subsection (c)(1)(B) by the transferee selected

under subsection (g), the Secretary may relocate Army personnel

in the facilities located on the property to be conveyed pursuant

to the authority in subsection (a) to the facilities that have been

constructed by the transferee under such subsection (c)(1)(B).

(f) DETERMINATION OF FAIR MARKET VALUE.—The Secretary

shall determine the fair market value of the real property to be

conveyed under subsection (a) and of the consideration to be provided under subsection (c)(1). Such determination shall be final.

(g) SELECTION OF TRANSFEREE.—(1) The Secretary shall use

competitive procedures for the selection of a transferee under subsection (a).

(2) In evaluating the offers of prospective transferees, the Secretary shall—

(A) consider such criteria as the Secretary considers to

be appropriate to determine whether prospective transferees

will be able to satisfy the consideration requirements specified

in subsection (c)(1); and

(B) consult with the communities and jurisdictions in the

vicinity of Fort Sheridan (including the City of Lake Forest,

the City of Highwood, and the City of Highland Park and

the County of Lake, Illinois) in order to determine the most

appropriate use of the property to be conveyed.

(h) DESCRIPTIONS OF PROPERTY.—The exact acreage and legal

descriptions of the real property to be conveyed by the Secretary

under subsection (a) and the real property to be conveyed under

subsection (c)(1)(A) shall be determined by a survey satisfactory

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 575

to the Secretary. The cost of the survey shall be borne by the

transferee selected under subsection (g). (i) 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. 2863. LAND CONVEYANCE, PROPERTY UNDERLYING CUMMINS

APARTMENT COMPLEX, FORT HOLABIRD, MARYLAND.

(a) CONVEYANCE AUTHORIZED.—Notwithstanding any other provision of law, the Secretary of the Army may convey to the

existing owner of the improvements thereon all right, title, and

interest of the United States in and to a parcel of real property

underlying the Cummins Apartment Complex at Fort Holabird,

Maryland, that consists of approximately 6 acres, and any interest

the United States may have in the improvements thereon. (b) CONSIDERATION.—As consideration for the conveyance under subsection (a), the owner of the improvements referred to in that

subsection shall provide compensation to the United States in an

amount equal to the fair market value (as determined by the

Secretary) of the property interest to be conveyed. (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 that is satisfactory to the

Secretary. (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. 2864. MODIFICATION OF EXISTING LAND CONVEYANCE, ARMY

PROPERTY, HAMILTON AIR FORCE BASE, CALIFORNIA.

(a) APPLICATION OF SECTION.—The authority provided in sub- section (b) shall apply only in the event that the purchaser purchases only a portion of the Sale Parcel referred to in section

9099 of the Department of Defense Appropriations Act, 1993 (Public

Law 102–396; 106 Stat. 1924) and exercises the purchaser’s option

to withdraw from the sale as to the rest of the Sale Parcel.

(b) CONVEYANCE AUTHORITY IN EVENT OF PARTIAL SALE.—The

Secretary of the Army may convey to the City of Novato, California

(in this section referred to as the ‘‘City’’)— (1) that portion of the Sale Parcel (other than Landfill

26 and an appropriate buffer area around it and the groundwater treatment facility site) that is not purchased as provided

in subsection (a); and

(2) any of the land referred to in subsection (e) of such section 9099 that is not purchased by the purchaser.

(c) CONSIDERATION AND CONDITIONS ON CONVEYANCE.—The

conveyance under subsection (b) shall be made as a public benefit

transfer to the City for the sum of One Dollar, subject to the

condition that the conveyed property be used for school, classroom,

or other educational purposes or as a public park or recreation

area.

(d) SUBSEQUENT CONVEYANCE BY THE CITY.—(1) If, within 10

years after the conveyance under subsection (b), the City conveys

all or any part of the conveyed property to a third party without

the use restrictions specified in subsection (c), the City shall pay

to the Secretary of the Army an amount equal to the proceeds

110 STAT. 576 PUBLIC LAW 104–106—FEB. 10, 1996

received by the City from the conveyance, minus the demonstrated

reasonable costs of making the conveyance and of any improvements

made by the City to the property following its acquisition of the

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

of the property conveyed). The Secretary of the Army shall deliver

into the applicable closing escrow an acknowledgement of receipt

of the proceeds and a release of the reverter right under subsection

(e) as to the affected land, effective upon such receipt.

(2) Until one year after the completion of the cleanup of

contaminated soil in the Landfill located on the Sale Parcel and

completion of the groundwater treatment facilities, any conveyance

by the City must be at a per-acre price for the portion sold that

is at least equal to the per-acre contract price paid by the purchaser

for the portion of the Sale Parcel purchased under the Agreement

and Modification for the purchase of the Sale Parcel by the purchaser. Thereafter, any conveyance by the City must be at a price

at least equal to the fair market value of the portion sold.

(3) This subsection shall not apply to a conveyance by the

City to another public or quasi-public agency for public uses of

the kind described in subsection (c).

(e) REVERSION.—If the Secretary of the Army determines that

the City has failed to make a payment as required by subsection

(d)(1) or that any portion of the conveyed property retained by

the City or conveyed under subsection (d)(3) is not being utilized

in accordance with subsection (c), title to the applicable portion

of such property shall revert to the United States at the election

of the Administrator of the General Services Administration.

(f) SPECIAL CONVEYANCE REGARDING BUILDING 138 PARCEL.—

The Secretary of the Army may convey to the purchaser of the

Sale Parcel the Building 138 parcel, which has been designated

by the parties as Parcel A4. The per-acre price for the portion

conveyed under this subsection shall be 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, dated

September 25, 1990, as amended.

PART II—NAVY CONVEYANCES

SEC. 2865. TRANSFER OF JURISDICTION, NAVAL WEAPONS INDUSTRIAL RESERVE PLANT, CALVERTON, NEW YORK.

(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), as amended

by section 2823 of the Military Construction Authorization Act

for Fiscal Year 1995 (division B of Public Law 103–337; 108 Stat.

3058), the Secretary of the Navy may transfer, without reimbursement, to the administrative jurisdiction of 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, New

York.

(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.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 577

(c) SURVEY.—The cost of any survey 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.

(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary of the

Navy may require such additional terms and conditions in connection with the transfer under this section as the Secretary of the

Navy considers appropriate to protect the interests of the United

States.

SEC. 2866. MODIFICATION OF LAND CONVEYANCE, NAVAL WEAPONS

INDUSTRIAL RESERVE PLANT, CALVERTON, NEW YORK.

(a) REMOVAL OF REVERSIONARY INTEREST; ADDITION OF LEASE

AUTHORITY.—Subsection (c) 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 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 services, and maintenance services provided by the

Community Development Agency for the property.’’.

(b) CONFORMING AMENDMENT.—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. 2867. 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; 107 Stat. 1896) and section 2821 of the Military Construction Authorization Act for Fiscal Year 1995 (division B of Public

Law 103–337; 108 Stat. 3057), 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 that paragraph, the Secretary

may convey, without consideration, the property described in that

paragraph to the City of Oakland, California, the Port of Oakland,

California, the City of Alameda, California, or the City of Richmond,

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. 2868. LAND CONVEYANCE, NAVAL WEAPONS INDUSTRIAL

RESERVE PLANT, MCGREGOR, TEXAS.

(a) CONVEYANCE AUTHORIZED.—(1) 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, McGregor, Texas.

110 STAT. 578 PUBLIC LAW 104–106—FEB. 10, 1996

(2) After screening the facilities, equipment, and fixtures (including special tooling and special test equipment) located on

the parcel for other uses by the Department of the Navy, the

Secretary may include in the conveyance under paragraph (1) any

facilities, equipment, and fixtures on the parcel not to be so used

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 under

paragraph (1).

(b) LEASE AUTHORITY.—Until such time as the real property

described in subsection (a)(1) is conveyed by deed, the Secretary

may lease the property, along with improvements thereon, to the

City in exchange for security services, fire protection services, and

maintenance services 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)(1) shall be determined by a survey satisfactory to the Secretary.

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 subsection (a) or a lease under subsection

(b) as the Secretary considers appropriate to protect the interests

of the United States.

SEC. 2869. LAND CONVEYANCE, NAVAL SURFACE WARFARE CENTER,

MEMPHIS, TENNESSEE.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may

convey to the Memphis and Shelby County Port Commission, Memphis, Tennessee (in this section referred to as the ‘‘Port’’), all right,

title, and interest of the United States in and to a parcel of real

property (including any improvements thereon) consisting of

approximately 26 acres that is located at the Carderock Division,

Naval Surface Warfare Center, Memphis Detachment, Presidents

Island, Memphis, Tennessee.

(b) CONSIDERATION.—As consideration for the conveyance of

real property under subsection (a), the Port shall—

(1) grant to the United States a restrictive easement in

and to a parcel of real property consisting of approximately

100 acres that is adjacent to the Memphis Detachment, Presidents Island, Memphis, Tennessee; and

(2) if the fair market value of the easement granted under

paragraph (1) is less than the fair market value of the real

property conveyed under subsection (a), provide the United

States such additional consideration as the Secretary and the

Port jointly determine appropriate so that the value of the

consideration received by the United States under this subsection is equal to or greater than the fair market value of

the real property conveyed under subsection (a).

(c) CONDITION OF CONVEYANCE.—The conveyance authorized

by subsection (a) shall be carried out in accordance with the provisions of the Land Exchange Agreement between the United States

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 579

and the Memphis and Shelby County Port Commission, Memphis,

Tennessee.

(d) DETERMINATION OF FAIR MARKET VALUE.—The Secretary

shall determine the fair market value of the real property to be

conveyed under subsection (a) and of the easement to be granted

under subsection (b)(1). Such determinations shall be final.

(e) USE OF PROCEEDS.—The Secretary shall deposit any proceeds received under subsection (b)(2) as consideration for the

conveyance of real property authorized under subsection (a) in

the special account established pursuant to section 204(h)(2) of

the Federal Property and Administrative Services Act of 1949 (40

U.S.C. 485(h)(2)).

(f) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the real property to be conveyed under subsection

(a) and the easement to be granted under subsection (b)(1) shall

be determined by a survey satisfactory to the Secretary. The cost

of the survey shall be borne by the Port.

(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the conveyance authorized by subsection (a) and the easement

granted under subsection (b)(1) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2870. LAND CONVEYANCE, NAVY PROPERTY, FORT SHERIDAN,

ILLINOIS.

(a) CONVEYANCE AUTHORIZED.—Subject to subsection (b), the

Secretary of the Navy may convey to any transferee selected under

subsection (i) all right, title, and interest of the United States

in and to a parcel of real property (including any improvements

thereon) at Fort Sheridan, Illinois, consisting of approximately 182

acres and comprising the Navy housing areas at Fort Sheridan.

(b) REQUIREMENT FOR FEDERAL SCREENING OF PROPERTY.—

The Secretary may not carry out the conveyance of property authorized by subsection (a) unless the Secretary determines that no

department or agency of the Federal Government will accept the

transfer of the property.

(c) CONSIDERATION.—(1) As consideration for the conveyance

under subsection (a), the transferee selected under subsection (i)

shall—

(A) convey to the United States a parcel of real property

that meets the requirements of subsection (d);

(B) design for and construct on the property conveyed under

subparagraph (A) such housing facilities (including support

facilities and infrastructure) to replace the housing facilities

conveyed pursuant to the authority in subsection (a) as the

Secretary considers appropriate;

(C) pay the cost of relocating members of the Armed Forces

residing in the housing facilities located on the real property

conveyed pursuant to the authority in subsection (a) to the

housing facilities constructed under subparagraph (B);

(D) provide for the education of dependents of such members under subsection (e); and

(E) carry out such activities for the operation, maintenance,

and improvement of the facilities constructed under subparagraph (B) as the Secretary and the transferee jointly determine

appropriate.

110 STAT. 580 PUBLIC LAW 104–106—FEB. 10, 1996

(2) The Secretary shall ensure that the fair market value of the consideration provided by the transferee under paragraph (1)

is not less than the fair market value of the property interest

conveyed by the Secretary under subsection (a).

(d) REQUIREMENTS RELATING TO PROPERTY TO BE CONVEYED

TO UNITED STATES.—The property interest conveyed to the United

States under subsection (c)(1)(A) by the transferee selected under

subsection (i) shall—

(1) be located not more than 25 miles from the Great

Lakes Naval Training Center, Illinois;

(2) be located in a neighborhood or area having social

and economic conditions similar to the social and economic

conditions of the area in which Fort Sheridan is located; and

(3) be acceptable to the Secretary.

(e) EDUCATION OF DEPENDENTS OF MEMBERS OF THE ARMED

FORCES.—In providing for the education of dependents of members

of the Armed Forces under subsection (c)(1)(D), the transferee

selected under subsection (i) shall ensure that such dependents

may enroll at the schools of one or more school districts in the

vicinity of the real property conveyed to the United States under

subsection (c)(1)(A) which schools and districts—

(1) meet such standards for schools and school districts

as the Secretary shall establish; and

(2) will continue to meet such standards after the enrollment of such dependents regardless of the receipt by such

school districts of Federal impact aid.

(f) INTERIM RELOCATION OF MEMBERS OF THE ARMED FORCES.—

Pending completion of the construction of all the housing facilities

proposed to be constructed under subsection (c)(1)(B) by the transferee selected under subsection (i), the Secretary may relocate—

(1) members of the Armed Forces residing in housing facilities located on the property to be conveyed pursuant to the

authority in subsection (a) to the housing facilities that have

been constructed by the transferee under such subsection

(c)(1)(B); and

(2) other Government tenants located on such property

to other facilities.

(g) APPLICABILITY OF CERTAIN AGREEMENTS.—The property conveyed by the Secretary pursuant to the authority in subsection

(a) shall be subject to the Memorandum of Understanding concerning the Transfer of Certain Properties at Fort Sheridan, Illinois,

dated August 8, 1991, between the Department of the Army and

the Department of the Navy.

(h) DETERMINATION OF FAIR MARKET VALUE.—The Secretary

shall determine the fair market value of the real property interest

to be conveyed under subsection (a) and of the consideration to

be provided under subsection (c)(1). Such determination shall be

final.

(i) SELECTION OF TRANSFEREE.—(1) The Secretary shall use

competitive procedures for the selection of a transferee under subsection (a).

(2) In evaluating the offers of prospective transferees, the Secretary shall—

(A) consider such criteria as the Secretary considers to

be appropriate to determine whether prospective transferees

will be able to satisfy the consideration requirements specified

in subsection (c)(1); and

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 581

(B) consult with the communities and jurisdictions in the

vicinity of Fort Sheridan (including the City of Lake Forest,

the City of Highwood, and the City of Highland Park and

the County of Lake, Illinois) in order to determine the most

appropriate use of the property to be conveyed.

(j) DESCRIPTIONS OF PROPERTY.—The exact acreage and legal

descriptions of the real property to be conveyed by the Secretary

under subsection (a) and the real property to be conveyed under

subsection (c)(1)(A) shall be determined by a survey satisfactory

to the Secretary. The cost of the survey shall be borne by the

transferee selected under subsection (i).

(k) 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. 2871. LAND CONVEYANCE, NAVAL COMMUNICATIONS STATION,

STOCKTON, CALIFORNIA.

(a) CONVEYANCE AUTHORIZED.—Subject to subsection (b), the

Secretary of the Navy may convey to the Port of Stockton, California

(in this section referred to as the ‘‘Port’’), all right, title, and interest

of the United States in and to a parcel of real property, including

any improvements thereon, consisting of approximately 1,450 acres

at the Naval Communication Station, Stockton, California.

(b) REQUIREMENT FOR FEDERAL SCREENING OF PROPERTY.—

The Secretary may not carry out the conveyance of property authorized by subsection (a) unless the Secretary determines that no

department or agency of the Federal Government will accept the

transfer of the property.

(c) INTERIM LEASE.—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 Port

under terms and conditions satisfactory to the Secretary.

(d) CONSIDERATION.—The conveyance may be made as a public

benefit conveyance for port development as defined in section 203

of the Federal Property and Administrative Services Act of 1949

(40 U.S.C. 484) if the Port satisfies the criteria in such section

and the regulations prescribed to implement such section. If the

Port fails to qualify for a public benefit conveyance and still desires

to acquire the property, the Port 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.

(e) FEDERAL LEASE OF CONVEYED PROPERTY.—As a condition

for transfer of this property under subparagraph (a), the Secretary

may require that the Port lease to the Department of Defense

or any other Federal agency all or any part of the property being

used by the Federal Government at the time of conveyance. Any

such lease shall be made under the same terms and conditions

as in force at the time of the conveyance. Such terms and conditions

will continue to include payment to the Port for maintenance of

facilities leased to the Federal Government. Such maintenance of

the Federal premises shall be to the reasonable satisfaction of

the United States, or as required by all applicable Federal, State,

and local laws and ordinances.

(f) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the property to be conveyed under subsection (a)

110 STAT. 582 PUBLIC LAW 104–106—FEB. 10, 1996

shall be determined by a survey satisfactory to the Secretary. The

cost of the survey shall be borne by the Port.

(g) ADDITIONAL TERMS.—The Secretary may require such additional terms and conditions in connection with the conveyance under

subsection (a) or the lease under subsection (c) as the Secretary

considers appropriate to protect the interests of the United States.

SEC. 2872. LEASE OF PROPERTY, NAVAL AIR STATION AND MARINE

CORPS AIR STATION, MIRAMAR, CALIFORNIA.

(a) LEASE AUTHORIZED.—Notwithstanding section 2692(a)(1) of

title 10, United States Code, the Secretary of the Navy may lease

to the City of San Diego, California (in this subsection referred

to as the ‘‘City’’), the parcel of real property, including improvements

thereon, described in subsection (b) in order to permit the City

to carry out activities on the parcel relating to solid waste management, including the operation and maintenance of one or more

solid waste landfills. Pursuant to the lease, the Secretary may

authorize the City to construct and operate on the parcel facilities

related to solid waste management, including a sludge processing

facility.

(b) COVERED PROPERTY.—The parcel of property to be leased

under subsection (a) is a parcel of real property consisting of

approximately 1,400 acres that is located at Naval Air Station,

Miramar, California, or Marine Corps Air Station, Miramar, California.

(c) LEASE TERM.—The lease authorized under subsection (a)

shall be for an initial term of not more than 50 years. Under

the lease, the Secretary may provide the City with an option to

extend the lease for such number of additional periods of such

length as the Secretary considers appropriate.

(d) FORM OF CONSIDERATION.—The Secretary may provide in

the lease under subsection (a) for the provision by the City of

in-kind consideration under the lease.

(e) USE OF MONEY RENTALS.—In such amounts as are provided

in advance in appropriation Acts, the Secretary may use money

rentals received by the Secretary under the lease authorized under

subsection (a) to carry out the following programs at Department

of the Navy installations that utilize the solid waste landfill or

landfills located on the leased property:

(1) Environmental programs, including natural resource

management programs, recycling programs, and pollution

prevention programs.

(2) Programs to improve the quality of military life, including programs to improve military unaccompanied housing and

military family housing.

(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the lease under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

(g) DEFINITIONS.—In this section, the terms ‘‘sludge’’, ‘‘solid

waste’’, and ‘‘solid waste management’’ have the meanings given

such terms in paragraphs (26A), (27), and (28), respectively, of

section 1004 of the Solid Waste Disposal Act (42 U.S.C. 6903).

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 583

PART III—AIR FORCE CONVEYANCES

SEC. 2874. LAND ACQUISITION OR EXCHANGE, SHAW AIR FORCE BASE,

SOUTH CAROLINA.

(a) LAND ACQUISITION.—By means of an exchange of property,

acceptance as a gift, or other means that do 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 parcel to be conveyed

by the Secretary does not exceed the fair market value of

the parcel to be acquired by the Secretary.

(c) DETERMINATIONS OF FAIR MARKET VALUE.—The Secretary

shall determine the fair market value of the parcels of real property

to be exchanged, accepted, or otherwise acquired pursuant to subsection (a) and exchanged pursuant to subsection (b). Such determinations shall be final.

(d) 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.

(e) DESCRIPTIONS OF PROPERTY.—The exact acreage and legal

descriptions of the parcels of real property to be exchanged,

accepted, or otherwise acquired pursuant to subsection (a) and

exchanged pursuant to subsection (b) shall be determined by a

survey satisfactory to the Secretary. (f) 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.

SEC. 2875. LAND CONVEYANCE, ELMENDORF AIR FORCE BASE, ALASKA.

(a) CONVEYANCE TO PRIVATE PERSON AUTHORIZED.—The Secretary of the Air Force may convey to such private person as

the Secretary considers appropriate, 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, Alaska, and identified in land lease W–95–507–ENG–58.

(b) CONSIDERATION.—As 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 the Secretary. In determining the

fair market value of the real property, the Secretary shall consider

110 STAT. 584 PUBLIC LAW 104–106—FEB. 10, 1996

the property as encumbered by land lease W–95–507–ENG–58,

with an expiration date of June 13, 2024.

(c) CONDITION OF CONVEYANCE.—The conveyance authorized

by subsection (a) shall be subject to the condition that the purchaser

of the property—

(1) permit the lease of the apartment complex located on

the property by members of the Armed Forces stationed at

Elmendorf Air Force Base and their dependents; and

(2) maintain the apartment complex in a condition suitable

for such leases.

(d) 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.

485(h)(2)).

(e) 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 the survey shall be borne by the purchaser of the

real property.

(f) 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. 2876. LAND CONVEYANCE, RADAR BOMB SCORING SITE,

FORSYTH, MONTANA.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Air Force

may convey, without consideration, to the City of Forsyth, Montana

(in this section referred to as the ‘‘City’’), all right, title, and interest

of the United States in and to the parcel of property (including

any improvements thereon) consisting of approximately 58 acres

located in Forsyth, Montana, which has served as a support complex

and recreational facilities for the Radar Bomb Scoring Site, Forsyth,

Montana.

(b) CONDITION OF CONVEYANCE.—The conveyance under subsection (a) shall be subject to the condition that the City—

(1) utilize the property and recreational facilities conveyed

under that subsection for housing and recreation purposes;

or

(2) enter into an agreement with an appropriate public

or private entity to lease such property and facilities to that

entity for such purposes.

(c) REVERSION.—If the Secretary determines at any time that

the property conveyed under subsection (a) is not being utilized

in accordance with paragraph (1) or paragraph (2) of subsection

(b), all right, title, and interest in and to the conveyed property,

including any improvements thereon, 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 property conveyed under this section shall be

determined by a survey satisfactory to the Secretary. 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

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 585

the conveyance under this section as the Secretary determines

appropriate to protect the interests of the United States.

SEC. 2877. LAND CONVEYANCE, RADAR BOMB SCORING SITE, POWELL,

WYOMING.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Air Force may convey, without consideration, to the Northwest College Board

of Trustees (in this section referred to as the ‘‘Board’’), all right,

title, and interest of the United States in and to a parcel of real

property (including any improvements thereon) consisting of

approximately 24 acres located in Powell, Wyoming, which has

served as the location of a support complex, recreational facilities,

and housing facilities for the Radar Bomb Scoring Site, Powell,

Wyoming. (b) CONDITION OF CONVEYANCE.—The conveyance authorized under subsection (a) shall be subject to the condition that the

Board use the property conveyed under that subsection for housing

and recreation purposes and for such other purposes as the Secretary and the Board jointly determine appropriate. (c) REVERSIONARY INTEREST.—During the five-year period beginning on the date that the Secretary makes the conveyance

authorized under subsection (a), if the Secretary determines that

the conveyed property is not being used in accordance with subsection (b), all right, title, and interest in and to the conveyed

property, including any improvements thereon, 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 property conveyed under this section shall be

determined by a survey satisfactory to the Secretary. The cost

of the survey shall be borne by the Board. (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. 2878. LAND CONVEYANCE, AVON PARK AIR FORCE RANGE,

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,

together with 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) CONDITION OF CONVEYANCE.—The conveyance authorized under subsection (a) shall be subject to the condition that the

County, 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. (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, including any improvements thereon, shall

revert to the United States, and the United States shall have

the right of immediate entry onto the property.

110 STAT. 586 PUBLIC LAW 104–106—FEB. 10, 1996

(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 the survey shall be borne by the County.

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the conveyance under this section as the Secretary considers appropriate to protect the interests of the United States.

Subtitle E—Land Conveyances Involving

Utilities

SEC. 2881. CONVEYANCE OF RESOURCE RECOVERY FACILITY, FORT

DIX, NEW JERSEY.

(a) CONVEYANCE AUTHORIZED.—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 six 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) REQUIREMENT RELATING TO CONVEYANCE.—The Secretary

may not carry out the conveyance of the resource recovery facility

authorized by subsection (a) unless the County agrees to accept

the facility in its existing condition at the time of the conveyance.

(d) CONDITIONS ON CONVEYANCE.—The conveyance of the

resource recovery facility authorized by subsection (a) is subject

to the following conditions:

(1) 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.

(2) That the County comply with all applicable environmental laws and regulations (including any permit or license

requirements) relating to the resource recovery facility.

(3) That the County assume full responsibility for ownership, operation, maintenance, repair, and all regulatory compliance requirements for the resource recovery facility.

(4) That the County not commence any expansion of the

resource recovery facility without approval of such expansion

by the Secretary.

(e) 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.

(f) 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.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 587

SEC. 2882. 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 water and

wastewater treatment plants and distribution and collection systems conveyed under subsection (a).

(c) REQUIREMENT RELATING TO CONVEYANCE.—The Secretary

may not carry out the conveyance of the water and wastewater

treatment plants and distribution and collection systems authorized

by subsection (a) unless the City agrees to accept the water and

wastewater treatment plants and distribution and collection systems in their existing condition at the time of the conveyance.

(d) CONDITIONS ON CONVEYANCE.—The conveyance authorized

by subsection (a) is subject to the following conditions:

(1) That the City provide water and sewer service to Fort

Gordon, Georgia, at a rate established by the appropriate Federal or State regulatory authority.

(2) That the City comply with all applicable environmental

laws and regulations (including any permit or license requirements) regarding the real property conveyed under subsection (a).

(3) 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.

(4) That the City not commence any expansion of the

water and wastewater treatment plants and distribution and

collection systems without approval of such expansion by the

Secretary.

(e) 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.

(f) 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. 2883. CONVEYANCE OF ELECTRICITY 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 electricity distribution

system located at Fort Irwin, California.

110 STAT. 588 PUBLIC LAW 104–106—FEB. 10, 1996

(b) DESCRIPTION OF SYSTEM AND CONVEYANCE.—The electricity

distribution system authorized to be conveyed under subsection

(a) consists of approximately 115 miles of electricity distribution

lines (including poles, switches, reclosers, transformers, regulators,

switchgears, and service lines) and includes the equipment, fixtures,

structures, and other improvements the Federal Government utilizes to provide electricity services at Fort Irwin. The system does

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 electricity distribution system conveyed under subsection

(a).

(d) REQUIREMENT RELATING TO CONVEYANCE.—The Secretary

may not carry out the electricity distribution system authorized

by subsection (a) unless the Company agrees to accept the electricity

distribution system in its existing condition at the time of the

conveyance.

(e) CONDITIONS ON CONVEYANCE.—The conveyance authorized

by subsection (a) is subject to the following conditions:

(1) That the Company provide electricity service to Fort

Irwin, California, at a rate established by the appropriate Federal or State regulatory authority.

(2) That the Company comply with all applicable environmental laws and regulations (including any permit or license

requirements) regarding the electricity distribution system.

(3) That the Company assume full responsibility for ownership, operation, maintenance, repair, and all regulatory compliance requirements for the electricity distribution system.

(4) That the Company not commence any expansion of

the electricity distribution system without approval of such

expansion by the Secretary.

(f) 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.

(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 (c) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2884. CONVEYANCE OF WATER TREATMENT PLANT, FORT PICKETT, VIRGINIA.

(a) AUTHORITY TO CONVEY.—(1) The Secretary of the Army

may convey to the Town of Blackstone, Virginia (in this section

referred to as the ‘‘Town’’), all right, title, and interest of the

United States in and to the property described in paragraph (2).

(2) The property referred to in paragraph (1) is the following

property located at Fort Pickett, Virginia:

(A) A parcel of real property consisting of approximately

10 acres, including a reservoir and improvements thereon, the

site of the Fort Pickett water treatment plant.

(B) Any equipment, fixtures, structures, or other improvements (including any water transmission lines, water distribution and service lines, fire hydrants, water pumping stations,

and other improvements) not located on the parcel described

in subparagraph (A) that are jointly identified by the Secretary

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 589

and the Town as owned and utilized by the Federal Government

in order to provide water to and distribute water at Fort Pickett.

(b) RELATED EASEMENTS.—The Secretary may grant to the

Town the following easements relating to the conveyance of the

property authorized by subsection (a):

(1) Such easements, if any, as the Secretary and the Town

jointly determine are necessary in order to provide access to

the water distribution system referred to in paragraph (2) of

such subsection for maintenance, safety, and other purposes.

(2) Such easements, if any, as the Secretary and the Town

jointly determine are necessary in order to provide access to

the finished water lines from the system to the Town.

(3) Such rights of way appurtenant, if any, as the Secretary

and the Town jointly determine are necessary in order to satisfy

requirements imposed by any Federal, State, or municipal

agency relating to the maintenance of a buffer zone around

the water distribution system.

(c) WATER RIGHTS.—The Secretary shall grant to the Town

as part of the conveyance under subsection (a) all right, title,

and interest of the United States in and to any water of the

Nottoway River, Virginia, that is connected with the reservoir

referred to in paragraph (2)(A) of such subsection. The grant of

such water rights shall not impair the right that any other local

jurisidiction may have to withdraw water from the Nottoway River,

on or after the date of the enactment of this Act, pursuant to

the law of the Commonwealth of Virginia.

(d) REQUIREMENTS RELATING TO CONVEYANCE.—(1) The Secretary may not carry out the conveyance of the water distribution

system authorized under subsection (a) unless the Town agrees

to accept the system in its existing condition at the time of the

conveyance.

(2) The Secretary shall complete any environmental removal

or remediation required under the Comprehensive Environmental

Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601

et seq.) with respect to the system to be conveyed under this

section before carrying out the conveyance.

(e) CONDITIONS ON CONVEYANCE.—The conveyance authorized

in subsection (a) shall be subject to the following conditions:

(1) That the Town reserve for provision to Fort Pickett,

and provide to Fort Pickett on demand, not less than 1,500,000

million gallons per day of treated water from the water distribution system.

(2) That the Town provide water to and distribute water

at Fort Pickett at a rate established by the appropriate Federal

or State regulatory authority.

(3) That the Town maintain and operate the water distribution system in compliance with all applicable Federal and State

environmental laws and regulations (including any permit and

license requirements).

(f) DESCRIPTION OF PROPERTY.—The exact legal description of

the property to be conveyed under subsection (a), of any easements

granted under subsection (b), and of any water rights granted

under subsection (c) shall be determined by a survey and other

means satisfactory to the Secretary. The cost of any survey or

other services performed at the direction of the Secretary under

the authority in the preceding sentence shall be borne by the

Town.

110 STAT. 590 PUBLIC LAW 104–106—FEB. 10, 1996

(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the conveyance authorized under subsection (a), the easements

granted under subsection (b), and the water rights granted under

subsection (c) that the Secretary considers appropriate to protect

the interests of the United States.

Subtitle F—Other Matters

SEC. 2891. AUTHORITY TO USE FUNDS FOR CERTAIN EDUCATIONAL

PURPOSES.

Section 2008 of title 10, United States Code, is amended by

striking out ‘‘section 10’’ and all that follows through the period

at the end and inserting in lieu thereof ‘‘construction, as defined

in section 8013(3) of the Elementary and Secondary Education

Act of 1965 (20 U.S.C. 7713(3)), or to carry out section 8008 of

such Act (20 U.S.C. 7708), relating to the provision of assistance

to certain school facilities under the impact aid program.’’.

SEC. 2892. DEPARTMENT OF DEFENSE LABORATORY REVITALIZATION

DEMONSTRATION PROGRAM.

(a) PROGRAM AUTHORIZED.—The Secretary of Defense may carry

out a program (to be known as the ‘‘Department of Defense Laboratory Revitalization Demonstration Program’’) for the revitalization

of Department of Defense laboratories. Under the program, the

Secretary may carry out minor military construction projects in

accordance with subsection (b) and other applicable law to improve

Department of Defense laboratories covered by the program.

(b) INCREASED MAXIMUM AMOUNTS APPLICABLE TO MINOR

CONSTRUCTION PROJECTS.—For purpose of any military construction

project carried out under the program—

(1) the amount provided in the second sentence of subsection (a)(1) of section 2805 of title 10, United States Code,

shall be deemed to be $3,000,000;

(2) the amount provided in subsection (b)(1) of such section

shall be deemed to be $1,500,000; and

(3) the amount provided in subsection (c)(1)(B) of such

section shall be deemed to be $1,000,000.

(c) PROGRAM REQUIREMENTS.—(1) Not later than 30 days before

commencing the program, the Secretary shall—

(A) designate the Department of Defense laboratories at

which construction may be carried out under the program;

and

(B) establish procedures for the review and approval of

requests from such laboratories to carry out such construction.

(2) The laboratories designated under paragraph (1)(A) may

not include Department of Defense laboratories that are contractor

owned.

(3) The Secretary shall notify Congress of the laboratories designated under paragraph (1)(A).

(d) REPORT.—Not later than February 1, 1998, the Secretary

shall submit to Congress a report on the program. The report

shall include the Secretary’s conclusions and recommendations

regarding the desirability of extending the authority set forth in

subsection (b) to cover all Department of Defense laboratories.

Notification.

10 USC 2805

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 591

(e) EXCLUSIVITY OF PROGRAM.—Nothing in this section may

be construed to limit any other authority provided by law for

any military construction project at a Department of Defense laboratory covered by the program.

(f) DEFINITIONS.—In this section:

(1) The term ‘‘laboratory’’ includes—

(A) a research, engineering, and development center;

(B) a test and evaluation activity owned, funded, and

operated by the Federal Government through the Department of Defense; and

(C) a supporting facility of a laboratory.

(2) The term ‘‘supporting facility’’, with respect to a laboratory, means any building or structure that is used in support

of research, development, test, and evaluation at the laboratory.

(g) EXPIRATION OF AUTHORITY.—The Secretary may not commence a construction project under the program after September

30, 1998.

SEC. 2893. AUTHORITY FOR PORT AUTHORITY OF STATE OF MISSISSIPPI TO USE NAVY PROPERTY AT NAVAL CONSTRUCTION BATTALION CENTER, GULFPORT, MISSISSIPPI.

(a) JOINT USE AGREEMENT AUTHORIZED.—The Secretary of the

Navy may enter into an agreement with the Port Authority of

the State of Mississippi (in this section referred to as the ‘‘Port

Authority’’), under which the Port Authority may use real property

comprising up to 50 acres located at the Naval Construction Battalion Center, Gulfport, Mississippi (in this section referred to as

the ‘‘Center’’).

