PUBLIC LAW 104–201—SEPT. 23, 1996

NATIONAL DEFENSE AUTHORIZATION ACT

FOR FISCAL YEAR 1997
110 STAT. 2422 PUBLIC LAW 104–201—SEPT. 23, 1996

Public Law 104–201

104th Congress

An Act

To authorize appropriations for fiscal year 1997 for military activities of the

Department of Defense, for military construction, and for defense activities of

the Department of Energy, to prescribe personnel strengths for such fiscal year

for the Armed Forces, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

Act for Fiscal Year 1997’’.

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

(a) DIVISIONS.—This Act is organized into three divisions as

follows:

(1) Division A—Department of Defense Authorizations.

(2) Division B—Military Construction Authorizations.

(3) Division C—Department of Energy National Security

Authorizations and Other Authorizations.

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

is as follows:

Sec. 1. Short title.

Sec. 2. Organization of Act into divisions; table of contents.

Sec. 3. Congressional defense committees defined.

DIVISION A—DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I—PROCUREMENT

Subtitle A—Authorization of Appropriations

Sec. 101. Army.

Sec. 102. Navy and Marine Corps.

Sec. 103. Air Force.

Sec. 104. Defense-wide activities.

Sec. 105. Reserve components.

Sec. 106. Defense Inspector General.

Sec. 107. Chemical Demilitarization Program.

Sec. 108. Defense health programs.

Subtitle B—Army Programs

Sec. 111. Repeal of limitation on procurement of Armed Kiowa Warrior helicopters.

Sec. 112. Multiyear procurement authority for Army programs.

Sec. 113. Bradley TOW 2 Test Program sets.

Subtitle C—Navy Programs

Sec. 121. Nuclear attack submarine programs.

Sec. 122. Arleigh Burke class destroyer program.

Sec. 123. EA–6B aircraft reactive jammer program.

Sec. 124. T–39N trainer aircraft for the Navy.

Sec. 125. Penguin missile program.

National Defense

Authorization

Act for Fiscal

Year 1997.

Sept. 23, 1996

[H.R. 3230]
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2423

Subtitle D—Air Force Programs

Sec. 131. Repeal of limitation on procurement of F–15E aircraft.

Sec. 132. Modification to multiyear procurement authority for C–17 aircraft program.

Subtitle E—Other Matters

Sec. 141. Assessments of modernization priorities of the Reserve components.

Sec. 142. Destruction of existing stockpile of lethal chemical agents and munitions.

Sec. 143. Extension of authority to carry out Armament Retooling and Manufacturing Support Initiative.

TITLE II—RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Subtitle A—Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Sec. 202. Amount for basic and applied research.

Sec. 203. Dual-use technology programs.

Sec. 204. Defense Special Weapons Agency.

Subtitle B—Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.

Sec. 212. Space-Based Infrared System program.

Sec. 213. Clementine 2 micro-satellite development program.

Sec. 214. Live-fire survivability testing of V–22 Osprey aircraft.

Sec. 215. Live-fire survivability testing of F–22 aircraft.

Sec. 216. Limitation on funding for F–16 tactical manned reconnaissance aircraft.

Sec. 217. Cost analysis of F–22 aircraft program.

Sec. 218. F–22 aircraft program reports.

Sec. 219. Cost-benefit analysis of F/A–18E/F aircraft program.

Sec. 220. Joint Advanced Strike Technology (JAST) program.

Sec. 221. Unmanned aerial vehicles.

Sec. 222. High altitude endurance unmanned aerial reconnaissance system.

Sec. 223. Cyclone class patrol craft self-defense.

Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber Optic

Guided Missile (EFOG–M) system.

Sec. 225. Hydra–70 rocket product improvement program.

Sec. 226. Federally funded research and development centers.

Sec. 227. Demilitarization of conventional munitions, rockets, and explosives.

Sec. 228. Research activities of the Defense Advanced Research Projects Agency relating to chemical and biological warfare defense technology.

Sec. 229. Certification of capability of United States to prevent illegal importation

of nuclear, biological, or chemical weapons.

Sec. 230. Nonlethal weapons and technologies programs.

Sec. 231. Counterproliferation support program.

Subtitle C—Ballistic Missile Defense Programs

Sec. 241. Funding for ballistic missile defense programs for fiscal year 1997.

Sec. 242. Certification of capability of United States to defend against single

ballistic missile.

Sec. 243. Report on ballistic missile defense and proliferation.

Sec. 244. Revision to annual report on ballistic missile defense program.

Sec. 245. Report on Air Force National Missile Defense Plan.

Sec. 246. Capability of National Missile Defense system.

Sec. 247. Actions to limit adverse effects on private sector employment of establishment of National Missile Defense Joint Program Office.

Sec. 248. ABM Treaty defined.

Subtitle D—Other Matters

Sec. 261. Maintenance and repair at Air Force installations.

Sec. 262. Report relating to Small Business Innovation Research Program.

Sec. 263. Amendment to University Research Initiative Support program.

Sec. 264. Amendments to Defense Experimental Program To Stimulate Competitive

Research.

Sec. 265. Elimination of report on the use of competitive procedures for the award

of certain contracts to colleges and universities.

Sec. 266. Pilot program for transfer of defense technology information to private industry.

Sec. 267. Research under transactions other than contracts and grants.

Sec. 268. Desalting technologies.

Sec. 269. Evaluation of digital video network equipment used in Olympic games.
110 STAT. 2424 PUBLIC LAW 104–201—SEPT. 23, 1996

Sec. 270. Annual joint warfighting science and technology plan.

Subtitle E—National Oceanographic Partnership Program

Sec. 281. Findings.

Sec. 282. National Oceanographic Partnership Program.

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 Corporation.

Sec. 306. Availability of additional funds for antiterrorism activities.

Sec. 307. Nonlethal weapons capabilities.

Sec. 308. SR–71 contingency reconnaissance force.

Subtitle B—Depot-Level Activities

Sec. 311. Extension of authority for aviation depots and naval shipyards to engage

in defense-related production and services.

Sec. 312. Test programs for modernization-through-spares.

Subtitle C—Environmental Provisions

Sec. 321. Defense contractors covered by requirement for reports on contractor reimbursement costs for response actions.

Sec. 322. Establishment of separate environmental restoration accounts for each

military department.

Sec. 323. Payment of stipulated penalties assessed under CERCLA.

Sec. 324. Shipboard solid waste control.

Sec. 325. Authority to develop and implement land use plans for defense environmental restoration program.

Sec. 326. Pilot program to test alternative technology for limiting air emissions

during shipyard blasting and coating operations.

Sec. 327. Agreements for services of other agencies in support of environmental

technology certification.

Sec. 328. Repeal of redundant notification and consultation requirements regarding

remedial investigations and feasibility studies at certain installations to

be closed under the base closure laws.

Sec. 329. Authority for agreements with Indian tribes for services under environmental restoration program.

Sec. 330. Authority to withhold listing of Federal facilities on National Priorities

List.

Sec. 331. Clarification of meaning of uncontaminated property for purposes of

transfer by the United States.

Sec. 332. Conservation and cultural activities.

Sec. 333. Navy program to monitor ecological effects of organotin.

Sec. 334. Authority to transfer contaminated Federal property before completion of

required response actions.

Subtitle D—Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Contracts with other agencies to provide or obtain goods and services to

promote efficient operation and management of exchanges and morale,

welfare, and recreation activities.

Sec. 342. Noncompetitive procurement of brand-name commercial items for resale

in commissary stores.

Sec. 343. Prohibition of sale or rental of sexually explicit material.

Subtitle E—Performance of Functions by Private-Sector Sources

Sec. 351. Extension of requirement for competitive procurement of printing and

duplication services.

Sec. 352. Reporting requirements under demonstration project for purchase of fire,

security, police, public works, and utility services from local government

agencies.

Subtitle F—Other Matters

Sec. 361. Authority for use of appropriated funds for recruiting functions.

Sec. 362. Training of members of the uniformed services at non-Government facilities.

Sec. 363. Requirement for preparation of plan for improved operation of workingcapital funds and effect of failure to produce an approved plan.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2425

Sec. 364. Increase in capital asset threshold under Defense Business Operations

Fund.

Sec. 365. Expansion of authority to donate unusable food.

Sec. 366. Assistance to committees involved in inauguration of the President.

Sec. 367. Department of Defense support for sporting events.

Sec. 368. Storage of motor vehicle in lieu of transportation.

Sec. 369. Security protections at Department of Defense facilities in National

Capital Region.

Sec. 370. Administration of midshipmen’s store and other naval academy support

activities as nonappropriated fund instrumentality.

Sec. 371. Reimbursement under agreement for instruction of civilian students at

Foreign Language Institute of the Defense Language Institute.

Sec. 372. Assistance to local educational agencies that benefit dependents of

members of the Armed Forces and Department of Defense civilian

employees.

Sec. 373. Renovation of building for Defense Finance and Accounting Service

Center, Fort Benjamin Harrison, Indiana.

Sec. 374. Food donation pilot program at service academies.

Sec. 375. Authority of Air National Guard to provide certain services at Lincoln

Municipal Airport, Lincoln, Nebraska.

Sec. 376. Technical amendment regarding Impact Aid program.

TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A—Active Forces

Sec. 401. End strengths for active forces.

Sec. 402. Permanent end strength levels to support two major regional contingencies.

Sec. 403. Authorized strengths for commissioned officers on active duty in grades

of major, lieutenant colonel, and colonel and Navy grades of lieutenant

commander, commander, and captain.

Sec. 404. Extension of requirement for recommendations regarding appointments to

joint 4-star officer positions.

Sec. 405. Increase in authorized number of general officers on active duty in the

Marine Corps.

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. End strengths for military technicians.

Sec. 414. Assurance of continued assignment of military personnel to serve in

Selective Service System.

Subtitle C—Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

TITLE V—MILITARY PERSONNEL POLICY

Subtitle A—Officer Personnel Policy

Sec. 501. Grade of Chief of Naval Research.

Sec. 502. Chief and Assistant Chief of Army Nurse Corps and Air Force Nurse

Corps.

Sec. 503. Navy spot promotion authority for certain lieutenants with critical skills.

Sec. 504. Time for award of degrees by unaccredited educational institutions for

graduates to be considered educationally qualified for appointment as

Reserve officers in grade O–3.

Sec. 505. Exception to baccalaureate degree requirement for appointment in the

Naval Reserve in grades above O–2.

Sec. 506. Chief warrant officer promotions.

Sec. 507. Service credit for senior ROTC cadets and midshipmen in simultaneous

membership program.

Sec. 508. Continuation on active status for certain Reserve officers of the Air Force.

Sec. 509. Reports on response to recommendations concerning improvements to

Department of Defense joint manpower process.

Sec. 510. Frequency of reports to Congress on joint officer management policies.

Subtitle B—Enlisted Personnel Policy

Sec. 511. Career service reenlistments for members with at least 10 years of

service.

Sec. 512. Authority to extend period for entry on active duty under the delayed

entry program.
110 STAT. 2426 PUBLIC LAW 104–201—SEPT. 23, 1996

Subtitle C—Activation and Recall

Sec. 521. Limitations on recall of retired members to active duty.

Sec. 522. Clarification of definition of active status.

Sec. 523. Limitation of requirement for physical examinations of members of

National Guard called into Federal service.

Subtitle D—Reserve Component Retirement

Sec. 531. Increase in annual limit on days of inactive duty training creditable

toward Reserve retirement.

Sec. 532. Retirement of Reserve enlisted members who qualify for active duty retirement after administrative reduction in enlisted grade.

Sec. 533. Authority for a Reserve on active duty to waive retirement sanctuary.

Sec. 534. Eligibility of Reserves for disability retirement.

Subtitle E—Other Reserve Component Matters

Sec. 541. Training for Reserves on active duty in support of the Reserves.

Sec. 542. Eligibility for enrollment in Ready Reserve mobilization income insurance

program.

Sec. 543. Reserve credit for participation in Health Professions Scholarship and

Financial Assistance Program.

Sec. 544. Amendments to Reserve Officer Personnel Management Act provisions.

Sec. 545. Report on number of advisers in active component support of Reserves

pilot program.

Sec. 546. Sense of Congress and report regarding reemployment rights for mobilized Reservists employed in foreign countries.

Sec. 547. Payment of premiums under Mobilization Income Insurance Program.

Subtitle F—Officer Education Programs

Sec. 551. Oversight and management of Senior Reserve Officers’ Training Corps

program.

Sec. 552. Prohibition on reorganization of Army ROTC cadet command or termination of senior ROTC units pending report on ROTC.

Sec. 553. Pilot program to test expansion of ROTC program to include graduate

students.

Sec. 554. Demonstration project for instruction and support of Army ROTC units

by members of the Army Reserve and National Guard.

Sec. 555. Extension of maximum age for appointment as a cadet or midshipman in

the Senior Reserve Officers’ Training Corps and the service academies.

Sec. 556. Expansion of eligibility for education benefits to include certain Reserve

Officers’ Training Corps (ROTC) participants.

Sec. 557. Comptroller General report on cost and policy implications of permitting

up to five percent of service academy graduates to be assigned directly

to Reserve duty upon graduation.

Subtitle G—Decorations and Awards

Sec. 561. Authority for award of Medal of Honor to certain African American

soldiers who served during World War II.

Sec. 562. Waiver of time limitations for award of certain decorations to specified

persons.

Sec. 563. Replacement of certain American Theater Campaign Ribbons.

Subtitle H—Other Matters

Sec. 571. Hate crimes in the military.

Sec. 572. Disability coverage for members granted excess leave for educational or

emergency purposes.

Sec. 573. Clarification of authority of a Reserve judge advocate to act as a military

notary public when not in a duty status.

Sec. 574. Panel on jurisdiction of courts-martial for the National Guard when not

in Federal service.

Sec. 575. Authority to expand law enforcement placement program to include firefighters.

Sec. 576. Improvements to program to assist separated military and civilian personnel to obtain employment as teachers or teachers’ aides.

Sec. 577. Retirement at grade to which selected for promotion when a physical disability is found at any physical examination.

Sec. 578. Revisions to missing persons authorities.

Subtitle I—Commissioned Corps of the Public Health Service

Sec. 581. Applicability to Public Health Service of prohibition on crediting cadet or

midshipmen service at the service academies.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2427

Sec. 582. Exception to strength limitations for Public Health Service officers assigned to the Department of Defense. Sec. 583. Authority to provide legal assistance to Public Health Service officers.

TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A—Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1997.

Sec. 602. Adjustment of rate of cadet and midshipman pay.

Sec. 603. Pay of senior noncommissioned officers while hospitalized.

Sec. 604. Availability of basic allowance for quarters for certain members without

dependents who serve on sea duty. Sec. 605. Uniform applicability of discretion to deny an election not to occupy

Government quarters. Sec. 606. Establishment of minimum monthly amount of variable housing allowance for high housing cost areas. Sec. 607. Family separation allowance for members separated by military orders

from spouses who are members. Sec. 608. Waiver of time limitations for claim for pay and allowances.

Subtitle B—Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay authorities for

reserve forces.

Sec. 612. One-year extension of certain bonuses and special pay authorities for

nurse officer candidates, registered nurses, and nurse anesthetists. Sec. 613. One-year extension of authorities relating to payment of other bonuses

and special pays. Sec. 614. Special pay for certain Public Health Service officers.

Sec. 615. Special incentives to recruit and retain dental officers.

Sec. 616. Foreign language proficiency pay for Public Health Service and National

Oceanic and Atmospheric Administration officers.

Subtitle C—Travel and Transportation Allowances

Sec. 621. Allowance in connection with shipping motor vehicle at Government

expense. Sec. 622. Dislocation allowance at a rate equal to two and one-half months basic

allowance for quarters. Sec. 623. Allowance for travel performed in connection with leave between consecutive overseas tours.

Sec. 624. Funding for transportation of household effects of Public Health Service

officers.

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

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

1998.

Sec. 632. Clarification of initial computation of retiree COLAs after retirement.

Sec. 633. Suspension of payment of retired pay of members who are absent from

the United States to avoid prosecution. Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.

Sec. 635. Increases in Survivor Benefit Plan contributions to be effective concurrently with payment of retired pay cost-of-living increases. Sec. 636. Amendments to the Uniformed Services Former Spouses’ Protection Act.

Sec. 637. Prevention of circumvention of court order by waiver of retired pay to

enhance civil service retirement annuity. Sec. 638. Administration of benefits for so-called minimum income widows.

Subtitle E—Other Matters

Sec. 651. Discretionary allotment of pay, including retired or retainer pay.

Sec. 652. Reimbursement for adoption expenses incurred in adoptions through

private placements. Sec. 653. Waiver of recoupment of amounts withheld for tax purposes from certain

separation pay. Sec. 654. Technical correction clarifying limitation on furnishing clothing or allowances for enlisted National Guard technicians.

Sec. 655. Technical correction to prior authority for payment of back pay to certain

persons. Sec. 656. Compensation for persons awarded prisoner of war medal who did not

previously receive compensation as a prisoner of war. Sec. 657. Payments to certain persons captured and interned by North Vietnam.

TITLE VII—HEALTH CARE PROVISIONS

Subtitle A—Health Care Services

Sec. 701. Preventive health care screening for colon and prostate cancer.
110 STAT. 2428 PUBLIC LAW 104–201—SEPT. 23, 1996

Sec. 702. Implementation of requirement for Selected Reserve dental insurance

plan.

Sec. 703. Dental insurance plan for military retirees and unremarried surviving

spouses and certain other dependents of military retirees.

Sec. 704. Plan for health care coverage for children with medical conditions caused

by parental exposure to chemical munitions while serving as members

of the Armed Forces.

Subtitle B—TRICARE Program

Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees.

Sec. 712. Improved information exchange between military treatment facilities and

TRICARE program contractors.

Sec. 713. Plans for medicare subvention demonstration programs.

Subtitle C—Uniformed Services Treatment Facilities

Sec. 721. Definitions.

Sec. 722. Inclusion of designated providers in uniformed services health care

delivery system.

Sec. 723. Provision of uniform benefit by designated providers.

Sec. 724. Enrollment of covered beneficiaries.

Sec. 725. Application of CHAMPUS payment rules.

Sec. 726. Payments for services.

Sec. 727. Repeal of superseded authorities.

Subtitle D—Other Changes to Existing Laws Regarding Health Care

Management

Sec. 731. Authority to waive CHAMPUS exclusion regarding nonmedically

necessary treatment in connection with certain clinical trials.

Sec. 732. Exception to maximum allowable payments to individual health-care

providers under CHAMPUS.

Sec. 733. Codification of annual authority to credit CHAMPUS refunds to current

year appropriation.

Sec. 734. Exceptions to requirements regarding obtaining nonavailability-of-healthcare statements.

Sec. 735. Enhancement of third-party collection and secondary payer authorities

under CHAMPUS.

Subtitle E—Other Matters

Sec. 741. Alternatives to active duty service obligation under Armed Forces Health

Professions Scholarship and Financial Assistance program and Uniformed Services University of the Health Sciences.

Sec. 742. External peer review for defense health program extramural medical

research involving human subjects.

Sec. 743. Independent research regarding Gulf War syndrome.

Sec. 744. Comptroller General review of health care activities of Department of

Defense relating to Gulf War illnesses.

Sec. 745. Report regarding specialized treatment facility program.

Sec. 746. Study of means of ensuring uniformity in provision of medical and dental

care for members of Reserve components.

Sec. 747. Sense of Congress regarding tax treatment of Armed Forces Health

Professions Scholarship and Financial Assistance program.

TITLE VIII—ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND

RELATED MATTERS

Subtitle A—Acquisition Management

Sec. 801. Procurement technical assistance programs.

Sec. 802. Extension of pilot mentor-protege program.

Sec. 803. Authority to waive certain requirements for defense acquisition pilot programs.

Sec. 804. Modification of authority to carry out certain prototype projects.

Sec. 805. Increase in threshold amounts for major systems.

Sec. 806. Revisions in information required to be included in selected acquisition

reports.

Sec. 807. Increase in simplified acquisition threshold for humanitarian or peacekeeping operations.

Sec. 808. Expansion of audit reciprocity among Federal agencies to include postaward audits.

Sec. 809. Excessive compensation of certain contractor personnel.

Sec. 810. Exception to prohibition on procurement of foreign goods.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2429

Subtitle B—Other Matters

Sec. 821. Prohibition on release of contractor proposals under Freedom of Information Act.

Sec. 822. Amendments relating to reports on procurement regulatory activity.

Sec. 823. Amendment of multiyear limitation on contracts for inspection, maintenance, and repair.

Sec. 824. Streamlined notice requirements to contractors and employees regarding

termination or substantial reduction in contracts under major defense

programs.

Sec. 825. Repeal of notice requirements for substantially or seriously affected parties in downsizing efforts.

Sec. 826. Study of effectiveness of defense mergers.

Sec. 827. Annual report relating to Buy American Act.

Sec. 828. Foreign environmental technology.

Sec. 829. Assessment of national defense technology and industrial base and

dependency of base on supplies available only from foreign countries.

Sec. 830. Expansion of report on implementation of automated information systems

to include additional matters regarding information resources management.

Sec. 831. Year 2000 software conversion.

Sec. 832. Procurement from firms in industrial base for production of small arms.

Sec. 833. Cable television franchise agreements.

TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND

MANAGEMENT

Subtitle A—General Matters

Sec. 901. Repeal of previously enacted reduction in number of statutory positions

in Office of the Secretary of Defense.

Sec. 902. Additional required reduction in defense acquisition workforce.

Sec. 903. Reduction of personnel assigned to Office of the Secretary of Defense.

Sec. 904. Report on military department headquarters staffs.

Sec. 905. Matters to be considered in next assessment of current missions, responsibilities, and force structure of the unified combatant commands.

Sec. 906. Transfer of authority to control transportation systems in time of war.

Sec. 907. Codification of requirements relating to continued operation of the

Uniformed Services University of the Health Sciences.

Sec. 908. Joint Requirements Oversight Council.

Sec. 909. Membership of the Ammunition Storage Board.

Sec. 910. Removal of Secretary of the Army from membership on the Foreign Trade

Zone Board.

Sec. 911. Composition of aircraft accident investigation boards.

Sec. 912. Mission of the White House Communications Agency.

Subtitle B—Force Structure Review

Sec. 921. Short title.

Sec. 922. Findings.

Sec. 923. Quadrennial Defense Review.

Sec. 924. National Defense Panel.

Sec. 925. Postponement of deadlines.

Sec. 926. Definitions.

TITLE X—GENERAL PROVISIONS

Subtitle A—Financial Matters

Sec. 1001. Transfer authority.

Sec. 1002. Incorporation of classified annex.

Sec. 1003. Authority for obligation of certain unauthorized fiscal year 1996 defense

appropriations.

Sec. 1004. Authorization of prior emergency supplemental appropriations for fiscal

year 1996.

Sec. 1005. Format for budget requests for Navy/Marine Corps and Air Force ammunition accounts.

Sec. 1006. Format for annual budget requests for Defense Airborne Reconnaissance

Program.

Sec. 1007. Limitation on use of Department of Defense funds transferred to the

Coast Guard.

Sec. 1008. Fisher House Trust Fund for the Department of the Navy.

Sec. 1009. Designation and liability of disbursing and certifying officials for the

Coast Guard.

Sec. 1010. Authority to suspend or terminate collection actions against deceased

members of the Coast Guard.
110 STAT. 2430 PUBLIC LAW 104–201—SEPT. 23, 1996

Sec. 1011. Department of Defense disbursing official check cashing and exchange

transactions.

Subtitle B—Naval Vessels and Shipyards

Sec. 1021. Repeal of requirement for continuous applicability of contracts for

phased maintenance of AE class ships.

Sec. 1022. Funding for second and third maritime prepositioning ships out of

National Defense Sealift Fund.

Sec. 1023. Transfer of certain obsolete tugboats of the Navy.

Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California.

Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102).

Subtitle C—Counter-Drug Activities

Sec. 1031. Authority to provide additional support for counter-drug activities of

Mexico.

Sec. 1032. Availability of funds for certain drug interdiction and counter-drug

activities.

Sec. 1033. Transfer of excess personal property to support law enforcement

activities.

Sec. 1034. Sale by Federal departments or agencies of chemicals used to manufacture controlled substances.

Subtitle D—Reports and Studies

Sec. 1041. Annual report on Operation Provide Comfort and Operation Enhanced

Southern Watch.

Sec. 1042. Annual report on emerging operational concepts.

Sec. 1043. Report on Department of Defense military child care programs.

Sec. 1044. Report on Department of Defense military youth programs.

Sec. 1045. Quarterly reports regarding coproduction agreements.

Sec. 1046. Report on witness interview procedures for Department of Defense

criminal investigations.

Sec. 1047. Report on military readiness requirements of the Armed Forces.

Sec. 1048. Report on NATO enlargement.

Subtitle E—Management of Armed Forces Retirement Home

Sec. 1051. Retirement Home Boards of Directors.

Sec. 1052. Acceptance of uncompensated services.

Sec. 1053. Disposal of tract of real property in the District of Columbia.

Subtitle F—Other Matters

Sec. 1061. Policy on protection of national information infrastructure against

strategic attack.

Sec. 1062. Information systems security program.

Sec. 1063. Authority to accept services from foreign governments and international

organizations for defense purposes.

Sec. 1064. Prohibition on collection and release of detailed satellite imagery

relating to Israel.

Sec. 1065. George C. Marshall European Center for Strategic Security Studies.

Sec. 1066. Authority to award to civilian participants in the defense of Pearl Harbor the Congressional Medal previously authorized only for military

participants in the defense of Pearl Harbor.

Sec. 1067. Assimilative crimes authority for traffic offenses on military installations.

Sec. 1068. Uniform Code of Military Justice amendments.

Sec. 1069. Punishment of interstate stalking.

Sec. 1070. Participation of members, dependents, and other persons in crime prevention efforts at installations.

Sec. 1071. Display of State flags at installations and facilities of the Department

of Defense.

Sec. 1072. Treatment of excess operational support airlift aircraft.

Sec. 1073. Correction to statutory references to certain Department of Defense

organizations.

Sec. 1074. Technical and clerical amendments.

Sec. 1075. Modification to third-party liability to United States for tortious infliction of injury or disease on members of the uniformed services.

Sec. 1076. Chemical Stockpile Emergency Preparedness Program.

Sec. 1077. Exemption from requirements applicable to savings associations for certain savings institutions serving military personnel.

Sec. 1078. Improvements to National Security Education Program.

Sec. 1079. Aviation and vessel war risk insurance.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2431

Sec. 1080. Designation of memorial as National D–Day Memorial.

Sec. 1081. Sense of Congress regarding semiconductor trade agreement between

United States and Japan.

Sec. 1082. Agreements for exchange of defense personnel between the United

States and foreign countries.

Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina.

Sec. 1084. Defense burdensharing.

TITLE XI—NATIONAL IMAGERY AND MAPPING AGENCY

Sec. 1101. Short title.

Sec. 1102. Findings.

Sec. 1103. Role of Director of Central Intelligence in appointment and evaluation

of certain intelligence officials.

Subtitle A—Establishment of Agency

Sec. 1111. Establishment.

Sec. 1112. Missions and authority.

Sec. 1113. Transfers of personnel and assets.

Sec. 1114. Compatibility with authority under the National Security Act of 1947.

Sec. 1115. Creditable civilian service for career conditional employees of the

Defense Mapping Agency.

Sec. 1116. Saving provisions.

Sec. 1117. Definitions.

Sec. 1118. Authorization of appropriations.

Subtitle B—Conforming Amendments and Effective Dates

Sec. 1121. Redesignation and repeals.

Sec. 1122. Reference amendments.

Sec. 1123. Headings and clerical amendments.

Sec. 1124. Effective date.

TITLE XII—RESERVE FORCES REVITALIZATION

Sec. 1201. Short title.

Sec. 1202. Purpose.

Subtitle A—Reserve Component Structure

Sec. 1211. Reserve component commands.

Sec. 1212. Reserve component chiefs.

Sec. 1213. Review of active duty and Reserve general and flag officer authorizations.

Sec. 1214. Guard and Reserve technicians.

Subtitle B—Reserve Component Accessibility

Sec. 1231. Report to Congress on measures to improve National Guard and Reserve

ability to respond to emergencies.

Sec. 1232. Report to Congress concerning tax incentives for employers of members

of Reserve components.

Sec. 1233. Report to Congress concerning income insurance program for activated

Reservists.

Sec. 1234. Report to Congress concerning small business loans for members

released from Reserve service during contingency operations.

Subtitle C—Reserve Forces Sustainment

Sec. 1251. Report concerning tax deductibility of nonreimbursable expenses.

Sec. 1252. Authority to pay transient housing charges for members performing

active duty for training.

Sec. 1253. Sense of Congress concerning quarters allowance during service on

active duty for training.

Sec. 1254. Sense of Congress concerning military leave policy.

Sec. 1255. Reserve Forces Policy Board.

Sec. 1256. Report on parity of benefits for active duty service and Reserve service.

Sec. 1257. Information on proposed funding for the Guard and Reserve components

in future-years defense programs.

TITLE XIII—ARMS CONTROL AND RELATED MATTERS

Subtitle A—Arms Control, Counterproliferation Activities, and Related

Matters

Sec. 1301. Extension of counterproliferation authorities.

Sec. 1302. Limitation on retirement or dismantlement of strategic nuclear delivery

systems.
110 STAT. 2432 PUBLIC LAW 104–201—SEPT. 23, 1996

Sec. 1303. Strengthening certain sanctions against nuclear proliferation activities.

Sec. 1304. Authority to pay certain expenses relating to humanitarian and civic

assistance for clearance of landmines.

Sec. 1305. Report on military capabilities of People’s Republic of China.

Sec. 1306. Presidential report regarding weapons proliferation and policies of the

People’s Republic of China.

Sec. 1307. United States-People’s Republic of China Joint Defense Conversion Commission.

Sec. 1308. Sense of Congress concerning export controls.

Sec. 1309. Counterproliferation Program Review Committee.

Sec. 1310. Sense of Congress concerning assisting other countries to improve

security of fissile material.

Sec. 1311. Review by Director of Central Intelligence of National Intelligence Estimate 95–19.

Subtitle B—Commission to Assess the Ballistic Missile Threat to the United

States

Sec. 1321. Establishment of Commission.

Sec. 1322. Duties of Commission.

Sec. 1323. Report.

Sec. 1324. Powers.

Sec. 1325. Commission procedures.

Sec. 1326. Personnel matters.

Sec. 1327. Miscellaneous administrative provisions.

Sec. 1328. Funding.

Sec. 1329. Termination of the Commission.

TITLE XIV—DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

Sec. 1401. Short title.

Sec. 1402. Findings.

Sec. 1403. Definitions.

Subtitle A—Domestic Preparedness

Sec. 1411. Response to threats of terrorist use of weapons of mass destruction.

Sec. 1412. Emergency response assistance program.

Sec. 1413. Nuclear, chemical, and biological emergency response.

Sec. 1414. Chemical-biological emergency response team.

Sec. 1415. Testing of preparedness for emergencies involving nuclear, radiological,

chemical, and biological weapons.

Sec. 1416. Military assistance to civilian law enforcement officials in emergency

situations involving biological or chemical weapons.

Sec. 1417. Rapid response information system.

Subtitle B—Interdiction of Weapons of Mass Destruction and Related

Materials

Sec. 1421. Procurement of detection equipment United States border security.

Sec. 1422. Extension of coverage of International Emergency Economic Powers Act.

Sec. 1423. Sense of Congress concerning criminal penalties.

Sec. 1424. International border security.

Subtitle C—Control and Disposition of Weapons of Mass Destruction and

Related Materials Threatening the United States

Sec. 1431. Coverage of weapons-usable fissile materials in Cooperative Threat

Reduction programs on elimination or transportation of nuclear

weapons.

Sec. 1432. Elimination of plutonium production.

Subtitle D—Coordination of Policy and Countermeasures Against

Proliferation of Weapons of Mass Destruction

Sec. 1441. National Coordinator on Nonproliferation.

Sec. 1442. National Security Council Committee on Nonproliferation.

Sec. 1443. Comprehensive preparedness program.

Sec. 1444. Termination.

Subtitle E—Miscellaneous

Sec. 1451. Sense of Congress concerning contracting policy.

Sec. 1452. Transfers of allocations among Cooperative Threat Reduction programs.

Sec. 1453. Sense of Congress concerning assistance to states of former Soviet

Union.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2433

Sec. 1454. Purchase of low-enriched uranium derived from Russian highly enriched

uranium.

Sec. 1455. Sense of Congress concerning purchase, packaging, and transportation of

fissile materials at risk of theft.

TITLE XV—COOPERATIVE THREAT REDUCTION WITH STATES OF

FORMER SOVIET UNION

Sec. 1501. Specification of Cooperative Threat Reduction programs.

Sec. 1502. Fiscal year 1997 funding allocations.

Sec. 1503. Prohibition on use of funds for specified purposes.

Sec. 1504. Limitation on use of funds until specified reports are submitted.

Sec. 1505. Availability of funds.

TITLE XVI—DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Subtitle A—Miscellaneous Matters Relating to Personnel Management, Pay,

and Allowances

Sec. 1601. Modification of requirement for conversion of military positions to

civilian positions.

Sec. 1602. Retention of civilian employee positions at military training bases transferred to National Guard.

Sec. 1603. Clarification of applicability of certain management constraints on major

range and test facility base structure.

Sec. 1604. Travel expenses and health care for civilian employees of the Department of Defense abroad.

Sec. 1605. Travel, transportation, and relocation allowances for certain former

nonappropriated fund employees.

Sec. 1606. Employment and salary practices applicable to Department of Defense

overseas teachers.

Sec. 1607. Employment and compensation of civilian faculty members at certain

Department of Defense schools.

Sec. 1608. Reimbursement of Department of Defense domestic dependent school

board members for certain expenses.

Sec. 1609. Modification of authority for civilian employees of Department of

Defense to participate voluntarily in reductions in force.

Sec. 1610. Wage-board compensatory time off.

Sec. 1611. Liquidation of restored annual leave that remains unused upon transfer

of employee from installation being closed or realigned.

Sec. 1612. Waiver of requirement for repayment of Voluntary Separation Incentive

pay by former Department of Defense employees reemployed by the

Government without pay.

Sec. 1613. Simplification of rules relating to the observance of certain holidays.

Sec. 1614. Revision of certain travel management authorities.

Sec. 1615. Failure to comply with veterans’ preference requirements to be treated

as a prohibited personnel practice.

Sec. 1616. Pilot programs for defense employees converted to contractor employees

due to privatization at closed military installations.

Subtitle B—Department of Defense Intelligence Personnel Policy

Sec. 1631. Short title.

Sec. 1632. Management of civilian intelligence personnel.

Sec. 1633. Repeal of superseded sections and clerical and conforming amendments.

Sec. 1634. Other personnel management authorities.

Sec. 1635. Effective date.

TITLE XVII—FEDERAL EMPLOYEE TRAVEL REFORM

Sec. 1701. Short title.

Subtitle A—Relocation Benefits

Sec. 1711. Allowance for seeking permanent residence quarters.

Sec. 1712. Temporary quarters subsistence expenses allowance.

Sec. 1713. Modification of residence transaction expenses allowance.

Sec. 1714. Authority to pay for property management services.

Sec. 1715. Authority to transport a privately owned motor vehicle within the

continental United States.

Sec. 1716. Authority to pay limited relocation allowances to an employee who is

performing an extended assignment.

Sec. 1717. Authority to pay a home marketing incentive.

Sec. 1718. Revision and reenactment of additional provisions relating to relocation

expenses.
110 STAT. 2434 PUBLIC LAW 104–201—SEPT. 23, 1996

Subtitle B—Miscellaneous Provisions

Sec. 1721. Repeal of the long-distance telephone call certification requirement.

Sec. 1722. Transfer of authority to prescribe regulations.

Sec. 1723. Conforming and clerical amendments.

Sec. 1724. Assessment of cost savings.

Sec. 1725. Effective date and issuance of regulations.

TITLE XVIII—FEDERAL CHARTER FOR THE FLEET RESERVE

ASSOCIATION

Sec. 1801. Recognition and grant of Federal charter.

Sec. 1802. Powers.

Sec. 1803. Purposes.

Sec. 1804. Service of process.

Sec. 1805. Membership.

Sec. 1806. Board of directors.

Sec. 1807. Officers.

Sec. 1808. Restrictions.

Sec. 1809. Liability.

Sec. 1810. Maintenance and inspection of books and records.

Sec. 1811. Audit of financial transactions.

Sec. 1812. Annual report.

Sec. 1813. Reservation of right to alter, amend, or repeal charter.

Sec. 1814. Tax-exempt status required as condition of charter.

Sec. 1815. Termination.

Sec. 1816. Definition of State.

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.

Sec. 2105. Land acquisition, National Ground Intelligence Center, Charlottesville,

Virginia.

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. Beach replenishment, Naval Air Station, North Island, 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. Elimination of authority to carry out fiscal year 1995 project,

Spangdahlem Air Force Base, Germany.

TITLE XXIV—DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition projects.

Sec. 2402. Military housing planning and design.

Sec. 2403. Improvements to military family housing units.

Sec. 2404. Military housing improvement program.

Sec. 2405. Energy conservation projects.

Sec. 2406. Authorization of appropriations, Defense Agencies.

Sec. 2407. Reduction in amounts authorized to be appropriated for fiscal year 1996

Defense Agencies military construction, land acquisition, and military

family housing functions.

TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION SECURITY

INVESTMENT PROGRAM

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.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2435

Sec. 2602. Authorization and funding for construction and improvement of Naval

Reserve Centers.

Sec. 2603. Upgrade Air National Guard facilities, Bangor International Airport,

Maine.

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 1994 projects.

Sec. 2703. Extension of authorizations of certain fiscal year 1993 projects.

Sec. 2704. Extension of authorizations of certain fiscal year 1992 projects.

Sec. 2705. Effective date.

TITLE XXVIII—GENERAL PROVISIONS

Subtitle A—Military Construction Program and Military Family Housing

Changes

Sec. 2801. Increase in certain thresholds for unspecified minor construction

projects.

Sec. 2802. Redesignation of North Atlantic Treaty Organization Infrastructure

program.

Sec. 2803. Improvements to family housing units.

Sec. 2804. Availability of funds for planning, execution, and administration of contracts for family housing and unaccompanied housing.

Subtitle B—Defense Base Closure and Realignment

Sec. 2811. Restoration of authority for certain intragovernment transfers under

1988 base closure law.

Sec. 2812. Contracting for certain services at facilities remaining on closed

installations.

Sec. 2813. Authority to compensate owners of manufactured housing.

Sec. 2814. Additional purpose for which adjustment and diversification assistance

is authorized.

Sec. 2815. Payment of stipulated penalties assessed under CERCLA in connection

with Loring Air Force Base, Maine.

Sec. 2816. Plan for utilization, reutilization, or disposal of Mississippi Army Ammunition Plant.

Subtitle C—Land Conveyances

PART I—ARMY CONVEYANCES

Sec. 2821. Transfer of lands, Arlington National Cemetery, Arlington, Virginia.

Sec. 2822. Land transfer, Fort Sill, Oklahoma.

Sec. 2823. Land conveyance, Army Reserve Center, Rushville, Indiana.

Sec. 2824. Land conveyance, Army Reserve Center, Anderson, South Carolina.

Sec. 2825. Land conveyance, Army Reserve Center, Montpelier, Vermont.

Sec. 2826. Land conveyance, Crafts Brothers Reserve Training Center, Manchester,

New Hampshire.

Sec. 2827. Land conveyance, Pine Bluff Arsenal, Arkansas.

Sec. 2828. Reaffirmation of land conveyances, Fort Sheridan, Illinois.

PART II—NAVY CONVEYANCES

Sec. 2831. Land transfer, Potomac Annex, District of Columbia.

Sec. 2832. Land exchange, St. Helena Annex, Norfolk Naval Shipyard, Virginia.

Sec. 2833. Land conveyance, Calverton Pine Barrens, Naval Weapons Industrial

Reserve Plant, Calverton, New York.

Sec. 2834. Land conveyance, former naval reserve facility, Lewes, Delaware.

Sec. 2835. Modification of land conveyance authority, Naval Reserve Center,

Seattle, Washington.

Sec. 2836. Release of condition on reconveyance of transferred land, Guam.

Sec. 2837. Lease to facilitate construction of Reserve center, Naval Air Station,

Meridian, Mississippi.

PART III—AIR FORCE CONVEYANCES

Sec. 2841. Land conveyance, Radar Bomb Scoring Site, Belle Fourche, South

Dakota.

Sec. 2842. Conveyance of primate research complex and Air Force-owned chimpanzees, Holloman Air Force Base, New Mexico.

PART IV—OTHER CONVEYANCES

Sec. 2851. Land conveyance, Tatum Salt Dome Test Site, Mississippi.
110 STAT. 2436 PUBLIC LAW 104–201—SEPT. 23, 1996

Sec. 2852. Land conveyance, William Langer Jewel Bearing Plant, Rolla, North

Dakota.

Sec. 2853. Land conveyance, Air Force Plant No. 85, Columbus, Ohio.

Sec. 2854. Modification of boundaries of White Sands National Monument and

White Sands Missile Range.

Subtitle D—Other Matters

Sec. 2861. Authority to grant easements for rights-of-way.

Sec. 2862. Authority to enter into cooperative agreements for the management of

cultural resources on military installations.

Sec. 2863. Demonstration project for installation and operation of electric power

distribution system at Youngstown Air Reserve Station, Ohio.

Sec. 2864. Renovation of the Pentagon reservation.

Sec. 2865. Plan for repairs and stabilization of the historic district at the Forest

Glen Annex of Walter Reed Medical Center, Maryland.

Sec. 2866. Naming of range at Camp Shelby, Mississippi.

Sec. 2867. Designation of Michael O’Callaghan military hospital.

Sec. 2868. Naming of building at the Uniformed Services University of the Health

Sciences.

TITLE XXIX—MILITARY LAND WITHDRAWALS

Subtitle A—Fort Carson-Pinon Canyon Military Lands Withdrawal

Sec. 2901. Short title.

Sec. 2902. Withdrawal and reservation of lands at Fort Carson Military Reservation.

Sec. 2903. Withdrawal and reservation of lands at Pinon Canyon Maneuver Site.

Sec. 2904. Maps and legal descriptions.

Sec. 2905. Management of withdrawn lands.

Sec. 2906. Management of withdrawn and acquired mineral resources.

Sec. 2907. Hunting, fishing, and trapping.

Sec. 2908. Termination of withdrawal and reservation.

Sec. 2909. Determination of presence of contamination and effect of contamination.

Sec. 2910. Delegation.

Sec. 2911. Hold harmless.

Sec. 2912. Amendment to Military Lands Withdrawal Act of 1986.

Sec. 2913. Authorization of appropriations.

Subtitle B—El Centro Naval Air Facility Ranges Withdrawal

Sec. 2921. Short title and definitions.

Sec. 2922. Withdrawal and reservation of lands for El Centro.

Sec. 2923. Maps and legal descriptions.

Sec. 2924. Management of withdrawn lands.

Sec. 2925. Duration of withdrawal and reservation.

Sec. 2926. Continuation of ongoing decontamination activities.

Sec. 2927. Requirements for extension.

Sec. 2928. Early relinquishment of withdrawal.

Sec. 2929. Delegation of authority.

Sec. 2930. Hunting, fishing, and trapping.

Sec. 2931. Hold harmless.

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. Defense fixed asset acquisition/privatization.

Sec. 3104. Other defense activities.

Sec. 3105. Defense nuclear waste disposal.

Subtitle B—Recurring General Provisions

Sec. 3121. Reprogramming.

Sec. 3122. Limits on general plant projects.

Sec. 3123. Limits on construction projects.

Sec. 3124. Fund transfer authority.

Sec. 3125. Authority for conceptual and construction design.

Sec. 3126. Authority for emergency planning, design, and construction activities.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2437

Sec. 3127. Funds available for all national security programs of the Department of

Energy.

Sec. 3128. Availability of funds.

Subtitle C—Program Authorizations, Restrictions, and Limitations

Sec. 3131. Stockpile stewardship program.

Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile.

Sec. 3133. Tritium production.

Sec. 3134. Modernization and consolidation of tritium recycling facilities.

Sec. 3135. Production of high explosives.

Sec. 3136. Limitation on use of funds for certain research and development

purposes.

Sec. 3137. Prohibition on funding nuclear weapons activities with People’s Republic

of China.

Sec. 3138. International cooperative stockpile stewardship programs.

Sec. 3139. Temporary authority relating to transfers of defense environmental

management funds.

Sec. 3140. Management structure for nuclear weapons production facilities and

nuclear weapons laboratories.

Sec. 3141. Accelerated schedule for isolating high-level nuclear waste at the

defense waste processing facility, Savannah River Site.

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

fuel rods.

Sec. 3143. Projects to accelerate closure activities at defense nuclear facilities.

Sec. 3144. Payment of costs of operation and maintenance of infrastructure at

Nevada Test Site.

Subtitle D—Other Matters

Sec. 3151. Report on plutonium pit production and remanufacturing plans.

Sec. 3152. Amendments relating to baseline environmental management reports.

Sec. 3153. Requirement to develop future use plans for environmental management

program.

Sec. 3154. Report on Department of Energy liability at Department superfund

sites.

Sec. 3155. Requirement for annual five-year budget for the national security programs of the Department of Energy.

Sec. 3156. Requirements for Department of Energy weapons activities budgets for

fiscal years after fiscal year 1997.

Sec. 3157. Repeal of requirement relating to accounting procedures for Department

of Energy funds.

Sec. 3158. Update of report on nuclear test readiness postures.

Sec. 3159. Reports on critical difficulties at nuclear weapons laboratories and

nuclear weapons production plants.

Sec. 3160. Extension of applicability of notice-and-wait requirement regarding proposed cooperation agreements.

Sec. 3161. Sense of Senate relating to redesignation of defense environmental

restoration and waste management program.

Sec. 3162. Commission on maintaining United States nuclear weapons expertise.

Sec. 3163. Sense of Congress regarding reliability and safety of remaining nuclear

forces.

Sec. 3164. Study on worker protection at the Mound facility.

Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement Project,

Livermore, California.

Sec. 3166. Fellowship program for development of skills critical to Department of

Energy nuclear weapons complex.

Subtitle E—Defense Nuclear Environmental Cleanup and Management

Sec. 3171. Purpose.

Sec. 3172. Applicability.

Sec. 3173. Site manager.

Sec. 3174. Department of Energy orders.

Sec. 3175. Deployment of technology for remediation of defense nuclear waste.

Sec. 3176. Performance-based contracting.

Sec. 3177. Designation of covered facilities as environmental cleanup demonstration areas.

Sec. 3178. Definitions.

Sec. 3179. Termination.

Sec. 3180. Report.

Subtitle F—Waste Isolation Pilot Plant Land Withdrawal Act Amendments

Sec. 3181. Short title.
110 STAT. 2438 PUBLIC LAW 104–201—SEPT. 23, 1996

Sec. 3182. Definitions.

Sec. 3183. Management plan.

Sec. 3184. Repeal of test phase and retrieval plans.

Sec. 3185. Test phase activities.

Sec. 3186. Disposal operations.

Sec. 3187. Environmental Protection Agency disposal regulations.

Sec. 3188. Compliance with environmental laws and regulations.

Sec. 3189. Sense of Congress on commencement of emplacement of transuranic

waste.

Sec. 3190. Decommissioning of WIPP.

Sec. 3191. Authorizations for economic assistance and miscellaneous payments.

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 certain materials in National Defense Stockpile.

Subtitle B—Programmatic Change

Sec. 3311. Biennial report on stockpile requirements.

Sec. 3312. Notification requirements.

Sec. 3313. Importation of strategic and critical materials.

TITLE XXXIV—NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

Sec. 3402. Price requirement on sale of certain petroleum during fiscal year 1997.

TITLE XXXV—PANAMA CANAL COMMISSION

Subtitle A—Authorization of Appropriations

Sec. 3501. Short title.

Sec. 3502. Authorization of expenditures.

Sec. 3503. Purchase of vehicles.

Sec. 3504. Expenditures only in accordance with treaties.

Subtitle B—Amendments to Panama Canal Act of 1979

Sec. 3521. Short title; references.

Sec. 3522. Definitions and recommendation for legislation.

Sec. 3523. Administrator.

Sec. 3524. Deputy Administrator and Chief Engineer.

Sec. 3525. Office of Ombudsman.

Sec. 3526. Appointment and compensation; duties.

Sec. 3527. Applicability of certain benefits.

Sec. 3528. Travel and transportation.

Sec. 3529. Clarification of definition of agency.

Sec. 3530. Panama Canal Employment System; merit and other employment

requirements.

Sec. 3531. Employment standards.

Sec. 3532. Repeal of obsolete provision regarding interim application of Canal Zone

Merit System.

Sec. 3533. Repeal of provision relating to recruitment and retention remuneration.

Sec. 3534. Benefits based on basic pay.

Sec. 3535. Vesting of general administrative authority of Commission.

Sec. 3536. Applicability of certain laws.

Sec. 3537. Repeal of provision relating to transferred or reemployed employees.

Sec. 3538. Administration of special disability benefits.

Sec. 3539. Panama Canal Revolving Fund.

Sec. 3540. Printing.

Sec. 3541. Accounting policies.

Sec. 3542. Interagency services; reimbursements.

Sec. 3543. Postal service.

Sec. 3544. Investigation of accidents or injury giving rise to claim.

Sec. 3545. Operations regulations.

Sec. 3546. Miscellaneous repeals.

Sec. 3547. Exemption from Metric Conversion Act of 1975.

Sec. 3548. Conforming and clerical amendments.

Sec. 3549. Repeal of Panama Canal Code.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2439

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

For purposes of this Act, the term ‘‘congressional defense

committees’’ means—

(1) the Committee on Armed Services and the Committee

on Appropriations of the Senate; and

(2) the Committee on National Security and the Committee

on Appropriations of the House of Representatives.

DIVISION A—DEPARTMENT OF

DEFENSE AUTHORIZATIONS

TITLE I—PROCUREMENT

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. Repeal of limitation on procurement of Armed Kiowa Warrior helicopters.

Sec. 112. Multiyear procurement authority for Army programs.

Sec. 113. Bradley TOW 2 Test Program sets.

Subtitle C—Navy Programs

Sec. 121. Nuclear attack submarine programs.

Sec. 122. Arleigh Burke class destroyer program.

Sec. 123. EA–6B aircraft reactive jammer program.

Sec. 124. T–39N trainer aircraft for the Navy.

Sec. 125. Penguin missile program.

Subtitle D—Air Force Programs

Sec. 131. Repeal of limitation on procurement of F–15E aircraft.

Sec. 132. Modification to multiyear procurement authority for C–17 aircraft

program.

Subtitle E—Other Matters

Sec. 141. Assessments of modernization priorities of the reserve components.

Sec. 142. Destruction of existing stockpile of lethal chemical agents and munitions.

Sec. 143. Extension of authority to carry out Armament Retooling and Manufacturing Support Initiative.

Subtitle A—Authorization of

Appropriations

SEC. 101. ARMY.

Funds are hereby authorized to be appropriated for fiscal year

1997 for procurement for the Army as follows: (1) For aircraft, $1,314,015,000.

(2) For missiles, $1,031,829,000.

(3) For weapons and tracked combat vehicles, $1,409,514,000.

(4) For ammunition, $1,003,028,000.

(5) For other procurement, $2,990,240,000.
110 STAT. 2440 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 102. NAVY AND MARINE CORPS.

(a) NAVY.—Funds are hereby authorized to be appropriated

for fiscal year 1997 for procurement for the Navy as follows:

(1) For aircraft, $7,034,926,000.

(2) For weapons, including missiles and torpedoes,

$1,345,408,000.

(3) For shipbuilding and conversion, $6,193,330,000.

(4) For other procurement, $2,893,840,000.

(b) MARINE CORPS.—Funds are hereby authorized to be appropriated for fiscal year 1997 for procurement for the Marine Corps

in the amount of $560,148,000.

(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 $293,239,000.

SEC. 103. AIR FORCE.

Funds are hereby authorized to be appropriated for fiscal year

1997 for procurement for the Air Force as follows:

(1) For aircraft, $6,764,420,000.

(2) For missiles, $2,525,875,000.

(3) For ammunition, $278,302,000.

(4) For other procurement, $5,814,419,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

Funds are hereby authorized to be appropriated for fiscal year

1997 for Defense-wide procurement in the amount of

$2,008,261,000.

SEC. 105. RESERVE COMPONENTS.

Funds are hereby authorized to be appropriated for fiscal year

1997 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, $171,000,000.

(2) For the Air National Guard, $234,000,000.

(3) For the Army Reserve, $98,000,000.

(4) For the Naval Reserve, $116,000,000.

(5) For the Air Force Reserve, $94,000,000.

(6) For the Marine Corps Reserve, $67,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

Funds are hereby authorized to be appropriated for fiscal year

1997 for procurement for the Inspector General of the Department

of Defense in the amount of $2,000,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

There is hereby authorized to be appropriated for fiscal year

1997 the amount of $759,847,000 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

1997 for the Department of Defense for procurement for carrying
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2441

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

of Defense in the total amount of $269,470,000.

Subtitle B—Army Programs

SEC. 111. REPEAL OF LIMITATION ON PROCUREMENT OF ARMED

KIOWA WARRIOR HELICOPTERS.

Section 133 of the National Defense Authorization Act for Fiscal

Years 1990 and 1991 (Public Law 101–189; 103 Stat. 1383) is

repealed.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR ARMY

PROGRAMS.

(a) AVENGER AIR DEFENSE MISSILE SYSTEM.—Notwithstanding

the limitation in subsection (k) of section 2306b of title 10, United

States Code, relating to the maximum duration of a multiyear

contract under the authority of that section, the Secretary of the

Army may extend the multiyear contract in effect during fiscal

year 1996 for the Avenger Air Defense Missile system through

fiscal year 1997 and may award such an extension.

(b) ARMY TACTICAL MISSILE SYSTEM.—The Secretary of the

Army may, in accordance with section 2306b of title 10, United

States Code, enter into a multiyear procurement contract, beginning

with the fiscal year 1997 program year, for procurement of the

Army Tactical Missile System (Army TACMS).

(c) JAVELIN MISSILE SYSTEM.—The Secretary of the Army may,

in accordance with section 2306b of title 10, United States Code,

enter into multiyear procurement contracts for the procurement

of the Javelin missile system.

SEC. 113. BRADLEY TOW 2 TEST PROGRAM SETS.

Of the funds authorized to be appropriated under section 101(3)

of the National Defense Authorization Act for Fiscal Year 1996

(Public Law 104–106; 110 Stat. 204), $6,000,000 is available for

the procurement of Bradley TOW–2 Test Program sets.

Subtitle C—Navy Programs

SEC. 121. NUCLEAR ATTACK SUBMARINE PROGRAMS.

(a) AMOUNTS AUTHORIZED FROM SCN ACCOUNT.—(1) Of the

amount authorized to be appropriated by section 102(a)(3) for fiscal

year 1997—

(A) $699,071,000 is available for continued construction

of the third vessel (designated SSN–23) in the Seawolf attack

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

(B) $296,186,000 is available for long-lead and advance

construction and procurement of components for construction

of a submarine (previously designated by the Navy as the

New Attack Submarine) beginning in fiscal year 1998 to be

built by Electric Boat Division; and

(C) $701,000,000 is available for long-lead and advance

construction and procurement of components for construction

of a second submarine (previously designated by the Navy

as the New Attack Submarine) beginning in fiscal year 1999

to be built by Newport News Shipbuilding.
110 STAT. 2442 PUBLIC LAW 104–201—SEPT. 23, 1996

(2) In addition to the purposes for which the amounts under

subparagraphs (B) and (C) of paragraph (1) are available, such

amounts are also available for contracts with Electric Boat Division

and Newport News Shipbuilding to carry out the provisions of

the ‘‘Memorandum of Agreement Among the Department of the

Navy, Electric Boat Corporation (EB) and Newport News Shipbuilding and Drydock Company (NNS) Concerning the New Attack Submarine’’, dated April 5, 1996, relating to design data transfer,

design improvements, integrated process teams, and updated design

base.

(b) AMOUNTS AUTHORIZED FROM NAVY RDT&E ACCOUNT.—

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

$487,611,000 is available for the design of the submarine previously

designated by the Navy as the New Attack Submarine.

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

201(2), $60,000,000 is available for obligation under contracts with

Electric Boat Division and Newport News Shipbuilding and other

entities to address the inclusion on future nuclear attack submarines of the core advanced technologies that are identified by

the Secretary of Defense (in the report of the Secretary entitled

‘‘Report on Nuclear Attack Submarine Procurement and Submarine

Technology’’, submitted to Congress on March 26, 1996) as those

technologies the maturation of which the Submarine Technology

Assessment Panel recommended be addressed in its March 15,

1996, final report to the Assistant Secretary of the Navy for

Research, Development, and Acquisition, as follows: hydrodynamics,

alternative sail designs, advanced arrays, electric drive, external

weapons, and active controls and mounts.

(B) Of the amount available under subparagraph (A),

$20,000,000 shall be equally divided between Electric Boat Division

and Newport News Shipbuilding for the purpose of ensuring that

those shipbuilders are principal participants in the process of

addressing the inclusion of technologies referred to in subparagraph

(A) on future nuclear attack submarines. Contracts with the shipbuilders under this subparagraph shall provide the shipbuilders

with wide latitude to pursue submarine-wide, integrated systems

approaches to the inclusion of such technologies. The Secretary

of the Navy shall ensure that those shipbuilders have access for

such purpose (under procedures prescribed by the Secretary) to

the Navy laboratories and the Office of Naval Intelligence and

(in accordance with arrangements to be made by the Secretary)

to the Defense Advanced Research Projects Agency.

(3) Of the amount authorized to be appropriated by section

201(2), $38,000,000 is available to begin funding those Category

I and Category II advanced technologies described in Appendix

C of the report of the Secretary of Defense referred to in paragraph

(2)(A). The Secretary of the Navy shall ensure that Electric Boat

Division and Newport News Shipbuilding are also principal participants in the technology initiatives pursued with such funds to

ensure submarine-wide, integrated systems approaches to the inclusion of such technologies on future nuclear attack submarines.

(4) In addition to the purposes for which the amounts under

paragraphs (1), (2), and (3) are available, such amounts are also

available for contracts with Electric Boat Division and Newport

News Shipbuilding to carry out the provisions of the memorandum

of agreement referred to in subsection (a)(2) for research and development activities under that memorandum of agreement.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2443

(c) AMOUNT FROM FISCAL YEAR 1996 FUNDS FOR NATIONAL

DEFENSE SEALIFT FUND.—(1) Section 132 of the National Defense

Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110

Stat. 210) is repealed.

(2) The amount referred to in section 132 of the National

Defense Authorization Act for Fiscal Year 1996 (as in effect immediately before the repeal by paragraph (1)) shall be available to

the Secretary of the Navy for activities relating only to advanced

submarine technology that involve the construction of large scale

vehicles for purposes of hydrodynamic and hydroacoustic research

on developmental designs for hulls and propulsion systems.

(d) CONTRACTS AUTHORIZED.—(1) The Secretary of the Navy

is authorized, using funds available pursuant to subparagraphs

(B) and (C) of subsection (a)(1), to enter into contracts with Electric

Boat Division and Newport News Shipbuilding, and suppliers of

components, during fiscal year 1997 for—

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

year 1998 submarine and the fiscal year 1999 submarine under

this section; and

(B) advance construction of such components and other

components for such submarines.

(2) The Secretary may enter into a contract or contracts under

this section with the shipbuilder of the fiscal year 1998 submarine

only if the Secretary enters into a contract or contracts under

this section with the shipbuilder of the fiscal year 1999 submarine.

(e) LIMITATIONS.—(1)(A) Of the amounts specified in subsection

(a)(1), not more than $100,000,000 may be obligated until the Secretary of Defense 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 described in subparagraph (B) will be under one or

more contracts that are entered into after competition between

Electric Boat Division and Newport News Shipbuilding in which

the Secretary of the Navy solicits competitive proposals and awards

the contract or contracts on the basis of price.

(B) The submarines referred to in subparagraph (A) are nuclear

attack submarines that are to be constructed beginning—

(i) after fiscal year 1999; or

(ii) if four submarines are to be procured as provided for

in the plan required under section 131(c) of the National

Defense Authorization Act for Fiscal Year 1996 (Public Law

104–106; 110 Stat. 208), after fiscal year 2001.

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

than $675,000,000 may be obligated until the Under Secretary

of Defense for Acquisition and Technology submits to the congressional committees specified in paragraph (1) a report in writing

detailing the following:

(A) The Under Secretary’s oversight activities to date, and

plans for the future, for the development and improvement

of the nuclear attack submarine program of the Navy as

required by section 131(b)(2)(C) of the National Defense

Authorization Act for Fiscal Year 1996 (110 Stat. 207).

(B) The implementation of, and activities conducted under,

the program required to be established by the Director of the

Defense Advanced Research Projects Agency by section 131(i)

of the National Defense Authorization Act for Fiscal Year 1996

(110 Stat. 210) for the development and demonstration of

Reports.

Certification.
110 STAT. 2444 PUBLIC LAW 104–201—SEPT. 23, 1996

advanced submarine technologies and a rapid prototype acquisition strategy for both land-based and at-sea subsystem and

system demonstrations of such technologies.

(C) A description of all research, development, test, and

evaluation programs, projects, or activities within the Department of Defense which, in the opinion of the Under Secretary,

are designed to contribute to the development and demonstration of advanced submarine technologies leading to a more

capable, more affordable nuclear attack submarine, specifically

identifying ongoing involvement, and plans for future involvement, in any such program, project, or activity by either Electric

Boat Division or Newport News Shipbuilding, or by both.

(3) Of the amount specified in subsection (b)(1), not more than

$100,000,000 may be obligated or expended until the Under Secretary of Defense (Comptroller) certifies in writing to the congressional committees specified in paragraph (1) that—

(A) funds specified in subsection (c)(2) have been made

available for obligation; and

(B) to the extent that funds specified in paragraphs (2)

and (3) of subsection (b) have been appropriated for the purposes specified in such paragraphs, such funds have been made

available for obligation.

(f) ACQUISITION SIMPLIFICATION.—In furtherance of the direction provided by subsection (d) of section 131 of the National

Defense Authorization Act for Fiscal Year 1996 (110 Stat. 209)

to the Secretary of Defense regarding the application of acquisition

reform policies and procedures to the submarine program under

that section, the Secretary shall direct the Secretary of the Navy

to implement for the submarine programs of the Navy acquisition

reform initiatives similar in intent and approach to the initiatives

begun by the Secretary of the Air Force in May 1995 and referred

to as the ‘‘Lightning Bolt’’ initiatives. The Secretary of the Navy

shall, not later than March 31, 1997, submit to the congressional

committees specified in subsection (e)(1) a report on the results

of the implementation of such initiatives.

(g) DESIGN RESPONSIBILITY.—(1) The Secretary of the Navy

shall carry out the submarine program described in section 131

of the National Defense Authorization Act for Fiscal Year 1996

in a manner that ensures that each of the two shipbuilders involved in the design and construction of the four submarines

described in that section be allowed to propose to the Secretary

any design improvement that the shipbuilder considers appropriate

for the submarines to be built by that shipbuilder as part of those

four submarines. The Secretary shall ensure that both shipbuilders

have full and open access to all design data concerning the design

of the submarine previously designated by the Navy as the New

Attack Submarine.

(2) The designs proposed by the shipbuilders should proceed

from, but not be limited to, the specific advanced technologies

referred to in subsection (b)(2)(A), especially technologies involving

hydrodynamics and hydroacoustics concepts.