(b) TERM OF AGREEMENT.—The agreement authorized under

subsection (a) may be for an initial period of not more than 15

years. Under the agreement, the Secretary shall provide the Port

Authority with an option to extend the agreement for at least

three additional periods of five years each.

(c) CONDITIONS ON USE.—The agreement authorized under subsection (a) shall require the Port Authority—

(1) to suspend operations under the agreement in the event

Navy contingency operations are conducted at the Center; and

(2) to use the property covered by the agreement in a

manner consistent with Navy operations conducted at the

Center.

(d) CONSIDERATION.—(1) As consideration for the use of the

property covered by the agreement under subsection (a), the Port

Authority shall pay to the Navy an amount equal to the fair

market rental value of the property, as determined by the Secretary

taking into consideration the Port Authority’s use of the property.

(2) The Secretary may include a provision in the agreement

requiring the Port Authority—

(A) to pay the Navy an amount (as determined by the

Secretary) to cover the costs of replacing at the Center any

facilities vacated by the Navy on account of the agreement

or to construct suitable replacement facilities for the Navy;

and

(B) to pay the Navy an amount (as determined by the

Secretary) for the costs of relocating Navy operations from

the vacated facilities to the replacement facilities.

(e) CONGRESSIONAL NOTIFICATION.—The Secretary may not

enter into the agreement authorized by subsection (a) until the

Reports.

110 STAT. 592 PUBLIC LAW 104–106—FEB. 10, 1996

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. 2894. PROHIBITION ON JOINT USE OF NAVAL AIR STATION AND

MARINE CORPS AIR STATION, MIRAMAR, CALIFORNIA.

The Secretary of the Navy may not enter into any agreement

that provides for or permits civil aircraft to regularly use Naval

Air Station or Marine Corps Air Station, Miramar, California.

SEC. 2895. 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 setting forth—

(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 respond affirmatively 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.

SEC. 2896. RESIDUAL VALUE REPORTS.

(a) REPORTS REQUIRED.—The Secretary of Defense, in coordination with the Director of the Office of Management and Budget,

shall submit to the congressional defense committees status reports

on the results of residual value negotiations between the United

States and Germany. Such status reports shall be submitted within

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 593

30 days after the receipt of such reports by the Office of Management and Budget.

(b) CONTENT OF STATUS REPORTS.—The status reports required

by subsection (a) shall include the following information:

(1) The estimated residual value of United States capital

value and improvements to facilities in Germany that the

United States has turned over to Germany.

(2) The actual value obtained by the United States for

each facility or installation turned over to Germany.

(3) The reasons for any difference between the estimated

and actual value obtained.

SEC. 2897. SENSE OF CONGRESS AND REPORT REGARDING

FITZSIMONS ARMY MEDICAL CENTER, COLORADO.

(a) FINDINGS.—Congress makes the following findings:

(1) Fitzsimons Army Medical Center in Aurora, Colorado,

was approved for closure in 1995 under 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).

(2) The University of Colorado Health Sciences Center and

the University of Colorado Hospital Authority are in urgent

need of space to maintain their ability to deliver health care

to meet the growing demand for their services.

(3) Reuse of the Fitzsimons Army Medical Center at the

earliest opportunity would provide significant benefit to the

cities of Aurora, Colorado, and Denver, Colorado.

(4) Reuse of the Fitzsimons Army Medical Center by the

communities in the vicinity of the center will ensure that the

center is fully utilized, thereby providing a benefit to such

communities.

(b) SENSE OF CONGRESS.—It is the sense of Congress that—

(1) determinations as to the use by other departments

and agencies of the Federal Government of buildings and property at military installations approved for closure under the

Defense Base Closure and Realignment Act of 1990, including

Fitzsimons Army Medical Center, Colorado, should be completed as soon as practicable;

(2) the Secretary of Defense should consider the expedited

transfer of appropriate facilities (including facilities that remain

operational) at such installations to the redevelopment authorities for such installations in order to ensure continuity of use

of such facilities after the closure of such installations, in

particular, the Secretary should consider the expedited transfer

of the Fitzsimons Army Medical Center because of the significant preparation underway by the redevelopment authority

concerned;

(3) the Secretary should not enter into leases with redevelopment authorities for facilities at such installations until the

Secretary determines that such leases fall within the categorical

exclusions established by the Secretary pursuant to the

National Environmental Policy Act (42 U.S.C. 4321 et seq.).

(c) REPORT.—(1) Not later than 180 days after the date of

the enactment of this Act, the Secretary of Defense shall submit

to the congressional defense committees a report on the closure

and redevelopment of Fitzsimons Army Medical Center.

(2) The report shall include the following:

110 STAT. 594 PUBLIC LAW 104–106—FEB. 10, 1996

(A) The results of the determinations as to the use of

buildings and property at Fitzsimons Army Medical Center

by other departments and agencies of the Federal Government

under section 2905(b)(1) of the Defense Base Closure and

Realignment Act of 1990.

(B) A description of any actions taken to expedite such

determinations.

(C) A discussion of any impediments raised as a result

of such determinations to the transfer or lease of Fitzsimons

Army Medical Center.

(D) A description of any actions taken by the Secretary

to lease Fitzsimons Army Medical Center to the redevelopment

authority.

(E) The results of any environmental reviews under the

National Environmental Policy Act in which such a lease would

fall into the categorical exclusions established by the Secretary

of the Army.

(F) The results of the environmental baseline survey

regarding Fitzsimons Army Medical Center and a finding of

suitability or nonsuitability.

TITLE XXIX—LAND CONVEYANCES INVOLVING JOLIET ARMY AMMUNITION

PLANT, ILLINOIS

SEC. 2901. SHORT TITLE.

This title may be cited as the ‘‘Illinois Land Conservation

Act of 1995’’.

SEC. 2902. DEFINITIONS.

For purposes of this title, the following definitions apply:

(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the

Administrator of the United States Environmental Protection

Agency.

(2) AGRICULTURAL PURPOSES.—The term ‘‘agricultural purposes’’ means the use of land for row crops, pasture, hay,

and grazing.

(3) ARSENAL.—The term ‘‘Arsenal’’ means the Joliet Army

Ammunition Plant located in the State of Illinois.

(4) ARSENAL LAND USE CONCEPT.—The term ‘‘Arsenal land

use concept’’ means the land use proposals that were developed

and unanimously approved on May 30, 1995, by the Joliet

Arsenal Citizen Planning Commission.

(5) CERCLA.—The term ‘‘CERCLA’’ means the Comprehensive Environmental Response, Compensation, and Liability Act

of 1980 (42 U.S.C. 9601 et seq.).

(6) ENVIRONMENTAL LAW.—The term ‘‘environmental law’’

means all applicable Federal, State, and local laws, regulations,

and requirements related to protection of human health, natural and cultural resources, or the environment. Such term

includes CERCLA, the Solid Waste Disposal Act (42 U.S.C.

6901 et seq.), the Federal Water Pollution Control Act (33

U.S.C. 1251 et seq.), the Clean Air Act (42 U.S.C. 7401 et

seq.), the Federal Insecticide, Fungicide, and Rodenticide Act

(7 U.S.C. 136 et seq.), the Toxic Substances Control Act (15

Illinois Land

Conservation Act

of 1995.

16 USC 1609

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 595

U.S.C. 2601 et seq.), and the Safe Drinking Water Act (42

U.S.C. 300f et seq.). (7) HAZARDOUS SUBSTANCE.—The term ‘‘hazardous substance’’ has the meaning given such term by section 101(14)

of CERCLA (42 U.S.C. 9601(14)).

(8) MNP.—The term ‘‘MNP’’ means the Midewin National

Tallgrass Prairie established pursuant to section 2914 and managed as a part of the National Forest System.

(9) PERSON.—The term ‘‘person’’ has the meaning given

such term by section 101(21) of CERCLA (42 U.S.C. 9601(21)).

(10) POLLUTANT OR CONTAMINANT.—The term ‘‘pollutant

or contaminant’’ has the meaning given such term by section

101(33) of CERCLA (42 U.S.C. 9601(33)).

(11) RELEASE.—The term ‘‘release’’ has the meaning given

such term by section 101(22) of CERCLA (42 U.S.C. 9601(22)).

(12) RESPONSE ACTION.—The term ‘‘response action’’ has

the meaning given the term ‘‘response’’ by section 101(25) of

CERCLA (42 U.S.C. 9601(25)).

Subtitle A—Conversion of Joliet Army Ammunition Plant to Midewin National

Tallgrass Prairie

SEC. 2911. PRINCIPLES OF TRANSFER.

(a) LAND USE PLAN.—The Congress ratifies in principle the

proposals generally identified by the land use plan which was

developed by the Joliet Arsenal Citizen Planning Commission and

unanimously approved on May 30, 1995.

(b) TRANSFER WITHOUT REIMBURSEMENT.—The area constituting the Midewin National Tallgrass Prairie shall be transferred,

without reimbursement, to the Secretary of Agriculture.

(c) MANAGEMENT OF MNP.—Management by the Secretary of

Agriculture of those portions of the Arsenal transferred to the

Secretary under this title shall be in accordance with sections

2914 and 2915 regarding the Midewin National Tallgrass Prairie.

(d) SECURITY MEASURES.—The Secretary of the Army and the

Secretary of Agriculture shall each provide and maintain physical

and other security measures on such portion of the Arsenal as

is under the administrative jurisdiction of such Secretary, unless

the Secretary of the Army and the Secretary of Agriculture agree

otherwise. Such security measures (which may include fences and

natural barriers) shall include measures to prevent members of

the public from gaining unauthorized access to such portions of

the Arsenal as are under the administrative jurisdiction of such

Secretary and that may endanger health or safety.

(e) COOPERATIVE AGREEMENTS.—The Secretary of the Army,

the Secretary of Agriculture, and the Administrator are individually

and collectively authorized to enter into cooperative agreements

and memoranda of understanding among each other and with other

affected Federal agencies, State and local governments, private

organizations, and corporations to carry out the purposes for which

the Midewin National Tallgrass Prairie is established.

(f) INTERIM ACTIVITIES OF THE SECRETARY OF AGRICULTURE.—

Prior to transfer and subject to such reasonable terms and conditions as the Secretary of the Army may prescribe, the Secretary

110 STAT. 596 PUBLIC LAW 104–106—FEB. 10, 1996

of Agriculture may enter upon the Arsenal property for purposes

related to planning, resource inventory, fish and wildlife habitat

manipulation (which may include prescribed burning), and other

such activities consistent with the purposes for which the Midewin

National Tallgrass Prairie is established.

SEC. 2912. TRANSFER OF MANAGEMENT RESPONSIBILITIES AND

JURISDICTION OVER ARSENAL.

(a) GENERAL RULE FOR TRANSFER OF JURISDICTION.—

(1) TRANSFER REQUIRED SUBJECT TO RESPONSE ACTIONS.—

Subject to subsection (d), not later than 270 days after the

date of the enactment of this title, the Secretary of the Army

shall transfer, without reimbursement, to the Secretary of Agriculture those portions of the Arsenal that—

(A) are identified on the map described in subsection

(e)(1) as appropriate for transfer under this subsection

to the Secretary of Agriculture; and

(B) the Secretary of the Army and the Administrator

concur in finding that all response actions have been taken

under CERCLA necessary to protect human health and

the environment with respect to any hazardous substance

remaining on the property.

(2) EFFECT OF LESS THAN COMPLETE TRANSFER.—If the

concurrence requirement in paragraph (1)(B) results in the

transfer, within such 270-day period, of less than all of the

Arsenal property covered by paragraph (1)(A), the Secretary

of the Army and the Secretary of Agriculture shall enter into

a memorandum of understanding providing for the performance

by the Secretary of the Army of the additional response actions

necessary to allow fulfillment of the concurrence requirement

with respect to such Arsenal property. The memorandum of

understanding shall be entered into within 60 days of the

end of such 270-day period and shall include a schedule for

the completion of the additional response actions as soon as

practicable. Subject to subsection (d), the Secretary of the Army

shall transfer Arsenal property covered by this paragraph to

the Secretary of Agriculture as soon as possible after the Secretary of the Army and the Administrator concur that all additional response actions have been taken under CERCLA necessary to protect human health and the environment with

respect to any hazardous substance remaining on the property.

The Secretary of the Army may make transfers under this

paragraph on a parcel-by-parcel basis.

(3) RULE OF CONSTRUCTION REGARDING CONCURRENCES.—

For the purpose of reaching the concurrences required by this

subsection and subsection (b), if a response action requires

construction and installation of an approved remedial design,

the response action shall be considered to have been taken

when the construction and installation of the approved remedial

design is completed and the remedy is demonstrated to the

satisfaction of the Administrator to be operating properly and

successfully.

(b) SPECIAL TRANSFER REQUIREMENTS FOR CERTAIN PARCELS.—

Subject to subsection (d), the Secretary of the Army shall transfer,

without reimbursement, to the Secretary of Agriculture the Arsenal

property known as LAP Area Sites L2, L3, and L5 and Manufacturing Area Site 1. The transfer shall occur as soon as possible after

Memorandum.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 597

the Secretary of the Army and the Administrator concur that all

response actions have been taken under CERCLA necessary to

protect human health and the environment with respect to any

hazardous substance remaining on the property. The Secretary

of the Army may make transfers under this subsection on a parcelby-parcel basis.

(c) DOCUMENTATION OF ENVIRONMENTAL CONDITION OF PARCELS; ASSESSMENT OF REQUIRED ACTIONS UNDER OTHER ENVIRONMENTAL LAWS.—

(1) DOCUMENTATION.—The Secretary of the Army and the

Administrator shall provide to the Secretary of Agriculture

all documentation and information that exists on the date the

documentation and information is provided relating to the

environmental condition of the Arsenal property proposed for

transfer under subsection (a) or (b), including documentation

that supports the finding that all response actions have been

taken under CERCLA necessary to protect human health and

the environment with respect to any hazardous substance

remaining on the property.

(2) ASSESSMENT.—The Secretary of the Army shall provide

to the Secretary of Agriculture an assessment, based on

information in existence at the time the assessment is provided,

indicating what further action, if any, is required under any

environmental law (other than CERCLA) on the Arsenal property proposed for transfer under subsection (a) or (b).

(3) TIME FOR SUBMISSION OF DOCUMENTATION AND ASSESSMENT.—The documentation and assessments required to be

submitted to the Secretary of Agriculture under this subsection

shall be submitted—

(A) in the case of the transfers required by subsection

(a), not later than 210 days after the date of the enactment

of this title; and

(B) in the case of the transfers required by subsection

(b), not later than 60 days before the earliest date on

which the property could be transferred.

(4) SUBMISSION OF ADDITIONAL INFORMATION.—The Secretary of the Army and the Administrator shall have a continuing obligation to provide to the Secretary of Agriculture any

additional information regarding the environmental condition

of property to be transferred under subsection (a) or (b) as

such information becomes available.

(d) EFFECT OF ENVIRONMENTAL ASSESSMENT.—

(1) AUTHORITY OF SECRETARY OF AGRICULTURE TO DECLINE

IMMEDIATE TRANSFER.—If a parcel of Arsenal property to be

transferred under subsection (a) or (b) includes property for

which the assessment under subsection (c)(2) concludes further

action is required under any environmental law (other than

CERCLA), the Secretary of Agriculture may decline immediate

transfer of the parcel. With respect to such a parcel, the Secretary of the Army and the Secretary of Agriculture shall

enter into a memorandum of understanding providing for the

performance by the Secretary of the Army of the required

actions identified in the Army assessment. The memorandum

of understanding shall be entered into within 90 days after

the date on which the Secretary of Agriculture declines immediate transfer of the parcel and shall include a schedule for

the completion of the required actions as soon as practicable.

Memorandum.

110 STAT. 598 PUBLIC LAW 104–106—FEB. 10, 1996

(2) EVENTUAL TRANSFER.—In the case of a parcel of Arsenal

property that the Secretary of Agriculture declines immediate

transfer under paragraph (1), the Secretary may accept transfer

of the parcel at any time after the original finding with respect

to the parcel that all response actions have been taken under

CERCLA necessary to protect human health and the environment with respect to any hazardous substance remaining on

the property. The Secretary of Agriculture shall accept transfer

of the parcel as soon as possible after the date on which

all required further actions identified in the assessment have

been taken and the terms of any memorandum of understanding have been satisfied.

(e) IDENTIFICATION OF ARSENAL PROPERTY FOR TRANSFER.—

(1) MAP OF PROPOSED TRANSFERS.—The lands subject to

transfer to the Secretary of Agriculture under subsections (a)

and (b) and section 2916 are depicted on the map dated September 22, 1995, which is on file and available for public inspection

at the Office of the Chief of the Forest Service and the Office

of the Assistant Secretary of the Army for Installations, Logistics and the Environment.

(2) METHOD OF EFFECTING TRANSFER.—The Secretary of

the Army shall effect the transfer of jurisdiction of Arsenal

property under subsections (a) and (b) and section 2916 by

publication of notices in the Federal Register. The Secretary

of Agriculture shall give prior concurrence to the publication

of such notices. Each notice published in the Federal Register

shall refer to the parcel being transferred by legal description,

references to maps or surveys, or other forms of description

mutually acceptable to the Secretary of the Army and the

Secretary of Agriculture. The Secretary of the Army shall provide, without reimbursement, to the Secretary of Agriculture

copies of all surveys and land title information on lands transferred under this section or section 2916.

(f) SURVEYS.—All costs of necessary surveys for the transfer

of jurisdiction of Arsenal property from the Secretary of the Army

to the Secretary of Agriculture shall be borne by the Secretary

of Agriculture.

SEC. 2913. RESPONSIBILITY AND LIABILITY.

(a) CONTINUED LIABILITY OF SECRETARY OF THE ARMY.—The

transfers of Arsenal property under sections 2912 and 2916, and

the requirements of such sections, shall not in any way affect

the responsibilities and liabilities of the Secretary of the Army

specified in this section. The Secretary of the Army shall retain

any obligation or other liability at the Arsenal that the Secretary

of the Army has under CERCLA or other environmental laws.

Following transfer of a portion of the Arsenal under this subtitle,

the Secretary of the Army shall be accorded any easement or

access to the property that may be reasonably required by the

Secretary to carry out the obligation or satisfy the liability.

(b) SPECIAL PROTECTIONS FOR SECRETARY OF AGRICULTURE.—

The Secretary of Agriculture shall not be liable under any environmental law for matters which are related directly or indirectly

to activities of the Secretary of the Army at the Arsenal or any

party acting under the authority of the Secretary of the Army

at the Arsenal, including any of the following:

Federal Register,

publication.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 599

(1) Costs or performance of response actions required under

CERCLA at or related to the Arsenal.

(2) Costs, penalties, fines, or performance of actions related

to noncompliance with any environmental law at or related

to the Arsenal or related to the presence, release, or threat

of release of any hazardous substance, pollutant or contaminant, hazardous waste, or hazardous material of any kind

at or related to the Arsenal, including contamination resulting

from migration of a hazardous substance, pollutant or contaminant, hazardous waste, hazardous material, or petroleum products or their derivatives.

(3) Costs or performance of actions necessary to remedy

noncompliance or another problem specified in paragraph (2).

(c) LIABILITY OF OTHER PERSONS.—Nothing in this title shall

be construed to effect, modify, amend, repeal, alter, limit or otherwise change, directly or indirectly, the responsibilities or liabilities

under any environmental law of any person (including the Secretary

of Agriculture), except as provided in subsection (b) with respect

to the Secretary of Agriculture.

(d) PAYMENT OF RESPONSE ACTION COSTS.—A Federal agency

that had or has operations at the Arsenal resulting in the release

or threatened release of a hazardous substance or pollutant or

contaminant for which that agency would be liable under any

environmental law, subject to the provisions of this subtitle, shall

pay the costs of related response actions and shall pay the costs

of related actions to remediate petroleum products or the derivatives

of the products, including motor oil and aviation fuel.

(e) CONSULTATION.—

(1) RESPONSIBILITY OF SECRETARY OF AGRICULTURE.—The

Secretary of Agriculture shall consult with the Secretary of

the Army with respect to the management by the Secretary

of Agriculture of real property included in the Midewin National

Tallgrass Prairie subject to any response action or other action

at the Arsenal being carried out by or under the authority

of the Secretary of the Army under any environmental law.

The Secretary of Agriculture shall consult with the Secretary

of the Army prior to undertaking any activities on the Midewin

National Tallgrass Prairie that may disturb the property to

ensure that such activities will not exacerbate contamination

problems or interfere with performance by the Secretary of

the Army of response actions at the property.

(2) RESPONSIBILITY OF SECRETARY OF THE ARMY.—In carrying out response actions at the Arsenal, the Secretary of the

Army shall consult with the Secretary of Agriculture to ensure

that such actions are carried out in a manner consistent with

the purposes for which the Midewin National Tallgrass Prairie

is established, as specified in section 2914(c), and the other

provisions of sections 2914 and 2915.

SEC. 2914. ESTABLISHMENT AND ADMINISTRATION OF MIDEWIN

NATIONAL TALLGRASS PRAIRIE.

(a) ESTABLISHMENT.—On the effective date of the initial transfer

of jurisdiction of portions of the Arsenal to the Secretary of Agriculture under section 2912(a), the Secretary of Agriculture shall

establish the Midewin National Tallgrass Prairie. The MNP shall—

(1) be administered by the Secretary of Agriculture; and

National Forest

System.

Conservation.

Environmental

protection.

110 STAT. 600 PUBLIC LAW 104–106—FEB. 10, 1996

(2) consist of the real property so transferred and such

other portions of the Arsenal subsequently transferred under

section 2912(b) or 2916 or acquired under section 2914(d).

(b) ADMINISTRATION.—

(1) IN GENERAL.—The Secretary of Agriculture shall manage the Midewin National Tallgrass Prairie as a part of the

National Forest System in accordance with this title and the

laws, rules, and regulations pertaining to the National Forest

System, except that the Bankhead-Jones Farm Tenant Act

of 1937 (7 U.S.C. 1010–1012) shall not apply to the MNP.

(2) INITIAL MANAGEMENT ACTIVITIES.—In order to expedite

the administration and public use of the Midewin National

Tallgrass Prairie, the Secretary of Agriculture may conduct

management activities at the MNP to effectuate the purposes

for which the MNP is established, as set forth in subsection

(c), in advance of the development of a land and resource

management plan for the MNP.

(3) LAND AND RESOURCE MANAGEMENT PLAN.—In developing

a land and resource management plan for the Midewin National

Tallgrass Prairie, the Secretary of Agriculture shall consult

with the Illinois Department of Natural Resources and local

governments adjacent to the MNP and provide an opportunity

for public comment. Any parcel transferred to the Secretary

of Agriculture under this title after the development of a land

and resource management plan for the MNP may be managed

in accordance with such plan without need for an amendment

to the plan.

(c) PURPOSES OF THE MIDEWIN NATIONAL TALLGRASS PRAIRIE.—

The Midewin National Tallgrass Prairie is established to be managed for National Forest System purposes, including the following:

(1) To manage the land and water resources of the MNP

in a manner that will conserve and enhance the native populations and habitats of fish, wildlife, and plants.

(2) To provide opportunities for scientific, environmental,

and land use education and research.

(3) To allow the continuation of agricultural uses of lands

within the MNP consistent with section 2915(b).

(4) To provide a variety of recreation opportunities that

are not inconsistent with the preceding purposes.

(d) OTHER LAND ACQUISITION FOR MNP.—

(1) AVAILABILITY OF LAND ACQUISITION FUNDS.—Notwithstanding section 7 of the Land and Water Conservation Fund

Act of 1965 (16 U.S.C. 460l–9), the Secretary of Agriculture

may use monies appropriated from the Land and Water Conservation Fund established under section 2 of such Act (16

U.S.C. 460l–5) for the acquisition of lands and interests in

land for inclusion in the Midewin National Tallgrass Prairie.

(2) ACQUISITION OF LANDS.—The Secretary of Agriculture

may acquire lands or interests therein for inclusion in the

Midewin National Tallgrass Prairie by donation, purchase, or

exchange, except that the acquisition of private lands for inclusion in the MNP shall be on a willing seller basis only.

(e) COOPERATION WITH STATES, LOCAL GOVERNMENTS AND

OTHER ENTITIES.—In the management of the Midewin National

Tallgrass Prairie, the Secretary of Agriculture is authorized and

encouraged to cooperate with appropriate Federal, State and local

governmental agencies, private organizations and corporations.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 601

Such cooperation may include cooperative agreements as well as

the exercise of the existing authorities of the Secretary under the

Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101 et

seq.) and the Forest and Rangeland Renewable Resources Research

Act of 1978 (16 U.S.C. 1641 et seq.). The objects of such cooperation

may include public education, land and resource protection, and

cooperative management among government, corporate, and private

landowners in a manner which furthers the purposes for which

the Midewin National Tallgrass Prairie is established.

SEC. 2915. SPECIAL MANAGEMENT REQUIREMENTS FOR MIDEWIN

NATIONAL TALLGRASS PRAIRIE.

(a) PROHIBITION AGAINST THE CONSTRUCTION OF NEW THROUGH

ROADS.—No new construction of any highway, public road, or any

part of the interstate system, whether Federal, State, or local,

shall be permitted through or across any portion of the Midewin

National Tallgrass Prairie. Nothing in this title shall preclude

construction and maintenance of roads for use within the MNP,

the granting of authorizations for utility rights-of-way under

applicable Federal law, or such access as is necessary. Nothing

in this title shall preclude necessary access by the Secretary of

the Army for purposes of restoration and cleanup as provided in

this title.

(b) AGRICULTURAL LEASES AND SPECIAL USE AUTHORIZATIONS.—

Within the Midewin National Tallgrass Prairie, use of the lands

for agricultural purposes shall be permitted subject to the following

terms and conditions:

(1) If at the time of transfer of jurisdiction under section

2912 or 2916 there exists any lease issued by the Secretary

of the Army or the Secretary of Defense for agricultural purposes upon the parcel transferred, the Secretary of Agriculture

shall issue a special use authorization to supersede the lease.

The terms of the special use authorization shall be identical

in substance to the lease that the special use authorization

is superseding, including the expiration date and any payments

owed the United States. On issuance of the special use

authorization, the lease shall become void.

(2) In addition to the authority provided in paragraph

(1), the Secretary of Agriculture may issue special use

authorizations to persons for use of the Midewin National

Tallgrass Prairie for agricultural purposes. Special use

authorizations issued pursuant to this paragraph shall include

terms and conditions as the Secretary of Agriculture may deem

appropriate.

(3) No agricultural special use authorization shall be issued

for agricultural purposes which has a term extending beyond

the date 20 years from the date of the enactment of this

title, except that nothing in this title shall preclude the Secretary of Agriculture from issuing agricultural special use

authorizations or grazing permits which are effective after

twenty years from the date of enactment of this title for purposes primarily related to erosion control, provision for food

and habitat for fish and wildlife, or other resource management

activities consistent with the purposes of the Midewin National

Tallgrass Prairie.

(c) TREATMENT OF RENTAL FEES.—Monies received under a

special use authorization issued under subsection (b) shall be subject

110 STAT. 602 PUBLIC LAW 104–106—FEB. 10, 1996

to distribution to the State of Illinois and affected counties pursuant

to the Act of May 23, 1908, and section 13 of the Act of March

1, 1911 (16 U.S.C. 500). All monies not distributed pursuant to

such Acts shall be covered into the Treasury and shall constitute

a special fund (to be known as the ‘‘MNP Rental Fee Account’’).

The Secretary of Agriculture may use amounts in the fund, until

expended and without fiscal year limitation, to cover the cost to

the United States of prairie improvement work at the Midewin

National Tallgrass Prairie. Any amounts in the fund that the Secretary of Agriculture determines to be in excess of the cost of

doing such work shall be transferred, upon such determination,

to miscellaneous receipts, Forest Service Fund, as a National Forest

receipt of the fiscal year in which the transfer is made.

(d) USER FEES.—The Secretary of Agriculture is authorized

to charge reasonable fees for the admission, occupancy, and use

of the Midewin National Tallgrass Prairie and may prescribe a

fee schedule providing for reduced or a waiver of fees for persons

or groups engaged in authorized activities including those providing

volunteer services, research, or education. The Secretary shall permit admission, occupancy, and use at no additional charge for

persons possessing a valid Golden Eagle Passport or Golden Age

Passport.

(e) SALVAGE OF IMPROVEMENTS.—The Secretary of Agriculture

may sell for salvage value any facilities and improvements which

have been transferred to the Secretary pursuant to this title.

(f) TREATMENT OF USER FEES AND SALVAGE RECEIPTS.—Monies

collected pursuant to subsections (d) and (e) shall be covered into

the Treasury and constitute a special fund (to be known as the

‘‘Midewin National Tallgrass Prairie Restoration Fund’’). The Secretary of Agriculture may use amounts in the fund, in such amounts

as are provided in advance in appropriation Acts, for restoration

and administration of the Midewin National Tallgrass Prairie,

including construction of a visitor and education center, restoration

of ecosystems, construction of recreational facilities (such as trails),

construction of administrative offices, and operation and maintenance of the MNP. The Secretary of Agriculture shall include the

MNP among the areas under the jurisdiction of the Secretary

selected for inclusion in any cost recovery or any pilot program

of the Secretary for the collection, use, and distribution of user

fees.

SEC. 2916. SPECIAL TRANSFER RULES FOR CERTAIN ARSENAL PARCELS INTENDED FOR MNP.

(a) DESCRIPTION OF PARCELS.—The following areas of the

Arsenal may be transferred under this section:

(1) Study Area 2, explosive burning ground.

(2) Study Area 3, flashing ground.

(3) Study Area 4, lead azide area.

(4) Study Area 10, toluene tank farms.

(5) Study Area 11, landfill.

(6) Study Area 12, sellite manufacturing area.

(7) Study Area 14, former pond area.

(8) Study Area 15, sewage treatment plan.

(9) Study Area L1, load assemble packing area, group 61.

(10) Study Area L4, landfill area.

(11) Study Area L7, group 1.

(12) Study Area L8, group 2.

Nomenclature.

Nomenclature.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 603

(13) Study Area L9, group 3.

(14) Study Area L10, group 3A.

(15) Study Area L14, group 4.

(16) Study Area L15, group 5.

(17) Study Area L18, group 8.

(18) Study Area L19, group 9.

(19) Study Area L33, PVC area.

(20) Any other lands proposed for transfer as depicted

on the map described in section 2912(e)(1) and not otherwise

specifically identified for transfer under this subtitle.

(b) INFORMATION REGARDING ENVIRONMENTAL CONDITION OF

PARCELS; ASSESSMENT OF REQUIRED ACTIONS UNDER OTHER

ENVIRONMENTAL LAWS.—

(1) INFORMATION.—Not later than 180 days after the date

on which the Secretary of the Army and the Administrator

concur in finding that, with respect to a parcel of Arsenal

property described in subsection (a), all response actions have

been taken under CERCLA necessary to protect human health

and the environment with respect to any hazardous substance

remaining on the parcel, the Secretary of the Army and the

Administrator shall provide to the Secretary of Agriculture

all information that exists on such date regarding the environmental condition of the parcel and the implementation of any

response action, including information regarding the effectiveness of the response action.

(2) ASSESSMENT.—At the same time as information is provided under paragraph (1) with regard to a parcel of Arsenal

property described in subsection (a), the Secretary of the Army

shall provide to the Secretary of Agriculture an assessment,

based on information in existence at the time the assessment

is provided, indicating what further action, if any, is required

under any environmental law (other than CERCLA) with

respect to the parcel.

(3) SUBMISSION OF ADDITIONAL INFORMATION.—The Secretary of the Army and the Administrator shall have a continuing obligation to provide to the Secretary of Agriculture any

additional information regarding the environmental condition

of a parcel of the Arsenal property described in subsection

(a) as such information becomes available.

(c) OFFER OF TRANSFER.—Not later than 180 days after the

date on which information is provided under subsection (b)(1) with

regard to a parcel of the Arsenal property described in subsection

(a), the Secretary of the Army shall offer the Secretary of Agriculture the option of accepting a transfer of the parcel, without

reimbursement, to be added to the Midewin National Tallgrass

Prairie. The transfer shall be subject to the terms and conditions

of this subtitle, including the liability provisions contained in section

2913. The Secretary of Agriculture has the option to accept or

decline the offered transfer. The transfer of property under this

section may be made on a parcel-by-parcel basis.

(d) EFFECT OF ENVIRONMENTAL ASSESSMENT.—

(1) AUTHORITY OF SECRETARY OF AGRICULTURE TO DECLINE

TRANSFER.—If a parcel of Arsenal property described in subsection (a) includes property for which the assessment under

subsection (b)(2) concludes further action is required under

any other environmental law, the Secretary of Agriculture may

decline any transfer of the parcel. Alternatively, the Secretary Memorandum.

110 STAT. 604 PUBLIC LAW 104–106—FEB. 10, 1996

of Agriculture may decline immediate transfer of the parcel

and enter into a memorandum of understanding with the Secretary of the Army providing for the performance by the Secretary of the Army of the required actions identified in the

Army assessment with respect to the parcel. The memorandum

of understanding shall be entered into within 90 days, or such

later date as the Secretaries may establish, after the date

on which the Secretary of Agriculture declines immediate transfer of the parcel and shall include a schedule for the completion

of the required actions as soon as practicable. (2) EVENTUAL TRANSFER.—The Secretary of Agriculture may accept or decline at any time for any reason the transfer

of a parcel covered by this section. However, if the Secretary

of Agriculture and the Secretary of the Army enter into a

memorandum of understanding under paragraph (1) providing

for transfer of the parcel, the Secretary of Agriculture shall

accept transfer of the parcel as soon as possible after the

date on which all required further actions identified in the

assessment have been taken and the requirements of the memorandum of understanding have been satisfied.

(e) RULE OF CONSTRUCTION REGARDING CONCURRENCES.—For

the purpose of the reaching the concurrence required by subsection

(b)(1), if a response action requires construction and installation

of an approved remedial design, the response action shall be considered to have been taken when the construction and installation

of the approved remedial design is completed and the remedy is

demonstrated to the satisfaction of the Administrator to be operating properly and successfully. (f) INCLUSIONS AND EXCEPTIONS.— (1) INCLUSIONS.—The parcels of Arsenal property described in subsection (a) shall include all associated inventoried buildings and structures as identified in the Joliet Army Ammunition

Plant Plantwide Building and Structures Report and the

contaminate study sites for both the manufacturing and load

assembly and packing sites of the Arsenal as shown in the

Dames and Moore Final Report, Phase 2 Remedial Investigation

Manufacturing (MFG) Area Joliet Army Ammunition Plant,

Joliet, Illinois (May 30, 1993, Contract No. DAAA15–90–D–

0015 task order No. 6 prepared for the United States Army

Environmental Center).

(2) EXCEPTION.—The parcels described in subsection (a)

shall not include the property at the Arsenal designated for

transfer or conveyance under subtitle B.

Subtitle B—Other Land Conveyances

Involving Joliet Army Ammunition Plant

SEC. 2921. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL

FOR A NATIONAL CEMETERY.