(3) The Secretary shall require both shipbuilders to submit

to the Secretary an annual report on the progress of the design

work on the submarines referred to in paragraph (1) and shall

transmit each such report to the committees specified in subsection

(e)(1).

Reports.

Reports.

Certification.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2445

(4) The Secretary shall also submit an annual report to the

committees specified in subsection (e)(1) on the design improvements proposed by the two shipbuilders under paragraph (1) for

incorporation on any of the four submarines and on the degree

to which design information on the base design and design improvements has been shared between the shipbuilders. Each annual

report shall set forth each design improvement proposed and

whether that proposal was—

(A) reviewed, approved, and funded by the Navy;

(B) reviewed and approved, but not funded; or

(C) not approved, in which case the report shall include

the reasons therefor and any views of the shipyard making

the proposal.

(5) The reports referred to in paragraphs (3) and (4) shall

be submitted concurrently with the annual revisions to the Secretary of Defense’s nuclear attack submarine plan required by section 131(e) of the National Defense Authorization Act for Fiscal

Year 1996 (Public Law 104–106; 110 Stat. 209).

(h) SERIAL PRODUCTION.—The Secretary of Defense shall modify

the plan relating to development of a program leading to production

of a more capable and less expensive submarine than the New

Attack Submarine that was submitted to Congress pursuant to

section 131(c) of the National Defense Authorization Act for Fiscal

Year 1996 in order to provide in such plan the option for selection

of a design for a next submarine for serial production not earlier

than fiscal year 2002 (rather than fiscal year 2003, as provided

in paragraph (3)(B) of such section 131(c)).

(i) REFERENCES TO SHIPBUILDERS.—For purposes of this

section—

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

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

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

(j) SUBMARINES DEFINED BY REFERENCE TO FISCAL YEAR.—

For purposes of this section—

(1) the term ‘‘fiscal year 1998 submarine’’ means the submarine referred to in subsection (a)(1)(B); and

(2) the term ‘‘fiscal year 1999 submarine’’ means the submarine referred to in subsection (a)(1)(C).

SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

(a) FUNDING.—(1) Subject to paragraph (3), funds authorized

to be appropriated by section 102(a)(3) may be made available

for contracts entered into during fiscal year 1996 under subsection

(b)(1) of section 135 of the National Defense Authorization Act

for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 211) for

construction for the third of the three Arleigh Burke class destroyers

covered by that subsection. Such funds are in addition to amounts

made available for such contracts by the second sentence of subsection (a) of that section.

(2) Subject to paragraph (3), funds authorized to be appropriated by section 102(a)(3) may be made available for contracts

entered into during fiscal year 1997 under subsection (b)(2) of

such section 135 for construction (including advance procurement)

for the Arleigh Burke class destroyers covered by such subsection

(b)(2).

Reports.
110 STAT. 2446 PUBLIC LAW 104–201—SEPT. 23, 1996

(3) The aggregate amount of funds available under paragraphs

(1) and (2) for contracts referred to in such paragraphs may not

exceed $3,483,030,000.

(4) Within the amount authorized to be appropriated by section

102(a)(3), $525,000,000 is authorized to be appropriated for advance

procurement for construction for the Arleigh Burke class destroyers

authorized by subsection (b).

(b) AUTHORITY FOR MULTIYEAR PROCUREMENT OF TWELVE VESSELS.—The Secretary of the Navy is authorized, pursuant to section

2306b of title 10, United States Code, to enter into multiyear

contracts for the procurement of a total of 12 Arleigh Burke class

destroyers at a procurement rate of three ships in each of fiscal

years 1998, 1999, 2000, and 2001 in accordance with this subsection

and subsection (a)(4), subject to the availability of appropriations

for such destroyers. A contract for construction of one or more

vessels that is entered into in accordance with this subsection

shall include a clause that limits the liability of the Government

to the contractor for any termination of the contract.

SEC. 123. EA–6B AIRCRAFT REACTIVE JAMMER PROGRAM.

(a) LIMITATION.—None of the funds appropriated pursuant to

section 102(a)(1) for modifications or upgrades of EA–6B aircraft

may be obligated, other than for a reactive jammer program for

such aircraft, until 30 days after the date on which the Secretary

of the Navy submits to the congressional defense committees in

writing—

(1) a certification that some or all of such funds have

been obligated for a reactive jammer program for EA–6B aircraft; and

(2) a report that sets forth a detailed, well-defined program

for—

(A) developing a reactive jamming capability for EA–

6B aircraft; and

(B) upgrading the EA–6B aircraft of the Navy to incorporate the reactive jamming capability.

(b) CONTINGENT TRANSFER OF FUNDS TO AIR FORCE.—(1) If

the Secretary of the Navy has not submitted the certification and

report described in subsection (a) to the congressional defense

committees before June 1, 1997, then, on that date, the Secretary

of Defense shall transfer to the Air Force, out of appropriations

available to the Navy for fiscal year 1997 for procurement of aircraft,

the amount equal to the amount appropriated to the Navy for

fiscal year 1997 for modifications and upgrades of EA–6B aircraft.

(2) Funds transferred to the Air Force pursuant to paragraph

(1) shall be available for maintaining and upgrading the jamming

capability of EF–111 aircraft.

SEC. 124. T–39N TRAINER AIRCRAFT FOR THE NAVY.

The Secretary of the Navy may, using funds appropriated for

fiscal year 1996 for procurement of T–39N trainer aircraft for

the Navy that remain available for obligation for such purpose,

enter into a contract for the acquisition of T–39N aircraft for naval

flight officer training that are suitable for low-level training flights.

Such a contract may be entered into only after the Secretary complies with section 137 of the National Defense Authorization Act

for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 212).

Reports.

Certification.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2447

SEC. 125. PENGUIN MISSILE PROGRAM.

(a) MULTIYEAR PROCUREMENT AUTHORITY.—The Secretary of

the Navy may, in accordance with section 2306b of title 10, United

States Code, enter into multiyear procurement contracts for the

procurement of not more than 106 Penguin missile systems.

(b) LIMITATION ON TOTAL COST.—The total amount obligated

or expended for procurement of Penguin missile systems under

contracts under subsection (a) may not exceed $84,800,000.

Subtitle D—Air Force Programs

SEC. 131. REPEAL OF LIMITATION ON PROCUREMENT OF F–15E AIRCRAFT.

Section 134 of the National Defense Authorization Act for Fiscal

Years 1990 and 1991 (Public Law 101–189; 103 Stat. 1383) is

repealed.

SEC. 132. MODIFICATION TO MULTIYEAR PROCUREMENT AUTHORITY

FOR C–17 AIRCRAFT PROGRAM.

(a) MULTIYEAR CONTRACTS AUTHORIZED.—The Secretary of the

Air Force may enter into one or more multiyear contracts for

the procurement of C–17 aircraft (including the section 2703 contract entered into before the date of the enactment of this Act

under the authority of section 2703 of the Supplemental Appropriations Act of 1996 (title II of Public Law 104–134)). The total number

of aircraft contracted to be procured under such multiyear contracts

may not exceed 80. Any such contract shall be entered into in

accordance with section 2306b of title 10, United States Code (and

subject to such modifications as may be authorized by law in the

maximum period for such contracts specified in subsection (k) of

such section).

(b) REQUIREMENT TO NEGOTIATE OPTION TO CONVERT EXISTING

CONTRACT TO SIX PROGRAM YEARS.—The Secretary of the Air Force

shall negotiate with the prime contractor for the C–17 aircraft

program so as to achieve a contract option for the United States

under the section 2703 contract to convert the multiyear procurement period under that contract to a period of six program years

based upon the level of funding for that program for fiscal year

1997.

(c) CONTRACT PERIOD.—A contract entered into after the date

of the enactment of this Act on a multiyear basis under the authority of subsection (a) may (notwithstanding section 2306b(k) of title

10, United States Code) be for a period of six program years.

(d) SECTION 2703 CONTRACT DEFINED.—For purposes of this

section, the term ‘‘section 2703 contract’’ means the contract entered

into by the Secretary of the Air Force on May 31, 1996, with

the prime contractor for the C–17 aircraft program under the

authority of section 2703 of the Supplemental Appropriations Act

of 1996 (title II of Public Law 104–134) providing for a multiyear

procurement of C–17 aircraft over seven program years with an

option for the Secretary to convert that period to six program

years.
110 STAT. 2448 PUBLIC LAW 104–201—SEPT. 23, 1996

Subtitle E—Other Matters

SEC. 141. ASSESSMENTS OF MODERNIZATION PRIORITIES OF THE

RESERVE COMPONENTS.

(a) ASSESSMENTS REQUIRED.—Not later than December 1, 1996,

each officer referred to in subsection (b) shall submit to the congressional defense committees an assessment of the modernization priorities established for the reserve component or reserve components

for which that officer is responsible.

(b) RESPONSIBLE OFFICERS.—The officers required to submit

a report under subsection (a) are as follows:

(1) The Chief of the National Guard Bureau.

(2) The Chief of Army Reserve.

(3) The Chief of Air Force Reserve.

(4) The Director of Naval Reserve.

(5) The Commanding General, Marine Forces Reserve.

SEC. 142. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL AGENTS AND MUNITIONS.

Section 152 of the National Defense Authorization Act for Fiscal

Year 1996 (Public Law 104–106; 110 Stat. 214; 50 U.S.C. 1521

note) is amended by adding at the end the following new subsections:

‘‘(e) ASSESSMENT OF ALTERNATIVE TECHNOLOGIES FOR DEMILITARIZATION OF ASSEMBLED CHEMICAL MUNITIONS.—(1) In addition

to the assessment required by subsection (c), the Secretary of

Defense shall conduct an assessment of the chemical demilitarization program for destruction of assembled chemical munitions and

of the alternative demilitarization technologies and processes (other

than incineration) that could be used for the destruction of the

lethal chemical agents that are associated with these munitions,

while ensuring maximum protection for 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 and reduce the total cost of the

chemical agents and munitions destruction program. The assessment shall be conducted without regard to any limitation that

would otherwise apply to the conduct of such assessment under

any provision of law.

‘‘(2) The assessment shall be conducted in coordination with

the National Research Council.

‘‘(3) Among the alternatives, the assessment shall include a

determination of the cost of incineration of the current chemical

munitions stockpile by building incinerators at each existing facility

compared to the proposed cost of dismantling those same munitions,

neutralizing them at each storage site (other than Tooele Army

Depot or Johnston Atoll), and transporting the neutralized remains

and all munitions parts to a treatment, storage, and disposal facility

within the United States that has the necessary environmental

permits to undertake incineration of the material.

‘‘(4) Based on the results of the assessment, the Secretary

shall develop appropriate recommendations for revision of the

chemical demilitarization program.

‘‘(5) Not later than December 31, 1997, the Secretary of Defense

shall submit to Congress a report on the assessment conducted

in accordance with paragraph (1) and any recommendations for

Reports.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2449

revision of the chemical demilitarization program, including the

continued development of alternative demilitarization technologies

and processes other than incineration that could be used for the

destruction of the lethal chemical agents that are associated with

these assembled chemical munitions and the chemical munitions

demilitarization sites for which the selected technologies should

be developed.

‘‘(f) PILOT PROGRAM FOR DEMILITARIZATION OF CHEMICAL

AGENTS FOR ASSEMBLED MUNITIONS.—(1) If the Secretary of

Defense makes a decision to continue the development of an alternative demilitarization technology or process (other than incineration) that could be used for the destruction of the lethal chemical

agents that are associated with assembled chemical munitions,

$25,000,000 shall be available from the funds authorized to be

appropriated in section 107 of the National Defense Authorization

Act for Fiscal Year 1997 for the chemical agents and munitions

destruction program, in order to initiate a pilot program using

the selected alternative technology or process for the destruction

of chemical agents that are stored at these sites.

‘‘(2) Not less than 30 days before using funds to initiate the

pilot program under paragraph (1), the Secretary shall submit

notice in writing to Congress of the Secretary’s intent to do so.

‘‘(3) The pilot program shall be conducted at the selected chemical agent and munitions stockpile storage site for which the alternative technology or process is recommended.’’.

SEC. 143. EXTENSION OF AUTHORITY TO CARRY OUT ARMAMENT

RETOOLING AND MANUFACTURING SUPPORT INITIATIVE.

Section 193(a) of the Armament Retooling and Manufacturing

Support Act of 1992 (subtitle H of title I of Public Law 102–

484; 10 U.S.C. 2501 note) is amended by striking out ‘‘During

fiscal years 1993 through 1996’’ and inserting in lieu thereof ‘‘During

fiscal years 1993 through 1998’’.

TITLE II—RESEARCH, DEVELOPMENT,

TEST, AND EVALUATION

Subtitle A—Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Sec. 202. Amount for basic and applied research.

Sec. 203. Dual-use technology programs.

Sec. 204. Defense Special Weapons Agency.

Subtitle B—Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.

Sec. 212. Space-Based Infrared System program.

Sec. 213. Clementine 2 micro-satellite development program.

Sec. 214. Live-fire survivability testing of V–22 Osprey aircraft.

Sec. 215. Live-fire survivability testing of F–22 aircraft.

Sec. 216. Limitation on funding for F–16 tactical manned reconnaissance aircraft.

Sec. 217. Cost analysis of F–22 aircraft program.

Sec. 218. F–22 aircraft program reports.

Sec. 219. Cost-benefit analysis of F/A–18E/F aircraft program.

Sec. 220. Joint Advanced Strike Technology (JAST) program.

Sec. 221. Unmanned aerial vehicles.

Sec. 222. High altitude endurance unmanned aerial reconnaissance system.

Sec. 223. Cyclone class patrol craft self-defense.

Sec. 224. One-year extension of deadline for delivery of Enhanced Fiber Optic

Guided Missile (EFOG–M) system.

Sec. 225. Hydra–70 rocket product improvement program.

Notice.
110 STAT. 2450 PUBLIC LAW 104–201—SEPT. 23, 1996

Sec. 226. Federally funded research and development centers.

Sec. 227. Demilitarization of conventional munitions, rockets, and explosives.

Sec. 228. Research activities of the Defense Advanced Research Projects Agency relating to chemical and biological warfare defense technology.

Sec. 229. Certification of capability of United States to prevent illegal importation

of nuclear, biological, or chemical weapons.

Sec. 230. Nonlethal weapons and technologies programs.

Sec. 231. Counterproliferation support program.

Subtitle C—Ballistic Missile Defense Programs

Sec. 241. Funding for ballistic missile defense programs for fiscal year 1997.

Sec. 242. Certification of capability of United States to defend against single

ballistic missile.

Sec. 243. Report on ballistic missile defense and proliferation.

Sec. 244. Revision to annual report on ballistic missile defense program.

Sec. 245. Report on Air Force National Missile Defense Plan.

Sec. 246. Capability of National Missile Defense system.

Sec. 247. Actions to limit adverse effects on private sector employment of establishment of National Missile Defense Joint Program Office.

Sec. 248. ABM Treaty defined.

Subtitle D—Other Matters

Sec. 261. Maintenance and repair at Air Force installations.

Sec. 262. Report relating to Small Business Innovation Research Program.

Sec. 263. Amendment to University Research Initiative Support program.

Sec. 264. Amendments to Defense Experimental Program To Stimulate Competitive

Research.

Sec. 265. Elimination of report on the use of competitive procedures for the award

of certain contracts to colleges and universities.

Sec. 266. Pilot program for transfer of defense technology information to private

industry.

Sec. 267. Research under transactions other than contracts and grants.

Sec. 268. Desalting technologies.

Sec. 269. Evaluation of digital video network equipment used in Olympic games.

Sec. 270. Annual joint warfighting science and technology plan.

Subtitle E—National Oceanographic Partnership Program

Sec. 281. Findings.

Sec. 282. National Oceanographic Partnership Program.

Subtitle A—Authorization of

Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated for fiscal year

1997 for the use of the Department of Defense for research, development, test, and evaluation as follows:

(1) For the Army, $4,780,615,000.

(2) For the Navy, $8,068,299,000.

(3) For the Air Force, $14,756,366,000.

(4) For Defense-wide activities, $9,691,293,000, of which—

(A) $269,038,000 is authorized for the activities of the

Director, Test and Evaluation; and

(B) $21,968,000 is authorized for the Director of Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

(a) FISCAL YEAR 1997.—Of the amounts authorized to be appropriated by section 201, $4,031,343,000 shall be available for basic

research and applied research projects.

(b) BASIC RESEARCH AND APPLIED RESEARCH DEFINED.—For

purposes of this section, the term ‘‘basic research and applied

research’’ means work funded in program elements for defense
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2451

research and development under Department of Defense category

6.1 or 6.2.

SEC. 203. DUAL-USE TECHNOLOGY PROGRAM.

(a) ALLOCATION OF FUNDS.—Of the amount appropriated pursuant to the authorization in section 201(4), $85,000,000 shall be

available for the dual-use technology program under this section.

(b) DESIGNATION OF OFFICIAL FOR DUAL-USE PROGRAM.—(1)

The Secretary of Defense shall designate a senior official in the

Office of the Secretary of Defense to have as that official’s sole

responsibilities developing policy relating to, and ensuring effective

implementation of, the dual-use technology program of the Department of Defense. In carrying out such responsibilities, the official

shall ensure—

(A) that commercial technologies are integrated into current

and future military systems to the maximum extent practicable;

(B) that dual-use projects are coordinated with the joint

warfighting science and technology plan referred to in section

270; and

(C) that dual-use projects of the military departments and

the defense agencies are coordinated and avoid unnecessary

duplication.

(2) The senior official designated under paragraph (1) shall

carry out such responsibilities during the period beginning on October 1, 1996, and ending on September 30, 2000. Such official shall

report directly to the Under Secretary of Defense for Acquisition

and Technology.

(c) FUNDING REQUIREMENT.—Of the amounts appropriated

pursuant to the authorizations in section 201 for the Department

of Defense for science and technology programs for fiscal year

1997, at least 5 percent of such amounts shall be available only

for dual-use projects of the Department of Defense. The funds

made available under the preceding sentence are in addition to

the funds made available under subsection (a).

(d) LIMITATION ON OBLIGATIONS.—Funds made available pursuant to subsections (a) and (c) may be used for a dual-use project

only if the contract, cooperative agreement, or other transaction

by which the project is carried out is entered into through the

use of competitive procedures.

(e) TRANSFER AUTHORITY.—In addition to the transfer authority

provided in section 1001, the Secretary of Defense may transfer

funds made available pursuant to subsections (a) and (c) for a

dual-use project from a military department or defense agency

to another military department or defense agency to ensure efficient

implementation of the dual-use technology program. The Secretary

may delegate the authority provided in the preceding sentence

to the senior official designated under subsection (b).

(f) FEDERAL COST SHARE.—The share contributed by the Secretary of a military department or the head of a defense agency

for the cost of a dual-use project during fiscal year 1997 may

not be greater than 50 percent of the cost of the project for that

fiscal year.

(g) REPORT.—At the same time the President submits to Congress the budget for fiscal year 1998 pursuant to section 1105(a)

of title 31, United States Code, the Secretary of Defense shall

submit to Congress a report that specifies the investment strategy

Effective date.

Termination

date.
110 STAT. 2452 PUBLIC LAW 104–201—SEPT. 23, 1996

for the dual-use technology program to be conducted during fiscal

years 1998, 1999, and 2000.

(h) DEFINITIONS.—In this section:

(1) The term ‘‘dual-use technology program’’ means the

program of the Department of Defense under which research

or development of a dual-use technology (as defined in section

2491 of title 10, United States Code) is carried out and the

costs of which are shared between the Department of Defense

and non-Government entities. The term includes the dual-use

critical technology program established pursuant to section

2511 of title 10, United States Code.

(2) The term ‘‘dual-use project’’ means a project under

the dual-use technology program.

(3) The term ‘‘science and technology program’’ means a

program of a military department under which basic research,

applied research, or advanced technology development is carried

out.

SEC. 204. DEFENSE SPECIAL WEAPONS AGENCY.

There is hereby authorized to be appropriated for fiscal year

1997 the amount of $314,313,000 for the Defense Special Weapons

Agency, of which—

(1) $7,900,000 is for procurement;

(2) $218,330,000 is for research, development, test, and

evaluation; and

(3) $88,083,000 is for operations and maintenance.

Subtitle B—Program Requirements,

Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

(a) FUNDING.—Funds appropriated pursuant to the authorization of appropriations in section 201(3) are authorized to be made

available for space launch modernization for purposes and in

amounts as follows:

(1) For the Evolved Expendable Launch Vehicle program,

$44,457,000.

(2) For a competitive reusable launch vehicle program (program element 63401F), $25,000,000.

(b) LIMITATIONS.—(1) Of the funds made available for the

reusable launch vehicle program pursuant to subsection (a)(2), the

total amount obligated for such purpose may not exceed the total

amount allocated in the fiscal year 1997 current operating plan

of the National Aeronautics and Space Administration for the

Reusable Space Launch program of the National Aeronautics and

Space Administration.

(2) Of the funds made available for the Evolved Expendable

Launch Vehicle program pursuant to subsection (a)(1), the total

amount obligated for such purpose may not exceed $20,000,000

until the Secretary of Defense certifies to Congress that the Secretary has made available for obligation the funds, if any, that

are made available for the Reusable Launch Vehicle program pursuant to subsection (a)(2).

(c) COORDINATION OF ENGINE TESTING.—Not later than 90 days

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

and the Administrator of the National Aeronautics and Space

Plans.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2453

Administration shall submit to Congress a joint plan for coordinating and eliminating unnecessary duplication in the operations and

planned improvements of rocket engine and rocket engine component test facilities managed by the Department of the Air Force

and the National Aeronautics and Space Administration. The plan

shall provide, to the extent practical, for the development of commonly funded and commonly operated facilities.

SEC. 212. SPACE-BASED INFRARED SYSTEM PROGRAM.

(a) FUNDING.—Funds appropriated pursuant to the authorization of appropriations in section 201(3) are authorized to be made

available for the Space-Based Infrared System program for purposes

and in amounts as follows:

(1) For Space Segment High, $173,290,000.

(2) For Space Segment Low (the Space and Missile Tracking System), $247,221,000. (3) For Cobra Brass, $6,930,000.

(b) LIMITATION.—Not more than $100,000,000 of the funds

authorized to be made available under subsection (a)(1) may be

obligated or expended until the Secretary of Defense certifies to

Congress that the Secretary has made available the funds authorized to be made available under subsection (a)(2) for the purpose

of accelerating the deployment of the Space Segment Low (the

Space and Missile Tracking System).

(c) PROGRAM MANAGEMENT.—Before the submission of the

President’s budget for fiscal year 1998, the Secretary of Defense

shall conduct a review of the appropriate management responsibilities for the Space and Missile Tracking System, including whether

transferring such management responsibility from the Air Force

to the Ballistic Missile Defense Organization would result in

improved program efficiencies and support.

SEC. 213. CLEMENTINE 2 MICRO-SATELLITE DEVELOPMENT PROGRAM.

(a) AMOUNT FOR PROGRAM.—Of the amount authorized to be

appropriated under section 201(3), $50,000,000 shall be available

for the Clementine 2 micro-satellite near-Earth asteroid interception

mission.

(b) LIMITATION.—Of the funds authorized to be appropriated

pursuant to this Act for the global positioning system (GPS) Block

II F Satellite system, not more than $25,000,000 may be obligated

until the Secretary of Defense certifies to Congress that—

(1) funds appropriated for fiscal year 1996 for the

Clementine 2 Micro-Satellite development program have been

obligated in accordance with Public Law 104–106 and the Joint

Explanatory Statement of the Committee of Conference accompanying S. 1124 (House Report 104–450 (104th Congress, second session)); and

(2) the Secretary has made available for obligation the

funds appropriated for fiscal year 1997 for the purpose specified

in subsection (a).

SEC. 214. LIVE-FIRE SURVIVABILITY TESTING OF V–22 OSPREY AIRCRAFT.

(a) AUTHORITY FOR RETROACTIVE WAIVER.—The Secretary of

Defense may, in accordance with section 2366(c) of title 10, United

States Code, waive for the V–22 Osprey aircraft program the survivability tests required by that section, notwithstanding that such

program has entered engineering and manufacturing development.

Certification.

Review.

Certification.
110 STAT. 2454 PUBLIC LAW 104–201—SEPT. 23, 1996

(b) REPORT TO CONGRESS.—In exercising the waiver authority

in section 2366(c) of title 10, United States Code, the Secretary

shall submit to Congress a report explaining how the Secretary

plans to evaluate the survivability of the V–22 Osprey aircraft

system and assessing possible alternatives to realistic survivability

testing of the system.

(c) ALTERNATIVE SURVIVABILITY TEST REQUIREMENTS.—If the

Secretary of Defense submits in accordance with section 2366(c)(1)

of title 10, United States Code, a certification that live-fire testing

of the V–22 Osprey aircraft would be unreasonably expensive and

impractical, the Secretary shall require that components critical

to the survivability of the V–22 Osprey aircraft be subjected to

live-fire testing under an alternative live-fire testing program that,

by reason of the number of such components tested and the realism

of the threat environments under which the components are tested,

will yield test results that provide a sufficient basis for drawing

meaningful conclusions about the survivability of V–22 Osprey aircraft.

(d) FUNDING.—The funds required to carry out any alternative

live-fire testing of the V–22 Osprey aircraft system shall be made

available from amounts appropriated for the V–22 Osprey program.

SEC. 215. LIVE-FIRE SURVIVABILITY TESTING OF F–22 AIRCRAFT.

(a) AUTHORITY FOR RETROACTIVE WAIVER.—The Secretary of

Defense may, in accordance with section 2366(c) of title 10, United

States Code, waive for the F–22 aircraft program the survivability

tests required by that section, notwithstanding that such program

has entered engineering and manufacturing development.

(b) ALTERNATIVE SURVIVABILITY TEST REQUIREMENTS.—If the

Secretary of Defense submits in accordance with section 2366(c)(1)

of title 10, United States Code, a certification that live-fire testing

of the F–22 aircraft would be unreasonably expensive and impractical, the Secretary shall require that components and subsystems

critical to the survivability of the F–22 aircraft be subjected to

live-fire testing under an alternative live-fire testing program that,

by reason of the number of such components and subsystems tested

and the realism of the threat environments under which the components and subsystems are tested, will yield test results that provide

a sufficient basis for drawing meaningful conclusions about the

survivability of F–22 aircraft.

(c) FUNDING.—The funds required to carry out any alternative

live-fire testing of the F–22 aircraft system shall be made available

from amounts appropriated for the F–22 program.

SEC. 216. LIMITATION ON FUNDING FOR F–16 TACTICAL MANNED

RECONNAISSANCE AIRCRAFT.

(a) LIMITATION.—Effective on the date of the enactment of

this Act, not more than $50,000,000 (in fiscal year 1997 constant

dollars) may be obligated or expended for—

(1) research, development, test, and evaluation for, and

acquisition and modification of, the F–16 tactical manned reconnaissance aircraft program; and

(2) costs associated with the termination of such program.

(b) EXCEPTION.—The limitation in subsection (a) shall not apply

to obligations required for improvements planned before the date

of the enactment of this Act to incorporate the common data link

into the F–16 tactical manned reconnaissance aircraft.

Effective date.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2455

SEC. 217. COST ANALYSIS OF F–22 AIRCRAFT PROGRAM.

(a) REVIEW AND REPORT.—The Secretary of Defense shall direct

the Cost Analysis Improvement Group in the Office of the Secretary

of Defense to review the F–22 aircraft program, analyze and estimate the production costs of the program, and submit to the Secretary a report on the results of the review.

(b) CONTENT OF REPORT.—The report shall include—

(1) a comparison of—

(A) the results of the review, with

(B) the results of the last independent estimate of

production costs of the program that was prepared by the

Cost Analysis Improvement Group in July 1991; and

(2) a description of any major changes in programmatic

assumptions that have occurred since the estimate referred

to in paragraph (1)(B) was made, including any major change

in assumptions regarding the program schedule, the quantity

of aircraft to be developed and acquired, and the annual rates

of production, together with an assessment of the effects of

such changes on the program.

(c) SUBMISSION OF REPORT.—Not later than March 30, 1997,

the Secretary shall submit the report to the congressional defense

committees, together with the Secretary’s views on the matters

covered by the report.

(d) LIMITATION ON USE OF FUNDS PENDING SUBMISSION OF

REPORT.—Not more than 92 percent of the funds appropriated

for the F–22 aircraft program pursuant to the authorization of

appropriations in section 103(1) may be expended until the Secretary of Defense submits the report required under this section.

SEC. 218. F–22 AIRCRAFT PROGRAM REPORTS.

(a) ANNUAL REPORT.—(1) At the same time that the President

submits the budget for a fiscal year to Congress pursuant to section

1105(a) of title 31, United States Code, the Secretary of Defense

shall submit to Congress a report on event-based decisionmaking

for the F–22 aircraft program for that fiscal year. The Secretary

shall submit the report for fiscal year 1997 not later than October

1, 1996.

(2) The report for a fiscal year shall include the following:

(A) A discussion of each decision known within the Department of Defense as an ‘‘event-based decision’’ that is expected

to be made during that fiscal year regarding whether the F–

22 program is to proceed into a new phase or into a new

administrative subdivision of a phase.

(B) The criteria known within the Department of Defense

as ‘‘exit criteria’’ to be applied, for purposes of making the

event-based decision, in determining whether the F–22 aircraft

program has demonstrated the specific progress necessary for

proceeding into the new phase or administrative subdivision

of a phase.

(b) REPORT ON EVENT-BASED DECISIONS.—Not later than 30

days after an event-based decision has been made for the F–22

aircraft program, the Secretary of Defense shall submit to Congress

a report on the decision. The report shall include the following:

(1) A discussion of the commitments made, and the commitments to be made, under the program as a result of the decision.

(2) The exit criteria applied for purposes of the decision.
110 STAT. 2456 PUBLIC LAW 104–201—SEPT. 23, 1996

(3) How, in terms of the exit criteria, the program demonstrated the specific progress justifying the decision.

SEC. 219. COST-BENEFIT ANALYSIS OF F/A–18E/F AIRCRAFT PROGRAM.

(a) REPORT ON PROGRAM.—Not later than March 30, 1997,

the Secretary of Defense shall submit to the congressional defense

committees a report on the F/A–18E/F aircraft program.

(b) CONTENT OF REPORT.—The report shall contain the

following:

(1) A review of the F/A–18E/F aircraft program.

(2) An analysis and estimate of the production costs of

the program for the total number of aircraft realistically

expected to be procured at each of three annual production

rates as follows:

(A) 18 aircraft.

(B) 24 aircraft.

(C) 36 aircraft.

(3) A comparison of the costs and benefits of the program

with the costs and benefits of the F/A–18C/D aircraft program

taking into account the operational combat effectiveness of

the aircraft.

(c) LIMITATION ON USE OF FUNDS PENDING SUBMISSION OF

REPORT.—Not more than 90 percent of the funds authorized to

be appropriated by this Act for the procurement of F/A–18E/F

aircraft may be obligated or expended for procurement of such

aircraft before the date that is 30 days after the date on which

the congressional defense committees receive the report required

under subsection (a).

SEC. 220. JOINT ADVANCED STRIKE TECHNOLOGY (JAST) PROGRAM.

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

appropriated pursuant to the authorizations in section 201,

$602,069,000 shall be available only for advanced technology development for the Joint Advanced Strike Technology (JAST) program.

Of that amount—

(1) $259,833,000 shall be available only for program element 63800N in the budget of the Department of Defense

for fiscal year 1997;

(2) $263,836,000 shall be available only for program element 63800F in the budget of the Department of Defense

for fiscal year 1997; and

(3) $78,400,000 shall be available only for program element

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

year 1997.

(b) ANALYSIS OF FORCE STRUCTURE.—Of the amounts authorized to be appropriated by section 201 for the Joint Advanced

Strike Technology program, up to $10,000,000 shall be available

for the conduct of an analysis by the Institute for Defense Analyses

of the following:

(1) The weapon systems force structure required to meet

the anticipated range of threats projected by the intelligence

community for the period 2000 through 2025.

(2) Alternative force mixes, including, at a minimum, the

following force mixes:

(A) Joint Strike Fighter derivative aircraft; remanufactured AV–8 aircraft; F–18C/D, F–18E/F, AH–64, AH–1W,

RAH–66, F–14, F–16, F–15, F–117, F–22, B–1, B–2, and
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2457

B–52 aircraft; and air-to-surface and surface-to-surface

weapons systems.

(B) Joint Strike Fighter derivative aircraft; remanufactured AV–8 aircraft; F–18C/D, F–18E/F, F–14, F–16, F–

15, F–117, and F–22 aircraft; and air-to-surface and surface-to-surface weapons systems.

(3) Cost and operational effectiveness of the alternative

force mixes analyzed under paragraph (2), including sensitivity

analyses related to system performance, costs, threats, and

force employment scenarios.

(4) Required operational capability dates of systems not

yet in production for the force mixes analyzed under paragraph

(2).

(5) Affordability, commonality, and roles and missions

considerations related to the alternative force mixes analyzed

under paragraph (2).

(c) COST REVIEW OF FORCE STRUCTURE ANALYSIS.—The Secretary of Defense shall direct the Cost Analysis Improvement Group

in the Office of the Secretary of Defense to review cost estimates

made under the analysis conducted under subsection (b) and submit

to the Secretary a report on the results of the review. The report

may include comments and additional cost sensitivity analyses.

(d) BRIEFING AND REPORT.—(1) Not later than November 15,

1996, the Secretary of Defense shall make available to the congressional defense committees a briefing on the plan and assumptions

for the analysis to be conducted under subsection (b).

(2) Not later than May 15, 1997, the Secretary of Defense

shall submit to the congressional defense committees a report

containing a copy of the analysis conducted under subsection (b)

and of the cost review conducted under subsection (c), together

with the views of the Secretary on such analysis and cost review.

SEC. 221. UNMANNED AERIAL VEHICLES.

(a) PROCUREMENT FUNDING REQUEST.—The funding request for

procurement for unmanned aerial vehicles for any fiscal year shall

be set forth under the funding requests for the military departments

in the budget of the Department of Defense.

(b) TRANSFER OF PROGRAM MANAGEMENT.—Program management for the Predator Unmanned Aerial Vehicle, and programmed

funding for such vehicle for fiscal years 1998, 1999, 2000, 2001,

and 2002 (as set forth in the future-years defense program), shall

be transferred to the Department of the Air Force, effective October

1, 1996, or the date of the enactment of this Act, whichever is

later.

(c) PROHIBITION ON PROVIDING OPERATING CAPABILITY FROM

NAVAL VESSELS.—No funds authorized to be appropriated by this

Act may be obligated for purposes of providing the capability of

the Predator Unmanned Aerial Vehicle to operate from naval

vessels.

SEC. 222. HIGH ALTITUDE ENDURANCE UNMANNED AERIAL RECONNAISSANCE SYSTEM.

Any concepts for an improved Tier III Minus (High Altitude

Endurance Unmanned Aerial Reconnaissance) system, developed

using funds authorized to be appropriated under this title, that

would increase the unit flyaway cost for such system to an amount

greater than the unit flyaway cost established in either of the

original contracts for such system, may not be carried out under

Effective date.

Reports.
110 STAT. 2458 PUBLIC LAW 104–201—SEPT. 23, 1996

the original contracts, but must instead be carried out under

another contract that is awarded using competitive procedures.

SEC. 223. CYCLONE CLASS PATROL CRAFT SELF-DEFENSE.

(a) STUDY REQUIRED.—The Secretary of Defense shall perform

a study of the operational requirements for vessel self-defense for

the Cyclone class patrol craft and a comparative evaluation of

the potential means for meeting the operational requirements for

self-defense of the craft. The study shall consider the range of

operational scenarios in which the craft is expected to be employed.

(b) SYSTEMS TO BE EVALUATED.—The study under subsection

(a) shall consider those self-defense systems that could be employed

aboard the Cyclone class patrol craft, including the Barak ship

self-defense missile system.

(c) REPORT.—Not later than March 31, 1997, the Secretary

shall submit to Congress a report containing the results of the

study under subsection (a).

SEC. 224. ONE-YEAR EXTENSION OF DEADLINE FOR DELIVERY OF

ENHANCED FIBER OPTIC GUIDED MISSILE (EFOG–M)

SYSTEM.

Section 272(a)(2) of the National Defense Authorization Act

for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 239) is amended

by striking out ‘‘September 30, 1998,’’ and inserting in lieu thereof

‘‘September 30, 1999,’’.

SEC. 225. HYDRA–70 ROCKET PRODUCT IMPROVEMENT PROGRAM.

(a) FUNDING AUTHORIZATION.—Of the amount authorized to

be appropriated under section 201(1) for the Army for Other Missile

Product Improvement Programs, $9,000,000 is authorized as specified in subsection (b) for completion of the Hydra–70 product

improvement program authorized for fiscal year 1996.

(b) AUTHORIZED ACTIONS.—Funding is authorized to be appropriated for the following:

(1) Procurement for test and flight qualification of at least

one nondevelopmental item 2.75-inch composite rocket motor

propellant type, along with other nondevelopmental item candidate motors that use composite propellant as the propulsion

component.

(2) Platform integration, including additional quantities of

the motor chosen for operational certification on the Apache

attack helicopter.

(c) DEFINITION.—In this section, the term ‘‘nondevelopmental

item’’ has the meaning provided in section 4 of the Office of Federal

Procurement Policy Act (41 U.S.C. 403).

SEC. 226. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT

CENTERS.

(a) CENTERS COVERED.—Funds authorized to be appropriated

for the Department of Defense for fiscal year 1997 under section

201 may be obligated to procure work from a federally funded

research and development center (in this section referred to as

an ‘‘FFRDC’’) 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
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2459

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 from which work is proposed

to be procured for the Department of Defense for fiscal year

1997;

(B) for each such center, the proposed funding level and

the estimated personnel level for fiscal year 1997; and

(C) for each such center, an unambiguous definition of

the unique core competencies required to be maintained for

fiscal year 1997.

(2) The total of the proposed funding levels set forth in the

report for all FFRDCs may not exceed the amount set forth in

subsection (d).

(c) LIMITATION PENDING SUBMISSION OF REPORT.—Not more

than 15 percent of the funds authorized to be appropriated for

the Department of Defense for fiscal year 1997 for FFRDCs under

section 201 may be obligated to procure work from an FFRDC

until the Secretary of Defense submits the report required by subsection (b).

(d) FUNDING.—(1) Subject to paragraph (2), of the amounts

authorized to be appropriated by section 201, not more than a

total of $1,214,650,000 may be obligated to procure services from

the FFRDCs named in the report required by subsection (b).

(2) The limitation in paragraph (1) does not apply to funds

obligated for the procurement of equipment for FFRDCs.

(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. 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.

SEC. 227. DEMILITARIZATION OF CONVENTIONAL MUNITIONS,

ROCKETS, AND EXPLOSIVES.

(a) ESTABLISHMENT OF CONVENTIONAL MUNITIONS, ROCKETS,

AND EXPLOSIVES DEMILITARIZATION PROGRAM.—The Secretary of

Defense shall establish an integrated program for the development

and demonstration of technologies for the demilitarization and disposal of conventional munitions, rockets, and explosives in a manner

that complies with applicable environmental laws.

(b) DURATION OF PROGRAM.—The program established pursuant

to subsection (a) shall be in effect for a period of at least five

years, beginning with fiscal year 1997.

(c) FUNDING.—Of the amount authorized to be appropriated

in section 201, $15,000,000 is authorized to be appropriated for

the program established pursuant to subsection (a). The funding

request for the program shall be set forth separately in the budget

Effective date.

Notice.
110 STAT. 2460 PUBLIC LAW 104–201—SEPT. 23, 1996

justification documents for the budget of the Department of Defense

for each fiscal year during which the program is in effect.

(d) REPORTS.—The Secretary of Defense shall submit to Congress a report on the plan for the program established pursuant

to subsection (a) at the same time the President submits to Congress

the budget for fiscal year 1998. The Secretary shall submit an

updated version of such report, setting forth in detail the progress

of the program, at the same time the President submits the budget

for each fiscal year after fiscal year 1998 during which the program

is in effect.

SEC. 228. RESEARCH ACTIVITIES OF THE DEFENSE ADVANCED

RESEARCH PROJECTS AGENCY RELATING TO CHEMICAL

AND BIOLOGICAL WARFARE DEFENSE TECHNOLOGY.

(a) AUTHORITY.—Section 1701(c) of the National Defense

Authorization Act for Fiscal Year 1994 (Public Law 103–160; 107

Stat. 1853; 50 U.S.C. 1522) is amended—

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

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

‘‘(2) The Director of the Defense Advanced Research Projects

Agency may conduct a program of basic and applied research and

advanced technology development on chemical and biological warfare defense technologies and systems. In conducting such program,

the Director shall seek to avoid unnecessary duplication of the

activities under the program with chemical and biological warfare

defense activities of the military departments and defense agencies

and shall coordinate the activities under the program with those

of the military departments and defense agencies.’’.

(b) FUNDING.—Section 1701(d) of such Act is amended—

(1) in paragraph (1), by striking out ‘‘military departments’’

and inserting in lieu thereof ‘‘Department of Defense’’;

(2) in paragraph (2), by inserting after ‘‘requests for the

program’’ in the first sentence the following: ‘‘(other than for

activities under the program conducted by the Defense

Advanced Research Projects Agency under subsection (c)(2))’’;

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

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

‘‘(3) The program conducted by the Defense Advanced Research

Projects Agency under subsection (c)(2) shall be set forth as a

separate program element in the budget of that agency.’’.

SEC. 229. CERTIFICATION OF CAPABILITY OF UNITED STATES TO PREVENT ILLEGAL IMPORTATION OF NUCLEAR, BIOLOGICAL,

AND CHEMICAL WEAPONS.

Not later than 15 days after the date of the enactment of

this Act, the President shall submit to Congress a certification

in writing stating specifically whether or not the United States

has the capability (as of the date of the certification) to prevent

the illegal importation of nuclear, biological, and chemical weapons

into the United States and its possessions.

SEC. 230. NONLETHAL WEAPONS AND TECHNOLOGIES PROGRAMS.

(a) FUNDING.—Of the amount authorized to be appropriated

under section 201(2), $15,000,000 shall be available for joint service

research, development, test, and evaluation of nonlethal weapons

and nonlethal technologies under the program element established

pursuant to subsection (b).

President.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2461

(b) NEW PROGRAM ELEMENT REQUIRED.—The Secretary of

Defense shall establish a new program element for the funds authorized to be appropriated under subsection (a). The funds within

that program element shall be administered by the executive agent

designated for joint service research, development, test, and evaluation of nonlethal weapons and nonlethal technologies.

SEC. 231. COUNTERPROLIFERATION SUPPORT PROGRAM.

(a) FUNDING.—Of the funds authorized to be appropriated to

the Department of Defense under section 201(4), $186,200,000 shall

be available for the Counterproliferation Support Program, of which

$75,000,000 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 1997 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 (22 U.S.C. 2751 note). 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.

(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.

(c) LIMITATION ON USE OF FUNDS FOR TECHNICAL STUDIES

AND ANALYSES PENDING RELEASE OF FUNDS.—(1) None of the funds

authorized to be appropriated to the Department of Defense for

fiscal year 1997 for program element 605104D, relating to technical

studies and analyses, may be obligated or expended until the funds

referred to in paragraph (2) have been released to the program

manager of the tactical anti-satellite technology program for

implementation of that program.

(2) The funds for release referred to in paragraph (1) are

as follows:

(A) Funds authorized to be appropriated by section 218(a)

of the National Defense Authorization Act for Fiscal Year 1996

(Public Law 104–106; 110 Stat. 222) that are available for

the program referred to in paragraph (1).

(B) Funds authorized to be appropriated to the Department

for fiscal year 1997 by this Act for the Counterproliferation

Notification.
110 STAT. 2462 PUBLIC LAW 104–201—SEPT. 23, 1996

Support Program that are to be made available for that program.

Subtitle C—Ballistic Missile Defense

Programs

SEC. 241. FUNDING FOR BALLISTIC MISSILE DEFENSE PROGRAMS

FOR FISCAL YEAR 1997.

(a) PROGRAM AMOUNTS.—Of the amount appropriated pursuant

to section 201(4), the following amounts may be obligated for the

following systems managed by the Ballistic Missile Defense

Organization:

(1) For the Theater High Altitude Area Defense (THAAD) System, $621,798,000.

(2) For the Navy Upper Tier (Theater Wide) system, $304,171,000. (3) For the National Missile Defense System, $858,437,000.

(4) For the Corps Surface-to-Air Missile (SAM)/Medium Extended Air Defense System (MEADS), $56,200,000.

(b) LIMITATION.—None of the funds appropriated or otherwise

made available for the Department of Defense pursuant to this

or any other Act may be obligated or expended by the Office of

the Under Secretary of Defense for Acquisition and Technology

for official representation activities, or related activities, until the

Secretary of Defense certifies to Congress that—

(1) the Secretary has made available for obligation the

funds provided under subsection (a) for the purposes specified

in that subsection and in the amounts appropriated pursuant

to that subsection; and

(2) the Secretary has included the Navy Upper Tier theater

missile defense system in the theater missile defense core program.

(c) LIMITATIONS.—Not more than $15,000,000 of the amount

available for the Corps SAM/MEADS program under subsection

(a) may be obligated until the Secretary of Defense submits to

the congressional defense committees the following:

(1) An initial program estimate for the Corps SAM/MEADS

program, including a tentative schedule of major milestones

and an estimate of the total program cost through initial operational capability.

(2) A report on the options associated with the use of

existing systems, technologies, and program management

mechanisms to satisfy the requirement for the Corps surfaceto-air missile, including an assessment of cost and schedule

implications in relation to the program estimate submitted

under paragraph (1).

(3) A certification that there will be no increase in overall

United States funding commitment to the project definition

and validation phase of the Corps SAM/MEADS program as

a result of the withdrawal of France from participation in

the program.

SEC. 242. CERTIFICATION OF CAPABILITY OF UNITED STATES TO

DEFEND AGAINST SINGLE BALLISTIC MISSILE.

Not later than 15 days after the date of the enactment of

this Act, the President shall submit to Congress a certification

President.

Certification.

Reports.

Certification.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2463

in writing stating specifically whether or not the United States

has the military capability (as of the time of the certification)

to intercept and destroy a single ballistic missile launched at the

territory of the United States.

SEC. 243. REPORT ON BALLISTIC MISSILE DEFENSE AND PROLIFERATION.

The Secretary of Defense shall submit to Congress a report

on ballistic missile defense and the proliferation of weapons of

mass destruction, including nuclear, chemical, and biological weapons, and the missiles that can be used to deliver them. The report

shall be submitted not later than December 31, 1996, and shall

include the following:

(1) An assessment of how United States theater missile

defenses contribute to United States efforts to prevent proliferation, including an evaluation of the specific effect United States

theater missile defense systems can have on dissuading other

states from acquiring ballistic missiles.

(2) An assessment of how United States national missile

defenses contribute to United States efforts to prevent proliferation.

(3) An assessment of the effect of the lack of national

missile defenses on the desire of other states to acquire ballistic

missiles and an evaluation of the types of missiles other states

might seek to acquire as a result.

(4) A detailed review of the linkages between missile

defenses (both theater and national) and each of the categories

of counterproliferation activities identified by the Secretary of

Defense as part of the Defense Counterproliferation Initiative

announced by the Secretary in December 1993.

(5) A description of how theater and national ballistic missile defenses can augment the effectiveness of other

counterproliferation tools.

SEC. 244. REVISION TO ANNUAL REPORT ON BALLISTIC MISSILE

DEFENSE PROGRAM.

Section 224(b) of the National Defense Authorization Act for

Fiscal Years 1990 and 1991 (10 U.S.C. 2431 note) is amended—

(1) by striking out paragraphs (3), (4), and (10);

(2) by redesignating paragraphs (5) and (6) as paragraphs

(3) and (4), respectively;

(3) by redesignating paragraph (7) as paragraph (5) and

in that paragraph by striking out ‘‘of the Soviet Union’’ and

‘‘for the Soviet Union’’;

(4) by redesignating paragraph (8) as paragraph (6); and

(5) by redesignating paragraph (9) as paragraph (7) and

in that paragraph—

(A) by striking out ‘‘of the Soviet Union’’ in subparagraph (A);

(B) by striking out subparagraphs (C) through (F);

and

(C) by redesignating subparagraph (G) as subparagraph (C).

SEC. 245. REPORT ON AIR FORCE NATIONAL MISSILE DEFENSE PLAN.

Not later than 120 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
110 STAT. 2464 PUBLIC LAW 104–201—SEPT. 23, 1996

Security of the House of Representatives a report on the following

matters regarding the National Missile Defense Plan of the Air

Force:

(1) The cost and operational effectiveness of a system that

could be developed pursuant to that plan.

(2) The arms control implications of such a system.

(3) The growth potential of such a system to meet future

threats.

(4) The recommendations of the Secretary for improvements

to that plan.

SEC. 246. CAPABILITY OF NATIONAL MISSILE DEFENSE SYSTEM.

The Secretary of Defense shall ensure that any National Missile

Defense system deployed by the United States is capable of defeating the threat posed by the Taepo Dong II missile of North Korea.

SEC. 247. ACTIONS TO LIMIT ADVERSE EFFECTS ON PRIVATE SECTOR

EMPLOYMENT OF ESTABLISHMENT OF NATIONAL MISSILE

DEFENSE JOINT PROGRAM OFFICE.

The Secretary of Defense shall take such actions as are necessary in connection with the establishment of the National Missile

Defense Joint Program Office within the Ballistic Missile Defense

Organization to ensure that the establishment of that office does

not make it necessary for a Federal Government contractor to

reduce significantly the number of persons employed by that contractor for supporting the national missile defense development

program at any particular location outside the National Capital

Region (as defined in section 2674(f)(2) of title 10, United States

Code).

SEC. 248. 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.

Subtitle D—Other Matters

SEC. 261. MAINTENANCE AND REPAIR AT AIR FORCE INSTALLATIONS.

(a) ALLOCATION OF FUNDS.—The Secretary of the Air Force

shall allocate funds authorized to be appropriated by this title

and title III of this Act for maintenance and repair of real property

at military installations of the Department of the Air Force without

regard to whether the installation is supported with funds authorized by this title or title III of this Act.

(b) MIXING OF FUNDS PROHIBITED ON INDIVIDUAL PROJECTS.—

The Secretary of the Air Force may not combine funds authorized

to be appropriated by this title and funds authorized to be appropriated by title III for an individual project for maintenance and

repair of real property at a military installation of the Department

of the Air Force.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2465

SEC. 262. REPORT RELATING TO SMALL BUSINESS INNOVATION

RESEARCH PROGRAM.

Not later than March 30, 1997, the Comptroller General shall

submit to Congress and to the Secretary of Defense a report setting

forth the following with respect to the Small Business Innovation

Research Program (as defined by section 2491(11) of title 10, United

States Code):

(1) An assessment of whether there has been a demonstrable reduction in the quality of research performed under

funding agreements awarded by the Department of Defense

under the program since fiscal year 1995.

(2) An assessment of the degree to which competitive procedures are being followed throughout the military departments

and defense agencies in awarding funding agreements under

the program.

(3) An assessment of the degree to which technologies

developed through the program are or are likely to be used

in military projects and programs.

SEC. 263. AMENDMENT TO UNIVERSITY RESEARCH INITIATIVE SUPPORT PROGRAM.

Section 802(c) of the National Defense Authorization Act for

Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1701; 10 U.S.C.

2358 note) is amended by striking out ‘‘fiscal years before the

fiscal year in which the institution submits a proposal’’ and inserting

in lieu thereof ‘‘most recent fiscal years for which complete statistics

are available when proposals are requested’’.

SEC. 264. AMENDMENTS TO DEFENSE EXPERIMENTAL PROGRAM TO

STIMULATE COMPETITIVE RESEARCH.

Section 257(d) 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—

(1) in paragraph (1)—

(A) by striking out ‘‘Director of the National Science

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

of Defense for Acquisition and Technology’’; and

(B) by striking out ‘‘and shall notify the Director of

Defense Research and Engineering of the States so designated’’; and

(2) in paragraph (2)—

(A) in the matter preceding subparagraph (A)—

(i) by striking out ‘‘Director of the National Science

Foundation’’ and inserting in lieu thereof ‘‘Under Secretary of Defense for Acquisition and Technology’’; and

(ii) by striking out ‘‘as determined by the Director’’

and inserting in lieu thereof ‘‘as determined by the

Under Secretary’’;

(B) in subparagraph (A), by striking out ‘‘(to be determined in consultation with the Secretary of Defense);’’ and

inserting in lieu thereof ‘‘; and’’;

(C) by striking out ‘‘; and’’ at the end of subparagraph

(B) and inserting in lieu thereof a period; and

(D) by striking out subparagraph (C).
110 STAT. 2466 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 265. ELIMINATION OF REPORT ON THE USE OF COMPETITIVE

PROCEDURES FOR THE AWARD OF CERTAIN CONTRACTS

TO COLLEGES AND UNIVERSITIES.

Section 2361 of title 10, United States Code, is amended by

striking out subsection (c).

SEC. 266. PILOT PROGRAM FOR TRANSFER OF DEFENSE TECHNOLOGY INFORMATION TO PRIVATE INDUSTRY.

(a) PROGRAM REQUIRED.—The Secretary of Defense shall carry

out a pilot program to demonstrate online transfers of information

on defense technologies to businesses in the private sector through

an interactive data network involving Small Business Development

Centers of institutions of higher education.

(b) COMPUTERIZED DATA BASE OF DEFENSE TECHNOLOGIES.—

(1) Under the pilot program, the Secretary shall enter into an

agreement with the head of an eligible institution of higher education that provides for such institution—

(A) to develop and maintain a computerized data base

of information on defense technologies;

(B) to make such information available online to—

(i) businesses; and

(ii) other institutions of higher education entering into

partnerships with the Secretary under subsection (c).

(2) The online accessibility may be established by means of

any of, or any combination of, the following:

(A) Digital teleconferencing.

(B) International Signal Digital Network lines.

(C) Direct modem hookup.

(c) PARTNERSHIP NETWORK.—Under the pilot program, the Secretary shall seek to enter into agreements with the heads of several

eligible institutions of higher education having strong business education programs to provide for the institutions of higher education

entering into such agreements—

(1) to establish interactive computer links with the data

base developed and maintained under subsection (b); and

(2) to assist the Secretary in making information on defense

technologies available online to the broadest practicable number, types, and sizes of businesses.

(d) ELIGIBLE INSTITUTIONS.—For the purposes of this section,

an institution of higher education is eligible to enter into an agreement under subsection (b) or (c) if the institution has a Small

Business Development Center.

(e) DEFENSE TECHNOLOGIES COVERED.—(1) The Secretary shall

designate the technologies to be covered by the pilot program from

among the existing and experimental technologies that the Secretary determines—

(A) are useful in meeting Department of Defense needs;

and

(B) should be made available under the pilot program to

facilitate the satisfaction of such needs by private sector

sources.

(2) Technologies covered by the program should include technologies useful for defense purposes that can also be used for

nondefense purposes (with or without modification).

(f) DEFINITIONS.—In this section:

Contracts.

Contracts.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2467

(1) The term ‘‘Small Business Development Center’’ means

a small business development center established pursuant to

section 21 of the Small Business Act (15 U.S.C. 648).

(2) The term ‘‘defense technology’’ means a technology designated by the Secretary of Defense under subsection (d).

(3) The term ‘‘partnership’’ means an agreement entered

into under subsection (c).

(g) TERMINATION OF PILOT PROGRAM.—The pilot program shall

terminate one year after the Secretary enters into an agreement

under subsection (b).

(h) AUTHORIZATION OF APPROPRIATIONS.—Of the amount

authorized to be appropriated under section 201(4) for university

research initiatives, $3,000,000 is available for the pilot program.

SEC. 267. RESEARCH UNDER TRANSACTIONS OTHER THAN CONTRACTS AND GRANTS.

(a) CONDITIONS FOR USE OF AUTHORITY.—Subsection (e) of section 2371 of title 10, United States Code, is amended—

(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B);

(2) by inserting ‘‘and’’ after the semicolon at the end of

subparagraph (A), as so redesignated;

(3) by striking out ‘‘; and’’ at the end of subparagraph

(B), as so redesignated, and inserting in lieu thereof a period;

(4) by inserting ‘‘(1)’’ after ‘‘(e) CONDITIONS.—’’; and

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

thereof the following:

‘‘(2) A cooperative agreement containing a clause under subsection (d) or a transaction authorized by subsection (a) may be

used for a research project when the use of a standard contract,

grant, or cooperative agreement for such project is not feasible

or appropriate.’’.

(b) REVISED REQUIREMENT FOR ANNUAL REPORT.—Section 2371

of such title is amended by striking out subsection (h) and inserting

in lieu thereof the following:

‘‘(h) ANNUAL REPORT.—(1) Not later than 90 days after the

end 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 use by the Department of Defense during such fiscal

year of—

‘‘(A) cooperative agreements authorized under section 2358

of this title that contain a clause under subsection (d); and

‘‘(B) transactions authorized by subsection (a).

‘‘(2) The report shall include, with respect to the cooperative

agreements and other transactions covered by the report, the

following:

‘‘(A) The technology areas in which research projects were

conducted under such agreements or other transactions.

‘‘(B) The extent of the cost-sharing among Federal Government and non-Federal sources.

‘‘(C) The extent to which the use of the cooperative agreements and other transactions—

‘‘(i) has contributed to a broadening of the technology

and industrial base available for meeting Department of

Defense needs; and
110 STAT. 2468 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(ii) has fostered within the technology and industrial

base new relationships and practices that support the

national security of the United States.

‘‘(D) The total amount of payments, if any, that were

received by the Federal Government during the fiscal year

covered by the report pursuant to a clause described in subsection (d) that was included in the cooperative agreements

and other transactions, and the amount of such payments,

if any, that were credited to each account established under

subsection (f).’’.

(c) DIVISION OF SECTION INTO DISTINCT PROVISIONS BY SUBJECT

MATTER.—(1) Chapter 139 of title 10, United States Code, is

amended—

(A) by inserting before the last subsection of section 2371

(relating to cooperative research and development agreements

under the Stevenson-Wydler Technology Innovation Act of 1980)

the following:

‘‘§ 2371a. Cooperative research and development agreements

under Stevenson-Wydler Technology Innovation

Act of 1980’’;

(B) in section 2371a (as designated by the amendment

made by subparagraph (A)), by striking out ‘‘(i) COOPERATIVE

RESEARCH AND DEVELOPMENT AGREEMENTS UNDER STEVENSONWYDLER TECHNOLOGY INNOVATION ACT OF 1980.—’’; and

(C) in the table of sections at the beginning of such chapter,

by inserting after the item relating to section 2371 the following:

‘‘2371a. Cooperative research and development agreements under Stevenson-Wydler

Technology Innovation Act of 1980.’’.

(2) Section 2358(d) of such title is amended by striking out

‘‘section 2371’’ and inserting in lieu thereof ‘‘sections 2371 and

2371a’’.

SEC. 268. DESALTING TECHNOLOGIES.

(a) FINDINGS.—Congress makes the following findings:

(1) Access to scarce fresh water is likely to be a cause

of future military conflicts in the Middle East and has a direct

impact on stability and security in the region.

(2) The Middle East is an area of vital and strategic importance to the United States.

(3) The United States has played a military role in the

Middle East, most recently in the Persian Gulf War, and may

likely be called upon again to deter aggression in the region.

(4) United States troops have used desalting technologies

to guarantee the availability of fresh water in past deployments

in the Middle East.

(5) Adequate, efficient, and cheap access to high-quality

fresh water will be vital to maintaining the readiness and

sustainability of troops of both the United States and its allies.

(b) SENSE OF CONGRESS.—It is the sense of Congress that,

as improved access to fresh water will be an important factor

in helping prevent future conflicts in the Middle East, the United

States should, in cooperation with its allies, promote and invest

in technologies to reduce the costs of converting saline water into

fresh water.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2469

(c) FUNDING FOR RESEARCH AND DEVELOPMENT.—Of the

amounts authorized to be appropriated by this title, the Secretary

shall place greater emphasis on making funds available for research

and development into efficient and economical processes and methods for converting saline water into fresh water.

SEC. 269. EVALUATION OF DIGITAL VIDEO NETWORK EQUIPMENT

USED IN OLYMPIC GAMES.

(a) EVALUATION.—The Secretary of Defense shall evaluate the

digital video network equipment used in the 1996 Olympic games

to determine whether such equipment would be the most appropriate equipment for use as a test bed for the military application

of commercial off-the-shelf advanced technology linking multiple

continents, multiple satellites, and multiple theaters of operations

by compressed digital audio and visual broadcasting technology.

(b) REPORT.—Not later than April 1, 1997, the Secretary of

Defense shall submit to Congress a report on the results of the

evaluation conducted under subsection (a).

SEC. 270. ANNUAL JOINT WARFIGHTING SCIENCE AND TECHNOLOGY

PLAN.

(a) ANNUAL PLAN REQUIRED.—On 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 plan for ensuring that the science

and technology program of the Department of Defense supports

the development of the future joint warfighting capabilities identified as priority requirements for the Armed Forces.

(b) FIRST PLAN.—The first plan under subsection (a) shall be

submitted not later than March 1, 1997.

Subtitle E—National Oceanographic

Partnership Program

SEC. 281. FINDINGS.

Congress finds the following:

(1) The oceans and coastal areas of the United States

are among the Nation’s most valuable natural resources, making substantial contributions to economic growth, quality of

life, and national security.

(2) Oceans drive global and regional climate. Hence, they

contain information affecting agriculture, fishing, and the prediction of severe weather.

(3) Understanding of the oceans through basic and applied

research is essential for using the oceans wisely and protecting

their limited resources. Therefore, the United States should

maintain its world leadership in oceanography as one key to

its competitive future.

(4) Ocean research and education activities take place

within Federal agencies, academic institutions, and industry.

These entities often have similar requirements for research

facilities, data, and other resources (such as oceanographic

research vessels).

(5) The need exists for a formal mechanism to coordinate

existing partnerships and establish new partnerships for the

sharing of resources, intellectual talent, and facilities in the

10 USC 7901

note.

10 USC 2501

note.
110 STAT. 2470 PUBLIC LAW 104–201—SEPT. 23, 1996

ocean sciences and education, so that optimal use can be made

of this most important natural resource for the well-being of

all Americans.

SEC. 282. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM.

(a) PROGRAM REQUIRED.—(1) Subtitle C of title 10, United

States Code, is amended by adding after chapter 663 the following

new chapter:

‘‘CHAPTER 665—NATIONAL OCEANOGRAPHIC

PARTNERSHIP PROGRAM

‘‘Sec.

‘‘7901. National Oceanographic Partnership Program.

‘‘7902. National Ocean Research Leadership Council.

‘‘7903. Ocean Research Advisory Panel.

‘‘§ 7901. National Oceanographic Partnership Program

‘‘(a) ESTABLISHMENT.—The Secretary of the Navy shall establish

a program to be known as the ‘National Oceanographic Partnership

Program’.

‘‘(b) PURPOSES.—The purposes of the program are as follows:

‘‘(1) To promote the national goals of assuring national

security, advancing economic development, protecting quality

of life, and strengthening science education and communication

through improved knowledge of the ocean.

‘‘(2) To coordinate and strengthen oceanographic efforts

in support of those goals by—

‘‘(A) identifying and carrying out partnerships among

Federal agencies, academia, industry, and other members

of the oceanographic scientific community in the areas

of data, resources, education, and communication; and

‘‘(B) reporting annually to Congress on the program.

‘‘§ 7902. National Ocean Research Leadership Council

‘‘(a) COUNCIL.—There is a National Ocean Research Leadership

Council (hereinafter in this chapter referred to as the ‘Council’).

‘‘(b) MEMBERSHIP.—The Council is composed of the following

members:

‘‘(1) The Secretary of the Navy.

‘‘(2) The Administrator of the National Oceanic and

Atmospheric Administration.

‘‘(3) The Director of the National Science Foundation.

‘‘(4) The Administrator of the National Aeronautics and

Space Administration.

‘‘(5) The Deputy Secretary of Energy.

‘‘(6) The Administrator of the Environmental Protection

Agency.

‘‘(7) The Commandant of the Coast Guard.

‘‘(8) The Director of the Geological Survey of the Department of the Interior.

‘‘(9) The Director of the Defense Advanced Research

Projects Agency.

‘‘(10) The Director of the Minerals Management Service

of the Department of the Interior.

‘‘(11) The President of the National Academy of Sciences,

the President of the National Academy of Engineering, and

the President of the Institute of Medicine.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2471

‘‘(12) The Director of the Office of Science and Technology.

‘‘(13) The Director of the Office of Management and Budget.

‘‘(14) One member appointed by the chairman from among

individuals who will represent the views of ocean industries.

‘‘(15) One member appointed by the chairman from among

individuals who will represent the views of State governments.

‘‘(16) One member appointed by the chairman from among

individuals who will represent the views of academia.

‘‘(17) One member appointed by the chairman from among

individuals who will represent such other views as the chairman

considers appropriate.

‘‘(c) CHAIRMAN AND VICE CHAIRMAN.—(1) Except as provided

in paragraph (2), the chairman and vice chairman of the Council

shall be appointed every two years by a selection committee of

the Council composed of, at a minimum, the Secretary of the Navy,

the Administrator of the National Oceanic and Atmospheric

Administration, and the Director of the National Science Foundation. The term of office of the chairman and vice chairman shall

be two years. A person who has previously served as chairman

or vice chairman may be reappointed.

‘‘(2) The first chairman of the Council shall be the Secretary

of the Navy. The first vice chairman of the Council shall be the

Administrator of the National Oceanic and Atmospheric Administration.

‘‘(d) TERM OF OFFICE.—The term of office of a member of

the Council appointed under paragraph (14), (15), (16), or (17)

of subsection (b) shall be two years, except that any person

appointed to fill a vacancy occurring before the expiration of the

term for which his predecessor was appointed shall be appointed

for the remainder of such term.

‘‘(e) RESPONSIBILITIES.—The Council shall have the following

responsibilities:

‘‘(1) To prescribe policies and procedures to implement the

National Oceanographic Partnership Program.

‘‘(2) To review, select, and identify and allocate funds for

partnership projects for implementation under the program,

based on the following criteria:

‘‘(A) Whether the project addresses critical research

objectives or operational goals, such as data accessibility

and quality assurance, sharing of resources, education, or

communication.

‘‘(B) Whether the project has, or is designed to have,

broad participation within the oceanographic community.

‘‘(C) Whether the partners have a long-term commitment to the objectives of the project.

‘‘(D) Whether the resources supporting the project are

shared among the partners.

‘‘(E) Whether the project has been subjected to adequate peer review.

‘‘(3) To assess whether there is a need for a facility (or

facilities) to provide national centralization of oceanographic

data, and to establish such a facility or facilities if determined

necessary. In conducting the assessment, the Council shall

review, at a minimum, the following:

‘‘(A) The need for a national oceanographic data center.

‘‘(B) The need for a national coastal data center.

‘‘(C) Accessibility by potential users of such centers.
110 STAT. 2472 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(D) Preexisting facilities and expertise.

‘‘(f) ANNUAL REPORT.—Not later than March 1 of each year,

the Council shall submit to Congress a report on the National

Oceanographic Partnership Program. The report shall contain the

following:

‘‘(1) A description of activities of the program carried out

during the fiscal year before the fiscal year in which the report

is prepared, together with a list of the members of the Ocean

Research Advisory Panel and any working groups in existence

during the fiscal year covered.

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

program during the fiscal year in which the report is prepared.

‘‘(3) 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.

‘‘(4) A description of the involvement of the program with

Federal interagency coordinating entities.

‘‘(5) The amounts requested, in the budget submitted to

Congress pursuant to section 1105(a) of title 31, United States

Code, for the fiscal year following the fiscal year in which

the report is prepared, for the programs, projects, and activities

of the program and the estimated expenditures under such

programs, projects, and activities during such following fiscal

year.

‘‘(g) PARTNERSHIP PROGRAM OFFICE.—(1) The Council shall

establish a partnership program office for the National Oceanographic Partnership Program. The Council shall use competitive

procedures in selecting an operator for the partnership program

office.

‘‘(2) The Council shall assign the following duties to the partnership program office:

‘‘(A) To establish and oversee working groups to propose

partnership projects to the Council and advise the Council

on such projects.

‘‘(B) To manage the process for proposing partnership

projects to the Council, including managing peer review of

such projects.

‘‘(C) To submit to the Council an annual report on the

status of all partnership projects and activities of the office.

‘‘(D) Any additional duties for the administration of the

National Oceanographic Partnership Program that the Council

considers appropriate.

‘‘(3) The Council shall supervise the performance of duties

by the partnership program office.

‘‘(h) CONTRACT AND GRANT AUTHORITY.—The Council may

authorize one or more of the departments or agencies represented

on the Council to enter into contracts and make grants, using

funds appropriated pursuant to an authorization of appropriations

for the National Oceanographic Partnership Program, for the purpose of implementing the program and carrying out the responsibilities of the Council.

‘‘(i) ESTABLISHMENT AND FORMS OF PARTNERSHIP PROJECTS.—

(1) A partnership project under the National Oceanographic Partnership Program may be established by any instrument that the

Council considers appropriate, including a memorandum of understanding,

Reports.

Establishment.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2473

a cooperative research and development agreement, and

any similar instrument.

‘‘(2) Projects under the program may include demonstration

projects.

‘‘§ 7903. Ocean Research Advisory Panel

‘‘(a) ESTABLISHMENT.—The Council shall establish an Ocean

Research Advisory Panel consisting of not less than 10 and not

more than 18 members appointed by the Council from among persons eminent in the fields of marine science or marine policy,

or related fields, and who are representative, at a minimum, of

the interests of government, academia, and industry.

‘‘(b) RESPONSIBILITIES.—The Council shall assign to the

Advisory Panel responsibilities that the Council considers appropriate.’’.

(2) The table of chapters at the beginning of subtitle C of

title 10, United States Code, and the table of chapters at the

beginning of part IV of such subtitle, are each amended by inserting

after the item relating to chapter 663 the following:

‘‘665. National Oceanographic Partnership Program ................................ 7901’’.

(b) INITIAL APPOINTMENTS OF COUNCIL MEMBERS.—The Secretary of the Navy shall make the appointments required by section

7902(b) of title 10, United States Code, as added by subsection

(a)(1), not later than December 1, 1996.

(c) INITIAL APPOINTMENTS OF ADVISORY PANEL MEMBERS.—

The National Ocean Research Leadership Council established by

section 7902 of title 10, United States Code, as added by subsection

(a)(1), shall make the appointments required by section 7903 of

such title not later than January 1, 1997.

(d) FIRST ANNUAL REPORT OF NATIONAL OCEAN RESEARCH

LEADERSHIP COUNCIL.—The first annual report required by section

7902(f) of title 10, United States Code, as added by subsection

(a)(1), shall be submitted to Congress not later than March 1,

1997. The first report shall include, in addition to the information

required by such section, information about the terms of office,

procedures, and responsibilities of the Ocean Research Advisory

Panel established by the Council.

(e) AUTHORIZATION.—(1) Of the amount authorized to be appropriated to the Department of the Navy by section 201(2),

$13,000,000 shall be available for the National Oceanographic Partnership Program established pursuant to section 7901 of title 10,

United States Code, as added by subsection (a)(1).

(2) Of the amount authorized to be appropriated to the Department of the Navy by section 301(2), $7,500,000 shall be available

for such program.

(f) FUNDING FOR PROGRAM OFFICE.—Of the amount appropriated for the National Oceanographic Partnership Program for

fiscal year 1997, at least $500,000, or 3 percent of the amount

appropriated, whichever is greater, shall be available for operations

of the partnership program office established pursuant to section

7902(g) of title 10, United States Code, as added by subsection

(a)(1), for such fiscal year.

10 USC 7902

note.

10 USC 7903

note.

10 USC 7902

note.
110 STAT. 2474 PUBLIC LAW 104–201—SEPT. 23, 1996

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 Corporation.

Sec. 306. Availability of additional funds for antiterrorism activities.

Sec. 307. Nonlethal weapons capabilities.

Sec. 308. SR–71 contingency reconnaissance force.

Subtitle B—Depot-Level Activities

Sec. 311. Extension of authority for aviation depots and naval shipyards to engage

in defense-related production and services.

Sec. 312. Test programs for modernization-through-spares.

Subtitle C—Environmental Provisions

Sec. 321. Defense contractors covered by requirement for reports on contractor

reimbursement costs for response actions.

Sec. 322. Establishment of separate environmental restoration accounts for each

military department.

Sec. 323. Payment of stipulated penalties assessed under CERCLA.

Sec. 324. Shipboard solid waste control.

Sec. 325. Authority to develop and implement land use plans for Defense Environmental Restoration program.

Sec. 326. Pilot program to test alternative technology for limiting air emissions

during shipyard blasting and coating operations.

Sec. 327. Agreements for services of other agencies in support of environmental

technology certification.

Sec. 328. Repeal of redundant notification and consultation requirements regarding

remedial investigations and feasibility studies at certain installations to

be closed under the base closure laws.

Sec. 329. Authority for agreements with Indian tribes for services under environmental restoration program.

Sec. 330. Authority to withhold listing of Federal facilities on National Priorities

List.

Sec. 331. Clarification of meaning of uncontaminated property for purposes of

transfer by the United States.

Sec. 332. Conservation and cultural activities.

Sec. 333. Navy program to monitor ecological effects of organotin.

Sec. 334. Authority to transfer contaminated Federal property before completion of

required response actions.

Subtitle D—Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Contracts with other agencies to provide or obtain goods and services to

promote efficient operation and management of exchanges and morale,

welfare, and recreation activities.

Sec. 342. Noncompetitive procurement of brand-name commercial items for resale

in commissary stores.

Sec. 343. Prohibition of sale or rental of sexually explicit material.

Subtitle E—Performance of Functions by Private-Sector Sources

Sec. 351. Extension of requirement for competitive procurement of printing and

duplication services.

Sec. 352. Reporting requirements under demonstration project for purchase of fire,

security, police, public works, and utility services from local government

agencies.

Subtitle F—Other Matters

Sec. 361. Authority for use of appropriated funds for recruiting functions.

Sec. 362. Training of members of the uniformed services at non-Government

facilities.

Sec. 363. Requirement for preparation of plan for improved operation of workingcapital funds and effect of failure to produce an approved plan.

Sec. 364. Increase in capital asset threshold under Defense Business Operations

Fund.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2475

Sec. 365. Expansion of authority to donate unusable food.

Sec. 366. Assistance to committees involved in inauguration of the President.

Sec. 367. Department of Defense support for sporting events.

Sec. 368. Storage of motor vehicle in lieu of transportation.

Sec. 369. Security protections at Department of Defense facilities in National

Capital Region. Sec. 370. Administration of midshipmen’s store and other Naval Academy support

activities as nonappropriated fund instrumentality. Sec. 371. Reimbursement under agreement for instruction of civilian students at

Foreign Language Institute of the Defense Language Institute. Sec. 372. Assistance to local educational agencies that benefit dependents of

members of the Armed Forces and Department of Defense civilian employees. Sec. 373. Renovation of building for Defense Finance and Accounting Service

Center, Fort Benjamin Harrison, Indiana. Sec. 374. Food donation pilot program at service academies.

Sec. 375. Authority of Air National Guard to provide certain services at Lincoln

Municipal Airport, Lincoln, Nebraska. Sec. 376. Technical amendment regarding Impact Aid program.

Subtitle A—Authorization of

Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

Funds are hereby authorized to be appropriated for fiscal year

1997 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, $18,264,406,000.

(2) For the Navy, $20,387,737,000.

(3) For the Marine Corps, $2,421,007,000.

(4) For the Air Force, $17,635,335,000.

(5) For Defense-wide activities, $9,912,962,000.

(6) For the Army Reserve, $1,136,436,000.

(7) For the Naval Reserve, $858,927,000.

(8) For the Marine Corps Reserve, $113,367,000.

(9) For the Air Force Reserve, $1,499,553,000.

(10) For the Army National Guard, $2,277,477,000.

(11) For the Air National Guard, $2,711,173,000.

(12) For the Defense Inspector General, $136,501,000.

(13) For the United States Court of Appeals for the Armed

Forces, $6,797,000.

(14) For Environmental Restoration, Army, $356,916,000.

(15) For Environmental Restoration, Navy, $302,900,000.

(16) For Environmental Restoration, Air Force,

$414,700,000.

(17) For Environmental Restoration, Defense-wide,

$258,500,000.

(18) For Overseas Humanitarian, Disaster, and Civic Aid

programs, $54,544,000.

(19) For Drug Interdiction and Counter-drug Activities,

Defense-wide, $796,524,000.

(20) For the Kaho’olawe Island Conveyance, Remediation,

and Environmental Restoration Trust Fund, $10,000,000.

(21) For Medical Programs, Defense, $9,833,288,000.

(22) For Cooperative Threat Reduction programs,

$364,900,000.

(23) For Domestic Emergency Assistance programs,

$97,000,000.

(24) For OPLAN 34A–35 P.O.W. payments, $20,000,000.
110 STAT. 2476 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 302. WORKING CAPITAL FUNDS.

Funds are hereby authorized to be appropriated for fiscal year

1997 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,

$947,900,000.

(2) For the National Defense Sealift Fund, $1,118,002,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

There is hereby authorized to be appropriated for fiscal year

1997 from the Armed Forces Retirement Home Trust Fund the

sum of $57,300,000 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 appropria- tions 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 1997 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 CORPORATION.

(a) FUNDING.—Of the amount authorized to be appropriated

pursuant to section 301 for operation and maintenance, $14,526,000

shall be available for the Civil Air Patrol Corporation.

(b) AMOUNT FOR CERTAIN OPERATIONS.—Of the amount made

available to the Civil Air Patrol Corporation pursuant to subsection

(a), not less than 25 percent of such amount shall be reserved

to cover the costs of search and rescue missions and disaster relief

missions.

SEC. 306. AVAILABILITY OF ADDITIONAL FUNDS FOR ANTITERRORISM

ACTIVITIES.

Of the amount authorized to be appropriated pursuant to section 301 for operation and maintenance, $14,000,000 shall be available to the Secretary of Defense for activities designed to meet

the antiterrorism responsibilities of the Department of Defense,

including activities related to intelligence support, physical security

measures, and education and training regarding antiterrorism. The

amount made available by this section is in addition to amounts

otherwise made available by this Act for antiterrorism activities.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2477

SEC. 307. NONLETHAL WEAPONS CAPABILITIES.

Of the amount authorized to be appropriated pursuant to section 301, $5,000,000 shall be available for the immediate procurement of nonlethal weapons capabilities to meet existing deficiencies

in inventories of such capabilities, of which—

(1) $2,000,000 shall be available for the Army; and

(2) $3,000,000 shall be available for the Marine Corps.

SEC. 308. SR–71 CONTINGENCY RECONNAISSANCE FORCE.

Of the funds authorized to be appropriated by section 301(4), $30,000,000 is authorized to be made available for the SR–71 contingency reconnaissance force.

Subtitle B—Depot-Level Activities

SEC. 311. 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, 1996’’ and inserting in lieu thereof

‘‘September 30, 1997’’.

SEC. 312. TEST PROGRAMS FOR MODERNIZATION-THROUGH-SPARES.

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 on the steps

that the Secretary has taken to ensure that each program included

in the modernization-through-spares program of the Army is conducted in accordance with—

(1) the competition requirements in section 2304 of title

10, United States Code;

(2) the core logistics requirements in section 2464 of such

title;

(3) the public-private competition requirements in section

2469 of such title; and

(4) requirements relating to contract bundling and spare

parts breakout in subsections (a) and (l) of section 15 of the

Small Business Act (15 U.S.C. 644) and regulations implementing such subsections in the Defense Federal Acquisition Regulation Supplement.

Subtitle C—Environmental Provisions

SEC. 321. DEFENSE CONTRACTORS COVERED BY REQUIREMENT FOR

REPORTS ON CONTRACTOR REIMBURSEMENT COSTS

FOR RESPONSE ACTIONS.

Section 2706(d)(1)(A) of title 10, United States Code, is amended

by striking out ‘‘100’’ and inserting in lieu thereof ‘‘20’’.

SEC. 322. ESTABLISHMENT OF SEPARATE ENVIRONMENTAL RESTORATION ACCOUNTS FOR EACH MILITARY DEPARTMENT.

(a) ESTABLISHMENT.—(1) Section 2703 of title 10, United States

Code, is amended to read as follows:

Reports.
110 STAT. 2478 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘§ 2703. Environmental restoration accounts

‘‘(a) ESTABLISHMENT OF ACCOUNTS.—There are hereby established in the Department of Defense the following accounts:

‘‘(1) An account to be known as the ‘Environmental Restoration Account, Defense’.

‘‘(2) An account to be known as the ‘Environmental Restoration Account, Army’.

‘‘(3) An account to be known as the ‘Environmental Restoration Account, Navy’.

‘‘(4) An account to be known as the ‘Environmental Restoration Account, Air Force’.

‘‘(b) OBLIGATION OF AUTHORIZED AMOUNTS.—Funds authorized

for deposit in an account under subsection (a) may be obligated

or expended from the account only in order to carry out the environmental restoration functions of the Secretary of Defense and the

Secretaries of the military departments under this chapter and

under any other provision of law. Funds so authorized shall remain

available until expended.

‘‘(c) BUDGET REPORTS.—In proposing the budget for any fiscal

year pursuant to section 1105 of title 31, United States Code,

the President shall set forth separately the amounts requested

for environmental restoration programs of the Department of

Defense and of each of the military departments under this chapter

and under any other Act.

‘‘(d) CREDIT OF AMOUNTS RECOVERED.—The following amounts

shall be credited to the appropriate environmental restoration

account:

‘‘(1) Amounts recovered under CERCLA for response

actions.

‘‘(2) Any other amounts recovered from a contractor,

insurer, surety, or other person to reimburse the Department

of Defense or a military department for any expenditure for

environmental response activities.

‘‘(e) PAYMENTS OF FINES AND PENALTIES.—None of the funds

appropriated to the Environmental Restoration Account, Defense,

for fiscal years 1995 through 1999, or to any environmental restoration account of a military department for fiscal years 1997 through

1999, may be used for the payment of a fine or penalty (including

any supplemental environmental project carried out as part of such

penalty) imposed against the Department of Defense or a military

department unless the act or omission for which the fine or penalty

is imposed arises out of an activity funded by the environmental

restoration account concerned and the payment of the fine or penalty has been specifically authorized by law.’’.

(2) The table of sections at the beginning of chapter 160 of

title 10, United States Code, is amended by striking out the item

relating to section 2703 and inserting in lieu thereof the following

new item:

‘‘2703. Environmental restoration accounts.’’.

(b) REFERENCES.—Any reference to the Defense Environmental

Restoration Account in any Federal law, Executive Order, regulation, delegation of authority, or document shall be deemed to refer

to the appropriate environmental restoration account established

under section 2703(a)(1) of title 10, United States Code (as amended

by subsection (a)(1)).

10 USC 2703

note.

President.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2479

(c) CONFORMING AMENDMENT.—Section 2705(g)(1) of title 10,

United States Code, is amended by striking out ‘‘the Defense

Environmental Restoration Account established’’ and inserting in

lieu thereof ‘‘the environmental restoration account concerned’’.

(d) TREATMENT OF UNOBLIGATED BALANCES.—Any unobligated

balances that remain in the Defense Environmental Restoration

Account under section 2703(a) of title 10, United States Code,

as of the effective date specified in subsection (e) shall be transferred

on such date to the Environmental Restoration Account, Defense,

established under section 2703(a)(1) of title 10, United States Code

(as amended by subsection (a)(1)).

(e) EFFECTIVE DATE.—The amendments made by this section

shall take effect on the later of—

(1) October 1, 1996; or

(2) the date of the enactment of this Act.

SEC. 323. PAYMENTS OF STIPULATED PENALTIES ASSESSED UNDER

CERCLA.

(a) AUTHORITY.—The Secretary of Defense may pay the

following:

(1) Stipulated civil penalties, to the Hazardous Substance

Superfund established under section 9507 of the Internal Revenue Code of 1986, in amounts, and using funds, as follows:

(A) Using funds authorized to be appropriated to the

Environmental Restoration Account, Army, established

under section 2703(a)(2) of title 10, United States Code

(as amended by section 322 of this Act)—

(i) not more than $34,000 assessed against Fort

Riley, Kansas, under CERCLA; and

(ii) not more than $37,500 assessed against Lake

City Army Ammunition Plant, Missouri, under

CERCLA.

(B) Using funds authorized to be appropriated to the

Environmental Restoration Account, Navy, established

under section 2703(a)(3) of that title, as so amended, not

more than $30,000 assessed against the Naval Education

and Training Center, Newport, Rhode Island, under

CERCLA.

(C) Using funds authorized to be appropriated to the

Environmental Restoration Account, Air Force, established

under section 2703(a)(4) of that title, as so amended—

(i) not more than $55,000 assessed against the

Massachusetts Military Reservation, Massachusetts,

under CERCLA; and

(ii) not more than $10,000 assessed against F.E.

Warren Air Force Base, Wyoming, under CERCLA.

(2) Using funds authorized to be appropriated to the

Environmental Restoration Account, Air Force, established

under section 2703(a)(4) of that title, as so amended, not more

than $500,000 to carry out one environmental restoration

project, as part of a negotiated agreement in lieu of stipulated

penalties assessed under CERCLA against the Massachusetts

Military Reservation, Massachusetts.

(b) CERCLA DEFINED.—In this section, the term ‘‘CERCLA’’

means the Comprehensive Environmental Response, Compensation,

and Liability Act of 1980 (42 U.S.C. 9601 et seq.).

10 USC 2703

note.

10 USC 2703

note.
110 STAT. 2480 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 324. SHIPBOARD SOLID WASTE CONTROL.

(a) IN GENERAL.—Section 3(c) of the Act to Prevent Pollution

from Ships (33 U.S.C. 1902(c)) is amended—

(1) in paragraph (1), by striking out ‘‘Not later than’’ and

inserting in lieu thereof ‘‘Except as provided in paragraphs

(2) and (3), not later than’’; and

(2) by striking out paragraphs (2), (3), and (4) and inserting

in lieu thereof the following:

‘‘(2)(A) Subject to subparagraph (B), any ship described in

subparagraph (C) may discharge, without regard to the special

area requirements of Regulation 5 of Annex V to the Convention,

the following non-plastic, non-floating garbage:

‘‘(i) A slurry of seawater, paper, cardboard, or food waste

that is capable of passing through a screen with openings

no larger than 12 millimeters in diameter.

‘‘(ii) Metal and glass that have been shredded and bagged

so as to ensure negative buoyancy.

‘‘(B)(i) Garbage described in subparagraph (A)(i) may not be

discharged within 3 nautical miles of land.

‘‘(ii) Garbage described in subparagraph (A)(ii) may not be

discharged within 12 nautical miles of land.

‘‘(C) This paragraph applies to any ship that is owned or operated by the Department of the Navy that, as determined by the

Secretary of the Navy—

‘‘(i) has unique military design, construction, manning, or

operating requirements; and

‘‘(ii) cannot fully comply with the special area requirements

of Regulation 5 of Annex V to the Convention because compliance is not technologically feasible or would impair the operations or operational capability of the ship.

‘‘(3)(A) Not later than December 31, 2000, the Secretary of

the Navy shall prescribe and publish in the Federal Register standards to ensure that each ship described in subparagraph (B) is,

to the maximum extent practicable without impairing the operations

or operational capabilities of the ship, operated in a manner that

is consistent with the special area requirements of Regulation 5

of Annex V to the Convention.

‘‘(B) Subparagraph (A) applies to surface ships that are owned

or operated by the Department of the Navy that the Secretary

plans to decommission during the period beginning on January

1, 2001, and ending on December 31, 2005.

‘‘(C) At the same time that the Secretary publishes standards

under subparagraph (A), the Secretary shall publish in the Federal

Register a list of the ships covered by subparagraph (B).’’.

(b) SENSE OF CONGRESS.—(1) It is the sense of Congress that

it should be an objective of the Navy to achieve full compliance

with Annex V to the Convention as part of the Navy’s development

of ships that are environmentally sound.

(2) In this subsection, the terms ‘‘Convention’’ and ‘‘ship’’ have

the meanings given such terms in section 2(a) of the Act to Prevent

Pollution from Ships (33 U.S.C. 1901(a)).

(c) REPORT ON COMPLIANCE WITH ANNEX V TO THE CONVENTION.—The Secretary of Defense shall include in each report on

environmental compliance activities submitted to Congress under

section 2706(b) of title 10, United States Code, the following

information:

10 USC 2706

note.

Federal Register,

publication.

Applicability.

Effective date.

Termination

date.

Regulations.

Federal Register,

publication.

Applicability.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2481

(1) A list of the ship types, if any, for which the Secretary

of the Navy has made the determination referred to in paragraph (2)(C) of section 3(c) of the Act to Prevent Pollution

from Ships, as amended by subsection (a)(2) of this section.

(2) A list of ship types which the Secretary of the Navy

has determined can comply with Regulation 5 of Annex V

to the Convention.

(3) A summary of the progress made by the Navy in

implementing the requirements of paragraphs (2) and (3) of

such section 3(c), as so amended.

(4) A description of any emerging technologies offering

the potential to achieve full compliance with Regulation 5 of

Annex V to the Convention.

(5) The amount and nature of the discharges in special

areas, not otherwise authorized under the Act to Prevent Pollution from Ships (33 U.S.C. 1901 et seq.), during the preceding

year from ships referred to in section 3(b)(1)(A) of such Act

owned or operated by the Department of the Navy.

(d) PUBLICATION REGARDING SPECIAL AREA DISCHARGES.—

Subparagraph (A) of section 3(e)(4) of the Act to Prevent Pollution

from Ships (33 U.S.C. 1902(e)(4)) is amended to read as follows:

‘‘(A) Each year, the amount and nature of the discharges in special areas, not otherwise authorized under

this Act, during the preceding year from ships referred

to in subsection (b)(1)(A) of this section owned or operated

by the Department of the Navy.’’.

SEC. 325. AUTHORITY TO DEVELOP AND IMPLEMENT LAND USE

PLANS FOR DEFENSE ENVIRONMENTAL RESTORATION

PROGRAM.

(a) AUTHORITY.—The Secretary of Defense may, to the extent

possible and practical, develop and implement, as part of the

Defense Environmental Restoration Program provided for in chapter

160 of title 10, United States Code, a land use plan for any defense

site selected by the Secretary under subsection (b).

(b) SELECTION OF SITES.—The Secretary may select up to 10

defense sites, from among sites where the Secretary is planning

or implementing environmental restoration activities, for which land

use plans may be developed under this section.

(c) REQUIREMENT TO CONSULT WITH REVIEW COMMITTEE OR

ADVISORY BOARD.—In developing a land use plan under this section,

the Secretary shall consult with a technical review committee established pursuant to section 2705(c) of title 10, United States Code,

a restoration advisory board established pursuant to section 2705(d)

of such title, a local land use redevelopment authority, or another

appropriate State agency.

(d) 50-YEAR PLANNING PERIOD.—A land use plan developed

under this section shall cover a period of at least 50 years.

(e) IMPLEMENTATION.—For each defense site for which the Secretary develops a land use plan under this section, the Secretary

shall take into account the land use plan in selecting and

implementing, in accordance with applicable law, environmental

restoration activities at the site.

(f) DEADLINES.—For each defense site for which the Secretary

intends to develop a land use plan under this section, the Secretary

shall develop a draft land use plan by October 1, 1997, and a

final land use plan by March 15, 1998.

10 USC 2701

note.
110 STAT. 2482 PUBLIC LAW 104–201—SEPT. 23, 1996

(g) DEFINITION OF DEFENSE SITE.—For purposes of this section,

the term ‘‘defense site’’ means (A) any building, structure, installation, equipment, pipe or pipeline (including any pipe into a sewer

or publicly owned treatment works), well, pit, pond, lagoon,

impoundment, ditch, landfill, storage container, motor vehicle, rolling stock, or aircraft under the jurisdiction of the Department

of Defense, or (B) any site or area under the jurisdiction of the

Department of Defense where a hazardous substance has been

deposited, stored, disposed of, or placed, or otherwise come to be

located; but does not include any consumer product in consumer

use or any vessel.

(h) REPORT.—In the annual report required under section

2706(a) of title 10, United States Code, the Secretary shall include

information on the land use plans developed under this section

and the effect such plans have had on environmental restoration

activities at the defense sites where they have been implemented.

The annual report submitted in 1999 shall include recommendations

on whether such land use plans should be developed and implemented throughout the Department of Defense.

(i) SAVINGS PROVISIONS.—(1) Nothing in this section, or in

a land use plan developed under this section with respect to a

defense site, shall be construed as requiring any modification to

a land use plan that was developed before the date of the enactment

of this Act.

(2) Nothing in this section may be construed to affect statutory

requirements for an 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, nor shall

anything in this section be construed to preempt or impair any

local land use planning or zoning authority or State authority.

SEC. 326. PILOT PROGRAM TO TEST ALTERNATIVE TECHNOLOGY FOR

LIMITING AIR EMISSIONS DURING SHIPYARD BLASTING

AND COATING OPERATIONS.

(a) DETERMINATION BY SECRETARY OF THE NAVY.—(1) The Secretary of the Navy shall make a determination whether the alternative technology described in paragraph (2) has the clear potential

for significant benefit to the Navy. The Secretary shall submit

to Congress a notification in writing of the determination not later

than 60 days after the date of the enactment of this Act.

(2) The technology referred to in paragraph (1) is an alternative

technology designed to capture and destroy or remove particulate

emissions and volatile air pollutants that occur during abrasive

blasting and coating operations at naval shipyards.

(b) PILOT PROGRAM.—If the determination made under subsection (a)(1) is in the affirmative, the Secretary shall establish

a pilot program to test the alternative technology. In conducting

the test, the Secretary shall seek to demonstrate whether the technology is valid, cost effective, and in compliance with environmental

laws and regulations.

(c) REPORT.—Upon completion of the test conducted under the

pilot program, 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 setting forth

in detail the results of the test. The report shall include

recommendations on whether the alternative technology merits

Notification.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2483

implementation at naval shipyards and such other recommendations as the Secretary considers appropriate.

SEC. 327. AGREEMENTS FOR SERVICES OF OTHER AGENCIES IN SUPPORT OF ENVIRONMENTAL TECHNOLOGY CERTIFICATION.

(a) AUTHORITY.—Subject to subsection (b), the Secretary of

Defense may enter into a cooperative agreement with an agency

of a State or local government to obtain assistance in certifying

environmental technologies.

(b) LIMITATIONS.—The Secretary of Defense may enter into

a cooperative agreement with respect to an environmental technology under subsection (a) only if the Secretary determines—

(1) that the technology has clear potential to be of significant value to the Department of Defense in carrying out its

environmental restoration activities; and

(2) that there is no reasonably available market in the

private sector for the technology without a certification by

the Department of Defense, the Environmental Protection

Agency, or a State environmental agency.

(c) TYPES OF ASSISTANCE.— The types of assistance that may

be obtained under subsection (a) include the following:

(1) Data collection and analysis.

(2) Technical assistance in conducting a demonstration of

an environmental technology, including the implementation of

quality assurance and quality control programs.

(d) REPORT.—In the annual report required under section

2706(a) of title 10, United States Code, the Secretary of Defense

shall include the following information with respect to cooperative

agreements entered into under this section:

(1) The number of such agreements.

(2) The number of States in which such agreements have

been entered into.

(3) A description of the nature of the technology involved

in each such agreement.

(4) The amount of funds obligated or expended by the

Department of Defense for each such agreement during the

year covered by the report.

(e) TERMINATION OF AUTHORITY.—The authority provided under

subsection (a) shall terminate five years after the date of the enactment of this Act.

SEC. 328. REPEAL OF REDUNDANT NOTIFICATION AND

CONSULTATION REQUIREMENTS REGARDING REMEDIAL

INVESTIGATIONS AND FEASIBILITY STUDIES AT CERTAIN

INSTALLATIONS TO BE CLOSED UNDER THE BASE CLOSURE LAWS.

Section 334 of the National Defense Authorization Act for Fiscal

Years 1992 and 1993 (Public Law 102–190; 105 Stat. 1340; 10

U.S.C. 2687 note) is repealed.

SEC. 329. AUTHORITY FOR AGREEMENTS WITH INDIAN TRIBES FOR

SERVICES UNDER ENVIRONMENTAL RESTORATION PROGRAM.

Section 2701(d) of title 10, United States Code, is amended—

(1) in the first sentence of paragraph (1), by striking out

‘‘, or with any State or local government agency,’’ and inserting

Notification.
110 STAT. 2484 PUBLIC LAW 104–201—SEPT. 23, 1996

in lieu thereof ‘‘, with any State or local government agency,

or with any Indian tribe,’’; and

(2) by adding at the end the following:

‘‘(3) DEFINITION.—In this subsection, the term ‘Indian tribe’

has the meaning given such term in section 101(36) of the

Comprehensive Environmental Response, Compensation, and

Liability Act of 1980 (42 U.S.C. 9601(36)).’’.

SEC. 330. AUTHORITY TO WITHHOLD LISTING OF FEDERAL FACILITIES ON NATIONAL PRIORITIES LIST.

Section 120(d) of the Comprehensive Environmental Response,

Compensation, and Liability Act of 1980 (42 U.S.C. 9620(d)) is

amended—

(1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;

(2) by striking out ‘‘Not later than 18 months after the

enactment of the Superfund Amendments and Reauthorization

Act of 1986, the Administrator’’ and inserting in lieu thereof

the following:

‘‘(1) IN GENERAL.—The Administrator’’;

(3) by moving the remainder of the text of paragraph

(1), as designated by paragraph (2) of this section (including

subparagraphs (A) and (B), as redesignated by paragraph (1)

of this section) 2 ems to the right; and

(4) by striking out ‘‘Such criteria’’ and all that follows

through the end of the subsection and inserting in lieu thereof

the following:

‘‘(2) APPLICATION OF CRITERIA.—

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the

criteria referred to in paragraph (1) shall be applied in

the same manner as the criteria are applied to facilities

that are owned or operated by persons other than the

United States.

‘‘(B) RESPONSE UNDER OTHER LAW.—It shall be an

appropriate factor to be taken into consideration for the

purposes of section 105(a)(8)(A) that the head of the department, agency, or instrumentality that owns or operates

a facility has arranged with the Administrator or appropriate State authorities to respond appropriately, under

authority of a law other than this Act, to a release or

threatened release of a hazardous substance.

‘‘(3) COMPLETION.—Evaluation and listing under this subsection shall be completed in accordance with a reasonable

schedule established by the Administrator.’’.

SEC. 331. CLARIFICATION OF MEANING OF UNCONTAMINATED PROPERTY FOR PURPOSES OF TRANSFER BY THE UNITED

STATES.

Section 120(h)(4)(A) of the Comprehensive Environmental

Response, Compensation, and Liability Act of 1980 (42 U.S.C.

9620(h)(4)(A)) is amended in the first sentence by striking out

‘‘stored for one year or more, known to have been released,’’ and

inserting in lieu thereof ‘‘known to have been released’’.

SEC. 332. CONSERVATION AND CULTURAL ACTIVITIES.

(a) IN GENERAL.—(1) Chapter 159 of title 10, United States

Code, is amended by adding at the end the following new section:
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2485

‘‘§ 2694. Conservation and cultural activities

‘‘(a) ESTABLISHMENT.—The Secretary of Defense may establish

and carry out a program to conduct and manage in a coordinated

manner the conservation and cultural activities described in subsection (b).

‘‘(b) ACTIVITIES.—(1) A conservation or cultural activity eligible

for the program that the Secretary establishes under subsection

(a) is any activity—

‘‘(A) that has regional or Department of Defense-wide

significance and that involves more than one military department;

‘‘(B) that is necessary to meet legal requirements or to

support military operations;

‘‘(C) that can be more effectively managed at the Department of Defense level; and

‘‘(D) for which no executive ageny has been designated

responsible by the Secretary.

‘‘(2) Such activities include the following:

‘‘(A) The development of ecosystem-wide land management

plans.

‘‘(B) The conduct of wildlife studies to ensure the safety

of military operations.

‘‘(C) The identification and return of Native American

human remains and cultural items in the possession or control

of the Department of Defense, or discovered on land under

the jurisdiction of the Department, to the appropriate Native

American tribes.

‘‘(D) The control of invasive species that may hinder military activities or degrade military training ranges.

‘‘(E) The establishment of a regional curation system for

artifacts found on military installations.

‘‘(c) COOPERATIVE AGREEMENTS.—The Secretary may negotiate

and enter into cooperative agreements with public and private

agencies, organizations, institutions, individuals, or other entities

to carry out the program established under subsection (a).

‘‘(d) EFFECT ON OTHER LAWS.—Nothing in this section shall

be construed or interpreted as preempting any otherwise applicable

Federal, State, or local law or regulation relating to the management of natural and cultural resources on military installations.’’.

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

is amended by adding at the end the following new item:

‘‘2694. Conservation and cultural activities.’’.

(b) EFFECTIVE DATE.—Section 2694 of title 10, United States

Code, as added by subsection (a), shall take effect on October

1, 1996.

SEC. 333. NAVY PROGRAM TO MONITOR ECOLOGICAL EFFECTS OF

ORGANOTIN.

(a) MONITORING REQUIREMENT.—The Secretary of the Navy

shall, in consultation with the Administrator of the Environmental

Protection Agency, develop and implement a program to monitor

the concentrations of organotin in the water column, sediments,

and aquatic organisms of representative estuaries and near-coastal

waters in the United States, as described in section 7(a) of the

Organotin Antifouling Paint Control Act of 1988 (33 U.S.C. 2406(a)).

The program shall be designed to produce high-quality data to

Water.

33 USC 2406

note.

10 USC 2694

note.
110 STAT. 2486 PUBLIC LAW 104–201—SEPT. 23, 1996

enable the Environmental Protection Agency to develop water quality criteria concerning organotin compounds.

(b) FUNDING.—The Administrator of the Environmental Protection Agency shall provide, in advance, such sums as are necessary

to the Secretary of the Navy for the costs of developing and

implementing the program under subsection (a).

(c) WRITTEN AGREEMENT.—The Secretary of the Navy and the

Administrator of the Environmental Protection Agency shall enter

into a written agreement setting forth the actions that the Secretary

plans to take under subsection (a) and the funding that the Administrator agrees to provide under subsection (b). If the Secretary determines that the Administrator will not enter into such an agreement,

the Secretary shall notify the Committee on National Security of

the House of Representatives and the Committee on Armed Services

of the Senate not later than 30 days after such determination.

(d) NONIMPAIRMENT OF MISSION.—Compliance with subsection

(a) shall be conducted in such a manner so as not to impair the

ability of the Department of the Navy to meet its operational

requirements.

(e) REPORT.—Not later than June 1, 1997, the Secretary of

the Navy shall submit to Congress a report containing the following:

(1) A description of the monitoring program developed

pursuant to subsection (a).

(2) An analysis of the results of the monitoring program

as of the date of the submission of the report.

(3) Information about the progress of Navy programs,

referred to in section 7(c) of the Organotin Antifouling Paint

Control Act of 1988 (33 U.S.C. 2406(c)), for evaluating the

laboratory toxicity and environmental risks associated with

the use of antifouling paints containing organotin.

(4) An assessment, developed in consultation with the

Administrator of the Environmental Protection Agency, of the

effectiveness of existing laws and rules concerning organotin

compounds in ensuring protection of human health and the

environment.

(f) SENSE OF CONGRESS.—(1) It is the sense of Congress that

the Administrator of the Environmental Protection Agency, in consultation with the Secretary of the Navy, should develop, for purposes of the national pollutant discharge elimination system, a

model permit for the discharge of organotin compounds at shipbuilding and ship repair facilities.

(2) For purposes of this subsection, the term ‘‘organotin’’ has

the meaning provided in section 3 of the Organotin Antifouling

Paint Control Act of 1988 (33 U.S.C. 2402).

(g) TERMINATION.—The program required by subsection (a) shall

terminate five years after the date of the enactment of this Act.

SEC. 334. AUTHORITY TO TRANSFER CONTAMINATED FEDERAL PROPERTY BEFORE COMPLETION OF REQUIRED RESPONSE

ACTIONS.

(a) IN GENERAL.—Section 120(h)(3) of the Comprehensive

Environmental Response, Compensation, and Liability Act of 1980

(42 U.S.C. 9620(h)(3)) is amended—

(1) by redesignating subparagraph (A) as clause (i) and

clauses (i), (ii), and (iii) of that subparagraph as subclauses

(I), (II), and (III), respectively;

Notification.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2487

(2) by striking out ‘‘After the last day’’ and inserting in

lieu thereof the following:

‘‘(A) IN GENERAL.—After the last day’’;

(3) by redesignating subparagraph (B) as clause (ii) and

clauses (i) and (ii) of that subparagraph as subclauses (I) and

(II), respectively;

(4) by redesignating subparagraph (C) as clause (iii);

(5) by moving the remainder of the text of subparagraph

(A), as designated by paragraph (2) of this subsection (including

the clauses and subclauses redesignated by paragraphs (1),

(3), and (4) of this subsection) 2 ems to the right;

(6) by striking ‘‘For purposes of subparagraph (B)(i)’’ and

inserting the following:

‘‘(B) COVENANT REQUIREMENTS.—For purposes of subparagraphs (A)(ii)(I) and (C)(iii)’’;

(7) in subparagraph (B), as designated by paragraph (5),

by striking ‘‘subparagraph (B)’’ each place it appears and inserting ‘‘subparagraph (A)(ii)’’; and

(8) by adding at the end the following:

‘‘(C) DEFERRAL.—

‘‘(i) IN GENERAL.—The Administrator, with the

concurrence of the Governor of the State in which

the facility is located (in the case of real property

at a Federal facility that is listed on the National

Priorities List), or the Governor of the State in which

the facility is located (in the case of real property

at a Federal facility not listed on the National Priorities

List) may defer the requirement of subparagraph

(A)(ii)(I) with respect to the property if the Administrator or the Governor, as the case may be, determines

that the property is suitable for transfer, based on

a finding that—

‘‘(I) the property is suitable for transfer for

the use intended by the transferee, and the

intended use is consistent with protection of

human health and the environment;

‘‘(II) the deed or other agreement proposed

to govern the transfer between the United States

and the transferee of the property contains the

assurances set forth in clause (ii);

‘‘(III) the Federal agency requesting deferral

has provided notice, by publication in a newspaper

of general circulation in the vicinity of the property, of the proposed transfer and of the opportunity for the public to submit, within a period

of not less than 30 days after the date of the

notice, written comments on the suitability of the

property for transfer; and

‘‘(IV) the deferral and the transfer of the property will not substantially delay any necessary

response action at the property.

‘‘(ii) RESPONSE ACTION ASSURANCES.—With regard

to a release or threatened release of a hazardous substance for which a Federal agency is potentially responsible under this section, the deed or other agreement

proposed to govern the transfer shall contain assurances that—
110 STAT. 2488 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(I) provide for any necessary restrictions on

the use of the property to ensure the protection

of human health and the environment;

‘‘(II) provide that there will be restrictions on

use necessary to ensure that required remedial

investigations, response action, and oversight

activities will not be disrupted;

‘‘(III) provide that all necessary response

action will be taken and identify the schedules

for investigation and completion of all necessary

response action as approved by the appropriate

regulatory agency; and

‘‘(IV) provide that the Federal agency responsible for the property subject to transfer will submit a budget request to the Director of the Office

of Management and Budget that adequately

addresses schedules for investigation and completion of all necessary response action, subject to

congressional authorizations and appropriations.

‘‘(iii) WARRANTY.—When all response action necessary to protect human health and the environment

with respect to any substance remaining on the property on the date of transfer has been taken, the United

States shall execute and deliver to the transferee an

appropriate document containing a warranty that all

such response action has been taken, and the making

of the warranty shall be considered to satisfy the

requirement of subparagraph (A)(ii)(I).

‘‘(iv) FEDERAL RESPONSIBILITY.—A deferral under

this subparagraph shall not increase, diminish, or

affect in any manner any rights or obligations of a

Federal agency (including any rights or obligations

under sections 106, 107, and 120 existing prior to

transfer) with respect to a property transferred under

this subparagraph.’’.

(b) CONTINUED APPLICATION OF STATE LAW.—The first sentence

of section 120(a)(4) of the Comprehensive Environmental Response,

Compensation, and Liability Act of 1980 (42 U.S.C. 9620(a)(4))

is amended by inserting ‘‘or facilities that are the subject of a

deferral under subsection (h)(3)(C)’’ after ‘‘United States’’.

Subtitle D—Commissaries and

Nonappropriated Fund Instrumentalities

SEC. 341. CONTRACTS WITH OTHER AGENCIES TO PROVIDE OR

OBTAIN GOODS AND SERVICES TO PROMOTE EFFICIENT

OPERATION AND MANAGEMENT OF EXCHANGES AND

MORALE, WELFARE, AND RECREATION ACTIVITIES.

(a) CONTRACTS TO PROMOTE EFFICIENT OPERATION AND

MANAGEMENT.—(1) Chapter 147 of title 10, United States Code,

is amended by inserting after section 2482 the following new section:
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2489

‘‘§ 2482a. Nonappropriated fund instrumentalities: contracts

with other agencies and instrumentalities to provide and obtain goods and services

‘‘An agency or instrumentality of the Department of Defense

that supports the operation of the exchange system, or the operation

of a morale, welfare, and recreation system, of the Department

of Defense may enter into a contract or other agreement with

another element of the Department of Defense or with another

Federal department, agency, or instrumentality to provide or obtain

goods and services beneficial to the efficient management and operation of the exchange system or that morale, welfare, and recreation

system.’’.

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

is amended by inserting after the item relating to section 2482

the following new item:

‘‘2482a. Nonappropriated fund instrumentalities: contracts with other agencies and

instrumentalities to provide and obtain goods and services.’’.

(b) CONFORMING AMENDMENT REGARDING COMMISSARY SYSTEM.—Section 2482(b)(1) of such title is amended by striking out

‘‘another department’’ and all that follows through ‘‘provide services’’

and inserting in lieu thereof ‘‘another element of the Department

of Defense or with another Federal department, agency, or

instrumentality to provide or obtain services’’.

SEC. 342. NONCOMPETITIVE PROCUREMENT OF BRAND-NAME

COMMERCIAL ITEMS FOR RESALE IN COMMISSARY

STORES.

(a) CLARIFICATION OF EXCEPTION TO COMPETITIVE PROCUREMENT.—Section 2486 of title 10, United States Code, is amended

by adding at the end the following new subsection:

‘‘(e) The Secretary of Defense may not use the exception provided in section 2304(c)(5) of this title regarding the procurement

of a brand-name commercial item for resale in commissary stores

unless the commercial item is regularly sold outside of commissary

stores under the same brand name as the name by which the

commercial item will be sold in commissary stores.’’.

(b) EFFECT ON EXISTING CONTRACTS OR OTHER AGREEMENTS.—

Section 2486(e) of title 10, United States Code, as added by subsection (a), shall not affect the terms, conditions, or duration of

any contract or other agreement entered into by the Secretary

of Defense before the date of the enactment of this Act for the

procurement of commercial items for resale in commissary stores.

SEC. 343. PROHIBITION OF SALE OR RENTAL OF SEXUALLY EXPLICIT

MATERIAL.

(a) IN GENERAL.—(1) Chapter 147 of title 10, United States

Code, is amended by inserting after section 2489 the following

new section:

‘‘§ 2489a. Sale or rental of sexually explicit material prohibited

‘‘(a) PROHIBITION OF SALE OR RENTAL.—The Secretary of

Defense may not permit the sale or rental of sexually explicit

material on property under the jurisdiction of the Department of

Defense.

10 USC 2486

note.
110 STAT. 2490 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(b) PROHIBITION OF OFFICIALLY PROVIDED SEXUALLY EXPLICIT

MATERIAL.—A member of the armed forces or a civilian officer

or employee of the Department of Defense acting in an official

capacity may not provide for sale, remuneration, or rental sexually

explicit material to another person.

‘‘(c) REGULATIONS.—The Secretary of Defense shall prescribe

regulations to implement this section.

‘‘(d) DEFINITIONS.—In this section:

‘‘(1) The term ‘sexually explicit material’ means an audio

recording, a film or video recording, or a periodical with visual

depictions, produced in any medium, the dominant theme of

which depicts or describes nudity, including sexual or excretory

activities or organs, in a lascivious way.

‘‘(2) The term ‘property under the jurisdiction of the Department of Defense’ includes commissaries, all facilities operated

by the Army and Air Force Exchange Service, the Navy

Exchange Service Command, the Navy Resale and Services

Support Office, Marine Corps exchanges, and ships’ stores.’’.

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

is amended by inserting after the item relating to section 2489

the following new item:

‘‘2489a. Sale or rental of sexually explicit material prohibited.’’.

(b) EFFECTIVE DATE.—Subsection (a) of section 2489a of title

10, United States Code, as added by subsection (a) of this section,

shall take effect 90 days after the date of the enactment of this

Act.

Subtitle E—Performance of Functions by

Private-Sector Sources

SEC. 351. EXTENSION OF REQUIREMENT FOR COMPETITIVE

PROCUREMENT OF PRINTING AND DUPLICATION SERVICES.

(a) EXTENSION.—Section 351(a) of the National Defense

Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110

Stat. 266) is amended by striking out ‘‘fiscal year 1996’’ and inserting in lieu thereof ‘‘fiscal years 1996 and 1997’’.

(b) REPORTING REQUIREMENTS.—Such section is further

amended by adding at the end the following new subsection:

‘‘(c) REPORTING REQUIREMENTS.—(1) Not later than 90 days

after the end of each fiscal year in which the requirement of

subsection (a) applies, the Secretary of Defense shall submit to

Congress a report—

‘‘(A) describing the extent of the compliance of the Secretary

with the requirement during that fiscal year;

‘‘(B) specifying the total volume of printing and duplication

services procured by the Department of Defense during that

fiscal year—

‘‘(i) from sources within the Department of Defense;

‘‘(ii) from private-sector sources; and

‘‘(iii) from other sources in the Federal Government; and

‘‘(C) specifying the total volume of printed and duplicated

material during that fiscal year covered by the exception in

subsection (b).

10 USC 2489a

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2491

‘‘(2) The report required for fiscal year 1996 shall also include

the plans of the Secretary for further implementation of the requirement of subsection (a) during fiscal year 1997.’’.

SEC. 352. REPORTING REQUIREMENTS UNDER DEMONSTRATION

PROJECT FOR PURCHASE OF FIRE, SECURITY, POLICE,

PUBLIC WORKS, AND UTILITY SERVICES FROM LOCAL

GOVERNMENT AGENCIES.

Section 816(b) of the National Defense Authorization Act for

Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2820) is amended

by striking out ‘‘, 1996’’ and inserting in lieu thereof ‘‘of each

of the years 1997 and 1998’’.

Subtitle F—Other Matters

SEC. 361. AUTHORITY FOR USE OF APPROPRIATED FUNDS FOR

RECRUITING FUNCTIONS.

(a) AUTHORITY.—Chapter 31 of title 10, United States Code,

is amended by adding at the end the following new section:

‘‘§ 520c. Recruiting functions: use of funds

‘‘(a) PROVISION OF MEALS AND REFRESHMENTS.—Under regulations prescribed by the Secretary concerned, funds appropriated

to the Department of Defense for recruitment of military personnel

may be expended for small meals and refreshments during recruiting functions for the following persons:

‘‘(1) Persons who have enlisted under the Delayed Entry

Program authorized by section 513 of this title.

‘‘(2) Persons who are objects of armed forces recruiting

efforts.

‘‘(3) Persons whose assistance in recruiting efforts of the

military departments is determined to be influential by the

Secretary concerned.

‘‘(4) Members of the armed forces and Federal employees

when attending recruiting events in accordance with a requirement to do so.

‘‘(5) Other persons whose presence at recruiting efforts

will contribute to recruiting efforts.

‘‘(b) ANNUAL REPORT.—Not later than February 1 of each of

the years 1998 through 2002, the Secretary of Defense shall submit

to Congress a report on the extent to which the authority under

subsection (a) was exercised during the fiscal year ending in the

preceding year.

‘‘(c) TERMINATION OF AUTHORITY.—The authority in subsection

(a) may not be exercised after September 30, 2001.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following

new item:

‘‘520c. Recruiting functions: use of funds.’’.

SEC. 362. TRAINING OF MEMBERS OF THE UNIFORMED SERVICES AT

NON-GOVERNMENT FACILITIES.

(a) AUTHORITY TO ENTER INTO AGREEMENTS FOR TRAINING AT

NON-GOVERNMENT FACILITIES.—(1) Chapter 101 of title 10, United

States Code, is amended by adding at the end the following new

section:

Regulations.
110 STAT. 2492 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘§ 2013. Training at non-Government facilities

‘‘(a) AUTHORITY TO ENTER INTO AGREEMENTS.—(1) The Secretary concerned, without regard to section 3709 of the Revised

Statutes (41 U.S.C. 5), may make agreements or other arrangements

for the training of members of the uniformed services under the

jurisdiction of that Secretary by, in, or through non-Government

facilities.

‘‘(2) In this section, the term ‘non-Government facility’ means

any of the following:

‘‘(A) The government of a State or of a territory or possession of the United States, including the Commonwealth of

Puerto Rico, an interstate governmental organization, and a

unit, subdivision, or instrumentality of any of the foregoing.

‘‘(B) A foreign government or international organization,

or instrumentality of either, which is designated by the President as eligible to provide training under this section.

‘‘(C) A medical, scientific, technical, educational, research,

or professional institution, foundation, or organization.

‘‘(D) A business, commercial, or industrial firm, corporation,

partnership, proprietorship, or other organization.

‘‘(E) Individuals other than civilian or military personnel

of the Government.

‘‘(F) The services and property of any of the foregoing

providing the training.

‘‘(b) EXPENSES.—The Secretary concerned, from appropriations

or other funds available to the Secretary, may—

‘‘(1) pay all or a part of the pay of a member of a uniformed

service who is selected and assigned for training under this

section, for the period of training; and

‘‘(2) pay, or reimburse the member of a uniformed service

for, all or a part of the necessary expenses of the training

(without regard to subsections (a) and (b) of section 3324 of

title 31), including among those expenses the necessary costs

of the following:

‘‘(A) Travel and per diem instead of subsistence under

sections 404 and 405 of title 37 and the Joint Travel

Regulations for the Uniformed Services.

‘‘(B) Transportation of immediate family, household

goods and personal effects, packing, crating, temporarily

storing, draying, and unpacking under sections 406 and

409 of title 37 and the Joint Travel Regulations for the

Uniformed Services when the estimated costs of transportation and related services are less than the estimated

aggregate per diem payments for the period of training.

‘‘(C) Tuition and matriculation fees.

‘‘(D) Library and laboratory services.

‘‘(E) Purchase or rental of books, materials, and

supplies.

‘‘(F) Other services or facilities directly related to the

training of the member.

‘‘(c) CERTAIN EXPENSES EXCLUDED.—The expenses of training

do not include membership fees except to the extent that the fee

is a necessary cost directly related to the training itself or that

payment of the fee is a condition precedent to undergoing the

training.’’.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2493

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

is amended by adding at the end the following new item:

‘‘2013. Training at non-Government facilities.’’.

(b) EFFECTIVE DATE.—Section 2013 of title 10, United States

Code, as added by subsection (a), shall take effect on October

1, 1996.

SEC. 363. REQUIREMENT FOR PREPARATION OF PLAN FOR IMPROVED

OPERATION OF WORKING-CAPITAL FUNDS AND EFFECT OF

FAILURE TO PRODUCE AN APPROVED PLAN.

(a) PLAN FOR IMPROVED OPERATION OF WORKING-CAPITAL

FUNDS.—Not later than September 30, 1997, the Secretary of

Defense shall submit to Congress a plan to improve the management and performance of the industrial, commercial, and support

type activities of the military departments or the Defense Agencies

that are currently managed through the Defense Business Operations Fund.

(b) ELEMENTS OF PLAN.—The plan required by subsection (a)

shall address the following issues:

(1) The ability of each military department or Defense

Agency to set working capital requirements and set charges

at its own industrial and supply activities.

(2) The desirability of separate business accounts for the

management of both industrial and supply activities for each

military department or Defense Agency.

(3) Liability for operation losses at industrial and supply

activities.

(4) Reimbursement to the Department of Defense by each

military department or Defense Agency of its fair share of

the costs of legitimate common business support services (such

as accounting and financial services and central logistics services) provided by the Department of Defense.

(5) The role of the Department of Defense in setting charges

or imposing surcharges for activities managed by the business

accounts of a military department or Defense Agency (except

for the common business support cost described in paragraph

(4)), and what such charges should properly reflect.

(6) The appropriate use of operating profits arising from

the operations of the industrial and supply activities of a military department or Defense Agency.

(7) The ability of a military department or Defense Agency

to purchase industrial and supply services from, and provide

such services to, other military departments or Defense Agencies.

(8) Standardization of financial management and accounting practices employed by the business accounts of a military

department or Defense Agency.

(9) Reporting requirements related to actual and projected

performance of business management account activities of a

military department or Defense Agency.

(c) EFFECT OF FAILURE TO SUBMIT OR APPROVE OF PLAN.—

(1) Unless, before October 1, 1999, the Secretary of Defense submits

the plan required by subsection (a) and Congress enacts a provision

of law described in paragraph (2) that approves of the plan as

submitted or in an amended form, then section 2216a of title

10, United States Code, regarding the Defense Business Operations

10 USC 2216a.

10 USC 2216a

note.

10 USC 2013

note.
110 STAT. 2494 PUBLIC LAW 104–201—SEPT. 23, 1996

Fund (as redesignated by section 1074(a)(10) of this Act), shall

be repealed effective as of that date.

(2) The provision of law referred to in paragraph (1) is a

provision of law that—

(A) is enacted after the submission of the plan required

by subsection (a);

(B) specifically refers to the plan and this section; and

(C) specifically states that the plan required by subsection

(a) is approved as submitted or with such amendments as

may be contained in such law.

(d) BASIS FOR CHARGES FOR GOODS AND SERVICES; COMPTROL- LER GENERAL REVIEW.—(1) In the development of the proposed

budget for the Defense Business Operations Fund for a fiscal year,

the Secretary of Defense shall ensure that accurate and realistic

pricing and quantity estimates are used regarding the goods and

services to be provided by working-capital funds and industrial,

commercial, and support type activities managed through the Fund.

(2) The Secretary of Defense shall make available to the

Comptroller General information used to establish the charges for

goods and services to be provided by working-capital funds and

industrial, commercial, and support type activities managed

through the Fund. The Comptroller General shall conduct an annual

review of the adequacy of the basis for the charges. Not later

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

annual report and proposed budget for the Fund under subsection

(h) of section 2216a of title 10, United States Code, as redesignated

by section 1074(a)(10) of this Act, the Comptroller General shall

submit to Congress a report containing the results of the review.

SEC. 364. INCREASE IN CAPITAL ASSET THRESHOLD UNDER DEFENSE

BUSINESS OPERATIONS FUND.

Section 2216a of title 10, United States Code, as redesignated

by section 1074(a)(10) of this Act, is amended in subsection (i)(1)

by striking out ‘‘$50,000’’ and inserting in lieu thereof ‘‘$100,000’’.

SEC. 365. EXPANSION OF AUTHORITY TO DONATE UNUSABLE FOOD.

(a) AUTHORITY FOR DONATIONS FROM DEFENSE AGENCIES.— Section 2485 of title 10, United States Code, is amended by striking

out ‘‘Secretary of a military department’’ in subsections (a) and

(b) and inserting in lieu thereof ‘‘Secretary of Defense’’.

(b) EXPANSION OF ELIGIBLE RECIPIENTS.—Such section is further amended—

(1) in subsection (a), by striking out ‘‘authorized charitable

nonprofit food banks’’ and inserting in lieu thereof ‘‘entities

specified under subsection (d)’’; and

(2) in subsection (d), by striking out ‘‘may only be made’’

and all that follows and inserting in lieu thereof the following:

‘‘may only be made to an entity that is one of the following:

‘‘(1) A charitable nonprofit food bank that is designated

by the Secretary of Defense or the Secretary of Health and

Human Services as authorized to receive such donations.

‘‘(2) A State or local agency that is designated by the

Secretary of Defense or the Secretary of Health and Human

Services as authorized to receive such donations.

‘‘(3) A chapter or other local unit of a recognized national

veterans organization that provides services to persons without

adequate shelter and is designated by the Secretary of Veterans

Affairs as authorized to receive such donations.

Reports.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2495

‘‘(4) A not-for-profit organization that provides care for

homeless veterans and is designated by the Secretary of Veterans Affairs as authorized to receive such donations.’’.

(c) CLARIFICATION OF FOOD THAT MAY BE DONATED.—Subsection (b) of such section is further amended by inserting ‘‘rations

known as humanitarian daily rations (HDRs),’’ after ‘‘(MREs),’’.

SEC. 366. ASSISTANCE TO COMMITTEES INVOLVED IN INAUGURATION

OF THE PRESIDENT.

(a) IN GENERAL.—Section 2543 of title 10, United States Code,

is amended to read as follows:

‘‘§ 2543. Equipment and services: Presidential inaugural

ceremonies

‘‘(a) ASSISTANCE AUTHORIZED.—The Secretary of Defense may,

with respect to the ceremonies relating to the inauguration of a President, provide the assistance referred to in subsection

(b) to—

‘‘(1) the Presidential Inaugural Committee; and

‘‘(2) the congressional Joint Inaugural Committee.

‘‘(b) ASSISTANCE.—Assistance that may be provided under subsection (a) is the following:

‘‘(1) Planning and carrying out activities relating to security

and safety.

‘‘(2) Planning and carrying out ceremonial activities.

‘‘(3) Loan of property.

‘‘(4) Any other assistance that the Secretary considers

appropriate.

‘‘(c) REIMBURSEMENT.—(1) The Presidential Inaugural Committee shall reimburse the Secretary for any costs incurred in connection with the provision to the committee of assistance referred

to in subsection (b)(4).

‘‘(2) Costs reimbursed under paragraph (1) shall be credited

to the appropriations from which the costs were paid. The amount

credited to an appropriation shall be proportionate to the amount

of the costs charged to that appropriation.

‘‘(d) LOANED PROPERTY.—With respect to property loaned for

a presidential inauguration under subsection (b)(3), the Presidential

Inaugural Committee shall—

‘‘(1) return that property within nine days after the date

of the ceremony inaugurating the President;

‘‘(2) give good and sufficient bond for the return in good

order and condition of that property;

‘‘(3) indemnify the United States for any loss of, or damage

to, that property; and

‘‘(4) defray any expense incurred for the delivery, return,

rehabilitation, replacement, or operation of that property.

‘‘(e) DEFINITIONS.—In this section:

‘‘(1) The term ‘Presidential Inaugural Committee’ means

the committee referred to in subsection (b)(2) of the first section

of the Presidential Inaugural Ceremonies Act (36 U.S.C. 721)

that is appointed with respect to the inauguration of a President-elect and Vice President-elect.