(a) CONVEYANCE AUTHORIZED.—Subject to section 2931, the

Secretary of the Army may transfer, without reimbursement, to

the Secretary of Veterans Affairs the parcel of real property at

the Arsenal described in subsection (b) for use as a national cemetery operated as part of the National Cemetery System of the

Department of Veterans Affairs under chapter 24 of title 38, United

States Code.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 605

(b) DESCRIPTION OF PROPERTY.—The real property authorized

to be transferred under subsection (a) is a parcel of real property

at the Arsenal consisting of approximately 982 acres, the approximate legal description of which includes part of sections 30 and

31, Jackson Township, Township 34 North, Range 10 East, and

part of sections 25 and 36, Channahon Township, Township 34

North, Range 10 East, Will County, Illinois, as depicted in the

Arsenal land use concept.

(c) SECURITY MEASURES.—The Secretary of Veterans Affairs

shall provide and maintain physical and other security measures

on the real property transferred under subsection (a). Such security

measures (which may include fences and natural barriers) shall

include measures to prevent members of the public from gaining

unauthorized access to the portion of the Arsenal that is under

the administrative jurisdiction of the Secretary of Veterans Affairs

and that may endanger health or safety.

(d) SURVEYS.—All costs of necessary surveys for the transfer

of jurisdiction of Arsenal properties from the Secretary of the Army

to the Secretary of Veterans Affairs shall be borne solely by the

Secretary of Veterans Affairs.

SEC. 2922. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL

FOR A COUNTY LANDFILL.

(a) CONVEYANCE AUTHORIZED.—Subject to section 2931, the

Secretary of the Army may convey, without compensation, to Will

County, Illinois, all right, title, and interest of the United States

in and to the parcel of real property at the Arsenal described

in subsection (b), which shall be operated as a landfill by the

County.

(b) DESCRIPTION OF PROPERTY.—The real property authorized

to be conveyed under subsection (a) is a parcel of real property

at the Arsenal consisting of approximately 455 acres, the approximate legal description of which includes part of sections 8, 9,

16, and 17, Florence Township, Township 33 North, Range 10

East, Will County, Illinois, as depicted in the Arsenal land use

concept.

(c) CONDITION ON CONVEYANCE.—The conveyance shall be subject to the condition that the Department of the Army, the Department of Veterans Affairs, and the Department of Agriculture (or

their agents or assigns) may use the landfill established on the

real property conveyed under subsection (a) for the disposal of

construction debris, refuse, and other materials related to any restoration and cleanup of Arsenal property. Such use shall be subject

to applicable environmental laws and at no cost to the Federal

Government.

(d) REVERSIONARY INTEREST.—If, at the end of the five-year

period beginning on the date of the conveyance under subsection

(a), the Secretary of Agriculture determines that the conveyed property is not opened for operation as a landfill, then, at the option

of the Secretary of Agriculture, all right, title, and interest in

and to the property, including improvements thereon, shall revert

to the United States. Upon any such reversion, the property shall

be included in the Midewin National Tallgrass Prairie. In the

event the United States exercises its option to cause the property

to revert, the United States shall have the right of immediate

entry onto the property.

110 STAT. 606 PUBLIC LAW 104–106—FEB. 10, 1996

(e) INFORMATION REGARDING ENVIRONMENTAL CONDITIONS.—

At the request of the Secretary of Agriculture, Will County, the

Secretary of the Army, and the Administrator shall provide to

the Secretary of Agriculture all information in their possession

at the time of the request regarding the environmental condition

of the real property to be conveyed under this section. The liability

and responsibility of any person under any environmental law

shall remain unchanged with respect to the landfill, except as

provided in this title, including section 2913.

(f) SURVEYS.—All costs of necessary surveys for the conveyance

of real property under this section shall be borne by Will County,

Illinois.

(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary of the

Army may require such additional terms and conditions in connection with the conveyance under this section as the Secretary of

the Army considers appropriate to protect the interests of the

United States.

SEC. 2923. CONVEYANCE OF CERTAIN REAL PROPERTY AT ARSENAL

FOR INDUSTRIAL PARKS.

(a) CONVEYANCE AUTHORIZED.—Subject to section 2931, the

Secretary of the Army may convey to the State of Illinois, all

right, title, and interest of the United States in and to the parcels

of real property at the Arsenal described in subsection (b), which

shall be used as industrial parks to replace all or a part of the

economic activity lost at the Arsenal.

(b) DESCRIPTION OF PROPERTY.—The real property at the

Arsenal authorized to be transferred under subsection (a) consists

of the following parcels:

(1) A parcel of approximately 1,900 acres, the approximate

legal description of which includes part of section 30, Jackson

Township, Township 34 North, Range 10 East, and sections

or parts of sections 24, 25, 26, 35, and 36, Township 34 North,

Range 9 East, in Channahon Township, an area of 9.77 acres

around the Des Plaines River Pump Station located in the

southeast quarter of section 15, Township 34 North, Range

9 East of the Third Principal Meridian, in Channahon Township, and an area of 511 feet by 596 feet around the Kankakee

River Pump Station in the Northwest Quarter of section 5,

Township 33 North, Range 9 East, east of the Third Principal

Meridian in Wilmington Township, containing 6.99 acres,

located along the easterly side of the Kankakee Cut-Off in

Will County, Illinois, as depicted in the Arsenal land use concept, and the connecting piping to the northern industrial site,

as described by the United States Army Report of Availability,

dated 13 December 1993.

(2) A parcel of approximately 1,100 acres, the approximate

legal description of which includes part of sections 16, 17,

and 18 in Florence Township, Township 33 North, Range 10

East, Will County, Illinois, as depicted in the Arsenal land

use concept.

(c) CONSIDERATION.—

(1) DELAY IN PAYMENT OF CONSIDERATION.—After the end

of the 20-year period beginning on the date on which the

conveyance under subsection (a) is completed, the State of

Illinois shall pay to the United States an amount equal to

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 607

fair market value of the conveyed property as of the time

of the conveyance. (2) EFFECT OF RECONVEYANCE BY STATE.—If the State of

Illinois reconveys all or any part of the conveyed property

during such 20-year period, the State shall pay to the United

States an amount equal to the fair market value of the

reconveyed property as of the time of the reconveyance, excluding the value of any improvements made to the property by

the State.

(3) DETERMINATION OF FAIR MARKET VALUE.—The Secretary

of the Army shall determine fair market value in accordance

with Federal appraisal standards and procedures.

(4) TREATMENT OF LEASES.—The Secretary of the Army

may treat a lease of the property within such 20-year period

as a reconveyance if the Secretary determines that the lease

is being used to avoid application of paragraph (2).

(5) DEPOSIT OF PROCEEDS.—The Secretary of the Army

shall deposit any proceeds received under this subsection in

the special account established pursuant to section 204(h)(2)

of the Federal Property and Administrative Services Act of

1949 (40 U.S.C. 485(h)(2)).

(d) CONDITIONS OF CONVEYANCE.—

(1) REDEVELOPMENT AUTHORITY.—The conveyance under

subsection (a) shall be subject to the condition that the Governor

of the State of Illinois, in consultation with the Mayor of the

Village of Elwood, Illinois, and the Mayor of the City of

Wilmington, Illinois, establish a redevelopment authority to

be responsible for overseeing the development of the industrial

parks on the conveyed property.

(2) TIME FOR ESTABLISHMENT.—To satisfy the condition

specified in paragraph (1), the redevelopment authority shall

be established within one year after the date of the enactment

of this title.

(e) SURVEYS.—All costs of necessary surveys for the conveyance

of real property under this section shall be borne by the State

of Illinois.

(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary of the

Army 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.

Subtitle C—Miscellaneous Provisions

SEC. 2931. DEGREE OF ENVIRONMENTAL CLEANUP.

(a) IN GENERAL.—Nothing in this title shall be construed to

restrict or lessen the degree of cleanup at the Arsenal required

to be carried out under provisions of any environmental law.

(b) RESPONSE ACTION.—The establishment of the Midewin

National Tallgrass Prairie under subtitle A and the additional

real property transfers or conveyances authorized under subtitle

B shall not restrict or lessen in any way any response action

or degree of cleanup under CERCLA or other environmental law,

or any action required under any environmental law to remediate

petroleum products or their derivatives (including motor oil and

aviation fuel), required to be carried out under the authority of

the Secretary of the Army at the Arsenal and surrounding areas.

110 STAT. 608 PUBLIC LAW 104–106—FEB. 10, 1996

(c) ENVIRONMENTAL QUALITY OF PROPERTY.—Any contract for

sale, deed, or other transfer of real property under subtitle B

shall be carried out in compliance with all applicable provisions

of section 120(h) of CERCLA and other environmental laws.

SEC. 2932. RETENTION OF PROPERTY USED FOR ENVIRONMENTAL

CLEANUP.

(a) RETENTION OF CERTAIN PROPERTY.—Unless and until the

Arsenal property described in this subsection is actually transferred

or conveyed under this title or other applicable law, the Secretary

of the Army may retain jurisdiction, authority, and control over

real property at the Arsenal to be used for—

(1) water treatment;

(2) the treatment, storage, or disposal of any hazardous

substance, pollutant or contaminant, hazardous material, or

petroleum products or their derivatives;

(3) other purposes related to any response action at the

Arsenal; and

(4) other actions required at the Arsenal under any environmental law to remediate contamination or conditions of noncompliance with any environmental law.

(b) CONDITIONS.—The Secretary of the Army shall consult with

the Secretary of Agriculture regarding the identification and

management of the real property retained under this section and

ensure that activities carried out on that property are consistent,

to the extent practicable, with the purposes for which the Midewin

National Tallgrass Prairie is established, as specified in section

2914(c), and with the other provisions of sections 2914 and 2915.

(c) PRIORITY OF RESPONSE ACTIONS.—In the case of any conflict

between management of the property by the Secretary of Agriculture and any response action required under CERCLA, or any

other action required under any other environmental law, including

actions to remediate petroleum products or their derivatives, the

response action or other action shall take priority.

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 $1,567,175,000, to be allocated as follows:

(1) For core stockpile stewardship, $1,159,708,000, to be

allocated as follows:

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 609

(A) For operation and maintenance, $1,078,403,000.

(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),

$81,305,000, 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, $17,995,000.

(2) For inertial fusion, $240,667,000, to be allocated as

follows:

(A) For operation and maintenance, $203,267,000.

(B) For the following plant project (including maintenance, restoration, planning, construction, acquisition, and

modification of facilities, and land acquisition related thereto), $37,400,000:

Project 96–D–111, national ignition facility, location to be determined, $37,400,000.

(3) For technology transfer and education, $160,000,000.

(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 $2,025,083,000, to be allocated as follows:

(1) For operation and maintenance, $1,911,458,000.

(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.

110 STAT. 610 PUBLIC LAW 104–106—FEB. 10, 1996

Project 96–D–123, retrofit heating, ventilation, and air

conditioning 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 $115,000,000.

(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) $37,200,000, for savings resulting from procurement

reform; and

(2) $209,744,000, for use of prior year balances.

SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

(a) ENVIRONMENTAL RESTORATION.—Subject to subsection (h),

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 $1,635,973,000.

(b) WASTE MANAGEMENT.—Subject to subsection (h), funds are

hereby authorized to be appropriated to the Department of Energy

for fiscal year 1996 for waste management in carrying out environmental restoration and waste management activities necessary for

national security programs in the amount of $2,470,598,000, to

be allocated as follows:

(1) For operation and maintenance, $2,295,994,000.

(2) For plant projects (including maintenance, restoration,

planning, construction, acquisition, modification of facilities,

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 611

and the continuation of projects authorized in prior years, and

land acquisition related thereto), $174,604,000, to be allocated

as follows:

Project 96–D–406, spent nuclear fuels canister storage

and stabilization facility, Richland, Washington,

$42,000,000.

Project 96–D–407, mixed waste/low-level waste treatment projects, Rocky Flats Plant, 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,

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 95–D–407, 219–S secondary containment

upgrade, Richland Washington, $1,000,000.

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 tank capacity

increase, Oak Ridge National Laboratory, Oak Ridge, Tennessee, $11,000,000.

Project 94–D–407, initial tank retrieval systems, Richland, Washington, $12,000,000.

Project 94–D–411, solid waste operation complex, Richland, Washington, $6,606,000.

Project 93–D–178, building 374 liquid waste treatment

facility, Rocky Flats Plant, Golden, Colorado, $3,900,000.

Project 93–D–181, radioactive liquid waste line replacement, Richland, Washington, $5,000,000.

Project 93–D–182, replacement of cross-site transfer

system, Richland, Washington, $19,795,000.

Project 93–D–187, high-level waste removal from filled

waste tanks, Savannah River Site, 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.

110 STAT. 612 PUBLIC LAW 104–106—FEB. 10, 1996

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.

(c) TECHNOLOGY DEVELOPMENT.—Subject to subsection (h),

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

$440,510,000.

(d) TRANSPORTATION MANAGEMENT.—Subject to subsection (h),

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 $13,158,000.

(e) NUCLEAR MATERIALS AND FACILITIES STABILIZATION.—Subject to subsection (h), 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 $1,561,854,000 to be allocated

as follows:

(1) For operation and maintenance, $1,447,108,000.

(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), $114,746,000, to be allocated

as follows:

Project 96–D–457, thermal treatment system, Richland

Washington, $1,000,000.

Project 96–D–458, site drainage control, Mound Plant,

Miamisburg, Ohio, $885,000.

Project 96–D–461, electrical distribution upgrade,

Idaho National Engineering Laboratory, Idaho, $1,539,000.

Project 96–D–464, electrical and utility systems

upgrade, Idaho Chemical Processing Plant, Idaho National

Engineering Laboratory, Idaho, $4,952,000.

Project 96–D–468, residue elimination project, Rocky

Flats Plant, Golden, Colorado, $33,100,000.

Project 96–D–471, chlorofluorocarbon heating, ventilation, and air conditioning and chiller retrofit, Savannah

River Site, Aiken, South Carolina, $1,500,000.

Project 95–D–155, upgrade site road infrastructure,

Savannah River Site, South Carolina, $2,900,000.

Project 95–D–156, radio trunking system, Savannah

River Site, South Carolina, $6,000,000.

Project 95–D–454, 324 facility compliance/renovation,

Richland, Washington, $3,500,000.

Project 95–D–456, security facilities upgrade, Idaho

Chemical Processing Plant, Idaho National Engineering

Laboratory, Idaho, $8,382,000.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 613

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

upgrade, Richland, Washington, $1,000,000.

Project 94–D–415, 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 92–D–123, plant fire/security alarm systems

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, 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.

(f) COMPLIANCE AND PROGRAM COORDINATION.—Subject to subsection (h), 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 $46,251,000, to be allocated as follows:

(1) For operation and maintenance, $31,251,000.

(2) For the following plant project (including maintenance,

restoration, planning, construction, acquisition, modification of

facilities, and the continuation of a project authorized in prior

years, and land acquisition related thereto):

Project 95–E–600, hazardous materials training center,

Richland, Washington, $15,000,000.

(g) ANALYSIS, EDUCATION, AND RISK MANAGEMENT.—Subject

to subsection (h), funds are hereby authorized to be appropriated

to the Department of Energy for fiscal year 1996 for analysis,

education, and risk management in carrying out environmental

restoration and waste management activities necessary for national

security programs in the amount of $78,522,000.

(h) ADJUSTMENTS.—The total amount authorized to be appropriated pursuant to this section is the sum of the amounts specified

in subsections (a) through (g) reduced by the sum of—

(1) $652,334,000, for use of prior year balances; and

(2) $37,000,000, for Savannah River Pension Refund.

SEC. 3103. 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

$1,351,975,600, to be allocated as follows:

(1) For verification and control technology, $428,205,600,

to be allocated as follows:

110 STAT. 614 PUBLIC LAW 104–106—FEB. 10, 1996

(A) For nonproliferation and verification research and

development, $224,905,000.

(B) For arms control, $160,964,600.

(C) For intelligence, $42,336,000.

(2) For nuclear safeguards and security, $83,395,000.

(3) For security investigations, $20,000,000.

(4) For security evaluations, $14,707,000.

(5) For the Office of Nuclear Safety, $17,679,000.

(6) For worker and community transition assistance,

$82,500,000.

(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, $652,568,000.

(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),

$29,600,000, to be allocated as follows:

Project GPN–101, general plant projects, various

locations, $6,600,000.

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 authorized to be appropriated pursuant to this section is the amount authorized to be

appropriated in subsection (a) reduced by $70,000,000, for use of

prior year balances.

SEC. 3104. 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

$248,400,000.

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

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 615

(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 section 3101, 3102,

or 3103, 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.

Reports.

110 STAT. 616 PUBLIC LAW 104–106—FEB. 10, 1996

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 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 period as the authorization to which the amounts are transferred.

(2) Not more than five percent of any such authorization may

be transferred between authorizations under paragraph (1). No

such authorization may be increased or decreased by more than

five 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 relating

to weapons activities necessary for national security programs

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 (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.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 617

(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 3103, to perform planning, design, and construction

activities for any Department of Energy national security program

construction project that, as determined by the Secretary, must

proceed expeditiously in order to protect public health and safety,

to 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.

SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE DEPARTMENT OF ENERGY.

Subject to the provisions of appropriations Acts and section

3121, 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 operation and maintenance or for plant projects 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) SEMI-ANNUAL REPORTS ON OBLIGATION OF FUNDS.—(1) Not

later than 30 days after the date of the enactment of this Act,

and thereafter not later than April 1 and October 1 of each year,

the Secretary of Energy shall submit to Congress a report on

each obligation during the preceding six months of funds appropriated for a program described in subsection (a).

(2) Each such report shall specify—

(A) the activities and forms of assistance for which the

Secretary of Energy has obligated funds;

(B) the amount of the obligation;

22 USC 5952

note.

Reports.

110 STAT. 618 PUBLIC LAW 104–106—FEB. 10, 1996

(C) the activities and forms of assistance for which the

Secretary anticipates obligating funds during the six months

immediately following the report, and the amount of each such

anticipated obligation; and (D) 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 has obligated funds referred to in subparagraph

(A).

SEC. 3132. NATIONAL IGNITION FACILITY.

None of the funds authorized to be appropriated pursuant

to this title for construction of the National Ignition Facility may

be obligated until— (1) the Secretary of Energy determines that the construc- tion 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 determination.

SEC. 3133. TRITIUM PRODUCTION PROGRAM.

(a) ESTABLISHMENT OF PROGRAM.—The Secretary of Energy shall establish a tritium production program that is capable of

meeting the tritium requirements of the United States for nuclear

weapons. In carrying out the tritium production program, the Secretary shall— (1) complete the tritium supply and recycling environ- mental impact statement in preparation by the Secretary as

of the date of the enactment of this Act; and

(2) assess alternative means for tritium production, including production through— (A) types of new and existing reactors, including multi- purpose reactors (such as advanced light water reactors

and gas turbine gas-cooled reactors) capable of meeting

both the tritium production requirements and the plutonium disposition requirements of the United States for

nuclear weapons; (B) an accelerator; and

(C) multipurpose reactor projects carried out by the private sector and the Government. (b) FUNDING.—Of funds authorized to be appropriated to the

Department of Energy pursuant to section 3101, not more than

$50,000,000 shall be available for the tritium production program

established pursuant to subsection (a). (c) LOCATION OF TRITIUM PRODUCTION FACILITY.—The Secretary shall locate any new tritium production facility of the Department

of Energy at the Savannah River Site, South Carolina. (d) COST-BENEFIT ANALYSIS.—(1) The Secretary shall include in the statements referred to in paragraph (2) a comparison of

the costs and benefits of carrying out two projects for the separate

performance of the tritium production mission of the Department

and the plutonium disposition mission of the Department with

the costs and benefits of carrying out one multipurpose project

for the performance of both such missions.

(2) The statements referred to in paragraph (1) are— (A) the environmental impact statement referred to in subsection (a)(1);

South Carolina.

42 USC 2121

note.

Notification.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 619

(B) the plutonium disposition environmental impact statement in preparation by the Secretary as of the date of the

enactment of this Act; and

(C) assessments related to the environmental impact statements referred to in subparagraphs (A) and (B).

(e) REPORT.—Not later than 45 days after the date of the

enactment of this Act, 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 tritium

production program established pursuant to subsection (a). The

report shall include a specification of—

(1) the planned expenditures of the Department during

fiscal year 1996 for any of the alternative means for tritium

production assessed under subsection (a)(2);

(2) the amount of funds required to be expended by the

Department, and the program milestones (including feasibility

demonstrations) required to be met, during fiscal years 1997

through 2001 to ensure tritium production beginning not later

than 2005 that is adequate to meet the tritium requirements

of the United States for nuclear weapons; and

(3) the amount of such funds to be expended and such

program milestones to be met during such fiscal years to ensure

such tritium production beginning not later than 2011.

(f) TRITIUM TARGETS.—Of the funds made available pursuant

to subsection (b), not more than $5,000,000 shall be available for

the Idaho National Engineering Laboratory for the test and development of nuclear reactor tritium targets for the types of reactors

assessed under subsection (a)(2)(A).

SEC. 3134. 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 in the amount of $350,000 assessed under the Comprehensive Environmental Response, Compensation, and Liability Act of

1980 (42 U.S.C. 9601 et seq.) against the Rocky Flats Site, Colorado.

SEC. 3135. FISSILE MATERIALS DISPOSITION.

(a) IN GENERAL.—Of the funds authorized to be appropriated

to the Department of Energy for fiscal year 1996 pursuant to

section 3103, $70,000,000 shall be available only for purposes of

completing the evaluation of, and commencing implementation of,

the interim- and long-term storage and disposition (including storage and disposition through the use of advanced light water reactors

and gas turbine gas-cooled reactors) of fissile materials (including

plutonium, highly enriched uranium, and other fissile materials)

that are excess to the national security needs of the United States.

(b) AVAILABILITY OF FUNDS FOR MULTIPURPOSE REACTORS.—

Of funds made available pursuant to subsection (a), sufficient funds

shall be made available for the complete consideration of multipurpose reactors for the disposition of fissile materials in the programmatic environmental impact statement of the Department.

(c) LIMITATION.—Of funds made available pursuant to subsection (a), $10,000,000 shall be available only for a plutonium

resource assessment.

110 STAT. 620 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 3136. TRITIUM RECYCLING.

(a) IN GENERAL.—Except as provided in subsection (b), the

following activities shall be carried out at the Savannah River

Site, South Carolina:

(1) All tritium recycling for weapons, including tritium

refitting.

(2) All activities regarding tritium formerly carried out

at the Mound Plant, Ohio.

(b) EXCEPTION.—The following activities may be carried out

at the Los Alamos National Laboratory, New Mexico:

(1) Research on tritium.

(2) Work on tritium in support of the defense inertial

confinement fusion program.

(3) Provision of technical assistance to the Savannah River

Site regarding the weapons surveillance program.

SEC. 3137. MANUFACTURING INFRASTRUCTURE FOR REFABRICATION

AND CERTIFICATION OF NUCLEAR WEAPONS STOCKPILE.

(a) MANUFACTURING PROGRAM.—The Secretary of Energy shall

carry out a program for purposes of establishing within the Government a manufacturing infrastructure that has the capabilities of

meeting the following objectives as specified in the Nuclear Posture

Review:

(1) To provide a stockpile surveillance engineering base.

(2) To refabricate and certify weapon components and types

in the enduring nuclear weapons stockpile, as necessary.

(3) To fabricate and certify new nuclear warheads, as necessary.

(4) To support nuclear weapons.

(5) To supply sufficient tritium in support of nuclear weapons to ensure an upload hedge in the event circumstances

require.

(b) REQUIRED CAPABILITIES.—The manufacturing infrastructure

established under the program under subsection (a) shall include

the following capabilities (modernized to attain the objectives

referred to in that subsection):

(1) The weapons assembly capabilities of the Pantex Plant.

(2) The weapon secondary fabrication capabilities of the

Y–12 Plant, Oak Ridge, Tennessee.

(3) The tritium production, recycling, and other weaponsrelated capabilities of the Savannah River Site.

(4) The non-nuclear component capabilities of the Kansas

City Plant.

(c) NUCLEAR POSTURE REVIEW.—For purposes of subsection (a),

the term ‘‘Nuclear Posture Review’’ means the Department of

Defense Nuclear Posture Review as contained in the Report of

the Secretary of Defense to the President and the Congress dated

February 19, 1995, or subsequent such reports.

(d) FUNDING.—Of the funds authorized to be appropriated under

section 3101(b), $143,000,000 shall be available for carrying out

the program required under this section, of which—

(1) $35,000,000 shall be available for activities at the

Pantex Plant;

(2) $30,000,000 shall be available for activities at the Y–

12 Plant, Oak Ridge, Tennessee;

(3) $35,000,000 shall be available for activities at the

Savannah River Site; and

42 USC 2121

note.

South Carolina.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 621

(4) $43,000,000 shall be available for activities at the Kansas City Plant.

(e) PLAN AND REPORT.—The Secretary shall develop a plan for the implementation of this section. Not later than March 1,

1996, the Secretary shall submit to Congress a report on the obligations the Secretary has incurred, and plans to incur, during fiscal

year 1996 for the program referred to in subsection (a).

SEC. 3138. HYDRONUCLEAR EXPERIMENTS.

Of the funds authorized to be appropriated to the Department

of Energy pursuant to section 3101, $30,000,000 shall be available

to prepare for the commencement of a program of hydronuclear

experiments at the nuclear weapons design laboratories at the

Nevada Test Site, Nevada. The purpose of the program shall be

to maintain confidence in the reliability and safety of the nuclear

weapons stockpile.

SEC. 3139. LIMITATION ON AUTHORITY TO CONDUCT HYDRONUCLEAR

TESTS.

Nothing in this Act may be construed to authorize the conduct of hydronuclear tests or to amend or repeal the requirements of

section 507 of the Energy and Water Development Appropriations

Act, 1993 (Public Law 102–377; 106 Stat. 1343; 42 U.S.C. 2121

note).

SEC. 3140. FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS

CRITICAL TO THE DEPARTMENT OF ENERGY NUCLEAR

WEAPONS COMPLEX.

(a) IN GENERAL.—The Secretary of Energy shall conduct a

fellowship program for the development of skills critical to the

ongoing mission of the Department of Energy nuclear weapons

complex. Under the fellowship program, the Secretary shall—

(1) provide educational assistance and research assistance

to eligible individuals to facilitate the development by such

individuals of skills critical to maintaining the ongoing mission

of the Department of Energy nuclear weapons complex;

(2) employ eligible individuals at the facilities described

in subsection (c) in order to facilitate the development of such

skills by these individuals; or

(3) provide eligible individuals with the assistance and

the employment.

(b) ELIGIBLE INDIVIDUALS.—Individuals eligible for participation

in the fellowship program are the following:

(1) Students pursuing graduate degrees in fields of science

or engineering that are related to nuclear weapons engineering

or to the science and technology base of the Department of

Energy.

(2) Individuals engaged in postdoctoral studies in such

fields.

(c) COVERED FACILITIES.—The Secretary shall carry out the

fellowship program at or in connection with the following facilities:

(1) The Kansas City Plant, Kansas City, Missouri.

(2) The Pantex Plant, Amarillo, Texas.

(3) The Y–12 Plant, Oak Ridge, Tennessee.

(4) The Savannah River Site, Aiken, South Carolina.

(d) ADMINISTRATION.—The Secretary shall carry out the fellowship program at a facility referred to in subsection (c) through

the stockpile manager of the facility.

42 USC 2121

note.

110 STAT. 622 PUBLIC LAW 104–106—FEB. 10, 1996

(e) ALLOCATION OF FUNDS.—The Secretary shall, in consultation with the Assistant Secretary of Energy for Defense Programs, allocate funds available for the fellowship program under subsection

(f) among the facilities referred to in subsection (c). The Secretary

shall make the allocation after evaluating an assessment by the

weapons program director of each such facility of the personnel

and critical skills necessary at the facility for carrying out the

ongoing mission of the facility. (f) FUNDING.—Of the funds authorized to be appropriated to the Department of Energy for fiscal year 1996 under section 3101(b),

$10,000,000 may be used for the purpose of carrying out the fellowship program under this section.

SEC. 3141. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH

AND DEVELOPMENT PURPOSES.

Funds appropriated or otherwise made available to the Department of Energy for fiscal year 1996 under section 3101 may be

obligated and expended for activities under the Department of

Energy Laboratory Directed Research and Development Program

or under Department of Energy technology transfer programs only

if such activities support the national security mission of the

Department.

SEC. 3142. PROCESSING AND TREATMENT OF HIGH-LEVEL NUCLEAR

WASTE AND SPENT NUCLEAR FUEL RODS.

(a) PROCESSING OF SPENT NUCLEAR FUEL RODS.—Of the

amounts appropriated pursuant to section 3102, there shall be

available to the Secretary of Energy to respond effectively to new

requirements for managing spent nuclear fuel— (1) not more than $30,000,000, for the Savannah River

Site for the development and implementation of a program

for the processing, reprocessing, separation, reduction, isolation,

and interim storage of high-level nuclear waste associated with

aluminum clad spent fuel rods and foreign spent fuel rods;

and

(2) not more than $15,000,000, for the Idaho National

Engineering Laboratory for the development and implementation of a program for the treatment, preparation, and conditioning of high-level nuclear waste and spent nuclear fuel

(including naval spent nuclear fuel), nonaluminum clad fuel

rods, and foreign fuel rods for interim storage and final disposition.

(b) IMPLEMENTATION PLAN.—Not later than April 30, 1996,

the Secretary shall submit to Congress a five-year plan for the

implementation of the programs referred to in subsection (a). The

plan shall include— (1) an assessment of the facilities required to be constructed

or upgraded to carry out the processing, separation, reduction,

isolation and interim storage of high-level nuclear waste; (2) a description of the technologies, including stabilization

technologies, that are required to be developed for the efficient

conduct of the programs; (3) a projection of the dates upon which activities under

the programs are sufficiently completed to provide for the transfers of such waste to permanent repositories; and

(4) a projection of the total cost to complete the programs. (c) ELECTROMETALLURGICAL WASTE TREATMENT TECHNOLOGIES.—Of the amount appropriated pursuant to section

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 623

3102(c), not more than $25,000,000 shall be available for development of electrometallurgical waste treatment technologies at the

Argonne National Laboratory. (d) USE OF FUNDS FOR SETTLEMENT AGREEMENT.—Funds made

available pursuant to subsection (a)(2) for the Idaho National

Engineering Laboratory shall be considered to be funds made available in partial fulfillment of the terms and obligations set forth

in the settlement agreement entered into by the United States

with the State of Idaho in the actions captioned Public Service

Co. of Colorado v. Batt, Civil No. 91–0035–S–EJL, and United

States v. Batt, Civil No. 91–0054–S–EJL, in the United States

District Court for the District of Idaho and the consent order

of the United States District Court for the District of Idaho, dated

October 17, 1995, that effectuates the settlement agreement.

SEC. 3143. PROTECTION OF WORKERS AT NUCLEAR WEAPONS FACILITIES.

Of the funds authorized to be appropriated to the Department

of Energy under section 3102, $10,000,000 shall be available to

carry out activities authorized under section 3131 of the National

Defense Authorization Act for Fiscal Years 1992 and 1993 (Public

Law 102–190; 105 Stat. 1571; 42 U.S.C. 7274d), relating to worker

protection at nuclear weapons facilities.

SEC. 3144. DEPARTMENT OF ENERGY DECLASSIFICATION PRODUCTIVITY INITIATIVE.

Of the funds authorized to be appropriated to the Department

of Energy under section 3103, $3,000,000 shall be available for

the Declassification Productivity Initiative of the Department of

Energy.

Subtitle D—Other Matters

SEC. 3151. REPORT ON FOREIGN TRITIUM PURCHASES.

(a) REPORT.—Not later than May 1, 1996, the President shall

submit to the congressional defense committees a report on the

feasibility of, the cost of, and the policy, 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.

(b) FORM OF REPORT.—The report shall be submitted in

unclassified form, but may contain a classified appendix.

SEC. 3152. STUDY ON NUCLEAR TEST READINESS POSTURES.

Not later than February 15, 1996, the Secretary of Energy

shall submit to Congress a report on the costs, programmatic issues,

and other issues associated with sustaining the capability of the

Department of Energy—

(1) to conduct an underground nuclear test 6 months after

the date on which the President determines that such a test

is necessary to ensure the national security of the United

States;

(2) to conduct such a test 18 months after such date;

and

(3) to conduct such a test 36 months after such date.

Reports.

President.

110 STAT. 624 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 3153. MASTER PLAN FOR THE CERTIFICATION, STEWARDSHIP,

AND MANAGEMENT OF WARHEADS IN THE NUCLEAR

WEAPONS STOCKPILE.

(a) MASTER PLAN REQUIREMENT.—Not later than March 15,

1996, the President shall submit to Congress a master plan for

maintaining the nuclear weapons stockpile. The President shall

submit to Congress an update of the master plan not later than

March 15 of each year thereafter.

(b) PLAN ELEMENTS.—The master plan and each update of

the master plan shall set forth the following:

(1) The numbers of weapons (including active and inactive

weapons) for each type of weapon in the nuclear weapons

stockpile.

(2) The expected design lifetime of each weapon type, the

current age of each weapon type, and any plans (including

the analytical basis for such plans) for lifetime extensions of

a weapon type.

(3) An estimate of the lifetime of the nuclear and nonnuclear components of the weapons (including active weapons

and inactive weapons) in the nuclear weapons stockpile, and

any plans (including the analytical basis for such plans) for

lifetime extensions of such components.

(4) A schedule of the modifications, if any, required for

each weapon type (including active and inactive weapons) in

the nuclear weapons stockpile and the cost of such modifications.

(5) The process to be used in recertifying the safety, reliability, and performance of each weapon type (including active

weapons and inactive weapons) in the nuclear weapons stockpile.

(6) The manufacturing infrastructure required to maintain

the nuclear weapons stockpile stewardship and management

programs, including a detailed project plan that demonstrates

the manner by which the Government will develop by 2002

the capability to refabricate and certify warheads in the nuclear

weapons stockpile and to design, fabricate, and certify new

warheads.

(c) FORM OF PLAN.—The master plan and each update of the

master plan shall be submitted in unclassified form, but may contain a classified appendix.

SEC. 3154. PROHIBITION ON INTERNATIONAL INSPECTIONS OF

DEPARTMENT OF ENERGY FACILITIES UNLESS PROTECTION OF RESTRICTED DATA IS CERTIFIED.

(a) PROHIBITION ON INSPECTIONS.—(1) The Secretary of Energy

may not allow an inspection of a nuclear weapons facility by the

International Atomic Energy Agency until the Secretary certifies

to Congress that no restricted data will be revealed during such

inspection.

(2) For purposes of paragraph (1), 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)).

(b) EXTENSION OF NOTICE-AND-WAIT REQUIREMENT REGARDING

PROPOSED COOPERATION AGREEMENTS.—Section 3155(b) of the

National Defense Authorization Act for Fiscal Year 1995 (Public

Law 103–337; 108 Stat. 3092) is amended by striking out ‘‘December

31, 1995’’ and inserting in lieu thereof ‘‘October 1, 1996’’.