‘‘(2) The term ‘congressional Joint Inaugural Committee’

means the joint committee of the Senate and House of Representatives referred to in the proviso in section 9 of the Presidential Inaugural Ceremonies Act (36 U.S.C. 729) that is
110 STAT. 2496 PUBLIC LAW 104–201—SEPT. 23, 1996

appointed with respect to the inauguration of a Presidentelect and Vice President-elect.’’.

(b) CLERICAL AMENDMENT.—The item relating to section 2543

in the table of sections at the beginning of chapter 152 of such

title is amended to read as follows:

‘‘2543. Equipment and services: Presidential inaugural ceremonies.’’.

SEC. 367. DEPARTMENT OF DEFENSE SUPPORT FOR SPORTING

EVENTS.

(a) AUTHORITY TO PROVIDE SUPPORT.—Subchapter II of chapter

152 of title 10, United States Code, is amended by adding at

the end the following new section:

‘‘§ 2554. Provision of support for certain sporting events

‘‘(a) SECURITY AND SAFETY ASSISTANCE.—At the request of a

Federal, State, or local government agency responsible for providing

law enforcement services, security services, or safety services, the

Secretary of Defense may authorize the commander of a military

installation or other facility of the Department of Defense or the

commander of a specified or unified combatant command to provide

assistance for the World Cup Soccer Games, the Goodwill Games,

the Olympics, and any other civilian sporting event in support

of essential security and safety at such event, but only if the

Attorney General certifies that such assistance is necessary to meet

essential security and safety needs.

‘‘(b) OTHER ASSISTANCE.—The Secretary of Defense may authorize a commander referred to in subsection (a) to provide assistance

for a sporting event referred to in that subsection in support of

other needs relating to such event, but only—

‘‘(1) to the extent that such needs cannot reasonably be

met by a source other than the Department;

‘‘(2) to the extent that the provision of such assistance

does not adversely affect the military preparedness of the armed

forces; and

‘‘(3) if the organization requesting such assistance agrees

to reimburse the Department for amounts expended by the

Department in providing the assistance in accordance with

the provisions of section 377 of this title and other applicable

provisions of law.

‘‘(c) INAPPLICABILITY TO CERTAIN EVENTS.—Subsections (a) and

(b) do not apply to the following sporting events:

‘‘(1) Sporting events for which funds have been appropriated before the date of the enactment of this Act.

‘‘(2) The Special Olympics.

‘‘(3) The Paralympics.

‘‘(d) TERMS AND CONDITIONS.—The Secretary of Defense may

require such terms and conditions in connection with the provision

of assistance under this section as the Secretary considers necessary

and appropriate to protect the interests of the United States.

‘‘(e) REPORT ON ASSISTANCE.—Not later than January 30 of

each year following a year in which the Secretary of Defense provides assistance under this section, the Secretary shall submit

to Congress a report on the assistance provided. The report shall

set forth—

‘‘(1) a description of the assistance provided;

‘‘(2) the amount expended by the Department in providing

the assistance;
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2497

‘‘(3) if the assistance was provided under subsection (a),

the certification of the Attorney General with respect to the

assistance under that subsection; and

‘‘(4) if the assistance was provided under subsection (b)—

‘‘(A) an explanation why the assistance could not

reasonably be met by a source other than the Department;

and

‘‘(B) the amount the Department was reimbursed under

that subsection.

‘‘(f) RELATIONSHIP TO OTHER LAWS.—Assistance provided under

this section shall be subject to the provisions of sections 375 and

376 of this title.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such subchapter is amended by adding at the end the

following new item:

‘‘2554. Provision of support for certain sporting events.’’.

SEC. 368. STORAGE OF MOTOR VEHICLE IN LIEU OF TRANSPORTATION.

(a) STORAGE AUTHORIZED.—(1) Section 2634 of title 10, United

States Code, is amended—

(A) by redesignating subsection (b) as subsection (g);

(B) by transferring subsection (g), as so redesignated, to

the end of such section; and

(C) by inserting after subsection (a) the following new

subsection:

‘‘(b)(1) In lieu of transportation authorized by this section,

if a member is ordered to make a change of permanent station

to a foreign country and the laws, regulations, or other restrictions

imposed by the foreign country or the United States preclude entry

of a motor vehicle described in subsection (a) into that country,

or would require extensive modification of the vehicle as a condition

to entry, the member may elect to have the vehicle stored at

the expense of the United States at a location approved by the

Secretary concerned.

‘‘(2) If a member is transferred or assigned in connection with

a contingency operation to duty at a location other than the permanent station of the member for a period of more than 30 consecutive

days, but the transfer or assignment is not considered a change

of permanent station, the member may elect to have a motor vehicle

described in subsection (a) stored at the expense of the United

States at a location approved by the Secretary concerned.

‘‘(3) Authorized expenses under this subsection include costs

associated with the delivery of the motor vehicle for storage and

removal of the vehicle for delivery to a destination approved by

the Secretary concerned.’’.

(2)(A) The heading of such section is amended to read as

follows:
110 STAT. 2498 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘§ 2634. Motor vehicles: transportation or storage for members on change of permanent station or extended

deployment’’.

(B) The item relating to such section in the table of sections

at the beginning of chapter 157 of title 10, United States Code,

is amended to read as follows:

‘‘2634. Motor vehicles: transportation or storage for members on change of permanent station or extended deployment.’’.

(b) CONFORMING AMENDMENT.—Subparagraph (B) of section

406(h)(1) of title 37, United States Code, is amended to read as

follows:

‘‘(B) in the case of a member described in paragraph (2)(A),

authorize the transportation of one motor vehicle, which is

owned or leased by the member (or a dependent of the member)

and is for the personal use of a dependent of the member,

to that location by means of transportation authorized under

section 2634 of title 10 or authorize the storage of the motor

vehicle pursuant to subsection (b) of such section.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall take effect on April 1, 1997.

SEC. 369. SECURITY PROTECTIONS AT DEPARTMENT OF DEFENSE

FACILITIES IN NATIONAL CAPITAL REGION.

(a) EXPANSION OF AUTHORITY.—Subsection (b) of section 2674

of title 10, United States Code, is amended by striking out ‘‘at

the Pentagon Reservation’’ and inserting in lieu thereof ‘‘in the

National Capital Region’’.

(b) CLERICAL AMENDMENTS.—(1) The heading of such section

is amended to read as follows:

‘‘§ 2674. Operation and control of Pentagon Reservation and

defense facilities in National Capital Region’’.

(2) The item relating to such section in the table of sections

at the beginning of chapter 159 of such title is amended to read

as follows:

‘‘2674. Operation and control of Pentagon Reservation and defense facilities in National Capital Region.’’.

SEC. 370. ADMINISTRATION OF MIDSHIPMEN’S STORE AND OTHER

NAVAL ACADEMY SUPPORT ACTIVITIES AS NONAPPROPRIATED FUND INSTRUMENTALITY.

(a) IN GENERAL.—Section 6971 of title 10, United States Code,

is amended to read as follows:

‘‘§ 6971. Midshipmen’s store, trade shops, dairy, and laundry: nonappropriated fund instrumentality and

accounts

‘‘(a) OPERATION AS NONAPPROPRIATED FUND INSTRUMENTAL- ITY.—The Superintendent of the Naval Academy shall operate the

Naval Academy activities referred to in subsection (b) as a nonappropriated fund instrumentality under the jurisdiction of the

Navy.

‘‘(b) COVERED ACTIVITIES.—The nonappropriated fund

instrumentality required under subsection (a) shall consist of the

following Naval Academy activities:

‘‘(1) The midshipmen’s store.

‘‘(2) The barber shop.

10 USC 2634

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2499

‘‘(3) The cobbler shop.

‘‘(4) The tailor shop.

‘‘(5) The dairy.

‘‘(6) The laundry.

‘‘(c) NONAPPROPRIATED FUND ACCOUNTS.—The Superintendent

of the Naval Academy shall administer a separate nonappropriated

fund account for each of the Naval Academy activities included

in the nonappropriated fund instrumentality required under subsection (a).

‘‘(d) CREDITING OF REVENUE.—The Superintendent shall credit

all revenue received from a Naval Academy activity referred to

in subsection (b) to the account administered with respect to that

activity under subsection (c), and amounts so credited shall be

available for operating expenses of that activity.

‘‘(e) REGULATIONS.—This section shall be carried out under

regulations prescribed by the Secretary of the Navy.’’.

(b) CIVIL SERVICE EMPLOYMENT STATUS OF EMPLOYEES OF COVERED ACTIVITIES.—Section 2105(b) of title 5, United States Code,

is amended—

(1) by inserting ‘‘who is’’ after ‘‘An individual’’; and

(2) by inserting ‘‘and whose employment in such a position

began before October 1, 1996, and has been uninterrupted

in such a position since that date’’ after ‘‘Academy dairy,’’.

(c) CONFORMING REPEAL.—Section 6970 of title 10, United

States Code, is repealed.

(d) CLERICAL AMENDMENTS.—The table of sections at the beginning of chapter 603 of title 10, United States Code, is amended

by striking out the items relating to sections 6970 and 6971 and

inserting in lieu thereof the following new item:

‘‘6971. Midshipmen’s store, trade shops, dairy, and laundry: nonappropriated fund

instrumentality and accounts.’’.

(e) EFFECTIVE DATE.—The amendments made by this section

shall take effect on October 1, 1996.

SEC. 371. REIMBURSEMENT UNDER AGREEMENT FOR INSTRUCTION

OF CIVILIAN STUDENTS AT FOREIGN LANGUAGE

INSTITUTE OF THE DEFENSE LANGUAGE INSTITUTE.

(a) AUTHORITY TO ACCEPT REIMBURSEMENT IN KIND.—Section

559(a)(1) of the National Defense Authorization Act for Fiscal Year

1995 (Public Law 103–337; 108 Stat. 2776; 10 U.S.C. 4411 note)

is amended—

(1) by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively; and

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

‘‘(c) REIMBURSEMENT OPTIONS FOR CERTAIN INSTRUCTION.—In

the case of instruction provided to students described in subsection

(a)(1), the Secretary may provide the instruction on a cost-reimbursable basis, a reimbursement-in-kind basis, or a combination of

both options. Regardless of the reimbursement option, the value

of the reimbursement received under this subsection may not be

less than the amount charged for providing language instruction

to Federal employees who are not Department of Defense employees.

The Secretary may not delegate the authority to accept an offer

for in-kind reimbursement below the level of the Assistant Secretary

of the Army.’’.

5 USC 2105 note.
110 STAT. 2500 PUBLIC LAW 104–201—SEPT. 23, 1996

(b) CONFORMING AMENDMENTS.—Such section is further

amended—

(1) in subsection (a)(1), by striking out ‘‘cost-reimbursable,’’; and

(2) in subsection (d), as redesignated by subsection (a)(1)

of this section, by striking out ‘‘subsection (a)’’ the first place

it appears and inserting in lieu thereof ‘‘subsection (a) or (c)’’.

SEC. 372. 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 1997.—Of the amounts authorized to be appropriated

in section 301(5)—

(1) $30,000,000 shall be available for providing educational

agencies assistance (as defined in subsection (d)(1)) to local

educational agencies; and

(2) $5,000,000 shall be available for making educational

agencies payments (as defined in subsection (d)(2)) to local

educational agencies.

(b) NOTIFICATION.—Not later than June 30, 1997, the Secretary

of Defense shall—

(1) notify each local educational agency that is eligible

for educational agencies assistance for fiscal year 1997 of that

agency’s eligibility for such assistance and the amount of such

assistance for which that agency is eligible; and

(2) notify each local educational agency that is eligible

for an educational agencies payment for fiscal year 1997 of

that agency’s eligibility for such payment and the amount of

the payment for which that agency is eligible.

(c) DISBURSEMENT OF FUNDS.—The Secretary of Defense shall

disburse funds made available under paragraphs (1) and (2) of

subsection (a) not later than 30 days after the date on which

notification to the eligible local educational agencies is provided

pursuant to subsection (b).

(d) DEFINITIONS.—In this section:

(1) The term ‘‘educational agencies assistance’’ means

assistance authorized under section 386(b) of the National

Defense Authorization Act for Fiscal Year 1993 (Public Law

102–484; 20 U.S.C. 7703 note).

(2) The term ‘‘educational agencies payments’’ means payments authorized under section 386(d) of the National Defense

Authorization Act for Fiscal Year 1993 (Public Law 102–484;

20 U.S.C. 7703 note).

(3) The term ‘‘local educational agency’’ has the meaning

given that term in section 8013(9) of the Elementary and

Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

SEC. 373. RENOVATION OF BUILDING FOR DEFENSE FINANCE AND

ACCOUNTING SERVICE CENTER, FORT BENJAMIN

HARRISON, INDIANA.

(a) TRANSFER AUTHORITY.—To pay the costs of planning, design,

and renovation of Building One, Fort Benjamin Harrison, Indiana,

for use as a Defense Finance and Accounting Service Center, the

Secretary of Defense may transfer to the Administrator of General

Services in the manner provided in subsection (b) funds available
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2501

to the Department of Defense for the Defense Finance and Accounting Service for a fiscal year for operation and maintenance.

(b) AUTHORITY SUBJECT TO AUTHORIZATIONS AND APPROPRIATIONS.—To the extent provided in appropriations Acts—

(1) of funds described in subsection (a) and appropriated

for fiscal year 1997, $9,000,000 may be transferred under such

subsection; and

(2) of funds described in subsection (a) and appropriated

for fiscal years 1998, 1999, 2000, and 2001, funds may be

transferred under such subsection in such amounts as are

authorized to be transferred in an Act enacted after the date

of the enactment of this Act.

(c) AUTHORITY SUBJECT TO AGREEMENT BETWEEN DEPARTMENT

OF DEFENSE AND GENERAL SERVICES ADMINISTRATION.—The transfer authority provided in subsection (a) shall not take effect until

the date on which the Secretary of Defense and the Administrator

of General Services enter into an agreement that provides for the

Department of Defense to receive a full reimbursement for the

funds transferred under such subsection. Such reimbursement may

include reimbursement in the form of reduced or static rental

rates for Building One.

SEC. 374. FOOD DONATION PILOT PROGRAM AT SERVICE ACADEMIES.

(a) PROGRAM AUTHORIZED.—The Secretaries of the military

departments and the Secretary of Transportation may each carry

out a food donation pilot program at the service academy under

the jurisdiction of such Secretary.

(b) DONATIONS AND COLLECTIONS OF FOOD AND GROCERY PRODUCTS.—Under the pilot program, the Secretary concerned may

donate to, and permit others to collect for, a nonprofit organization

any food or grocery product that—

(1) is—

(A) an apparently wholesome food;

(B) an apparently fit grocery product; or

(C) a food or grocery product that is donated in accordance with section 402(e) of the National and Community

Service Act of 1990 (42 U.S.C. 12672(e));

(2) is owned by the United States;

(3) is located at a service academy under the jurisdiction

of such Secretary; and

(4) is excess to the requirements of the academy.

(c) PROGRAM COMMENCEMENT.—The Secretary concerned shall

commence carrying out the pilot program, if at all, during fiscal

year 1997.

(d) APPLICABILITY OF GOOD SAMARITAN FOOD DONATION ACT.—

Section 402 of the National and Community Service Act of 1990

(42 U.S.C. 12672) shall apply to donations and collections of food

and grocery products under the pilot program without regard to

section 403 of such Act (42 U.S.C. 12673).

(e) REPORTS.—(1) Each Secretary that carries out a pilot program at a service academy under this section shall submit to

Congress an interim report and a final report on the pilot program.

(2) The Secretary concerned shall submit the interim report

not later than one year after the date on which the Secretary

commences the pilot program at a service academy.

Effective date.
110 STAT. 2502 PUBLIC LAW 104–201—SEPT. 23, 1996

(3) The Secretary concerned shall submit the final report not

later than 90 days after the Secretary completes the pilot program

at a service academy.

(4) Each report shall include the following:

(A) A description of the conduct of the pilot program.

(B) A discussion of the experience under the pilot program.

(C) An evaluation of the extent to which section 402 of

the National and Community Service Act of 1990 (42 U.S.C.

12672) has been effective in protecting the United States and

others from liabilities associated with actions taken under the

pilot program.

(D) Any recommendations for legislation to facilitate donations or collections of excess food and grocery products of the

United States or others for nonprofit organizations.

(f) DEFINITIONS.—For purposes of this section:

(1) The term ‘‘service academy’’ means each of the following:

(A) The United States Military Academy.

(B) The United States Naval Academy.

(C) The United States Air Force Academy.

(D) The United States Coast Guard Academy.

(2) The term ‘‘Secretary concerned’’ means the following:

(A) The Secretary of the Army, with respect to the

United States Military Academy.

(B) The Secretary of the Navy, with respect to the

United States Naval Academy.

(C) The Secretary of the Air Force, with respect to

the United States Air Force Academy.

(D) The Secretary of Transportation, with respect to

the United States Coast Guard Academy.

(3) The terms ‘‘apparently fit grocery product’’, ‘‘apparently

wholesome food’’, ‘‘donate’’, ‘‘food’’, and ‘‘grocery product’’ have

the meanings given those terms in section 402(b) of the National

and Community Service Act of 1990 (42 U.S.C. 12672(b)).

SEC. 375. AUTHORITY OF AIR NATIONAL GUARD TO PROVIDE CERTAIN

SERVICES AT LINCOLN MUNICIPAL AIRPORT, LINCOLN,

NEBRASKA.

(a) AUTHORITY.—The Nebraska Air National Guard may provide

fire protection services and rescue services relating to aircraft at

Lincoln Municipal Airport, Lincoln, Nebraska, on behalf of the

Lincoln Municipal Airport Authority, Lincoln, Nebraska.

(b) AGREEMENT.—The Nebraska Air National Guard may not

provide services under subsection (a) until the Nebraska Air

National Guard and the authority enter into an agreement under

which the authority agrees—

(1) to reimburse the Nebraska Air National Guard for

the cost of the services provided; and

(2) to hold harmless and indemnify the United States,

except in cases of willful misconduct or gross negligence, from

any claim for damages or injury to any person or property

arising out of the provision of, or the failure to provide, such

services.

(c) EFFECT ON MILITARY PREPAREDNESS.—Services may only

be provided under subsection (a) to the extent that the provision

of such services does not adversely affect the military preparedness

of the Armed Forces.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2503

SEC. 376. TECHNICAL AMENDMENT REGARDING IMPACT AID

PROGRAM.

Paragraph (3) of section 8003(a) of the Elementary and

Secondary Education Act of 1965 (20 U.S.C. 7703(a)) is amended

by striking out ‘‘2,000 and such number equals or exceeds 15’’

and inserting in lieu thereof ‘‘1,000 or such number equals or

exceeds 10’’.

TITLE IV—MILITARY PERSONNEL

AUTHORIZATIONS

Subtitle A—Active Forces

Sec. 401. End strengths for active forces.

Sec. 402. Permanent end strength levels to support two major regional contingencies.

Sec. 403. Authorized strengths for commissioned officers on active duty in grades

of major, lieutenant colonel, and colonel and navy grades of lieutenant

commander, commander, and captain.

Sec. 404. Extension of requirement for recommendations regarding appointments to

joint 4-star officer positions.

Sec. 405. Increase in authorized number of general officers on active duty in the

Marine Corps.

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. End strengths for military technicians.

Sec. 414. Assurance of continued assignment of military personnel to serve in

Selective Service System.

Subtitle C—Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

Subtitle A—Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

The Armed Forces are authorized strengths for active duty

personnel as of September 30, 1997, as follows:

(1) The Army, 495,000.

(2) The Navy, 407,318.

(3) The Marine Corps, 174,000.

(4) The Air Force, 381,100.

SEC. 402. PERMANENT END STRENGTH LEVELS TO SUPPORT TWO

MAJOR REGIONAL CONTINGENCIES.

(a) REQUIREMENT TO BUDGET FOR AND MAINTAIN STATUTORY

END STRENGTH LEVELS.—Section 691 of title 10, United States

Code, is amended—

(1) by redesignating subsections (d) and (e) as subsections

(e) and (f), respectively; and

(2) by striking out subsection (c) and inserting in lieu

thereof the following:

‘‘(c) The budget for the Department of Defense for any fiscal

year as submitted to Congress shall include amounts for funding

for each of the armed forces (other than the Coast Guard) at

least in the amounts necessary to maintain the active duty end

strengths prescribed in subsection (b), as in effect at the time

that such budget is submitted.

10 USC 115 note.
110 STAT. 2504 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(d) 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 (other than the Coast Guard) for

any fiscal year below the level specified in subsection (b) unless

the reduction in end strength for that armed force for that fiscal

year is specifically authorized by law.’’.

(b) TEMPORARY FLEXIBILITY RELATING TO PERMANENT END

STRENGTH LEVELS.—Subsection (e) of such section, as redesignated

by subsection (a)(1), is amended by striking out ‘‘not more than

0.5 percent’’ and inserting in lieu thereof ‘‘not more than 1 percent’’.

SEC. 403. AUTHORIZED STRENGTHS FOR COMMISSIONED OFFICERS

ON ACTIVE DUTY IN GRADES OF MAJOR, LIEUTENANT

COLONEL, AND COLONEL AND NAVY GRADES OF LIEUTENANT COMMANDER, COMMANDER, AND CAPTAIN.

(a) REVISION IN ARMY, AIR FORCE, AND MARINE CORPS LIMITATIONS.—The table in paragraph (1) of section 523(a) of title 10,

United States Code, is amended to read as follows:

‘‘Total number of commissioned

officers (excluding officers in

categories specified in subsection (b)) on active duty:

Number of officers who may be serving on active duty in the

grade of:

Major Lieutenant

Colonel Colonel

Army:

20,000 .......................... 6,848 5,253 1,613

25,000 .......................... 7,539 5,642 1,796

30,000 .......................... 8,231 6,030 1,980

35,000 .......................... 8,922 6,419 2,163

40,000 .......................... 9,614 6,807 2,347

45,000 .......................... 10,305 7,196 2,530

50,000 .......................... 10,997 7,584 2,713

55,000 .......................... 11,688 7,973 2,897

60,000 .......................... 12,380 8,361 3,080

65,000 .......................... 13,071 8,750 3,264

70,000 .......................... 13,763 9,138 3,447

75,000 .......................... 14,454 9,527 3,631

80,000 .......................... 15,146 9,915 3,814

85,000 .......................... 15,837 10,304 3,997

90,000 .......................... 16,529 10,692 4,181

95,000 .......................... 17,220 11,081 4,364

100,000 ........................ 17,912 11,469 4,548

110,000 ........................ 19,295 12,246 4,915

120,000 ........................ 20,678 13,023 5,281

130,000 ........................ 22,061 13,800 5,648

170,000 ........................ 27,593 16,908 7,116

Air Force:

35,000 .......................... 9,216 7,090 2,125

40,000 .......................... 10,025 7,478 2,306

45,000 .......................... 10,835 7,866 2,487

50,000 .......................... 11,645 8,253 2,668

55,000 .......................... 12,454 8,641 2,849

60,000 .......................... 13,264 9,029 3,030

65,000 .......................... 14,073 9,417 3,211
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2505

‘‘Total number of commissioned

officers (excluding officers in

categories specified in subsection (b)) on active duty:

Number of officers who may be serving on active duty in the

grade of:

Major Lieutenant

Colonel Colonel

70,000 .......................... 14,883 9,805 3,392

75,000 .......................... 15,693 10,193 3,573

80,000 .......................... 16,502 10,582 3,754

85,000 .......................... 17,312 10,971 3,935

90,000 .......................... 18,121 11,360 4,115

95,000 .......................... 18,931 11,749 4,296

100,000 ........................ 19,741 12,138 4,477

105,000 ........................ 20,550 12,527 4,658

110,000 ........................ 21,360 12,915 4,838

115,000 ........................ 22,169 13,304 5,019

120,000 ........................ 22,979 13,692 5,200

125,000 ........................ 23,789 14,081 5,381

Marine Corps:

10,000 .......................... 2,525 1,480 571

12,500 .......................... 2,900 1,600 592

15,000 .......................... 3,275 1,720 613

17,500 .......................... 3,650 1,840 633

20,000 .......................... 4,025 1,960 654

22,500 .......................... 4,400 2,080 675

25,000 .......................... 4,775 2,200 695.’’

(b) REVISION IN NAVY LIMITATIONS.—The table in paragraph

(2) of such section is amended to read as follows:

‘‘Total number of commissioned

officers (excluding officers in

categories specified in subsection (b)) on active duty:

Number of officers who may be serving on active duty in

grade of:

Lieutenant commander Commander Captain

Navy:

30,000 .......................... 7,331 5,018 2,116

33,000 .......................... 7,799 5,239 2,223

36,000 .......................... 8,267 5,460 2,330

39,000 .......................... 8,735 5,681 2,437

42,000 .......................... 9,203 5,902 2,544

45,000 .......................... 9,671 6,123 2,651

48,000 .......................... 10,139 6,343 2,758

51,000 .......................... 10,606 6,561 2,864

54,000 .......................... 11,074 6,782 2,971

57,000 .......................... 11,541 7,002 3,078

60,000 .......................... 12,009 7,222 3,185

63,000 .......................... 12,476 7,441 3,292

66,000 .......................... 12,944 7,661 3,398

70,000 .......................... 13,567 7,954 3,541

90,000 .......................... 16,683 9,419 4,254.’’

(c) REPEAL OF TEMPORARY AUTHORITY FOR VARIATIONS IN END

STRENGTHS.—The following provisions of law are repealed:
110 STAT. 2506 PUBLIC LAW 104–201—SEPT. 23, 1996

(1) Section 402 of the National Defense Authorization Act

for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1639;

10 U.S.C. 523 note).

(2) Section 402 of the National Defense Authorization Act

for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2743;

10 U.S.C. 523 note).

(3) Section 402 of the National Defense Authorization Act

for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 286; 10

U.S.C. 523 note).

(d) EFFECTIVE DATE.—The amendments made by subsections

(a), (b), and (c) shall take effect on September 1, 1997.

SEC. 404. EXTENSION OF REQUIREMENT FOR RECOMMENDATIONS

REGARDING APPOINTMENTS TO JOINT 4-STAR OFFICER

POSITIONS.

(a) SERVICE SECRETARY RECOMMENDATION REQUIRED.—Section

604(c) of title 10, United States Code, is amended by striking

out ‘‘September 30, 1997’’ and inserting in lieu thereof ‘‘September

30, 2000’’.

(b) GRADE RELIEF WHEN RECOMMENDATION MADE.—Section

525(b)(5)(C) of such title is amended by striking out ‘‘September

30, 1997’’ and inserting in lieu thereof ‘‘September 30, 2000’’.

SEC. 405. INCREASE IN AUTHORIZED NUMBER OF GENERAL OFFICERS

ON ACTIVE DUTY IN THE MARINE CORPS.

Section 526(a)(4) of title 10, United States Code, is amended

by striking out ‘‘68’’ and inserting in lieu thereof ‘‘80’’.

Subtitle B—Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

(a) IN GENERAL.—The Armed Forces are authorized strengths

for Selected Reserve personnel of the reserve components as of

September 30, 1997, as follows:

(1) The Army National Guard of the United States, 366,758.

(2) The Army Reserve, 215,179.

(3) The Naval Reserve, 96,304.

(4) The Marine Corps Reserve, 42,000.

(5) The Air National Guard of the United States, 109,178.

(6) The Air Force Reserve, 73,311.

(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.

10 USC 12001

note.

10 USC 523 note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2507

Whenever such units or such individual members are released

from active duty during any fiscal year, the end strength prescribed

for such fiscal year for the Selected Reserve of such reserve component shall be proportionately increased by the total authorized

strengths of such units and by the total number of such individual

members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

Within the end strengths prescribed in section 411(a), the

reserve components of the Armed Forces are authorized, as of

September 30, 1997, 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, 22,798.

(2) The Army Reserve, 11,729.

(3) The Naval Reserve, 16,603.

(4) The Marine Corps Reserve, 2,559.

(5) The Air National Guard of the United States, 10,403.

(6) The Air Force Reserve, 655.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS.

(a) AUTHORIZATION FOR FISCAL YEAR 1997.—The minimum

number of military technicians as of the last day of fiscal year

1997 for the reserve components of the Army and the Air Force

(notwithstanding section 129 of title 10, United States Code) shall

be the following:

(1) For the Army Reserve, 6,799.

(2) For the Army National Guard of the United States,

25,500.

(3) For the Air Force Reserve, 9,802.

(4) For the Air National Guard of the United States, 23,299.

(b) INFORMATION TO BE PROVIDED WITH FUTURE AUTHORIZA- TION REQUESTS.—Section 10216 of title 10, United States Code,

is amended—

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

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

‘‘(b) INFORMATION REQUIRED TO BE SUBMITTED WITH ANNUAL

END STRENGTH AUTHORIZATION REQUEST.—(1) The Secretary of

Defense shall include as part of the budget justification documents

submitted to Congress with the budget of the Department of Defense

for any fiscal year the following information with respect to the

end strengths for military technicians requested in that budget

pursuant to section 115(g) of this title, shown separately for each

of the Army and Air Force reserve components:

‘‘(A) The number of dual-status technicians in the high

priority units and organizations specified in subsection (a)(1).

‘‘(B) The number of technicians other than dual-status

technicians in the high priority units and organizations specified in subsection (a)(1).

‘‘(C) The number of dual-status technicians in other than

high priority units and organizations specified in subsection

(a)(1).

‘‘(D) The number of technicians other than dual-status

technicians in other than high priority units and organizations

specified in subsection (a)(1).

10 USC 115 note.

10 USC 12001

note.
110 STAT. 2508 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(2)(A) If the budget submitted to Congress for any fiscal year

requests authorization for that fiscal year under section 115(g)

of this title of a military technician end strength for a reserve

component of the Army or Air Force in a number that constitutes

a reduction from the end strength minimum established by law

for that reserve component for the fiscal year during which the

budget is submitted, the Secretary of Defense shall submit to the

congressional defense committees with that budget a justification

providing the basis for that requested reduction in technician end

strength.

‘‘(B) Any justification submitted under subparagraph (A) shall

clearly delineate—

‘‘(i) in the case of a reduction that includes a reduction

in technicians described in subparagraph (A) or (C) of paragraph (1), the specific force structure reductions forming the

basis for such requested technician reduction (and the numbers

related to those force structure reductions); and

‘‘(ii) in the case of a reduction that includes reductions

in technicians described in subparagraphs (B) or (D) of paragraph (1), the specific force structure reductions, Department

of Defense civilian personnel reductions, or other reasons forming the basis for such requested technician reduction (and the

numbers related to those reductions).’’.

(c) TECHNICAL AMENDMENTS.—Such section is further

amended—

(1) in subsection (a), by striking out ‘‘section 115’’ and

inserting in lieu thereof ‘‘section 115(g)’’; and

(2) in subsection (c), as redesignated by subsection (b)(1),

by striking out ‘‘after the date of the enactment of this section’’

both places it appears and inserting in lieu thereof ‘‘after February 10, 1996,’’.

SEC. 414. ASSURANCE OF CONTINUED ASSIGNMENT OF MILITARY

PERSONNEL TO SERVE IN SELECTIVE SERVICE SYSTEM.

(a) NUMBER OF MILITARY PERSONNEL TO BE ASSIGNED.—Section

10 of the Military Selective Service Act (50 U.S.C. App. 460) is

amended—

(1) in subsection (b)(2), by inserting ‘‘, subject to subsection

(e),’’ after ‘‘to employ such number of civilians, and’’; and

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

‘‘(e) The total number of armed forces personnel assigned to

the Selective Service System under subsection (b)(2) at any time

may not be less than the number of such personnel determined

by the Director of Selective Service to be necessary, but not to

exceed 745 persons, except that the President may assign additional

armed forces personnel to the Selective Service System during

a time of war or a national emergency declared by Congress or

the President.’’.

(b) STYLISTIC AMENDMENTS.—Subsection (b) of such section is

amended—

(1) by striking out ‘‘authorized—’’ in the matter preceding

paragraph (1) and inserting in lieu thereof ‘‘authorized to undertake the following:’’;

(2) by striking out ‘‘to’’ at the beginning of paragraphs

(1) through (7) and inserting in lieu thereof ‘‘To’’;
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2509

(3) by striking out ‘‘subject’’ at the beginning of paragraphs

(8), (9), and (10) and inserting in lieu thereof ‘‘Subject’’; and

(4) by striking out the semicolon at the end of paragraphs

(1) through (9) and inserting in lieu thereof a period.

Subtitle C—Authorization of

Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY

PERSONNEL.

There is hereby authorized to be appropriated to the Department of Defense for military personnel for fiscal year 1997 a total

of $70,056,130,000. The authorization in the preceding sentence

supersedes any other authorization of appropriations (definite or

indefinite) for such purpose for fiscal year 1997.

TITLE V—MILITARY PERSONNEL

POLICY

Subtitle A—Officer Personnel Policy

Sec. 501. Grade of Chief of Naval Research.

Sec. 502. Chief and assistant chief of Army Nurse Corps and Air Force Nurse

Corps. Sec. 503. Navy spot promotion authority for certain lieutenants with critical skills.

Sec. 504. Time for award of degrees by unaccredited educational institutions for

graduates to be considered educationally qualified for appointment as

Reserve officers in grade O–3. Sec. 505. Exception to baccalaureate degree requirement for appointment in the

Naval Reserve in grades above O–2. Sec. 506. Chief warrant officer promotions.

Sec. 507. Service credit for senior ROTC cadets and midshipmen in simultaneous

membership program. Sec. 508. Continuation on active status for certain Reserve officers of the Air Force.

Sec. 509. Reports on response to recommendations concerning improvements to

Department of Defense joint manpower process. Sec. 510. Frequency of reports to Congress on joint officer management policies.

Subtitle B—Enlisted Personnel Policy

Sec. 511. Career service reenlistments for members with at least 10 years of

service.

Sec. 512. Authority to extend period for entry on active duty under the delayed

entry program.

Subtitle C—Activation and Recall

Sec. 521. Limitations on recall of retired members to active duty.

Sec. 522. Clarification of definition of active status.

Sec. 523. Limitation of requirement for physical examinations of members of

National Guard called into Federal service.

Subtitle D—Reserve Component Retirement

Sec. 531. Increase in annual limit on days of inactive duty training creditable

toward reserve retirement.

Sec. 532. Retirement of reserve enlisted members who qualify for active duty

retirement after administrative reduction in enlisted grade.

Sec. 533. Authority for a Reserve on active duty to waive retirement sanctuary.

Sec. 534. Eligibility of Reserves for disability retirement.

Subtitle E—Other Reserve Component Matters

Sec. 541. Training for Reserves on active duty in support of the Reserves.

Sec. 542. Eligibility for enrollment in Ready Reserve mobilization income insurance

program.

Sec. 543. Reserve credit for participation in Health Professions Scholarship and

Financial Assistance Program.
110 STAT. 2510 PUBLIC LAW 104–201—SEPT. 23, 1996

Sec. 544. Amendments to Reserve Officer Personnel Management Act provisions.

Sec. 545. Report on number of advisers in active component support of Reserves

pilot program.

Sec. 546. Sense of Congress and report regarding reemployment rights for mobilized

Reservists employed in foreign countries.

Sec. 547. Payment of premiums under Mobilization Income Insurance Program.

Subtitle F—Officer Education Programs

Sec. 551. Oversight and management of Senior Reserve Officers’ Training Corps

program.

Sec. 552. Prohibition on reorganization of Army ROTC cadet command or termination of senior ROTC units pending report on ROTC.

Sec. 553. Pilot program to test expansion of ROTC program to include graduate

students.

Sec. 554. Demonstration project for instruction and support of Army ROTC units

by members of the Army Reserve and National Guard.

Sec. 555. Extension of maximum age for appointment as a cadet or midshipman in

the Senior Reserve Officers’ Training Corps and the service academies.

Sec. 556. Expansion of eligibility for education benefits to include certain Reserve

Officers’ Training Corps (ROTC) participants.

Sec. 557. Comptroller General report on cost and policy implications of permitting

up to five percent of service academy graduates to be assigned directly

to Reserve duty upon graduation.

Subtitle G—Decorations and Awards

Sec. 561. Authority for award of Medal of Honor to certain African American

soldiers who served during World War II.

Sec. 562. Waiver of time limitations for award of certain decorations to specified

persons.

Sec. 563. Replacement of certain American Theater Campaign Ribbons.

Subtitle H—Other Matters

Sec. 571. Hate crimes in the military.

Sec. 572. Disability coverage for members granted excess leave for educational or

emergency purposes.

Sec. 573. Clarification of authority of a reserve judge advocate to act as a military

notary public when not in a duty status.

Sec. 574. Panel on jurisdiction of courts-martial for the National Guard when not

in Federal service.

Sec. 575. Authority to expand law enforcement placement program to include firefighters.

Sec. 576. Improvements to program to assist separated military and civilian

personnel to obtain employment as teachers or teachers’ aides.

Sec. 577. Retirement at grade to which selected for promotion when a physical disability is found at any physical examination.

Sec. 578. Revisions to missing persons authorities.

Subtitle I—Commissioned Corps of the Public Health Service

Sec. 581. Applicability to Public Health Service of prohibition on crediting cadet or

midshipmen service at the service academies.

Sec. 582. Exception to strength limitations for Public Health Service officers

assigned to the Department of Defense.

Sec. 583. Authority to provide legal assistance to Public Health Service officers.

Subtitle A—Officer Personnel Policy

SEC. 501. GRADE OF CHIEF OF NAVAL RESEARCH.

(a) REAR ADMIRAL (UPPER HALF).—Section 5022(a) of title 10,

United States Code, is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

(2) by adding at the end the following:

‘‘(2) Unless appointed to higher grade under another provision

of law, an officer, while serving in the Office of Naval Research

as Chief of Naval Research, has the rank of rear admiral (upper

half).’’.

(b) EFFECTIVE DATE.—Paragraph (2) of section 5022(a) of title

10, United States Code, as added by subsection (a), shall take

10 USC 5022

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2511

effect upon the occurrence of the first vacancy in the position

of Chief of Naval Research after the date of the enactment of

this Act.

Sec. 502. CHIEF AND ASSISTANT CHIEF OF ARMY NURSE CORPS AND

AIR FORCE NURSE CORPS.

(a) ARMY NURSE CORPS.—(1) Subsection (b) of section 3069

of title 10, United States Code, is amended—

(A) in the first sentence, by striking out ‘‘major’’ and inserting in lieu thereof ‘‘lieutenant colonel’’;

(B) by inserting after the first sentence the following: ‘‘An

appointee who holds a lower regular grade shall be appointed

in the regular grade of brigadier general.’’; and

(C) in the last sentence, by inserting ‘‘to the same position’’

before the period at the end.

(2) Subsection (c) of such section is amended by striking out

‘‘major’’ in the first sentence and inserting in lieu thereof ‘‘lieutenant

colonel’’.

(3) The heading of such section is amended to read as follows:

‘‘§ 3069. Army Nurse Corps: composition; Chief and assistant chief; appointment; grade

(b) AIR FORCE NURSE CORPS.—Chapter 807 of such title is

amended by inserting after section 8067 the following new section:

‘‘§ 8069. Air Force nurses: Chief and assistant chief; appointment; grade

‘‘(a) POSITIONS OF CHIEF AND ASSISTANT CHIEF.—There are

a Chief and assistant chief of the Air Force Nurse Corps.

‘‘(b) CHIEF.—The Secretary of the Air Force shall appoint the

Chief from the officers of the Regular Air Force designated as

Air Force nurses whose regular grade is above lieutenant colonel

and who are recommended by the Surgeon General. An appointee

who holds a lower regular grade shall be appointed in the regular

grade of brigadier general. The Chief serves during the pleasure

of the Secretary, but not for more than three years, and may

not be reappointed to the same position.

‘‘(c) ASSISTANT CHIEF.—The Surgeon General shall appoint the

assistant chief from the officers of the Regular Air Force designated

as Air Force nurses whose regular grade is above lieutenant

colonel.’’.

(c) CLERICAL AMENDMENTS.—(1) The item relating to section

3069 in the table of sections at the beginning of chapter 307 of

such title is amended to read as follows:

‘‘3069. Army Nurse Corps: composition; Chief and assistant chief; appointment;

grade.’’.

(2) The table of sections at the beginning of chapter 807 of

such title is amended by inserting after the item relating to section

8067 the following new item:

‘‘8069. Air Force Nurse Corps: Chief and assistant chief; appointment; grade.’’.

Sec. 503. NAVY SPOT PROMOTION AUTHORITY FOR CERTAIN

LIEUTENANTS WITH CRITICAL SKILLS.

(a) ADVICE-AND-CONSENT APPOINTMENTS.—Subsection (a) of

section 5721 of title 10, United States Code, is amended by striking

out ‘‘the President alone’’ and inserting in lieu thereof ‘‘the President, by and with the advice and consent of the Senate’’.
110 STAT. 2512 PUBLIC LAW 104–201—SEPT. 23, 1996

(b) REPEAL OF TERMINATION OF AUTHORITY.—Such section is

further amended by striking out subsection (g).

(c) CLERICAL AMENDMENT.—The caption for subsection (a) is

amended to read as follows: ‘‘PROMOTION AUTHORITY FOR CERTAIN

OFFICERS WITH CRITICAL SKILLS.—’’.

SEC. 504. TIME FOR AWARD OF DEGREES BY UNACCREDITED

EDUCATIONAL INSTITUTIONS FOR GRADUATES TO BE

CONSIDERED EDUCATIONALLY QUALIFIED FOR APPOINTMENT AS RESERVE OFFICERS IN GRADE O–3.

Section 12205(c)(2)(C) of title 10, United States Code, is

amended by striking out ‘‘three years’’ and inserting in lieu thereof

‘‘eight years’’.

SEC. 505. EXCEPTION TO BACCALAUREATE DEGREE REQUIREMENT

FOR APPOINTMENT IN THE NAVAL RESERVE IN GRADES

ABOVE O–2.

Section 12205(b)(3) of title 10, United States Code, is amended

by inserting ‘‘or the Seaman to Admiral program’’ after ‘‘(NAVCAD)

program’’.

SEC. 506. CHIEF WARRANT OFFICER PROMOTIONS.

(a) REDUCTION OF MINIMUM TIME IN GRADE REQUIRED FOR

CONSIDERATION FOR PROMOTION.—Section 574(e) of title 10, United

States Code, is amended by striking out ‘‘three years of service’’

and inserting in lieu thereof ‘‘two years of service’’.

(b) BELOW-ZONE SELECTION.—Section 575(b)(1) of such title

is amended by inserting ‘‘chief warrant officer, W–3,’’ in the first

sentence after ‘‘to consider warrant officers for selection for promotion to the grade of’’.

SEC. 507. SERVICE CREDIT FOR SENIOR ROTC CADETS AND MIDSHIPMEN IN SIMULTANEOUS MEMBERSHIP PROGRAM.

(a) AMENDMENTS TO TITLE 10.—(1) Section 2106(c) of title 10,

United States Code, is amended by striking out ‘‘while serving

on active duty other than for training after July 31, 1990, while

a member of the Selected Reserve’’ and inserting in lieu thereof

‘‘performed on or after August 1, 1979, as a member of the Selected

Reserve’’.

(2) Section 2107(g) of such title is amended by striking out

‘‘while serving on active duty other than for training after July

31, 1990, while a member of the Selected Reserve’’ and inserting

in lieu thereof ‘‘performed on or after August 1, 1979, as a member

of the Selected Reserve’’.

(3) Section 2107a(g) of such title is amended by inserting

‘‘, other than enlisted service performed after August 1, 1979, as

a member of Selected Reserve’’ after ‘‘service as a cadet or with

concurrent enlisted service’’.

(b) AMENDMENT TO TITLE 37.—Section 205(d) of title 37, United

States Code, is amended by striking out ‘‘that service after July

31, 1990, that the officer performed while serving on active duty’’

and inserting in lieu thereof ‘‘for service that the officer performed

on or after August 1, 1979.’’.

(c) BENEFITS NOT TO ACCRUE FOR PRIOR PERIODS.—No increase

in pay or retired or retainer pay shall accrue for periods before

the date of the enactment of this Act by reason of the amendments

made by this section.

10 USC 2106

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2513

SEC. 508. CONTINUATION ON ACTIVE STATUS FOR CERTAIN RESERVE

OFFICERS OF THE AIR FORCE.

(a) AUTHORITY.—Section 14507 of title 10, United States Code,

is amended by adding at the end the following new subsection:

‘‘(c) TEMPORARY AUTHORITY TO RETAIN CERTAIN OFFICERS DESIGNATED AS JUDGE ADVOCATES.—(1) Notwithstanding the provisions

of subsections (a) and (b), the Secretary of the Air Force may

retain on the reserve active-status list any reserve officer of the

Air Force who is designated as a judge advocate and who obtained

the first professional degree in law while on an educational delay

program subsequent to being commissioned through the Reserve

Officers’ Training Corps.

‘‘(2) No more than 50 officers may be retained on the reserve

active-status list under the authority of paragraph (1) at any time.

‘‘(3) No officer may be retained on the reserve active-status

list under the authority of paragraph (1) for a period exceeding

three years from the date on which, but for that authority, that

officer would have been removed from the reserve active-status

list under subsection (a) or (b).

‘‘(4) The authority of the Secretary of the Air Force under

paragraph (1) expires on September 30, 2003.’’.

(b) EFFECTIVE DATE.—Subsection (c) of section 14507 of title

10, United States Code, as added by subsection (a), shall take

effect on October 1, 1996.

SEC. 509. REPORTS ON RESPONSE TO RECOMMENDATIONS CONCERNING IMPROVEMENTS TO DEPARTMENT OF DEFENSE JOINT

MANPOWER PROCESS.

(a) SEMIANNUAL REPORT.—The Secretary of Defense shall

submit to Congress a semiannual report on the status of actions

taken by the Secretary to implement the recommendations made

by the Department of Defense Inspector General in the report

of November 29, 1995, entitled ‘‘Inspection of the Department of

Defense Joint Manpower Process’’ (Report No. 96–029). The first

such report shall be submitted not later than February 1, 1997.

The requirement to submit such reports terminates after the fourth

such report is submitted.

(b) ADDITIONAL MATTER FOR FIRST REPORT.—As part of the

first report under subsection (a), the Secretary shall include the

following:

(1) The Secretary’s assessment as to the need to establish

a joint, centralized permanent organization in the Department

of Defense to determine, validate, approve, and manage military

and civilian manpower requirements resources at joint

organizations.

(2) The Secretary’s assessment of the Department of

Defense timeline and plan to increase the capability of the

joint professional military education system (including the

Armed Forces Staff College) to overcome the capacity limitations cited in the report referred to in subsection (a).

(3) The Secretary’s plan and timeline to provide the necessary training and education of reserve component officers.

(c) GAO ASSESSMENT.—The Comptroller General of the United

States shall assess the completeness and adequacy of the corrective

actions taken by the Secretary with respect to the matters covered

in the Inspector General report referred to in subsection (a). Not

later than one year after the date of the enactment of this Act,

Termination

date.

10 USC 14507

note.

Expiration date.
110 STAT. 2514 PUBLIC LAW 104–201—SEPT. 23, 1996

the Comptroller General shall submit to Congress a report, based

on the assessment under this subsection, providing the Comptroller

General’s findings and recommendations.

SEC. 510. FREQUENCY OF REPORTS TO CONGRESS ON JOINT OFFICER

MANAGEMENT POLICIES.

(a) CHANGE FROM SEMIANNUAL TO ANNUAL REPORT.—Section

662(b) of title 10, United States Code, is amended by striking

out ‘‘REPORT.—The Secretary of Defense shall periodically (and

not less often than every six months) report to Congress on the

promotion rates’’ and inserting in lieu thereof ‘‘ANNUAL REPORT.—

Not later than January 1 of each year, the Secretary of Defense

shall submit to Congress a report on the promotion rates during

the preceding fiscal year’’.

(b) TECHNICAL AND CONFORMING AMENDMENTS.—Such section

is further amended—

(1) in the first sentence, by striking out ‘‘clauses’’ and

inserting in lieu thereof ‘‘paragraphs’’; and

(2) in the second sentence—

(A) by inserting ‘‘for any fiscal year’’ after ‘‘such objectives’’; and

(B) by striking out ‘‘periodic report required by this

subsection’’ and inserting in lieu thereof ‘‘report for that

fiscal year’’.

Subtitle B—Enlisted Personnel Policy

SEC. 511. CAREER SERVICE REENLISTMENTS FOR MEMBERS WITH AT

LEAST 10 YEARS OF SERVICE.

Subsection (d) of section 505 of title 10, United States Code,

is amended to read as follows:

‘‘(d)(1) The Secretary concerned may accept a reenlistment in

the Regular Army, Regular Navy, Regular Air Force, Regular

Marine Corps, or Regular Coast Guard, as the case may be, for

a period determined under this subsection.

‘‘(2) In the case of a member who has less than 10 years

of service in the armed forces as of the day before the first day

of the period for which reenlisted, the period for which the member

reenlists shall be at least two years but not more than six years.

‘‘(3) In the case of a member who has at least 10 years of

service in the armed forces as of the day before the first day

of the period for which reenlisted, the Secretary concerned may

accept a reenlistment for either—

‘‘(A) a specified period of at least two years but not more

than six years; or

‘‘(B) an unspecified period.

‘‘(4) No enlisted member is entitled to be reenlisted for a period

that would expire before the end of the member’s current enlistment.’’.

SEC. 512. AUTHORITY TO EXTEND PERIOD FOR ENTRY ON ACTIVE

DUTY UNDER THE DELAYED ENTRY PROGRAM.

(a) AUTHORITY.—Section 513(b) of title 10, United States Code,

is amended by inserting after the first sentence the following:

‘‘The Secretary concerned may extend the 365-day period for any

person for up to an additional 180 days if the Secretary determines
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2515

that it is in the best interests of the armed force of which that

person is a member to do so.’’.

(b) TECHNICAL AMENDMENTS.—Section 513(b) of such title, as

amended by subsection (a), is further amended—

(1) by inserting ‘‘(1)’’ after ‘‘(b)’’;

(2) by designating the third sentence as paragraph

(2); and

(3) in paragraph (2), as so designated, by striking out

‘‘the preceding sentence’’ and inserting in lieu thereof ‘‘paragraph (1)’’.

Subtitle C—Activation and Recall

SEC. 521. LIMITATIONS ON RECALL OF RETIRED MEMBERS TO ACTIVE

DUTY.

(a) REVISION AND RECODIFICATION OF AUTHORITIES RELATING

TO RETIRED MEMBERS ORDERED TO ACTIVE DUTY.—Chapter 39 of

title 10, United States Code, is amended by striking out section

688 and inserting in lieu thereof the following:

‘‘§ 688. Retired members: authority to order to active duty;

duties

‘‘(a) AUTHORITY.—Under regulations prescribed by the Secretary

of Defense, a member described in subsection (b) may be ordered

to active duty by the Secretary of the military department concerned

at any time.

‘‘(b) COVERED MEMBERS.—Except as provided in subsection (d),

subsection (a) applies to the following members of the armed forces:

‘‘(1) A retired member of the Regular Army, Regular Navy,

Regular Air Force, or Regular Marine Corps.

‘‘(2) A member of the Retired Reserve who was retired

under section 1293, 3911, 3914, 6323, 8911, or 8914 of this

title.

‘‘(3) A member of the Fleet Reserve or Fleet Marine Corps

Reserve.

‘‘(c) DUTIES OF MEMBER ORDERED TO ACTIVE DUTY.—The

Secretary concerned may, to the extent consistent with other provisions of law, assign a member ordered to active duty under this

section to such duties as the Secretary considers necessary in the

interests of national defense.

‘‘(d) EXCLUSION OF OFFICERS RETIRED ON SELECTIVE EARLY

RETIREMENT BASIS.—The following officers may not be ordered to

active duty under this section:

‘‘(1) An officer who retired under section 638 of this title.

‘‘(2) An officer who—

‘‘(A) after having been notified that the officer was

to be considered for early retirement under section 638

of this title by a board convened under section 611(b)

of this title and before being considered by that board,

requested retirement under section 3911, 6323, or 8911

of this title; and

‘‘(B) was retired pursuant to that request.

‘‘(e) LIMITATION OF PERIOD OF RECALL SERVICE.—A member

ordered to active duty under subsection (a) may not serve on active

duty pursuant to orders under that subsection for more than 12

Regulations.
110 STAT. 2516 PUBLIC LAW 104–201—SEPT. 23, 1996

months within the 24 months following the first day of the active

duty to which ordered under that subsection.

‘‘(f) WAIVER FOR PERIODS OF WAR OR NATIONAL EMERGENCY.—

Subsections (d) and (e) do not apply in time of war or of national

emergency declared by Congress or the President.

‘‘§ 689. Retired members: grade in which ordered to active

duty and upon release from active duty

‘‘(a) GENERAL RULE FOR GRADE IN WHICH ORDERED TO ACTIVE

DUTY.—Except as provided in subsections (b) and (c), a retired

member ordered to active duty under section 688 of this title

shall be ordered to active duty in the member’s retired grade.

‘‘(b) MEMBERS RETIRED IN O–9 AND O–10 GRADES.—A retired

member ordered to active duty under section 688 of this title

whose retired grade is above the grade of major general or rear

admiral shall be ordered to active duty in the highest permanent

grade held by such member while serving on active duty.

‘‘(c) MEMBERS WHO PREVIOUSLY SERVED IN GRADE HIGHER

THAN RETIRED GRADE.—(1) A retired member ordered to active

duty under section 688 of this title who has previously served

on active duty satisfactorily, as determined by the Secretary of

the military department concerned, in a grade higher than that

member’s retired grade may be ordered to active duty in the highest

grade in which the member had so served satisfactorily, except

that such a member may not be so ordered to active duty in

a grade above major general or rear admiral.

‘‘(2) A retired member ordered to active duty in a grade that

is higher than the member’s retired grade pursuant to subsection

(a) shall be treated for purposes of section 690 of this title as

if the member was promoted to that higher grade while on that

tour of active duty.

‘‘(3) If, upon being released from that tour of active duty,

such a retired member has served on active duty satisfactorily,

as determined by the Secretary concerned, for not less than a

total of 36 months in a grade that is a higher grade than the

member’s retired grade, the member is entitled to placement on

the retired list in that grade.

‘‘(d) GRADE UPON RELEASE FROM ACTIVE DUTY.—A member

ordered to active duty under section 688 of this title who, while

on active duty, is promoted to a grade that is higher than that

member’s retired grade is entitled, upon that member’s release

from that tour of active duty, to placement on the retired list

in the highest grade in which the member served on active duty

satisfactorily, as determined by the Secretary of the military department concerned, for not less than six months.

‘‘§ 690. Retired members ordered to active duty: limitation

on number

‘‘(a) GENERAL AND FLAG OFFICERS.—Not more than 15 retired

general officers of the Army, Air Force, or Marine Corps, and

not more than 15 retired flag officers of the Navy, may be on

active duty at any one time. For the purposes of this subsection

a retired officer ordered to active duty for a period of 60 days

or less is not counted.

‘‘(b) LIMITATION BY SERVICE.—(1) Not more than 25 officers

of any one armed force may be serving on active duty concurrently
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2517

pursuant to orders to active duty issued under section 688 of this

title.

‘‘(2) In the administration of paragraph (1), the following officers

shall not be counted:

‘‘(A) A chaplain who is assigned to duty as a chaplain

for the period of active duty to which ordered.

‘‘(B) A health care professional (as characterized by the

Secretary concerned) who is assigned to duty as a health care

professional for the period of the active duty to which ordered.

‘‘(C) Any officer assigned to duty with the American Battle

Monuments Commission for the period of active duty to which

ordered.

‘‘(c) WAIVER FOR PERIODS OF WAR OR NATIONAL EMERGENCY.—

Subsection (a) does not apply in time of war or of national emergency declared by Congress or the President after November 30,

1980. Subsection (b) does not apply in time of war or of national

emergency declared by Congress or the President.’’.

(b) EFFECTIVE DATE.—The amendments made by this section

shall take effect on September 30, 1997.

(c) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by striking out the item relating

to section 688 and inserting in lieu thereof the following:

‘‘688. Retired members: authority to order to active duty; duties.

‘‘689. Retired members: grade in which ordered to active duty and upon release

from active duty. ‘‘690. Retired members ordered to active duty: limitation on number.’’.

(d) CROSS REFERENCE AMENDMENT.—Section 6151(a) of title

10, United States Code, is amended by striking out ‘‘688’’ and

inserting in lieu thereof ‘‘689’’.

SEC. 522. CLARIFICATION OF DEFINITION OF ACTIVE STATUS.

Section 101(d)(4) of title 10, United States Code, is amended

by striking out ‘‘a reserve commissioned officer, other than a

commissioned warrant officer,’’ and inserting in lieu thereof the

following: ‘‘a member of a reserve component’’.

SEC. 523. LIMITATION OF REQUIREMENT FOR PHYSICAL EXAMINATIONS OF MEMBERS OF NATIONAL GUARD CALLED INTO

FEDERAL SERVICE.

Section 12408(a) of title 10, United States Code, is amended

by inserting ‘‘under section 12301(a), 12302, or 12304 of this title’’

after ‘‘called into Federal service’’.

Subtitle D—Reserve Component

Retirement

SEC. 531. INCREASE IN ANNUAL LIMIT ON DAYS OF INACTIVE DUTY

TRAINING CREDITABLE TOWARD RESERVE RETIREMENT.

(a) INCREASE IN LIMIT.—Section 12733(3) is amended by

inserting before the period at the end the following: ‘‘of service

before the year of service in which the date of the enactment

of the National Defense Authorization Act for Fiscal Year 1997

occurs and not more than 75 days in any subsequent year of

service’’.

(b) TRACKING SYSTEM FOR AWARD OF RETIREMENT POINTS.—

To better enable the Secretary of Defense and Congress to assess

10 USC 12732

note.

10 USC 688 note.
110 STAT. 2518 PUBLIC LAW 104–201—SEPT. 23, 1996

the cost and the effect on readiness of the amendment made by

subsection (a) and of other potential changes to the Reserve retirement system under chapter 1223 of title 10, United States Code,

the Secretary of Defense shall require the Secretary of each military

department to implement a system to monitor the award of retirement points for purposes of that chapter by categories in accordance

with the recommendation set forth in the August 1988 report of

the Sixth Quadrennial Review of Military Compensation.

(c) RECOMMENDATIONS TO CONGRESS.—The Secretary shall

submit to Congress, not later than one year after the date of

the enactment of this Act, the recommendations of the Secretary

with regard to the adoption of the following Reserve retirement

initiatives recommended in the August 1988 report of the Sixth

Quadrennial Review of Military Compensation:

(1) Elimination of membership points under subparagraph

(C) of section 12732(a)(2) of title 10, United States Code, in

conjunction with a decrease from 50 to 35 in the number

of points required for a satisfactory year under that section.

(2) Limitation to 60 in any year on the number of points

that may be credited under subparagraph (B) of section

12732(a)(2) of such title at two points per day.

(3) Limitation to 360 in any year on the total

number of retirement points countable for purposes of section

12733 of such title.

SEC. 532. RETIREMENT OF RESERVE ENLISTED MEMBERS WHO

QUALIFY FOR ACTIVE DUTY RETIREMENT AFTER ADMINISTRATIVE REDUCTION IN ENLISTED GRADE.

(a) ARMY.—(1) Chapter 369 of title 10, United States Code,

is amended by inserting after section 3962 the following new section:

‘‘§ 3963. Highest grade held satisfactorily: Reserve enlisted

members reduced in grade not as a result of the

member’s misconduct

‘‘(a) A Reserve enlisted member of the Army described in subsection (b) who is retired under section 3914 of this title shall

be retired in the highest enlisted grade in which the member

served on active duty satisfactorily (or, in the case of a member

of the National Guard, in which the member served on full-time

National Guard duty satisfactorily), as determined by the Secretary

of the Army.

‘‘(b) This section applies to a Reserve enlisted member who—

‘‘(1) at the time of retirement is serving on active duty

(or, in the case of a member of the National Guard, on fulltime National Guard duty) in a grade lower than the highest

enlisted grade held by the member while on active duty (or

full-time National Guard duty); and

‘‘(2) was previously administratively reduced in grade not

as a result of the member’s own misconduct, as determined

by the Secretary of the Army.

‘‘(c) This section applies with respect to Reserve enlisted

members who are retired under section 3914 of this title after

September 30, 1996.’’.

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

is amended by inserting after the item relating to section 3962

the following new item:

Applicability.

Applicability.

10 USC 12732

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2519

‘‘3963. Highest grade held satisfactorily: Reserve enlisted members reduced in grade

not as a result of the member’s misconduct.’’.

(b) NAVY AND MARINE CORPS.—(1) Chapter 571 of title 10,

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

new section:

‘‘§ 6336. Highest grade held satisfactorily: Reserve enlisted

members reduced in grade not as a result of the

member’s misconduct

‘‘(a) A member of the Naval Reserve or Marine Corps Reserve

described in subsection (b) who is transferred to the Fleet Reserve

or the Fleet Marine Corps Reserve under section 6330 of this

title shall be transferred in the highest enlisted grade in which

the member served on active duty satisfactorily, as determined

by the Secretary of the Navy.

‘‘(b) This section applies to a Reserve enlisted member who—

‘‘(1) at the time of transfer to the Fleet Reserve or Fleet

Marine Corps Reserve is serving on active duty in a grade

lower than the highest enlisted grade held by the member

while on active duty; and

‘‘(2) was previously administratively reduced in grade not

as a result of the member’s own misconduct, as determined

by the Secretary of the Navy.

‘‘(c) This section applies with respect to enlisted members of

the Naval Reserve and Marine Corps Reserve who are transferred

to the Fleet Reserve or the Fleet Marine Corps Reserve after

September 30, 1996.’’.

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

is amended by adding at the end the following new item:

‘‘6336. Highest grade held satisfactorily: Reserve enlisted members reduced in grade

not as a result of the member’s misconduct.’’.

(c) AIR FORCE.—(1) Chapter 869 of title 10, United States

Code, is amended by inserting after section 8962 the following

new section:

‘‘§ 8963. Highest grade held satisfactorily: Reserve enlisted

members reduced in grade not as a result of the

member’s misconduct

‘‘(a) A Reserve enlisted member of the Air Force described

in subsection (b) who is retired under section 8914 of this title

shall be retired in the highest enlisted grade in which the member

served on active duty satisfactorily (or, in the case of a member

of the National Guard, in which the member served on full-time

National Guard duty satisfactorily), as determined by the Secretary

of the Air Force.

‘‘(b) This section applies to a Reserve enlisted member who—

‘‘(1) at the time of retirement is serving on active duty

(or, in the case of a member of the National Guard, on fulltime National Guard duty) in a grade lower than the highest

enlisted grade held by the member while on active duty (or

full-time National Guard duty); and

‘‘(2) was previously administratively reduced in grade not

as a result of the member’s own misconduct, as determined

by the Secretary of the Air Force.

‘‘(c) This section applies with respect to Reserve enlisted members who are retired under section 8914 of this title after September

30, 1996.’’.

Applicability.

Applicability.

Applicability.

Applicability.
110 STAT. 2520 PUBLIC LAW 104–201—SEPT. 23, 1996

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

is amended by inserting after the item relating to section 8962

the following new item:

‘‘8963. Highest grade held satisfactorily: Reserve enlisted members reduced in grade

not as a result of the member’s misconduct.’’.