42 USC 2153

note.

42 USC 2164

note.

President.

42 USC 2121

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 625

SEC. 3155. REVIEW OF CERTAIN DOCUMENTS BEFORE DECLASSIFICATION AND RELEASE.

(a) IN GENERAL.—The Secretary of Energy shall ensure that,

before a document of the Department of Energy that contains

national security information is released or declassified, such document is reviewed to determine whether it contains restricted data.

(b) LIMITATION ON DECLASSIFICATION.—The Secretary may not

implement the automatic declassification provisions of Executive

Order 12958 if the Secretary determines that such implementation

could result in the automatic declassification and release of documents containing restricted data.

(c) 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. 3156. ACCELERATED SCHEDULE FOR ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT ACTIVITIES.

(a) ACCELERATED CLEANUP.—The Secretary of Energy shall

accelerate the schedule for environmental restoration and waste

management activities and projects for a site at a Department

of Energy defense nuclear facility if the Secretary determines that

such an accelerated schedule will achieve meaningful, long-term

cost savings to the Federal Government and could substantially

accelerate the release of land for local reuse.

(b) CONSIDERATION OF FACTORS.—In making a determination

under subsection (a), the Secretary shall consider the following:

(1) The cost savings achievable by the Federal Government.

(2) The amount of time for completion of environmental

restoration and waste management activities and projects at

the site that can be reduced from the time specified for completion of such activities and projects in the baseline environmental management report required to be submitted for 1995

under section 3153 of the National Defense Authorization Act

for Fiscal Year 1994 (42 U.S.C. 7274k).

(3) The potential for reuse of the site.

(4) The risks that the site poses to local health and safety.

(5) The proximity of the site to populated areas.

(c) REPORT.—Not later than May 1, 1996, the Secretary shall

submit to Congress a report on each site for which the Secretary

has accelerated the schedule for environmental restoration and

waste management activities and projects under subsection (a).

The report shall include an explanation of the basis for the determination for that site required by such subsection, including an

explanation of the consideration of the factors described in subsection (b).

(d) SAVINGS PROVISION.—Nothing in this section may be construed to affect a specific statutory requirement for a specific

environmental restoration or waste management activity or project

or to modify or otherwise affect applicable statutory or regulatory

environmental restoration and waste management requirements,

including substantive standards intended to protect public health

and the environment.

SEC. 3157. SENSE OF CONGRESS REGARDING CERTAIN ENVIRONMENTAL RESTORATION REQUIREMENTS.

It is the sense of Congress that—

42 USC 7274k

note.

42 USC 2162

note.

110 STAT. 626 PUBLIC LAW 104–106—FEB. 10, 1996

(1) an individual acting within the scope of that individual’s employment with a Federal agency should not be personally

subject to civil or criminal sanctions (to the extent such sanctions are provided for by law) as a result of the failure to

comply with an environmental cleanup requirement under the

Solid Waste Disposal Act or the Comprehensive Environmental

Response, Compensation, and Liability Act or an analogous

requirement under a comparable Federal, State, or local law,

in any circumstance under which such failure to comply is

due to an insufficiency of funds appropriated to carry out such

requirement; (2) Federal and State enforcement authorities should

refrain from an enforcement action in a circumstance described

in paragraph (1); and (3) if funds appropriated for a fiscal year after fiscal year 1995 are insufficient to carry out any such environmental

cleanup requirement, Congress should elicit the views of Federal agencies, affected States, and the public, and consider

appropriate legislative action to address personal criminal

liability in a circumstance described in paragraph (1) and any

related issues pertaining to potential liability of a Federal

agency.

SEC. 3158. RESPONSIBILITY FOR DEFENSE PROGRAMS EMERGENCY

RESPONSE PROGRAM.

The Office of Military Applications under the Assistant Secretary of Energy for Defense Programs shall retain responsibility

for the Defense Programs Emergency Response Program within

the Department of Energy.

SEC. 3159. REQUIREMENTS FOR DEPARTMENT OF ENERGY WEAPONS

ACTIVITIES BUDGETS FOR FISCAL YEARS AFTER FISCAL

YEAR 1996.

(a) IN GENERAL.—The weapons activities budget of the Department of Energy shall be developed in accordance with the Nuclear

Posture Review, the Post Nuclear Posture Review Stockpile Memorandum currently under development, and the programmatic and

technical requirements associated with the review and memorandum.

(b) REQUIRED DETAIL.—The Secretary of Energy shall include

in the materials that the Secretary submits to Congress in support

of the budget for a fiscal year submitted by the President pursuant

to section 1105 of title 31, United States Code, a long-term program

plan, and a near-term program plan, for the certification and

stewardship of the nuclear weapons stockpile.

(c) DEFINITION.—In this section, the term ‘‘Nuclear Posture

Review’’ means the Department of Defense Nuclear Posture Review

as contained in the report of the Secretary of Defense to the President and the Congress dated February 19, 1995, or in subsequent

such reports.

SEC. 3160. REPORT ON HYDRONUCLEAR TESTING.

(a) REPORT.—The Secretary of Energy shall direct the joint

preparation by the Directors of the Lawrence Livermore National

Laboratory and the Los Alamos National Laboratory of a report

on the advantages and disadvantages with respect to the safety

and reliability of the nuclear weapons stockpile of permitting alternative limits to the current limit on the explosive yield of

42 USC 7271b

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 627

hydronuclear and other explosive tests. The report shall address

the following explosive yield limits: (1) 4 pounds (TNT equivalent).

(2) 400 pounds (TNT equivalent).

(3) 4,000 pounds (TNT equivalent).

(4) 40,000 pounds (TNT equivalent).

(5) 400 tons (TNT equivalent). (b) FUNDING.—The Secretary shall make available funds appro- priated to the Department of Energy pursuant to section 3101

for preparation of the report required under subsection (a).

SEC. 3161. APPLICABILITY OF ATOMIC ENERGY COMMUNITY ACT OF

1955 TO LOS ALAMOS, NEW MEXICO.

(a) DATE OF TRANSFER OF UTILITIES.—Section 72 of the Atomic

Energy Community Act of 1955 (42 U.S.C. 2372) is amended by

striking out ‘‘not later than five years after the date it is included

within this Act’’ and inserting in lieu thereof ‘‘not later than June

30, 1998’’.

(b) DATE OF TRANSFER OF MUNICIPAL INSTALLATIONS.—Section

83 of such Act (42 U.S.C. 2383) is amended by striking out ‘‘not

later than five years after the date it is included within this Act’’

and inserting in lieu thereof ‘‘not later than June 30, 1998’’. (c) RECOMMENDATION FOR FURTHER ASSISTANCE PAYMENTS.— Section 91d. of such Act (42 U.S.C. 2391) is amended—

(1) by striking out ‘‘, and the Los Alamos School Board;’’ and all that follows through ‘‘county of Los Alamos, New Mexico’’ and inserting in lieu thereof ‘‘; or not later than June

30, 1996, in the case of the Los Alamos School Board and

the county of Los Alamos, New Mexico’’; and (2) by adding at the end the following new sentence: ‘‘If the recommendation under the preceding sentence regarding

the Los Alamos School Board or the county of Los Alamos,

New Mexico, indicates a need for further assistance for the

school board or the county, as the case may be, after June

30, 1997, the recommendation shall include a report and plan

describing the actions required to eliminate the need for further

assistance for the school board or the county, including a proposal for legislative action to carry out the plan.’’.

(d) CONTRACT TO MAKE PAYMENTS.—Section 94 of such Act

(42 U.S.C. 2394) is amended—

(1) by striking out ‘‘June 30, 1996’’ each place it appears in the proviso in the first sentence and inserting in lieu thereof

‘‘June 30, 1997’’; and

(2) by striking out ‘‘July 1, 1996’’ in the second sentence and inserting in lieu thereof ‘‘July 1, 1997’’.

SEC. 3162. SENSE OF CONGRESS REGARDING SHIPMENTS OF SPENT

NUCLEAR FUEL.

(a) FINDINGS.—Congress makes the following findings: (1) The United States has entered into a settlement agreement with the State of Idaho in the actions captioned Public

Service Co. of Colorado v. Batt, Civil No. 91–0035–S–EJL,

and United States v. Batt, Civil No. 91–0054–S–EJL, in the

United States District Court for the District of Idaho, regarding

shipment of naval spent nuclear fuel to Idaho, examination

and storage of such fuel in Idaho, and other matters. (2) Under this court enforceable agreement— (A) the State of Idaho has agreed—

Reports.

110 STAT. 628 PUBLIC LAW 104–106—FEB. 10, 1996

(i) to accept 575 shipments of naval spent nuclear

fuel from the Navy into Idaho between October 17,

1995 and 2035;

(ii) to accept certain shipments of spent nuclear

fuel from the Department of Energy into Idaho between

October 17, 1995 and 2035; and

(iii) to allow the Navy and the Department of

Energy, on an interim basis, to store the spent nuclear

fuel in Idaho over the next 40 years; and

(B) the United States has made commitments—

(i) to remove all spent nuclear fuel (except certain

quantities for testing) from Idaho by 2035; and

(ii) to facilitate the cleanup and stabilization of

radioactive waste at the Idaho National Engineering

Laboratory.

(3) The settlement agreement allows the Department of

Energy and the Department of the Navy to meet responsibilities

that are important to the national security interests of the

United States.

(4) Authorizations and appropriations of funds will be necessary in order to provide for fulfillment of the terms and

obligations set forth in the settlement agreement.

(b) SENSE OF CONGRESS.—(1) Congress recognizes the need

to implement the terms, conditions, rights, and obligations contained in the settlement agreement referred to in subsection (a)(1)

and the consent order of the United States District Court for the

District of Idaho, dated October 17, 1995, that effectuates the settlement agreement in accordance with those terms, conditions, rights,

and obligations.

(2) It is the sense of Congress that funds requested by the

President to carry out the settlement agreement and such consent

order should be appropriated for that purpose.

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

Subtitle A—Authorization of Disposals and

Use of Funds

SEC. 3301. DEFINITIONS.

For purposes of this subtitle:

(1) 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).

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 629

(2) The term ‘‘National Defense Stockpile Transaction

Fund’’ means the fund in the Treasury of the United States

established under section 9(a) of the Strategic and Critical

Materials Stock Piling Act (50 U.S.C. 98h(a)).

SEC. 3302. 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 for the authorized uses of such funds under section

9(b)(2) of the Strategic and Critical Materials Stock Piling Act

(50 U.S.C. 98h(b)(2)).

(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. 3303. DISPOSAL OF CHROMITE AND MANGANESE ORES AND

CHROMIUM FERRO AND MANGANESE METAL ELECTROLYTIC.

(a) 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 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 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.

SEC. 3304. RESTRICTIONS ON DISPOSAL OF MANGANESE FERRO.

(a) DISPOSAL OF LOWER GRADE MATERIAL FIRST.—The President may not dispose of high carbon manganese ferro in the

National Defense Stockpile that meets the National Defense Stockpile classification of Grade One, Specification 30(a), as revised on

May 22, 1992, until completing the disposal of all manganese ferro

in the National Defense Stockpile that does not meet such classification. The President may not reclassify manganese ferro in the

National Defense Stockpile after the date of the enactment of this

Act.

(b) REQUIREMENT FOR REMELTING BY DOMESTIC FERROALLOY

PRODUCERS.—Manganese ferro in the National Defense Stockpile

that does not meet the classification specified in subsection (a)

may be sold only for remelting by a domestic ferroalloy producer

President.

110 STAT. 630 PUBLIC LAW 104–106—FEB. 10, 1996

unless the President determines that a domestic ferroalloy producer

is not available to acquire the material.

(c) DOMESTIC FERROALLOY PRODUCER DEFINED.—For purposes

of this section, the term ‘‘domestic ferroalloy producer’’ means a

company or other business entity that, as determined by the President—

(1) is engaged in operations to upgrade manganese ores

of metallurgical grade or manganese ferro; and

(2) conducts a significant level of its research, development,

engineering, and upgrading operations in the United States.

SEC. 3305. TITANIUM INITIATIVE TO SUPPORT BATTLE TANK

UPGRADE PROGRAM.

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.

Subtitle B—Programmatic Change

SEC. 3311. TRANSFER OF EXCESS DEFENSE-RELATED MATERIALS TO

STOCKPILE FOR DISPOSAL.

(a) TRANSFER AND DISPOSAL.—Section 4 of the Strategic and

Critical Materials Stock Piling Act (50 U.S.C. 98c) is amended

by adding at the end the following new subsection:

‘‘(c)(1) The Secretary of Energy, in consultation with the Secretary of Defense, shall transfer to the stockpile for disposal in

accordance with this Act uncontaminated materials that are in

the Department of Energy inventory of materials for the production

of defense-related items, are excess to the requirements of the

Department for that purpose, and are suitable for transfer to the

stockpile and disposal through the stockpile.

‘‘(2) The Secretary of Defense shall determine whether materials

are suitable for transfer to the stockpile under this subsection,

are suitable for disposal through the stockpile, and are

uncontaminated.’’.

(b) CONFORMING AMENDMENT.—Subsection (a) of such section

is amended by adding at the end the following:

‘‘(10) Materials transferred to the stockpile under subsection (c).’’.

TITLE XXXIV—NAVAL PETROLEUM

RESERVES

Subtitle A—Administration of Naval

Petroleum Reserves

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

There is hereby authorized to be appropriated to the Secretary

of Energy $148,786,000 for fiscal year 1996 for the purpose of

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 631

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. Of the amount

appropriated pursuant to the authorization of appropriations in

the preceding sentence, the Secretary may use not more than

$7,000,000 for carrying out activities related to the sale of Naval

Petroleum Reserve Numbered 1 under section 3412.

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. EXTENSION OF OPERATING CONTRACT FOR NAVAL PETROLEUM RESERVE NUMBERED 1.

Section 3503 of the National Defense Authorization Act of Fiscal

Year 1995 (Public Law 103–337; 108 Stat. 3111) is amended by

striking out ‘‘two years’’ in the first sentence and inserting in

lieu thereof ‘‘three years’’.

Subtitle B—Sale of Naval Petroleum

Reserve

SEC. 3411. DEFINITIONS.

For purposes of this subtitle:

(1) The terms ‘‘Naval Petroleum Reserve Numbered 1’’

and ‘‘reserve’’ mean 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.

(2) The term ‘‘naval petroleum reserves’’ has the meaning

given that term in section 7420(2) of title 10, United States

Code, except that the term does not include Naval Petroleum

Reserve Numbered 1.

(3) 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.

(4) The term ‘‘effective date’’ means the date of the enactment of this Act.

(5) The term ‘‘Secretary’’ means the Secretary of Energy.

(6) The term ‘‘appropriate congressional committees’’ means

the Committee on Armed Services of the Senate and the

Committee on National Security and the Committee on Commerce of the House of Representatives.

SEC. 3412. SALE OF NAVAL PETROLEUM RESERVE NUMBERED 1.

(a) SALE OF RESERVE REQUIRED.—Subject to section 3414, not

later than two years after the effective date, the Secretary of Energy

shall enter into one or more contracts for the sale of all right,

title, and interest of the United States in and to all lands owned

California.

10 USC 7420

note.

10 USC 7430

note.

110 STAT. 632 PUBLIC LAW 104–106—FEB. 10, 1996

or controlled by the United States inside Naval Petroleum Reserve

Numbered 1. Chapter 641 of title 10, United States Code, shall

not apply to the sale of the reserve.

(b) EQUITY FINALIZATION.—(1) Not later than eight 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 Naval Petroleum Reserve

Numbered 1 in accordance with the 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, the dispute shall be resolved in the

manner provided in the unit plan contract within eight months

after the effective date. The resolution shall be considered final

for all purposes under this section.

(c) NOTICE OF SALE.—Not later than two months after the

effective date, the Secretary shall publish a notice of intent to

sell Naval Petroleum Reserve Numbered 1. The Secretary shall

make all technical, geological, and financial information relevant

to the sale of the reserve available to all interested and qualified

buyers upon request. The Secretary, in consultation with the

Administrator of General Services, shall ensure that the sale process

is fair and open to all interested and qualified parties.

(d) ESTABLISHMENT OF MINIMUM SALE PRICE.—(1) Not later

than seven 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 value of the interest

of the United States in Naval Petroleum Reserve Numbered 1.

The independent experts shall complete their assessments within

11 months after the effective date. In making their assessments,

the independent experts shall consider (among other factors)—

(A) all equipment and facilities to be included in the sale;

(B) the estimated quantity of petroleum and natural gas

in the reserve; and

(C) the net present value of the anticipated revenue stream

that the Secretary and the Director of the Office of Management

and Budget jointly determine 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.

(2) The independent experts retained under paragraph (1) shall

also determine and submit to the Secretary the estimated total

amount of the cost of any environmental restoration and remediation necessary at the reserve. The Secretary shall report the estimate to the Director of the Office of Management and Budget,

the Secretary of the Treasury, and Congress.

(3) The Secretary, in consultation with the Director of the

Office of Management and Budget, shall set the minimum acceptReports.

Publication.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 633

able price for the reserve. The Secretary may not set the minimum

acceptable price below the higher of— (A) the average of the five assessments prepared under paragraph (1); and

(B) the average of three assessments after excluding the

high and low assessments.

(e) ADMINISTRATION OF SALE; DRAFT CONTRACT.—(1) Not later

than two months after the effective date, the Secretary shall retain

the services of an investment banker or an appropriate equivalent

financial adviser 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. Costs and fees of retaining

the investment banker or financial adviser may be paid out of

the proceeds of the sale of the reserve.

(2) Not later than 11 months after the effective date, the

investment banker or financial adviser retained under paragraph

(1) shall complete a draft contract or contracts for the sale of

Naval Petroleum Reserve Numbered 1, which shall accompany the

solicitation of offers and describe the terms and provisions of the

sale of the interest of the United States in the reserve.

(3) The draft contract or contracts shall identify—

(A) all equipment and facilities to be included in the sale;

and

(B) any potential claim or liability (including liability for

environmental restoration and remediation), and the extent

of any such claim or liability, for which the United States

is responsible under subsection (g).

(4) The draft contract or contracts, 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. Each of those officials shall complete

the review of, and approve or disapprove, the draft contract or

contracts not later than 12 months after the effective date.

(f) SOLICITATION OF OFFERS.—(1) Not later than 13 months

after the effective date, the Secretary shall publish the solicitation

of offers for Naval Petroleum Reserve Numbered 1.

(2) Not later than 18 months after the effective date, the

Secretary shall identify the highest responsible offer or offers for

purchase of the interest of the United States in Naval Petroleum

Reserve Numbered 1 that, in total, meet or exceed the minimum

acceptable price determined under subsection (d)(3).

(3) The Secretary shall take such action immediately after

the effective date as is necessary to obtain from an independent

petroleum engineer within 10 months after that date a reserve

report prepared in a manner consistent with commercial practices.

The Secretary shall use the reserve report in support of the preparation of the solicitation of offers for the reserve.

(g) FUTURE LIABILITIES.—To effectuate the sale of the interest

of the United States in Naval Petroleum Reserve Numbered 1,

the Secretary may extend such indemnities and warranties as the

Secretary considers reasonable and necessary to protect the purchaser from claims arising from the ownership in the reserve by

the United States.

(h) MAINTAINING PRODUCTION.—Until the sale of Naval Petroleum Reserve Numbered 1 is completed under this section, the

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110 STAT. 634 PUBLIC LAW 104–106—FEB. 10, 1996

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.

(i) NONCOMPLIANCE WITH DEADLINES.—At any time during the

two-year period beginning on the effective date, if the Secretary

determines that the actions necessary to complete the sale of the

reserve within that period are not being taken or timely completed,

the Secretary shall transmit to the appropriate congressional

committees a written notification of that determination together

with a plan setting forth the actions that will be taken to ensure

that the sale of the reserve will be completed within that period.

The Secretary shall consult with the Director of the Office of

Management and Budget in preparing the plan for submission

to the committees.

(j) OVERSIGHT.—The Comptroller General shall monitor the

actions of the Secretary relating to the sale of the reserve and

report to the appropriate congressional committees any findings

on such actions that the Comptroller General considers appropriate

to report to the committees.

(k) ACQUISITION OF SERVICES.—The Secretary may enter into

contracts for the acquisition of services required under this section

under the authority of paragraph (7) of section 303(c) of the Federal

Property and Administrative Services Act of 1949 (41 U.S.C. 253(c)),

except that the notification required under subparagraph (B) of

such paragraph for each contract shall be submitted to Congress

not less than 7 days before the award of the contract.

SEC. 3413. EFFECT OF SALE OF RESERVE.

(a) EFFECT ON EXISTING CONTRACTS.—(1) In the case of any

contract, in effect on the effective date, for the purchase of production from any part of the United States’ share of Naval Petroleum

Reserve Numbered 1, the sale of the interest of the United States

in the reserve shall be subject to the contract for a period of

three months after the closing date of the sale or until termination

of the contract, whichever occurs first. The term of any contract

entered into after the effective date for the purchase of the 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 section

3412.

(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.

(b) EFFECT ON ANTITRUST LAWS.—Nothing in this subtitle shall

be construed to alter the application of the antitrust laws of the

United States to the purchaser or purchasers (as the case may

be) of Naval Petroleum Reserve Numbered 1 or to the lands in

the reserve subject to sale under section 3412 upon the completion

of the sale.

(c) PRESERVATION OF PRIVATE RIGHT, TITLE, AND INTEREST.—

Nothing in this subtitle shall be construed to adversely affect the

Notification.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 635

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.

(d) TRANSFER OF OTHERWISE NONTRANSFERABLE PERMIT.—The

Secretary may transfer to the purchaser or purchasers (as the

case may be) of Naval Petroleum Reserve Numbered 1 the incidental

take permit regarding the reserve issued to the Secretary by the

United States Fish and Wildlife Service and in effect on the effective

date if the Secretary determines that transfer of the permit is

necessary to expedite the sale of the reserve in a manner that

maximizes the value of the sale to the United States. The transferred permit shall cover the identical activities, and shall be subject

to the same terms and conditions, as apply to the permit at the

time of the transfer.

SEC. 3414. CONDITIONS ON SALE PROCESS.

(a) NOTICE REGARDING SALE CONDITIONS.—The Secretary may

not enter into any contract for the sale of Naval Petroleum Reserve

Numbered 1 under section 3412 until the end of the 31-day period

beginning on the date on which the Secretary submits to the appropriate congressional committees a written notification—

(1) describing the conditions of the proposed sale; and

(2) containing an assessment by the Secretary of whether

it is in the best interests of the United States to sell the

reserve under such conditions.

(b) AUTHORITY TO SUSPEND SALE.—(1) The Secretary may suspend the sale of Naval Petroleum Reserve Numbered 1 under

section 3412 if the Secretary and the Director of the Office of

Management and Budget jointly determine that—

(A) the sale is proceeding in a manner inconsistent with

achievement of a sale price that reflects the full value of the

reserve; or

(B) a course of action other than the immediate sale of

the reserve is in the best interests of the United States.

(2) Immediately after making a determination under paragraph

(1) to suspend the sale of Naval Petroleum Reserve Numbered

1, the Secretary shall submit to the appropriate congressional

committees a written notification describing the basis for the determination and requesting a reconsideration of the merits of the

sale of the reserve.

(c) EFFECT OF RECONSIDERATION NOTICE.—After the Secretary

submits a notification under subsection (b), the Secretary may

not complete the sale of Naval Petroleum Reserve Numbered 1

under section 3412 or any other provision of law unless the sale

of the reserve is authorized in an Act of Congress enacted after

the date of the submission of the notification.

SEC. 3415. TREATMENT OF STATE OF CALIFORNIA CLAIM REGARDING

RESERVE.

(a) RESERVATION OF FUNDS.—After the costs incurred in the

conduct of the sale of Naval Petroleum Reserve Numbered 1 under

section 3412 are deducted, nine percent of the remaining proceeds

from the sale of the reserve shall be reserved in a contingent

fund in the Treasury for payment to the State of California for

the Teachers’ Retirement Fund of the State in the event that,

and to the extent that, the claims of the State against the United

Notification.

110 STAT. 636 PUBLIC LAW 104–106—FEB. 10, 1996

States regarding production and proceeds of sale from Naval Petroleum Reserve Numbered 1 are—

(1) settled by agreement with the United States under subsection (c); or

(2) finally resolved in favor of the State by a court of

competent jurisdiction, if a settlement agreement is not reached.

(b) DISPOSITION OF FUNDS.—In such amounts as may be provided in appropriation Acts, amounts in the contingent fund shall

be available for paying a claim described in subsection (a). After

final disposition of the claims, any unobligated balance in the

contingent fund shall be credited to the general fund of the Treasury. If no payment is made from the contingent fund within 10

years after the effective date, amounts in the contingent fund shall

be credited to the general fund of the Treasury.

(c) SETTLEMENT OFFER.—Not later than 30 days after the date

of the sale of Naval Petroleum Reserve Numbered 1 under section

3412, the Secretary shall offer to settle all claims of the State

of California against the United States with respect to lands in

the reserve located in sections 16 and 36 of township 30 south,

range 23 east, Mount Diablo Principal Meridian, California, and

production or proceeds of sale from the reserve, in order to provide

proper compensation for the State’s claims. The Secretary shall

base the amount of the offered settlement payment from the contingent fund on the fair value for the State’s claims, including the

mineral estate, not to exceed the amount reserved in the contingent

fund.

(d) RELEASE OF CLAIMS.—Acceptance of the settlement offer

made under subsection (c) shall be subject to the condition that

all claims against the United States by the State of California

for the Teachers’ Retirement Fund of the State be released with

respect to lands in Naval Petroleum Reserve Numbered 1, including

sections 16 and 36 of township 30 south, range 23 east, Mount

Diablo Principal Meridian, California, or production or proceeds

of sale from the reserve.

SEC. 3416. STUDY OF FUTURE OF OTHER NAVAL PETROLEUM

RESERVES.

(a) STUDY REQUIRED.—The Secretary of Energy shall conduct

a study to determine which of the following options, or combinations

of options, regarding the naval petroleum reserves (other than

Naval Petroleum Reserve Numbered 1) would maximize the value

of the reserves to 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 for administration

under chapter 641 of title 10, United States Code.

(3) Transfer of all or a part of the naval petroleum reserves

to the Department of the Interior for leasing in accordance

with the Mineral Leasing Act (30 U.S.C. 181 et seq.) and

surface management in accordance with the Federal Land Policy and Management Act (43 U.S.C. 1701 et seq.).

(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.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 637

(c) CONSIDERATIONS UNDER STUDY.—An examination of the

value to be derived by the United States from the transfer or

sale of the naval petroleum reserves shall include an assessment

and estimate of the fair market value of the interest of the United

States in the naval petroleum reserves. The assessment and estimate shall be made in a manner consistent with customary property

valuation practices in the oil and gas industry.

(d) REPORT AND RECOMMENDATIONS REGARDING STUDY.—Not

later than June 1, 1996, the Secretary shall submit to Congress

a report describing the results of the study and containing such

recommendations (including proposed legislation) as the Secretary

considers necessary to implement the option, or combination of

options, identified in the study that would maximize the value

of the naval petroleum reserves to the United States.

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—

(1) not more than $15,000 may be used for official reception

and representation expenses of the Supervisory Board of the

Commission;

(2) not more than $10,000 may be used for official reception

and representation expenses of the Secretary of the Commission; and

(3) not more than $45,000 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 (including large heavy-duty

vehicles to be used to transport Commission personnel across the

isthmus of Panama) at a cost per vehicle of not more than $19,500.

A vehicle may be purchased with such funds only as necessary

to replace another passenger motor vehicle of the Commission.

Panama Canal

Commission

Authorization

Act for Fiscal

Year 1996.

110 STAT. 638 PUBLIC LAW 104–106—FEB. 10, 1996

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.

(a) IN GENERAL.—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

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 considers 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.’’. (b) CLERICAL AMENDMENT.—The item relating to such section

in the table of contents in section 1 of such Act is amended to

read as follows:

‘‘1101. Establishment, Purposes, Offices, and Residence of Commission.’’.

SEC. 3523. SUPERVISORY BOARD.

Section 1102 of the Panama Canal Act of 1979 (22 U.S.C.

3612) is amended by striking out so much as precedes subsection

(b) and inserting in lieu thereof 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

22 USC 3601

note.

Panama Canal

Amendments Act

of 1995.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 639

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. GENERAL AND SPECIFIC POWERS OF COMMISSION.

(a) IN GENERAL.—The Panama Canal Act of 1979 (22 U.S.C.

3601 et seq.) is amended by inserting after section 1102 the following new sections:

‘‘GENERAL POWERS OF COMMISSION

‘‘SEC. 1102a. (a) The Commission may adopt, alter, and use a corporate seal, which shall be judicially noticed. ‘‘(b) The Commission 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. ‘‘(c) The Commission may sue and be sued in its corporate name, except that— ‘‘(1) the amenability of the Commission to suit is limited by Article VIII of the Panama Canal Treaty of 1977, section

1401 of this Act, and otherwise by law; ‘‘(2) 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 sections 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

‘‘(3) the Commission is exempt from the payment of interest

on claims and judgments.

‘‘(d) The Commission may enter into contracts, leases, agreements, or other transactions.

‘‘(e) The Commission—

‘‘(1) 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

‘‘(2) may incur, allow, and pay its obligations and expenditures, subject to pertinent provisions of law generally applicable

to Government corporations.

‘‘(f) The Commission shall have the priority of the Government

of the United States in the payment of debts out of bankrupt

estates.

‘‘(g) The authority of the Commission under this section and

section 1102B is subject to the Panama Canal Treaty of 1977

and related agreements, and to chapter 91 of title 31, United

States Code.

‘‘SPECIFIC POWERS OF COMMISSION

‘‘SEC. 1102b. (a) The Commission may manage, operate, and

maintain the Panama Canal.

‘‘(b) The Commission may construct or acquire, establish, maintain, and operate such activities, facilities, and appurtenances as

22 USC 3612b.

22 USC 3612a.

110 STAT. 640 PUBLIC LAW 104–106—FEB. 10, 1996

necessary and appropriate for the accomplishment of the purposes

of this Act, including the following: ‘‘(1) Docks, wharves, piers, and other shoreline facilities.

‘‘(2) Shops and yards.

‘‘(3) Marine railways, salvage and towing facilities, fuelhandling facilities, and motor transportation facilities.

‘‘(4) Power systems, water systems, and a telephone system.

‘‘(5) Construction facilities.

‘‘(6) Living quarters and other buildings.

‘‘(7) Warehouses, storehouses, a printing plant, and manufacturing, processing, or service facilities in connection therewith.

‘‘(8) Recreational facilities.

‘‘(c) The Commission may use the United States mails in the

same manner and under the same conditions as the executive

departments of the Federal Government.

‘‘(d) The Commission may take such actions as are necessary

or appropriate to carry out the powers specifically conferred upon

it.’’.

(b) CLERICAL AMENDMENT.—The table of contents in section

1 of such Act is amended by inserting after the item relating

to section 1102 the following new items:

‘‘1102a. General powers of Commission.

‘‘1102b. Specific powers of Commission.’’.

SEC. 3525. CONGRESSIONAL REVIEW OF BUDGET.

Section 1302 of the Panama Canal Act of 1979 (22 U.S.C.

3712) is amended—

(1) in subsection (c)—

(A) by striking out ‘‘and subject to paragraph (2)’’ in

paragraph (1);

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

(C) by redesignating paragraph (3) as paragraph (2);

and

(2) by striking out subsection (e) and inserting in lieu

thereof the following new subsection (e):

‘‘(e) In accordance with section 9104 of title 31, United States

Code, Congress shall review the annual budget of the Commission.’’.

SEC. 3526. AUDITS.

(a) IN GENERAL.—Section 1313 of the Panama Canal Act of

1979 (22 U.S.C. 3723) is amended—

(1) by striking out the heading for the section and inserting

in lieu thereof the following: ‘‘AUDITS’’;

(2) in subsection (a)—

(A) by striking out ‘‘Financial transactions’’ and inserting in lieu thereof ‘‘Notwithstanding any other provision

of law, and subject to subsection (d), financial transactions’’;

(B) by striking out ‘‘pursuant to the Accounting and

Auditing Act of 1950 (31 U.S.C. 65 et seq.)’’;

(C) by striking out ‘‘audit pursuant to such Act’’ in

the second sentence and inserting in lieu thereof ‘‘such

audit’’;

(D) by striking out ‘‘An audit pursuant to such Act’’

in the last sentence and inserting in lieu thereof ‘‘Any

such audit’’; and

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 641

(E) by adding at the end the following new sentence:

‘‘An audit performed under this section is subject to the

requirements of paragraphs (2), (3), and (5) of section

9105(a) of title 31, United States Code.’’;

(3) in subsection (b), by striking out ‘‘The Comptroller

General’’ in the first sentence and inserting in lieu thereof

‘‘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 Comptroller General (or the independent auditor

if one is employed pursuant to subsection (d)) 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.’’.

(b) CLERICAL AMENDMENT.—The item relating to such section

in the table of contents in section 1 of such Act is amended to

read as follows:

‘‘1313. Audits.’’.

SEC. 3527. 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. 3528. 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), by striking out ‘‘1601(a)’’ in the first

sentence and inserting in lieu thereof ‘‘1601’’; (2) by striking out subsection (c) and inserting in lieu thereof the following new subsection (c):

‘‘(c) After the proceedings have been conducted pursuant to subsections (a) and (b), the Commission may change the rules

of measurement or rates of tolls, as the case may be. The Commission shall publish notice of any such change in the Federal Register

not less than 30 days before the effective date of the change.’’;

and

(3) by striking out subsections (d) and (e) and redesignating subsection (f) as subsection (d).

SEC. 3529. MISCELLANEOUS TECHNICAL AMENDMENTS.

The Panama Canal Act of 1979 is amended—

Federal Register,

publication.

Reports.

110 STAT. 642 PUBLIC LAW 104–106—FEB. 10, 1996

(1) in section 1205 (22 U.S.C. 3645), by striking out ‘‘appropriation’’ in the last sentence and inserting in lieu thereof

‘‘fund’’;

(2) in section 1303 (22 U.S.C. 3713), by striking out ‘‘The

authority of this section may not be used for administrative

expenses.’’;

(3) in section 1321(d) (22 U.S.C. 3731(d)), by striking out

‘‘appropriations or’’ in the second sentence;

(4) in section 1401(c) (22 U.S.C. 3761(c)), by striking out

‘‘appropriated for or’’ in the first sentence;

(5) in section 1415 (22 U.S.C. 3775), by striking out ‘‘appropriated or’’ in the second sentence; and

(6) in section 1416 (22 U.S.C. 3776), by striking out ‘‘appropriated or’’ in the third sentence.

SEC. 3530. 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.’’.

DIVISION D—FEDERAL ACQUISITION

REFORM

SEC. 4001. SHORT TITLE.

This division may be cited as the ‘‘Federal Acquisition Reform

Act of 1996’’.

TITLE XLI—COMPETITION

SEC. 4101. EFFICIENT COMPETITION.

(a) ARMED SERVICES ACQUISITIONS.—Section 2304 of title 10,

United States Code, is amended—

(1) by redesignating subsection (j) as subsection (k); and

(2) by inserting after subsection (i) the following new subsection (j):

‘‘(j) The Federal Acquisition Regulation shall ensure that the

requirement to obtain full and open competition is implemented

in a manner that is consistent with the need to efficiently fulfill

the Government’s requirements.’’.

(b) CIVILIAN AGENCY ACQUISITIONS.—Section 303 of the Federal

Property and Administrative Services Act of 1949 (41 U.S.C. 253)

is amended—

(1) by redesignating subsection (h) as subsection (i); and

(2) by inserting after subsection (g) the following new subsection (h):

‘‘(h) The Federal Acquisition Regulation shall ensure that the

requirement to obtain full and open competition is implemented

in a manner that is consistent with the need to efficiently fulfill

the Government’s requirements.’’.

(c) REVISIONS TO NOTICE THRESHOLDS.—Section 18(a)(1)(B) of

the Office of Federal Procurement Policy Act (41 U.S.C. 416(a)(1)(B))

is amended—

41 USC 251 note.

Federal

Acquisition

Reform Act of

1996.

Contracts.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 643

(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,’’.

SEC. 4102. EFFICIENT APPROVAL PROCEDURES.

(a) ARMED SERVICES ACQUISITIONS.—Section 2304(f)(1)(B) of

title 10, United States Code, is amended—

(1) in clause (i)—

(A) by striking out ‘‘$100,000 (but equal to or less than $1,000,000)’’ and inserting in lieu thereof ‘‘$500,000

(but equal to or less than $10,000,000)’’; and (B) by striking out ‘‘(ii), (iii), or (iv)’’ and inserting in lieu thereof ‘‘(ii) or (iii)’’;

(2) in clause (ii)—

(A) by striking out ‘‘$1,000,000 (but equal to or less than $10,000,000)’’ and inserting in lieu thereof

‘‘$10,000,000 (but equal to or less than $50,000,000)’’; and (B) by adding ‘‘or’’ at the end; (3) by striking out clause (iii); and

(4) by redesignating clause (iv) as clause (iii). (b) CIVILIAN AGENCY ACQUISITIONS.—Section 303(f)(1)(B) of the

Federal Property and Administrative Services Act of 1949 (41 U.S.C.

253(f)(1)(B)) is amended—

(1) in clause (i)—

(A) by striking out ‘‘$100,000 (but equal to or less than $1,000,000)’’ and inserting in lieu thereof ‘‘$500,000

(but equal to or less than $10,000,000)’’; and (B) by striking out ‘‘(ii), (iii), or (iv);’’ and inserting in lieu thereof ‘‘(ii) or (iii); and’’;

(2) in clause (ii)—

(A) by striking out ‘‘$1,000,000 (but equal to or less than $10,000,000)’’ and inserting in lieu thereof

‘‘$10,000,000 (but equal to or less than $50,000,000)’’; and (B) by striking out the semicolon after ‘‘civilian’’ and inserting in lieu thereof a comma; and

(3) in clause (iii), by striking out ‘‘$10,000,000’’ and insert- ing in lieu thereof ‘‘$50,000,000’’.

SEC. 4103. EFFICIENT COMPETITIVE RANGE DETERMINATIONS.

(a) ARMED SERVICES ACQUISITIONS.—Paragraph (4) of 2305(b) of title 10, United States Code, is amended—

(1) in subparagraph (C), by striking out ‘‘(C)’’, by transfer- ring the text to the end of subparagraph (B), and in that

text by striking out ‘‘Subparagraph (B)’’ and inserting in lieu

thereof ‘‘This subparagraph’’; (2) by redesignating subparagraph (B) as subparagraph (C); and

(3) by inserting before subparagraph (C) (as so redesig- nated) the following new subparagraph (B):

‘‘(B) If the contracting officer determines that the number of

offerors that would otherwise be included in the competitive range

under subparagraph (A)(i) exceeds the number at which an efficient

competition can be conducted, the contracting officer may limit

the number of proposals in the competitive range, in accordance

with the criteria specified in the solicitation, to the greatest number

110 STAT. 644 PUBLIC LAW 104–106—FEB. 10, 1996

that will permit an efficient competition among the offerors rated

most highly in accordance with such criteria.’’. (b) CIVILIAN AGENCY ACQUISITIONS.—Section 303B(d) of the

Federal Property and Administrative Services Act of 1949 (41 U.S.C.

253b(d)) is amended—

(1) by redesignating paragraph (2) as paragraph (3); and

(2) by inserting before paragraph (3) (as so redesignated)

the following new paragraph (2):

‘‘(2) If the contracting officer determines that the number of

offerors that would otherwise be included in the competitive range

under paragraph (1)(A) exceeds the number at which an efficient

competition can be conducted, the contracting officer may limit

the number of proposals in the competitive range, in accordance

with the criteria specified in the solicitation, to the greatest number

that will permit an efficient competition among the offerors rated

most highly in accordance with such criteria.’’.

SEC. 4104. 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 (9); 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 but 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.

‘‘(8) The Federal Acquisition Regulation shall include a provision encouraging the use of alternative dispute resolution techVerDate 07-FEB-96 03:34 Mar 05, 1996 Jkt 029139 PO 00106 Frm 00460 Fmt 6580 Sfmt 6581 PUBL106.104 apps06
PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 645

niques to provide informal, expeditious, and inexpensive procedures

for an offeror to consider using before filing a protest, prior to

the award of a contract, of the exclusion of the offeror from the

competitive range (or otherwise from further consideration) for that

contract.’’.

(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 (i), (j), (k), and (l), 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 but 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 any

debriefing conducted under subsection (e) or (f) in the contract

file.

‘‘(h) The Federal Acquisition Regulation shall include a provision encouraging the use of alternative dispute resolution techniques to provide informal, expeditious, and inexpensive procedures

for an offeror to consider using before filing a protest, prior to

the award of a contract, of the exclusion of the offeror from the

competitive range (or otherwise from further consideration) for that

contract.’’.

SEC. 4105. DESIGN-BUILD SELECTION PROCEDURES.

(a) ARMED SERVICES ACQUISITIONS.—(1) Chapter 137 of title

10, United States Code, is amended by inserting after section 2305

the following new section:

110 STAT. 646 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘§ 2305a. Design-build selection procedures

‘‘(a) AUTHORIZATION.—Unless the traditional acquisition

approach of design-bid-build established under the Brooks ArchitectEngineers Act (41 U.S.C. 541 et seq.) is used or another acquisition

procedure authorized by law is used, the head of an agency shall

use the two-phase selection procedures authorized in this section

for entering into a contract for the design and construction of

a public building, facility, or work when a determination is made

under subsection (b) that the procedures are appropriate for use. ‘‘(b) CRITERIA FOR USE.—A contracting officer shall make a determination whether two-phase selection procedures are appropriate for use for entering into a contract for the design and

construction of a public building, facility, or work when the contracting officer anticipates that three or more offers will be received

for such contract, design work must be performed before an offeror

can develop a price or cost proposal for such contract, the offeror

will incur a substantial amount of expense in preparing the offer,

and the contracting officer has considered information such as the

following:‘‘(1) The extent to which the project requirements have been adequately defined. ‘‘(2) The time constraints for delivery of the project.

‘‘(3) The capability and experience of potential contractors.

‘‘(4) The suitability of the project for use of the two-phase selection procedures. ‘‘(5) The capability of the agency to manage the two-phase selection process. ‘‘(6) Other criteria established by the agency. ‘‘(c) PROCEDURES DESCRIBED.—Two-phase selection procedures

consist of the following: ‘‘(1) The agency develops, either in-house or by contract, a scope of work statement for inclusion in the solicitation

that defines the project and provides prospective offerors with

sufficient information regarding the Government’s requirements (which may include criteria and preliminary design,

budget parameters, and schedule or delivery requirements) to

enable the offerors to submit proposals which meet the Government’s needs. If the agency contracts for development of the

scope of work statement, the agency shall contract for architectural and engineering services as defined by and in accordance

with the Brooks Architect-Engineers Act (40 U.S.C. 541 et

seq.).

‘‘(2) The contracting officer solicits phase-one proposals

that—

‘‘(A) include information on the offeror’s—

‘‘(i) technical approach; and

‘‘(ii) technical qualifications; and

‘‘(B) do not include—

‘‘(i) detailed design information; or

‘‘(ii) cost or price information.

‘‘(3) The evaluation factors to be used in evaluating phaseone proposals are stated in the solicitation and include specialized experience and technical competence, capability to perform,

past performance of the offeror’s team (including the architectengineer and construction members of the team) and other

appropriate factors, except that cost-related or price-related

evaluation factors are not permitted. Each solicitation estabVerDate 07-FEB-96 03:34 Mar 05, 1996 Jkt 029139 PO 00106 Frm 00462 Fmt 6580 Sfmt 6581 PUBL106.104 apps06
PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 647

lishes the relative importance assigned to the evaluation factors

and subfactors that must be considered in the evaluation of

phase-one proposals. The agency evaluates phase-one proposals

on the basis of the phase-one evaluation factors set forth in

the solicitation.

‘‘(4) The contracting officer selects as the most highly qualified the number of offerors specified in the solicitation to provide the property or services under the contract and requests

the selected offerors to submit phase-two competitive proposals

that include technical proposals and cost or price information.

Each solicitation establishes with respect to phase two—

‘‘(A) the technical submission for the proposal, including design concepts or proposed solutions to requirements

addressed within the scope of work (or both), and

‘‘(B) the evaluation factors and subfactors, including

cost or price, that must be considered in the evaluations

of proposals in accordance with paragraphs (2), (3), and

(4) of section 2305(a) of this title.

The contracting officer separately evaluates the submissions

described in subparagraphs (A) and (B).

‘‘(5) The agency awards the contract in accordance with

section 2305(b)(4) of this title.

‘‘(d) SOLICITATION TO STATE NUMBER OF OFFERORS TO BE

SELECTED FOR PHASE TWO REQUESTS FOR COMPETITIVE PROPOSALS.—A solicitation issued pursuant to the procedures described

in subsection (c) shall state the maximum number of offerors that

are to be selected to submit competitive proposals pursuant to

subsection (c)(4). The maximum number specified in the solicitation

shall not exceed 5 unless the agency determines with respect to

an individual solicitation that a specified number greater than

5 is in the Government’s interest and is consistent with the purposes

and objectives of the two-phase selection process.

‘‘(e) REQUIREMENT FOR GUIDANCE AND REGULATIONS.—The Federal Acquisition Regulation shall include guidance—

‘‘(1) regarding the factors that may be considered in determining whether the two-phase contracting procedures authorized by subsection (a) are appropriate for use in individual

contracting situations;

‘‘(2) regarding the factors that may be used in selecting

contractors; and

‘‘(3) providing for a uniform approach to be used Government-wide.’’.

(2) The table of sections at the beginning of chapter 137 of

such title is amended by adding after the item relating to section

2305 the following new item:

‘‘2305a. Design-build selection procedures.’’.

(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 303L the following

new section:

‘‘SEC. 303M. DESIGN-BUILD SELECTION PROCEDURES.

‘‘(a) AUTHORIZATION.—Unless the traditional acquisition

approach of design-bid-build established under the Brooks ArchitectEngineers Act (title IX of this Act) is used or another acquisition

procedure authorized by law is used, the head of an executive

agency shall use the two-phase selection procedures authorized

41 USC 253m.

110 STAT. 648 PUBLIC LAW 104–106—FEB. 10, 1996

in this section for entering into a contract for the design and

construction of a public building, facility, or work when a determination is made under subsection (b) that the procedures are appropriate for use.

‘‘(b) CRITERIA FOR USE.—A contracting officer shall make a

determination whether two-phase selection procedures are appropriate for use for entering into a contract for the design and

construction of a public building, facility, or work when the contracting officer anticipates that three or more offers will be received

for such contract, design work must be performed before an offeror

can develop a price or cost proposal for such contract, the offeror

will incur a substantial amount of expense in preparing the offer,

and the contracting officer has considered information such as the

following:

‘‘(1) The extent to which the project requirements have

been adequately defined.

‘‘(2) The time constraints for delivery of the project.

‘‘(3) The capability and experience of potential contractors.

‘‘(4) The suitability of the project for use of the two-phase

selection procedures.

‘‘(5) The capability of the agency to manage the two-phase

selection process.

‘‘(6) Other criteria established by the agency.

‘‘(c) PROCEDURES DESCRIBED.—Two-phase selection procedures

consist of the following:

‘‘(1) The agency develops, either in-house or by contract,

a scope of work statement for inclusion in the solicitation

that defines the project and provides prospective offerors with

sufficient information regarding the Government’s requirements (which may include criteria and preliminary design,

budget parameters, and schedule or delivery requirements) to

enable the offerors to submit proposals which meet the Government’s needs. If the agency contracts for development of the

scope of work statement, the agency shall contract for architectural and engineering services as defined by and in accordance

with the Brooks Architect-Engineers Act (40 U.S.C. 541 et

seq.).

‘‘(2) The contracting officer solicits phase-one proposals

that—

‘‘(A) include information on the offeror’s—

‘‘(i) technical approach; and

‘‘(ii) technical qualifications; and

‘‘(B) do not include—

‘‘(i) detailed design information; or

‘‘(ii) cost or price information.

‘‘(3) The evaluation factors to be used in evaluating phaseone proposals are stated in the solicitation and include specialized experience and technical competence, capability to perform,

past performance of the offeror’s team (including the architectengineer and construction members of the team) and other

appropriate factors, except that cost-related or price-related

evaluation factors are not permitted. Each solicitation establishes the relative importance assigned to the evaluation factors

and subfactors that must be considered in the evaluation of

phase-one proposals. The agency evaluates phase-one proposals

on the basis of the phase-one evaluation factors set forth in

the solicitation.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 649

‘‘(4) The contracting officer selects as the most highly qualified the number of offerors specified in the solicitation to provide the property or services under the contract and requests

the selected offerors to submit phase-two competitive proposals

that include technical proposals and cost or price information.

Each solicitation establishes with respect to phase two—

‘‘(A) the technical submission for the proposal, including design concepts or proposed solutions to requirements

addressed within the scope of work (or both), and

‘‘(B) the evaluation factors and subfactors, including

cost or price, that must be considered in the evaluations

of proposals in accordance with subsections (b), (c), and

(d) of section 303A.

The contracting officer separately evaluates the submissions

described in subparagraphs (A) and (B).

‘‘(5) The agency awards the contract in accordance with

section 303B of this title.

‘‘(d) SOLICITATION TO STATE NUMBER OF OFFERORS TO BE

SELECTED FOR PHASE TWO REQUESTS FOR COMPETITIVE PROPOSALS.—A solicitation issued pursuant to the procedures described

in subsection (c) shall state the maximum number of offerors that

are to be selected to submit competitive proposals pursuant to

subsection (c)(4). The maximum number specified in the solicitation

shall not exceed 5 unless the agency determines with respect to

an individual solicitation that a specified number greater than

5 is in the Government’s interest and is consistent with the purposes

and objectives of the two-phase selection process.

‘‘(e) REQUIREMENT FOR GUIDANCE AND REGULATIONS.—The Federal Acquisition Regulation shall include guidance—

‘‘(1) regarding the factors that may be considered in determining whether the two-phase contracting procedures authorized by subsection (a) are appropriate for use in individual

contracting situations;

‘‘(2) regarding the factors that may be used in selecting

contractors; and

‘‘(3) providing for a uniform approach to be used Government-wide.’’.

(2) The table of sections at the beginning of such Act is amended

by inserting after the item relating to section 303L the following

new item:

‘‘Sec. 303M. Design-build selection procedures.’’.

TITLE XLII—COMMERCIAL ITEMS

SEC. 4201. COMMERCIAL ITEM EXCEPTION TO REQUIREMENT FOR

CERTIFIED COST OR PRICING DATA.

(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 certified 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

110 STAT. 650 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(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 to the submission of certified cost or pricing

data in paragraph (1)(A) or (1)(B), submission of certified 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 certified

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) COST OR PRICING DATA ON BELOW-THRESHOLD

CONTRACTS.—

‘‘(1) AUTHORITY TO REQUIRE SUBMISSION.—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) EXCEPTION.—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) DELEGATION OF AUTHORITY PROHIBITED.—The head of

a procuring activity may not delegate functions under this

paragraph.

‘‘(d) SUBMISSION OF OTHER INFORMATION.—

‘‘(1) AUTHORITY TO REQUIRE SUBMISSION.—When certified

cost or pricing data are not required to be submitted under

this section for a contract, subcontract, or modification of a

contract or subcontract, the contracting officer shall require

submission of data other than certified cost or pricing data

to the extent necessary to determine the reasonableness of

the price of the contract, subcontract, or modification of the

contract or subcontract. Except in the case of a contract or

subcontract covered by the exceptions in subsection (b)(1)(A),

the data submitted shall include, at a minimum, appropriate

information on the prices at which the same item or similar

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 651

items have previously been sold that is adequate for evaluating

the reasonableness of the price for the procurement.

‘‘(2) LIMITATIONS ON AUTHORITY.—The Federal Acquisition

Regulation shall include the following provisions regarding the

types of information that contracting officers may require under

paragraph (1):

‘‘(A) Reasonable limitations on requests for sales data

relating to commercial items.

‘‘(B) A requirement that a contracting officer limit,

to the maximum extent practicable, 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.

‘‘(C) 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).

(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 certified 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 to the submission of certified cost or pricing

data in paragraph (1)(A) or (1)(B), submission of certified 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 certified

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) COST OR PRICING DATA ON BELOW-THRESHOLD CONTRACTS.—

‘‘(1) AUTHORITY TO REQUIRE SUBMISSION.—Subject to paragraph (2), when certified cost or pricing data are not required

110 STAT. 652 PUBLIC LAW 104–106—FEB. 10, 1996

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) EXCEPTION.—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) DELEGATION OF AUTHORITY PROHIBITED.—The head of

a procuring activity may not delegate the functions under this

paragraph.

‘‘(d) SUBMISSION OF OTHER INFORMATION.—

‘‘(1) AUTHORITY TO REQUIRE SUBMISSION.—When certified

cost or pricing data are not required to be submitted under

this section for a contract, subcontract, or modification of a

contract or subcontract, the contracting officer shall require

submission of data other than certified cost or pricing data

to the extent necessary to determine the reasonableness of

the price of the contract, subcontract, or modification of the

contract or subcontract. Except in the case of a contract or

subcontract covered by the exceptions in subsection (b)(1)(A),

the data submitted shall include, at a minimum, 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 for the procurement.

‘‘(2) LIMITATIONS ON AUTHORITY.—The Federal Acquisition

Regulation shall include the following provisions regarding the

types of information that contracting officers may require under

paragraph (1):

‘‘(A) Reasonable limitations on requests for sales data

relating to commercial items.

‘‘(B) A requirement that a contracting officer limit,

to the maximum extent practicable, 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.

‘‘(C) 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. 4202. APPLICATION OF SIMPLIFIED PROCEDURES TO CERTAIN

COMMERCIAL ITEMS.

(a) ARMED SERVICES ACQUISITIONS.—(1) Section 2304(g) of title

10, United States Code, is amended—

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 653

(A) in paragraph (1), by striking out ‘‘shall provide for

special simplified procedures for purchases of’’ and all that

follows through the end of the paragraph and inserting in

lieu thereof the following: ‘‘shall provide for—

‘‘(A) special simplified procedures for purchases of property

and services for amounts not greater than the simplified

acquisition threshold; and

‘‘(B) special simplified procedures for purchases of property

and services for amounts greater than the simplified acquisition

threshold but not greater than $5,000,000 with respect to which

the contracting officer reasonably expects, based on the nature

of the property or services sought and on market research,

that offers will include only commercial items.’’; and

(B) by adding at the end the following new paragraph:

‘‘(4) The head of an agency shall comply with the Federal

Acquisition Regulation provisions referred to in section 31(g) of

the Office of Federal Procurement Policy Act (41 U.S.C. 427).’’.

(2) Section 2305 of title 10, United States Code, is amended

in subsection (a)(2) by inserting after ‘‘(other than for’’ the following:

‘‘a procurement for commercial items using special simplified procedures or’’.

(b) CIVILIAN AGENCY ACQUISITIONS.—(1) Section 303(g) of the

Federal Property and Administrative Services Act of 1949 (41 U.S.C.

253(g)) is amended—

(A) in paragraph (1), by striking out ‘‘shall provide for

special simplified procedures for purchases of’’ and all that

follows through the end of the paragraph and inserting in

lieu thereof the following: ‘‘shall provide for—

‘‘(A) special simplified procedures for purchases of property

and services for amounts not greater than the simplified

acquisition threshold; and

‘‘(B) special simplified procedures for purchases of property

and services for amounts greater than the simplified acquisition

threshold but not greater than $5,000,000 with respect to which

the contracting officer reasonably expects, based on the nature

of the property or services sought and on market research,

that offers will include only commercial items.’’; and

(B) by adding at the end the following new paragraph:

‘‘(5) An executive agency shall comply with the Federal Acquisition Regulation provisions referred to in section 31(g) of the Office

of Federal Procurement Policy Act (41 U.S.C. 427).’’.

(2) Section 303A of such Act (41 U.S.C. 253a) is amended

in subsection (b) by inserting after ‘‘(other than for’’ the following:

‘‘a procurement for commercial items using special simplified procedures or’’.

(c) ACQUISITIONS GENERALLY.—Section 31 of the Office of Federal Procurement Policy Act (41 U.S.C. 427) is amended—

(1) in subsection (a), by striking out ‘‘shall provide for

special simplified procedures for purchases of’’ and all that

follows through the end of the subsection and inserting in

lieu thereof the following: ‘‘shall provide for—

‘‘(1) special simplified procedures for purchases of property

and services for amounts not greater than the simplified

acquisition threshold; and

‘‘(2) special simplified procedures for purchases of property

and services for amounts greater than the simplified acquisition

threshold but not greater than $5,000,000 with respect to which

110 STAT. 654 PUBLIC LAW 104–106—FEB. 10, 1996

the contracting officer reasonably expects, based on the nature

of the property or services sought and on market research,

that offers will include only commercial items.’’; and (2) by adding at the end the following new subsection:

‘‘(g) SPECIAL RULES FOR COMMERCIAL ITEMS.—The Federal

Acquisition Regulation shall provide that, in the case of a purchase

of commercial items using special simplified procedures, an executive agency—

‘‘(1) shall publish a notice in accordance with section 18

and, as provided in subsection (b)(4) of such section, permit

all responsible sources to submit a bid, proposal, or quotation

(as appropriate) which shall be considered by the agency;

‘‘(2) 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 section 2304 of title 10, United States Code,

or section 303 of the Federal Property and Administrative

Services Act of 1949 (41 U.S.C. 253), as applicable; and

‘‘(3) shall include in the contract file a written description

of the procedures used in awarding the contract and the number

of offers received.’’.

(d) SIMPLIFIED NOTICE.—(1) Section 18 of the Office of Federal

Procurement Policy Act (41 U.S.C. 416) is amended—

(A) in subsection (a)(6), by inserting before ‘‘submission’’

the following: ‘‘issuance of solicitations and the’’; and

(B) in subsection (b)(6), by striking out ‘‘threshold—’’ and

inserting in lieu thereof ‘‘threshold, or a contract for the

procurement of commercial items using special simplified

procedures—’’.

(e) EFFECTIVE DATE.—The authority to issue solicitations for

purchases of commercial items in excess of the simplified acquisition

threshold pursuant to the special simplified procedures authorized

by section 2304(g)(1) of title 10, United States Code, section

303(g)(1) of the Federal Property and Administrative Services Act

of 1949, and section 31(a) of the Office of Federal Procurement

Policy Act, as amended by this section, shall expire three years

after the date on which such amendments take effect pursuant

to section 4401(b). Contracts may be awarded pursuant to solicitations that have been issued before such authority expires, notwithstanding the expiration of such authority.

SEC. 4203. INAPPLICABILITY OF CERTAIN PROCUREMENT LAWS TO

COMMERCIALLY AVAILABLE OFF-THE-SHELF ITEMS.

(a) LAWS LISTED IN THE FAR.—The Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is amended by adding

at the end the following:

‘‘SEC. 35. COMMERCIALLY AVAILABLE OFF-THE-SHELF ITEM ACQUISITIONS: LISTS OF INAPPLICABLE LAWS IN FEDERAL

ACQUISITION REGULATION.

‘‘(a) LISTS OF INAPPLICABLE PROVISIONS OF LAW.—(1) The Federal Acquisition Regulation shall include a list of provisions of

law that are inapplicable to contracts for the procurement of

commercially available off-the-shelf items.

‘‘(2) A provision of law that, pursuant to paragraph (3), is

properly included on a list referred to in paragraph (1) may not

be construed as being applicable to contracts referred to in paragraph (1). Nothing in this section shall be construed to render

41 USC 431.

10 USC 2304

note.

Notice

Publication.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 655

inapplicable to such contracts any provision of law that is not

included on such list.

‘‘(3) A provision of law described in subsection (b) shall be

included on the list of inapplicable provisions of law required by

paragraph (1) unless the Administrator for Federal Procurement

Policy makes a written determination that it would not be in

the best interest of the United States to exempt such contracts

from the applicability of that provision of law. Nothing in this

section shall be construed as modifying or superseding, or as being

intended to impair or restrict authorities or responsibilities under—

‘‘(A) section 15 of the Small Business Act (15 U.S.C. 644);

or

‘‘(B) bid protest procedures developed under the authority

of subchapter V of chapter 35 of title 31, United States Code;

subsections (e) and (f) of section 2305 of title 10, United States

Code; or subsections (h) and (i) of section 303B of the Federal

Property and Administrative Services Act of 1949 (41 U.S.C.

253b).

‘‘(b) COVERED LAW.—Except as provided in subsection (a)(3),

the list referred to in subsection (a)(1) shall include each provision

of law that, as determined by the Administrator, imposes on persons

who have been awarded contracts by the Federal Government for

the procurement of commercially available off-the-shelf items

Government-unique policies, procedures, requirements, or restrictions for the procurement of property or services, except the

following:

‘‘(1) A provision of law that provides for criminal or civil

penalties.

‘‘(2) A provision of law that specifically refers to this section

and provides that, notwithstanding this section, such provision

of law shall be applicable to contracts for the procurement

of commercial off-the-shelf items.

‘‘(c) DEFINITION.—(1) As used in this section, the term ‘commercially available off-the-shelf item’ means, except as provided in

paragraph (2), an item that—

‘‘(A) is a commercial item (as described in section 4(12)(A));

‘‘(B) is sold in substantial quantities in the commercial

marketplace; and

‘‘(C) is offered to the Government, without modification,

in the same form in which it is sold in the commercial

marketplace.

‘‘(2) The term ‘commercially available off-the-shelf item’ does

not include bulk cargo, as defined in section 3 of the Shipping

Act of 1984 (46 U.S.C. App. 1702), such as agricultural products

and petroleum products.’’.

(b) CLERICAL AMENDMENT.—The table of contents in section

1(b) of such Act is amended by inserting after the item relating

to section 34 the following:

‘‘Sec. 35. Commercially available off-the-shelf item acquisitions: lists of inapplicable

laws in Federal Acquisition Regulation.’’.

SEC. 4204. AMENDMENT OF COMMERCIAL ITEMS DEFINITION.

Section 4(12)(F) of the Office of Federal Procurement Policy

Act (41 U.S.C. 403(12)(F)) is amended by inserting ‘‘or market’’

after ‘‘catalog’’.

110 STAT. 656 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 4205. INAPPLICABILITY OF COST ACCOUNTING STANDARDS TO

CONTRACTS AND SUBCONTRACTS FOR COMMERCIAL

ITEMS.

Paragraph (2)(B) of section 26(f) of the Office of Federal

Procurement Policy Act (41 U.S.C. 422(f)) 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).

TITLE XLIII—ADDITIONAL REFORM

PROVISIONS

Subtitle A—Additional Acquisition Reform

Provisions

SEC. 4301. ELIMINATION OF CERTAIN CERTIFICATION REQUIREMENTS.

(a) ELIMINATION OF CERTAIN STATUTORY CERTIFICATION

REQUIREMENTS.—(1) Section 2410b of title 10, United States Code,

is amended in paragraph (2) by striking out ‘‘certification and’’.

(2) 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).

(3) 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.—(A) Not later

than 210 days after the date of the enactment of this Act,

the Administrator for Federal Procurement Policy shall issue

for public comment a proposal to amend the Federal Acquisition

Regulation to remove from the Federal Acquisition Regulation

certification requirements for contractors and offerors that are

not specifically imposed by statute. The Administrator may

omit such a certification requirement from the proposal only

if—

(i) the Federal Acquisition Regulatory Council provides

the Administrator with a written justification for the

Public comment.

41 USC 425 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 657

requirement and a determination that there is no less

burdensome means for administering and enforcing the

particular regulation that contains the certification requirement; and

(ii) the Administrator approves in writing the retention

of the certification requirement.

(B)(i) Not later than 210 days after the date of the enactment of this Act, the head of each executive agency that has

agency procurement regulations containing one or more certification requirements for contractors and offerors that are not

specifically imposed by statute shall issue for public comment

a proposal to amend the regulations to remove the certification

requirements. The head of the executive agency may omit such

a certification requirement from the proposal only if—

(I) the senior procurement executive for the executive

agency provides the head of the executive agency with

a written justification for the requirement and a determination that there is no less burdensome means for administering and enforcing the particular regulation that contains

the certification requirement; and

(II) the head of the executive agency approves in writing the retention of such certification requirement.

(ii) For purposes of clause (i), the term ‘‘head of the executive agency’’ with respect to a military department means the

Secretary of Defense.

(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. 29. 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:

‘‘(c) PROHIBITION ON CERTIFICATION REQUIREMENTS.—(1) A

requirement for a certification by a contractor or offeror may not

be included in the Federal Acquisition Regulation unless—

‘‘(A) the certification requirement is specifically imposed

by statute; or

‘‘(B) written justification for such certification requirement

is provided to the Administrator for Federal Procurement Policy

by the Federal Acquisition Regulatory Council, and the

Administrator approves in writing the inclusion of such certification requirement.

‘‘(2)(A) A requirement for a certification by a contractor or

offeror may not be included in a procurement regulation of an

executive agency unless—

‘‘(i) the certification requirement is specifically imposed

by statute; or

‘‘(ii) written justification for such certification requirement

is provided to the head of the executive agency by the senior

procurement executive of the agency, and the head of the executive agency approves in writing the inclusion of such certification requirement.

‘‘(B) For purposes of subparagraph (A), the term ‘head of the

executive agency’ with respect to a military department means

the Secretary of Defense.’’.

Public comment.

110 STAT. 658 PUBLIC LAW 104–106—FEB. 10, 1996

(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.’’.

(c) POLICY OF CONGRESS.—Section 29 of the Office of Federal

Procurement Policy Act (41 U.S.C. 425) is further amended by

adding after subsection (a) the following new subsection:

‘‘(b) CONSTRUCTION OF CERTIFICATION REQUIREMENTS.—A provision of law may not be construed as requiring a certification by

a contractor or offeror in a procurement made or to be made

by the Federal Government unless that provision of law specifically

provides that such a certification shall be required.’’.

SEC. 4302. AUTHORITIES CONDITIONED ON FACNET CAPABILITY.

(a) 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; 108 Stat. 3355) 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 January

1, 1997, and shall expire on January 1, 2001. A contract entered

into before such authority expires in an agency pursuant to a

test shall remain in effect, in accordance with the terms of the

contract, the notwithstanding of expiration the authority to conduct

the test under this section.’’.

(b) USE OF SIMPLIFIED ACQUISITION PROCEDURES.—Subsection

(e) of section 31 of the Office of Federal Procurement Policy Act

(41 U.S.C. 427) is amended—

(1) by striking out ‘‘ACQUISITION PROCEDURES.—’’ and all

that follows through ‘‘(B) The simplified acquisition’’ in paragraph (2)(B) and inserting in lieu thereof ‘‘ACQUISITION PROCEDURES.—The simplified acquisition’’; and

(2) by striking out ‘‘pursuant to this section’’ in the remaining text and inserting in lieu thereof ‘‘pursuant to section

2304(g)(1)(A) of title 10, United States Code, section 303(g)(1)(A)

of the Federal Property and Administrative Services Act of

1949 (41 U.S.C. 253(g)(1)(A)), and subsection (a)(1) of this

section’’.

SEC. 4303. INTERNATIONAL COMPETITIVENESS.

(a) ADDITIONAL AUTHORITY TO WAIVE RESEARCH, DEVELOPMENT, AND PRODUCTION COSTS.—Subject to subsection (b), section

21(e)(2) of the Arms Export Control Act (22 U.S.C. 2761(e)(2))

is amended—

(1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and

(2) by adding at the end the following new subparagraphs:

‘‘(B) The President may waive the charge or charges which

would otherwise be considered appropriate under paragraph (1)(B)

for a particular sale if the President determines that—

‘‘(i) imposition of the charge or charges likely would result

in the loss of the sale; or

‘‘(ii) in the case of a sale of major defense equipment

that is also being procured for the use of the Armed Forces,

the waiver of the charge or charges would (through a resulting

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 659

increase in the total quantity of the equipment purchased from

the source of the equipment that causes a reduction in the

unit cost of the equipment) result in a savings to the United

States on the cost of the equipment procured for the use of

the Armed Forces that substantially offsets the revenue foregone by reason of the waiver of the charge or charges.

‘‘(C) The President may waive, for particular sales of major

defense equipment, any increase in a charge or charges previously

considered appropriate under paragraph (1)(B) if the increase

results from a correction of an estimate (reasonable when made)

of the production quantity base that was used for calculating the

charge or charges for purposes of such paragraph.’’.

(b) CONDITIONS.—Subsection (a) shall be effective only if—

(1) the President, in the budget of the President for fiscal

year 1997, proposes legislation that if enacted would be qualifying offsetting legislation; and

(2) there is enacted qualifying offsetting legislation.

(c) EFFECTIVE DATE.—If the conditions in subsection (b) are

met, then the amendments made by subsection (a) shall take effect

on the date of the enactment of qualifying offsetting legislation.

(d) DEFINITIONS.—For purposes of this section:

(1) The term ‘‘qualifying offsetting legislation’’ means legislation that includes provisions that—

(A) offset fully the estimated revenues lost as a result

of the amendments made by subsection (a) for each of

the fiscal years 1997 through 2005;

(B) expressly state that they are enacted for the purpose of the offset described in subparagraph (A); and

(C) are included in full on the PayGo scorecard.

(2) The term ‘‘PayGo scorecard’’ means the estimates that

are made by the Director of the Congressional Budget Office

and the Director of the Office of Management and Budget

under section 252(d) of the Balanced Budget and Emergency

Deficit Control Act of 1985.

SEC. 4304. 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 official 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.

41 USC 423.

22 USC 2761

note.

22 USC 2761

note.

22 USC 2761

note.