(d) COMPUTATION OF RETIRED AND RETAINER PAY BASED UPON

RETIRED GRADE.—(1) Section 3991 of such title is amended by

adding at the end the following new subsection:

‘‘(c) SPECIAL RULE FOR RETIRED RESERVE ENLISTED MEMBERS

COVERED BY SECTION 3963.—In the case of a Reserve enlisted

member retired under section 3914 of this title whose retired grade

is determined under section 3963 of this title and who first became

a member of a uniformed service before September 8, 1980, the

retired pay base of the member (notwithstanding section 1406(a)(1)

of this title) is the amount of the monthly basic pay of the member’s

retired grade (determined based upon the rates of basic pay

applicable on the date of the member’s retirement), and that amount

shall be used for the purposes of subsection (a)(1)(A) rather than

the amount computed under section 1406(c) of this title.’’.

(2) Section 6333 of such title is amended by adding at the

end the following new subsection:

‘‘(c) In the case of a Reserve enlisted member whose grade

upon transfer to the Fleet Reserve or Fleet Marine Corps Reserve

is determined under section 6336 of this title and who first became

a member of a uniformed service before September 8, 1980, the

retainer pay base of the member (notwithstanding section 1406(a)(1)

of this title) is the amount of the monthly basic pay of the grade

in which the member is so transferred (determined based upon

the rates of basic pay applicable on the date of the member’s

transfer), and that amount shall be used for the purposes of the

table in subsection (a) rather than the amount computed under

section 1406(d) of this title.’’.

(3) Section 8991 of such title is amended by adding at the

end the following new subsection:

‘‘(c) SPECIAL RULE FOR RETIRED RESERVE ENLISTED MEMBERS

COVERED BY SECTION 8963.—In the case of a Reserve enlisted

member retired under section 8914 of this title whose retired grade

is determined under section 8963 of this title and who first became

a member of a uniformed service before September 8, 1980, the

retired pay base of the member (notwithstanding section 1406(a)(1)

of this title) is the amount of the monthly basic pay of the member’s

retired grade (determined based upon the rates of basic pay

applicable on the date of the member’s retirement), and that amount

shall be used for the purposes of subsection (a)(1)(A) rather than

the amount computed under section 1406(e) of this title.’’.

SEC. 533. AUTHORITY FOR A RESERVE ON ACTIVE DUTY TO WAIVE

RETIREMENT SANCTUARY.

Section 12686 of title 10, United States Code, is amended—

(1) by inserting ‘‘(a) LIMITATION.—’’ before ‘‘Under regulations’’; and

(2) by adding at the end the following:

‘‘(b) WAIVER.—With respect to a member of a reserve component

who is to be ordered to active duty (other than for training) under

section 12301 of this title pursuant to an order to active duty

that specifies a period of less than 180 days and who (but for

this subsection) would be covered by subsection (a), the Secretary
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2521

concerned may require, as a condition of such order to active duty,

that the member waive the applicability of subsection (a) to the

member for the period of active duty covered by that order. In

carrying out this subsection, the Secretary concerned may require

that a waiver under the preceding sentence be executed before

the period of active duty begins.’’.

SEC. 534. ELIGIBILITY OF RESERVES FOR DISABILITY RETIREMENT.

Paragraph (2) of section 1204 of title 10, United States Code,

is amended to read as follows:

‘‘(2) the disability is the proximate result of, or was incurred

in line of duty after the date of the enactment of this Act

as a result of—

‘‘(A) performing active duty or inactive-duty training;

‘‘(B) traveling directly to or from the place at which

such duty is performed; or

‘‘(C) an injury, illness, or disease incurred or aggravated 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 of the member’s residence;’’.

Subtitle E—Other Reserve Component

Matters

SEC. 541. TRAINING FOR RESERVES ON ACTIVE DUTY IN SUPPORT

OF THE RESERVES.

Subsection (b) of section 12310 of title 10, United States Code,

is amended to read as follows:

‘‘(b) A Reserve on active duty as described in subsection (a)

may be provided training consistent with training provided to other

members on active duty, as the Secretary concerned sees fit.’’.

SEC. 542. ELIGIBILITY FOR ENROLLMENT IN READY RESERVE

MOBILIZATION INCOME INSURANCE PROGRAM.

Section 12524 of title 10, United States Code, is amended

by adding at the end the following new subsection:

‘‘(g) MEMBERS OF INDIVIDUAL READY RESERVE.—Notwithstanding any other provision of this section, and pursuant to regulations

issued by the Secretary, a member of the Individual Ready Reserve

who becomes a member of the Selected Reserve shall not be denied

eligibility to purchase insurance under this chapter upon becoming

a member of the Selected Reserve unless the member previously

declined to enroll in the program of insurance under this chapter

while a member of the Selected Reserve.’’.

SEC. 543. RESERVE CREDIT FOR PARTICIPATION IN HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE

PROGRAM.

(a) CREDIT AUTHORIZED.—Section 2126 of title 10, United States

Code, is amended—

(1) by striking out ‘‘Service performed’’ and inserting in

lieu thereof ‘‘(a) SERVICE NOT CREDITABLE.—Except as provided

in subsection (b), service performed’’; and

(2) by adding at the end the following:

Regulations.
110 STAT. 2522 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(b) SERVICE CREDITABLE FOR CERTAIN PURPOSES.—(1) The Secretary concerned may authorize service performed by a member

of the program in pursuit of a course of study under this subchapter

to be counted in accordance with this subsection if the member—

‘‘(A) completes the course of study;

‘‘(B) completes the active duty obligation imposed under

section 2123(a) of this title; and

‘‘(C) possesses a specialty designated by the Secretary concerned as critically needed in wartime.

‘‘(2) Service credited under paragraph (1) counts only for the

following purposes:

‘‘(A) Award of retirement points for computation of

years of service under section 12732 of this title and for computation of retired pay under section 12733 of this title.

‘‘(B) Computation of years of service creditable under section 205 of title 37.

‘‘(3) For purposes of paragraph (2)(A), a member may be credited

in accordance with paragraph (1) with not more than 50 points

for each year of participation in a course of study that the member

satisfactorily completes as a member of the program.

‘‘(4) Service may not be counted under paragraph (1) for more

than four years of participation in a course of study as a member

of the program.

‘‘(5) A member is not entitled to any retroactive award of,

or increase in, pay or allowances under title 37 by reason of an

award of service credit under paragraph (1).’’.

(b) AWARD OF RETIREMENT POINTS.—(1) Section 12732(a)(2)

of such title is amended—

(A) by inserting after clause (C) the following:

‘‘(D) Points credited for the year under section 2126(b)

of this title.’’; and

(B) in the matter following clause (D), as inserted by paragraph (1), by striking out ‘‘and (C)’’ and inserting in lieu thereof

‘‘(C), and (D)’’.

(2) Section 12733(3) of such title is amended by striking out

‘‘or (C)’’ and inserting in lieu thereof ‘‘(C), or (D)’’.

SEC. 544. AMENDMENTS TO RESERVE OFFICER PERSONNEL MANAGEMENT ACT PROVISIONS.

(a) SERVICE REQUIREMENT FOR RETIREMENT IN HIGHEST GRADE

HELD.—Section 1370(d) of title 10, United States Code, is

amended—

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

(2) in paragraph (2)(A), by striking out ‘‘(A)’’;

(3) by redesignating paragraph (2)(B) as paragraph

(3); and

(4) in paragraph (3), as so redesignated—

(A) by designating the first sentence as subparagraph (A);

(B) by designating the second sentence as subparagraph (B);

(C) in subparagraph (B), as so redesignated, by striking

out ‘‘the preceding sentence’’ and inserting in lieu thereof

‘‘subparagraph (A)’’; and

(D) by adding at the end the following:

‘‘(C) If a person covered by subparagraph (A) has completed

at least six months of satisfactory service in grade, the person
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2523

was serving in that grade while serving in a position of adjutant

general required under section 314 of title 32 or while serving

in a position of assistant adjutant general subordinate to such

a position of adjutant general, and the person has failed to complete

three years of service in that grade solely because the person’s

appointment to such position has been terminated or vacated as

described in section 324(b) of such title, then such person may

be credited with satisfactory service in that grade, notwithstanding

the failure to complete three years of service in that grade.

‘‘(D) To the extent authorized by the Secretary of the military

department concerned, a person who, after having been recommended for promotion in a report of a promotion board but

before being promoted to the recommended grade, served in a

position for which that grade is the minimum authorized grade

may be credited for purposes of subparagraph (A) as having served

in that grade for the period for which the person served in that

position while in the next lower grade. The period credited may

not include any period before the date on which the Senate provides

advice and consent for the appointment of that person in the recommended grade.

‘‘(E) To the extent authorized by the Secretary of the military

department concerned, a person who, after having been extended

temporary Federal recognition as a reserve officer of the Army

National Guard in a particular grade under section 308 of title

32 or temporary Federal recognition as a reserve officer of the

Air National Guard in a particular grade under such section, served

in a position for which that grade is the minimum authorized

grade may be credited for purposes of subparagraph (A) as having

served in that grade for the period for which the person served

in that position while extended the temporary Federal recognition,

but only if the person was subsequently extended permanent Federal recognition as a reserve officer in that grade and also served

in that position after being extended the permanent Federal recognition.’’.

(b) EXCEPTION TO REQUIREMENT FOR RETENTION OF RESERVE

OFFICERS UNTIL COMPLETION OF REQUIRED SERVICE.—Section

12645(b)(2) of such title is amended by inserting ‘‘or a reserve

active-status list’’ after ‘‘active-duty list’’.

(c) TECHNICAL CORRECTION.—Section 14314(b)(2)(B) of such

title is amended by striking out ‘‘of the Air Force’’.

SEC. 545. REPORT ON NUMBER OF ADVISERS IN ACTIVE COMPONENT

SUPPORT OF RESERVES PILOT PROGRAM.

(a) REPORT ON NUMBER OF ACTIVE COMPONENT ADVISERS.—

Not later than six months 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

the Secretary’s determination as to the appropriate number of active

component personnel to be assigned to serve as advisers to reserve

components under section 414 of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note).

If the Secretary’s determination is that such number should be

a number other than the required minimum number in effect under

subsection (c) of such section, the Secretary shall include in the

report an explanation providing the Secretary’s justification for

the number recommended.
110 STAT. 2524 PUBLIC LAW 104–201—SEPT. 23, 1996

(b) TECHNICAL AMENDMENT.—Section 414(a) of the National

Defense Authorization Act for Fiscal Years 1992 and 1993 (10

U.S.C. 12001 note) is amended by striking out ‘‘During fiscal years

1992 and 1993, the Secretary of the Army shall institute’’ and

inserting in lieu thereof ‘‘The Secretary of the Army shall carry

out’’.

SEC. 546. SENSE OF CONGRESS AND REPORT REGARDING REEMPLOYMENT RIGHTS FOR MOBILIZED RESERVISTS EMPLOYED IN

FOREIGN COUNTRIES.

(a) SENSE OF CONGRESS.—Congress is concerned about the lack

of reemployment rights afforded Reserve component members who

reside in foreign countries and either work for United States companies that maintain offices or operations in foreign countries or

work for foreign employers. Being outside the jurisdiction of the

United States, these employers are not subject to the provisions

of chapter 43 of title 38, United States Code, known as the Uniformed Services Employment and Reemployment Rights Act

(USERRA). The purpose of that Act is to provide statutory employment protections that include reinstatement, seniority, status, and

rate of pay coverage for Reservists who are ordered to active duty

for a specified period of time, including involuntary active duty

in support of an operational contingency. While most Reserve

members are afforded the protections of that Act (which covers

reemployment rights in their civilian jobs upon completion of military service), approximately 2,000 members of the Selected Reserve

reside outside the United States and its territories and, not being

guaranteed the job protection envisioned by the USERRA, are potentially subject to reemployment problems after release from active

duty. This situation poses a continuing personnel management challenge for the reserve components.

(b) RECOGNITION OF PROBLEM.—Congress, while recognizing

that foreign governments and companies located abroad, not being

within the jurisdiction of the United States, cannot be required

to comply with the provisions of the Uniformed Services Employment and Reemployment Rights Act, also recognizes that there

is a need to provide assistance to Reservists in the situation

described in subsection (a), both in the near term and the long

term.

(c) REPORT REQUIREMENT.—Not later than April 1, 1997, 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 recommended actions to help alleviate reemployment problems for

Reservists who are employed outside the United States and its

territories by United States companies that maintain offices or

operations in foreign countries or by foreign employers. The report

shall include recommendations on the assistance and support that

may be required by other organizations of the Government, including the Defense Attache ́ Offices, the Department of Labor, and

the Department of State. The report shall be prepared in consultation with the Secretary of State and the Secretary of Labor.

SEC. 547. PAYMENT OF PREMIUMS UNDER MOBILIZATION INCOME

INSURANCE PROGRAM.

Section 12527(a) of title 10, United States Code, is amended—

(1) in paragraph (1), by inserting ‘‘of the Selected Reserve’’

after ‘‘a member’’; and
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2525

(2) by striking out paragraph (2) and inserting in lieu

thereof the following:

‘‘(2) The Secretary of Defense, in consultation with the Secretary

of Transportation, shall prescribe regulations which specify the

procedures for payment of premiums by members of the Individual

Ready Reserve and other members who do not receive pay on

a monthly basis.’’.

Subtitle F—Officer Education Programs

SEC. 551. OVERSIGHT AND MANAGEMENT OF SENIOR RESERVE OFFICERS’ TRAINING CORPS PROGRAM.

(a) ENROLLMENT PRIORITY TO BE CONSISTENT WITH PURPOSE

OF PROGRAM.—(1) Section 2103 of title 10, United States Code,

is amended by adding at the end the following new subsection:

‘‘(e) An educational institution at which a unit of the program

has been established shall give priority for enrollment in the program to students who are eligible for advanced training under

section 2104 of this title.’’.

(2) Section 2109 of such title is amended by adding at the

end the following new subsection:

‘‘(c)(1) A person who is not qualified for, and (as determined

by the Secretary concerned) will not be able to become qualified

for, advanced training by reason of one or more of the requirements

prescribed in paragraphs (1) through (3) of section 2104(b) of this

title shall not be permitted to participate in—

‘‘(A) field training or a practice cruise under section

2106(b)(6) of this title; or

‘‘(B) practical military training under subsection (a).

‘‘(2) The Secretary of the military department concerned may

waive the limitation in paragraph (1) under procedures prescribed

by the Secretary. Such procedures shall ensure uniform application

of limitations and restrictions without regard to the reason for

disqualification for advanced training.’’.

(b) WEAR OF THE MILITARY UNIFORM.—Section 772(h) of such

title is amended by inserting before the period at the end the

following: ‘‘if the wear of such uniform is specifically authorized

under regulations prescribed by the Secretary of the military department concerned’’.

SEC. 552. PROHIBITION ON REORGANIZATION OF ARMY ROTC CADET

COMMAND OR TERMINATION OF SENIOR ROTC UNITS

PENDING REPORT ON ROTC.

(a) PROHIBITION.—(1) The Secretary of the Army may not

reorganize or restructure the Reserve Officers Training Corps Cadet

Command, and may not terminate any Senior Reserve Officer Training Corps unit identified in the document referred to in paragraph

(2), until 180 days after the date on which the Secretary submits

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

described in subsection (b).

(2) The document referred to in paragraph (1) is the Department

of Defense document dated May 20, 1996, entitled ‘‘Information

for Members of Congress concerning Senior Reserve Officer Training

Corps (ROTC) Unit Closures’’.

Reports.

Regulations.
110 STAT. 2526 PUBLIC LAW 104–201—SEPT. 23, 1996

(b) REPORT CONTENTS.—The report referred to in subsection

(a) is a report by the Secretary of the Army in which the Secretary—

(1) describes the selection process used to identify the

Reserve Officer Training Corps units of the Army to be terminated;

(2) lists the criteria used by the Army to select Reserve

Officer Training Corps units for termination;

(3) sets forth the specific ranking of each unit of the Reserve

Officer Training Corps of the Army to be terminated as against

all other such units;

(4) sets forth the authorized and actual cadre staffing of

each such unit for each fiscal year of the 10-fiscal year period

ending with fiscal year 1996;

(5) sets forth the production goals and performance evaluations of each such unit for each fiscal year of the 10-fiscal

year period ending with fiscal year 1996;

(6) describes how cadets currently enrolled in the units

referred to in paragraph (5) will be accommodated after the

closure of such units;

(7) describes the incentives to enhance the Reserve Officer

Training Corps program that are provided by each of the colleges on the closure list;

(8) includes the projected officer accession plan by source

of commission for the active-duty Army, the Army Reserve,

and the Army National Guard; and

(9) describes whether the closure of any ROTC unit will

adversely affect the recruitment of minority officer candidates.

SEC. 553. PILOT PROGRAM TO TEST EXPANSION OF ROTC PROGRAM

TO INCLUDE GRADUATE STUDENTS.

(a) TEST PROGRAM.—Section 2107(c) of title 10, United States

Code, is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and

(2) by adding at the end the following:

‘‘(2) The Secretary of Defense shall authorize the Secretaries

of the military departments to carry out a test program to determine

the desirability of enabling graduate students to participate in

the financial assistance program under this section. As part of

such test program, the Secretary of a military department may

provide financial assistance, as described in paragraph (1), to a

student enrolled in an advanced education program beyond the

baccalaureate degree level if the student also is a cadet or midshipman in an advanced training program. Not more than 15 percent of the total number of scholarships awarded under this section

in any year may be awarded under the test program. No scholarship

may be awarded under the test program after September 30, 1999.’’.

(b) AUTHORITY TO ENROLL IN ADVANCED TRAINING PROGRAM.—

Paragraph (3) of section 2101 of title 10, United States Code,

is amended by inserting ‘‘students enrolled in an advanced education program beyond the baccalaureate degree level or to’’ after

‘instruction offered in the Senior Reserve Officers’ Training Corps

to’’.

(c) REPORT TO CONGRESS.—Not later than December 31, 1998,

the Secretary of Defense shall submit to Congress a report on

the experience to that date under the test program authorized

under the amendment made by subsection (a)(2). The report shall

include the Secretary’s assessment of the effect of the test program

10 USC 2107

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2527

on the Senior ROTC program and the Secretary’s recommendation

as to whether the authority under the test program should be

made permanent.

SEC. 554. DEMONSTRATION PROJECT FOR INSTRUCTION AND SUPPORT OF ARMY ROTC UNITS BY MEMBERS OF THE ARMY

RESERVE AND NATIONAL GUARD.

(a) DEMONSTRATION PROJECT REQUIRED.—The Secretary of the

Army shall carry out a demonstration project in order to assess

the feasibility and advisability of providing instruction and similar

support to units of the Senior Reserve Officers’ Training Corps

of the Army through members of the Army Reserve (including

members of the Individual Ready Reserve) and members of the

Army National Guard.

(b) PROJECT REQUIREMENTS.—(1) The Secretary shall carry out

the demonstration project at at least one institution of higher

education.

(2) In order to enhance the value of the project, the Secretary

may take actions to ensure that members of the Army Reserve

and the Army National Guard provide instruction and support

under the project in a variety of innovative ways.

(c) INAPPLICABILITY OF LIMITATION ON RESERVES IN SUPPORT

OF ROTC.—The assignment of a member of the Army Reserve

or the Army National Guard to provide instruction or support

under the demonstration project shall not be treated as an assignment of the member to duty with a unit of a Reserve Officer

Training Corps program for purposes of section 12321 of title 10,

United States Code.

(d) REPORTS TO CONGRESS.—Not later than February 1 in each

of 1998 and 1999, the Secretary shall submit to Congress a report

assessing the activities under the demonstration project during

the preceding year. The report submitted in 1999 shall include

the Secretary’s recommendation as to the advisability of continuing

or expanding the authority for the project.

(e) TERMINATION.—The authority of the Secretary to carry out

the demonstration project shall expire three years after the date

of the enactment of this Act.

SEC. 555. EXTENSION OF MAXIMUM AGE FOR APPOINTMENT AS A

CADET OR MIDSHIPMAN IN THE SENIOR RESERVE OFFICERS’ TRAINING CORPS AND THE SERVICE ACADEMIES.

(a) SENIOR RESERVE OFFICERS’ TRAINING CORPS.—Sections

2107(a) and 2107a(a) of title 10, United States Code, are amended—

(1) by striking out ‘‘25 years of age’’ and inserting in lieu

thereof ‘‘27 years of age’’; and

(2) by striking out ‘‘29 years of age’’ and inserting in lieu

thereof ‘‘30 years of age’’.

(b) UNITED STATES MILITARY ACADEMY.—Section 4346(a) of

such title is amended by striking out ‘‘twenty-second birthday’’

and inserting in lieu thereof ‘‘twenty-third birthday’’.

(c) UNITED STATES NAVAL ACADEMY.—Section 6958(a)(1) of such

title is amended by striking out ‘‘twenty-second birthday’’ and

inserting in lieu thereof ‘‘twenty-third birthday’’.

(d) UNITED STATES AIR FORCE ACADEMY.—Section 9346(a) of

such title is amended by striking out ‘‘twenty-second birthday’’

and inserting in lieu thereof ‘‘twenty-third birthday’’.

10 USC 2111

note.
110 STAT. 2528 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 556. EXPANSION OF ELIGIBILITY FOR EDUCATION BENEFITS TO

INCLUDE CERTAIN RESERVE OFFICERS’ TRAINING CORPS

(ROTC) PARTICIPANTS.

(a) ACTIVE DUTY SERVICE.—Section 3011(c) of title 38, United

States Code, is amended—

(1) by striking out ‘‘or upon completion of a program of

educational assistance under section 2107 of title 10’’ in paragraph (2); and

(2) by adding at the end the following:

‘‘(3) An individual who after December 31, 1976, receives a

commission as an officer in the Armed Forces upon completion

of a program of educational assistance under section 2107 of title

10 is not eligible for educational assistance under this section

if the individual enters on active duty—

‘‘(A) before October 1, 1996; or

‘‘(B) after September 30, 1996, and while participating in

such program received more than $2,000 for each year of such

participation.’’.

(b) SELECTED RESERVE.—Section 3012(d) of title 38, United

States Code, is amended—

(1) by striking out ‘‘or upon completion of a program of

educational assistance under section 2107 of title 10’’ in paragraph (2); and

(2) by adding at the end the following:

‘‘(3) An individual who after December 31, 1976, receives a

commission as an officer in the Armed Forces upon completion

of a program of educational assistance under section 2107 of title

10 is not eligible for educational assistance under this section

if the individual enters on active duty—

‘‘(A) before October 1, 1996; or

‘‘(B) after September 30, 1996, and while participating in

such program received more than $2,000 for each year of such

participation.’’.

SEC. 557. COMPTROLLER GENERAL REPORT ON COST AND POLICY

IMPLICATIONS OF PERMITTING UP TO FIVE PERCENT OF

SERVICE ACADEMY GRADUATES TO BE ASSIGNED

DIRECTLY TO RESERVE DUTY UPON GRADUATION.

(a) REPORT REQUIRED.—The Comptroller General of the United

States shall submit to the Committee on Armed Services of the

Senate and the Committee on National Security of the House of

Representatives a report providing an analysis of the cost implications, and the policy implications, of permitting up to five percent

of each graduating class of each of the service academies to be

placed, upon graduation and commissioning, in an active status

in the appropriate reserve component (without a minimum period

of obligated active duty service), with a corresponding increase

in the number of ROTC graduates each year who are permitted

to serve on active duty upon commissioning.

(b) INFORMATION ON CURRENT ACADEMY GRADUATES IN

RESERVE COMPONENTS.—The Comptroller General shall include in

the report information (shown in the aggregate and separately

for each of the Armed Forces and for graduates of each service

academy) on—

(1) the number of academy graduates who at the time

of the report are serving in an active status in a reserve

component; and
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2529

(2) within the number under paragraph (1), the number

for each reserve component and, of those, the number within

each reserve component who are on active duty under section

12301(d) of title 10, United States Code, for the purpose of

organizing, administering, recruiting, instructing, or training

the reserve components.

(c) SUBMISSION OF REPORT.—The report shall be submitted

not later than six months after the date of the enactment of this

Act.

(d) SERVICE ACADEMIES.—For purposes of this section, the term

‘‘service academies’’ means—

(1) the United States Military Academy;

(2) the United States Naval Academy; and

(3) the United States Air Force Academy.

Subtitle G—Decorations and Awards

SEC. 561. AUTHORITY FOR AWARD OF MEDAL OF HONOR TO CERTAIN

AFRICAN AMERICAN SOLDIERS WHO SERVED DURING

WORLD WAR II.

(a) INAPPLICABILITY OF TIME LIMITATIONS.—Notwithstanding

the time limitations in section 3744(b) of title 10, United States

Code, or any other time limitation, the President may award the

Medal of Honor to the persons specified in subsection (b), each

of whom has been found by the Secretary of the Army to have

distinguished himself conspicuously by gallantry and intrepidity

at the risk of his life above and beyond the call of duty while

serving in the United States Army during World War II.

(b) PERSONS ELIGIBLE TO RECEIVE THE MEDAL OF HONOR.—

The persons referred to in subsection (a) are the following:

(1) Vernon J. Baker, who served as a first lieutenant in

the 370th Infantry Regiment, 92nd Infantry Division.

(2) Edward A. Carter, who served as a staff sergeant in

the 56th Armored Infantry Battalion, Twelfth Armored

Division.

(3) John R. Fox, who served as a first lieutenant in the

366th Infantry Regiment, 92nd Infantry Division.

(4) Willy F. James, Jr., who served as a private first class

in the 413th Infantry Regiment, 104th Infantry Division.

(5) Ruben Rivers, who served as a staff sergeant in the

761st Tank Battalion.

(6) Charles L. Thomas, who served as a first lieutenant

in the 614th Tank Destroyer Battalion.

(7) George Watson, who served as a private in the 29th

Quartermaster Regiment.

(c) POSTHUMOUS AWARD.—The Medal of Honor may be awarded

under this section posthumously, as provided in section 3752 of

title 10, United States Code.

(d) PRIOR AWARD.—The Medal of Honor may be awarded under

this section for service for which a Distinguished-Service Cross,

or other award, has been awarded.

SEC. 562. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN

DECORATIONS TO SPECIFIED PERSONS.

(a) WAIVER OF TIME LIMITATION.—Any limitation established

by law or policy for the time within which a recommendation

George Watson.

Charles L.

Thomas.

Ruben Rivers.

Willy F. James,

Jr.

John R. Fox.

Edward A.

Carter.

Vernon J. Baker.
110 STAT. 2530 PUBLIC LAW 104–201—SEPT. 23, 1996

for the award of a military decoration or award must be submitted

shall not apply in the case of awards of decorations as described

in subsection (b), the award of each such decoration having been

determined by the Secretary of the Navy to be warranted in accordance with section 1130 of title 10, United States Code.

(b) DISTINGUISHED FLYING CROSS.—Subsection (a) applies to

awards of the Distinguished Flying Cross for service during World

War II as follows:

(1) FIRST AWARD.—First award, for completion of at least

20 qualifying combat missions, to the following members and

former members of the Armed Forces:

Vernard V. Aiken of Wilmington, Vermont.

Ira V. Babcock of Dothan, Georgia.

George S. Barlow of Grafton, Virginia.

Earl A. Bratton of Bodega Bay, California.

Travis C. Cork of Leesburg, Florida.

Herman C. Edwards of Johns Island, South Carolina.

Norman J. Ehr of Kiel, Wisconsin.

James M. Fitzgerald of Anchorage, Alaska.

Raymond C. Gordon of Sherborn, Massachusetts.

Paul L. Hitchcock of Raleigh, North Carolina.

Harold H. Hottle of Hillsboro, Ohio.

Samuel M. Keith of Anderson, South Carolina.

Stanley J. Ksiadz of Cheektowaga, New York.

Otis Lancaster of Wyoming, Michigan.

Robert W. Lorette of Wilton, New Hampshire.

John B. McCabe of Biglerville, Pennsylvania.

James P. Merriman of Midland, Texas.

The late Michael L. Michalak, formerly of Akron,

New York.

The late Edward J. Naparkowsky, formerly of Hartford,

Connecticut.

Pete G. Nicora of Warren, Ohio.

Stanley J. Orlowski of Jackson, Michigan.

Raymond A. Peischl of Allentown, Pennsylvania.

A. Jerome Pfeiffer of Racine, Wisconsin.

Duane L. Rhodes of Earp, California.

Frank V. Roach of Bloomfield, New Jersey.

Arnold V. Rosekrans of Horseheads, New York.

Joseph E. Seaman, Jr. of Bordentown, New Jersey.

Richard F. Shumaker of Hilliard, Ohio.

Luther E. Thomas of Panama City, Florida.

Merton S. Ward of South Hamilton, Massachusetts.

Simon L. Webb of Magnolia, Mississippi.

Jerry W. Webster of Leander, Texas.

(2) SECOND AWARD.—Second award, for completion of at

least 40 qualifying combat missions, to the following members

and former members of the Armed Forces:

Arthur C. Adair of Grants Pass, Oregon.

Robert B. Carnes of West Yarmouth, Massachusetts.

Daniel K. Connors of Hampton, New Hampshire.

Glen E. Danielson of Whittier, California.

Ralph J. Deceuster of Dover, Ohio.

Albert P. Emsley of Bothell, Washington.

Urbain J. Fournier of Houma, Louisiana.

Prescott C. Jernegan of Hemet, California.

Stephen K. Johnson of Englewood, Florida.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2531

Warren E. Johnson of Vista, California.

Elbert J. Kimble of San Francisco, California.

George W. Knauff of Monument, Colorado.

John W. Lincoln of Rockland, Massachusetts.

Alan D. Marker of Sonoma, California.

Joseph J. Oliver of White Haven, Pennsylvania.

Shefield Phelps of Seattle, Washington.

John B. Tagliapiri of St. Helena, California.

Dewilles A.H.W. Schwartz of Watertown, South

Dakota.

Ray B. Stiltner of Centralia, Washington.

(3) THIRD AWARD.—Third award, for completion of at least

60 qualifying combat missions, to the following members and

former members of the Armed Forces:

Glenn Bowers of Dillsburg, Pennsylvania.

Arthur C. Casey of Irving, California.

Robert J. Larsen of Gulf Breeze, Florida.

David Mendoza of McAllen, Texas.

William A. Nickerson of Portland, Oregon.

Maurice F. Smith of Sequim, Washington.

(4) FOURTH AWARD.—Fourth award, for completion of at

least 80 qualifying combat missions, to the following members

and former members of the Armed Forces:

Robert Bair of Ontario, California.

Arvid L. Kretz of Santa Rosa, California.

George E. McClane of Cocoa Beach, Florida.

Orville R. Swick of Issaquah, Washington.

(5) FIFTH AWARD.—Fifth award, for completion of at least

100 qualifying combat missions, to the following members and

former members of the Armed Forces:

William A. Baldwin of San Clemente, California.

George Bobb of Blackwood, New Jersey.

John R. Conrad of Hot Springs, Arkansas.

Herbert R. Hetrick of Roaring Springs, Pennsylvania.

William L. Wells of Cordele, Georgia.

(6) SIXTH AWARD.—Sixth award, for completion of at least

120 qualifying combat missions, to Richard L. Murray of Dallas,

Texas.

SEC. 563. REPLACEMENT OF CERTAIN AMERICAN THEATER CAMPAIGN RIBBONS.

(a) REPLACEMENT RIBBONS.—The Secretary of the Army, pursuant to section 3751 of title 10, United States Code, may replace

any World War II decoration known as the American Theater

Campaign Ribbon that was awarded to a person listed in the

order described in subsection (b).

(b) RIBBONS PROPERLY AWARDED.—Any person listed in the

document titled ‘‘General Order Number 1’’, issued by the Third

Auxiliary Surgical Group, APO 647, United States Army, dated

February 1, 1943, shall be considered to have been properly awarded

the American Theater Campaign Ribbon for service during World

War II.
110 STAT. 2532 PUBLIC LAW 104–201—SEPT. 23, 1996

Subtitle H—Other Matters

SEC. 571. HATE CRIMES IN THE MILITARY.

(a) HUMAN RELATIONS TRAINING.—(1) The Secretary of Defense

shall ensure that the Secretary of each military department conducts ongoing programs for human relations training for all members of the Armed Forces under the jurisdiction of the Secretary.

Matters to be covered by such training include race relations, equal

opportunity, opposition to gender discrimination, and sensitivity

to ‘‘hate group’’ activity. Such training shall be provided during

basic training (or other initial military training) and on a regular

basis thereafter.

(2) The Secretary of Defense shall also ensure that unit

commanders are aware of their responsibilities in ensuring that

impermissible activity based upon discriminatory motives does not

occur in units under their command.

(b) INFORMATION TO BE PROVIDED TO PROSPECTIVE RECRUITS.— The Secretary of Defense shall ensure that each individual preparing to enter an officer accession program or to execute an original

enlistment agreement is provided information concerning the meaning of the oath of office or oath of enlistment for service in the

Armed Forces in terms of the equal protection and civil liberties

guarantees of the Constitution, and each such individual shall

be informed that if supporting those guarantees is not possible

personally for that individual, then that individual should decline

to enter the Armed Forces.

(c) ANNUAL SURVEY.—(1) Section 451 of title 10, United States

Code, is amended to read as follows:

‘‘§ 451. Race relations, gender discrimination, and hate

group activity: annual survey and report

‘‘(a) ANNUAL SURVEY.—The Secretary of Defense shall carry

out an annual survey to measure the state of racial, ethnic, and

gender issues and discrimination among members of the Armed

Forces serving on active duty and the extent (if any) of activity

among such members that may be seen as so-called ‘hate group’

activity. The survey shall solicit information on the race relations

and gender relations climate in the Armed Forces, including—

‘‘(1) indicators of positive and negative trends of relations

among all racial and ethnic groups and between the sexes;

‘‘(2) the effectiveness of Department of Defense policies

designed to improve race, ethnic, and gender relations; and

‘‘(3) the effectiveness of current processes for complaints

on and investigations into racial, ethnic, and gender discrimination.

‘‘(b) IMPLEMENTING ENTITY.—The Secretary shall carry out each

annual survey through the entity in the Department of Defense

known as the Armed Forces Survey on Race/Ethnic Issues.

‘‘(c) REPORTS TO CONGRESS.—Upon completion of each annual

survey under subsection (a), the Secretary shall submit to Congress

a report containing the results of the survey.’’.

(2) The item relating to such section in the table of sections

at the beginning of chapter 22 of such title is amended to read

as follows:

‘‘451. Race relations, gender discrimination, and hate group activity: annual survey

and report.’’.

10 USC 113 note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2533

SEC. 572. DISABILITY COVERAGE FOR MEMBERS GRANTED EXCESS

LEAVE FOR EDUCATIONAL OR EMERGENCY PURPOSES.

(a) ELIGIBILITY FOR RETIREMENT.—Section 1201 of title 10,

United States Code, is amended—

(1) by striking out the matter preceding paragraph (1)

and inserting in lieu thereof the following:

‘‘(a) RETIREMENT.—Upon a determination by the Secretary concerned that a member described in subsection (c) is unfit to perform

the duties of the member’s office, grade, rank, or rating because

of physical disability incurred while entitled to basic pay or while

absent as described in subsection (c)(3), the Secretary may retire

the member, with retired pay computed under section 1401 of

this title, if the Secretary also makes the determinations with

respect to the member and that disability specified in subsection

(b).

‘‘(b) REQUIRED DETERMINATIONS OF DISABILITY.—Determinations referred to in subsection (a) are determinations by the Secretary that—’’; and

(2) by adding at the end the following:

‘‘(c) ELIGIBLE MEMBERS.—This section and sections 1202 and

1203 of this title apply to the following members:

‘‘(1) A member of a regular component of the armed forces

entitled to basic pay.

‘‘(2) Any other member of the armed forces entitled to

basic pay who has been called or ordered to active duty (other

than for training under section 10148(a) of this title) for a

period of more than 30 days.

‘‘(3) Any other member of the armed forces who is on

active duty but is not entitled to basic pay by reason of section

502(b) of title 37 due to authorized absence (A) to participate

in an educational program, or (B) for an emergency purpose,

as determined by the Secretary concerned.’’.

(b) ELIGIBILITY FOR PLACEMENT ON TEMPORARY DISABILITY

RETIREMENT LIST.—Section 1202 of title 10, United States Code,

is amended by striking out ‘‘a member of a regular component’’

and all that follows through ‘‘more than 30 days,’’ and inserting

in lieu thereof ‘‘a member described in section 1201(c) of this title’’.

(c) ELIGIBILITY FOR SEPARATION.—Section 1203 of title 10,

United States Code, is amended by striking out the matter preceding paragraph (1) and inserting in lieu thereof the following:

‘‘(a) SEPARATION.—Upon a determination by the Secretary concerned that a member described in section 1201(c) of this title

is unfit to perform the duties of the member’s office, grade, rank,

or rating because of physical disability incurred while entitled to

basic pay or while absent as described in section 1201(c)(3) of

this title, the member may be separated from the member’s armed

force, with severance pay computed under section 1212 of this

title, if the Secretary also makes the determinations with respect

to the member and that disability specified in subsection (b).

‘‘(b) REQUIRED DETERMINATIONS OF DISABILITY.—Determinations referred to in subsection (a) are determinations by the

Secretary that—’’.

(d) EFFECTIVE DATE.—The amendments made by this section

shall take effect on the date of the enactment of this Act

and shall apply with respect to physical disabilities incurred on

or after such date.

Applicability.

10 USC 1201

note.
110 STAT. 2534 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 573. CLARIFICATION OF AUTHORITY OF A RESERVE JUDGE

ADVOCATE TO ACT AS A MILITARY NOTARY PUBLIC WHEN

NOT IN A DUTY STATUS.

Section 1044a(b) of title 10, United States Code, is amended—

(1) in paragraph (1), by striking out ‘‘on active duty or

performing inactive-duty training’’ and inserting in lieu thereof

‘‘, including reserve judge advocates when not in a duty status’’;

(2) in paragraph (3), by striking out ‘‘adjutants on active

duty or performing inactive-duty training’’ and inserting in

lieu thereof ‘‘adjutants, including reserve members when not

in a duty status’’; and

(3) in paragraph (4), by striking out ‘‘persons on active

duty or performing inactive-duty training’’ and inserting in

lieu thereof ‘‘members of the armed forces, including reserve

members when not in a duty status,’’.

SEC. 574. PANEL ON JURISDICTION OF COURTS-MARTIAL FOR THE

NATIONAL GUARD WHEN NOT IN FEDERAL SERVICE.

(a) ESTABLISHMENT.—The Secretary of Defense shall establish

a panel to review the various authorities for court-martial and

nonjudicial punishment jurisdiction for the National Guard not

in Federal service and the use of those authorities.

(b) MEMBERSHIP.—The Secretary shall appoint the members

of the panel so as to ensure representation of the following:

(1) The State Adjutants General of the National Guard.

(2) The State Attorneys General.

(3) The Joint Service Committee on Military Justice of

the Department of Defense.

(c) DUTIES.—Matters reviewed by the panel shall include the

following:

(1) The extent of the use of court-martial and nonjudicial

punishment authority for the National Guard not in Federal

service.

(2) The extent to which the authority used is—

(A) authority under title 32, United States Code; or

(B) authority under State law.

(d) REPORT.—(1) Not later than February 1, 1997, the panel

shall submit a report on the panel’s findings and conclusions to

the Secretary of Defense.

(2) The report shall include recommended legislation for

amending title 32, United States Code—

(A) to increase the uniformity in State use of courts-martial

and nonjudicial punishment for the National Guard when not

in Federal service; and

(B) to achieve increased comparability between the courtmartial and nonjudicial punishment procedures that are

applicable to the National Guard not in Federal service and

the court-martial and nonjudicial punishment procedures that

are applicable under the Uniform Code of Military Justice

to the National Guard in Federal service.

(e) SUBMISSION OF REPORT TO CONGRESS.—Not later than

March 1, 1997, the Secretary of Defense shall submit to Congress

the report of the panel under subsection (d) together with the

views of the Secretary regarding the report and the matters covered

in the report.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2535

SEC. 575. AUTHORITY TO EXPAND LAW ENFORCEMENT PLACEMENT

PROGRAM TO INCLUDE FIREFIGHTERS.

Section 1152(g) of title 10, United States Code, is amended—

(1) by striking out ‘‘(g) CONDITIONAL EXPANSION OF PLACEMENT TO INCLUDE FIREFIGHTERS.—(1) Subject to paragraph

(2), the’’ and inserting in lieu thereof ‘‘(g) AUTHORITY TO EXPAND

PLACEMENT TO INCLUDE FIREFIGHTERS.—The’’; and

(2) in paragraph (2)—

(A) by striking out the first sentence; and

(B) in the second sentence, by inserting ‘‘authorized

by this subsection’’ after ‘‘expansion’’.

SEC. 576. IMPROVEMENTS TO PROGRAM TO ASSIST SEPARATED MILITARY AND CIVILIAN PERSONNEL TO OBTAIN EMPLOYMENT

AS TEACHERS OR TEACHERS’ AIDES.

(a) PROGRAM FOR SEPARATED MEMBERS.—(1) Section 1151 of

title 10, United States Code, is amended—

(A) in subsection (f)(2), by striking out ‘‘five school years’’

in subparagraphs (A) and (B) and inserting in lieu thereof

‘‘two school years’’; and

(B) in subsection (h)(3)(A), by striking out ‘‘five consecutive

school years’’ and inserting in lieu thereof ‘‘two consecutive

school years’’.

(2) Subsection (g)(2) of such section is amended—

(A) by striking out the comma after ‘‘section 1174a of

this title’’ and inserting in lieu thereof ‘‘or’’; and

(B) by striking out ‘‘, or retires pursuant to the authority

provided in section 4403 of the National Defense Authorization

Act for fiscal year 1993 (Public Law 102–484; 10 U.S.C. 1293

note)’’.

(3) Subsection (h)(3)(B) of such section is amended—

(A) in clause (i), by striking out ‘‘$25,000’’ and inserting

in lieu thereof ‘‘$17,000’’;

(B) in clause (ii)—

(i) by striking out ‘‘40 percent’’ and inserting in lieu

thereof ‘‘25 percent’’; and

(ii) by striking out ‘‘$10,000’’ and inserting in lieu

thereof ‘‘$8,000’’; and

(C) by striking out clauses (iii), (iv), and (v).

(b) SEPARATED CIVILIAN EMPLOYEES OF THE DEPARTMENT OF

DEFENSE.—Section 1598(d)(2) of such title is amended by striking

out ‘‘five school years’’ in subparagraphs (A) and (B) and inserting

in lieu thereof ‘‘two school years’’.

(c) DISPLACED DEPARTMENT OF DEFENSE CONTRACTOR

EMPLOYEES.—Section 2410j(f)(2) of such title is amended by striking

out ‘‘five school years’’ in subparagraphs (A) and (B) and inserting

in lieu thereof ‘‘two school years’’.

(d) SAVINGS PROVISION.—The amendments made by this section

do not affect obligations under agreements entered into in accordance with section 1151, 1598, or 2410j of title 10, United States

Code, before the date of the enactment of this Act.

10 USC 1151

note.
110 STAT. 2536 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 577. RETIREMENT AT GRADE TO WHICH SELECTED FOR PROMOTION WHEN A PHYSICAL DISABILITY IS FOUND AT ANY

PHYSICAL EXAMINATION.

Section 1372 of title 10, United States Code, is amended by

striking out ‘‘his physical examination for promotion’’ in paragraphs

(3) and (4) and inserting in lieu thereof ‘‘a physical examination’’.

SEC. 578. REVISIONS TO MISSING PERSONS AUTHORITIES.

(a) REPEAL OF APPLICABILITY OF AUTHORITIES TO DEPARTMENT

OF DEFENSE CIVILIAN EMPLOYEES AND CONTRACTOR EMPLOYEES.—

(1) Section 1501 of title 10, United States Code, is amended—

(A) in subsection (c)—

(i) by striking out ‘‘applies in the case of’’ and all

that follows through ‘‘(1) Any member’’ and inserting in

lieu thereof ‘‘applies in the case of any member’’; and

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

(B) by striking out subsection (f).

(2) Section 1503(c) of such title is amended—

(A) in paragraph (1), by striking out ‘‘one individual

described in paragraph (2)’’ and inserting in lieu thereof ‘‘one

military officer’’;

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

(C) by redesignating paragraphs (3) and (4) as paragraphs

(2) and (3), respectively.

(3) Section 1504(d) of such title is amended—

(A) by striking out the text of paragraph (1) and inserting

in lieu thereof the following new text: ‘‘A board appointed

under this section shall be composed of at least three members

who are officers having the grade of major or lieutenant commander or above.’’; and

(B) in paragraph (4), by striking out ‘‘section 1503(c)(4)’’

and inserting in lieu thereof ‘‘section 1503(c)(3)’’.

(4) Paragraph (1) of section 1513 of such title is amended

to read as follows:

‘‘(1) The term ‘missing person’ means a member of the

armed forces on active duty who is in a missing status.’’.

(b) REPORT ON PRELIMINARY ASSESSMENT OF STATUS.—(1) Section 1502 of such title is amended—

(A) in subsection (a)(2)—

(i) by striking out ‘‘48 hours’’ and inserting in lieu

thereof ‘‘10 days’’; and

(ii) by striking out ‘‘theater component commander with

jurisdiction over the missing person’’ and inserting in lieu

thereof ‘‘Secretary concerned’’;

(B) by striking out subsection (b);

(C) by redesignating subsection (c) as subsection (b); and

(D) in subsection (b), as so redesignated, by striking out

the second sentence.

(2) Section 1503(a) of such title is amended by striking out

‘‘section 1502(b)’’ and inserting in lieu thereof ‘‘section 1502(a)’’.

(3) Section 1513 of such title is amended by striking out paragraph (8).

(c) FREQUENCY OF SUBSEQUENT REVIEWS.—Subsection (b) of

section 1505 of such title is amended to read as follows:

‘‘(b) FREQUENCY OF SUBSEQUENT REVIEWS.—The Secretary concerned shall conduct inquiries into the whereabouts and status

of a person under subsection (a) upon receipt of information that
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2537

may result in a change of status of the person. The Secretary

concerned shall appoint a board to conduct such inquiries.’’.

(d) REPEAL OF STATUTORY PENALTIES FOR WRONGFUL

WITHHOLDING OF INFORMATION.—Section 1506 of such title is

amended—

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

(2) by redesignating subsection (f) as subsection (e).

(e) INFORMATION TO ACCOMPANY RECOMMENDATION OF STATUS

OF DEATH.—Section 1507(b) of such title is amended by striking

out paragraphs (3) and (4).

(f) SCOPE OF PREENACTMENT REVIEW.—(1) Section 1509 of such

title is amended—

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

(B) by redesignating subsection (d) as subsection (c).

(2)(A) The heading of such section is amended by striking

out ‘‘, special interest’’.

(B) The item relating to such section in the table of sections

at the beginning of chapter 76 of such title is amended by striking

out ‘‘, special interest’’.

Subtitle I—Commissioned Corps of the

Public Health Service

SEC. 581. APPLICABILITY TO PUBLIC HEALTH SERVICE OF PROHIBITION ON CREDITING CADET OR MIDSHIPMEN SERVICE AT

THE SERVICE ACADEMIES.

(a) PROHIBITION ON COUNTING ENLISTED SERVICE PERFORMED

WHILE AT SERVICE ACADEMY.—Subsection (a) of section 971 of title

10, United States Code, is amended by inserting before the period

at the end the following: ‘‘or an officer in the Commissioned Corps

of the Public Health Service’’.

(b) PROHIBITION ON COUNTING SERVICE AS A CADET OR MID- SHIPMAN.—Subsection (b) of such section is amended to read as

follows:

‘‘(b) PROHIBITION ON COUNTING SERVICE AS A CADET OR MID- SHIPMAN.—In computing length of service for any purpose, service

as a cadet or midshipman may not be credited to any of the

following officers:

‘‘(1) An officer of the Navy or Marine Corps.

‘‘(2) A commissioned officer of the Army or Air Force.

‘‘(3) An officer of the Coast Guard.

‘‘(4) An officer in the commissioned corps of the Public

Health Service.’’.

(c) TECHNICAL AMENDMENTS.—(1) Such section is further

amended by adding at the end the following new subsection:

‘‘(c) SERVICE AS A CADET OR MIDSHIPMAN DEFINED.—In this

section, the term ‘service as a cadet or midshipman’ means—

‘‘(1) service as a cadet at the United States Military

Academy, United States Air Force Academy, or United States

Coast Guard Academy; or

‘‘(2) service as a midshipman at the United States Naval

Academy.’’.

(2) Subsection (a) of such section is further amended—

(A) by inserting ‘‘PROHIBITION ON COUNTING ENLISTED

SERVICE PERFORMED WHILE AT SERVICE ACADEMY OR IN NAVAL

RESERVE.—’’ after ‘‘(a)’’; and
110 STAT. 2538 PUBLIC LAW 104–201—SEPT. 23, 1996

(B) by striking out ‘‘while also serving’’ and all that follows

through ‘‘Naval Academy or’’ and inserting in lieu thereof ‘‘while

also performing service as a cadet or midshipman or serving

as a midshipman’’.

(3) The heading of such section, and the item relating to such

section in the table of sections at the beginning of chapter 49

of such title, are amended by striking out the seventh word.

SEC. 582. EXCEPTION TO STRENGTH LIMITATIONS FOR PUBLIC

HEALTH SERVICE OFFICERS ASSIGNED TO THE DEPARTMENT OF DEFENSE.

Section 206 of the Public Health Service Act (42 U.S.C. 207)

is amended by adding at the end the following new subsection:

‘‘(f) In computing the maximum number of commissioned officers of the Public Health Service authorized by law or administrative determination to serve on active duty, there may be excluded

from such computation officers who are assigned to duty in the

Department of Defense.’’.

SEC. 583. AUTHORITY TO PROVIDE LEGAL ASSISTANCE TO PUBLIC

HEALTH SERVICE OFFICERS.

(a) LEGAL ASSISTANCE AVAILABLE.—Subsection (a) of section

1044 of title 10, United States Code, is amended by striking out

paragraph (3) and inserting in lieu thereof the following:

‘‘(3) Officers of the commissioned corps of the Public Health

Service who are on active duty or entitled to retired or equivalent pay.

‘‘(4) Dependents of members and former members described

in paragraphs (1), (2), and (3).’’.

(b) LIMITATION ON ASSISTANCE.—Subsection (c) of such section

is amended—

(1) by striking out ‘‘armed forces’’ and inserting in lieu

thereof ‘‘uniformed services described in subsection (a)’’; and

(2) by inserting ‘‘such’’ after ‘‘dependent of’’.

(c) CLARIFYING AMENDMENTS.—Subsection (a) of such section

is further amended by striking out ‘‘under his jurisdiction’’ in paragraphs (1) and (2).

(d) STYLISTIC AMENDMENTS.—Subsection (a) of such section is

further amended—

(1) in the matter preceding paragraph (1), by striking out

‘‘to—’’ and inserting in lieu thereof ‘‘to the following persons:’’;

(2) by capitalizing the first letter of the first word of paragraphs (1) and (2);

(3) by striking out the semicolon at the end of paragraph

(1) and inserting in lieu thereof a period; and

(4) by striking out ‘‘; and’’ at the end of paragraph (2)

and inserting in lieu thereof a period.

TITLE VI—COMPENSATION AND OTHER

PERSONNEL BENEFITS

Subtitle A—Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1997.

Sec. 602. Adjustment of rate of cadet and midshipman pay.

Sec. 603. Pay of senior noncommissioned officers while hospitalized.

Sec. 604. Availability of basic allowance for quarters for certain members without

dependents who serve on sea duty.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2539

Sec. 605. Uniform applicability of discretion to deny an election not to occupy

Government quarters. Sec. 606. Establishment of minimum monthly amount of variable housing allowance for high housing cost areas. Sec. 607. Family separation allowance for members separated by military orders

from spouses who are members. Sec. 608. Waiver of time limitations for claim for pay and allowances.

Subtitle B—Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay authorities for

Reserve forces.

Sec. 612. One-year extension of certain bonuses and special pay authorities for

nurse officer candidates, registered nurses, and nurse anesthetists.

Sec. 613. One-year extension of authorities relating to payment of other bonuses

and special pays.

Sec. 614. Special pay for certain Public Health Service officers.

Sec. 615. Special incentives to recruit and retain dental officers.

Sec. 616. Foreign language proficiency pay for Public Health Service and National

Oceanic and Atmospheric Administration officers.

Subtitle C—Travel and Transportation Allowances

Sec. 621. Allowance in connection with shipping motor vehicle at Government

expense.

Sec. 622. Dislocation allowance at a rate equal to two and one-half months basic

allowance for quarters.

Sec. 623. Allowance for travel performed in connection with leave between consecutive overseas tours.

Sec. 624. Funding for transportation of household effects of Public Health Service

officers.

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

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

1998.

Sec. 632. Clarification of initial computation of retiree COLAs after retirement.

Sec. 633. Suspension of payment of retired pay of members who are absent from

the United States to avoid prosecution.

Sec. 634. Nonsubstantive restatement of Survivor Benefit Plan statute.

Sec. 635. Increases in Survivor Benefit Plan contributions to be effective concurrently with payment of retired pay cost-of-living increases.

Sec. 636. Amendments to the Uniformed Services Former Spouses’ Protection Act.

Sec. 637. Prevention of circumvention of court order by waiver of retired pay to

enhance civil service retirement annuity.

Sec. 638. Administration of benefits for so-called minimum income widows.

Subtitle E—Other Matters

Sec. 651. Discretionary allotment of pay, including retired or retainer pay.

Sec. 652. Reimbursement for adoption expenses incurred in adoptions through

private placements.

Sec. 653. Waiver of recoupment of amounts withheld for tax purposes from certain

separation pay.

Sec. 654. Technical correction clarifying limitation on furnishing clothing or allowances for enlisted National Guard technicians.

Sec. 655. Technical correction to prior authority for payment of back pay to certain

persons.

Sec. 656. Compensation for persons awarded prisoner of war medal who did not

previously receive compensation as a prisoner of war.

Sec. 657. Payments to certain persons captured and interned by North Vietnam.

Subtitle A—Pay and Allowances

SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1997.

(a) WAIVER OF SECTION 1009 ADJUSTMENT.—Any adjustment

required by section 1009 of title 37, United States Code, in elements

of compensation of members of the uniformed services to become

effective during fiscal year 1997 shall not be made.

(b) INCREASE IN BASIC PAY AND BAS.—Effective on January

1, 1997, the rates of basic pay and basic allowance for subsistence

of members of the uniformed services are increased by 3.0 percent.

Effective date.

10 USC 1151

note.
110 STAT. 2540 PUBLIC LAW 104–201—SEPT. 23, 1996

(c) INCREASE IN BAQ.—Effective on January 1, 1997, the rates

of basic allowance for quarters of members of the uniformed services

are increased by 4.6 percent.

SEC. 602. ADJUSTMENT OF RATE OF CADET AND MIDSHIPMAN PAY.

Section 203(c) of title 37, United States Code, is amended—

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

(2) in paragraph (1), by striking out ‘‘(1)’’.

SEC. 603. PAY OF SENIOR NONCOMMISSIONED OFFICERS WHILE

HOSPITALIZED.

(a) PAY DURING HOSPITALIZATION.—Section 210 of title 37,

United States Code, is amended—

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

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

‘‘(b) A noncommissioned officer of an armed force who is

hospitalized and who, during or immediately before such hospitalization, completed service as the senior enlisted member of

that armed force, shall continue to be entitled, for not more than

180 days while so hospitalized, to the rate of basic pay authorized

for the senior enlisted member of that armed force.’’.

(b) CLERICAL AMENDMENTS.—(1) The heading of such section

is amended to read as follows:

‘‘§ 210. Pay of senior enlisted members during terminal leave

and while hospitalized’’.

(2) The item relating to such section in the table of sections

at the beginning of chapter 3 of title 37, United States Code,

is amended to read as follows:

‘‘210. Pay of senior enlisted members during terminal leave and while hospitalized.’’.

SEC. 604. AVAILABILITY OF BASIC ALLOWANCE FOR QUARTERS FOR

CERTAIN MEMBERS WITHOUT DEPENDENTS WHO SERVE

ON SEA DUTY.

(a) ENTITLEMENT OF SINGLE MEMBERS ABOVE GRADE E–5.—

Section 403(c)(2) of title 37, United States Code, is amended—

(1) by striking out ‘‘A member’’ in the first sentence and

inserting in lieu thereof ‘‘(A) Except as provided in subparagraphs (B) and (C), a member’’; and

(2) by striking out the second sentence.

(b) ENTITLEMENT OF CERTAIN SINGLE MEMBERS IN GRADE

E–5.—Such section is further amended by adding at the end the

following new subparagraph:

‘‘(B) Under regulations prescribed by the Secretary concerned,

the Secretary may authorize the payment of a basic allowance

for quarters to a member of a uniformed service without dependents

who is serving in pay grade E–5 and is assigned to sea duty.

In prescribing regulations under this subparagraph, the Secretary

concerned shall consider the availability of quarters for members

serving in pay grade E–5.’’.

(c) ENTITLEMENT WHEN BOTH SPOUSES IN GRADES BELOW

GRADE E–6 ARE ASSIGNED TO SEA DUTY.—Such section is further

amended by inserting after subparagraph (B), as added by subsection (b), the following new subparagraph:

‘‘(C) Notwithstanding section 421 of this title, two members

of the uniformed services in a pay grade below pay grade

E–6 who are married to each other, have no other dependents,

Regulations.

Effective date.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2541

and are simultaneously assigned to sea duty are jointly entitled

to one basic allowance for quarters during the period of such

simultaneous sea duty. The amount of the allowance shall be based

on the without dependents rate for the pay grade of the senior

member of the couple. However, this subparagraph shall not apply

to a couple if one or both of the members are entitled to a basic

allowance for quarters under subparagraph (B).’’.

(d) CONFORMING AMENDMENT REGARDING VARIABLE HOUSING

ALLOWANCE.—Section 403a(b)(2)(C) of title 37, United States Code,

is amended by striking out ‘‘E–6’’ and inserting in lieu thereof

‘‘E–4’’.

(e) EFFECTIVE DATE.—The amendments made by this section

shall take effect on July 1, 1997.

SEC. 605. UNIFORM APPLICABILITY OF DISCRETION TO DENY AN

ELECTION NOT TO OCCUPY GOVERNMENT QUARTERS.

Section 403(b)(3) of title 37, United States Code, is amended

by striking out ‘‘A member’’ and inserting in lieu thereof ‘‘Subject

to the provisions of subsection (j), a member’’.

SEC. 606. ESTABLISHMENT OF MINIMUM MONTHLY AMOUNT OF VARIABLE HOUSING ALLOWANCE FOR HIGH HOUSING COST

AREAS.

(a) MINIMUM MONTHLY AMOUNT OF ALLOWANCE.—Subsection

(c) of section 403a of title 37, United States Code, is amended

by striking out paragraph (1) and inserting in lieu thereof the

following new paragraph:

‘‘(1) The monthly amount of a variable housing allowance under

this section for a member of a uniformed service with respect

to an area is equal to the greater of the following amounts:

‘‘(A) An amount equal to the difference between—

‘‘(i) the median monthly cost of housing in that area

for members of the uniformed services serving in the same

pay grade and with the same dependency status as that

member; and

‘‘(ii) 80 percent of the median monthly cost of housing

in the United States for members of the uniformed services

serving in the same pay grade and with the same dependency status as that member.

‘‘(B) An amount equal to the difference between—

‘‘(i) the adequate housing allowance floor determined

by the Secretary of Defense for all members of the uniformed services in that area entitled to a variable housing

allowance under this section; and

‘‘(ii) the monthly basic allowance for quarters for

members of the uniformed services serving in the same

pay grade and with the same dependency status as that

member.’’.

(b) ADEQUATE HOUSING ALLOWANCE FLOOR.—Such subsection

is further amended by adding at the end the following new paragraph:

‘‘(7)(A) For purposes of paragraph (1)(B)(i), the Secretary of

Defense shall establish an adequate housing allowance floor for

members of the uniformed services in an area as a selected percentage, not to exceed 85 percent, of the cost of adequate housing

in that area based on an index of housing costs selected by the

Secretary of Defense from among the following:

Effective date.
110 STAT. 2542 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(i) The fair market rentals established annually by the

Secretary of Housing and Urban Development under section

8(c)(1) of the United States Housing Act of 1937 (42 U.S.C.

1437f(c)(1)).

‘‘(ii) An index developed in the private sector that the

Secretary of Defense determines is comparable to the fair market rentals referred to in clause (i) and is appropriate for

use to determine the adequate housing allowance floor.

‘‘(B) The Secretary of Defense shall carry out this paragraph

in consultation with the Secretary of Transportation, the Secretary

of Commerce, and the Secretary of Health and Human Services.’’.

(c) EFFECT ON TOTAL AMOUNT AVAILABLE FOR ALLOWANCE.—

Subsection (d)(3) of such section is amended in the second sentence

by striking out ‘‘the second sentence of subsection (c)(3)’’ and inserting in lieu thereof ‘‘paragraph (1)(B) of subsection (c) and the

second sentence of paragraph (3) of that subsection’’.

(d) CONFORMING AMENDMENTS.—Subsection (c) of such section

is further amended—

(1) in paragraph (3), by striking out ‘‘this subsection’’ in

the first sentence and inserting in lieu thereof ‘‘paragraph

(1)(A) or the minimum amount of a variable housing allowance

under paragraph (1)(B)’’; and

(2) in paragraph (5), by inserting ‘‘or minimum amount

of a variable housing allowance’’ after ‘‘costs of housing’’.

(e) EFFECTIVE DATE.—The amendments made by this section

shall take effect on January 1, 1997, except that the Secretary

of Defense may delay implementation of the requirements imposed

by the amendments to such later date as the Secretary considers

appropriate upon publication of notice to that effect in the Federal

Register.

SEC. 607. FAMILY SEPARATION ALLOWANCE FOR MEMBERS SEPARATED BY MILITARY ORDERS FROM SPOUSES WHO ARE

MEMBERS.

(a) ADDITIONAL BASIS FOR ALLOWANCE.—Paragraph (1) of section 427(b) of title 37, United States Code, is amended—

(1) by striking out ‘‘or’’ at the end of subparagraph (B);

(2) by striking out the period at the end of subparagraph

(C) and inserting in lieu thereof ‘‘; or’’; and

(3) by adding at the end the following new subparagraph:

‘‘(D) the member is married to a member of a uniformed

service, the member has no dependent other than the spouse,

the two members are separated by reason of the execution

of military orders, and the two members were residing together

immediately before being separated by reason of execution of

military orders.’’.

(b) CONFORMING AMENDMENT.—Such section is further

amended by adding at the end the following new paragraph:

‘‘(5) Section 421 of this title does not apply to bar an entitlement

to an allowance under paragraph (1)(D). However, not more than

one monthly allowance may be paid with respect to a married

couple under paragraph (1)(D) for any month.’’.

SEC. 608. WAIVER OF TIME LIMITATIONS FOR CLAIM FOR PAY AND

ALLOWANCES.

Section 3702 of title 31, United States Code, is amended by

adding at the end the following new subsection:

Federal Register,

publication.

37 USC 403a

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2543

‘‘(e)(1) Upon the request of the Secretary concerned (as defined

in section 101 of title 37, United States Code), the Comptroller

General may waive the time limitations set forth in subsection

(b) or (c) in the case of a claim for pay or allowances provided

under title 37 and, subject to paragraph (2), settle the claim.

‘‘(2) Payment of a claim settled under paragraph (1) shall

be subject to the availability of appropriations for payment of that

particular claim.

‘‘(3) This subsection does not apply to a claim in excess of $25,000.’’.

Subtitle B—Bonuses and Special and

Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL

PAY AUTHORITIES FOR RESERVE FORCES.