110 STAT. 660 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(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) ACTIONS REQUIRED OF PROCUREMENT OFFICERS WHEN CONTACTED BY OFFERORS REGARDING NON-FEDERAL EMPLOYMENT.—

(1) If an agency official who is participating personally and substantially in a Federal agency procurement for a contract in excess

of the simplified acquisition threshold contacts or is contacted by

a person who is a bidder or offeror in that Federal agency procurement regarding possible non-Federal employment for that official,

the official shall—

‘‘(A) promptly report the contact in writing to the official’s

supervisor and to the designated agency ethics official (or designee) of the agency in which the official is employed; and

‘‘(B)(i) reject the possibility of non-Federal employment;

or

‘‘(ii) disqualify himself or herself from further personal

and substantial participation in that Federal agency procurement until such time as the agency has authorized the official

to resume participation in such procurement, in accordance

with the requirements of section 208 of title 18, United States

Code, and applicable agency regulations on the grounds that—

‘‘(I) the person is no longer a bidder or offeror in

that Federal agency procurement; or

‘‘(II) all discussions with the bidder or offeror regarding

possible non-Federal employment have terminated without

an agreement or arrangement for employment.

‘‘(2) Each report required by this subsection shall be retained

by the agency for not less than two years following the submission

of the report. All such reports shall be made available to the

public upon request, except that any part of a report that is exempt

from the disclosure requirements of section 552 of title 5, United

States Code, under subsection (b)(1) of such section may be withheld

from disclosure to the public.

‘‘(3) An official who knowingly fails to comply with the requirements of this subsection shall be subject to the penalties and

administrative actions set forth in subsection (e).

‘‘(4) A bidder or offeror who engages in employment discussions

with an official who is subject to the restrictions of this subsection,

knowing that the official has not complied with subparagraph (A)

or (B) of paragraph (1), shall be subject to the penalties and administrative actions set forth in subsection (e).

‘‘(d) PROHIBITION ON FORMER OFFICIAL’S ACCEPTANCE OF COMPENSATION FROM CONTRACTOR.—(1) A former official of a Federal

agency may not accept compensation from a contractor as an

employee, officer, director, or consultant of the contractor within

a period of one year after such former official—

‘‘(A) served, at the time of selection of the contractor or

the award of a contract to that contractor, as the procuring

contracting officer, the source selection authority, a member

of the source selection evaluation board, or the chief of a financial or technical evaluation team in a procurement in which

that contractor was selected for award of a contract in excess

of $10,000,000;

Public

information.

Reports.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 661

‘‘(B) served as the program manager, deputy program manager, or administrative contracting officer for a contract in

excess of $10,000,000 awarded to that contractor; or

‘‘(C) personally made for the Federal agency—

‘‘(i) a decision to award a contract, subcontract, modification of a contract or subcontract, or a task order or

delivery order in excess of $10,000,000 to that contractor;

‘‘(ii) a decision to establish overhead or other rates

applicable to a contract or contracts for that contractor

that are valued in excess of $10,000,000;

‘‘(iii) a decision to approve issuance of a contract payment or payments in excess of $10,000,000 to that contractor; or

‘‘(iv) a decision to pay or settle a claim in excess of

$10,000,000 with that contractor.

‘‘(2) Nothing in paragraph (1) may be construed to prohibit

a former official of a Federal agency from accepting compensation

from any division or affiliate of a contractor that does not produce

the same or similar products or services as the entity of the contractor that is responsible for the contract referred to in subparagraph

(A), (B), or (C) of such paragraph.

‘‘(3) A former official who knowingly accepts compensation in

violation of this subsection shall be subject to penalties and administrative actions as set forth in subsection (e).

‘‘(4) A contractor who provides compensation to a former official

knowing that such compensation is accepted by the former official

in violation of this subsection shall be subject to penalties and

administrative actions as set forth in subsection (e).

‘‘(5) Regulations implementing this subsection shall include

procedures for an official or former official of a Federal agency

to request advice from the appropriate designated agency ethics

official regarding whether the official or former official is or would

be precluded by this subsection from accepting compensation from

a particular contractor.

‘‘(e) PENALTIES AND ADMINISTRATIVE ACTIONS.—

‘‘(1) CRIMINAL PENALTIES.—Whoever engages in conduct

constituting a violation of subsection (a) or (b) for the purpose

of either—

‘‘(A) exchanging the information covered by such subsection for anything of value, or

‘‘(B) obtaining or giving anyone a competitive advantage in the award of a Federal agency procurement

contract,

shall be imprisoned for not more than 5 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 an appropriate United States district court

against any person who engages in conduct constituting a violation of subsection (a), (b), (c), or (d). 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

110 STAT. 662 PUBLIC LAW 104–106—FEB. 10, 1996

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 a violation of subsection (a), (b), (c),

or (d), 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 punishable

under paragraph (1), 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), (c),

or (d) affects the present responsibility of a Government contractor or subcontractor.

‘‘(f) 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 the

Federal Property and Administrative Services Act of 1949

(41 U.S.C. 254b(h)), with respect to procurements subject

to that section).

‘‘(B) Indirect costs and direct labor rates.

‘‘(C) Proprietary information about manufacturing

processes, operations, or techniques marked by the contractor in accordance with applicable law or regulation.

‘‘(D) Information marked by the contractor as ‘contractor bid or proposal information’, in accordance with

applicable law or regulation.

‘‘(2) The term ‘source selection information’ means any

of the following information prepared for use by a Federal

agency for the purpose of evaluating a bid or proposal to enter

into a Federal agency procurement contract, if that information

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 663

has not been previously made available to the public or disclosed publicly: ‘‘(A) Bid prices submitted in response to a Federal

agency solicitation for sealed bids, or lists of those bid

prices before public bid opening.

‘‘(B) Proposed costs or prices submitted in response

to a Federal agency solicitation, or lists of those proposed

costs or prices.

‘‘(C) Source selection plans.

‘‘(D) Technical evaluation plans.

‘‘(E) Technical evaluations of proposals.

‘‘(F) Cost or price evaluations of proposals.

‘‘(G) Competitive range determinations that identify

proposals that have a reasonable chance of being selected

for award of a contract.

‘‘(H) Rankings of bids, proposals, or competitors.

‘‘(I) The reports and evaluations of source selection

panels, boards, or advisory councils.

‘‘(J) Other information marked as ‘source selection

information’ based on a case-by-case determination by the

head of the agency, his designee, or the contracting officer

that its disclosure would jeopardize the integrity or successful completion of the Federal agency procurement to which

the information relates.

‘‘(3) The term ‘Federal agency’ has the meaning provided

such term in section 3 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 472).

‘‘(4) The term ‘Federal agency procurement’ means the

acquisition (by using competitive procedures and awarding a

contract) of goods or services (including construction) from nonFederal 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 subchapter V of chapter 35 of title 31, United States Code.

‘‘(7) The term ‘official’ means the following:

‘‘(A) An officer, as defined in section 2104 of title 5,

United States Code.

‘‘(B) An employee, as defined in section 2105 of title

5, United States Code.

‘‘(C) A member of the uniformed services, as defined

in section 2101(3) of title 5, United States Code.

‘‘(g) LIMITATION ON PROTESTS.—No person may file a protest

against the award or proposed award of a Federal agency procurement contract alleging a violation of subsection (a), (b), (c), or

(d), nor may the Comptroller General of the United States consider

such an allegation in deciding a protest, unless that person reported

to the Federal agency responsible for the procurement, no later

than 14 days after the person first discovered the possible violation,

the information that the person believed constitutes evidence of

the offense.

‘‘(h) SAVINGS PROVISIONS.—This section does not—

110 STAT. 664 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(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

official 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, the Comptroller General of the United

States 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).

(6) Part A of title VI of the Department of Energy Organization Act and its catchline (42 U.S.C. 7211, 7212, and 7218).

(7) Section 308 of the Energy Research and Development

Administration Appropriation Authorization Act for Fiscal Year

1977 (42 U.S.C. 5816a).

(8) Section 522 of the Energy Policy and Conservation

Act (42 U.S.C. 6392).

(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.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 665

(4) The table of contents for the Department of Energy

Organization Act is amended by striking out the items relating

to part A of title VI including sections 601 through 603.

(5) The table of contents for the Energy Policy and Conservation Act is amended by striking out the item relating

to section 522.

SEC. 4305. FURTHER ACQUISITION STREAMLINING PROVISIONS.

(a) PURPOSE OF OFFICE OF FEDERAL PROCUREMENT POLICY.—

(1) REVISED STATEMENT OF PURPOSE.—Section 5(a) of the

Office of Federal Procurement Policy Act (41 U.S.C. 404) is

amended to read as follows:

‘‘(a) There is in the Office of Management and Budget an

Office of Federal Procurement Policy (hereinafter referred to as

the ‘Office’) to provide overall direction of Government-wide procurement policies, regulations, procedures, and forms for executive agencies and to promote economy, efficiency, and effectiveness in the

procurement of property and services by the executive branch of

the Federal Government.’’.

(2) REPEAL OF FINDINGS, POLICIES, AND PURPOSES.—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) OBSOLETE PROVISIONS.—

(1) RELATIONSHIP TO FORMER REGULATIONS.—Section 10

of the Office of Federal Procurement Policy Act (41 U.S.C.

409) is repealed.

(2) AUTHORIZATION OF APPROPRIATIONS.—Section 11 of such

Act (41 U.S.C. 410) is amended to read as follows:

‘‘SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

‘‘There is authorized to be appropriated for the Office of Federal

Procurement Policy each fiscal year such sums as may be necessary

for carrying out the responsibilities of that office for such fiscal

year.’’.

(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,

and 10.

SEC. 4306. 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 4203, is further amended by adding at the end the following

new section:

‘‘SEC. 36. VALUE ENGINEERING.

‘‘(a) IN GENERAL.—Each executive agency shall establish and

maintain cost-effective value engineering procedures and processes.

‘‘(b) DEFINITION.—As used in this section, the term ‘value

engineering’ means an analysis of the functions of a program,

project, system, product, item of equipment, building, facility, service, or supply of an executive agency, performed by qualified agency

or contractor personnel, directed at improving performance, reliability, quality, safety, and life cycle costs.’’.

41 USC 432.

110 STAT. 666 PUBLIC LAW 104–106—FEB. 10, 1996

(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. 36. Value engineering.’’.

SEC. 4307. ACQUISITION WORKFORCE.

(a) ACQUISITION WORKFORCE.—(1) The Office of Federal

Procurement Policy Act (41 U.S.C. 401 et seq.), as amended by

section 4306, is further amended by adding at the end the following

new section:

‘‘SEC. 37. 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

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) GOVERNMENT-WIDE POLICIES AND EVALUATION.—The

Administrator shall issue policies to promote uniform

implementation of this section by executive agencies, with due

regard for differences in program requirements among agencies

that may be appropriate and warranted in view of the agency

mission. The Administrator shall coordinate with the Deputy

Director for Management of the Office of Management and

Budget to ensure that such policies are consistent with the

policies and procedures established and enhanced system of

incentives provided pursuant to section 5051(c) of the Federal

Acquisition Streamlining Act of 1994 (41 U.S.C. 263 note).

The Administrator shall evaluate the implementation of the

provisions of this section by executive agencies.

‘‘(c) SENIOR PROCUREMENT EXECUTIVE AUTHORITIES AND

RESPONSIBILITIES.—Subject to the authority, direction, and control

of the head of an executive agency, the senior procurement executive

of the agency shall carry out all powers, functions, and duties

of the head of the agency with respect to implementation of this

section. The senior procurement executive shall ensure that the

policies of the head of the executive agency established in accordance with this section are implemented throughout the agency.

‘‘(d) MANAGEMENT INFORMATION SYSTEMS.—The Administrator

shall ensure that the heads of executive agencies collect and maintain standardized information on the acquisition workforce related

to implementation of this section. To the maximum extent practicable, such data requirements shall conform to standards estab41 USC 433.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 667

lished by the Office of Personnel Management for the Central

Personnel Data File.

‘‘(e) APPLICABILITY TO ACQUISITION WORKFORCE.—The programs

established by this section shall apply to the acquisition workforce

of each executive agency. For purposes of this section, the acquisition workforce of an agency consists of all employees serving in

acquisition positions listed in subsection (g)(1)(A).

‘‘(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 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 (including the extent

to which the performance of personnel in such workforce

contributes to achieving the cost goals, schedule goals, and

performance goals established for acquisition programs

pursuant to section 313(b) of the Federal Property and

Administrative Services Act of 1949 (41 U.S.C. 263(b)));

and

‘‘(B) provide for consideration, in personnel evaluations

and promotion decisions, of the extent to which the

performance of personnel in such workforce contributes

to achieving such cost goals, schedule goals, and performance goals.

‘‘(g) QUALIFICATION REQUIREMENTS.—

‘‘(1) IN GENERAL.—(A) Subject to paragraph (2), the

Administrator shall establish qualification requirements,

including education requirements, for the following positions:

‘‘(i) Entry-level positions in the General Schedule

Contracting series (GS–1102).

110 STAT. 668 PUBLIC LAW 104–106—FEB. 10, 1996

‘‘(ii) Senior positions in the General Schedule Contracting series (GS–1102).

‘‘(iii) All positions in the General Schedule Purchasing

series (GS–1105).

‘‘(iv) Positions in other General Schedule series in

which significant acquisition-related functions are performed.

‘‘(B) Subject to paragraph (2), the Administrator shall prescribe the manner and extent to which such qualification

requirements shall apply to any person serving in a position

described in subparagraph (A) at the time such requirements

are established.

‘‘(2) RELATIONSHIP TO REQUIREMENTS APPLICABLE TO

DEFENSE ACQUISITION WORKFORCE.—The Administrator shall

establish qualification requirements and make prescriptions

under paragraph (1) that are comparable to those established

for the same or equivalent positions pursuant to chapter 87

of title 10, United States Code, with appropriate modifications.

‘‘(3) APPROVAL OF REQUIREMENTS.—The Administrator shall

submit any requirement established or prescription made under

paragraph (1) to the Director of the Office of Personnel Management for approval. If the Director does not disapprove a requirement or prescription within 30 days after the date on which

the Director receives it, the requirement or prescription is

deemed to be approved by the Director.

‘‘(h) EDUCATION AND TRAINING.—

‘‘(1) FUNDING LEVELS.—(A) The head of an executive agency

shall set forth separately the funding levels requested for education and training of the acquisition workforce 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.

‘‘(B) Funds appropriated for education and training under

this section may not be obligated for any other purpose.

‘‘(2) TUITION ASSISTANCE.—The head of an executive agency may provide tuition reimbursement in education (including a

full-time course of study leading to a degree) in accordance

with section 4107 of title 5, United States Code, for personnel

serving in acquisition positions in the agency.’’.

(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. 37. Acquisition workforce.’’.

(b) ADDITIONAL AMENDMENTS.—Section 6(d) of the Office of

Federal Procurement Policy Act (41 U.S.C. 405), is amended— (1) by redesignating paragraphs (6), (7), (8), (9), (10), (11), and (12) (as transferred by section 4321(h)(1)) as paragraphs

(7), (8), (9), (10), (11), (12), and (13), respectively; (2) in paragraph (5)— (A) in subparagraph (A), by striking out ‘‘Governmentwide career management programs for a professional

procurement work force’’ and inserting in lieu thereof ‘‘the

development of a professional acquisition workforce

Government-wide’’; and

(B) in subparagraph (B)— (i) by striking out ‘‘procurement by the’’ and inserting in lieu thereof ‘‘acquisition by the’’;

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 669

(ii) by striking out ‘‘and’’ at the end of the subparagraph; and (iii) by striking out subparagraph (C) and inserting

in lieu thereof the following:

‘‘(C) 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;

‘‘(D) periodically analyze acquisition career fields to

identify critical competencies, duties, tasks, and related

academic prerequisites, skills, and knowledge;

‘‘(E) coordinate and assist agencies in identifying and

recruiting highly qualified candidates for acquisition fields;

‘‘(F) develop instructional materials for acquisition

personnel in coordination with private and public acquisition colleges and training facilities;

‘‘(G) evaluate the effectiveness of training and career

development programs for acquisition personnel;

‘‘(H) promote the establishment and utilization of academic programs by colleges and universities in acquisition

fields;

‘‘(I) facilitate, to the extent requested by agencies, interagency intern and training programs; and

‘‘(J) perform other career management or research

functions as directed by the Administrator.’’; and

(3) by inserting before paragraph (7) (as so redesignated)

the following new paragraph (6):

‘‘(6) administering the provisions of section 37;’’.

SEC. 4308. DEMONSTRATION PROJECT RELATING TO CERTAIN

PERSONNEL MANAGEMENT POLICIES AND PROCEDURES.

(a) COMMENCEMENT.—The Secretary of Defense is encouraged

to take such steps as may be necessary to provide for the commencement of a demonstration project, the purpose of which would be

to determine the feasibility or desirability of one or more proposals

for improving the personnel management policies or procedures

that apply with respect to the acquisition workforce of the Department of Defense.

(b) TERMS AND CONDITIONS.—

(1) IN GENERAL.—Except as otherwise provided in this subsection, any demonstration project described in subsection (a)

shall be subject to section 4703 of title 5, United States Code,

and all other provisions of such title that apply with respect

to any demonstration project under such section.

(2) EXCEPTIONS.—Subject to paragraph (3), in applying section 4703 of title 5, United States Code, with respect to a

demonstration project described in subsection (a)—

(A) ‘‘180 days’’ in subsection (b)(4) of such section shall

be deemed to read ‘‘120 days’’;

(B) ‘‘90 days’’ in subsection (b)(6) of such section shall

be deemed to read ‘‘30 days’’; and

(C) subsection (d)(1)(A) of such section shall be disregarded.

(3) CONDITION.—Paragraph (2) shall not apply with respect

to a demonstration project unless it—

(A) involves only the acquisition workforce of the

Department of Defense (or any part thereof); and

10 USC 1701

note.

110 STAT. 670 PUBLIC LAW 104–106—FEB. 10, 1996

(B) commences during the 3-year period beginning on the date of the enactment of this Act.

(c) DEFINITION.—For purposes of this section, the term ‘‘acquisition workforce’’ refers to the persons serving in acquisition positions

within the Department of Defense, as designated pursuant to section 1721(a) of title 10, United States Code.

SEC. 4309. COOPERATIVE PURCHASING.

(a) DELAY IN OPENING CERTAIN FEDERAL SUPPLY SCHEDULES

TO USE BY STATE, LOCAL, AND INDIAN TRIBAL GOVERNMENTS.— The Administrator of General Services may not use the authority

of section 201(b)(2) of the Federal Property and Administrative

Services Act of 1949 (40 U.S.C. 481(b)(2)) to provide for the use

of Federal supply schedules of the General Services Administration

until after the later of—

(1) the date on which the 18-month period beginning on the date of the enactment of this Act expires; or (2) the date on which all of the following conditions are

met:

(A) The Administrator has considered the report of the Comptroller General required by subsection (b). (B) The Administrator has submitted comments on

such report to Congress as required by subsection (c). (C) A period of 30 days after the date of submission of such comments to Congress has expired. (b) REPORT.—Not later than one year after the date of the enactment of this Act, the Comptroller General shall submit to

the Administrator of General Services and to Congress a report

on the implementation of section 201(b) of the Federal Property

and Administrative Services Act of 1949. The report shall include

the following: (1) An assessment of the effect on industry, including small businesses and local dealers, of providing for the use of Federal

supply schedules by the entities described in section

201(b)(2)(A) of the Federal Property and Administrative Services Act of 1949.

(2) An assessment of the effect on such entities of providing for the use of Federal supply schedules by them.

(c) COMMENTS ON REPORT BY ADMINISTRATOR.—Not later than

30 days after receiving the report of the Comptroller General

required by subsection (b), the Administrator of General Services

shall submit to Congress comments on the report, including the

Administrator’s comments on whether the Administrator plans to

provide any Federal supply schedule for the use of any entity

described in section 201(b)(2)(A) of the Federal Property and

Administrative Services Act of 1949.

(d) CALCULATION OF 30-DAY PERIOD.—For purposes of subsection (a)(2)(C), the calculation of the 30-day period shall exclude

Saturdays, Sundays, and holidays, and any day on which neither

House of Congress is in session because of an adjournment sine

die, a recess of more than 3 days, or an adjournment of more

than 3 days.

SEC. 4310. PROCUREMENT NOTICE TECHNICAL AMENDMENT.

Section 18(c)(1)(E) of the Office of Federal Procurement Policy Act (41 U.S.C. 416(c)(1)(E)) is amended by inserting after ‘‘requirements contract’’ the following: ‘‘, a task order contract, or a delivery

order contract’’.

40 USC 481 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 671

SEC. 4311. MICRO-PURCHASES WITHOUT COMPETITIVE QUOTATIONS.

Section 32(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 428), as redesignated by section 4304(c)(3), is amended

by striking out ‘‘the contracting officer’’ and inserting in lieu thereof

‘‘an employee of an executive agency or a member of the Armed

Forces of the United States authorized to do so’’.

Subtitle B—Technical Amendments

SEC. 4321. AMENDMENTS RELATED TO FEDERAL ACQUISITION

STREAMLINING ACT OF 1994.

(a) PUBLIC LAW 103–355.—Effective as of October 13, 1994,

and as if included therein as enacted, the Federal Acquisition

Streamlining Act of 1994 (Public Law 103–355; 108 Stat. 3243

et seq.) is amended as follows:

(1) Section 1073 (108 Stat. 3271) is amended by striking

out ‘‘section 303I’’ and inserting in lieu thereof ‘‘section 303K’’.

(2) Section 1202(a) (108 Stat. 3274) is amended by striking

out the closing quotation marks and second period at the end

of paragraph (2)(B) of the subsection inserted by the amendment made by that section.

(3) Section 1251(b) (108 Stat. 3284) is amended by striking

out ‘‘Office of Federal Procurement Policy Act’’ and inserting

in lieu thereof ‘‘Federal Property and Administrative Services

Act of 1949’’.

(4) Section 2051(e) (108 Stat. 3304) is amended by striking

out the closing quotation marks and second period at the end

of subsection (f)(3) in the matter inserted by the amendment

made by that section.

(5) Section 2101(a)(6)(B)(ii) (108 Stat. 3308) is amended

by replacing ‘‘regulation’’ with ‘‘regulations’’ in the first quoted

matter.

(6) Section 2351(a) (108 Stat. 3322) is amended by inserting

‘‘(1)’’ before ‘‘Section 6’’.

(7) The heading of section 2352(b) (108 Stat. 3322) is

amended by striking out ‘‘PROCEDURES TO SMALL BUSINESS

GOVERNMENT CONTRACTORS.—’’ and inserting in lieu thereof

‘‘PROCEDURES.—’’.

(8) Section 3022 (108 Stat. 3333) is amended by striking

out ‘‘each place’’ and all that follows through the end of the

section and inserting in lieu thereof ‘‘in paragraph (1) and

‘, rent,’ after ‘sell’ in paragraph (2).’’.

(9) Section 5092(b) (108 Stat. 3362) is amended by inserting

‘‘of paragraph (2)’’ after ‘‘second sentence’’.

(10) Section 6005(a) (108 Stat. 3364) is amended by striking

out the closing quotation marks and second period at the end

of subsection (e)(2) of the matter inserted by the amendment

made by that section.

(11) Section 10005(f)(4) (108 Stat. 3409) is amended in

the second matter in quotation marks by striking out ‘‘ ‘SEC.

5. This Act’’ and inserting in lieu thereof ‘‘ ‘SEC. 7. This title’’.

(b) TITLE 10, UNITED STATES CODE.—Title 10, United States

Code, is amended as follows:

(1) Section 2220(b) is amended by striking out ‘‘the date

of the enactment of the Federal Acquisition Streamlining Act

of 1994’’ and inserting in lieu thereof ‘‘October 13, 1994’’.

41 USC 10a note.

10 USC 2409.

41 USC 418b.

10 USC 2539b.

41 USC 605.

41 USC 605.

10 USC 2324.

41 USC 255.

41 USC 254b

note.

10 USC 2306a.

41 USC 253l.

Effective date.

10 USC 2306a

note.

110 STAT. 672 PUBLIC LAW 104–106—FEB. 10, 1996

(2)(A) The section 2247 added by section 7202(a)(1) of Public Law 103–355 (108 Stat. 3379) is redesignated as section 2249. (B) The item relating to that section in the table of sections

at the beginning of subchapter I of chapter 134 is revised

to conform to the redesignation made by subparagraph (A).

(3) Section 2302(3)(K) is amended by adding a period at

the end.

(4) Section 2304(f)(2)(D) is amended by striking out ‘‘the

Act of June 25, 1938 (41 U.S.C. 46 et seq.), popularly referred

to as the Wagner-O’Day Act,’’ and inserting in lieu thereof

‘‘the Javits-Wagner-O’Day Act (41 U.S.C. 46 et seq.),’’.

(5) Section 2304(h) is amended by striking out paragraph

(1) and inserting in lieu thereof the following:

‘‘(1) The Walsh-Healey Act (41 U.S.C. 35 et seq.).’’.

(6)(A) The section 2304a added by section 848(a)(1) of Public

Law 103–160 (107 Stat. 1724) is redesignated as section 2304e.

(B) The item relating to that section in the table of sections

at the beginning of chapter 137 is revised to conform to the

redesignation made by subparagraph (A).

(7) Section 2306a is amended—

(A) in subsection (d)(2)(A)(ii), by inserting ‘‘to’’ after

‘‘The information referred’’;

(B) in subsection (e)(4)(B)(ii), by striking out the second

comma after ‘‘parties’’; and

(C) in subsection (i)(3), by inserting ‘‘(41 U.S.C.

403(12))’’ before the period at the end.

(8) Section 2323 is amended—

(A) in subsection (a)(1)(C), by inserting a closing parenthesis after ‘‘1135d–5(3))’’ and after ‘‘1059c(b)(1))’’;

(B) in subsection (a)(3), by striking out ‘‘(issued under’’

and all that follows through ‘‘421(c))’’;

(C) in subsection (b), by inserting ‘‘(1)’’ after

‘‘AMOUNT.—’’; and

(D) in subsection (i)(3), by adding at the end a subparagraph (D) identical to the subparagraph (D) set forth in

the amendment made by section 811(e) of Public Law 103–

160 (107 Stat. 1702).

(9) Section 2324 is amended—

(A) in subsection (e)(2)(C)—

(i) by striking out ‘‘awarding the contract’’ at the

end of the first sentence; and

(ii) by striking out ‘‘title III’’ and all that follows

through ‘‘Act)’’ and inserting in lieu thereof ‘‘the Buy

American Act (41 U.S.C. 10b–1)’’; and

(B) in subsection (h)(2), by inserting ‘‘the head of the

agency or’’ after ‘‘in the case of any contract if’’.

(10) Section 2350b is amended—

(A) in subsection (c)(1)—

(i) by striking out ‘‘specifically—’’ and inserting

in lieu thereof ‘‘specifically prescribes—’’; and

(ii) by striking out ‘‘prescribe’’ in each of subparagraphs (A), (B), (C), and (D); and

(B) in subsection (d)(1), by striking out ‘‘subcontract

to be’’ and inserting in lieu thereof ‘‘subcontract be’’.

(11) Section 2372(i)(1) is amended by striking out ‘‘section

2324(m)’’ and inserting in lieu thereof ‘‘section 2324(l)’’.

(12) Section 2384(b) is amended—

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 673

(A) in paragraph (2)—

(i) by striking ‘‘items, as’’ and inserting in lieu

thereof ‘‘items (as’’; and

(ii) by inserting a closing parenthesis after

‘‘403(12))’’; and

(B) in paragraph (3), by inserting a closing parenthesis

after ‘‘403(11))’’.

(13) Section 2400(a)(5) is amended by striking out ‘‘the

preceding sentence’’ and inserting in lieu thereof ‘‘this paragraph’’.

(14) Section 2405 is amended—

(A) in paragraphs (1) and (2) of subsection (a), by

striking out ‘‘the date of the enactment of the Federal

Acquisition Streamlining Act of 1994’’ and inserting in

lieu thereof ‘‘October 13, 1994’’; and

(B) in subsection (c)(3)—

(i) by striking out ‘‘the later of—’’ and all that

follows through ‘‘(B)’’; and

(ii) by redesignating clauses (i), (ii), and (iii) as

subparagraphs (A), (B), and (C), respectively, and

realigning those subparagraphs accordingly.

(15) Section 2410d(b) is amended by striking out paragraph

(3).

(16) Section 2410g(d)(1) is amended by inserting before

the period at the end the following: ‘‘(as defined in section

4(12) of the Office of Federal Procurement Policy Act (41 U.S.C.

403(12)))’’.

(17) Section 2424(c) is amended—

(A) by inserting ‘‘EXCEPTION.—’’ after ‘‘(c)’’; and

(B) by striking out ‘‘drink’’ the first and third places

it appears in the second sentence and inserting in lieu

thereof ‘‘beverage’’.

(18) Section 2431 is amended—

(A) in subsection (b)—

(i) by striking out ‘‘Any report’’ in the first sentence

and inserting in lieu thereof ‘‘Any documents’’; and

(ii) by striking out ‘‘the report’’ in paragraph (3)

and inserting in lieu thereof ‘‘the documents’’; and

(B) in subsection (c), by striking ‘‘reporting’’ and inserting in lieu thereof ‘‘documentation’’.

(19) Section 2461(e)(1) is amended by striking out ‘‘the

Act of June 25, 1938 (41 U.S.C. 47), popularly referred to

as the Wagner-O’Day Act’’ and inserting in lieu thereof ‘‘the

Javits-Wagner-O’Day Act (41 U.S.C. 47)’’.

(20) Section 2533(a) is amended by striking out ‘‘title III

of the Act’’ and all that follows through ‘‘such Act’’ and inserting

in lieu thereof ‘‘the Buy American Act (41 U.S.C. 10a)) whether

application of such Act’’.

(21) Section 2662(b) is amended by striking out ‘‘small

purchase threshold’’ and inserting in lieu thereof ‘‘simplified

acquisition threshold’’.

(22) Section 2701(i)(1) is amended—

(A) by striking out ‘‘Act of August 24, 1935 (40 U.S.C.

270a–270d), commonly referred to as the ‘Miller Act’,’’ and

inserting in lieu thereof ‘‘Miller Act (40 U.S.C. 270a et

seq.)’’; and

110 STAT. 674 PUBLIC LAW 104–106—FEB. 10, 1996

(B) by striking out ‘‘such Act of August 24, 1935’’

and inserting in lieu thereof ‘‘the Miller Act’’. (c) SMALL BUSINESS ACT.—The Small Business Act (15 U.S.C.

632 et seq.) is amended as follows:

(1) Section 8(d) (15 U.S.C. 637(d)) is amended—

(A) in paragraph (1), by striking out the second comma

after ‘‘small business concerns’’ the first place it appears;

and

(B) in paragraph (6)(C), by striking out ‘‘and small

business concerns owned and controlled by the socially

and economically disadvantaged individuals’’ and inserting

in lieu thereof ‘‘, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled

by women’’.

(2) Section 8(f) (15 U.S.C. 637(f)) is amended by inserting

‘‘and’’ after the semicolon at the end of paragraph (5).

(3) Section 15(g)(2) (15 U.S.C. 644(g)(2)) is amended by

striking out the second comma after the first appearance of

‘‘small business concerns’’.

(d) TITLE 31, UNITED STATES CODE.—Title 31, United States

Code, is amended as follows:

(1) Section 3551 is amended—

(A) by striking out ‘‘subchapter—’’ and inserting in

lieu thereof ‘‘subchapter:’’; and

(B) in paragraph (2), by striking out ‘‘or proposed contract’’ and inserting in lieu thereof ‘‘or a solicitation or

other request for offers’’.

(2) Section 3553(b)(3) is amended by striking out

‘‘3554(a)(3)’’ and inserting in lieu thereof ‘‘3554(a)(4)’’.

(3) Section 3554(b)(2) is amended by striking out ‘‘section

3553(d)(2)(A)(i)’’ and inserting in lieu thereof ‘‘section

3553(d)(3)(C)(i)(I)’’.

(e) FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF

1949.—The Federal Property and Administrative Services Act of

1949 is amended as follows:

(1) The table of contents in section 1 (40 U.S.C. 471 prec.)

is amended—

(A) by striking out the item relating to section 104;

(B) by striking out the item relating to section 201

and inserting in lieu thereof the following:

‘‘Sec. 201. Procurements, warehousing, and related activities.’’;

(C) by inserting after the item relating to section 315

the following new item:

‘‘Sec. 316. Merit-based award of grants for research and development.’’;

(D) by striking out the item relating to section 603

and inserting in lieu thereof the following:

‘‘Sec. 603. Authorizations for appropriations and transfer authority.’’;

and

(E) by inserting after the item relating to section 605

the following new item:

‘‘Sec. 606. Sex discrimination.’’.

(2) Section 303(f)(2)(D) (41 U.S.C. 253(f)(2)(D)) is amended

by striking out ‘‘the Act of June 25, 1938 (41 U.S.C. 46 et

seq.), popularly referred to as the Wagner-O’Day Act,’’ and

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 675

inserting in lieu thereof ‘‘the Javits-Wagner-O’Day Act (41

U.S.C. 46 et seq.),’’.

(3) The heading for paragraph (1) of section 304A(c) (41 U.S.C. 254b(c)) is amended by changing each letter that is

capitalized (other than the first letter of the first word) to

lower case.

(4) Subsection (d)(2)(A)(ii) of section 304A (41 U.S.C. 254b)

is amended by inserting ‘‘to’’ after ‘‘The information referred’’.

(5) Section 304C(a)(2) is amended by striking out ‘‘section

304B’’ and inserting in lieu thereof ‘‘section 304A’’.

(6) Section 307(b) is amended by striking out ‘‘section

305(c)’’ and inserting in lieu thereof ‘‘section 305(d)’’.

(7) The heading for section 314A (41 U.S.C. 264a) is

amended to read as follows:

‘‘SEC. 314A. DEFINITIONS RELATING TO PROCUREMENT OF COMMERCIAL ITEMS.’’.

(8) Section 315(b) (41 U.S.C. 265(b)) is amended by striking

out ‘‘inspector general’’ both places it appears and inserting

in lieu thereof ‘‘Inspector General’’.

(9) The heading for section 316 (41 U.S.C. 266) is amended

by inserting at the end a period.

(f) WALSH-HEALEY ACT.—

(1) The Walsh-Healey Act (41 U.S.C. 35 et seq.) is

amended—

(A) by transferring the second section 11 (as added

by section 7201(4) of Public Law 103–355) so as to appear

after section 10; and

(B) by redesignating the three sections following such

section 11 (as so transferred) as sections 12, 13, and 14.

(2) Such Act is further amended in section 10—

(A) in subsection (b), by striking out ‘‘section 1(b)’’

and inserting in lieu thereof ‘‘section 1(a)’’; and

(B) in subsection (c), by striking out the comma after

‘‘ ‘locality’ ’’.