(a) SPECIAL PAY FOR CRITICALLY SHORT WARTIME HEALTH

SPECIALISTS.—Section 302g(f) of title 37, United States Code, is

amended by striking out ‘‘September 30, 1997’’ and inserting in

lieu thereof ‘‘September 30, 1998’’.

(b) SELECTED RESERVE REENLISTMENT BONUS.—Section 308b(f)

of title 37, United States Code, is amended by striking out ‘‘September 30, 1997’’ and inserting in lieu thereof ‘‘September 30, 1998’’.

(c) SELECTED RESERVE ENLISTMENT BONUS.—Section 308c(e)

of title 37, United States Code, is amended by striking out ‘‘September 30, 1997’’ and inserting in lieu thereof ‘‘September 30, 1998’’.

(d) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED TO CERTAIN

HIGH PRIORITY UNITS.—Section 308d(c) of title 37, United States

Code, is amended by striking out ‘‘September 30, 1997’’ and inserting in lieu thereof ‘‘September 30, 1998’’.

(e) SELECTED RESERVE AFFILIATION BONUS.—Section 308e(e)

of title 37, United States Code, is amended by striking out ‘‘September 30, 1997’’ and inserting in lieu thereof ‘‘September 30, 1998’’.

(f) READY RESERVE ENLISTMENT AND REENLISTMENT BONUS.— Section 308h(g) of title 37, United States Code, is amended by

striking out ‘‘September 30, 1997’’ and inserting in lieu thereof

‘‘September 30, 1998’’.

(g) PRIOR SERVICE ENLISTMENT BONUS.—Section 308i(i) of

title 37, United States Code, is amended by striking out ‘‘September

30, 1997’’ and inserting in lieu thereof ‘‘September 30, 1998’’.

SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL

PAY AUTHORITIES 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, 1997’’ and inserting in lieu thereof ‘‘September

30, 1998’’.

(b) ACCESSION BONUS FOR REGISTERED NURSES.—Section

302d(a)(1) of title 37, United States Code, is amended by striking

out ‘‘September 30, 1997’’ and inserting in lieu thereof ‘‘September

30, 1998’’.

(c) INCENTIVE SPECIAL PAY FOR NURSE ANESTHETISTS.—Section

302e(a)(1) of title 37, United States Code, is amended by striking

out ‘‘September 30, 1997’’ and inserting in lieu thereof ‘‘September

30, 1998’’.
110 STAT. 2544 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 613. ONE-YEAR EXTENSION OF AUTHORITIES 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, 1997’’ and inserting in lieu thereof ‘‘September 30, 1998,’’.

(b) REENLISTMENT BONUS FOR ACTIVE MEMBERS.—Section

308(g) of title 37, United States Code, is amended by striking

out ‘‘September 30, 1997’’ and inserting in lieu thereof ‘‘September

30, 1998’’.

(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, 1997’’ and inserting in

lieu thereof ‘‘September 30, 1998’’.

(d) 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, 1997’’

and inserting in lieu thereof ‘‘September 30, 1998’’.

(e) NUCLEAR CAREER ACCESSION BONUS.—Section 312b(c) of

title 37, United States Code, is amended by striking out ‘‘September

30, 1997’’ and inserting in lieu thereof ‘‘September 30, 1998’’.

(f) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—Section

312c(d) of title 37, United States Code, is amended by striking

out ‘‘October 1, 1997’’ and inserting in lieu thereof ‘‘October 1,

1998’’.

(g) 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, 1997’’ and inserting in lieu thereof ‘‘October 1,

1998’’.

SEC. 614. SPECIAL PAY FOR CERTAIN PUBLIC HEALTH SERVICE

OFFICERS.

(a) OPTOMETRISTS.—Section 302a(b) of title 37, United States

Code, is amended—

(1) in paragraph (2)—

(A) by striking out ‘‘an armed force’’ in the matter

preceding subparagraph (A) and inserting in lieu thereof

‘‘a uniformed service’’; and

(B) by striking out ‘‘of the military department’’ in

subparagraph (C); and

(2) in paragraph (4), by striking out ‘‘of the military department’’.

(b) NONPHYSICIAN HEALTH CARE PROVIDERS.—Section 302c(d)

of title 37, United States Code, is amended—

(1) in the matter preceding paragraph (1), by striking out

‘‘Secretary of Defense’’ and inserting in lieu thereof ‘‘Secretary

concerned’’; and

(2) in paragraph (1)—

(A) by striking out ‘‘or’’ the third place it

appears; and

(B) by inserting before the period at the end the

following: ‘‘, or an officer in the Regular or Reserve Corps

of the Public Health Service’’.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2545

SEC. 615. SPECIAL INCENTIVES TO RECRUIT AND RETAIN DENTAL

OFFICERS.

(a) VARIABLE, ADDITIONAL, AND BOARD CERTIFIED SPECIAL PAYS

FOR ACTIVE DUTY DENTAL OFFICERS.—Section 302b(a) of title 37,

United States Code, is amended—

(1) in paragraph (2)— (A) in subparagraph (A), by striking out ‘‘$1,200’’ and inserting in lieu thereof ‘‘$3,000’’; (B) in subparagraph (B), by striking out ‘‘$2,000’’ and inserting in lieu thereof ‘‘$7,000’’; and (C) in subparagraph (C), by striking out ‘‘$4,000’’ and inserting in lieu thereof ‘‘$7,000’’;

(2) in paragraph (4), by striking out subparagraphs (A),

(B), and (C) and inserting in lieu thereof the following: ‘‘(A) $4,000 per year, if the officer has less than three

years of creditable service. ‘‘(B) $6,000 per year, if the officer has at least three but

less than 14 years of creditable service. ‘‘(C) $8,000 per year, if the officer has at least 14 but

less than 18 years of creditable service.

‘‘(D) $10,000 per year, if the officer has at least 18 or

more years of creditable service.’’; and

(3) in paragraph (5), by striking out subparagraphs (A),

(B), and (C) and inserting in lieu thereof the following:

‘‘(A) $2,500 per year, if the officer has less than 10 years

of creditable service.

‘‘(B) $3,500 per year, if the officer has at least 10 but

less than 12 years of creditable service.

‘‘(C) $4,000 per year, if the officer has at least 12 but

less than 14 years of creditable service.

‘‘(D) $5,000 per year, if the officer has at least 14 but

less than 18 years of creditable service.

‘‘(E) $6,000 per year, if the officer has 18 or more years

of creditable service.’’.

(b) RESERVE DENTAL OFFICERS SPECIAL PAY.—Section 302b

of title 37, United States Code, is amended by adding at the end

the following new subsection:

‘‘(h) RESERVE DENTAL OFFICERS SPECIAL PAY.—(1) A reserve

dental officer described in paragraph (2) is entitled to special pay

at the rate of $350 a month for each month of active duty, including

active duty in the form of annual training, active duty for training,

and active duty for special work.

‘‘(2) A reserve dental officer referred to in paragraph (1) is

a reserve officer who—

‘‘(A) is an officer of the Dental Corps of the Army or

the Navy or an officer of the Air Force designated as a dental

officer; and

‘‘(B) is on active duty under a call or order to active duty

for a period of less than one year.’’.

(c) ACCESSION BONUS FOR DENTAL SCHOOL GRADUATES WHO

ENTER THE ARMED FORCES.—(1) Chapter 5 of title 37, United States

Code, is amended by inserting after section 302g the following

new section:

‘‘§ 302h. Special pay: accession bonus for dental officers

‘‘(a) ACCESSION BONUS AUTHORIZED.—(1) A person who is a

graduate of an accredited dental school and who, during the period
110 STAT. 2546 PUBLIC LAW 104–201—SEPT. 23, 1996

beginning on the date of the enactment of this section, and ending

on September 30, 2002, executes a written agreement described

in subsection (c) to accept a commission as an officer of the armed

forces and remain on active duty for a period of not less than

four years may, upon the acceptance of the agreement by the

Secretary concerned, be paid an accession bonus in an amount

determined by the Secretary concerned.

‘‘(2) The amount of an accession bonus under paragraph (1) may not exceed $30,000.

‘‘(b) LIMITATION ON ELIGIBILITY FOR BONUS.—A person may

not be paid a bonus under subsection (a) if—

‘‘(1) the person, in exchange for an agreement to accept

an appointment as an officer, received financial assistance from

the Department of Defense to pursue a course of study in

dentistry; or

‘‘(2) the Secretary concerned determines that the person

is not qualified to become and remain certified and licensed

as a dentist.

‘‘(c) AGREEMENT.—The agreement referred to in subsection (a)

shall provide that, consistent with the needs of the armed service

concerned, the person executing the agreement will be assigned

to duty, for the period of obligated service covered by the agreement,

as an officer of the Dental Corps of the Army or the Navy or

an officer of the Air Force designated as a dental officer.

‘‘(d) REPAYMENT.—(1) An officer who receives a payment under

subsection (a) and who fails to become and remain certified or

licensed as a dentist during the period for which the payment

is made shall refund to the United States an amount equal to

the full amount of such payment.

‘‘(2) An officer who voluntarily terminates service on active

duty before the end of the period agreed to be served under subsection (a) shall refund to the United States an amount that bears

the same ratio to the amount paid to the officer as the unserved

part of such period bears to the total period agreed to be served.

‘‘(3) An obligation to reimburse the United States imposed

under paragraph (1) or (2) is for all purposes a debt owed to

the United States.

‘‘(4) 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 signing such agreement

from a debt arising under such agreement or this subsection. This

paragraph applies to any case commenced under title 11 after

the date of the enactment of this section.’’.

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

is amended by inserting after the item relating to section 302g

the following new item:

‘‘302h. Special pay: accession bonus for dental officers.’’.

(3) Section 303a of title 37, United States Code, is amended

by striking out ‘‘302g’’ each place it appears and inserting in lieu

thereof ‘‘302h’’.

(d) REPORT ON ADDITIONAL ACTIVITIES TO INCREASE RECRUIT- MENT OF DENTISTS.—Not later than April 1, 1997, the Secretary

of Defense shall submit to Congress a report describing the feasibility of increasing the number of persons enrolled in the Armed

Forces Health Professions Scholarship and Financial Assistance

program who are pursuing a course of study in dentistry in anticipation of service as an officer of the Dental Corps of the Army
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2547

or the Navy or an officer of the Air Force designated as a dental

officer.

(e) STYLISTIC AMENDMENTS.—Section 302b of title 37, United

States Code, is amended—

(1) in subsection (a), by inserting ‘‘VARIABLE, ADDITIONAL,

AND BOARD CERTIFICATION SPECIAL PAY.—’’ after ‘‘(a)’’;

(2) in subsection (b), by inserting ‘‘ACTIVE-DUTY AGREEMENT.—’’ after ‘‘(b)’’;

(3) in subsection (c), by inserting ‘‘REGULATIONS.—’’ after

‘‘(c)’’;

(4) in subsection (d), by inserting ‘‘FREQUENCY OF PAYMENTS.—’’ after ‘‘(d)’’;

(5) in subsection (e), by inserting ‘‘REFUND FOR PERIOD

OF UNSERVED OBLIGATED SERVICE.—’’ after ‘‘(e)’’;

(6) in subsection (f), by inserting ‘‘EFFECT OF DISCHARGE

IN BANKRUPTCY.—’’ after ‘‘(f)’’; and

(7) in subsection (g), by inserting ‘‘DETERMINATION OF

CREDITABLE SERVICE.—’’ after ‘‘(g)’’.

SEC. 616. FOREIGN LANGUAGE PROFICIENCY PAY FOR PUBLIC

HEALTH SERVICE AND NATIONAL OCEANIC AND

ATMOSPHERIC ADMINISTRATION OFFICERS.

(a) ELIGIBILITY.—Subsection (a) of section 316 of title 37, United

States Code, is amended—

(1) in the matter preceding paragraph (1), by striking out

‘‘armed forces’’ and inserting in lieu thereof ‘‘uniformed

services’’;

(2) in paragraph (2)—

(A) by striking out ‘‘Secretary of Defense’’ and inserting

in lieu thereof ‘‘Secretary concerned’’; and

(B) by inserting ‘‘or public health’’ after ‘‘national

defense’’; and

(3) in paragraph (3)—

(A) in subparagraph (A), by striking out ‘‘military’’

and inserting in lieu thereof ‘‘uniformed services’’;

(B) in subparagraph (C), by striking out

‘‘military’’; and

(C) in subparagraph (D)—

(i) by striking out ‘‘Department of Defense’’ and

inserting in lieu thereof ‘‘uniformed service’’; and

(ii) by striking out ‘‘Secretary of Defense’’ and

inserting in lieu thereof ‘‘Secretary concerned’’.

(b) ADMINISTRATION.—Subsection (d) of such section is

amended—

(1) by striking out ‘‘his jurisdiction and’’ and inserting

in lieu thereof ‘‘the jurisdiction of the Secretary,’’; and

(2) by inserting before the period at the end the following:

‘‘, by the Secretary of Health and Human Services for the

Commissioned Corps of the Public Health Service, and by the

Secretary of Commerce for the National Oceanic and

Atmospheric Administration’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall take effect on October 1, 1996, and apply with respect to

months beginning on or after such date.

Applicability.

37 USC 316 note.
110 STAT. 2548 PUBLIC LAW 104–201—SEPT. 23, 1996

Subtitle C—Travel and Transportation

Allowances

SEC. 621. ALLOWANCE IN CONNECTION WITH SHIPPING MOTOR

VEHICLE AT GOVERNMENT EXPENSE.

(a) ALLOWANCE AUTHORIZED.—Section 406(b)(1)(B) of title 37,

United States Code, is amended by adding at the end the following:

‘‘If clause (i)(I) applies to the transportation by the member of

a motor vehicle from the old duty station, the monetary allowance

under this subparagraph shall also cover return travel to the old

duty station by the member or other person transporting the vehicle.

In the case of transportation described in clause (ii), the monetary

allowance shall also cover travel from the new duty station to

the port of debarkation to pick up the vehicle.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect on January 1, 1997.

SEC. 622. DISLOCATION ALLOWANCE AT A RATE EQUAL TO TWO AND

ONE-HALF MONTHS BASIC ALLOWANCE FOR QUARTERS.

(a) ALLOWANCE AUTHORIZED.—Section 407(a) of title 37, United

States Code, is amended in the matter preceding paragraph (1)

by striking out ‘‘two months’’ and inserting in lieu thereof ‘‘two

and one-half months’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect on January 1, 1997.

SEC. 623. ALLOWANCE FOR TRAVEL PERFORMED IN CONNECTION

WITH LEAVE BETWEEN CONSECUTIVE OVERSEAS TOURS.

(a) AUTHORITY FOR ADDITIONAL DEFERRAL OF TRAVEL.—Section

411b(a)(2) of title 37, United States Code, is amended by adding

at the end the following: ‘‘If the member is unable to undertake

the travel before the end of such one-year period as a result of

duty in connection with a contingency operation, the member may

defer the travel for one additional year beginning on the date

the duty of the member in connection with the contingency operation

ends.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect as of November 1, 1995.

SEC. 624. FUNDING FOR TRANSPORTATION OF HOUSEHOLD EFFECTS

OF PUBLIC HEALTH SERVICE OFFICERS.

Section 406(j) of title 37, United States Code, is amended—

(1) in the first sentence of paragraph (1)—

(A) by striking out ‘‘Appropriations available’’ and all

that follows through ‘‘to a member’’ and inserting in lieu

thereof ‘‘The Secretary concerned may pay a monetary

allowance to a member of the armed forces or a member

of the Commissioned Corps of the Public Health Service’’;

and

(B) by striking out ‘‘of the military department’’; and

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

‘‘(3) Appropriations available to the Department of Defense

for providing transportation of household effects of members of

the armed forces under subsection (b) shall be available to pay

the monetary allowance authorized under paragraph (1) to such

members. Appropriations available to the Department of Health

37 USC 411b

note.

37 USC 407 note.

37 USC 406 note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2549

and Human Services for providing transportation of household

effects of members of the Commissioned Corps of the Public Health

Service under subsection (b) shall be available to pay the monetary

allowance authorized under paragraph (1) to such members.’’.

Subtitle D—Retired Pay, Survivor Benefits,

and Related Matters

SEC. 631. EFFECTIVE DATE FOR MILITARY RETIREE COST-OF-LIVING

ADJUSTMENT FOR FISCAL YEAR 1998.

(a) REPEAL OF ADJUSTMENT OF EFFECTIVE DATE FOR FISCAL

YEAR 1998.—Section 1401a(b)(2)(B) of title 10, United States Code,

is amended—

(1) by striking out ‘‘(B) SPECIAL RULES’’ and all that follows

through ‘‘In the case of’’ in clause (i) and inserting in lieu

thereof ‘‘(B) SPECIAL RULE FOR FISCAL YEAR 1996.—In the case

of’’; and

(2) by striking out clause (ii).

(b) REPEAL OF CONTINGENT ALTERNATIVE DATE FOR FISCAL

YEAR 1998.—Section 631 of the National Defense Authorization

Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 364)

is amended by striking out subsection (b).

SEC. 632. CLARIFICATION OF INITIAL COMPUTATION OF RETIREE

COLAS AFTER RETIREMENT.

(a) IN GENERAL.—Section 1401a of title 10, United States Code,

is amended by striking out subsections (c) and (d) and inserting

in lieu thereof the following new subsections:

‘‘(c) FIRST COLA ADJUSTMENT FOR MEMBERS WITH RETIRED

PAY COMPUTED USING FINAL BASIC PAY.—

‘‘(1) FIRST ADJUSTMENT WITH INTERVENING INCREASE IN

BASIC PAY.—Notwithstanding subsection (b), if a person

described in paragraph (3) becomes entitled to retired pay

based on rates of monthly basic pay that became effective

after the last day of the calendar quarter of the base index,

the retired pay of the member or former member shall be

increased on the effective date of the next adjustment of retired

pay under subsection (b) only by the percent (adjusted to the

nearest one-tenth of 1 percent) by which—

‘‘(A) the price index for the base quarter of that year,

exceeds

‘‘(B) the price index for the calendar quarter immediately before the calendar quarter in which the rates

of monthly basic pay on which the retired pay is based

became effective.

‘‘(2) FIRST ADJUSTMENT WITH NO INTERVENING INCREASE

IN BASIC PAY.—If a person described in paragraph (3) becomes

entitled to retired pay on or after the effective date of an

adjustment in retired pay under subsection (b) but before the

effective date of the next increase in the rates of monthly

basic pay, the retired pay of the member or former member

shall be increased, effective on the date the member becomes

entitled to that pay, by the percent (adjusted to the nearest

one-tenth of 1 percent) by which—

‘‘(A) the base index, exceeds

10 USC 1401a

note.
110 STAT. 2550 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(B) the price index for the calendar quarter immediately before the calendar quarter in which the rates

of monthly basic pay on which the retired pay is based

became effective.

‘‘(3) MEMBERS COVERED.—Paragraphs (1) and (2) apply

to a member or former member of an armed force who first

became a member of a uniformed service before August 1,

1986, and whose retired pay base is determined under section

1406 of this title.

‘‘(d) FIRST COLA ADJUSTMENT FOR MEMBERS WITH RETIRED

PAY COMPUTED USING HIGH-THREE.—Notwithstanding subsection

(b), the retired pay of a member or former member of an armed

force who first became a member of a uniformed service before

August 1, 1986, and whose retired pay base is determined under

section 1407 of this title shall be increased on the effective date

of the first adjustment of retired pay under subsection (b) after

the member or former member becomes entitled to retired pay

by the percent (adjusted to the nearest one-tenth of 1 percent)

equal to the difference between the percent by which—

‘‘(1) the price index for the base quarter of that year,

exceeds

‘‘(2) the price index for the calendar quarter immediately

before the calendar quarter during which the member became

entitled to retired pay.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply only to adjustments of retired and retainer pay effective

after the date of the enactment of this Act.

SEC. 633. SUSPENSION OF PAYMENT OF RETIRED PAY OF MEMBERS

WHO ARE ABSENT FROM THE UNITED STATES TO AVOID

PROSECUTION.

(a) DEVELOPMENT OF PROCEDURES FOR SUSPENSION.—The

Secretary of Defense shall develop uniform procedures under which

the Secretary of a military department may suspend the payment

of the retired pay of a member or former member of the Armed

Forces during periods in which the member willfully remains outside the United States to avoid criminal prosecution or civil liability.

The procedures shall address the types of criminal offenses and

civil proceedings for which the procedures may be used, including

the offenses specified in section 8312 of title 5, United States

Code, and the manner by which a member, upon the return of

the member to the United States, may obtain retired pay withheld

during the member’s absence.

(b) REPORT TO CONGRESS.—The Secretary of Defense shall submit to Congress a report describing the procedures developed under

subsection (a). The report shall include recommendations regarding

changes to existing provisions of law (including section 8313 of

title 5, United States Code) that the Secretary determines are

necessary to fully implement the procedures.

(c) RETIRED PAY DEFINED.—For purposes of this section, the

term ‘‘retired pay’’ means retired pay, retirement pay, retainer

pay, or equivalent pay, payable under a statute to a member or

former member of a uniformed service.

(d) EFFECTIVE DATE.—The uniform procedures required by subsection (a) shall be developed not later than 30 days after the

date of the enactment of this Act.

5 USC 8313 note.

Applicability.

10 USC 1401a

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2551

SEC. 634. NONSUBSTANTIVE RESTATEMENT OF SURVIVOR BENEFIT

PLAN STATUTE.

Subchapter II of chapter 73 of title 10, United States Code,

is amended to read as follows:

‘‘SUBCHAPTER II—SURVIVOR BENEFIT PLAN

‘‘Sec.

‘‘1447. Definitions.

‘‘1448. Application of Plan.

‘‘1449. Mental incompetency of member.

‘‘1450. Payment of annuity: beneficiaries.

‘‘1451. Amount of annuity.

‘‘1452. Reduction in retired pay.

‘‘1453. Recovery of amounts erroneously paid.

‘‘1454. Correction of administrative errors.

‘‘1455. Regulations.

‘‘§ 1447. Definitions

‘‘In this subchapter:

‘‘(1) PLAN.—The term ‘Plan’ means the Survivor Benefit

Plan established by this subchapter.

‘‘(2) STANDARD ANNUITY.—The term ‘standard annuity’

means an annuity provided by virtue of eligibility under section

1448(a)(1)(A) of this title.

‘‘(3) RESERVE-COMPONENT ANNUITY.—The term ‘reservecomponent annuity’ means an annuity provided by virtue of

eligibility under section 1448(a)(1)(B) of this title.

‘‘(4) RETIRED PAY.—The term ‘retired pay’ includes retainer

pay paid under section 6330 of this title.

‘‘(5) RESERVE-COMPONENT RETIRED PAY.—The term ‘reservecomponent retired pay’ means retired pay under chapter 1223

of this title (or under chapter 67 of this title as in effect

before the effective date of the Reserve Officer Personnel

Management Act).

‘‘(6) BASE AMOUNT.—The term ‘base amount’ means the

following:

‘‘(A) FULL AMOUNT UNDER STANDARD ANNUITY.—In the

case of a person who dies after becoming entitled to retired

pay, such term means the amount of monthly retired pay

(determined without regard to any reduction under section

1409(b)(2) of this title) to which the person—

‘‘(i) was entitled when he became eligible for that

pay; or

‘‘(ii) later became entitled by being advanced on

the retired list, performing active duty, or being transferred from the temporary disability retired list to the

permanent disability retired list.

‘‘(B) FULL AMOUNT UNDER RESERVE-COMPONENT

ANNUITY.—In the case of a person who would have become

eligible for reserve-component retired pay but for the fact

that he died before becoming 60 years of age, such term

means the amount of monthly retired pay for which the

person would have been eligible—

‘‘(i) if he had been 60 years of age on the date

of his death, for purposes of an annuity to become

effective on the day after his death in accordance with

a designation made under section 1448(e) of this title;

or
110 STAT. 2552 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(ii) upon becoming 60 years of age (if he had

lived to that age), for purposes of an annuity to become

effective on the 60th anniversary of his birth in accordance with a designation made under section 1448(e)

of this title.

‘‘(C) REDUCED AMOUNT.—Such term means any amount

less than the amount otherwise applicable under subparagraph (A) or (B) with respect to an annuity provided under

the Plan but which is not less than $300 and which is

designated by the person (with the concurrence of the person’s spouse, if required under section 1448(a)(3) of this

title) providing the annuity on or before—

‘‘(i) the first day for which he becomes eligible

for retired pay, in the case of a person providing a

standard annuity, or

‘‘(ii) the end of the 90-day period beginning on

the date on which he receives the notification required

by section 12731(d) of this title that he has completed

the years of service required for eligibility for reservecomponent retired pay, in the case of a person providing a reserve-component annuity.

‘‘(7) WIDOW.—The term ‘widow’ means the surviving wife

of a person who, if not married to the person at the time

he became eligible for retired pay—

‘‘(A) was married to him for at least one year immediately before his death; or

‘‘(B) is the mother of issue by that marriage.

‘‘(8) WIDOWER.—The term ‘widower’ means the surviving

husband of a person who, if not married to the person at

the time she became eligible for retired pay—

‘‘(A) was married to her for at least one year immediately before her death; or

‘‘(B) is the father of issue by that marriage.

‘‘(9) SURVIVING SPOUSE.—The term ‘surviving spouse’ means

a widow or widower.

‘‘(10) FORMER SPOUSE.—The term ‘former spouse’ means

the surviving former husband or wife of a person who is eligible

to participate in the Plan.

‘‘(11) DEPENDENT CHILD.—

‘‘(A) IN GENERAL.—The term ‘dependent child’ means

a person who—

‘‘(i) is unmarried;

‘‘(ii) is (I) under 18 years of age, (II) at least

18, but under 22, years of age and pursuing a fulltime course of study or training in a high school, trade

school, technical or vocational institute, junior college,

college, university, or comparable recognized educational institution, or (III) incapable of self support

because of a mental or physical incapacity existing

before the person’s eighteenth birthday or incurred

on or after that birthday, but before the person’s

twenty-second birthday, while pursuing such a fulltime course of study or training; and

‘‘(iii) is the child of a person to whom the Plan

applies, including (I) an adopted child, and (II) a stepchild, foster child, or recognized natural child who lived

with that person in a regular parent-child relationship.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2553

‘‘(B) SPECIAL RULES FOR COLLEGE STUDENTS.—For the

purpose of subparagraph (A), a child whose twenty-second

birthday occurs before July 1 or after August 31 of a

calendar year, and while regularly pursuing such a course

of study or training, is considered to have become 22 years

of age on the first day of July after that birthday. A

child who is a student is considered not to have ceased

to be a student during an interim between school years

if the interim is not more than 150 days and if the child

shows to the satisfaction of the Secretary of Defense that

the child has a bona fide intention of continuing to pursue

a course of study or training in the same or a different

school during the school semester (or other period into

which the school year is divided) immediately after the

interim.

‘‘(C) FOSTER CHILDREN.—A foster child, to qualify under

this paragraph as the dependent child of a person to whom

the Plan applies, must, at the time of the death of that

person, also reside with, and receive over one-half of his

support from, that person, and not be cared for under

a social agency contract. The temporary absence of a foster

child from the residence of that person, while a student

as described in this paragraph, shall not be considered

to affect the residence of such a foster child.

‘‘(12) COURT.—The term ‘court’ has the meaning given that

term by section 1408(a)(1) of this title.

‘‘(13) COURT ORDER.—

‘‘(A) IN GENERAL.—The term ‘court order’ means a

court’s final decree of divorce, dissolution, or annulment

or a court ordered, ratified, or approved property settlement

incident to such a decree (including a final decree modifying

the terms of a previously issued decree of divorce, dissolution, annulment, or legal separation, or of a court ordered,

ratified, or approved property settlement agreement

incident to such previously issued decree).

‘‘(B) FINAL DECREE.—The term ‘final decree’ means

a decree from which no appeal may be taken or from

which no appeal has been taken within the time allowed

for the taking of such appeals under the laws applicable

to such appeals, or a decree from which timely appeal

has been taken and such appeal has been finally decided

under the laws applicable to such appeals.

‘‘(C) REGULAR ON ITS FACE.—The term ‘regular on its

face’, when used in connection with a court order, means

a court order that meets the conditions prescribed in section

1408(b)(2) of this title.

‘‘§ 1448. Application of plan

‘‘(a) GENERAL RULES FOR PARTICIPATION IN THE PLAN.—

‘‘(1) NAME OF PLAN; ELIGIBLE PARTICIPANTS.—The program

established by this subchapter shall be known as the Survivor

Benefit Plan. The following persons are eligible to participate

in the Plan:

‘‘(A) Persons entitled to retired pay.

‘‘(B) Persons who would be eligible for reserve-component retired pay but for the fact that they are under

60 years of age.
110 STAT. 2554 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(2) PARTICIPANTS IN THE PLAN.—The Plan applies to the

following persons, who shall be participants in the Plan:

‘‘(A) STANDARD ANNUITY PARTICIPANTS.—A person who

is eligible to participate in the Plan under paragraph (1)(A)

and who is married or has a dependent child when he

becomes entitled to retired pay, unless he elects (with

his spouse’s concurrence, if required under paragraph (3))

not to participate in the Plan before the first day for

which he is eligible for that pay.

‘‘(B) RESERVE-COMPONENT ANNUITY PARTICIPANTS.—A

person who (i) is eligible to participate in the Plan under

paragraph (1)(B), (ii) is married or has a dependent child

when he is notified under section 12731(d) of this title

that he has completed the years of service required for

eligibility for reserve-component retired pay, and (iii) elects

to participate in the Plan (and makes a designation under

subsection (e)) before the end of the 90-day period beginning

on the date he receives such notification.

A person described in clauses (i) and (ii) of subparagraph (B)

who does not elect to participate in the Plan before the end

of the 90-day period referred to in that clause remains eligible,

upon reaching 60 years of age and otherwise becoming entitled

to retired pay, to participate in the Plan in accordance with

eligibility under paragraph (1)(A).

‘‘(3) ELECTIONS.—

‘‘(A) SPOUSAL CONSENT FOR CERTAIN ELECTIONS

RESPECTING STANDARD ANNUITY.—A married person who

is eligible to provide a standard annuity may not without

the concurrence of the person’s spouse elect—

‘‘(i) not to participate in the Plan;

‘‘(ii) to provide an annuity for the person’s spouse

at less than the maximum level; or

‘‘(iii) to provide an annuity for a dependent child

but not for the person’s spouse.

‘‘(B) SPOUSAL CONSENT FOR CERTAIN ELECTIONS

RESPECTING RESERVE-COMPONENT ANNUITY.—A married

person who elects to provide a reserve-component annuity

may not without the concurrence of the person’s spouse

elect—

‘‘(i) to provide an annuity for the person’s spouse

at less than the maximum level; or

‘‘(ii) to provide an annuity for a dependent child

but not for the person’s spouse.

‘‘(C) EXCEPTION WHEN SPOUSE UNAVAILABLE.—A person

may make an election described in subparagraph (A) or

(B) without the concurrence of the person’s spouse if the

person establishes to the satisfaction of the Secretary concerned—

‘‘(i) that the spouse’s whereabouts cannot be determined; or

‘‘(ii) that, due to exceptional circumstances, requiring the person to seek the spouse’s consent would

otherwise be inappropriate.

‘‘(D) CONSTRUCTION WITH FORMER SPOUSE ELECTION

PROVISIONS.—This paragraph does not affect any right or

obligation to elect to provide an annuity for a former spouse
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2555

(or for a former spouse and dependent child) under subsection (b)(2).

‘‘(E) NOTICE TO SPOUSE OF ELECTION TO PROVIDE

FORMER SPOUSE ANNUITY.—If a married person who is

eligible to provide a standard annuity elects to provide

an annuity for a former spouse (or for a former spouse

and dependent child) under subsection (b)(2), that person’s

spouse shall be notified of that election.

‘‘(4) IRREVOCABILITY OF ELECTIONS.—

‘‘(A) STANDARD ANNUITY.—An election under paragraph

(2)(A) not to participate in the Plan is irrevocable if not

revoked before the date on which the person first becomes

entitled to retired pay.

‘‘(B) RESERVE-COMPONENT ANNUITY.—An election under

paragraph (2)(B) to participate in the Plan is irrevocable

if not revoked before the end of the 90-day period referred

to in that paragraph.

‘‘(5) PARTICIPATION BY PERSON MARRYING AFTER RETIREMENT, ETC.—

‘‘(A) ELECTION TO PARTICIPATE IN PLAN.—A person who

is not married and has no dependent child upon becoming

eligible to participate in the Plan but who later marries

or acquires a dependent child may elect to participate

in the Plan.

‘‘(B) MANNER AND TIME OF ELECTION.—Such an election

must be written, signed by the person making the election,

and received by the Secretary concerned within one year

after the date on which that person marries or acquires

that dependent child.

‘‘(C) LIMITATION ON REVOCATION OF ELECTION.—Such

an election may not be revoked except in accordance with

subsection (b)(3).

‘‘(D) EFFECTIVE DATE OF ELECTION.—The election is

effective as of the first day of the first calendar month

following the month in which the election is received by

the Secretary concerned.

‘‘(E) DESIGNATION IF RCSBP ELECTION.—In the case of

a person providing a reserve-component annuity, such an

election shall include a designation under subsection (e).

‘‘(6) ELECTION OUT OF PLAN BY PERSON WITH SPOUSE

COVERAGE WHO REMARRIES.—

‘‘(A) GENERAL RULE.—A person—

‘‘(i) who is a participant in the Plan and is providing coverage under the Plan for a spouse (or a spouse

and child);

‘‘(ii) who does not have an eligible spouse beneficiary under the Plan; and

‘‘(iii) who remarries,

may elect not to provide coverage under the Plan for the

person’s spouse.

‘‘(B) EFFECT OF ELECTION ON RETIRED PAY.—If such

an election is made, reductions in the retired pay of that

person under section 1452 of this title shall not be made.

‘‘(C) TERMS AND CONDITIONS OF ELECTION.—An election

under this paragraph—

‘‘(i) is irrevocable;
110 STAT. 2556 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(ii) shall be made within one year after the person’s remarriage; and

‘‘(iii) shall be made in such form and manner as

may be prescribed in regulations under section 1455

of this title.

‘‘(D) NOTICE TO SPOUSE.—If a person makes an election

under this paragraph—

‘‘(i) not to participate in the Plan;

‘‘(ii) to provide an annuity for the person’s spouse

at less than the maximum level; or

‘‘(iii) to provide an annuity for a dependent child

but not for the person’s spouse,

the person’s spouse shall be notified of that election.

‘‘(E) CONSTRUCTION WITH FORMER SPOUSE ELECTION

PROVISIONS.—This paragraph does not affect any right or

obligation to elect to provide an annuity to a former spouse

under subsection (b).

‘‘(b) INSURABLE INTEREST AND FORMER SPOUSE COVERAGE.—

‘‘(1) COVERAGE FOR PERSON WITH INSURABLE INTEREST.—

‘‘(A) GENERAL RULE.—A person who is not married

and does not have a dependent child upon becoming eligible

to participate in the Plan may elect to provide an annuity

under the Plan to a natural person with an insurable

interest in that person. In the case of a person providing

a reserve-component annuity, such an election shall include

a designation under subsection (e).

‘‘(B) TERMINATION OF COVERAGE.—An election under

subparagraph (A) for a beneficiary who is not the former

spouse of the person providing the annuity may be terminated. Any such termination shall be made by a participant

by the submission to the Secretary concerned of a request

to discontinue participation in the Plan, and such participation in the Plan shall be discontinued effective on the

first day of the first month following the month in which

the request is received by the Secretary concerned. Effective

on such date, the Secretary concerned shall discontinue

the reduction being made in such person’s retired pay

on account of participation in the Plan or, in the case

of a person who has been required to make deposits in

the Treasury on account of participation in the Plan, such

person may discontinue making such deposits effective on

such date.

‘‘(C) FORM FOR DISCONTINUATION.—A request under

subparagraph (B) to discontinue participation in the Plan

shall be in such form and shall contain such information

as may be required under regulations prescribed by the

Secretary of Defense.

‘‘(D) WITHDRAWAL OF REQUEST FOR DISCONTINUATION.—

The Secretary concerned shall furnish promptly to each

person who submits a request under subparagraph (B)

to discontinue participation in the Plan a written statement

of the advantages and disadvantages of participating in

the Plan and the possible disadvantages of discontinuing

participation. A person may withdraw the request to discontinue participation if withdrawn within 30 days after

having been submitted to the Secretary concerned.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2557

‘‘(E) CONSEQUENCES OF DISCONTINUATION.—Once

participation is discontinued, benefits may not be paid in

conjunction with the earlier participation in the Plan and

premiums paid may not be refunded. Participation in the

Plan may not later be resumed except through a qualified

election under paragraph (5) of subsection (a).

‘‘(2) FORMER SPOUSE COVERAGE UPON BECOMING A PARTICIPANT IN THE PLAN.—

‘‘(A) GENERAL RULE.—A person who has a former

spouse upon becoming eligible to participate in the Plan

may elect to provide an annuity to that former spouse.

‘‘(B) EFFECT OF FORMER SPOUSE ELECTION ON SPOUSE

OR DEPENDENT CHILD.—In the case of a person with a

spouse or a dependent child, such an election prevents

payment of an annuity to that spouse or child (other than

a child who is a beneficiary under an election under paragraph (4)), including payment under subsection (d).

‘‘(C) DESIGNATION IF MORE THAN ONE FORMER

SPOUSE.—If there is more than one former spouse, the

person shall designate which former spouse is to be provided the annuity.

‘‘(D) DESIGNATION IF RCSBP ELECTION.—In the case of

a person providing a reserve-component annuity, such an

election shall include a designation under subsection (e).

‘‘(3) FORMER SPOUSE COVERAGE BY PERSONS ALREADY

PARTICIPATING IN PLAN.—

‘‘(A) ELECTION OF COVERAGE.—

‘‘(i) AUTHORITY FOR ELECTION.—A person—

‘‘(I) who is a participant in the Plan and is

providing coverage for a spouse or a spouse and

child (even though there is no beneficiary currently

eligible for such coverage), and

‘‘(II) who has a former spouse who was not

that person’s former spouse when that person

became eligible to participate in the Plan,

may (subject to subparagraph (B)) elect to provide an

annuity to that former spouse.

‘‘(ii) TERMINATION OF PREVIOUS COVERAGE.—Any

such election terminates any previous coverage under

the Plan.

‘‘(iii) MANNER AND TIME OF ELECTION.—Any such

election must be written, signed by the person making

the election, and received by the Secretary concerned

within one year after the date of the decree of divorce,

dissolution, or annulment.

‘‘(B) LIMITATION ON ELECTION.—A person may not

make an election under subparagraph (A) to provide an

annuity to a former spouse who that person married after

becoming eligible for retired pay unless—

‘‘(i) the person was married to that former spouse

for at least one year, or

‘‘(ii) that former spouse is the parent of issue by

that marriage.

‘‘(C) IRREVOCABILITY, EFFECTIVE DATE, ETC.—An election under this paragraph may not be revoked except in

accordance with section 1450(f) of this title. Such an election is effective as of the first day of the first calendar
110 STAT. 2558 PUBLIC LAW 104–201—SEPT. 23, 1996

month following the month in which it is received by the

Secretary concerned. This paragraph does not provide the

authority to change a designation previously made under

subsection (e).

‘‘(D) NOTICE TO SPOUSE.—If a person who is married

makes an election to provide an annuity to a former spouse

under this paragraph, that person’s spouse shall be notified

of the election.

‘‘(4) FORMER SPOUSE AND CHILD COVERAGE.—A person who

elects to provide an annuity for a former spouse under paragraph (2) or (3) may, at the time of the election, elect to

provide coverage under that annuity for both the former spouse

and a dependent child, if the child resulted from the person’s

marriage to that former spouse.

‘‘(5) DISCLOSURE OF WHETHER ELECTION OF FORMER SPOUSE

COVERAGE IS REQUIRED.—A person who elects to provide an

annuity to a former spouse under paragraph (2) or (3) shall,

at the time of making the election, provide the Secretary concerned with a written statement (in a form to be prescribed

by that Secretary and signed by such person and the former

spouse) setting forth—

‘‘(A) whether the election is being made pursuant to

the requirements of a court order; or

‘‘(B) whether the election is being made pursuant to

a written agreement previously entered into voluntarily

by such person as a part of, or incident to, a proceeding

of divorce, dissolution, or annulment and (if so) whether

such voluntary written agreement has been incorporated

in, or ratified or approved by, a court order.

‘‘(c) PERSONS ON TEMPORARY DISABILITY RETIRED LIST.—The

application of the Plan to a person whose name is on the temporary

disability retired list terminates when his name is removed from

that list and he is no longer entitled to disability retired pay.

‘‘(d) COVERAGE FOR SURVIVORS OF RETIREMENT-ELIGIBLE

MEMBERS WHO DIE ON ACTIVE DUTY.—

‘‘(1) SURVIVING SPOUSE ANNUITY.—The Secretary concerned

shall pay an annuity under this subchapter to the surviving

spouse of a member who dies on active duty after—

‘‘(A) becoming eligible to receive retired pay;

‘‘(B) qualifying for retired pay except that he has not

applied for or been granted that pay; or

‘‘(C) completing 20 years of active service but

before he is eligible to retire as a commissioned officer

because he has not completed 10 years of active commissioned service.

‘‘(2) DEPENDENT CHILD ANNUITY.—The Secretary concerned

shall pay an annuity under this subchapter to the dependent

child of a member described in paragraph (1) if there is no

surviving spouse or if the member’s surviving spouse subsequently dies.

‘‘(3) MANDATORY FORMER SPOUSE ANNUITY.—If a member

described in paragraph (1) is required under a court order

or spousal agreement to provide an annuity to a former spouse

upon becoming eligible to be a participant in the Plan or has

made an election under subsection (b) to provide an annuity

to a former spouse, the Secretary—
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2559

‘‘(A) may not pay an annuity under paragraph (1)

or (2); but

‘‘(B) shall pay an annuity to that former spouse as

if the member had been a participant in the Plan and

had made an election under subsection (b) to provide an

annuity to the former spouse, or in accordance with that

election, as the case may be, if the Secretary receives

a written request from the former spouse concerned that

the election be deemed to have been made in the same

manner as provided in section 1450(f)(3) of this title.

‘‘(4) PRIORITY.—An annuity that may be provided under

this subsection shall be provided in preference to an annuity

that may be provided under any other provision of this subchapter on account of service of the same member.

‘‘(5) COMPUTATION.—The amount of an annuity under this

subsection is computed under section 1451(c) of this title.

‘‘(e) DESIGNATION FOR COMMENCEMENT OF RESERVE-COMPONENT ANNUITY.—In any case in which a person electing to participate in the Plan is required to make a designation under this

subsection, the person making such election shall designate

whether, in the event he dies before becoming 60 years of age,

the annuity provided shall become effective on—

‘‘(1) the day after the date of his death; or

‘‘(2) the 60th anniversary of his birth.

‘‘(f) COVERAGE OF SURVIVORS OF PERSONS DYING WHEN

ELIGIBLE TO ELECT RESERVE-COMPONENT ANNUITY.—

‘‘(1) SURVIVING SPOUSE ANNUITY.—The Secretary concerned

shall pay an annuity under this subchapter to the surviving

spouse of a person who is eligible to provide a reserve-component annuity and who dies—

‘‘(A) before being notified under section 12731(d) of

this title that he has completed the years of service required

for eligibility for reserve-component retired pay; or

‘‘(B) during the 90-day period beginning on the date

he receives notification under section 12731(d) of this title

that he has completed the years of service required for

eligibility for reserve-component retired pay if he had not

made an election under subsection (a)(2)(B) to participate

in the Plan.

‘‘(2) DEPENDENT CHILD ANNUITY.—The Secretary concerned

shall pay an annuity under this subchapter to the dependent

child of a person described in paragraph (1) if there is no

surviving spouse or if the person’s surviving spouse subsequently dies.

‘‘(3) MANDATORY FORMER SPOUSE ANNUITY.—If a person

described in paragraph (1) is required under a court order

or spousal agreement to provide an annuity to a former spouse

upon becoming eligible to be a participant in the Plan or has

made an election under subsection (b) to provide an annuity

to a former spouse, the Secretary—

‘‘(A) may not pay an annuity under paragraph (1)

or (2); but

‘‘(B) shall pay an annuity to that former spouse as

if the person had been a participant in the Plan and had

made an election under subsection (b) to provide an annuity

to the former spouse, or in accordance with that election,

as the case may be, if the Secretary receives a written
110 STAT. 2560 PUBLIC LAW 104–201—SEPT. 23, 1996

request from the former spouse concerned that the election

be deemed to have been made in the same manner as

provided in section 1450(f)(3) of this title.

‘‘(4) COMPUTATION.—The amount of an annuity under this

subsection is computed under section 1451(c) of this title.

‘‘(g) ELECTION TO INCREASE COVERAGE UPON REMARRIAGE.—

‘‘(1) ELECTION.—A person—

‘‘(A) who is a participant in the Plan and is providing

coverage under subsection (a) for a spouse or a spouse

and child, but at less than the maximum level; and

‘‘(B) who remarries,

may elect, within one year of such remarriage, to increase

the level of coverage provided under the Plan to a level not

in excess of the current retired pay of that person.

‘‘(2) PAYMENT REQUIRED.—Such an election shall be contingent on the person paying to the United States the amount

determined under paragraph (3) plus interest on such amount

at a rate determined under regulations prescribed by the Secretary of Defense.

‘‘(3) AMOUNT TO BE PAID.—The amount referred to in paragraph (2) is the amount equal to the difference between—

‘‘(A) the amount that would have been withheld from

such person’s retired pay under section 1452 of this title

if the higher level of coverage had been in effect from

the time the person became a participant in the Plan;

and

‘‘(B) the amount of such person’s retired pay actually

withheld.

‘‘(4) MANNER OF MAKING ELECTION.—An election under

paragraph (1) shall be made in such manner as the Secretary

shall prescribe and shall become effective upon receipt of the

payment required by paragraph (2).

‘‘(5) DISPOSITION OF PAYMENTS.—A payment received under

this subsection by the Secretary of Defense shall be deposited

into the Department of Defense Military Retirement Fund.

Any other payment received under this subsection shall be

deposited in the Treasury as miscellaneous receipts.

‘‘§ 1449. Mental incompetency of member

‘‘(a) ELECTION BY SECRETARY CONCERNED ON BEHALF OF

MENTALLY INCOMPETENT MEMBER.—If a person to whom section

1448 of this title applies is determined to be mentally incompetent

by medical officers of the armed force concerned or of the Department of Veterans Affairs, or by a court of competent jurisdiction,

an election described in subsection (a)(2) or (b) of section 1448

of this title may be made on behalf of that person by the Secretary

concerned.

‘‘(b) REVOCATION OF ELECTION BY MEMBER.—

‘‘(1) AUTHORITY UPON SUBSEQUENT DETERMINATION OF

MENTAL COMPETENCE.—If a person for whom the Secretary

has made an election under subsection (a) is later determined

to be mentally competent by an authority named in that subsection, that person may, within 180 days after that determination, revoke that election.

‘‘(2) DEDUCTIONS FROM RETIRED PAY NOT TO BE

REFUNDED.—Any deduction made from retired pay by reason

of such an election may not be refunded.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2561

‘‘§ 1450. Payment of annuity: beneficiaries

‘‘(a) IN GENERAL.—Effective as of the first day after the death

of a person to whom section 1448 of this title applies (or on such

other day as that person may provide under subsection (j)), a

monthly annuity under section 1451 of this title shall be paid

to the person’s beneficiaries under the Plan, as follows:

‘‘(1) SURVIVING SPOUSE OR FORMER SPOUSE.—The eligible

surviving spouse or the eligible former spouse.

‘‘(2) SURVIVING CHILDREN.—The surviving dependent children in equal shares, if the eligible surviving spouse or the

eligible former spouse is dead, dies, or otherwise becomes ineligible under this section.

‘‘(3) DEPENDENT CHILDREN.—The dependent children in

equal shares if the person to whom section 1448 of this title

applies (with the concurrence of the person’s spouse, if required

under section 1448(a)(3) of this title) elected to provide an

annuity for dependent children but not for the spouse or former

spouse.

‘‘(4) NATURAL PERSON DESIGNATED UNDER ‘INSURABLE

INTEREST’ COVERAGE.—The natural person designated under

section 1448(b)(1) of this title, unless the election to provide

an annuity to the natural person has been changed as provided

in subsection (f).

‘‘(b) TERMINATION OF ANNUITY FOR DEATH, REMARRIAGE BEFORE

AGE 55, ETC.— ‘‘(1) GENERAL RULE.—An annuity payable to the beneficiary

terminates effective as of the first day of the month in which

eligibility is lost.

‘‘(2) TERMINATION OF SPOUSE ANNUITY UPON DEATH OR

REMARRIAGE BEFORE AGE 55.—An annuity for a surviving spouse

or former spouse shall be paid to the surviving spouse or

former spouse while the surviving spouse or former spouse

is living or, if the surviving spouse or former spouse remarries

before reaching age 55, until the surviving spouse or former

spouse remarries.

‘‘(3) EFFECT OF TERMINATION OF SUBSEQUENT MARRIAGE

BEFORE AGE 55.—If the surviving spouse or former spouse

remarries before reaching age 55 and that marriage is terminated by death, annulment, or divorce, payment of the annuity

shall be resumed effective as of the first day of the month

in which the marriage is so terminated. However, if the surviving spouse or former spouse is also entitled to an annuity

under the Plan based upon the marriage so terminated, the

surviving spouse or former spouse may not receive both annuities but must elect which to receive.

‘‘(c) OFFSET FOR AMOUNT OF DEPENDENCY AND INDEMNITY

COMPENSATION.— ‘‘(1) REQUIRED OFFSET.—If, upon the death of a person

to whom section 1448 of this title applies, the surviving spouse

or former spouse of that person is also entitled to dependency

and indemnity compensation under section 1311(a) of title 38,

the surviving spouse or former spouse may be paid an annuity

under this section, but only in the amount that the annuity

otherwise payable under this section would exceed that compensation.

‘‘(2) EFFECTIVE DATE OF OFFSET.—A reduction in an annuity

under this section required by paragraph (1) shall be effective

Effective date.
110 STAT. 2562 PUBLIC LAW 104–201—SEPT. 23, 1996

on the date of the commencement of the period of payment

of such dependency and indemnity compensation under title

38.

‘‘(d) LIMITATION ON PAYMENT OF ANNUITIES WHEN COVERAGE

UNDER CIVIL SERVICE RETIREMENT ELECTED.—If, upon the death

of a person to whom section 1448 of this title applies, that person

had in effect a waiver of that person’s retired pay for the purposes

of subchapter III of chapter 83 of title 5, an annuity under this

section shall not be payable unless, in accordance with section

8339(j) of title 5, that person notified the Office of Personnel Management that he did not desire any spouse surviving him to receive

an annuity under section 8341(b) of that title.

‘‘(e) REFUND OF AMOUNTS DEDUCTED FROM RETIRED PAY WHEN

DIC OFFSET IS APPLICABLE.—

‘‘(1) FULL REFUND WHEN DIC GREATER THAN SBP ANNUITY.—

If an annuity under this section is not payable because of

subsection (c), any amount deducted from the retired pay of

the deceased under section 1452 of this title shall be refunded

to the surviving spouse or former spouse.

‘‘(2) PARTIAL REFUND WHEN SBP ANNUITY REDUCED BY DIC.—

If, because of subsection (c), the annuity payable is less than

the amount established under section 1451 of this title, the

annuity payable shall be recalculated under that section. The

amount of the reduction in the retired pay required to provide

that recalculated annuity shall be computed under section 1452

of this title, and the difference between the amount deducted

before the computation of that recalculated annuity and the

amount that would have been deducted on the basis of that

recalculated annuity shall be refunded to the surviving spouse

or former spouse.

‘‘(f) CHANGE IN ELECTION OF INSURABLE INTEREST OR FORMER

SPOUSE BENEFICIARY.—

‘‘(1) AUTHORIZED CHANGES.—

‘‘(A) ELECTION IN FAVOR OF SPOUSE OR CHILD.—A person who elects to provide an annuity to a person designated

by him under section 1448(b) of this title may, subject

to paragraph (2), change that election and provide an annuity to his spouse or dependent child.

‘‘(B) NOTICE.—The Secretary concerned shall notify the

former spouse or other natural person previously designated under section 1448(b) of this title of any change

of election under subparagraph (A).

‘‘(C) PROCEDURES, EFFECTIVE DATE, ETC.—Any such

change of election is subject to the same rules with respect

to execution, revocation, and effectiveness as are set forth

in section 1448(a)(5) of this title (without regard to the

eligibility of the person making the change of election to

make such an election under that section).

‘‘(2) LIMITATION ON CHANGE IN BENEFICIARY WHEN FORMER

SPOUSE COVERAGE IN EFFECT.—A person who, incident to a

proceeding of divorce, dissolution, or annulment, is required

by a court order to elect under section 1448(b) of this title

to provide an annuity to a former spouse (or to both a former

spouse and child), or who enters into a written agreement

(whether voluntary or required by a court order) to make such

an election, and who makes an election pursuant to such order

or agreement, may not change that election under paragraph
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2563

(1) unless, of the following requirements, whichever are

applicable in a particular case are satisfied:

‘‘(A) In a case in which the election is required by

a court order, or in which an agreement to make the

election has been incorporated in or ratified or approved

by a court order, the person—

‘‘(i) furnishes to the Secretary concerned a certified

copy of a court order which is regular on its face

and which modifies the provisions of all previous court

orders relating to such election, or the agreement to

make such election, so as to permit the person to

change the election; and

‘‘(ii) certifies to the Secretary concerned that the

court order is valid and in effect.

‘‘(B) In a case of a written agreement that has not

been incorporated in or ratified or approved by a court

order, the person—

‘‘(i) furnishes to the Secretary concerned a statement, in such form as the Secretary concerned may

prescribe, signed by the former spouse and evidencing

the former spouse’s agreement to a change in the election under paragraph (1); and

‘‘(ii) certifies to the Secretary concerned that the

statement is current and in effect.

‘‘(3) REQUIRED FORMER SPOUSE ELECTION TO BE DEEMED

TO HAVE BEEN MADE.—

‘‘(A) DEEMED ELECTION UPON REQUEST BY FORMER

SPOUSE.—If a person described in paragraph (2) or (3)

of section 1448(b) of this title is required (as described

in subparagraph (B)) to elect under section 1448(b) of this

title to provide an annuity to a former spouse and such

person then fails or refuses to make such an election,

such person shall be deemed to have made such an election

if the Secretary concerned receives the following:

‘‘(i) REQUEST FROM FORMER SPOUSE.—A written

request, in such manner as the Secretary shall prescribe, from the former spouse concerned requesting

that such an election be deemed to have been made.

‘‘(ii) COPY OF COURT ORDER OR OTHER OFFICIAL

STATEMENT.—Either—

‘‘(I) a copy of the court order, regular on its

face, which requires such election or incorporates,

ratifies, or approves the written agreement of such

person; or

‘‘(II) a statement from the clerk of the court

(or other appropriate official) that such agreement

has been filed with the court in accordance with

applicable State law.

‘‘(B) PERSONS REQUIRED TO MAKE ELECTION.—A person

shall be considered for purposes of subparagraph (A) to

be required to elect under section 1448(b) of this title

to provide an annuity to a former spouse if—

‘‘(i) the person enters, incident to a proceeding

of divorce, dissolution, or annulment, into a written

agreement to make such an election and the agreement

(I) has been incorporated in or ratified or approved

by a court order, or (II) has been filed with the court
110 STAT. 2564 PUBLIC LAW 104–201—SEPT. 23, 1996

of appropriate jurisdiction in accordance with applicable State law; or

‘‘(ii) the person is required by a court order to

make such an election.

‘‘(C) TIME LIMIT FOR REQUEST BY FORMER SPOUSE.—

An election may not be deemed to have been made under

subparagraph (A) in the case of any person unless the

Secretary concerned receives a request from the former

spouse of the person within one year of the date of the

court order or filing involved.

‘‘(D) EFFECTIVE DATE OF DEEMED ELECTION.—An election deemed to have been made under subparagraph (A)

shall become effective on the first day of the first month

which begins after the date of the court order or filing

involved.

‘‘(4) FORMER SPOUSE COVERAGE MAY BE REQUIRED BY COURT

ORDER.—A court order may require a person to elect (or to

enter into an agreement to elect) under section 1448(b) of

this title to provide an annuity to a former spouse (or to

both a former spouse and child).

‘‘(g) LIMITATION ON CHANGING OR REVOKING ELECTIONS.—

‘‘(1) IN GENERAL.—An election under this section may not

be changed or revoked.

‘‘(2) EXCEPTIONS.—Paragraph (1) does not apply to—

‘‘(A) a revocation of an election under section 1449(b)

of this title; or

‘‘(B) a change in an election under subsection (f).

‘‘(h) TREATMENT OF ANNUITIES UNDER OTHER LAWS.—Except

as provided in section 1451 of this title, an annuity under this

section is in addition to any other payment to which a person

is entitled under any other provision of law. Such annuity shall

be considered as income under laws administered by the Secretary

of Veterans Affairs.

‘‘(i) ANNUITIES EXEMPT FROM CERTAIN LEGAL PROCESS.—Except

as provided in subsection (l)(3)(B), an annuity under this section

is not assignable or subject to execution, levy, attachment, garnishment, or other legal process.

‘‘(j) EFFECTIVE DATE OF RESERVE-COMPONENT ANNUITIES.—

‘‘(1) PERSONS MAKING SECTION 1448(e) DESIGNATION.—An

annuity elected by a person providing a reserve-component

annuity shall be effective in accordance with the designation

made by such person under section 1448(e) of this title.

‘‘(2) PERSONS DYING BEFORE MAKING SECTION 1448(e)

DESIGNATION.—An annuity payable under section 1448(f) of

this title shall be effective on the day after the date of the

death of the person upon whose service the right to the annuity

is based.

‘‘(k) ADJUSTMENT OF SPOUSE OR FORMER SPOUSE ANNUITY UPON

LOSS OF DEPENDENCY AND INDEMNITY COMPENSATION.—

‘‘(1) READJUSTMENT IF BENEFICIARY 55 YEARS OF AGE OR

MORE.—If a surviving spouse or former spouse whose annuity

has been adjusted under subsection (c) subsequently loses

entitlement to dependency and indemnity compensation under

section 1311(a) of title 38 because of the remarriage of the

surviving spouse, or former spouse, and if at the time of such

remarriage the surviving spouse or former spouse is 55 years

of age or more, the amount of the annuity of the surviving
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2565

spouse or former spouse shall be readjusted, effective on the

effective date of such loss of dependency and indemnity compensation, to the amount of the annuity which would be in

effect with respect to the surviving spouse or former spouse

if the adjustment under subsection (c) had never been made.

‘‘(2) REPAYMENT OF AMOUNTS PREVIOUSLY REFUNDED.—

‘‘(A) GENERAL RULE.—A surviving spouse or former

spouse whose annuity is readjusted under paragraph (1)

shall repay any amount refunded under subsection (e) by

reason of the adjustment under subsection (c).

‘‘(B) INTEREST REQUIRED IF REPAYMENT NOT A LUMP

SUM.—If the repayment is not made in a lump sum, the

surviving spouse or former spouse shall pay interest on

the amount to be repaid. Such interest shall commence

on the date on which the first such payment is due and

shall be applied over the period during which any part

of the repayment remains to be paid.

‘‘(C) MANNER OF REPAYMENT; RATE OF INTEREST.—The

manner in which such repayment shall be made, and the

rate of any such interest, shall be prescribed in regulations

under section 1455 of this title.

‘‘(D) DEPOSIT OF AMOUNTS REPAID.—An amount repaid

under this paragraph (including any such interest) received

by the Secretary of Defense shall be deposited into the

Department of Defense Military Retirement Fund. Any

other amount repaid under this paragraph shall be deposited into the Treasury as miscellaneous receipts.

‘‘(l) PARTICIPANTS IN THE PLAN WHO ARE MISSING.—

‘‘(1) AUTHORITY TO PRESUME DEATH OF MISSING

PARTICIPANT.—

‘‘(A) IN GENERAL.—Upon application of the beneficiary

of a participant in the Plan who is missing, the Secretary

concerned may determine for purposes of this subchapter

that the participant is presumed dead.

‘‘(B) PARTICIPANT WHO IS MISSING.—A participant in

the Plan is considered to be missing for purposes of this

subsection if—

‘‘(i) the retired pay of the participant has been

suspended on the basis that the participant is missing;

or

‘‘(ii) in the case of a participant in the Plan who

would be eligible for reserve-component retired pay

but for the fact that he is under 60 years of age,

his retired pay, if he were entitled to retired pay,

would be suspended on the basis that he is missing.

‘‘(C) REQUIREMENTS APPLICABLE TO PRESUMPTION OF

DEATH.—Any such determination shall be made in accordance with regulations prescribed under section 1455 of

this title. The Secretary concerned may not make a determination for purposes of this subchapter that a participant

who is missing is presumed dead unless the Secretary

finds that—

‘‘(i) the participant has been missing for at least

30 days; and

‘‘(ii) the circumstances under which the participant

is missing would lead a reasonably prudent person

to conclude that the participant is dead.
110 STAT. 2566 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(2) COMMENCEMENT OF ANNUITY.—Upon a determination

under paragraph (1) with respect to a participant in the Plan,

an annuity otherwise payable under this subchapter shall be

paid as if the participant died on the date as of which the

retired pay of the participant was suspended.

‘‘(3) EFFECT OF PERSON NOT BEING DEAD.—

‘‘(A) TERMINATION OF ANNUITY.—If, after a determination under paragraph (1), the Secretary concerned determines that the participant is alive—

‘‘(i) any annuity being paid under this subchapter

by reason of this subsection shall be terminated; and

‘‘(ii) the total amount of any annuity payments

made by reason of this subsection shall constitute a

debt to the United States.

‘‘(B) COLLECTION FROM PARTICIPANT OF ANNUITY

AMOUNTS ERRONEOUSLY PAID.—A debt under subparagraph

(A)(ii) may be collected or offset—

‘‘(i) from any retired pay otherwise payable to the

participant;

‘‘(ii) if the participant is entitled to compensation

under chapter 11 of title 38, from that compensation; or

‘‘(iii) if the participant is entitled to any other

payment from the United States, from that payment.

‘‘(C) COLLECTION FROM BENEFICIARY.—If the participant dies before the full recovery of the amount of annuity

payments described in subparagraph (A)(ii) has been made

by the United States, the remaining amount of such annuity payments may be collected from the participant’s beneficiary under the Plan if that beneficiary was the recipient

of the annuity payments made by reason of this subsection.

‘‘§ 1451. Amount of annuity

‘‘(a) COMPUTATION OF ANNUITY FOR A SPOUSE, FORMER SPOUSE,

OR CHILD.—

‘‘(1) STANDARD ANNUITY.—In the case of a standard annuity

provided to a beneficiary under section 1450(a) of this title

(other than under section 1450(a)(4)), the monthly annuity payable to the beneficiary shall be determined as follows:

‘‘(A) BENEFICIARY UNDER 62 YEARS OF AGE.—If the beneficiary is under 62 years of age or is a dependent child

when becoming entitled to the annuity, the monthly annuity shall be the amount equal to 55 percent of the base

amount.

‘‘(B) BENEFICIARY 62 YEARS OF AGE OR OLDER.—

‘‘(i) GENERAL RULE.—If the beneficiary (other than

a dependent child) is 62 years of age or older when

becoming entitled to the annuity, the monthly annuity

shall be the amount equal to 35 percent of the base

amount.

‘‘(ii) RULE IF BENEFICIARY ELIGIBLE FOR SOCIAL

SECURITY OFFSET COMPUTATION.—If the beneficiary is

eligible to have the annuity computed under subsection

(e) and if, at the time the beneficiary becomes entitled

to the annuity, computation of the annuity under that

subsection is more favorable to the beneficiary than

computation under clause (i), the annuity shall be
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2567

computed under that subsection rather than under

clause (i).

‘‘(2) RESERVE-COMPONENT ANNUITY—In the case of a

reserve-component annuity provided to a beneficiary under section 1450(a) of this title (other than under section 1450(a)(4)),

the monthly annuity payable to the beneficiary shall be determined as follows:

‘‘(A) BENEFICIARY UNDER 62 YEARS OF AGE.—If the beneficiary is under 62 years of age or is a dependent child

when becoming entitled to the annuity, the monthly annuity shall be the amount equal to a percentage of the base

amount that—

‘‘(i) is less than 55 percent; and

‘‘(ii) is determined under subsection (f).

‘‘(B) BENEFICIARY 62 YEARS OF AGE OR OLDER.—

‘‘(i) GENERAL RULE.—If the beneficiary (other than

a dependent child) is 62 years of age or older when

becoming entitled to the annuity, the monthly annuity

shall be the amount equal to a percentage of the base

amount that—

‘‘(I) is less than 35 percent; and

‘‘(II) is determined under subsection (f).

‘‘(ii) RULE IF BENEFICIARY ELIGIBLE FOR SOCIAL

SECURITY OFFSET COMPUTATION.—If the beneficiary is

eligible to have the annuity computed under subsection

(e) and if, at the time the beneficiary becomes entitled

to the annuity, computation of the annuity under that

subsection is more favorable to the beneficiary than

computation under clause (i), the annuity shall be

computed under that subsection rather than under

clause (i).

‘‘(b) INSURABLE INTEREST BENEFICIARY.—

‘‘(1) STANDARD ANNUITY.—In the case of a standard annuity

provided to a beneficiary under section 1450(a)(4) of this title,

the monthly annuity payable to the beneficiary shall be the

amount equal to 55 percent of the retired pay of the person

who elected to provide the annuity after the reduction in that

pay in accordance with section 1452(c) of this title.

‘‘(2) RESERVE-COMPONENT ANNUITY.—In the case of a

reserve-component annuity provided to a beneficiary under section 1450(a)(4) of this title, the monthly annuity payable to

the beneficiary shall be the amount equal to a percentage

of the retired pay of the person who elected to provide the

annuity after the reduction in such pay in accordance with

section 1452(c) of this title that—

‘‘(A) is less than 55 percent; and

‘‘(B) is determined under subsection (f).

‘‘(3) COMPUTATION OF RESERVE-COMPONENT ANNUITY WHEN

PARTICIPANT DIES BEFORE AGE 60.—For the purposes of paragraph (2), a person—

‘‘(A) who provides an annuity that is determined in

accordance with that paragraph;

‘‘(B) who dies before becoming 60 years of age; and

‘‘(C) who at the time of death is otherwise entitled

to retired pay,

shall be considered to have been entitled to retired pay at

the time of death. The retired pay of such person for the
110 STAT. 2568 PUBLIC LAW 104–201—SEPT. 23, 1996

purposes of such paragraph shall be computed on the basis

of the rates of basic pay in effect on the date on which the

annuity provided by such person is to become effective in

accordance with the designation of such person under section

1448(e) of this title.

‘‘(c) ANNUITIES FOR SURVIVORS OF CERTAIN PERSONS DYING

DURING A PERIOD OF SPECIAL ELIGIBILITY FOR SBP.—

‘‘(1) IN GENERAL.—In the case of an annuity provided under

section 1448(d) or 1448(f) of this title, the amount of the annuity

shall be determined as follows:

‘‘(A) BENEFICIARY UNDER 62 YEARS OF AGE.—If the person receiving the annuity is under 62 years of age or

is a dependent child when the member or former member

dies, the monthly annuity shall be the amount equal to

55 percent of the retired pay to which the member or

former member would have been entitled if the member

or former member had been entitled to that pay based

upon his years of active service when he died.

‘‘(B) BENEFICIARY 62 YEARS OF AGE OR OLDER.—

‘‘(i) GENERAL RULE.—If the person receiving the

annuity (other than a dependent child) is 62 years

of age or older when the member or former member

dies, the monthly annuity shall be the amount equal

to 35 percent of the retired pay to which the member

or former member would have been entitled if the

member or former member had been entitled to that

pay based upon his years of active service when he

died.

‘‘(ii) RULE IF BENEFICIARY ELIGIBLE FOR SOCIAL

SECURITY OFFSET COMPUTATION.—If the beneficiary is

eligible to have the annuity computed under subsection

(e) and if, at the time the beneficiary becomes entitled

to the annuity, computation of the annuity under that

subsection is more favorable to the beneficiary than

computation under clause (i), the annuity shall be computed under that subsection rather than under clause

(i).

‘‘(2) DIC OFFSET.—An annuity computed under paragraph

(1) that is paid to a surviving spouse shall be reduced by

the amount of dependency and indemnity compensation to

which the surviving spouse is entitled under section 1311(a)

of title 38. Any such reduction shall be effective on the date

of the commencement of the period of payment of such compensation under title 38.

‘‘(3) SERVICEMEMBERS NOT YET GRANTED RETIRED PAY.—

In the case of an annuity provided by reason of the service

of a member described in section 1448(d)(1)(B) or 1448(d)(1)(C)

of this title who first became a member of a uniformed service

before September 8, 1980, the retired pay to which the member

would have been entitled when he died shall be determined

for purposes of paragraph (1) based upon the rate of basic

pay in effect at the time of death for the grade in which

the member was serving at the time of death, unless (as determined by the Secretary concerned) the member would have

been entitled to be retired in a higher grade.

‘‘(4) RATE OF PAY TO BE USED IN COMPUTING ANNUITY.—

In the case of an annuity paid under section 1448(f) of this
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2569

title by reason of the service of a person who first became

a member of a uniformed service before September 8, 1980,

the retired pay of the person providing the annuity shall

for the purposes of paragraph (1) be computed on the basis

of the rates of basic pay in effect on the effective date of

the annuity.

‘‘(d) REDUCTION OF ANNUITIES AT AGE 62.—

‘‘(1) REDUCTION REQUIRED.—The annuity of a person whose

annuity is computed under subparagraph (A) of subsection

(a)(1), (a)(2), or (c)(1) shall be reduced on the first day of

the month after the month in which the person becomes 62

years of age.

‘‘(2) AMOUNT OF ANNUITY AS REDUCED.—

‘‘(A) 35 PERCENT ANNUITY.—Except as provided in

subparagraph (B), the reduced amount of the annuity shall

be the amount of the annuity that the person would be

receiving on that date if the annuity had initially been

computed under subparagraph (B) of that subsection.

‘‘(B) SAVINGS PROVISION FOR BENEFICIARIES ELIGIBLE

FOR SOCIAL SECURITY OFFSET COMPUTATION.—In the case

of a person eligible to have an annuity computed under

subsection (e) and for whom, at the time the person becomes 62 years of age, the annuity computed with a reduction under subsection (e)(3) is more favorable than the

annuity with a reduction described in subparagraph (A),

the reduction in the annuity shall be computed in the

same manner as a reduction under subsection (e)(3).

‘‘(e) SAVINGS PROVISION FOR CERTAIN BENEFICIARIES.—

‘‘(1) PERSONS COVERED.—The following beneficiaries under

the Plan are eligible to have an annuity under the Plan computed under this subsection:

‘‘(A) A beneficiary receiving an annuity under the Plan

on October 1, 1985, as the surviving spouse or former

spouse of the person providing the annuity.

‘‘(B) A spouse or former spouse beneficiary of a person

who on October 1, 1985—

‘‘(i) was a participant in the Plan;

‘‘(ii) was entitled to retired pay or was qualified

for that pay except that he had not applied for and

been granted that pay; or

‘‘(iii) would have been eligible for reserve-component retired pay but for the fact that he was under

60 years of age.

‘‘(2) AMOUNT OF ANNUITY.—Subject to paragraph (3), an

annuity computed under this subsection is determined as

follows:

‘‘(A) STANDARD ANNUITY.—In the case of the beneficiary

of a standard annuity, the annuity shall be the amount

equal to 55 percent of the base amount.

‘‘(B) RESERVE-COMPONENT ANNUITY.—In the case of the

beneficiary of a reserve-component annuity, the annuity

shall be the percentage of the base amount that—

‘‘(i) is less than 55 percent; and

‘‘(ii) is determined under subsection (f).

‘‘(C) BENEFICIARIES OF PERSONS DYING DURING A PERIOD

OF SPECIAL ELIGIBILITY FOR SBP.—In the case of the beneficiary of an annuity under section 1448(d) or 1448(f) of
110 STAT. 2570 PUBLIC LAW 104–201—SEPT. 23, 1996

this title, the annuity shall be the amount equal to 55

percent of the retired pay of the person providing the

annuity (as that pay is determined under subsection (c)).

‘‘(3) SOCIAL SECURITY OFFSET.—An annuity computed under

this subsection shall be reduced by the lesser of the following:

‘‘(A) SOCIAL SECURITY COMPUTATION.—The amount of

the survivor benefit, if any, to which the surviving spouse

(or the former spouse, in the case of a former spouse

beneficiary who became a former spouse under a divorce

that became final after November 29, 1989) would be

entitled under title II of the Social Security Act (42 U.S.C.

401 et seq.) based solely upon service by the person concerned as described in section 210(l)(1) of such Act (42

U.S.C. 410(l)(1)) and calculated assuming that the person

concerned lives to age 65.

‘‘(B) MAXIMUM AMOUNT OF REDUCTION.—40 percent of

the amount of the monthly annuity as determined under

paragraph (2).

‘‘(4) SPECIAL RULES FOR SOCIAL SECURITY OFFSET

COMPUTATION.—

‘‘(A) TREATMENT OF DEDUCTIONS MADE ON ACCOUNT

OF WORK.—For the purpose of paragraph (3), a surviving

spouse (or a former spouse, in the case of a person who

becomes a former spouse under a divorce that becomes

final after November 29, 1989) shall not be considered

as entitled to a benefit under title II of the Social Security

Act (42 U.S.C. 401 et seq.) to the extent that such benefit

has been offset by deductions under section 203 of such

Act (42 U.S.C. 403) on account of work.

‘‘(B) TREATMENT OF CERTAIN PERIODS FOR WHICH

SOCIAL SECURITY REFUNDS ARE MADE.—In the computation

of any reduction made under paragraph (3), there shall

be excluded any period of service described in section

210(l)(1) of the Social Security Act (42 U.S.C. 410(l)(1))—

‘‘(i) which was performed after December 1, 1980;

and

‘‘(ii) which involved periods of service of less than

30 continuous days for which the person concerned

is entitled to receive a refund under section 6413(c)

of the Internal Revenue Code of 1986 of the social

security tax which the person had paid.

‘‘(f) DETERMINATION OF PERCENTAGES APPLICABLE TO COMPUTATION OF RESERVE-COMPONENT ANNUITIES.—The percentage to be

applied in determining the amount of an annuity computed under

subsection (a)(2), (b)(2), or (e)(2)(B) shall be determined under regulations prescribed by the Secretary of Defense. Such regulations

shall be prescribed taking into consideration the following:

‘‘(1) The age of the person electing to provide the annuity

at the time of such election.

‘‘(2) The difference in age between such person and the

beneficiary of the annuity.

‘‘(3) Whether such person provided for the annuity to

become effective (in the event he died before becoming 60

years of age) on the day after his death or on the 60th anniversary of his birth.

‘‘(4) Appropriate group annuity tables.

‘‘(5) Such other factors as the Secretary considers relevant.

Regulations.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2571

‘‘(g) ADJUSTMENTS TO ANNUITIES.— ‘‘(1) PERIODIC ADJUSTMENTS FOR COST-OF-LIVING.— ‘‘(A) INCREASES IN ANNUITIES WHEN RETIRED PAY

INCREASED.—Whenever retired pay is increased under section 1401a of this title (or any other provision of law),

each annuity that is payable under the Plan shall be increased at the same time.

‘‘(B) PERCENTAGE OF INCREASE.—The increase shall,

in the case of any annuity, be by the same percent

as the percent by which the retired pay of the person

providing the annuity would have been increased at such

time if the person were alive (and otherwise entitled to

such pay).

‘‘(C) CERTAIN REDUCTIONS TO BE DISREGARDED.—The

amount of the increase shall be based on the monthly

annuity payable before any reduction under section 1450(c)

of this title or under subsection (c)(2).

‘‘(2) ROUNDING DOWN.—The monthly amount of an annuity

payable under this subchapter, if not a multiple of $1, shall

be rounded to the next lower multiple of $1.

‘‘(h) ADJUSTMENTS TO BASE AMOUNT.—

‘‘(1) PERIODIC ADJUSTMENTS FOR COST-OF-LIVING.—

‘‘(A) INCREASES IN BASE AMOUNT WHEN RETIRED PAY

INCREASED.—Whenever retired pay is increased under section 1401a of this title (or any other provision of law),

the base amount applicable to each participant in the Plan

shall be increased at the same time.

‘‘(B) PERCENTAGE OF INCREASE.—The increase shall be

by the same percent as the percent by which the retired

pay of the participant is so increased.

‘‘(2) RECOMPUTATION AT AGE 62.—When the retired pay

of a person who first became a member of a uniformed service

on or after August 1, 1986, and who is a participant in the

Plan is recomputed under section 1410 of this title upon the

person’s becoming 62 years of age, the base amount applicable

to that person shall be recomputed (effective on the effective

date of the recomputation of such retired pay under section

1410 of this title) so as to be the amount equal to the amount

of the base amount that would be in effect on that date if

increases in such base amount under paragraph (1) had been

computed as provided in paragraph (2) of section 1401a(b)

of this title (rather than under paragraph (3) of that section).

‘‘(3) DISREGARDING OF RETIRED PAY REDUCTIONS FOR

RETIREMENT BEFORE 30 YEARS OF SERVICE.—Computation of

a member’s retired pay for purposes of this section shall be

made without regard to any reduction under section 1409(b)(2)

of this title.

‘‘(i) RECOMPUTATION OF ANNUITY FOR CERTAIN BENEFICIARIES.—In the case of an annuity under the Plan which is

computed on the basis of the retired pay of a person who would

have been entitled to have that retired pay recomputed under

section 1410 of this title upon attaining 62 years of age, but who

dies before attaining that age, the annuity shall be recomputed,

effective on the first day of the first month beginning after the

date on which the member or former member would have attained

62 years of age, so as to be the amount equal to the amount

of the annuity that would be in effect on that date if increases
110 STAT. 2572 PUBLIC LAW 104–201—SEPT. 23, 1996

under subsection (h)(1) in the base amount applicable to that

annuity to the time of the death of the member or former member,

and increases in such annuity under subsection (g)(1), had been

computed as provided in paragraph (2) of section 1401a(b) of this

title (rather than under paragraph (3) of that section).

‘‘§ 1452. Reduction in retired pay

‘‘(a) SPOUSE AND FORMER SPOUSE ANNUITIES.—

‘‘(1) REQUIRED REDUCTION IN RETIRED PAY.—Except as provided in subsection (b), the retired pay of a participant in

the Plan who is providing spouse coverage (as described in

paragraph (5)) shall be reduced as follows:

‘‘(A) STANDARD ANNUITY.—If the annuity coverage

being providing is a standard annuity, the reduction shall

be as follows:

‘‘(i) DISABILITY AND NONREGULAR SERVICE RETIREES.—In the case of a person who is entitled to

retired pay under chapter 61 or chapter 1223 of this

title, the reduction shall be in whichever of the alternative reduction amounts is more favorable to that

person.

‘‘(ii) MEMBERS AS OF ENACTMENT OF FLAT-RATE

REDUCTION.—In the case of a person who first became

a member of a uniformed service before March 1, 1990,

the reduction shall be in whichever of the alternative

reduction amounts is more favorable to that person.

‘‘(iii) NEW ENTRANTS AFTER ENACTMENT OF FLATRATE REDUCTION.—In the case of a person who first

becomes a member of a uniformed service on or after

March 1, 1990, and who is entitled to retired pay

under a provision of law other than chapter 61 or

chapter 1223 of this title, the reduction shall be in

an amount equal to 61⁄2 percent of the base amount.

‘‘(iv) ALTERNATIVE REDUCTION AMOUNTS.—For purposes of clauses (i) and (ii), the alternative reduction

amounts are the following:

‘‘(I) FLAT-RATE REDUCTION.—An amount equal

to 61⁄2 percent of the base amount.

‘‘(II) AMOUNT UNDER PRE-FLAT-RATE REDUCTION.—An amount equal to 21⁄2 percent of the first

$337 (as adjusted after November 1, 1989, under

paragraph (4)) of the base amount plus 10 percent

of the remainder of the base amount.

‘‘(B) RESERVE-COMPONENT ANNUITY.—If the annuity

coverage being provided is a reserve-component annuity,

the reduction shall be in whichever of the following

amounts is more favorable to that person:

‘‘(i) FLAT-RATE REDUCTION.—An amount equal to

61⁄2 percent of the base amount plus an amount determined in accordance with regulations prescribed by

the Secretary of Defense as a premium for the additional coverage provided through reserve-component

annuity coverage under the Plan.

‘‘(ii) AMOUNT UNDER PRE-FLAT-RATE REDUCTION.—

An amount equal to 21⁄2 percent of the first $337

(as adjusted after November 1, 1989, under paragraph

(4)) of the base amount plus 10 percent of the remainder
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2573

of the base amount plus an amount determined

in accordance with regulations prescribed by the Secretary of Defense as a premium for the additional

coverage provided through reserve-component annuity

coverage under the Plan.

‘‘(2) ADDITIONAL REDUCTION FOR CHILD COVERAGE.—If there

is a dependent child as well as a spouse or former spouse,

the amount prescribed under paragraph (1) shall be increased

by an amount prescribed under regulations of the Secretary

of Defense.

‘‘(3) NO REDUCTION WHEN NO BENEFICIARY.—The reduction

in retired pay prescribed by paragraph (1) shall not be

applicable during any month in which there is no eligible

spouse or former spouse beneficiary.

‘‘(4) PERIODIC ADJUSTMENTS.—

‘‘(A) ADJUSTMENTS FOR INCREASES IN RATES OF BASIC

PAY.—Whenever there is an increase in the rates of basic

pay of members of the uniformed services effective on or

after October 1, 1985, the amounts under paragraph (1)

with respect to which the percentage factor of 21⁄2 is applied

shall be increased by the overall percentage of such increase

in the rates of basic pay. The increase under the preceding

sentence shall apply only with respect to persons whose

retired pay is computed based on the rates of basic pay

in effect on or after the date of such increase in rates

of basic pay.

‘‘(B) ADJUSTMENTS FOR RETIRED PAY COLAS.—In addition to the increase under subparagraph (A), the amounts

under paragraph (1) with respect to which the percentage

factor of 21⁄2 is applied shall be further increased at the

same time and by the same percentage as an increase

in retired pay under section 1401a of this title effective

on or after October 1, 1985. Such increase under the preceding sentence shall apply only with respect to a person

who initially participates in the Plan on a date which

is after both the effective date of such increase under

section 1401a and the effective date of the rates of basic

pay upon which that person’s retired pay is computed.

‘‘(5) SPOUSE COVERAGE DESCRIBED.—For the purposes of

paragraph (1), a participant in the Plan who is providing spouse

coverage is a participant who—

‘‘(A) has (i) a spouse or former spouse, or (ii) a spouse

or former spouse and a dependent child; and

‘‘(B) has not elected to provide an annuity to a person

designated by him under section 1448(b)(1) of this title

or, having made such an election, has changed his election

in favor of his spouse under section 1450(f) of this title.

‘‘(b) CHILD-ONLY ANNUITIES.—

‘‘(1) REQUIRED REDUCTION IN RETIRED PAY.—The retired

pay of a participant in the Plan who is providing child-only

coverage (as described in paragraph (4)) shall be reduced by

an amount prescribed under regulations by the Secretary of

Defense.

‘‘(2) NO REDUCTION WHEN NO CHILD.—There shall be no

reduction in retired pay under paragraph (1) for any month

during which the participant has no eligible dependent child.

Regulations.
110 STAT. 2574 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(3) SPECIAL RULE FOR CERTAIN RCSBP PARTICIPANTS.—In

the case of a participant in the Plan who is participating

in the Plan under an election under section 1448(a)(2)(B) of

this title and who provided child-only coverage during a period

before the participant becomes entitled to receive retired pay,

the retired pay of the participant shall be reduced by an amount

prescribed under regulations by the Secretary of Defense to

reflect the coverage provided under the Plan during the period

before the participant became entitled to receive retired pay.

A reduction under this paragraph is in addition to any reduction

under paragraph (1) and is made without regard to whether

there is an eligible dependent child during a month for which

the reduction is made.

‘‘(4) CHILD-ONLY COVERAGE DEFINED.—For the purposes of

this subsection, a participant in the Plan who is providing

child-only coverage is a participant who has a dependent child

and who—

‘‘(A) does not have an eligible spouse or former

spouse; or

‘‘(B) has a spouse or former spouse but has elected

to provide an annuity for dependent children only.

‘‘(c) REDUCTION FOR INSURABLE INTEREST COVERAGE.—

‘‘(1) REQUIRED REDUCTION IN RETIRED PAY.—The retired

pay of a person who has elected to provide an annuity to

a person designated by him under section 1450(a)(4) of this

title shall be reduced as follows:

‘‘(A) STANDARD ANNUITY.—In the case of a person

providing a standard annuity, the reduction shall be by

10 percent plus 5 percent for each full five years the individual designated is younger than that person.

‘‘(B) RESERVE COMPONENT ANNUITY.—In the case of

a person providing a reserve-component annuity, the reduction shall be by an amount prescribed under regulations

of the Secretary of Defense.

‘‘(2) LIMITATION ON TOTAL REDUCTION.—The total reduction

under paragraph (1) may not exceed 40 percent.

‘‘(3) DURATION OF REDUCTION.—The reduction in retired

pay prescribed by this subsection shall continue during the

lifetime of the person designated under section 1450(a)(4) of

this title or until the person receiving retired pay changes

his election under section 1450(f) of this title.

‘‘(4) RULE FOR COMPUTATION.—Computation of a member’s

retired pay for purposes of this subsection shall be made without regard to any reduction under section 1409(b)(2) of this

title.

‘‘(d) DEPOSITS TO COVER PERIODS WHEN RETIRED PAY NOT

PAID.—

‘‘(1) REQUIRED DEPOSITS.—If a person who has elected to

participate in the Plan has been awarded retired pay and

is not entitled to that pay for any period, that person must

deposit in the Treasury the amount that would otherwise have

been deducted from his pay for that period.

‘‘(2) DEPOSITS NOT REQUIRED WHEN PARTICIPANT ON ACTIVE

DUTY.—Paragraph (1) does not apply to a person with respect

to any period when that person is on active duty under a

call or order to active duty for a period of more than 30

days.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2575

‘‘(e) DEPOSITS NOT REQUIRED FOR CERTAIN PARTICIPANTS IN

CSRS.—When a person who has elected to participate in the Plan

waives that person’s retired pay for the purposes of subchapter

III of chapter 83 of title 5, that person shall not be required

to make the deposit otherwise required by subsection (d) as long

as that waiver is in effect unless, in accordance with section 8339(i)

of title 5, that person has notified the Office of Personnel Management that he does not desire a spouse surviving him to receive

an annuity under section 8331(b) of title 5.

‘‘(f) REFUNDS OF DEDUCTIONS NOT ALLOWED.—

‘‘(1) GENERAL RULE.—A person is not entitled to refund

of any amount deducted from retired pay under this section.

‘‘(2) EXCEPTIONS.—Paragraph (1) does not apply—

‘‘(A) in the case of a refund authorized by section

1450(e) of this title; or

‘‘(B) in case of a deduction made through administrative error.

‘‘(g) DISCONTINUATION OF PARTICIPATION BY PARTICIPANTS

WHOSE SURVIVING SPOUSES WILL BE ENTITLED TO DIC.—

‘‘(1) DISCONTINUATION.—

‘‘(A) CONDITIONS.—Notwithstanding any other provision of this subchapter but subject to paragraphs (2) and

(3), a person who has elected to participate in the Plan

and who is suffering from a service-connected disability

rated by the Secretary of Veterans Affairs as totally disabling and has suffered from such disability while so rated

for a continuous period of 10 or more years (or, if so

rated for a lesser period, has suffered from such disability

while so rated for a continuous period of not less than

5 years from the date of such person’s last discharge or

release from active duty) may discontinue participation

in the Plan by submitting to the Secretary concerned a

request to discontinue participation in the Plan.

‘‘(B) EFFECTIVE DATE.—Participation in the Plan of a

person who submits a request under subparagraph (A)

shall be discontinued effective on the first day of the first

month following the month in which the request under

subparagraph (A) is received by the Secretary concerned.

Effective on such date, the Secretary concerned shall discontinue the reduction being made in such person’s retired

pay on account of participation in the Plan or, in the

case of a person who has been required to make deposits

in the Treasury on account of participation in the Plan,

such person may discontinue making such deposits effective

on such date.

‘‘(C) FORM FOR REQUEST FOR DISCONTINUATION.—Any

request under this paragraph to discontinue participation

in the Plan shall be in such form and shall contain such

information as the Secretary concerned may require by

regulation.

‘‘(2) CONSENT OF BENEFICIARIES REQUIRED.—A person

described in paragraph (1) may not discontinue participation

in the Plan under such paragraph without the written consent

of the beneficiary or beneficiaries of such person under the

Plan.

‘‘(3) INFORMATION ON PLAN TO BE PROVIDED BY SECRETARY

CONCERNED.—
110 STAT. 2576 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(A) INFORMATION TO BE PROVIDED PROMPTLY TO

PARTICIPANT.—The Secretary concerned shall furnish

promptly to each person who files a request under paragraph (1) to discontinue participation in the Plan a written

statement of the advantages of participating in the Plan

and the possible disadvantages of discontinuing participation.

‘‘(B) RIGHT TO WITHDRAW DISCONTINUATION REQUEST.—

A person may withdraw a request made under paragraph

(1) if it is withdrawn within 30 days after having been

submitted to the Secretary concerned.

‘‘(4) REFUND OF DEDUCTIONS FROM RETIRED PAY.—Upon

the death of a person described in paragraph (1) who discontinued participation in the Plan in accordance with this subsection, any amount deducted from the retired pay of that

person under this section shall be refunded to the person’s

surviving spouse.

‘‘(5) RESUMPTION OF PARTICIPATION IN PLAN.—

‘‘(A) CONDITIONS FOR RESUMPTION.—A person described

in paragraph (1) who discontinued participation in the

Plan may elect to participate again in the Plan if—

‘‘(i) after having discontinued participation in the

Plan the Secretary of Veterans Affairs reduces that

person’s service-connected disability rating to a rating

of less than total; and

‘‘(ii) that person applies to the Secretary concerned,

within such period of time after the reduction in such

person’s service-connected disability rating has been

made as the Secretary concerned may prescribe, to

again participate in the Plan and includes in such

application such information as the Secretary concerned may require.

‘‘(B) EFFECTIVE DATE OF RESUMED COVERAGE.—Such

person’s participation in the Plan under this paragraph

is effective beginning on the first day of the month after

the month in which the Secretary concerned receives the

application for resumption of participation in the Plan.

‘‘(C) RESUMPTION OF CONTRIBUTIONS.—When a person

elects to participate in the Plan under this paragraph,

the Secretary concerned shall begin making reductions in

that person’s retired pay, or require such person to make

deposits in the Treasury under subsection (d), as appropriate, effective on the effective date of such participation

under subparagraph (B).

‘‘(h) INCREASES IN REDUCTION WITH INCREASES IN RETIRED

PAY.—

‘‘(1) GENERAL RULE.—Whenever retired pay is increased

under section 1401a of this title (or any other provision of

law), the amount of the reduction to be made under subsection

(a) or (b) in the retired pay of any person shall be increased

at the same time and by the same percentage as such retired

pay is so increased.

‘‘(i) RECOMPUTATION OF REDUCTION UPON RECOMPUTATION OF

RETIRED PAY.—When the retired pay of a person who first became

a member of a uniformed service on or after August 1, 1986,

and who is a participant in the Plan is recomputed under section

1410 of this title upon the person’s becoming 62 years of age,
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2577

the amount of the reduction in such retired pay under this section

shall be recomputed (effective on the effective date of the recomputation of such retired pay under section 1410 of this title) so as

to be the amount equal to the amount of such reduction that

would be in effect on that date if increases in such retired pay

under section 1401a(b) of this title, and increases in reductions

in such retired pay under subsection (h), had been computed as

provided in paragraph (2) of section 1401a(b) of this title (rather

than under paragraph (3) of that section).

‘‘§ 1453. Recovery of amounts erroneously paid

‘‘(a) RECOVERY.—In addition to any other method of recovery

provided by law, the Secretary concerned may authorize the recovery of any amount erroneously paid to a person under this subchapter by deduction from later payments to that person.

‘‘(b) AUTHORITY TO WAIVE RECOVERY.—Recovery of an amount

erroneously paid to a person under this subchapter is not required

if, in the judgment of the Secretary concerned and the Comptroller

General—

‘‘(1) there has been no fault by the person to whom the

amount was erroneously paid; and

‘‘(2) recovery of such amount would be contrary to the

purposes of this subchapter or against equity and good conscience.

‘‘§ 1454. Correction of administrative errors

‘‘(a) AUTHORITY.—The Secretary concerned may, under regulations prescribed under section 1455 of this title, correct or revoke

any election under this subchapter when the Secretary considers

it necessary to correct an administrative error.

‘‘(b) FINALITY.—Except when procured by fraud, a correction

or revocation under this section is final and conclusive on all officers

of the United States.

‘‘§ 1455. Regulations

‘‘(a) IN GENERAL.—The President shall prescribe regulations

to carry out this subchapter. Those regulations shall, so far as

practicable, be uniform for the uniformed services.

‘‘(b) NOTICE OF ELECTIONS.—Regulations prescribed under this

section shall provide that before the date on which a member

becomes entitled to retired pay—

‘‘(1) if the member is married, the member and the member’s spouse shall be informed of the elections available under

section 1448(a) of this title and the effects of such elections;

and

‘‘(2) if the notification referred to in section 1448(a)(3)(E)

of this title is required, any former spouse of the member

shall be informed of the elections available and the effects

of such elections.

‘‘(c) PROCEDURE FOR DEPOSITING CERTAIN RECEIPTS.—Regulations prescribed under this section shall establish procedures for

depositing the amounts referred to in sections 1448(g), 1450(k)(2),

and 1452(d) of this title.

‘‘(d) PAYMENTS TO GUARDIANS AND FIDUCIARIES.—

‘‘(1) IN GENERAL.—Regulations prescribed under this section shall provide procedures for the payment of an annuity

under this subchapter in the case of—

President.
110 STAT. 2578 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(A) a person for whom a guardian or other fiduciary

has been appointed; and

‘‘(B) a minor, mentally incompetent, or otherwise

legally disabled person for whom a guardian or other fiduciary has not been appointed.

‘‘(2) AUTHORIZED PROCEDURES.—The regulations under

paragraph (1) may include provisions for the following:

‘‘(A) In the case of an annuitant referred to in paragraph (1)(A), payment of the annuity to the appointed

guardian or other fiduciary.

‘‘(B) In the case of an annuitant referred to in paragraph (1)(B), payment of the annuity to any person who,

in the judgment of the Secretary concerned, is responsible

for the care of the annuitant.

‘‘(C) Subject to subparagraphs (D) and (E), a requirement for the payee of an annuity to spend or invest the

amounts paid on behalf of the annuitant solely for benefit

of the annuitant.

‘‘(D) Authority for the Secretary concerned to permit

the payee to withhold from the annuity payment such

amount, not in excess of 4 percent of the annuity, as

the Secretary concerned considers a reasonable fee for the

fiduciary services of the payee when a court appointment

order provides for payment of such a fee to the payee

for such services or the Secretary concerned determines

that payment of a fee to such payee is necessary in order

to obtain the fiduciary services of the payee.

‘‘(E) Authority for the Secretary concerned to require

the payee to provide a surety bond in an amount sufficient

to protect the interests of the annuitant and to pay for

such bond out of the annuity.

‘‘(F) A requirement for the payee of an annuity to

maintain and, upon request, to provide to the Secretary

concerned an accounting of expenditures and investments

of amounts paid to the payee.

‘‘(G) In the case of an annuitant referred to in paragraph (1)(B)—

‘‘(i) procedures for determining incompetency and

for selecting a payee to represent the annuitant for

the purposes of this section, including provisions for

notifying the annuitant of the actions being taken to

make such a determination and to select a representative payee, an opportunity for the annuitant to review

the evidence being considered, and an opportunity for

the annuitant to submit additional evidence before the

determination is made; and

‘‘(ii) standards for determining incompetency,

including standards for determining the sufficiency of

medical evidence and other evidence.

‘‘(H) Provisions for any other matter that the President

considers appropriate in connection with the payment of

an annuity in the case of a person referred to in paragraph

(1).

‘‘(3) LEGAL EFFECT OF PAYMENT TO GUARDIAN OR FIDUCIARY.—An annuity paid to a person on behalf of an annuitant

in accordance with the regulations prescribed pursuant to paragraph (1) discharges the obligation of the United States for
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2579

payment to the annuitant of the amount of the annuity so

paid.’’.

SEC. 635. INCREASES IN SURVIVOR BENEFIT PLAN CONTRIBUTIONS

TO BE EFFECTIVE CONCURRENTLY WITH PAYMENT OF

RETIRED PAY COST-OF-LIVING INCREASES.

(a) SURVIVOR BENEFIT PLAN.—Section 1452(h) of title 10,

United States Code, as amended by section 634, is amended by

adding at the end the following new paragraph:

‘‘(2) COORDINATION WHEN PAYMENT OF INCREASE IN RETIRED

PAY IS DELAYED BY LAW.—

‘‘(A) IN GENERAL.—Notwithstanding paragraph (1),

when the initial payment of an increase in retired pay

under section 1401a of this title (or any other provision

of law) to a person is for a month that begins later than

the effective date of that increase by reason of the application of subsection (b)(2)(B) of such section (or section 631(b)

of Public Law 104–106 (110 Stat. 364)), then the amount

of the reduction in the person’s retired pay shall be effective

on the date of that initial payment of the increase in

retired pay rather than the effective date of the increase

in retired pay.

‘‘(B) DELAY NOT TO AFFECT COMPUTATION OF ANNUITY.—Subparagraph (A) may not be construed as delaying,

for purposes of determining the amount of a monthly annuity under section 1451 of this title, the effective date of

an increase in a base amount under subsection (h) of such

section from the effective date of an increase in retired

pay under section 1401a of this title to the date on which

the initial payment of that increase in retired pay is made

in accordance with subsection (b)(2)(B) of such section.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply with respect to retired pay payable for months beginning

on or after the date of the enactment of this Act.

SEC. 636. AMENDMENTS TO THE UNIFORMED SERVICES FORMER

SPOUSES’ PROTECTION ACT.

(a) MANNER OF SERVICE OF PROCESS.—Subsection (b)(1)(A) of

section 1408 of title 10, United States Code, is amended by striking

out ‘‘certified or registered mail, return receipt requested’’ and

inserting in lieu thereof ‘‘facsimile or electronic transmission or

by mail’’.

(b) SUBSEQUENT COURT ORDER FROM ANOTHER STATE.—Subsection (d) of such section is amended by adding at the end the

following new paragraph:

‘‘(6)(A) The Secretary concerned may not accept service of a

court order that is an out-of State modification, or comply with

the provisions of such a court order, unless the court issuing that

order has jurisdiction in the manner specified in subsection (c)(4)

over both the member and the spouse or former spouse involved.

‘‘(B) A court order shall be considered to be an out-of-State

modification for purposes of this paragraph if the order—

‘‘(i) modifies a previous court order under this section upon

which payments under this subsection are based; and

‘‘(ii) is issued by a court of a State other than the State

of the court that issued the previous court order.’’.

Applicability.

10 USC 1452

note.
110 STAT. 2580 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 637. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY

WAIVER OF RETIRED PAY TO ENHANCE CIVIL SERVICE

RETIREMENT ANNUITY.

(a) CIVIL SERVICE RETIREMENT AND DISABILITY SYSTEM.—(1)

Subsection (c) of section 8332 of title 5, United States Code, is

amended by adding at the end the following new paragraph:

‘‘(4) If, after January 1, 1997, an employee or Member waives

retired pay that is subject to a court order for which there has

been effective service on the Secretary concerned for purposes of

section 1408 of title 10, the military service on which the retired

pay is based may be credited as service for purposes of this subchapter only if the employee or Member authorizes the Director

to deduct and withhold from the annuity payable to the employee

or Member under this subchapter an amount equal to the amount

that, if the annuity payment was instead a payment of the employee’s or Member’s retired pay, would have been deducted and withheld and paid to the former spouse covered by the court order

under such section 1408. The amount deducted and withheld under

this paragraph shall be paid to that former spouse. The period

of civil service employment by the employee or Member shall not

be taken into consideration in determining the amount of the deductions and withholding or the amount of the payment to the former

spouse. The Director of the Office of Personnel Management shall

prescribe regulations to carry out this paragraph.’’.

(2) Paragraph (1) of such subsection is amended by striking

out ‘‘Except as provided in paragraph (2)’’ and inserting in lieu

thereof ‘‘Except as provided in paragraphs (2) and (4)’’.

(b) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—(1) Subsection

(c) of section 8411 of title 5, United States Code, is amended

by adding at the end the following new paragraph:

‘‘(5) If, after January 1, 1997, an employee or Member waives

retired pay that is subject to a court order for which there has

been effective service on the Secretary concerned for purposes of

section 1408 of title 10, the military service on which the retired

pay is based may be credited as service for purposes of this chapter

only if the employee or Member authorizes the Director to deduct

and withhold from the annuity payable to the employee or Member

under this subchapter an amount equal to the amount that, if

the annuity payment was instead a payment of the employee’s

or Member’s retired pay, would have been deducted and withheld

and paid to the former spouse covered by the court order under

such section 1408. The amount deducted and withheld under this

paragraph shall be paid to that former spouse. The period of civil

service employment by the employee or Member shall not be taken

into consideration in determining the amount of the deductions

and withholding or the amount of the payment to the former spouse.

The Director of the Office of Personnel Management shall prescribe

regulations to carry out this paragraph.’’.

(2) Paragraph (1) of such subsection is amended by striking

‘‘Except as provided in paragraph (2) or (3)’’ and inserting ‘‘Except

as provided in paragraphs (2), (3), and (5)’’.

(c) EFFECTIVE DATE.—The amendments made by subsections

(a) and (b) shall take effect on January 1, 1997.

5 USC 8332 note.

Regulations.

Regulations.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2581

SEC. 638. ADMINISTRATION OF BENEFITS FOR SO-CALLED MINIMUM

INCOME WIDOWS.

(a) ADJUSTED ANNUAL INCOME LIMITATION APPLIABLE TO ELIGIBILITY FOR INCOME SUPPLEMENT.—(1) Section 4 of Public Law 92–

425 (10 U.S.C. 1448 note) is amended—

(A) in subsection (a)(3), by striking out ‘‘$2,340’’ and inserting in lieu thereof ‘‘the maximum annual rate of pension in

effect under section 1541(b) of title 38, United States Code’’;

and

(B) in the first sentence of subsection (b), by striking out

‘‘$2,340 a year’’ and inserting in lieu thereof ‘‘the maximum

annual rate of pension in effect under section 1541(b) of title

38, United States Code’’.

(2) Subsection (c) of such section is repealed.

(b) PAYMENTS TO BE MADE BY SECRETARY OF VETERANS

AFFAIRS.—Such section is further amended by adding at the end

the following new subsection:

‘‘(e)(1) Payment of annuities under this section shall be made

by the Secretary of Veterans Affairs. If appropriate for administrative convenience (or otherwise determined appropriate by the Secretary of Veterans Affairs), that Secretary may combine a payment

to any person for any month under this section with any other

payment for that month under laws administered by the Secretary

so as to provide that person with a single payment for that month.

‘‘(2) The Secretary concerned shall annually transfer to the

Secretary of Veterans Affairs such amounts as may be necessary

for payments by the Secretary of Veterans Affairs under this section

and for costs of the Secretary of Veterans Affairs in administering

this section. Such transfers shall be made from amounts that would

otherwise be used for payment of annuities by the Secretary concerned under this section. The authority to make such a transfer

is in addition to any other authority of the Secretary concerned

to transfer funds for a purpose other than the purpose for which

the funds were originally made available. In the case of a transfer

by the Secretary of a military department, the provisions of section

2215 of title 10, United States Code, do not apply.

‘‘(3) The Secretary concerned shall promptly notify the Secretary

of Veterans Affairs of any change in beneficiaries under this section.’’.

(c) CLARIFICATION OF CONTINUING ELIGIBLITY FOR DEPARTMENT

OF VETERANS AFFAIRS PENSION.—Such section, as amended by subsection (a)(2), is further amended by inserting after subsection

(b) the following new subsection (c):

‘‘(c) The amount of an annuity payable under this section,

although counted as income in determining the amount of any

pension described in subsection (a)(2) of this section, shall not

be considered to affect the eligiblity of the recipient of such annuity

for such pension, even though, as a result of including the amount

of the annuity as income, no amount of such pension is due.’’.

(d) EFFECTIVE DATE.—The amendments made by this section

take effect on July 1, 1997, and apply with respect to payments

of benefits for any month after June 1997.

Applicability.

10 USC 1448

note.

Notification.
110 STAT. 2582 PUBLIC LAW 104–201—SEPT. 23, 1996

Subtitle E—Other Matters

SEC. 651. DISCRETIONARY ALLOTMENT OF PAY, INCLUDING RETIRED

OR RETAINER PAY.

(a) ALLOTMENTS AUTHORIZED.—Section 701 of title 37, United

States Code, is amended by striking out subsection (d) and inserting

in lieu thereof the following new subsections:

‘‘(d) Under regulations prescribed by the Secretary of Defense,

a member of the Army, Navy, Air Force, or Marine Corps and

a contract surgeon of the Army, Navy, or Air Force may make

allotments from the pay of the member or surgeon for the purpose

of supporting relatives or for any other purpose that the Secretary

considers proper. Such allotments may include a maximum of six

allotments considered to be discretionary under such regulations.

For a member or former member entitled to retired or retainer

pay, a maximum of six discretionary allotments authorized during

active military service may be continued into retired status, and

new discretionary allotments may be authorized so long as the

total number of discretionary allotments does not exceed six.

‘‘(e) If an allotment made under subsection (d) is paid to the

allottee before the disbursing officer receives a notice of discontinuance from the officer required by regulation to furnish the notice,

the amount of the allotment shall be credited to the disbursing

officer. If an allotment is erroneously paid because the officer

required by regulation to so report failed to report the death of

the allotter or any other fact that makes the allotment not payable,

the amount of the payment not recovered from the allottee shall,

if practicable, be collected by the Secretary concerned from the

officer who failed to make the report.’’.

(b) ISSUANCE OF REGULATIONS.—The Secretaries of the military

departments shall prescribe regulations under subsection (d) of

section 701 of title 37, United States Code, as added by subsection

(a), not later than October 1, 1997.

SEC. 652. REIMBURSEMENT FOR ADOPTION EXPENSES INCURRED IN

ADOPTIONS THROUGH PRIVATE PLACEMENTS.

(a) DEPARTMENT OF DEFENSE.—Section 1052(g) of title 10,

United States Code, is amended—

(1) in paragraph (1), by striking out ‘‘State or local government’’ and all that follows through the period at the end of

the first sentence and inserting in lieu thereof ‘‘qualified adoption agency.’’; and

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

‘‘(3) The term ‘qualified adoption agency’ means any of

the following:

‘‘(A) A State or local government agency which has

responsibility under State or local law for child placement

through adoption.

‘‘(B) A nonprofit, voluntary adoption agency which is

authorized by State or local law to place children for adoption.

‘‘(C) Any other source authorized by a State to provide

adoption placement if the adoption is supervised by a court

under State or local law.’’.

(b) COAST GUARD.—Section 514(g) of title 14, United States

Code, is amended—

37 USC 701 note.

Regulations.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2583

(1) in paragraph (1), by striking out ‘‘State or local government’’ and all that follows through the period at the end of

the first sentence and inserting in lieu thereof ‘‘qualified adoption agency.’’; and

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

‘‘(3) The term ‘qualified adoption agency’ means any of

the following:

‘‘(A) A State or local government agency which has

responsibility under State or local law for child placement

through adoption.

‘‘(B) A nonprofit, voluntary adoption agency which is

authorized by State or local law to place children for adoption.

‘‘(C) Any other source authorized by a State to provide

adoption placement if the adoption is supervised by a court

under State or local law.’’.

SEC. 653. WAIVER OF RECOUPMENT OF AMOUNTS WITHHELD FOR TAX

PURPOSES FROM CERTAIN SEPARATION PAY.

(a) IN GENERAL.—Section 1174(h)(2) of title 10, United States

Code, is amended by inserting before the period at the end of

the first sentence the following: ‘‘, less the amount of Federal

income tax withheld from such pay (such withholding being at

the flat withholding rate for Federal income tax withholding, as

in effect pursuant to regulations prescribed under chapter 24 of

the Internal Revenue Code of 1986)’’.

(b) EFFECTIVE DATE.—The amendments made by this section

shall take effect on October 1, 1996, and shall apply to payments

of separation pay, severance pay, or readjustment pay that are

made after September 30, 1996.

SEC. 654. TECHNICAL CORRECTION CLARIFYING LIMITATION ON FURNISHING CLOTHING OR ALLOWANCES FOR ENLISTED

NATIONAL GUARD TECHNICIANS.

Section 418(c) of title 37, United States Code, is amended

by striking out ‘‘for which a uniform allowance is paid under section

415 or 416 of this title’’ and inserting in lieu thereof ‘‘for which

clothing is furnished or a uniform allowance is paid under this

section’’.

SEC. 655. TECHNICAL CORRECTION TO PRIOR AUTHORITY FOR PAYMENT OF BACKPAY TO CERTAIN PERSONS.

Section 634 of the National Defense Authorization Act for Fiscal

Year 1996 (Public Law 104–106; 110 Stat. 366) is amended—

(1) in subsection (b)(1), by striking out ‘‘Island of Bataan’’

and inserting in lieu thereof ‘‘peninsula of Bataan or island

of Corregidor’’; and

(2) in subsection (c), by inserting after the first sentence

the following: ‘‘For the purposes of this subsection, the Secretary

of War shall be deemed to have determined that conditions

in the Philippines during the specified period justified payment

under applicable regulations of quarters and subsistence allowances at the maximum special rate for duty where emergency

conditions existed.’’.

Applicability.

10 USC 1174

note.
110 STAT. 2584 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 656. COMPENSATION FOR PERSONS AWARDED PRISONER OF

WAR MEDAL WHO DID NOT PREVIOUSLY RECEIVE COMPENSATION AS A PRISONER OF WAR.

(a) AUTHORITY TO MAKE PAYMENTS.—The Secretary of the military department concerned shall make payments in the manner

provided in section 6 of the War Claims Act of 1948 (50 U.S.C.

App. 2005) to (or on behalf of) any person described in subsection

(b) who submits an application for such payment in accordance

with subsection (d).

(b) ELIGIBLE PERSONS.—This section applies with respect to

a member or former member of the Armed Forces who—

(1) has received the prisoner of war medal under section

1128 of title 10, United States Code; and

(2) has not previously received a payment under section

6 of the War Claims Act of 1948 (50 U.S.C. App. 2005) with

respect to the period of internment for which the person

received the prisoner of war medal.

(c) AMOUNT OF PAYMENT.—The amount of the payment to any

person under this section shall be determined based upon the

provisions of section 6 of the War Claims Act of 1948 that are

applicable with respect to the period of time during which the

internment occurred for which the person received the prisoner

of war medal.

(d) ONE-YEAR PERIOD FOR SUBMISSION OF APPLICATIONS.—A

payment may be made by reason of this section only in the case

of a person who submits an application to the Secretary concerned

for such payment during the one-year period beginning on the

date of the enactment of this Act. Any such application shall be

submitted in such form and manner as the Secretary may require.

SEC. 657. PAYMENTS TO CERTAIN PERSONS CAPTURED AND

INTERNED BY NORTH VIETNAM.

(a) PAYMENT AUTHORIZED TO ELIGIBLE PERSONS.—(1) Using

amounts made available under subsection (g), the Secretary of

Defense shall make a payment under this section to a person

who demonstrates to the satisfaction of the Secretary of Defense

that the person was captured and incarcerated by the Democratic

Republic of Vietnam as a result of the participation by the person

in operations conducted under OPLAN 34A or its predecessor.

(2) Using amounts made available under subsection (g), the

Secretary of Defense shall also make a payment under this section

to a person who demonstrates to the satisfaction of the Secretary

of Defense that the person—

(A) served as a Vietnamese operative pursuant to

OPLAN 35;

(B) was captured and incarcerated by North Vietnamese

forces as a result of the participation by the person in operations

in Laos or along the Lao-Vietnamese border pursuant to

OPLAN 35;

(C) remained in captivity after 1973 (or died in

captivity); and

(D) has not previously received payment from the United

States for the period spent in captivity.

(3) A payment may not be made under this section to, or

with respect to, a person who the Secretary of Defense determines,

based on the available evidence, served in the Peoples Army of

Vietnam or provided active assistance to the Government of the

50 USC app.

2005 note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2585

Democratic Republic of Vietnam during the period from 1958

through 1975.

(b) EFFECT OF DEATH OF ELIGIBLE PERSON.—In the case of

a decedent who would have been eligible for a payment under

this section if alive, the documentation required under subsection

(a) may be provided by survivors of the decedent, and the payment

under this section shall be made to survivors of the decedent

in the following order:

(1) To the surviving spouse.

(2) If there is no surviving spouse, to the surviving children

(including natural children and adopted children) of the

decedent, in equal shares.

(c) AMOUNT PAYABLE.—The amount payable to, or with respect

to, a person under this section is $40,000. If a person can demonstrate to the Secretary of Defense that confinement or incarceration exceeded 20 years, the Secretary may pay an additional $2,000

for each full year in excess of 20 (and a proportionate amount

for a partial year), but the total amount paid to, or with respect

to, a person under this section may not exceed $50,000.

(d) TIME LIMITATIONS.—(1) To be eligible for a payment under

this section, a claimant must file a claim for such payment with

the Secretary of Defense within 18 months of the effective date

of the regulations implementing this section.

(2) Not later than 18 months after receiving a claim for payment

under this section, the Secretary shall determine the eligibility

of the claimant for payment of the claim. Subject to subsection

(f), if the Secretary determines that the claimant is eligible for

the payment, the Secretary shall promptly pay the claim.

(e) REGULATIONS.—(1) The Secretary of Defense shall prescribe

regulations to carry out this section. Such regulations shall include

procedures by which persons may submit claims for payment under

this section. Such regulations shall be prescribed not later than

six months after the date of the enactment of this Act.

(2) The Secretary of Defense may establish guidelines regarding

what constitutes adequate documentation for determining whether

a person satisfies the requirements specified in subsection (a)

regarding eligibility for a payment under this section. Such guidelines shall be established in consultation with the heads of other

agencies of the Government involved with OPLAN 34A or its predecessor or OPLAN 35.

(f) LIMITATION ON DISBURSEMENT.—(1) The actual disbursement

of a payment under this section may be made only to the person

who is eligible for the payment under subsection (a) or (b) and

only—

(A) upon the appearance of that person, in person, at

any designated disbursement office in the United States or

its territories; or

(B) at such other location or in such other manner as

that person may request in writing.

(2) In the case of a claim approved for payment but not disbursed as a result of operation of paragraph (1), the Secretary

of Defense shall hold the funds in trust for the person in an

interest bearing account until such time as the person makes an

election under such paragraph.

(g) FUNDING.—To the extent provided in advance for this section

in appropriations Acts, of amounts authorized to be appropriated
110 STAT. 2586 PUBLIC LAW 104–201—SEPT. 23, 1996

under section 301(24) for this purpose, $20,000,000 shall be available until expended for payments under this section.

(h) PAYMENT IN FULL SATISFACTION OF CLAIMS AGAINST THE

UNITED STATES.—The acceptance of payment by, or with respect

to, a person under this section shall be in full satisfaction of all

claims by or on behalf of that individual against the United States

arising from operations under OPLAN 34A or its predecessor or

OPLAN 35.

(i) ATTORNEY FEES.—Notwithstanding any contract, the representative of a person may not receive, for services rendered in

connection with the claim of, or with respect to, a person under

this section, more than 10 percent of a payment made under this

section on that claim.

(j) NO RIGHT TO JUDICIAL REVIEW.—All determinations by the

Secretary of Defense pursuant to this section are final and conclusive, notwithstanding any other provision of law. Claimants under

this section have no right to judicial review, and such review

is specifically precluded.

(k) REPORTS TO CONGRESS.—(1) Not later than 24 months after

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

shall submit to Congress a report on the payment of claims under

this section.

(2) After the submission of the report under paragraph (1),

the Secretary shall periodically submit to Congress a report on

the status of payment of claims under this section.

TITLE VII—HEALTH CARE PROVISIONS

Subtitle A—Health Care Services

Sec. 701. Preventive health care screening for colon and prostate cancer.

Sec. 702. Implementation of requirement for Selected Reserve dental insurance

plan.

Sec. 703. Dental insurance plan for military retirees and unremarried surviving

spouses and certain other dependents of military retirees.

Sec. 704. Plan for health care coverage for children with medical conditions caused

by parental exposure to chemical munitions while serving as members

of the Armed Forces.

Subtitle B—TRICARE Program

Sec. 711. CHAMPUS payment limits for TRICARE prime enrollees.

Sec. 712. Improved information exchange between military treatment facilities and

TRICARE program contractors.

Sec. 713. Plans for medicare subvention demonstration programs.

Subtitle C—Uniformed Services Treatment Facilities

Sec. 721. Definitions.

Sec. 722. Inclusion of designated providers in uniformed services health care

delivery system.

Sec. 723. Provision of uniform benefit by designated providers.

Sec. 724. Enrollment of covered beneficiaries.

Sec. 725. Application of CHAMPUS payment rules.

Sec. 726. Payments for services.

Sec. 727. Repeal of superseded authorities.

Subtitle D—Other Changes to Existing Laws Regarding Health Care

Management

Sec. 731. Authority to waive CHAMPUS exclusion regarding nonmedically

necessary treatment in connection with certain clinical trials.

Sec. 732. Exception to maximum allowable payments to individual health-care

providers under CHAMPUS.

Sec. 733. Codification of annual authority to credit CHAMPUS refunds to current

year appropriation.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2587

Sec. 734. Exceptions to requirements regarding obtaining nonavailability-of-healthcare statements.

Sec. 735. Enhancement of third-party collection and secondary payer authorities

under CHAMPUS.

Subtitle E—Other Matters

Sec. 741. Alternatives to active duty service obligation under Armed Forces Health

Professions Scholarship and Financial Assistance program and Uniformed Services University of the Health Sciences.

Sec. 742. External peer review for defense health program extramural medical

research involving human subjects.

Sec. 743. Independent research regarding Gulf War syndrome.

Sec. 744. Comptroller General review of health care activities of Department of

Defense relating to Gulf War illnesses.

Sec. 745. Report regarding specialized treatment facility program.

Sec. 746. Study of means of ensuring uniformity in provision of medical and dental

care for members of reserve components.

Sec. 747. Sense of Congress regarding tax treatment of Armed Forces

Health Professions Scholarship and Financial Assistance program.

Subtitle A—Health Care Services

SEC. 701. PREVENTIVE HEALTH CARE SCREENING FOR COLON AND

PROSTATE CANCER.

(a) MEMBERS AND FORMER MEMBERS.—(1) Section 1074d of

title 10, United States Code, is amended—

(A) in subsection (a)—

(i) by inserting ‘‘(1)’’ before ‘‘Female’’; and

(ii) by adding at the end the following new paragraph:

‘‘(2) Male members and former members of the uniformed services entitled to medical care under section 1074 or 1074a of this

title shall also be entitled to preventive health care screening for

colon or prostate cancer at such intervals and using such screening

methods as the administering Secretaries consider appropriate.’’;

and

(B) in subsection (b), by adding at the end the following

new paragraph:

‘‘(8) Colon cancer screening, at the intervals and using

the screening methods prescribed under subsection (a)(2).’’.

(2)(A) The heading of such section is amended to read as

follows:

‘‘§ 1074d. Certain primary and preventive health care

services

(B) 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:

‘‘1074d. Certain primary and preventive health care services.’’.

(b) DEPENDENTS.—(1) Section 1077(a) of such title is amended

by adding at the end the following new paragraph:

‘‘(14) Preventive health care screening for colon or prostate

cancer, at the intervals and using the screening methods prescribed under section 1074d(a)(2) of this title.’’.

(2) Section 1079(a)(2) of such title is amended—

(A) in the matter preceding subparagraph (A), by inserting

‘‘the schedule and method of colon and prostate cancer

screenings,’’ after ‘‘pap smears and mammograms,’’; and

(B) in subparagraph (B), by inserting ‘‘or colon and prostate

cancer screenings’’ after ‘‘pap smears and mammograms’’.
110 STAT. 2588 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 702. IMPLEMENTATION OF REQUIREMENT FOR SELECTED

RESERVE DENTAL INSURANCE PLAN.

(a) IMPLEMENTATION BY CONTRACT.—Subsection (a) of section

1076b of title 10, United States Code, is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(a) AUTHORITY TO ESTABLISH

PLAN.—’’;

(2) by designating the third sentence as paragraph

(3); and

(3) by inserting after paragraph (1), as designated by paragraph (1) of this subsection, the following new paragraph:

‘‘(2) The Secretary shall provide benefits under the plan through

one or more contracts awarded after full and open competition.’’.

(b) COLLECTION OF PREMIUMS OF MEMBERS NOT RECEIVING

BASIC PAY.—Subsection (b)(3) of such section is amended by adding

at the end the following: ‘‘In the case of a member who does

not receive basic pay, the Secretary of Defense shall establish

procedures for the collection of the member’s share of the premium

for coverage.’’.

(c) SCHEDULE FOR IMPLEMENTATION.—Section 705(b) of the

National Defense Authorization Act for Fiscal Year 1996 (Public

Law 104–106; 110 Stat. 373; 10 U.S.C. 1076b note) is amended—

(1) in the first sentence, by striking out ‘‘October 1, 1996’’

and inserting in lieu thereof ‘‘October 1, 1997’’; and

(2) by striking out ‘‘fiscal year 1996’’ both places it appears

and inserting in lieu thereof ‘‘fiscal years 1996 and 1997’’.

SEC. 703. DENTAL INSURANCE PLAN FOR MILITARY RETIREES AND

UNREMARRIED SURVIVING SPOUSES AND CERTAIN OTHER

DEPENDENTS OF MILITARY RETIREES.

(a) ESTABLISHMENT OF DENTAL PLAN.—(1) Chapter 55 of title

10, United States Code, is amended by inserting after section 1076b

the following new section:

‘‘§ 1076c. Dental insurance plan: certain retirees and their

surviving spouses and other dependents

‘‘(a) REQUIREMENT FOR PLAN.—The Secretary of Defense shall

establish a dental insurance plan for military retirees, certain

unremarried surviving spouses, and dependents in accordance with

this section.

‘‘(b) PERSONS ELIGIBLE FOR PLAN.—The following persons are

eligible to enroll in the dental insurance plan established under

subsection (a):

‘‘(1) Members of the Armed Forces who are entitled to

retired pay.

‘‘(2) Members of the Retired Reserve who would be entitled

to retired pay under chapter 1223 of this title but for being

under 60 years of age.

‘‘(3) Eligible dependents of a member described in paragraph (1) or (2) who are covered by the enrollment of the

member in the plan.

‘‘(4) The unremarried surviving spouse and eligible child

dependents of a deceased member—

‘‘(A) who dies while in a status described in paragraph

(1) or (2); or

‘‘(B) who is described in section 1448(d)(1) of this title.

Procedures.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2589

‘‘(c) PREMIUMS.—(1) A member enrolled in the dental insurance

plan established under subsection (a) shall pay the premiums

charged for the insurance coverage.

‘‘(2) The amount of the premiums payable by a member entitled

to retired pay shall be deducted and withheld from the retired

pay and shall be disbursed to pay the premiums. The regulations

prescribed under subsection (h) shall specify the procedures for

payment of the premiums by other enrolled members and by

enrolled surviving spouses.

‘‘(d) BENEFITS AVAILABLE UNDER THE PLAN.—The dental insurance plan established under subsection (a) shall provide benefits

for basic dental care and treatment, including diagnostic services,

preventative services, basic restorative services (including

endodontics), surgical services, and emergency services.

‘‘(e) COVERAGE.—(1) The Secretary shall prescribe a minimum

required period for enrollment by a member or surviving spouse

in the dental insurance plan established under subsection (a).

‘‘(2) The dental insurance plan shall provide for voluntary

enrollment of participants and shall authorize a member or eligible

unremarried surviving spouse to enroll for self only or for self

and eligible dependents.

‘‘(f) TERMINATION OF ENROLLMENT.—The Secretary shall terminate the enrollment of any enrollee, and any eligible dependents

of the enrollee covered by the enrollment, in the dental insurance

plan established under subsection (a) upon the occurrence of the

following:

‘‘(1) In the case of an enrollment under subsection (b)(1),

termination of the member’s entitlement to retired pay.

‘‘(2) In the case of an enrollment under subsection (b)(2),

termination of the member’s status as a member of the Retired

Reserve.

‘‘(3) In the case of an enrollment under subsection (b)(4),

remarriage of the surviving spouse.

‘‘(g) CONTINUATION OF DEPENDENTS’ ENROLLMENT UPON DEATH

OF ENROLLEE.—Coverage of a dependent in the dental insurance

plan established under subsection (a) under an enrollment of a

member or a surviving spouse who dies during the period of enrollment shall continue until the end of that period and may be renewed

by (or for) the dependent, so long as the premium paid is sufficient

to cover continuation of the dependent’s enrollment. The Secretary

may terminate coverage of the dependent when the premiums paid

are no longer sufficient to cover continuation of the enrollment.

The Secretary shall prescribe in regulations under subsection (h)

the parties responsible for paying the remaining premiums due

on the enrollment and the manner for collection of the premiums.

‘‘(h) REGULATIONS.—The dental insurance plan established

under subsection (a) shall be administered under regulations prescribed by the Secretary of Defense, in consultation with the Secretary of Transportation.

‘‘(i) DEFINITIONS.—In this section:

‘‘(1) The term ‘eligible dependent’ means a dependent

described in subparagraph (A), (D), or (I) of section 1072(2)

of this title.

‘‘(2) The term ‘eligible child dependent’ means a dependent

described in subparagraph (D) or (I) of section 1072(2) of this

title.

‘‘(3) The term ‘retired pay’ includes retainer pay.’’.
110 STAT. 2590 PUBLIC LAW 104–201—SEPT. 23, 1996

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

is amended by inserting after the item relating to section 1076b

the following new item:

‘‘1076c. Dental insurance plan: certain retirees and their surviving spouses and

other dependents.’’.

(b) IMPLEMENTATION.—Beginning not later than October 1,

1997, the Secretary of Defense shall—

(1) offer members of the Armed Forces and other persons

described in subsection (b) of section 1076c of title 10, United

States Code (as added by subsection (a)(1) of this section),

the opportunity to enroll in the dental insurance plan required

under that section; and

(2) begin to provide benefits under the plan.