(g) ANTI-KICKBACK ACT OF 1986.—Section 7(d) of the AntiKickback Act of 1986 (41 U.S.C. 57(d)) is amended—

(1) by striking out ‘‘such Act’’ and inserting in lieu thereof

‘‘the Office of Federal Procurement Policy Act’’; and

(2) by striking out the second period at the end.

(h) OFFICE OF FEDERAL PROCUREMENT POLICY ACT.—The Office

of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is

amended as follows:

(1) Section 6 (41 U.S.C. 405) is amended by transferring

paragraph (12) of subsection (d) (as such paragraph was

redesignated by section 5091(2) of the Federal Acquisition

Streamlining Act of 1994 (P.L. 103–355; 108 Stat. 3361)) to

the end of that subsection.

(2) Section 6(11) (41 U.S.C. 405(11)) is amended by striking

out ‘‘small business’’ and inserting in lieu thereof ‘‘small

businesses’’.

(3) Section 18(b) (41 U.S.C. 416(b)) is amended by inserting

‘‘and’’ after the semicolon at the end of paragraph (5).

(4) Section 26(f)(3) (41 U.S.C. 422(f)(3)) is amended in the

first sentence by striking out ‘‘Not later than 180 days after

the date of enactment of this section, the Administrator’’ and

inserting in lieu thereof ‘‘The Administrator’’.

41 USC 43a.

41 USC 35 note,

44, 45.

41 USC 43b.

41 USC 257.

41 USC 254d.

110 STAT. 676 PUBLIC LAW 104–106—FEB. 10, 1996

(i) OTHER LAWS.— (1) The National Defense Authorization Act for Fiscal Year

1994 (Public Law 103–160) is amended as follows:

(A) Section 126(c) (107 Stat. 1567) is amended by striking out ‘‘section 2401 of title 10, United States Code, or

section 9081 of the Department of Defense Appropriations

Act, 1990 (10 U.S.C. 2401 note).’’ and inserting in lieu

thereof ‘‘section 2401 or 2401a of title 10, United States

Code.’’.

(B) Section 127 (107 Stat. 1568) is amended—

(i) in subsection (a), by striking out ‘‘section 2401

of title 10, United States Code, or section 9081 of

the Department of Defense Appropriations Act, 1990

(10 U.S.C. 2401 note).’’ and inserting in lieu thereof

‘‘section 2401 or 2401a of title 10, United States Code.’’;

and

(ii) in subsection (e), by striking out ‘‘section 9081

of the Department of Defense Appropriations Act, 1990

(10 U.S.C. 2401 note).’’ and inserting in lieu thereof

‘‘section 2401a of title 10, United States Code.’’.

(2) The National Defense Authorization Act for Fiscal Years

1990 and 1991 (Public Law 101–189) is amended by striking

out section 824.

(3) Section 117 of the National Defense Authorization Act,

Fiscal Year 1989 (Public Law 100–456; 10 U.S.C. 2431 note)

is amended by striking out subsection (c).

(4) The National Defense Authorization Act for Fiscal Years

1988 and 1989 (Public Law 100–180) is amended by striking

out section 825 (10 U.S.C. 2432 note).

(5) Section 11 of Public Law 101–552 (5 U.S.C. 581 note)

is amended by inserting ‘‘under’’ before ‘‘the amendments made

by this Act’’.

(6) The last sentence of section 6 of the Federal Power

Act (16 U.S.C. 799) is repealed.

(7) Section 101(a)(11)(A) of the Rehabilitation Act of 1973

(29 U.S.C. 721(a)(11)(A)) is amended by striking out ‘‘the Act

entitled ‘An Act to create a Committee on Purchases of Blindmade Products, and for other purposes’, approved June 25,

1938 (commonly known as the Wagner-O’Day Act; 41 U.S.C.

46 et seq.)’’ and inserting in lieu thereof ‘‘the Javits-WagnerO’Day Act (41 U.S.C. 46 et seq.)’’.

(8) The first section 5 of the Miller Act (40 U.S.C. 270a

note) is redesignated as section 7 and, as so redesignated,

is transferred to the end of that Act.

(9) Section 3737(g) of the Revised Statutes of the United

States (41 U.S.C. 15(g)) is amended by striking out ‘‘rights

of obligations’’ and inserting in lieu thereof ‘‘rights or obligations’’.

(10) The Act of June 15, 1940 (41 U.S.C. 20a; Chapter

367; 54 Stat. 398), is repealed.

(11) The Act of November 28, 1943 (41 U.S.C. 20b; Chapter

328; 57 Stat. 592), is repealed.

(12) Section 3741 of the Revised Statutes of the United

States (41 U.S.C. 22), as amended by section 6004 of Public

Law 103–355 (108 Stat. 3364), is amended by striking out

‘‘No member’’ and inserting in lieu thereof ‘‘SEC. 3741. No

Member’’.

5 USC 571 note.

10 USC 2341

note.

10 USC 2325

note.

10 USC 2401

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 677

(13) Section 5152(a)(1) of the Drug-Free Workplace Act

of 1988 (41 U.S.C. 701(a)(1)) is amended by striking out ‘‘as

defined in section 4 of the Office of Federal Procurement Policy

Act (41 U.S.C. 403)’’ and inserting in lieu thereof ‘‘(as defined

in section 4(12) of such Act (41 U.S.C. 403(12)))’’.

SEC. 4322. MISCELLANEOUS AMENDMENTS TO FEDERAL ACQUISITION

LAWS.

(a) OFFICE OF FEDERAL PROCUREMENT POLICY ACT.—The Office

of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) is amended as follows:

(1) Section 6(b) (41 U.S.C. 405(b)) is amended by striking

out the second comma after ‘‘under subsection (a)’’ in the first

sentence.

(2) Section 25(b)(2) (41 U.S.C. 421(b)(2)) is amended by

striking out ‘‘Under Secretary of Defense for Acquisition’’ and

inserting in lieu thereof ‘‘Under Secretary of Defense for

Acquisition and Technology’’.

(b) OTHER LAWS.—

(1) Section 11(2) of the Inspector General Act of 1978

(5 U.S.C. App.) is amended by striking out the second comma

after ‘‘Community Service’’.

(2) Section 908(e) of the Defense Acquisition Improvement

Act of 1986 (10 U.S.C. 2326 note) is amended by striking

out ‘‘section 2325(g)’’ and inserting in lieu thereof ‘‘section

2326(g)’’.

(3) Effective as of August 9, 1989, and as if included therein

as enacted, Public Law 101–73 is amended in section

501(b)(1)(A) (103 Stat. 393) by striking out ‘‘be,’’ and inserting

in lieu thereof ‘‘be;’’ in the second quoted matter therein.

(4) Section 3732(a) of the Revised Statutes of the United

States (41 U.S.C. 11(a)) is amended by striking out the second

comma after ‘‘quarters’’.

(5) Section 2 of the Contract Disputes Act of 1978 (41

U.S.C. 601) is amended in paragraphs (3), (5), (6), and (7),

by striking out ‘‘The’’ and inserting in lieu thereof ‘‘the’’.

(6) Section 6 of the Contract Disputes Act of 1978 (41

U.S.C. 605) is amended in subsections (d) and (e) by inserting

after ‘‘United States Code’’ each place it appears the following:

‘‘(as in effect on September 30, 1995)’’.

(7) Section 13 of the Contract Disputes Act of 1978 (41

U.S.C. 612) is amended—

(A) in subsection (a), by striking out ‘‘section 1302

of the Act of July 27, 1956, (70 Stat. 694, as amended;

31 U.S.C. 724a)’’ and inserting in lieu thereof ‘‘section

1304 of title 31, United States Code’’; and

(B) in subsection (c), by striking out ‘‘section 1302

of the Act of July 27, 1956, (70 Stat. 694, as amended;

31 U.S.C. 724a)’’ and inserting in lieu thereof ‘‘section

1304 of title 31, United States Code,’’.

5 USC app. 11,

11 note.

Effective date.

110 STAT. 678 PUBLIC LAW 104–106—FEB. 10, 1996

TITLE XLIV—EFFECTIVE DATES AND

IMPLEMENTATION

SEC. 4401. EFFECTIVE DATE AND APPLICABILITY.

(a) EFFECTIVE DATE.—Except as otherwise provided in this

division, this division and the amendments made by this division

shall take effect on the date of the enactment of this Act.

(b) APPLICABILITY OF AMENDMENTS.—

(1) SOLICITATIONS, UNSOLICITED PROPOSALS, AND RELATED

CONTRACTS.—An amendment made by this division shall apply,

in the manner prescribed in the final regulations promulgated

pursuant to section 4402 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) OTHER MATTERS.—An amendment made by this division

shall also apply, to the extent and in the manner prescribed

in the final regulations promulgated pursuant to section 4402

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) DEMARCATION DATE.—The date referred to in paragraphs (1) and (2) is the date specified in such final regulations.

The date so specified shall be January 1, 1997, or any earlier

date that is not within 30 days after the date on which such

final regulations are published.

SEC. 4402. 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 Act 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 Act

may provide for modification of an existing contract without consideration upon the request of the contractor.

(e) SAVINGS PROVISIONS.—

(1) VALIDITY OF PRIOR ACTIONS.—Nothing in this division

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 4401(b)(3) except to the extent

and in the manner prescribed in such regulations.

Federal Register,

publication.

Federal Register,

publication.

41 USC 251 note.

41 USC 251 note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 679

(2) RENEGOTIATION AND MODIFICATION OF PREEXISTING

CONTRACTS.—Except as specifically provided in this division,

nothing in this division shall be construed to require the renegotiation or modification of contracts in existence on the date

of the enactment of this Act.

(3) CONTINUED APPLICABILITY OF PREEXISTING LAW.—Except

as otherwise provided in this division, a law amended by this

division 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, January

1, 1997.

DIVISION E—INFORMATION

TECHNOLOGY MANAGEMENT REFORM

SEC. 5001. SHORT TITLE.

This division may be cited as the ‘‘Information Technology

Management Reform Act of 1996’’.

SEC. 5002. DEFINITIONS.

In this division:

(1) DIRECTOR.—The term ‘‘Director’’ means the Director

of the Office of Management and Budget.

(2) EXECUTIVE AGENCY.—The term ‘‘executive agency’’ has

the meaning given that term in section 4(1) of the Office of

Federal Procurement Policy Act (41 U.S.C. 403(1)).

(3) INFORMATION TECHNOLOGY.—(A) The term ‘‘information

technology’’, with respect to an executive agency means any

equipment or interconnected system or subsystem of equipment,

that is used in the automatic acquisition, storage, manipulation,

management, movement, control, display, switching, interchange, transmission, or reception of data or information by

the executive agency. For purposes of the preceding sentence,

equipment is used by an executive agency if the equipment

is used by the executive agency directly or is used by a contractor under a contract with the executive agency which (i)

requires the use of such equipment, or (ii) requires the use,

to a significant extent, of such equipment in the performance

of a service or the furnishing of a product.

(B) The term ‘‘information technology’’ includes computers,

ancillary equipment, software, firmware and similar procedures, services (including support services), and related

resources.

(C) Notwithstanding subparagraphs (A) and (B), the term

‘‘information technology’’ does not include any equipment that

is acquired by a Federal contractor incidental to a Federal

contract.

(4) INFORMATION RESOURCES.—The term ‘‘information

resources’’ has the meaning given such term in section 3502(6)

of title 44, United States Code.

40 USC 1401.

40 USC 1401

note.

Information

Technology

Management

Reform Act of

1996.

110 STAT. 680 PUBLIC LAW 104–106—FEB. 10, 1996

(5) INFORMATION RESOURCES MANAGEMENT.—The term

‘‘information resources management’’ has the meaning given

such term in section 3502(7) of title 44, United States Code.

(6) INFORMATION SYSTEM.—The term ‘‘information system’’

has the meaning given such term in section 3502(8) of title

44, United States Code.

(7) COMMERCIAL ITEM.—The term ‘‘commercial item’’ has

the meaning given that term in section 4(12) of the Office

of Federal Procurement Policy Act (41 U.S.C. 403(12)).

TITLE LI—RESPONSIBILITY FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

Subtitle A—General Authority

SEC. 5101. REPEAL OF CENTRAL AUTHORITY OF THE ADMINISTRATOR

OF GENERAL SERVICES.

Section 111 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 759) is repealed.

Subtitle B—Director of the Office of

Management and Budget

SEC. 5111. RESPONSIBILITY OF DIRECTOR.

In fulfilling the responsibility to administer the functions

assigned under chapter 35 of title 44, United States Code, the

Director shall comply with this title with respect to the specific

matters covered by this title.

SEC. 5112. CAPITAL PLANNING AND INVESTMENT CONTROL.

(a) FEDERAL INFORMATION TECHNOLOGY.—The Director shall

perform the responsibilities set forth in this section in fulfilling

the responsibilities under section 3504(h) of title 44, United States

Code.

(b) USE OF INFORMATION TECHNOLOGY IN FEDERAL PROGRAMS.—The Director shall promote and be responsible for improving the acquisition, use, and disposal of information technology

by the Federal Government to improve the productivity, efficiency,

and effectiveness of Federal programs, including through dissemination of public information and the reduction of information collection

burdens on the public.

(c) USE OF BUDGET PROCESS.—The Director shall develop, as

part of the budget process, a process for analyzing, tracking, and

evaluating the risks and results of all major capital investments

made by an executive agency for information systems. The process

shall cover the life of each system and shall include explicit criteria

for analyzing the projected and actual costs, benefits, and risks

associated with the investments. At the same time that the President submits the budget for a fiscal year to Congress under section

1105(a) of title 31, United States Code, the Director shall submit

to Congress a report on the net program performance benefits

achieved as a result of major capital investments made by executive

Reports.

Public

information.

40 USC 1412.

40 USC 1411.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 681

agencies in information systems and how the benefits relate to

the accomplishment of the goals of the executive agencies.

(d) INFORMATION TECHNOLOGY STANDARDS.—The Director shall

oversee the development and implementation of standards and

guidelines pertaining to Federal computer systems by the Secretary

of Commerce through the National Institute of Standards and Technology under section 5131 and section 20 of the National Institute

of Standards and Technology Act (15 U.S.C. 278g–3).

(e) DESIGNATION OF EXECUTIVE AGENTS FOR ACQUISITIONS.—

The Director shall designate (as the Director considers appropriate)

one or more heads of executive agencies as executive agent for

Government-wide acquisitions of information technology.

(f) USE OF BEST PRACTICES IN ACQUISITIONS.—The Director

shall encourage the heads of the executive agencies to develop

and use the best practices in the acquisition of information

technology.

(g) ASSESSMENT OF OTHER MODELS FOR MANAGING INFORMATION TECHNOLOGY.—The Director shall assess, on a continuing

basis, the experiences of executive agencies, State and local governments, international organizations, and the private sector in managing information technology.

(h) COMPARISON OF AGENCY USES OF INFORMATION TECHNOLOGY.—The Director shall compare the performances of the

executive agencies in using information technology and shall

disseminate the comparisons to the heads of the executive agencies.

(i) TRAINING.—The Director shall monitor the development and

implementation of training in information resources management

for executive agency personnel.

(j) INFORMING CONGRESS.—The Director shall keep Congress

fully informed on the extent to which the executive agencies are

improving the performance of agency programs and the accomplishment of agency missions through the use of the best practices

in information resources management.

(k) PROCUREMENT POLICY AND ACQUISITIONS OF INFORMATION

TECHNOLOGY.—The Director shall coordinate the development and

review by the Administrator of the Office of Information and Regulatory Affairs of policy associated with Federal acquisition of

information technology with the Office of Federal Procurement Policy.

SEC. 5113. PERFORMANCE-BASED AND RESULTS-BASED MANAGEMENT.

(a) IN GENERAL.—The Director shall encourage the use of

performance-based and results-based management in fulfilling the

responsibilities assigned under section 3504(h), of title 44, United

States Code.

(b) EVALUATION OF AGENCY PROGRAMS AND INVESTMENTS.—

(1) REQUIREMENT.—The Director shall evaluate the

information resources management practices of the executive

agencies with respect to the performance and results of the

investments made by the executive agencies in information

technology.

(2) DIRECTION FOR EXECUTIVE AGENCY ACTION.—The Director shall issue to the head of each executive agency clear

and concise direction that the head of such agency shall—

(A) establish effective and efficient capital planning

processes for selecting, managing, and evaluating the

40 USC 1413.

110 STAT. 682 PUBLIC LAW 104–106—FEB. 10, 1996

results of all of its major investments in information systems;

(B) determine, before making an investment in a new

information system—

(i) whether the function to be supported by the

system should be performed by the private sector and,

if so, whether any component of the executive agency

performing that function should be converted from a

governmental organization to a private sector organization; or

(ii) whether the function should be performed by

the executive agency and, if so, whether the function

should be performed by a private sector source under

contract or by executive agency personnel;

(C) analyze the missions of the executive agency and,

based on the analysis, revise the executive agency’s mission-related processes and administrative processes, as

appropriate, before making significant investments in

information technology to be used in support of those missions; and

(D) ensure that the information security policies, procedures, and practices are adequate.

(3) GUIDANCE FOR MULTIAGENCY INVESTMENTS.—The direction issued under paragraph (2) shall include guidance for

undertaking efficiently and effectively interagency and Government-wide investments in information technology to improve

the accomplishment of missions that are common to the executive agencies.

(4) PERIODIC REVIEWS.—The Director shall implement

through the budget process periodic reviews of selected information resources management activities of the executive agencies

in order to ascertain the efficiency and effectiveness of information technology in improving the performance of the executive

agency and the accomplishment of the missions of the executive

agency.

(5) ENFORCEMENT OF ACCOUNTABILITY.—

(A) IN GENERAL.—The Director may take any authorized action that the Director considers appropriate,

including an action involving the budgetary process or

appropriations management process, to enforce accountability of the head of an executive agency for information

resources management and for the investments made by

the executive agency in information technology.

(B) SPECIFIC ACTIONS.—Actions taken by the Director

in the case of an executive agency may include—

(i) recommending a reduction or an increase in

any amount for information resources that the head

of the executive agency proposes for the budget submitted to Congress under section 1105(a) of title 31, United

States Code;

(ii) reducing or otherwise adjusting apportionments and reapportionments of appropriations for

information resources;

(iii) using other authorized administrative controls

over appropriations to restrict the availability of funds

for information resources; and

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 683

(iv) designating for the executive agency an execu- tive agent to contract with private sector sources for

the performance of information resources management

or the acquisition of information technology.

Subtitle C—Executive Agencies

SEC. 5121. RESPONSIBILITIES.

In fulfilling the responsibilities assigned under chapter 35 of title 44, United States Code, the head of each executive agency

shall comply with this subtitle with respect to the specific matters

covered by this subtitle.

SEC. 5122. CAPITAL PLANNING AND INVESTMENT CONTROL.

(a) DESIGN OF PROCESS.—In fulfilling the responsibilities assigned under section 3506(h) of title 44, United States Code,

the head of each executive agency shall design and implement

in the executive agency a process for maximizing the value and

assessing and managing the risks of the information technology

acquisitions of the executive agency. (b) CONTENT OF PROCESS.—The process of an executive agency shall—

(1) provide for the selection of information technology investments to be made by the executive agency, the management of such investments, and the evaluation of the results

of such investments;

(2) be integrated with the processes for making budget, financial, and program management decisions within the executive agency; (3) include minimum criteria to be applied in considering whether to undertake a particular investment in information

systems, including criteria related to the quantitatively

expressed projected net, risk-adjusted return on investment

and specific quantitative and qualitative criteria for comparing

and prioritizing alternative information systems investment

projects; (4) provide for identifying information systems investments

that would result in shared benefits or costs for other Federal

agencies or State or local governments; (5) provide for identifying for a proposed investment quantifiable measurements for determining the net benefits and

risks of the investment; and

(6) provide the means for senior management personnel

of the executive agency to obtain timely information regarding

the progress of an investment in an information system, including a system of milestones for measuring progress, on an

independently verifiable basis, in terms of cost, capability of

the system to meet specified requirements, timeliness, and

quality.

SEC. 5123. PERFORMANCE AND RESULTS-BASED MANAGEMENT.

In fulfilling the responsibilities under section 3506(h) of title

44, United States Code, the head of an executive agency shall— (1) establish goals for improving the efficiency and effectiveness of agency operations and, as appropriate, the delivery

of services to the public through the effective use of information

technology;

40 USC 1423.

40 USC 1422.

40 USC 1421.

110 STAT. 684 PUBLIC LAW 104–106—FEB. 10, 1996

(2) prepare an annual report, to be included in the executive

agency’s budget submission to Congress, on the progress in

achieving the goals;

(3) ensure that performance measurements are prescribed

for information technology used by or to be acquired for, the

executive agency and that the performance measurements

measure how well the information technology supports programs of the executive agency;

(4) where comparable processes and organizations in the

public or private sectors exist, quantitatively benchmark agency

process performance against such processes in terms of cost,

speed, productivity, and quality of outputs and outcomes;

(5) analyze the missions of the executive agency and, based

on the analysis, revise the executive agency’s mission-related

processes and administrative processes as appropriate before

making significant investments in information technology that

is to be used in support of the performance of those missions;

and

(6) ensure that the information security policies, procedures, and practices of the executive agency are adequate.

SEC. 5124. ACQUISITIONS OF INFORMATION TECHNOLOGY.

(a) IN GENERAL.—The authority of the head of an executive

agency to conduct an acquisition of information technology includes

the following authorities:

(1) To acquire information technology as authorized by

law.

(2) To enter into a contract that provides for multiagency

acquisitions of information technology in accordance with guidance issued by the Director.

(3) If the Director finds that it would be advantageous

for the Federal Government to do so, to enter into a multiagency

contract for procurement of commercial items of information

technology that requires each executive agency covered by the

contract, when procuring such items, either to procure the

items under that contract or to justify an alternative procurement of the items.

(b) FTS 2000 PROGRAM.—Notwithstanding any other provision

of this or any other law, the Administrator of General Services

shall continue to manage the FTS 2000 program, and to coordinate

the follow-on to that program, on behalf of and with the advice

of the heads of executive agencies.

SEC. 5125. AGENCY CHIEF INFORMATION OFFICER.

(a) DESIGNATION OF CHIEF INFORMATION OFFICERS.—Section

3506 of title 44, United States Code, is amended—

(1) in subsection (a)—

(A) in paragraph (2)(A), by striking out ‘‘senior official’’

and inserting in lieu thereof ‘‘Chief Information Officer’’;

(B) in paragraph (2)(B)—

(i) by striking out ‘‘senior officials’’ in the first

sentence and inserting in lieu thereof ‘‘Chief Information Officers’’;

(ii) by striking out ‘‘official’’ in the second sentence

and inserting in lieu thereof ‘‘Chief Information Officer’’; and

40 USC 1425.

40 USC 1424.

Reports.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 685

(iii) by striking out ‘‘officials’’ in the second sentence and inserting in lieu thereof ‘‘Chief Information

Officers’’; and

(C) in paragraphs (3) and (4), by striking out ‘‘senior

official’’ each place it appears and inserting in lieu thereof

‘‘Chief Information Officer’’; and

(2) in subsection (c)(1), by striking out ‘‘official’’ in the

matter preceding subparagraph (A) and inserting in lieu thereof

‘‘Chief Information Officer’’.

(b) GENERAL RESPONSIBILITIES.—The Chief Information Officer

of an executive agency shall be responsible for—

(1) providing advice and other assistance to the head of

the executive agency and other senior management personnel

of the executive agency to ensure that information technology

is acquired and information resources are managed for the

executive agency in a manner that implements the policies

and procedures of this division, consistent with chapter 35

of title 44, United States Code, and the priorities established

by the head of the executive agency;

(2) developing, maintaining, and facilitating the

implementation of a sound and integrated information technology architecture for the executive agency; and

(3) promoting the effective and efficient design and operation of all major information resources management processes

for the executive agency, including improvements to work processes of the executive agency.

(c) DUTIES AND QUALIFICATIONS.—The Chief Information Officer

of an agency that is listed in section 901(b) of title 31, United

States Code, shall—

(1) have information resources management duties as that

official’s primary duty;

(2) monitor the performance of information technology programs of the agency, evaluate the performance of those

programs on the basis of the applicable performance measurements, and advise the head of the agency regarding whether

to continue, modify, or terminate a program or project; and

(3) annually, as part of the strategic planning and performance evaluation process required (subject to section 1117 of

title 31, United States Code) under section 306 of title 5,

United States Code, and sections 1105(a)(29), 1115, 1116, 1117,

and 9703 of title 31, United States Code—

(A) assess the requirements established for agency

personnel regarding knowledge and skill in information

resources management and the adequacy of such requirements for facilitating the achievement of the performance

goals established for information resources management;

(B) assess the extent to which the positions and personnel at the executive level of the agency and the positions

and personnel at management level of the agency below

the executive level meet those requirements;

(C) in order to rectify any deficiency in meeting those

requirements, develop strategies and specific plans for hiring, training, and professional development; and

(D) report to the head of the agency on the progress

made in improving information resources management

capability.

Reports.

110 STAT. 686 PUBLIC LAW 104–106—FEB. 10, 1996

(d) INFORMATION TECHNOLOGY ARCHITECTURE DEFINED.—In

this section, the term ‘‘information technology architecture’’, with

respect to an executive agency, means an integrated framework

for evolving or maintaining existing information technology and

acquiring new information technology to achieve the agency’s strategic goals and information resources management goals.

(e) EXECUTIVE LEVEL IV.—Section 5315 of title 5, United States

Code, is amended by adding at the end the following:

‘‘Chief Information Officer, Department of Agriculture.

‘‘Chief Information Officer, Department of Commerce.

‘‘Chief Information Officer, Department of Defense (unless

the official designated as the Chief Information Officer of the

Department of Defense is an official listed under section 5312,

5313, or 5314 of this title).

‘‘Chief Information Officer, Department of Education.

‘‘Chief Information Officer, Department of Energy.

‘‘Chief Information Officer, Department of Health and

Human Services.

‘‘Chief Information Officer, Department of Housing and

Urban Development.

‘‘Chief Information Officer, Department of Interior.

‘‘Chief Information Officer, Department of Justice.

‘‘Chief Information Officer, Department of Labor.

‘‘Chief Information Officer, Department of State.

‘‘Chief Information Officer, Department of Transportation.

‘‘Chief Information Officer, Department of Treasury.

‘‘Chief Information Officer, Department of Veterans Affairs.

‘‘Chief Information Officer, Environmental Protection

Agency.

‘‘Chief Information Officer, National Aeronautics and Space

Administration.

‘‘Chief Information Officer, Agency for International Development.

‘‘Chief Information Officer, Federal Emergency Management Agency.

‘‘Chief Information Officer, General Services Administration.

‘‘Chief Information Officer, National Science Foundation.

‘‘Chief Information Officer, Nuclear Regulatory Agency.

‘‘Chief Information Officer, Office of Personnel Management.

‘‘Chief Information Officer, Small Business Administration.’’.

SEC. 5126. ACCOUNTABILITY.

The head of each executive agency, in consultation with the

Chief Information Officer and the Chief Financial Officer of that

executive agency (or, in the case of an executive agency without

a Chief Financial Officer, any comparable official), shall establish

policies and procedures that—

(1) ensure that the accounting, financial, and asset management systems and other information systems of the executive

agency are designed, developed, maintained, and used effectively to provide financial or program performance data for

financial statements of the executive agency;

40 USC 1426.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 687

(2) ensure that financial and related program performance

data are provided on a reliable, consistent, and timely basis

to executive agency financial management systems; and (3) ensure that financial statements support—

(A) assessments and revisions of mission-related processes and administrative processes of the executive agency;

and

(B) performance measurement of the performance in

the case of investments made by the agency in information

systems.

SEC. 5127. SIGNIFICANT DEVIATIONS.

The head of an executive agency shall identify in the strategic

information resources management plan required under section

3506(b)(2) of title 44, United States Code, any major information

technology acquisition program, or any phase or increment of such

a program, that has significantly deviated from the cost, performance, or schedule goals established for the program.

SEC. 5128. INTERAGENCY SUPPORT.

Funds available for an executive agency for oversight, acquisition, and procurement of information technology may be used by

the head of the executive agency to support jointly with other

executive agencies the activities of interagency groups that are

established to advise the Director in carrying out the Director’s

responsibilities under this title. The use of such funds for that

purpose shall be subject to such requirements and limitations on

uses and amounts as the Director may prescribe. The Director

shall prescribe any such requirements and limitations during the

Director’s review of the executive agency’s proposed budget submitted to the Director by the head of the executive agency for purposes

of section 1105 of title 31, United States Code.

Subtitle D—Other Responsibilities

SEC. 5131. RESPONSIBILITIES REGARDING EFFICIENCY, SECURITY,

AND PRIVACY OF FEDERAL COMPUTER SYSTEMS.

(a) STANDARDS AND GUIDELINES.—

(1) AUTHORITY.—The Secretary of Commerce shall, on the

basis of standards and guidelines developed by the National

Institute of Standards and Technology pursuant to paragraphs

(2) and (3) of section 20(a) of the National Institute of Standards

and Technology Act (15 U.S.C. 278g–3(a)), promulgate standards and guidelines pertaining to Federal computer systems.

The Secretary shall make such standards compulsory and binding to the extent to which the Secretary determines necessary

to improve the efficiency of operation or security and privacy

of Federal computer systems. The President may disapprove

or modify such standards and guidelines if the President determines such action to be in the public interest. The President’s

authority to disapprove or modify such standards and guidelines

may not be delegated. Notice of such disapproval or modification

shall be published promptly in the Federal Register. Upon

receiving notice of such disapproval or modification, the Secretary of Commerce shall immediately rescind or modify such

standards or guidelines as directed by the President.

Federal Register,

publication.

40 USC 1441.

40 USC 1428.

40 USC 1427.

110 STAT. 688 PUBLIC LAW 104–106—FEB. 10, 1996

(2) EXERCISE OF AUTHORITY.—The authority conferred upon

the Secretary of Commerce by this section shall be exercised

subject to direction by the President and in coordination with

the Director to ensure fiscal and policy consistency.

(b) APPLICATION OF MORE STRINGENT STANDARDS.—The head

of a Federal agency may employ standards for the cost-effective

security and privacy of sensitive information in a Federal computer

system within or under the supervision of that agency that are

more stringent than the standards promulgated by the Secretary

of Commerce under this section, if such standards contain, at a

minimum, the provisions of those applicable standards made

compulsory and binding by the Secretary of Commerce.

(c) WAIVER OF STANDARDS.—The standards determined under

subsection (a) to be compulsory and binding may be waived by

the Secretary of Commerce in writing upon a determination that

compliance would adversely affect the accomplishment of the mission of an operator of a Federal computer system, or cause a

major adverse financial impact on the operator which is not offset

by Government-wide savings. The Secretary may delegate to the

head of one or more Federal agencies authority to waive such

standards to the extent to which the Secretary determines such

action to be necessary and desirable to allow for timely and effective

implementation of Federal computer system standards. The head

of such agency may redelegate such authority only to a Chief

Information Officer designated pursuant to section 3506 of title

44, United States Code. Notice of each such waiver and delegation

shall be transmitted promptly to Congress and shall be published

promptly in the Federal Register.

(d) DEFINITIONS.—In this section, the terms ‘‘Federal computer

system’’ and ‘‘operator of a Federal computer system’’ have the

meanings given such terms in section 20(d) of the National Institute

of Standards and Technology Act (15 U.S.C. 278g–3(d)).

(e) TECHNICAL AMENDMENTS.—Chapter 35 of title 44, United

States Code, is amended—

(1) in section 3504(g)—

(A) in paragraph (2), by striking out ‘‘the Computer

Security Act of 1987 (40 U.S.C. 759 note)’’ and inserting

in lieu thereof ‘‘sections 20 and 21 of the National Institute

of Standards and Technology Act (15 U.S.C. 278g–3 and

278g–4), section 5131 of the Information Technology

Management Reform Act of 1996, and sections 5 and 6

of the Computer Security Act of 1987 (40 U.S.C. 759 note)’’;

and

(B) in paragraph (3), by striking out ‘‘the Computer

Security Act of 1987 (40 U.S.C. 759 note)’’ and inserting

in lieu thereof ‘‘the standards and guidelines promulgated

under section 5131 of the Information Technology Management Reform Act of 1996 and sections 5 and 6 of the

Computer Security Act of 1987 (40 U.S.C. 759 note)’’; and

(2) in section 3518(d), by striking out ‘‘Public Law 89–

306 on the Administrator of the General Services Administration, the Secretary of Commerce, or’’ and inserting in lieu

thereof ‘‘section 5131 of the Information Technology Management Reform Act of 1996 and the Computer Security Act of

1987 (40 U.S.C. 759 note) on the Secretary of Commerce or’’.

Federal Register,

publication.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 689

SEC. 5132. SENSE OF CONGRESS.

It is the sense of Congress that, during the next five-year

period beginning with 1996, executive agencies should achieve each

year at least a 5 percent decrease in the cost (in constant fiscal

year 1996 dollars) that is incurred by the agency for operating

and maintaining information technology, and each year a 5 percent

increase in the efficiency of the agency operations, by reason of

improvements in information resources management by the agency.

Subtitle E—National Security Systems

SEC. 5141. APPLICABILITY TO NATIONAL SECURITY SYSTEMS.

(a) IN GENERAL.—Except as provided in subsection (b), this

title does not apply to national security systems.

(b) EXCEPTIONS.—

(1) IN GENERAL.—Sections 5123, 5125, and 5126 apply to

national security systems.

(2) CAPITAL PLANNING AND INVESTMENT CONTROL.—The

heads of executive agencies shall apply sections 5112 and 5122

to national security systems to the extent practicable.

(3) PERFORMANCE AND RESULTS OF INFORMATION TECHNOLOGY INVESTMENTS.—(A) Subject to subparagraph (B), the

heads of executive agencies shall apply section 5113 to national

security systems to the extent practicable.

(B) National security systems shall be subject to section

5113(b)(5) except for subparagraph (B)(iv) of that section.

SEC. 5142. NATIONAL SECURITY SYSTEM DEFINED.

(a) DEFINITION.—In this subtitle, the term ‘‘national security

system’’ means any telecommunications or information system operated by the United States Government, the function, operation,

or use of which—

(1) involves intelligence activities;

(2) involves cryptologic activities related to national

security; (3) involves command and control of military forces;

(4) involves equipment that is an integral part of a weapon

or weapons system; or (5) subject to subsection (b), is critical to the direct fulfillment of military or intelligence missions.

(b) LIMITATION.—Subsection (a)(5) does not include a system

that is to be used for routine administrative and business applications (including payroll, finance, logistics, and personnel management applications).

TITLE LII—PROCESS FOR ACQUISITIONS OF INFORMATION TECHNOLOGY

SEC. 5201. PROCUREMENT PROCEDURES.

The Federal Acquisition Regulatory Council shall ensure that,

to the maximum extent practicable, the process for acquisition

of information technology is a simplified, clear, and understandable

process that specifically addresses the management of risk,

40 USC 1461.

40 USC 1452.

40 USC 1451.

40 USC 1442.

110 STAT. 690 PUBLIC LAW 104–106—FEB. 10, 1996

incremental acquisitions, and the need to incorporate commercial

information technology in a timely manner.

SEC. 5202. INCREMENTAL ACQUISITION OF INFORMATION TECHNOLOGY.

(a) POLICY.—The Office of Federal Procurement Policy Act (41

U.S.C. 401 et seq.) is amended by adding at the end the following

new section:

‘‘SEC. 35. MODULAR CONTRACTING FOR INFORMATION TECHNOLOGY.

‘‘(a) IN GENERAL.—The head of an executive agency should,

to the maximum extent practicable, use modular contracting for

an acquisition of a major system of information technology.

‘‘(b) MODULAR CONTRACTING DESCRIBED.—Under modular

contracting, an executive agency’s need for a system is satisfied

in successive acquisitions of interoperable increments. Each increment complies with common or commercially accepted standards

applicable to information technology so that the increments are

compatible with other increments of information technology

comprising the system.

‘‘(c) IMPLEMENTATION.—The Federal Acquisition Regulation

shall provide that—

‘‘(1) under the modular contracting process, an acquisition

of a major system of information technology may be divided

into several smaller acquisition increments that—

‘‘(A) are easier to manage individually than would be

one comprehensive acquisition;

‘‘(B) address complex information technology objectives

incrementally in order to enhance the likelihood of achieving workable solutions for attainment of those objectives;

‘‘(C) provide for delivery, implementation, and testing

of workable systems or solutions in discrete increments

each of which comprises a system or solution that is not

dependent on any subsequent increment in order to perform

its principal functions; and

‘‘(D) provide an opportunity for subsequent increments

of the acquisition to take advantage of any evolution in

technology or needs that occur during conduct of the earlier

increments;

‘‘(2) a contract for an increment of an information technology acquisition should, to the maximum extent practicable,

be awarded within 180 days after the date on which the solicitation is issued and, if the contract for that increment cannot

be awarded within such period, the increment should be considered for cancellation; and

‘‘(3) the information technology provided for in a contract

for acquisition of information technology should be delivered

within 18 months after the date on which the solicitation resulting in award of the contract was issued.’’.

(b) CLERICAL AMENDMENT.—The table of contents in section

1(b) of such Act is amended by inserting after the item relating

to section 34 the following new item:

‘‘Sec. 35. Modular contracting for information technology.’’.

41 USC 434.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 691

TITLE LIII—INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAMS

Subtitle A—Conduct of Pilot Programs

SEC. 5301. AUTHORITY TO CONDUCT PILOT PROGRAMS.

(a) IN GENERAL.— (1) PURPOSE.—The Administrator for Federal Procurement

Policy (hereinafter referred to as the ‘‘Administrator’’), in consultation with the Administrator for the Office of Information

and Regulatory Affairs, may conduct pilot programs in order

to test alternative approaches for acquisition of information

technology by executive agencies. (2) MULTIAGENCY, MULTI-ACTIVITY CONDUCT OF EACH PRO- GRAM.—Except as otherwise provided in this title, each pilot

program conducted under this title shall be carried out in

not more than two procuring activities in each of the executive

agencies that are designated by the Administrator in accordance

with this title to carry out the pilot program. The head of

each designated executive agency shall, with the approval of

the Administrator, select the procuring activities of the executive agency that are to participate in the test and shall designate a procurement testing official who shall be responsible

for the conduct and evaluation of the pilot program within

the executive agency.

(b) LIMITATIONS.— (1) NUMBER.—Not more than two pilot programs may be

conducted under the authority of this title, including one pilot

program each pursuant to the requirements of sections 5311

and 5312.

(2) AMOUNT.—The total amount obligated for contracts

entered into under the pilot programs conducted under the

authority of this title may not exceed $750,000,000. The

Administrator shall monitor such contracts and ensure that

contracts are not entered into in violation of the limitation

in the preceding sentence.

(c) PERIOD OF PROGRAMS.— (1) IN GENERAL.—Subject to paragraph (2), any pilot program may be carried out under this title for the period, not

in excess of five years, that is determined by the Administrator

as being sufficient to establish reliable results. (2) CONTINUING VALIDITY OF CONTRACTS.—A contract

entered into under the pilot program before the expiration

of that program shall remain in effect according to the terms

of the contract after the expiration of the program.

SEC. 5302. EVALUATION CRITERIA AND PLANS.

(a) MEASURABLE TEST CRITERIA.—The head of each executive

agency conducting a pilot program under section 5301 shall establish, to the maximum extent practicable, measurable criteria for

evaluating the effects of the procedures or techniques to be tested

under the program.

(b) TEST PLAN.—Before a pilot program may be conducted under

section 5301, the Administrator shall submit to Congress a detailed

40 USC 1472.

40 USC 1471.

110 STAT. 692 PUBLIC LAW 104–106—FEB. 10, 1996

test plan for the program, including a detailed description of the

procedures to be used and a list of any regulations that are to

be waived.

SEC. 5303. REPORT.

(a) REQUIREMENT.—Not later than 180 days after the completion of a pilot program under this title, the Administrator shall— (1) submit to the Director a report on the results and

findings under the program; and (2) provide a copy of the report to Congress. (b) CONTENT.—The report shall include the following: (1) A detailed description of the results of the program,

as measured by the criteria established for the program. (2) A discussion of any legislation that the Administrator

recommends, or changes in regulations that the Administrator

considers necessary, in order to improve overall information

resources management within the Federal Government.

SEC. 5304. RECOMMENDED LEGISLATION.

If the Director determines that the results and findings under

a pilot program under this title indicate that legislation is necessary

or desirable in order to improve the process for acquisition of

information technology, the Director shall transmit the Director’s

recommendations for such legislation to Congress.

SEC. 5305. RULE OF CONSTRUCTION.

Nothing in this title shall be construed as authorizing the

appropriation or obligation of funds for the pilot programs authorized under this title.

Subtitle B—Specific Pilot Programs

SEC. 5311. SHARE-IN-SAVINGS PILOT PROGRAM.

(a) REQUIREMENT.—The Administrator may authorize the heads

of two executive agencies to carry out a pilot program to test

the feasibility of— (1) contracting on a competitive basis with a private sector

source to provide the Federal Government with an information

technology solution for improving mission-related or administrative processes of the Federal Government; and

(2) paying the private sector source an amount equal to

a portion of the savings derived by the Federal Government

from any improvements in mission-related processes and

administrative processes that result from implementation of

the solution.

(b) LIMITATIONS.—The head of an executive agency authorized

to carry out the pilot program may, under the pilot program, carry

out one project and enter into not more than five contracts for

the project.

(c) SELECTION OF PROJECTS.—The projects shall be selected

by the Administrator, in consultation with the Administrator for

the Office of Information and Regulatory Affairs.

SEC. 5312. SOLUTIONS-BASED CONTRACTING PILOT PROGRAM.

(a) IN GENERAL.—The Administrator may authorize the heads

of any of the executive agencies, in accordance with subsection

(d)(2), to carry out a pilot program to test the feasibility of using

40 USC 1492.

40 USC 1491.

40 USC 1475.

40 USC 1474.

40 USC 1473.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 693

solutions-based contracting for acquisition of information technology. (b) SOLUTIONS-BASED CONTRACTING DESCRIBED.—For purposes

of this section, solutions-based contracting is an acquisition method

under which the acquisition objectives are defined by the Federal

Government user of the technology to be acquired, a streamlined

contractor selection process is used, and industry sources are

allowed to provide solutions that attain the objectives effectively.

(c) PROCESS REQUIREMENTS.—The Administrator shall require

use of a process with the following aspects for acquisitions under

the pilot program:

(1) ACQUISITION PLAN EMPHASIZING DESIRED RESULT.—

Preparation of an acquisition plan that defines the functional

requirements of the intended users of the information technology to be acquired, identifies the operational improvements

to be achieved, and defines the performance measurements

to be applied in determining whether the information technology acquired satisfies the defined requirements and attains

the identified results.

(2) RESULTS-ORIENTED STATEMENT OF WORK.—Use of a

statement of work that is limited to an expression of the end

results or performance capabilities desired under the acquisition plan.

(3) SMALL ACQUISITION ORGANIZATION.—Assembly of a

small acquisition organization consisting of the following:

(A) An acquisition management team, the members

of which are to be evaluated and rewarded under the

pilot program for contributions toward attainment of the

desired results identified in the acquisition plan.

(B) A small source selection team composed of representatives of the specific mission or administrative area

to be supported by the information technology to be

acquired, together with a contracting officer and persons

with relevant expertise.

(4) USE OF SOURCE SELECTION FACTORS EMPHASIZING

SOURCE QUALIFICATIONS AND COSTS.—Use of source selection

factors that emphasize—

(A) the qualifications of the offeror, including such

factors as personnel skills, previous experience in providing

other private or public sector organizations with solutions

for attaining objectives similar to the objectives of the

acquisition, past contract performance, qualifications of the

proposed program manager, and the proposed management

plan; and

(B) the costs likely to be associated with the conceptual

approach proposed by the offeror.

(5) OPEN COMMUNICATIONS WITH CONTRACTOR COMMUNITY.—Open availability of the following information to potential offerors:

(A) The agency mission to be served by the acquisition.

(B) The functional process to be performed by use

of information technology.

(C) The process improvements to be attained.

(6) SIMPLE SOLICITATION.—Use of a simple solicitation that

sets forth only the functional work description, the source selection factors to be used in accordance with paragraph (4), the

required terms and conditions, instructions regarding submisVerDate 07-FEB-96 03:34 Mar 05, 1996 Jkt 029139 PO 00106 Frm 00509 Fmt 6580 Sfmt 6581 PUBL106.104 apps06
110 STAT. 694 PUBLIC LAW 104–106—FEB. 10, 1996

sion of offers, and the estimate of the Federal Government’s

budget for the desired work.

(7) SIMPLE PROPOSALS.—Submission of oral presentations

and written proposals that are limited in size and scope and

contain information on—

(A) the offeror’s qualifications to perform the desired

work;

(B) past contract performance;

(C) the proposed conceptual approach; and

(D) the costs likely to be associated with the proposed

conceptual approach.

(8) SIMPLE EVALUATION.—Use of a simplified evaluation

process, to be completed within 45 days after receipt of proposals, which consists of the following:

(A) Identification of the most qualified offerors that

are within the competitive range.

(B) Issuance of invitations for at least three and not

more than five of the identified offerors to make oral

presentations to, and engage in discussions with, the

evaluating personnel regarding, for each offeror—

(i) the qualifications of the offeror, including how

the qualifications of the offeror relate to the approach

proposed to be taken by the offeror in the acquisition;

and

(ii) the costs likely to be associated with the

approach.

(C) Evaluation of the qualifications of the identified

offerors and the costs likely to be associated with the

offerors’ proposals on the basis of submissions required

under the process and any oral presentations made by,

and any discussions with, the offerors.

(9) SELECTION OF MOST QUALIFIED OFFEROR.—A selection

process consisting of the following:

(A) Identification of the most qualified source, and

ranking of alternative sources, primarily on the basis of

the oral proposals, presentations, and discussions, and written proposals submitted in accordance with paragraph (7).

(B) Conduct for 30 to 60 days of a program definition

phase (funded, in the case of the source ultimately awarded

the contract, by the Federal Government)—

(i) during which the selected source, in consultation with one or more intended users, develops a

conceptual system design and technical approach,

defines logical phases for the project, and estimates

the total cost and the cost for each phase; and

(ii) after which a contract for performance of the

work may be awarded to that source on the basis

of cost, the responsiveness, reasonableness, and quality

of the proposed performance, and a sharing of risk

and benefits between the source and the Government.

(C) Conduct of as many successive program definition

phases with alternative sources (in the order ranked) as

is necessary in order to award a contract in accordance

with subparagraph (B).

(10) SYSTEM IMPLEMENTATION PHASING.—System

implementation to be executed in phases that are tailored to

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 695

the solution, with various contract arrangements being used,

as appropriate, for various phases and activities. (11) MUTUAL AUTHORITY TO TERMINATE.—Authority for the Federal Government or the contractor to terminate the contract

without penalty at the end of any phase defined for the project. (12) TIME MANAGEMENT DISCIPLINE.—Application of a

standard for awarding a contract within 105 to 120 days after

issuance of the solicitation.

(d) PILOT PROGRAM DESIGN.— (1) JOINT PUBLIC-PRIVATE WORKING GROUP.—The Administrator, in consultation with the Administrator for the Office

of Information and Regulatory Affairs, shall establish a joint

working group of Federal Government personnel and representatives of the information technology industry to design a plan

for conduct of any pilot program carried out under this section. (2) CONTENT OF PLAN.—The plan shall provide for use

of solutions-based contracting in the Department of Defense

and not more than two other executive agencies for a total

of—

(A) not more than 10 projects, each of which has an estimated cost of between $25,000,000 and $100,000,000;

and

(B) not more than 10 projects, each of which has an estimated cost of between $1,000,000 and $5,000,000, to

be set aside for small business concerns.

(3) COMPLEXITY OF PROJECTS.—(A) Subject to subparagraph (C), each acquisition project under the pilot program shall

be sufficiently complex to provide for meaningful evaluation

of the use of solutions-based contracting for acquisition of

information technology for executive agencies. (B) In order for an acquisition project to satisfy the require- ment in subparagraph (A), the solution for attainment of the

executive agency’s objectives under the project should not be

obvious, but rather shall involve a need for some innovative

development and systems integration. (C) An acquisition project should not be so extensive or lengthy as to result in undue delay in the evaluation of the

use of solutions-based contracting.

(e) MONITORING BY GAO.—The Comptroller General of the

United States shall—

(1) monitor the conduct, and review the results, of acquisitions under the pilot program; and (2) submit to Congress periodic reports containing the views of the Comptroller General on the activities, results, and findings under the pilot program.

TITLE LIV—ADDITIONAL INFORMATION

RESOURCES MANAGEMENT MATTERS

SEC. 5401. ON-LINE MULTIPLE AWARD SCHEDULE CONTRACTING.

(a) AUTOMATION OF MULTIPLE AWARD SCHEDULE CONTRACT- ING.—In order to provide for the economic and efficient procurement

of information technology and other commercial items, the Administrator of General Services shall provide through the Federal Acquisition Computer Network (in this section referred to as ‘‘FACNET’’),

not later than January 1, 1998, Government-wide on-line computer

40 USC 1501.

Reports.

110 STAT. 696 PUBLIC LAW 104–106—FEB. 10, 1996

access to information on products and services that are available

for ordering under the multiple award schedules. If the Administrator determines it is not practicable to provide such access through

FACNET, the Administrator shall provide such access through

another automated system that has the capability to perform the

functions listed in subsection (b)(1) and meets the requirement

of subsection (b)(2).

(b) ADDITIONAL FACNET FUNCTIONS.—(1) In addition to the

functions specified in section 30(b) of the Office of Federal Procurement Policy Act (41 U.S.C. 426(b)), the FACNET architecture shall

have the capability to perform the following functions:

(A) Provide basic information on prices, features, and

performance of all products and services available for ordering

through the multiple award schedules.

(B) Provide for updating that information to reflect changes

in prices, features, and performance as soon as information

on the changes becomes available.

(C) Enable users to make on-line computer comparisons

of the prices, features, and performance of similar products

and services offered by various vendors.

(2) The FACNET architecture shall be used to place orders

under the multiple award schedules in a fiscal year for an amount

equal to at least 60 percent of the total amount spent for all

orders under the multiple award schedules in that fiscal year.

(c) STREAMLINED PROCEDURES.—

(1) PILOT PROGRAM.—Upon certification by the Administrator of General Services that the FACNET architecture meets

the requirements of subsection (b)(1) and was used as required

by subsection (b)(2) in the fiscal year preceding the fiscal year

in which the certification is made, the Administrator for Federal

Procurement Policy may establish a pilot program to test

streamlined procedures for the procurement of information technology products and services available for ordering through

the multiple award schedules.

(2) APPLICABILITY TO MULTIPLE AWARD SCHEDULE CONTRACTS.—Except as provided in paragraph (4), the pilot program

shall be applicable to all multiple award schedule contracts

for the purchase of information technology and shall test the

following procedures:

(A) A procedure under which negotiation of the terms

and conditions for a covered multiple award schedule contract is limited to terms and conditions other than price.

(B) A procedure under which the vendor establishes

the prices under a covered multiple award schedule contract and may adjust those prices at any time in the

discretion of the vendor.

(C) A procedure under which a covered multiple award

schedule contract is awarded to any responsible offeror

that—

(i) has a suitable record of past performance, which

may include past performance on multiple award

schedule contracts;

(ii) agrees to terms and conditions that the

Administrator determines as being required by law

or as being appropriate for the purchase of commercial

items; and

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 697

(iii) agrees to establish and update prices, features,

and performance and to accept orders electronically

through the automated system established pursuant

to subsection (a).

(3) COMPTROLLER GENERAL REVIEW AND REPORT.—(A) Not

later than three years after the date on which the pilot program

is established, the Comptroller General of the United States

shall review the pilot program and report to the Congress

on the results of the pilot program.

(B) The report shall include the following:

(i) An evaluation of the extent to which there is competition for the orders placed under the pilot program.

(ii) The effect that the streamlined procedures under

the pilot program have on prices charged under multiple

award schedule contracts.

(iii) The effect that such procedures have on paperwork

requirements for multiple award schedule contracts and

orders.

(iv) The impact of the pilot program on small

businesses and socially and economically disadvantaged

small businesses.

(4) WITHDRAWAL OF SCHEDULE OR PORTION OF SCHEDULE

FROM PILOT PROGRAM.—The Administrator may withdraw a

multiple award schedule or portion of a schedule from the

pilot program if the Administrator determines that (A) price

competition is not available under such schedule or portion

thereof, or (B) the cost to the Government for that schedule

or portion thereof for the previous year was higher than it

would have been if the contracts for such schedule or portion

thereof had been awarded using procedures that would apply

if the pilot program were not in effect. The Administrator

shall notify Congress at least 30 days before the date on which

the Administrator withdraws a schedule or portion thereof

under this paragraph. The authority under this paragraph may

not be delegated.

(5) TERMINATION OF PILOT PROGRAM.—Unless reauthorized

by law, the authority of the Administrator to award contracts

under the pilot program shall expire four years after the date

on which the pilot program is established. Contracts entered

into before the authority expires shall remain in effect in accordance with their terms notwithstanding the expiration of the

authority to award new contracts under the pilot program.

(d) DEFINITION.—In this section, the term ‘‘FACNET’’ means

the Federal Acquisition Computer Network established under section 30 of the Office of Federal Procurement Policy Act (41 U.S.C.

426).

SEC. 5402. IDENTIFICATION OF EXCESS AND SURPLUS COMPUTER

EQUIPMENT.

Not later than six months after the date of the enactment

of this Act, the head of an executive agency shall inventory all

computer equipment under the control of that official. After completion of the inventory, the head of the executive agency shall maintain, in accordance with title II of the Federal Property and

Administrative Services Act of 1949 (40 U.S.C. 481 et seq.), an

inventory of any such equipment that is excess or surplus property.

40 USC 1502.

Notification.

110 STAT. 698 PUBLIC LAW 104–106—FEB. 10, 1996

SEC. 5403. ACCESS OF CERTAIN INFORMATION IN INFORMATION SYSTEMS TO THE DIRECTORY ESTABLISHED UNDER SECTION

4101 OF TITLE 44, UNITED STATES CODE.

Notwithstanding any other provision of this division, if in

designing an information technology system pursuant to this division, the head of an executive agency determines that a purpose

of the system is to disseminate information to the public, then

the head of such executive agency shall reasonably ensure that

an index of information disseminated by such system is included

in the directory created pursuant to section 4101 of title 44, United

States Code. Nothing in this section authorizes the dissemination

of information to the public unless otherwise authorized.

TITLE LV—PROCUREMENT PROTEST

AUTHORITY OF THE COMPTROLLER

GENERAL

SEC. 5501. PERIOD FOR PROCESSING PROTESTS.

Title 31, United States Code, is amended as follows:

(1) Section 3553(b)(2)(A) is amended by striking out ‘‘35’’

and inserting in lieu thereof ‘‘30’’.

(2) Section 3554 is amended—

(A) in subsection (a)(1), by striking out ‘‘125’’ and

inserting in lieu thereof ‘‘100’’; and

(B) in subsection (e)—

(i) in paragraph (1), by striking out ‘‘Government

Operations’’ and inserting in lieu thereof ‘‘Government

Reform and Oversight’’; and

(ii) in paragraph (2), by striking out ‘‘125’’ and

inserting in lieu thereof ‘‘100’’.

SEC. 5502. AVAILABILITY OF FUNDS FOLLOWING GAO RESOLUTION

OF CHALLENGE TO CONTRACTING ACTION.

(a) IN GENERAL.—Section 1558 of title 31, United States Code,

is amended—

(1) in the first sentence of subsection (a)—

(A) by inserting ‘‘or other action referred to in subsection (b)’’ after ‘‘protest’’ the first place it appears;

(B) by striking out ‘‘90 working days’’ and inserting

in lieu thereof ‘‘100 days’’; and

(C) by inserting ‘‘or other action’’ after ‘‘protest’’ the

second place it appears; and

(2) by striking out subsection (b) and inserting in lieu

thereof the following:

‘‘(b) Subsection (a) applies with respect to—

‘‘(1) any protest filed under subchapter V of chapter 35

of this title; or

‘‘(2) an action commenced under administrative procedures

or for a judicial remedy if—

‘‘(A) the action involves a challenge to—

‘‘(i) a solicitation for a contract;

‘‘(ii) a proposed award of a contract;

‘‘(iii) an award of a contract; or

40 USC 1503.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 699

‘‘(iv) the eligibility of an offeror or potential offeror

for a contract or of the contractor awarded the contract;

and

‘‘(B) commencement of the action delays or prevents

an executive agency from making an award of a contract

or proceeding with a procurement.’’.

(b) CONFORMING AMENDMENT.—The heading of such section

is amended to read as follows:

‘‘§ 1558. Availability of funds following resolution of a formal

protest or other challenge’’.

(c) CLERICAL AMENDMENT.—The item relating to such section

in the table of sections at the beginning of chapter 15 of title

31, United States Code, is amended to read as follows:

‘‘1558. Availability of funds following resolution of a formal protest or other

challenge.’’.

TITLE LVI—CONFORMING AND

CLERICAL AMENDMENTS

SEC. 5601. AMENDMENTS TO TITLE 10, UNITED STATES CODE.

(a) PROTEST FILE.—Section 2305(e) is amended by striking out paragraph (3). (b) MULTIYEAR CONTRACTS.—Section 2306b of such title is

amended—

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

(2) by redesignating subsection (l) as subsection (k). (c) LAW INAPPLICABLE TO PROCUREMENT OF INFORMATION TECH- NOLOGY.—Section 2315 of title 10, United States Code, is amended

by striking out ‘‘Section 111’’ and all that follows through ‘‘use

of equipment or services if,’’ and inserting in lieu thereof the following: ‘‘For the purposes of the Information Technology Management

Reform Act of 1996, the term ‘national security systems’ means

those telecommunications and information systems operated by the

Department of Defense, the functions, operation or use of which’’.

SEC. 5602. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

(a) REFERENCES TO BROOKS AUTOMATIC DATA PROCESSING

ACT.—Section 612 of title 28, United States Code, is amended—

(1) in subsection (f), by striking out ‘‘section 111 of the

Federal Property and Administrative Services Act of 1949 (40

U.S.C. 759)’’ and inserting in lieu thereof ‘‘the provisions of

law, policies, and regulations applicable to executive agencies

under the Information Technology Management Reform Act

of 1996’’;

(2) in subsection (g), by striking out ‘‘sections 111 and

201 of the Federal Property and Administrative Services Act

of 1949 (40 U.S.C. 481 and 759)’’ and inserting in lieu thereof

‘‘section 201 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481)’’;

(3) by striking out subsection (l); and

(4) by redesignating subsection (m) as subsection (l).

(b) REFERENCES TO AUTOMATIC DATA PROCESSING.—Section 612

of title 28, United States Code, is further amended—

(1) in the heading, by striking out the second word and

inserting in lieu thereof ‘‘Information Technology’’;

110 STAT. 700 PUBLIC LAW 104–106—FEB. 10, 1996

(2) in subsection (a), by striking out ‘‘Judiciary Automation

Fund’’ and inserting in lieu thereof ‘‘Judiciary Information Technology Fund’’; and

(3) by striking out ‘‘automatic data processing’’ and inserting in lieu thereof ‘‘information technology’’ each place it

appears in subsections (a), (b), (c)(2), (e), (f), and (h)(1).

SEC. 5603. AMENDMENT TO TITLE 31, UNITED STATES CODE.

Section 3552 of title 31, United States Code, is amended by

striking out the second sentence.

SEC. 5604. AMENDMENTS TO TITLE 38, UNITED STATES CODE.

Section 310 of title 38, United States Code, is amended to

read as follows:

‘‘§ 310. Chief Information Officer

‘‘(a) The Chief Information Officer for the Department is designated pursuant to section 3506(a)(2) of title 44.

‘‘(b) The Chief Information Officer performs the duties provided

for chief information officers of executive agencies under chapter

35 of title 44 and the Information Technology Management Reform

Act of 1996.’’.

SEC. 5605. PROVISIONS OF TITLE 44, UNITED STATES CODE, RELATING

TO PAPERWORK REDUCTION.

(a) DEFINITION.—Section 3502 of title 44, United States Code,

is amended by striking out paragraph (9) and inserting in lieu

thereof the following:

‘‘(9) the term ‘information technology’ has the meaning

given that term in section 5002 of the Information Technology

Management Reform Act of 1996 but does not include national

security systems as defined in section 5142 of that Act;’’.

(b) DEVELOPMENT OF STANDARDS AND GUIDELINES BY NATIONAL

INSTITUTE OF STANDARDS AND TECHNOLOGY.—Section 3504(h)(1)(B)

of such title is amended by striking out ‘‘section 111(d) of the

Federal Property and Administrative Services Act of 1949 (40 U.S.C.

759(d))’’ and inserting in lieu thereof ‘‘section 5131 of the Information Technology Management Reform Act of 1996’’.

(c) COMPLIANCE WITH DIRECTIVES.—Section 3504(h)(2) of such

title is amended by striking out ‘‘sections 110 and 111 of the

Federal Property and Administrative Services Act of 1949 (40 U.S.C.

757 and 759)’’ and inserting in lieu thereof ‘‘the Information Technology Management Reform Act of 1996 and directives issued under

section 110 of the Federal Property and Administrative Services

Act of 1949 (40 U.S.C. 757)’’.

(d) COLLECTION OF INFORMATION.—Section 3507(j)(2) of such

title is amended by striking out ‘‘90 days’’ in the second sentence

and inserting in lieu thereof ‘‘180 days’’.

SEC. 5606. AMENDMENT TO TITLE 49, UNITED STATES CODE.

Section 40112(a) of title 49, United States Code, is amended

by striking out ‘‘or a contract to purchase property to which section

111 of the Federal Property and Administrative Services Act of

1949 (40 U.S.C. 759) applies’’.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 701

SEC. 5607. OTHER LAWS.

(a) NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

ACT.—Section 20 of the National Institute of Standards and Technology Act (15 U.S.C. 278g–3) is amended— (1) in subsection (a)—

(A) by striking out ‘‘section 3502(2) of title 44’’ each place it appears in paragraphs (2) and (3)(A) and inserting

in lieu thereof ‘‘section 3502(9) of title 44’’; and

(B) in paragraph (4), by striking out ‘‘section 111(d) of the Federal Property and Administrative Services Act

of 1949’’ and inserting in lieu thereof ‘‘section 5131 of

the Information Technology Management Reform Act of

1996’’;

(2) in subsection (b)—

(A) by striking out paragraph (2);

(B) in paragraph (3), by striking out ‘‘section 111(d) of the Federal Property and Administrative Services Act

of 1949’’ and inserting in lieu thereof ‘‘section 5131 of

the Information Technology Management Reform Act of

1996’’; and

(C) by redesignating paragraphs (3), (4), (5), and (6)

as paragraphs (2), (3), (4), and (5); and

(3) in subsection (d)—

(A) in paragraph (1)(B)(v), by striking out ‘‘as defined’’

and all that follows and inserting in lieu thereof a semicolon; and

(B) in paragraph (2)— (i) by striking out ‘‘system’—’’ and all that follows through ‘‘means’’ in subparagraph (A) and inserting

in lieu thereof ‘‘system’ means’’; and (ii) by striking out ‘‘; and’’ at the end of subpara- graph (A) and all that follows through the end of

subparagraph (B) and inserting in lieu thereof a semicolon.

(b) COMPUTER SECURITY ACT OF 1987.—

(1) PURPOSES.—Section 2(b)(2) of the Computer Security

Act of 1987 (Public Law 100–235; 101 Stat. 1724) is amended

by striking out ‘‘by amending section 111(d) of the Federal

Property and Administrative Services Act of 1949 (40 U.S.C.

759(d))’’.

(2) SECURITY PLAN.—Section 6(b) of such Act (101 Stat.

1729; 40 U.S.C. 759 note) is amended—

(A) by striking out ‘‘Within one year after the date

of enactment of this Act, each such agency shall, consistent

with the standards, guidelines, policies, and regulations

prescribed pursuant to section 111(d) of the Federal Property and Administrative Services Act of 1949,’’ and inserting in lieu thereof ‘‘Each such agency shall, consistent

with the standards, guidelines, policies, and regulations

prescribed pursuant to section 5131 of the Information

Technology Management Reform Act of 1996,’’; and

(B) by striking out ‘‘Copies’’ and all that follows through

‘‘Code.’’.

(c) FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF

1949.—Section 303B(h) of the Federal Property and Administrative

Services Act of 1949 (41 U.S.C. 253b(h)) is amended by striking

out paragraph (3).

40 USC 759 note.

110 STAT. 702 PUBLIC LAW 104–106—FEB. 10, 1996

(d) OFFICE OF FEDERAL PROCUREMENT POLICY ACT.—Section

6(h)(1) of the Office of Federal Procurement Policy Act (41 U.S.C.

405(h)(1)) is amended by striking out ‘‘of automatic data processing

and telecommunications equipment and services or’’.

(e) NATIONAL ENERGY CONSERVATION POLICY ACT.—Section

801(b)(3) of the National Energy Conservation Policy Act (42 U.S.C.

8287(b)(3)) is amended by striking out the second sentence.

(f) CENTRAL INTELLIGENCE AGENCY ACT OF 1949.—Section 3

of the Central Intelligence Agency Act of 1949 (50 U.S.C. 403c)

is amended by striking out subsection (e).

SEC. 5608. CLERICAL AMENDMENTS.

(a) FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF

1949.—The table of contents in section 1(b) of the Federal Property

and Administrative Services Act of 1949 is amended by striking

out the item relating to section 111.

(b) TITLE 38, UNITED STATES CODE.—The table of sections

at the beginning of chapter 3 of title 38, United States Code,

is amended by striking out the item relating to section 310 and

inserting in lieu thereof the following:

‘‘310. Chief Information Officer.’’.

TITLE LVII—EFFECTIVE DATE, SAVINGS

PROVISIONS, AND RULES OF CONSTRUCTION

SEC. 5701. EFFECTIVE DATE.

This division and the amendments made by this division shall

take effect 180 days after the date of the enactment of this Act.

SEC. 5702. SAVINGS PROVISIONS.

(a) REGULATIONS, INSTRUMENTS, RIGHTS, AND PRIVILEGES.—

All rules, regulations, contracts, orders, determinations, permits,

certificates, licenses, grants, and privileges—

(1) which have been issued, made, granted, or allowed

to become effective by the Administrator of General Services

or the General Services Board of Contract Appeals, or by a

court of competent jurisdiction, in connection with an acquisition activity carried out under section 111 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 759),

and

(2) which are in effect on the effective date of this division,

shall continue in effect according to their terms until modified,

terminated, superseded, set aside, or revoked in accordance with

law by the Director or any other authorized official, by a court

of competent jurisdiction, or by operation of law.

(b) PROCEEDINGS.—

(1) PROCEEDINGS GENERALLY.—This division and the

amendments made by this division shall not affect any proceeding, including any proceeding involving a claim, application,

or protest in connection with an acquisition activity carried

out under section 111 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 759) that is pending before

the Administrator of General Services or the General Services

Board of Contract Appeals on the effective date of this division.

40 USC 1401

note.

PUBLIC LAW 104–106—FEB. 10, 1996 110 STAT. 703

LEGISLATIVE HISTORY—S. 1124 (H.R. 1530) (S. 1026):

HOUSE REPORTS: Nos. 104–131 (Comm. on National Security) and 104–406 (Comm. of Conference), both accompanying H.R. 1530, and

104–450 (Comm. of Conference).

SENATE REPORTS: No. 104–112 accompanying S. 1026 (Comm. on Armed Serv- ices).

CONGRESSIONAL RECORD:

Vol. 141 (1995): Sept. 6, considered and passed Senate. Vol. 142 (1996): Jan. 5, considered and passed House, amended, in lieu of

H.R. 1530.

Jan. 24, House agreed to conference report.

Jan. 26, Senate agreed to conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):

Feb. 10, Presidential statement.

Æ

(2) ORDERS.—Orders may be issued in any such proceeding, appeals may be taken therefrom, and payments may be made

pursuant to such orders, as if this division had not been

enacted. An order issued in any such proceeding shall continue

in effect until modified, terminated, superseded, or revoked

in accordance with law by the Director or any other authorized

official, by a court of competent jurisdiction, or by operation

of law.

(3) DISCONTINUANCE OR MODIFICATION OF PROCEEDINGS NOT

PROHIBITED.—Nothing in this subsection prohibits the dis- continuance or modification of any such proceeding under the

same terms and conditions and to the same extent that such

proceeding could have been discontinued or modified if this

Act had not been enacted.

(4) OTHER AUTHORITY AND PROHIBITION.—Section 1558(a)

of title 31, United States Code, and the second sentence of

section 3552 of such title shall continue to apply with respect

to a protest process in accordance with this subsection. (5) REGULATIONS FOR TRANSFER OF PROCEEDINGS.—The

Director may prescribe regulations providing for the orderly

transfer of proceedings continued under paragraph (1).

(c) STANDARDS AND GUIDELINES FOR FEDERAL COMPUTER SYS- TEMS.—Standards and guidelines that are in effect for Federal computer systems under section 111(d) of the Federal Property

and Administrative Services Act of 1949 (40 U.S.C. 759(d)) on

the day before the effective date of this division shall remain in

effect until modified, terminated, superseded, revoked, or disapproved under the authority of section 5131 of this Act.

SEC. 5703. RULES OF CONSTRUCTION.

(a) RELATIONSHIP TO TITLE 44, UNITED STATES CODE.—Nothing in this division shall be construed to amend, modify, or supersede

any provision of title 44, United States Code, other than chapter

35 of such title.

(b) RELATIONSHIP TO COMPUTER SECURITY ACT OF 1987.—Nothing in this division shall affect the limitations on authority that

is provided for in the administration of the Computer Security

Act of 1987 (Public Law 100–235) and the amendments made by

such Act.

Approved February 10, 1996.