SEC. 704. PLAN FOR HEALTH CARE COVERAGE FOR CHILDREN WITH

MEDICAL CONDITIONS CAUSED BY PARENTAL EXPOSURE

TO CHEMICAL MUNITIONS WHILE SERVING AS MEMBERS

OF THE ARMED FORCES.

(a) PLAN REQUIRED.—The Secretary of Defense, in coordination

with the Secretary of Veterans Affairs, shall develop a plan for

ensuring the provision of medical care to any natural child of

a member of the Armed Forces (including former members and

members discharged or otherwise separated from active duty) who

has a congenital defect or catastrophic illness, proven to a reasonable degree of scientific certainty on the basis of scientific research

to have resulted from exposure of the member to a chemical warfare

agent or other hazardous material to which the member was

exposed during active military service.

(b) SUBMISSION TO CONGRESS.—Not later than 180 days after

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

shall submit the plan developed under subsection (a) to Congress.

(c) DEFINITIONS OF CONGENITAL DEFECT AND CATASTROPHIC

ILLNESS.—The Secretary of Defense shall prescribe in regulations

a definition of the terms ‘‘congenital defect’’ and ‘‘catastrophic illness’’ for the purposes of this section.

Subtitle B—TRICARE Program

SEC. 711. CHAMPUS PAYMENT LIMITS FOR TRICARE PRIME

ENROLLEES.

Section 1079(h)(4) of title 10, United States Code, is amended

in the second sentence by striking out ‘‘emergency’’.

SEC. 712. IMPROVED INFORMATION EXCHANGE BETWEEN MILITARY

TREATMENT FACILITIES AND TRICARE PROGRAM

CONTRACTORS.

(a) UNIFORM INTERFACES.—The Secretary of Defense shall

ensure that the automated medical information system being developed by the Department of Defense (known as the Composite Health

Care System) provides for uniform interfaces between information

systems of military treatment facilities and private contractors

under managed care programs of the TRICARE program. The uniform interface shall provide for a full electronic two-way exchange

of health care information between the military treatment facilities

and contractor information systems, including enrollment information, information regarding eligibility determinations, provider network

Regulations.

10 USC 1076c

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2591

information, appointment information, and information regarding the existence of third-party payers.

(b) AMENDMENT OF EXISTING CONTRACTS.—To assure a single

consistent source of information throughout the health care delivery

system of the uniformed services, the Secretary of Defense shall

amend each TRICARE program contract, with the consent of the

TRICARE program contractor and notwithstanding any requirement for competition, to require the contractor—

(1) to use software furnished under the Composite Health

Care System to record military treatment facility provider

appointments; and

(2) to record TRICARE program enrollment through direct

use of the Composite Health Care System software or through

the uniform two-way interface between the contractor and military treatment facilities systems, where applicable.

(c) DEFINITION OF TRICARE PROGRAM.—For purposes of this

section, the term ‘‘TRICARE program’’ means the managed health

care program that is established by the Secretary of Defense under

the authority of chapter 55 of title 10, United States Code, principally section 1097 of such title, and includes the competitive

selection of contractors to financially underwrite the delivery of

health care services under the Civilian Health and Medical Program

of the Uniformed Services.

SEC. 713. PLANS FOR MEDICARE SUBVENTION DEMONSTRATION

PROGRAMS.

(a) PROGRAM FOR ENROLLMENT IN TRICARE MANAGED CARE

OPTION.—Not later than September 6, 1996, the Secretary of

Defense and the Secretary of Health and Human Services shall

jointly submit to Congress and the President a report containing

a specific plan (including the recommendations of the Secretaries

required under subsection (b)) regarding the establishment of a

demonstration program under which—

(1) covered beneficiaries under chapter 55 of title 10, United

States Code, who are also entitled to benefits under part A

of the medicare program are permitted to enroll in the managed

care option of the TRICARE program; and

(2) the Secretary of Health and Human Services reimburses

the Secretary of Defense from the Medicare program on a

capitated basis for the costs of providing health care services

to military retirees who enroll.

(b) SPECIFIC ELEMENTS OF REPORT.—The report shall include

the following:

(1) The number of covered beneficiaries described in subsection (a) who are projected to participate in the demonstration

program and the minimum number of such participants necessary to conduct the demonstration program effectively.

(2) A plan for notifying such covered beneficiaries of their

eligibility for enrollment in the demonstration program and

for any other matters connected with enrollment.

(3) A recommendation for the duration of the demonstration

program.

(4) A recommendation for the geographic regions in which

the demonstration program should be conducted.

(5) The appropriate level of capitated reimbursement, and

a schedule for such reimbursement, from the Medicare program

Reports.
110 STAT. 2592 PUBLIC LAW 104–201—SEPT. 23, 1996

to the Department of Defense for health care services provided

enrollees in the demonstration program.

(6) An estimate of the amounts that, in the absence of

the demonstration program, would be required to be allocated

by the Department of Defense for the provision of health care

services to covered beneficiaries described in subsection (a)

who reside in the regions in which the demonstration program

is proposed to be conducted.

(7) An assessment of revisions to the allocation estimated

under paragraph (6) that would result from the conduct of

the demonstration program in such regions.

(8) An estimate of the cost to the Department of Defense

and to the Medicare program of providing health care services

to covered beneficiaries described in subsection (a) who enroll

in the demonstration program.

(9) An assessment of the likelihood of cost shifting among

the Department of Defense and the Medicare program under

the demonstration program.

(10) A proposal for mechanisms for reconciling and

reimbursing any improper payments among the Department

of Defense and the Medicare program under the demonstration

program.

(11) A methodology for evaluating the demonstration program, including cost analyses.

(12) As assessment of the extent to which the TRICARE

program is prepared to meet requirements of the Medicare

program for purposes of the demonstration program and the

provisions of law or regulation that would have to be waived

in order to facilitate the carrying out of the demonstration

program.

(13) An assessment of the impact of the demonstration

program on military readiness.

(14) Contingency plans for the provision of health care

services under the demonstration program in the event of the

mobilization of health care personnel.

(15) A recommendation of the reports that the Department

of Defense and the Department of Health and Human Services

should submit to Congress describing the conduct of the demonstration program.

(c) PROGRAM FOR ENROLLMENT IN TRICARE FEE-FOR-SERVICE

OPTION.—Not later than January 3, 1997, the Secretary of Defense

and the Secretary of Health and Human Services shall jointly

submit to Congress and the President a report on the feasibility

and advisability of expanding the demonstration program referred

to in subsection (a) so as to provide the Department of Defense

with reimbursement from the Medicare program on a fee-for-service

basis for health care services provided covered beneficiaries

described in subsection (a) who enroll in the demonstration program.

The report shall include a proposal for the expansion of the program

if the expansion is determined to be advisable.

Subtitle C—Uniformed Services Treatment

Facilities

SEC. 721. DEFINITIONS.

In this subtitle:

10 USC 1073

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2593

(1) The term ‘‘administering Secretaries’’ means the Secretary of Defense, the Secretary of Transportation, and the

Secretary of Health and Human Services.

(2) The term ‘‘agreement’’ means the agreement required

under section 722(b) between the Secretary of Defense and

a designated provider.

(3) The term ‘‘capitation payment’’ means an actuarially

sound payment for a defined set of health care services that

is established on a per enrollee per month basis.

(4) 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.

(5) The term ‘‘designated provider’’ means a public or nonprofit private entity that was a transferee of a Public Health

Service hospital or other station under section 987 of the Omnibus Budget Reconciliation Act of 1981 (Public Law 97–35; 42

U.S.C. 248b) and that, before the date of the enactment of

this Act, was deemed to be a facility of the uniformed services

for the purposes of chapter 55 of title 10, United States Code.

The term includes any legal successor in interest of the transferee.

(6) The term ‘‘enrollee’’ means a covered beneficiary who

enrolls with a designated provider.

(7) The term ‘‘health care services’’ means the health care

services provided under the health plan known as the

‘‘TRICARE PRIME’’ option under the TRICARE program.

(8) The term ‘‘Secretary’’ means the Secretary of Defense.

(9) 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. 722. INCLUSION OF DESIGNATED PROVIDERS IN UNIFORMED

SERVICES HEALTH CARE DELIVERY SYSTEM.

(a) INCLUSION IN SYSTEM.—The health care delivery system

of the uniformed services shall include the designated providers.

(b) AGREEMENTS TO PROVIDE MANAGED HEALTH CARE

SERVICES.—(1) After consultation with the other administering Secretaries, the Secretary of Defense shall negotiate and enter into

an agreement with each designated provider under which the designated provider will provide health care services in or through

managed care plans to covered beneficiaries who enroll with the

designated provider.

(2) The agreement shall be entered into on a sole source basis.

The Federal Acquisition Regulation, except for those requirements

regarding competition, issued pursuant to section 25(c) of the Office

of Federal Procurement Policy Act (41 U.S.C. 421(c)) shall apply

to the agreements as acquisitions of commercial items.

(3) The implementation of an agreement is subject to availability of funds for such purpose.

(c) EFFECTIVE DATE OF AGREEMENTS.—(1) Unless an earlier

effective date is agreed upon by the Secretary and the designated

provider, the agreement shall take effect upon the later of the

following:
110 STAT. 2594 PUBLIC LAW 104–201—SEPT. 23, 1996

(A) The date on which a managed care support contract

under the TRICARE program is implemented in the service

area of the designated provider.

(B) October 1, 1997.

(2) Notwithstanding paragraph (1), the designated provider

whose service area includes Seattle, Washington, shall implement

its agreement as soon as the agreement permits.

(d) TEMPORARY CONTINUATION OF EXISTING PARTICIPATION

AGREEMENTS.—The Secretary shall extend the participation agreement of a designated provider in effect immediately before the

date of the enactment of this Act under section 718(c) of the

National Defense Authorization Act for Fiscal Year 1991 (Public

Law 101–510; 42 U.S.C. 248c) until the agreement required by

this section takes effect under subsection (c).

(e) SERVICE AREA.—The Secretary may not reduce the size

of the service area of a designated provider below the size of

the service area in effect as of September 30, 1996.

(f) COMPLIANCE WITH ADMINISTRATIVE REQUIREMENTS.—(1)

Unless otherwise agreed upon by the Secretary and a designated

provider, the designated provider shall comply with necessary and

appropriate administrative requirements established by the Secretary for other providers of health care services and requirements

established by the Secretary of Health and Human Services for

risk-sharing contractors under section 1876 of the Social Security

Act (42 U.S.C. 1395mm). The Secretary and the designated provider

shall determine and apply only such administrative requirements

as are minimally necessary and appropriate. A designated provider

shall not be required to comply with a law or regulation of a

State government requiring licensure as a health insurer or health

maintenance organization.

(2) A designated provider may not contract out more than

five percent of its primary care enrollment without the approval

of the Secretary, except in the case of primary care contracts

between a designated provider and a primary care contractor in

force on the date of the enactment of this Act.

SEC. 723. PROVISION OF UNIFORM BENEFIT BY DESIGNATED

PROVIDERS.

(a) UNIFORM BENEFIT REQUIRED.—A designated provider shall

offer to enrollees the health benefit option prescribed and implemented by the Secretary under section 731 of the National Defense

Authorization Act for Fiscal Year 1994 (Public Law 103–160; 10

U.S.C. 1073 note), including accompanying cost-sharing requirements.

(b) TIME FOR IMPLEMENTATION OF BENEFIT.—A designated provider shall offer the health benefit option described in subsection

(a) to enrollees upon the later of the following:

(1) The date on which health care services within the

health care delivery system of the uniformed services are rendered through the TRICARE program in the region in which

the designated provider operates.

(2) October 1, 1997.

(c) ADJUSTMENTS.—The Secretary may establish a later date

under subsection (b)(2) or prescribe reduced cost-sharing requirements for enrollees.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2595

SEC. 724. ENROLLMENT OF COVERED BENEFICIARIES.

(a) FISCAL YEAR 1997 LIMITATION.—(1) During fiscal year 1997,

the number of covered beneficiaries who are enrolled in managed

care plans offered by designated providers may not exceed the

number of such enrollees as of October 1, 1995.

(2) The Secretary may waive the limitation under paragraph

(1) if the Secretary determines that additional enrollment authority

for a designated provider is required to accommodate covered beneficiaries who are dependents of members of the uniformed services

entitled to health care under section 1074(a) of title 10, United

States Code.

(b) PERMANENT LIMITATION.—For each fiscal year beginning

after September 30, 1997, the number of enrollees in managed

care plans offered by designated providers may not exceed 110

percent of the number of such enrollees as of the first day of

the immediately preceding fiscal year. The Secretary may waive

this limitation as provided in subsection (a)(2).

(c) RETENTION OF CURRENT ENROLLEES.—An enrollee in the

managed care plan of a designated provider as of September 30,

1997, or such earlier date as the designated provider and the

Secretary may agree upon, shall continue receiving services from

the designated provider pursuant to the agreement entered into

under section 722 unless the enrollee disenrolls from the designated

provider. Except as provided in subsection (e), the administering

Secretaries may not disenroll such an enrollee unless the

disenrollment is agreed to by the Secretary and the designated

provider.

(d) ADDITIONAL ENROLLMENT AUTHORITY.—Other covered beneficiaries may also receive health care services from a designated

provider, except that the designated provider may market such

services to, and enroll, only those covered beneficiaries who—

(1) do not have other primary health insurance coverage

(other than Medicare coverage) covering basic primary care

and inpatient and outpatient services; or

(2) are enrolled in the direct care system under the

TRICARE program, regardless of whether the covered beneficiaries were users of the health care delivery system of the

uniformed services in prior years.

(e) SPECIAL RULE FOR MEDICARE-ELIGIBLE BENEFICIARIES.—

If a covered beneficiary who desires to enroll in the managed

care program of a designated provider is also entitled to hospital

insurance benefits under part A of title XVIII of the Social Security

Act (42 U.S.C. 1395c et seq.), the covered beneficiary shall elect

whether to receive health care services as an enrollee or under

part A of title XVIII of the Social Security Act. The Secretary

may disenroll an enrollee who subsequently violates the election

made under this subsection and receives benefits under part A

of title XVIII of the Social Security Act.

(f) INFORMATION REGARDING ELIGIBLE COVERED BENEFICIARIES.—The Secretary shall provide, in a timely manner, a

designated provider with an accurate list of covered beneficiaries

within the marketing area of the designated provider to whom

the designated provider may offer enrollment.

SEC. 725. APPLICATION OF CHAMPUS PAYMENT RULES.

(a) APPLICATION OF PAYMENT RULES.—Subject to subsection

(b), the Secretary shall require a private facility or health care
110 STAT. 2596 PUBLIC LAW 104–201—SEPT. 23, 1996

provider that is a health care provider under the Civilian Health

and Medical Program of the Uniformed Services to apply the payment rules described in section 1074(c) of title 10, United States

Code, in imposing charges for health care that the private facility

or provider provides to enrollees of a designated provider.

(b) AUTHORIZED ADJUSTMENTS.—The payment rules imposed

under subsection (a) shall be subject to such modifications as the

Secretary considers appropriate. The Secretary may authorize a

lower rate than the maximum rate that would otherwise apply

under subsection (a) if the lower rate is agreed to by the designated

provider and the private facility or health care provider.

(c) REGULATIONS.—The Secretary shall prescribe regulations

to implement this section after consultation with the other administering Secretaries.

(d) CONFORMING AMENDMENT.—Section 1074 of title 10, United

States Code, is amended by striking out subsection (d).

SEC. 726. PAYMENTS FOR SERVICES.

(a) FORM OF PAYMENT.—Unless otherwise agreed to by the

Secretary and a designated provider, the form of payment for health

care services provided by a designated provider shall be on a full

risk capitation payment basis. The capitation payments shall be

negotiated and agreed upon by the Secretary and the designated

provider. In addition to such other factors as the parties may

agree to apply, the capitation payments shall be based on the

utilization experience of enrollees and competitive market rates

for equivalent health care services for a comparable population

to such enrollees in the area in which the designated provider

is located.

(b) LIMITATION ON TOTAL PAYMENTS.—Total capitation payments for health care services to a designated provider shall not

exceed an amount equal to the cost that would have been incurred

by the Government if the enrollees had received such health care

services through a military treatment facility, the TRICARE program, or the Medicare program, as the case may be.

(c) ESTABLISHMENT OF PAYMENT RATES ON ANNUAL BASIS.— The Secretary and a designated provider shall establish capitation

payments on an annual basis, subject to periodic review for actuarial

soundness and to adjustment for any adverse or favorable selection

reasonably anticipated to result from the design of the program

under this subtitle.

(d) ALTERNATIVE BASIS FOR CALCULATING PAYMENTS.—After

September 30, 1999, the Secretary and a designated provider may

mutually agree upon a new basis for calculating capitation payments.

SEC. 727. REPEAL OF SUPERSEDED AUTHORITIES.

(a) REPEALS.—The following provisions of law are repealed:

(1) Section 911 of the Military Construction Authorization

Act, 1982 (42 U.S.C. 248c).

(2) Section 1252 of the Department of Defense Authorization Act, 1984 (42 U.S.C. 248d).

(3) Section 718(c) of the National Defense Authorization

Act for Fiscal Year 1991 (Public Law 101–510; 42 U.S.C. 248c

note).

(4) Section 726 of the National Defense Authorization Act

for Fiscal Year 1996 (Public Law 104–106; 42 U.S.C. 248c

note).
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2597

(b) EFFECTIVE DATE.—The amendments made by paragraphs

(1), (2), and (3) of subsection (a) shall take effect on October 1,

1997.

Subtitle D—Other Changes to Existing

Laws Regarding Health Care Management

SEC. 731. AUTHORITY TO WAIVE CHAMPUS EXCLUSION REGARDING

NONMEDICALLY NECESSARY TREATMENT IN CONNECTION

WITH CERTAIN CLINICAL TRIALS.

(a) WAIVER AUTHORITY.—Paragraph (13) of section 1079(a) of

title 10, United States Code, is amended—

(1) by striking out ‘‘any service’’ and inserting in lieu

thereof ‘‘Any service’’;

(2) by striking out the semicolon at the end and inserting

in lieu thereof a period; and

(3) by adding at the end the following: ‘‘Pursuant to an

agreement with the Secretary of Health and Human Services

and under such regulations as the Secretary of Defense may

prescribe, the Secretary of Defense may waive the operation

of this paragraph in connection with clinical trials sponsored

or approved by the National Institutes of Health if the Secretary

of Defense determines that such a waiver will promote access

by covered beneficiaries to promising new treatments and

contribute to the development of such treatments.’’.

(b) CLERICAL AMENDMENTS.—Such section is further amended—

(1) in the matter preceding paragraph (1), by striking out

‘‘except that—’’ and inserting in lieu thereof ‘‘except as follows:’’;

(2) by capitalizing the first letter of the first word of each

of paragraphs (1) through (17);

(3) by striking out the semicolon at the end of each of

paragraphs (1) through (12) and paragraphs (14) and (15) and

inserting in lieu thereof a period; and

(4) in paragraph (16), by striking out ‘‘; and’’ and inserting

in lieu thereof a period.

SEC. 732. EXCEPTION TO MAXIMUM ALLOWABLE PAYMENTS TO

INDIVIDUAL HEALTH-CARE PROVIDERS UNDER CHAMPUS.

Section 1079(h) of title 10, United States Code, is amended—

(1) by redesignating paragraph (5) as paragraph (6); and

(2) by inserting after paragraph (4) the following new paragraph:

‘‘(5) In addition to the authority provided under paragraph

(4), the Secretary may authorize the commander of a facility of

the uniformed services, the lead agent (if other than the commander), and the health care contractor to modify the payment

limitations under paragraph (1) for certain health care providers

when necessary to ensure both the availability of certain services

for covered beneficiaries and lower costs than would otherwise

be incurred to provide the services.’’.

SEC. 733. CODIFICATION OF ANNUAL AUTHORITY TO CREDIT

CHAMPUS REFUNDS TO CURRENT YEAR APPROPRIATION.

(a) CREDITS TO CHAMPUS ACCOUNTS.—(1) Chapter 55 of title

10, United States Code, is amended by inserting after section 1079

the following new section:
110 STAT. 2598 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘§ 1079a. CHAMPUS: treatment of refunds and other

amounts collected

‘‘All refunds and other amounts collected in the administration

of the Civilian Health and Medical Program of the Uniformed

Services shall be credited to the appropriation available for that

program for the fiscal year in which the refund or amount is

collected.’’.

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

is amended by inserting after the item relating to section 1079

the following new item:

‘‘1079a. CHAMPUS: treatment of refunds and other amounts collected.’’.

(b) CONFORMING REPEAL.—Section 8094 of the Department of

Defense Appropriations Act, 1996 (Public Law 104–61; 109 Stat.

671), is repealed.

SEC. 734. EXCEPTIONS TO REQUIREMENTS REGARDING OBTAINING

NONAVAILABILITY-OF-HEALTH-CARE STATEMENTS.

(a) REFERENCE TO INPATIENT MEDICAL CARE.—(1) Section

1080(a) of title 10, United States Code, is amended by inserting

‘‘inpatient’’ before ‘‘medical care’’ in the first sentence.

(2) Section 1086(e) of such title is amended in the first sentence

by striking out ‘‘benefits’’ and inserting in lieu thereof ‘‘inpatient

medical care’’.

(b) WAIVERS AND EXCEPTIONS TO REQUIREMENTS.—(1) Section

1080 of such title is amended by adding at the end the following

new subsection:

‘‘(c) WAIVERS AND EXCEPTIONS TO REQUIREMENTS.—(1) A covered beneficiary enrolled in a managed care plan offered pursuant

to any contract or agreement under this chapter for the provision

of health care services shall not be required to obtain a nonavailability-of-health-care statement as a condition for the receipt of health

care.

‘‘(2) The Secretary of Defense may waive the requirement to

obtain nonavailability-of-health-care statements following an

evaluation of the effectiveness of such statements in optimizing

the use of facilities of the uniformed services.’’.

(2) Section 1086(e) of such title is amended in the last sentence

by striking out ‘‘section 1080(b)’’ and inserting in lieu thereof ‘‘subsections (b) and (c) of section 1080’’.

(c) CONFORMING AMENDMENTS.—Section 1080(b) of such title

is amended—

(1) by striking out ‘‘NONAVAILABILITY OF HEALTH CARE

STATEMENTS’’ and inserting in lieu thereof ‘‘NONAVAILABILITY- OF-HEALTH-CARE STATEMENTS’’; and

(2) by striking out ‘‘nonavailability of health care statement’’ and inserting in lieu thereof ‘‘nonavailability-of-healthcare statement’’.

SEC. 735. ENHANCEMENT OF THIRD-PARTY COLLECTION AND

SECONDARY PAYER AUTHORITIES UNDER CHAMPUS.

(a) RETENTION AND USE BY TREATMENT FACILITIES OF AMOUNTS

COLLECTED.—Subsection (g)(1) of section 1095 of title 10, United

States Code, is amended by inserting ‘‘or through’’ after ‘‘provided

at’’.

(b) EXPANSION OF DEFINITION OF THIRD-PARTY PAYER.—Subsection (h) of such section is amended—
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2599

(1) in the first sentence of paragraph (1), by inserting

‘‘and a workers’ compensation program or plan’’ before the

period; and

(2) in paragraph (2)—

(A) by striking out ‘‘organization and’’ and inserting

in lieu thereof a ‘‘organization,’’; and

(B) by inserting before the period at the end the following: ‘‘, and a personal injury protection plan or medical

payments benefit plan for personal injuries resulting from

the operation of a motor vehicle’’.

(c) APPLICABILITY OF SECONDARY PAYER REQUIREMENT.—Section 1079(j)(1) of such title is amended by inserting after ‘‘or health

plan’’ the following: ‘‘, including any plan offered by a third-party

payer (as defined in section 1095(h)(1) of this title),’’.

Subtitle E—Other Matters

SEC. 741. ALTERNATIVES TO ACTIVE DUTY SERVICE OBLIGATION

UNDER ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM AND

UNIFORMED SERVICES UNIVERSITY OF THE HEALTH

SCIENCES.

(a) ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP AND

FINANCIAL ASSISTANCE PROGRAM.—Subsection (e) of section 2123

of title 10, United States Code, is amended to read as follows:

‘‘(e)(1) A member of the program who is relieved of the member’s

active duty obligation under this subchapter before the completion

of that active duty obligation may be given, with or without the

consent of the member, any of the following alternative obligations,

as determined by the Secretary of the military department concerned:

‘‘(A) A service obligation in another armed force for a

period of time not less than the member’s remaining active

duty service obligation.

‘‘(B) A service obligation in a component of the Selected

Reserve for a period not less than twice as long as the member’s

remaining active duty service obligation.

‘‘(C) Repayment to the Secretary of Defense of a percentage

of the total cost incurred by the Secretary under this subchapter

on behalf of the member equal to the percentage of the member’s total active duty service obligation being relieved, plus

interest.

‘‘(2) In addition to the alternative obligations specified in paragraph (1), if the member is relieved of an active duty obligation

by reason of the separation of the member because of a physical

disability, the Secretary of the military department concerned may

give the member a service obligation as a civilian employee

employed as a health care professional in a facility of the uniformed

services for a period of time equal to the member’s remaining

active duty service obligation.

‘‘(3) The Secretary of Defense shall prescribe regulations

describing the manner in which an alternative obligation may be

given under this subsection.’’.

(b) UNIFORMED SERVICES UNIVERSITY OF THE HEALTH

SCIENCES.—Section 2114 of title 10, United States Code is amended

by adding at the end the following new subsection:

Regulations.
110 STAT. 2600 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(h) A graduate of the University who is relieved of the graduate’s active-duty service obligation under subsection (b) before

the completion of that active-duty service obligation may be given,

with or without the consent of the graduate, an alternative obligation in the same manner as provided in subparagraphs (A) and

(B) of paragraph (1) of section 2123(e)(1) of this title or paragraph

(2) of such section for members of the Armed Forces Health Professions Scholarship and Financial Assistance program.’’.

(c) APPLICATION OF AMENDMENTS.—The amendments made by

this section shall apply with respect to individuals who first become

members of the Armed Forces Health Professions Scholarship and

Financial Assistance program or students of the Uniformed Services

University of the Health Sciences on or after October 1, 1996.

(d) TRANSITION PROVISION.—(1) In the case of any member

of the Armed Forces Health Professions Scholarship and Financial

Assistance program who, as of October 1, 1996, is serving an active

duty obligation under the program or is incurring an active duty

obligation as a participant in the program, and who is subsequently

relieved of the active duty obligation before the completion of the

obligation, the alternative obligations authorized by the amendment

made by subsection (a) may be used by the Secretary of the military

department concerned with the agreement of the member.

(2) In the case of any person who, as of October 1, 1996,

is serving an active-duty service obligation as a graduate of the

Uniformed Services University of the Health Sciences or is incurring

an active-duty service obligation as a student of the University,

and who is subsequently relieved of the active-duty service obligation before the completion of the obligation, the alternative obligations authorized by the amendment made by subsection (b) may

be implemented by the Secretary of Defense with the agreement

of the person.

(e) REPORT ON UTILIZATION OF GRADUATES OF UNIVERSITY.—

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 the utilization by the Department of Defense of graduates of

the Uniformed Services University of the Health Sciences. The

report shall include a discussion of means of ensuring that graduates of the University have received training in medical specialties

for which the Department has particular need.

SEC. 742. EXTERNAL PEER REVIEW FOR DEFENSE HEALTH PROGRAM

EXTRAMURAL MEDICAL RESEARCH INVOLVING HUMAN

SUBJECTS.

(a) ESTABLISHMENT OF EXTERNAL PEER REVIEW PROCESS.—

The Secretary of Defense shall establish a peer review process

that will use persons who are not officers or employees of the

Government to review the research protocols of medical research

projects.

(b) PEER REVIEW REQUIREMENTS.—Funds of the Department

of Defense may not be obligated or expended for any medical

research project unless the research protocol for the project has

been approved by the external peer review process established

under subsection (a).

(c) MEDICAL RESEARCH PROJECT DEFINED.—For purposes of

this section, the term ‘‘medical research project’’ means a research

project that—

(1) involves the participation of human subjects;

10 USC 1071

note.

10 USC 2114

note.

10 USC 2123

note.

10 USC 2114

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2601

(2) is conducted solely by a non-Federal entity; and

(3) is funded through the Defense Health Program account.

(d) EFFECTIVE DATE.—The peer review requirements of subsection (b) shall take effect on October 1, 1996, and, except as

provided in subsection (e), shall apply to all medical research

projects proposed funded on or after that date, including medical

research projects funded pursuant to any requirement of law

enacted before, on, or after that date.

(e) EXCEPTIONS.—Only the following medical research projects

shall be exempt from the peer review requirements of subsection (b):

(1) A medical research project that the Secretary determines has been substantially completed by October 1, 1996.

(2) A medical research project funded pursuant to any

provision of law enacted on or after that date if the provision

of law specifically refers to this section and specifically states

that the peer review requirements do not apply.

SEC. 743. INDEPENDENT RESEARCH REGARDING GULF WAR

SYNDROME.

(a) DEFINITIONS.—For purposes of this section:

(1) The term ‘‘Gulf War service’’ means service on active

duty as a member of the Armed Forces in the Southwest

Asia theater of operations during the Persian Gulf War.

(2) The term ‘‘Gulf War syndrome’’ means the complex

of illnesses and symptoms commonly known as Gulf War syndrome.

(3) The term ‘‘Persian Gulf War’’ has the meaning given

that term in section 101(33) of title 38, United States Code.

(b) RESEARCH.—The Secretary of Defense shall provide, by contract, grant, or other transaction, for scientific research to be carried

out by entities independent of the Federal Government on possible

causal relationships between Gulf War syndrome and—

(1) the possible exposures of members of the Armed Forces

to chemical warfare agents or other hazardous materials during

Gulf War service; and

(2) the use by the Department of Defense during the Persian Gulf War of combinations of various inoculations and

investigational new drugs.

(c) PROCEDURES FOR AWARDING GRANTS.—The Secretary shall

prescribe the procedures to be used to make research awards under

subsection (b). The procedures shall—

(1) include a comprehensive, independent peer-review

process for the evaluation of proposals for scientific research

that are submitted to the Department of Defense; and

(2) provide for the final selection of proposals for award

to be based on the scientific merit and program relevance

of the proposed research.

(d) AVAILABILITY OF FUNDS.—Of the amount authorized to be

appropriated under section 301(21) for defense medical programs,

$10,000,000 is available for research under subsection (b).

SEC. 744. COMPTROLLER GENERAL REVIEW OF HEALTH CARE ACTIVITIES OF DEPARTMENT OF DEFENSE RELATING TO GULF

WAR ILLNESSES.

(a) MEDICAL RESEARCH AND CLINICAL CARE PROGRAMS.—The

Comptroller General shall analyze the effectiveness of the medical

research programs and clinical care programs of the Department

10 USC 1074

note.

Applicability.
110 STAT. 2602 PUBLIC LAW 104–201—SEPT. 23, 1996

of Defense that relate to illnesses that might have been contracted

by members of the Armed Forces as a result of service in the

Southwest Asia theater of operations during the Persian Gulf War.

(b) POLICIES REGARDING INVESTIGATIONAL NEW DRUGS.—The

Comptroller General shall analyze the scope and effectiveness of

the policies of the Department of Defense with respect to—

(1) the use of investigational new drugs during the Persian

Gulf War to treat members of the Armed Forces who served

in the Southwest Asia theater of operations; and

(2) the current use of investigational new drugs to treat

illnesses referred to in subsection (a).

(c) ADMINISTRATION OF MEDICAL RECORDS.—The Comptroller

General shall analyze the administration of medical records by

the military departments in order to assess the extent to which

such records accurately reflect the pre-deployment medical assessments, immunization records, informed consent releases, complaints

during routine sick call, emergency room visits, visits with unit

medics during deployment, and other relevant medical information

relating to the members and former members referred to in

subsection (a) with respect to the illnesses referred to in that

subsection.

(d) REPORTS.—Not later than March 1, 1997, the Comptroller

General shall submit to Congress a separate report on each of

the analyses required under subsections (a), (b), and (c).

SEC. 745. REPORT REGARDING SPECIALIZED TREATMENT FACILITY

PROGRAM.

Not later than April 1, 1997, the Secretary of Defense shall

submit to Congress a report evaluating the impact on the military

health care system of limiting the service area of a facility designated as part of the specialized treatment facility program under

section 1105 of title 10, United States Code, to not more than

100 miles from the facility.

SEC. 746. TUDY OF MEANS OF ENSURING UNIFORMITY IN PROVISION

OF MEDICAL AND DENTAL CARE FOR MEMBERS OF

RESERVE COMPONENTS.

(a) STUDY.—(1) In consultation with the Secretary of Transportation, the Secretary of Defense shall conduct a study of means

of improving the provision of medical and dental care to members

of the reserve components referred to in paragraph (2) in order

to ensure uniformity and consistency in the provision of such care

to such members.

(2) The members of the reserve components referred to in

paragraph (1) are the following:

(A) Members on active duty, including active duty for training and annual training duty.

(B) Members on full-time National Guard duty.

(C) Members on inactive-duty training, regardless of

whether such members are in a pay or nonpay status.

(b) REPORT.—Not later than 180 days after the date of the

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

Congress a report on the study conducted under subsection (a).

The report shall include such recommendations (including recommendations for legislation) as the Secretary considers appropriate.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2603

SEC. 747. SENSE OF CONGRESS REGARDING TAX TREATMENT OF

ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP

AND FINANCIAL ASSISTANCE PROGRAM.

It is the sense of Congress that the Secretary of Defense should

work with the Secretary of the Treasury to interpret section 117

of the Internal Revenue Code of 1986 so that the limitation on

the amount of a qualified scholarship or qualified tuition reduction

excluded from gross income does not apply to any portion of a

scholarship or financial assistance provided by the Secretary of

Defense to a person enrolled in the Armed Forces Health Professions

Scholarship and Financial Assistance program under subchapter

I of chapter 105 of title 10, United States Code.

TITLE VIII—ACQUISITION POLICY,

ACQUISITION MANAGEMENT, AND

RELATED MATTERS

Subtitle A—Acquisition Management

Sec. 801. Procurement technical assistance programs.

Sec. 802. Extension of pilot mentor-protege program.

Sec. 803. Authority to waive certain requirements for defense acquisition pilot programs. Sec. 804. Modification of authority to carry out certain prototype projects.

Sec. 805. Increase in threshold amounts for major systems.

Sec. 806. Revisions in information required to be included in selected acquisition

reports.

Sec. 807. Increase in simplified acquisition threshold for humanitarian or peacekeeping operations.

Sec. 808. Expansion of audit reciprocity among Federal agencies to include postaward audits.

Sec. 809. Excessive compensation of certain contractor personnel.

Sec. 810. Exception to prohibition on procurement of foreign goods.

Subtitle B—Other Matters

Sec. 821. Prohibition on release of contractor proposals under Freedom of Information Act.

Sec. 822. Amendments relating to reports on procurement regulatory activity.

Sec. 823. Amendment of multiyear limitation on contracts for inspection, maintenance, and repair.

Sec. 824. Streamlined notice requirements to contractors and employees regarding

termination or substantial reduction in contracts under major defense

programs.

Sec. 825. Repeal of notice requirements for substantially or seriously affected parties in downsizing efforts.

Sec. 826. Study of effectiveness of defense mergers.

Sec. 827. Annual report relating to Buy American Act.

Sec. 828. Foreign environmental technology.

Sec. 829. Assessment of national defense technology and industrial base and

dependency of base on supplies available only from foreign countries.

Sec. 830. Expansion of report on implementation of automated information systems

to include additional matters regarding information resources management.

Sec. 831. Year 2000 software conversion.

Sec. 832. Procurement from firms in industrial base for production of small arms.

Sec. 833. Cable television franchise agreements.

Subtitle A—Acquisition Management

SEC. 801. 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.
110 STAT. 2604 PUBLIC LAW 104–201—SEPT. 23, 1996

(b) SPECIFIC PROGRAMS.—Of the amounts made available pursu- ant to subsection (a), $600,000 shall be available for fiscal year

1997 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. 802. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

Section 831(j) of the National Defense Authorization Act for

Fiscal Year 1991 (10 U.S.C. 2302 note) is amended—

(1) in paragraph (1), by striking out ‘‘1995’’ and inserting

in lieu thereof ‘‘1998’’; and

(2) in paragraph (2), by striking out ‘‘1996’’ and inserting

in lieu thereof ‘‘1999’’.

SEC. 803. AUTHORITY TO WAIVE CERTAIN REQUIREMENTS FOR

DEFENSE ACQUISITION PILOT PROGRAMS.

(a) AUTHORITY.—The Secretary of Defense may waive sections

2399, 2403, 2432, and 2433 of title 10, United States Code, in

accordance with this section for any defense acquisition program

designated by the Secretary of Defense for participation in the

defense acquisition pilot program authorized by section 809 of the

National Defense Authorization Act for Fiscal Year 1991 (Public

Law 101–510; 10 U.S.C. 2430 note).

(b) OPERATIONAL TEST AND EVALUATION.—The Secretary of

Defense may waive the requirements for operational test and

evaluation for such a defense acquisition program as set forth

in section 2399 of title 10, United States Code, if the Secretary—

(1) determines (without delegation) that such test would

be unreasonably expensive or impractical;

(2) develops a suitable alternate operational test program

for the system concerned;

(3) describes in the test and evaluation master plan, as

approved by the Director of Operational Test and Evaluation,

the method of evaluation that will be used to evaluate whether

the system will be effective and suitable for combat; and

(4) submits to the congressional defense committees a

report containing the determination that was made under paragraph (1), a justification for that determination, and a copy

of the plan required by paragraph (3).

(c) CONTRACTOR GUARANTEES FOR MAJOR WEAPONS SYSTEMS.— The Secretary of Defense may waive the requirements of section

2403 of title 10, United States Code, for such a defense acquisition

program if an alternative guarantee is used that ensures high

quality weapons systems.

(d) SELECTED ACQUISITION REPORTS.—The Secretary of Defense

may waive the requirements of sections 2432 and 2433 of title

10, United States Code, for such a defense acquisition program

if the Secretary provides a single annual report to Congress at

the end of each fiscal year that describes the status of the program

in relation to the baseline description for the program established

under section 2435 of such title.

Reports.

10 USC 2430

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2605

SEC. 804. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN

PROTOTYPE PROJECTS.

(a) AUTHORIZED OFFICIALS.—(1) Subsection (a) of section 845

of the National Defense Authorization Act for Fiscal Year 1994

(Public Law 103–160; 107 Stat. 1721; 10 U.S.C. 2371 note) is

amended by inserting ‘‘, the Secretary of a military department,

or any other official designated by the Secretary of Defense’’ after

‘‘Agency’’.

(2) Subsection (b)(2) of such section is amended to read as

follows:

‘‘(2) To the maximum extent practicable, competitive procedures

shall be used when entering into agreements to carry out projects

under subsection (a).’’.

(b) EXTENSION OF AUTHORITY.—Subsection (c) of such section

is amended by striking out ‘‘terminate’’ and all that follows and

inserting in lieu thereof ‘‘terminate at the end of September 30,

1999.’’.

(c) CONFORMING AND TECHNICAL AMENDMENTS.—Section 845

of such Act is further amended—

(1) in subsection (b)—

(A) in paragraph (1), by striking out ‘‘(c)(2) and (c)(3)

of such section 2371, as redesignated by section

827(b)(1)(B),’’ and inserting in lieu thereof ‘‘(e)(2) and (e)(3)

of such section 2371’’; and

(B) in paragraph (2), by inserting after ‘‘Director’’ the

following: ‘‘, Secretary, or other official’’; and

(2) in subsection (c), by striking out ‘‘of the Director’’.

SEC. 805. INCREASE IN THRESHOLD AMOUNTS FOR MAJOR SYSTEMS.

(a) INCREASE AND ADJUSTMENT.—Chapter 137 of title 10, United

States Code, is amended—

(1) in section 2302(5), by striking out the third sentence

and inserting in lieu thereof the following: ‘‘A system shall

be considered a major system if (A) the conditions of section

2302d of this title are satisfied, or (B) the system is designated

a ‘major system’ by the head of the agency responsible for

the system.’’; and

(2) by inserting after section 2302c the following:

‘‘§ 2302d. Major system: definitional threshold amounts

‘‘(a) DEPARTMENT OF DEFENSE SYSTEMS.—For purposes of section 2302(5) of this title, a system for which the Department of

Defense is responsible shall be considered a major system if—

‘‘(1) the total expenditures for research, development, test,

and evaluation for the system are estimated to be more than

$115,000,000 (based on fiscal year 1990 constant dollars); or

‘‘(2) the eventual total expenditure for procurement of more

than $540,000,000 (based on fiscal year 1990 constant dollars).

‘‘(b) CIVILIAN AGENCY SYSTEMS.—For purposes of section

2302(5) of this title, a system for which a civilian agency is responsible shall be considered a major system if total expenditures for

the system are estimated to exceed the greater of—

‘‘(1) $750,000 (based on fiscal year 1980 constant

dollars); or

‘‘(2) the dollar threshold for a ‘major system’ established

by the agency pursuant to Office of Management and Budget

(OMB) Circular A–109, entitled ‘Major Systems Acquisitions’.
110 STAT. 2606 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(c) ADJUSTMENT AUTHORITY.—(1) The Secretary of Defense

may adjust the amounts and the base fiscal year provided in subsection (a) on the basis of Department of Defense escalation rates.

‘‘(2) An amount, as adjusted under paragraph (1), that is not

evenly divisible by $5,000,000 shall be rounded to the nearest

multiple of $5,000,000. In the case of an amount that is evenly

divisible by $2,500,000 but not evenly divisible by $5,000,000, the

amount shall be rounded to the next higher multiple of $5,000,000.

‘‘(3) An adjustment under this subsection shall be effective

after the Secretary transmits to the Committee on Armed Services

of the Senate and the Committee on National Security of the

House of Representatives a written notification of the adjustment.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating

to section 2302c the following:

‘‘2302d. Major system: definitional threshold amounts.’’.

SEC. 806. REVISIONS IN INFORMATION REQUIRED TO BE INCLUDED

IN SELECTED ACQUISITION REPORTS.

Section 2432 of title 10, United States Code, is amended—

(1) in subsection (c)(1)—

(A) by striking out ‘‘and’’ at the end of subparagraph (B);

(B) by redesignating subparagraph (C) as subparagraph (D); and

(C) by inserting after subparagraph (B) the following

new subparagraph (C):

‘‘(C) the current procurement unit cost for each major

defense acquisition program included in the report and the

history of that cost from the date the program was first included

in a Selected Acquisition Report to the end of the quarter

for which the current report is submitted; and’’; and

(2) in subsection (e), by striking out paragraph (8) and

redesignating paragraph (9) as paragraph (8).

SEC. 807. INCREASE IN SIMPLIFIED ACQUISITION THRESHOLD FOR

HUMANITARIAN OR PEACEKEEPING OPERATIONS.

(a) ARMED SERVICES ACQUISITIONS.—Section 2302(7) of title

10, United States Code, is amended—

(1) by inserting ‘‘(A)’’ after ‘‘(7)’’;

(2) by inserting after ‘‘contingency operation’’ the following:

‘‘or a humanitarian or peacekeeping operation’’; and

(3) by adding at the end the following:

‘‘(B) In subparagraph (A), the term ‘humanitarian or peacekeeping operation’ means a military operation in support of

the provision of humanitarian or foreign disaster assistance

or in support of a peacekeeping operation under chapter VI

or VII of the Charter of the United Nations. The term does

not include routine training, force rotation, or stationing.’’.

(b) CIVILIAN AGENCY ACQUISITIONS.—Section 309(d) of the

Federal Property and Administrative Services Act of 1949 (41 U.S.C.

259(d)) is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(d)’’;

(2) by inserting after ‘‘contingency operation’’ the following:

‘‘or a humanitarian or peacekeeping operation’’; and

(3) by adding at the end the following:

‘‘(2) In paragraph (1):

Notification.

Effective date.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2607

‘‘(A) The term ‘contingency operation’ has the meaning

given such term in section 101(a) of title 10, United States

Code.

‘‘(B) The term ‘humanitarian or peacekeeping operation’

means a military operation in support of the provision of

humanitarian or foreign disaster assistance or in support of

a peacekeeping operation under chapter VI or VII of the Charter

of the United Nations. The term does not include routine training, force rotation, or stationing.’’.

SEC. 808. EXPANSION OF AUDIT RECIPROCITY AMONG FEDERAL

AGENCIES TO INCLUDE POST-AWARD AUDITS.

(a) ARMED SERVICES ACQUISITIONS.—Subsection (d) of section

2313 of title 10, United States Code, is amended to read as follows:

‘‘(d) LIMITATION ON AUDITS RELATING TO INDIRECT COSTS.— The head of an agency may not perform an audit of indirect costs

under a contract, subcontract, or modification before or after entering into the contract, subcontract, or modification in any case in

which the contracting officer determines that the objectives of the

audit can reasonably be met by accepting the results of an audit

that was conducted by any other department or agency of the

Federal Government within one year preceding the date of the

contracting officer’s determination.’’.

(b) CIVILIAN AGENCY ACQUISITIONS.—Subsection (d) of section

304C of the Federal Property and Administrative Services Act of

1949 (41 U.S.C. 254d) is amended to read as follows:

‘‘(d) LIMITATION ON AUDITS RELATING TO INDIRECT COSTS.— An executive agency may not perform an audit of indirect costs

under a contract, subcontract, or modification before or after entering into the contract, subcontract, or modification in any case in

which the contracting officer determines that the objectives of the

audit can reasonably be met by accepting the results of an audit

that was conducted by any other department or agency of the

Federal Government within one year preceding the date of the

contracting officer’s determination.’’.

(c) GUIDELINES FOR ACCEPTANCE OF AUDITS BY STATE AND

LOCAL GOVERNMENTS RECEIVING FEDERAL ASSISTANCE.—The Director of the Office of Management and Budget shall issue guidelines

to ensure that an audit of indirect costs performed by the Federal

Government is accepted by State and local governments that receive

Federal funds under contracts, grants, or other Federal assistance

programs.

SEC. 809. COMPENSATION OF CERTAIN CONTRACTOR PERSONNEL.

(a) ARMED SERVICES PROCUREMENTS.—(1) During fiscal year

1997, the head of an agency shall treat the costs described in

paragraph (2) as not allowable under a covered contract, in the

same manner as costs listed in section 2324(e)(1) of title 10, United

States Code.

(2) The costs covered by paragraph (1) are costs of compensation

paid with respect to services of any one officer to the extent that

the total amount of the compensation paid in a fiscal year exceeds

$250,000.

(b) CIVILIAN AGENCY PROCUREMENTS.—(1) During fiscal year

1997, an executive agency shall treat the costs described in paragraph (2) as not allowable under a covered contract, in the same

manner as costs listed in section 306(e)(1) of the Federal Property

and Administrative Services Act of 1949 (41 U.S.C. 256(e)(1)).

31 USC 7505

note.
110 STAT. 2608 PUBLIC LAW 104–201—SEPT. 23, 1996

(2) The costs covered by paragraph (1) are costs of compensation

paid with respect to services of any one officer to the extent that

the total amount of the compensation paid in a fiscal year exceeds

$250,000.

(c) DEFINITIONS.—In this section:

(1) The term ‘‘head of an agency’’ has the meaning provided

in section 2302 of title 10, United States Code.

(2) The term ‘‘executive agency’’ has the meaning provided

in section 3 of the Federal Property and Administrative Services

Act of 1949 (40 U.S.C. 472).

(3) The term ‘‘covered contract’’—

(A) with respect to procurements subject to chapter

137 of title 10, United States Code, has the meaning provided by section 2324(l) of such title; and

(B) with respect to procurements subject to title III

of the Federal Property and Administrative Services Act

of 1949 (41 U.S.C. 251 et seq.), has the meaning provided

by section 306(l) of such Act (41 U.S.C. 256(l)).

(4) The term ‘‘compensation’’ means—

(A) the total amount of wages as defined in section

3401(a) of the Internal Revenue Code of 1986 for the year

concerned; and

(B) the total amount of elective deferrals (within the

meaning of section 402(g)(3) of such Code) for the year

concerned.

(5) The term ‘‘officer’’ means a person who is determined

to be in a senior management position as established by regulation.

(d) REVIEW.—The Administrator for Federal Procurement

Policy, in consultation with the Secretary of Defense, shall conduct

a comprehensive review of the levels of compensation received by

senior executives of corporations performing a significant amount

of business with the Federal Government in order to determine

the appropriate cost allowability policy in this area. Such a review

should include the following:

(1) In consultation with the Secretary of the Treasury,

an examination of the appropriate definition and treatment

of compensation, including deferred compensation.

(2) An examination of the appropriate definition of senior

executive positions and any other positions that should be

covered under the cost allowability policy.

(3) An examination of how to apply the cost allowability

policy to individual contracts and aggregations of contracts

within a corporation.

(4) Any other matter related to the cost allowability of

executive compensation that the Administrator considers appropriate.

(e) LEGISLATIVE PROPOSAL.—Not later than March 1, 1997,

the President shall submit to Congress a legislative proposal incorporating the conclusions reached by the review conducted under

subsection (d) and establishing a statutory Government standard

on the cost allowability of executive compensation.

SEC. 810. EXCEPTION TO PROHIBITION ON PROCUREMENT OF

FOREIGN GOODS.

Section 2534(d)(3) of title 10, United States Code, is amended

by inserting ‘‘or would impede the reciprocal procurement of defense

President.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2609

items under a memorandum of understanding providing for reciprocal procurement of defense items that is entered into under section

2531 of this title,’’ after ‘‘a foreign country,’’.

Subtitle B—Other Matters

SEC. 821. PROHIBITION ON RELEASE OF CONTRACTOR PROPOSALS

UNDER FREEDOM OF INFORMATION ACT.

(a) ARMED SERVICES ACQUISITIONS.—Section 2305 of title 10,

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

new subsection:

‘‘(g) PROHIBITION ON RELEASE OF CONTRACTOR PROPOSALS.—

(1) Except as provided in paragraph (2), a proposal in the possession

or control of the Department of Defense may not be made available

to any person under section 552 of title 5.

‘‘(2) Paragraph (1) does not apply to any proposal that is set

forth or incorporated by reference in a contract entered into between

the Department and the contractor that submitted the proposal.

‘‘(3) In this subsection, the term ‘proposal’ means any proposal,

including a technical, management, or cost proposal, submitted

by a contractor in response to the requirements of a solicitation

for a competitive proposal.’’.

(b) CIVILIAN AGENCY ACQUISITIONS.—Section 303B of the

Federal Property and Administrative Services Act of 1949 (41 U.S.C.

253b) is amended by adding at the end the following new subsection:

‘‘(m) PROHIBITION ON RELEASE OF CONTRACTOR PROPOSALS.—

(1) Except as provided in paragraph (2), a proposal in the possession

or control of an executive agency may not be made available to

any person under section 552 of title 5, United States Code.

‘‘(2) Paragraph (1) does not apply to any proposal that is set

forth or incorporated by reference in a contract entered into between

the agency and the contractor that submitted the proposal.

‘‘(3) In this subsection, the term ‘proposal’ means any proposal,

including a technical, management, or cost proposal, submitted

by a contractor in response to the requirements of a solicitation

for a competitive proposal.’’.

SEC. 822. AMENDMENTS RELATING TO REPORTS ON PROCUREMENT

REGULATORY ACTIVITY.

Subsection (g) of section 25 of the Office of Federal Procurement

Policy Act (41 U.S.C. 421) is amended—

(1) in paragraph (1)—

(A) by striking out ‘‘within 6 months after the date

of enactment of this section and every 6 months thereafter’’

and inserting in lieu thereof ‘‘every 12 months’’; and

(B) by inserting ‘‘and’’ after the semicolon at the end;

(2) in paragraph (2)(H), by striking out ‘‘; and’’ and inserting

in lieu thereof a period; and

(3) by striking out paragraph (3).

SEC. 823. AMENDMENT OF MULTIYEAR LIMITATION ON CONTRACTS

FOR INSPECTION, MAINTENANCE, AND REPAIR.

Paragraph (14) of section 210(a) of the Federal Property and

Administrative Services Act of 1949 (40 U.S.C. 490(a)) is amended

by striking out ‘‘for periods not exceeding three years’’ and inserting

in lieu thereof ‘‘for periods not exceeding five years’’.
110 STAT. 2610 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 824. STREAMLINED NOTICE REQUIREMENTS TO CONTRACTORS

AND EMPLOYEES REGARDING TERMINATION OR SUBSTANTIAL REDUCTION IN CONTRACTS UNDER MAJOR DEFENSE

PROGRAMS.

(a) ELIMINATION OF UNNECESSARY REQUIREMENTS.—Section

4471 of the Defense Conversion, Reinvestment, and Transition

Assistance Act of 1992 (division D of Public Law 102–484; 10

U.S.C. 2501 note) is amended—

(1) by striking out subsection (a);

(2) by striking out subsection (f), except paragraph (4);

(3) by redesignating subsections (b), (c), (d), (e), and (g)

as subsections (a), (b), (c), (d), and (f), respectively; and

(4) by redesignating such paragraph (4) as subsection (e).

(b) NOTICE TO CONTRACTORS.—Subsection (a) of such section,

as redesignated by subsection (a)(3), is amended by striking out

paragraphs (1) and (2) and inserting in lieu thereof the following:

‘‘(1) shall identify each contract (if any) under major defense

programs of the Department of Defense that will be terminated

or substantially reduced as a result of the funding levels provided in that Act; and

‘‘(2) shall ensure that notice of the termination of, or

substantial reduction in, the funding of the contract is

provided—

‘‘(A) directly to the prime contractor under the contract; and

‘‘(B) directly to the Secretary of Labor.’’.

(c) NOTICE TO SUBCONTRACTORS.—Subsection (b) of such

section, as redesignated by subsection (a)(3), is amended—

(1) by striking out ‘‘As soon as’’ and all that follows through

‘‘prime contractor shall—’’ in the matter preceding paragraph

(1) and inserting in lieu thereof ‘‘Not later than 60 days after

the date on which the prime contractor for a contract under

a major defense program receives notice under subsection (a),

the prime contractor shall—’’;

(2) in paragraph (1)—

(A) by striking out ‘‘for that program under a contract’’

and inserting in lieu thereof ‘‘under that prime contract

for subcontracts’’; and

(B) by striking out ‘‘for the program’’; and

(3) in paragraph (2)(A), by striking out ‘‘for the program

under a contract’’ and inserting in lieu thereof ‘‘for subcontracts’’.

(d) NOTICE TO EMPLOYEES AND STATE DISLOCATED WORKER

UNIT.—Subsection (c) of such section, as redesignated by subsection

(a)(3), is amended by striking out ‘‘under subsection (a)(1)’’ and

all that follows through ‘‘a defense program,’’ in the matter preceding paragraph (1) and inserting in lieu thereof ‘‘under subsection

(a),’’.

(e) CROSS REFERENCES AND CONFORMING AMENDMENTS.—(1)

Subsection (d) of such section, as redesignated by subsection (a)(3),

is amended—

(A) by striking out ‘‘a major defense program provided

under subsection (d)(1)’’ and inserting in lieu thereof ‘‘a defense

contract provided under subsection (c)(1)’’; and

(B) by striking out ‘‘the program’’ and inserting in lieu

thereof ‘‘the contract’’.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2611

(2) Subsection (e) of such section, as redesignated by subsection

(a)(4), is amended—

(A) by striking out ‘‘ELIGIBILITY’’ and inserting in lieu

thereof ‘‘ELIGIBILITY’’; and

(B) by striking out ‘‘under paragraph (3)’’ and inserting

in lieu thereof ‘‘or cancellation of the termination of, or substantial reduction in, contract funding’’.

(3) Subsection (f) of such section, as redesignated by subsection

(a)(3), is amended in paragraph (2)—

(A) by inserting ‘‘a defense contract under’’ before ‘‘a major

defense program’’; and

(B) by striking out ‘‘contracts under the program’’ and

inserting in lieu thereof ‘‘the funds obligated by the contract’’.

SEC. 825. REPEAL OF NOTICE REQUIREMENTS FOR SUBSTANTIALLY

OR SERIOUSLY AFFECTED PARTIES IN DOWNSIZING

EFFORTS.

Sections 4101 and 4201 of the National Defense Authorization

Act for Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1850,

1851; 10 U.S.C. 2391 note) are repealed.

SEC. 826. STUDY OF EFFECTIVENESS OF DEFENSE MERGERS.

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

on mergers and acquisitions in the defense sector. The study shall

address the following:

(1) The effectiveness of defense mergers and acquisitions

in eliminating excess capacity within the defense industry.

(2) The degree of change in the dependence by defense

contractors on defense-related Federal contracts within their

overall business after mergers.

(3) The effect on defense industry employment resulting

from defense mergers and acquisitions occurring during the

three years preceding the date of the enactment of this Act.

(4) The effect on competition for defense contracts.

(b) REPORT.—Not later than six months after the date of the

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

Congress a report on the results of the study conducted under

subsection (a).

SEC. 827. ANNUAL REPORT RELATING TO BUY AMERICAN ACT.

The Secretary of Defense shall submit to Congress, not later

than 120 days after the end of each fiscal year, a report on the

amount of purchases by the Department of Defense from foreign

entities in that fiscal year. Such report shall separately indicate

the dollar value of items for which the Buy American Act (41

U.S.C. 10a et seq.) was waived pursuant to any of the following:

(1) Any reciprocal defense procurement memorandum of

understanding described in section 849(c)(2) of Public Law 103–

160 (41 U.S.C. 10b–2 note).

(2) The Trade Agreements Act of 1979 (19 U.S.C. 2501

et seq.)

(3) Any international agreement to which the United States

is a party.

SEC. 828. FOREIGN ENVIRONMENTAL TECHNOLOGY.

Subsection (b) of section 2536 of title 10, United States Code,

is amended to read as follows:

41 USC 10b–3.
110 STAT. 2612 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(b) WAIVER AUTHORITY.—(1) The Secretary concerned may

waive the application of subsection (a) to a contract award if—

‘‘(A) the Secretary concerned determines that the waiver

is essential to the national security interests of the United

States; or

‘‘(B) in the case of a contract awarded for environmental

restoration, remediation, or waste management at a Department of Defense or Department of Energy facility—

‘‘(i) the Secretary concerned determines that the waiver

will advance the environmental restoration, remediation,

or waste management objectives of the department concerned and will not harm the national security interests

of the United States; and

‘‘(ii) the entity to which the contract is awarded is

controlled by a foreign government with which the Secretary concerned is authorized to exchange Restricted Data

under section 144 c. of the Atomic Energy Act of 1954

(42 U.S.C. 2164(c)).

‘‘(2) The Secretary concerned shall notify Congress of any decision to grant a waiver under paragraph (1)(B) with respect to

a contract. The contract may be awarded only after the end of

the 45-day period beginning on the date the notification is received

by the committees.’’.

SEC. 829. ASSESSMENT OF NATIONAL DEFENSE TECHNOLOGY AND

INDUSTRIAL BASE AND DEPENDENCY OF BASE ON

SUPPLIES AVAILABLE ONLY FROM FOREIGN COUNTRIES.

(a) NATIONAL SECURITY OBJECTIVES FOR NATIONAL TECHNOLOGY AND INDUSTRIAL BASE.—Section 2501(a) of title 10, United

States Code, is amended by adding at the end the following:

‘‘(5) Providing for the development, manufacture, and supply of items and technologies critical to the production and

sustainment of advanced military weapon systems within the

national technology and industrial base.’’.

(b) NATIONAL DEFENSE PROGRAM FOR ANALYSIS OF THE TECH- NOLOGY AND INDUSTRIAL BASE.—Section 2503 of title 10, United

States Code, is amended—

(1) in subsection (a)—

(A) by striking out ‘‘(1) The Secretary of Defense, in

consultation with the National Defense Technology and

Industrial Base Council,’’ in paragraph (1) and inserting

in lieu thereof ‘‘The Secretary of Defense’’; and

(B) by striking out paragraphs (2), (3), and (4); and

(2) in subsection (c)(3)(A)—

(A) by striking out ‘‘the National Defense Technology

and Industrial Base Council in’’ and inserting in lieu

thereof ‘‘the Secretary of Defense for’’; and

(B) by striking out ‘‘and the periodic plans required

by section 2506 of this title’’.

(c) PERIODIC DEFENSE CAPABILITY ASSESSMENTS, INCLUDING

FOREIGN DEPENDENCY.—(1) Section 2505 of title 10, United States

Code, is amended to read as follows:

‘‘§ 2505. National technology and industrial base: periodic

defense capability assessments

‘‘(a) PERIODIC ASSESSMENT.—Each fiscal year, the Secretary

of Defense shall prepare selected assessments of the capability

Notification.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2613

of the national technology and industrial base to attain the national

security objectives set forth in section 2501(a) of this title. The

Secretary of Defense shall prepare such assessments in consultation

with the Secretary of Commerce and the Secretary of Energy.

‘‘(b) ASSESSMENT PROCESS.—The Secretary of Defense shall

ensure that technology and industrial capability assessments—

‘‘(1) describe sectors or capabilities, their underlying infrastructure and processes;

‘‘(2) analyze present and projected financial performance

of industries supporting the sectors or capabilities in the assessment; and

‘‘(3) identify technological and industrial capabilities and

processes for which there is potential for the national industrial

and technology base not to be able to support the achievement

of national security objectives.

‘‘(c) ASSESSMENT OF EXTENT OF DEPENDENCY ON FOREIGN

SOURCE ITEMS.—Each assessment under subsection (a) shall include

a separate discussion and presentation regarding the extent to

which the national technology and industrial base is dependent

on items for which the source of supply, manufacture, or technology

is outside of the United States and Canada and for which there

is no immediately available source in the United States or Canada.

The discussion and presentation regarding foreign dependency

shall—

‘‘(1) identify cases that pose an unacceptable risk of foreign

dependency, as determined by the Secretary; and

‘‘(2) present actions being taken or proposed to be taken

to remedy the risk posed by the cases identified under paragraph (1), including efforts to develop a domestic source for

the item in question.

‘‘(d) INTEGRATED PROCESS.—The Secretary of Defense shall

ensure that consideration of the technology and industrial base

assessments is integrated into the overall budget, acquisition, and

logistics support decision processes of the Department of Defense.’’.

(2) Section 2502(b) of title 10, United States Code, is amended—

(A) by striking out ‘‘the following responsibilities:’’ and

all that follows through ‘‘effective cooperation’’ and inserting

in lieu thereof ‘‘the responsibility to ensure effective cooperation’’; and

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

(3) by redesignating subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively, and adjusting the margin

of such paragraphs two ems to the left.

(d) REPEAL OF REQUIREMENT FOR PERIODIC DEFENSE CAPABILITY PLAN; DEVELOPMENT OF POLICY GUIDANCE.—Section 2506 of

title 10, United States Code, is amended to read as follows:

‘‘§ 2506. Department of Defense technology and industrial

base policy guidance

‘‘(a) DEPARTMENTAL GUIDANCE.—The Secretary of Defense shall

prescribe departmental guidance for the attainment of each of the

national security objectives set forth in section 2501(a) of this

title. Such guidance shall provide for technological and industrial

capability considerations to be integrated into the budget allocation,

weapons acquisition, and logistics support decision processes.

‘‘(b) REPORT TO CONGRESS.—The Secretary of Defense shall

report on the implementation of the departmental guidance in the
110 STAT. 2614 PUBLIC LAW 104–201—SEPT. 23, 1996

annual report to Congress submitted pursuant to section 2504 of

this title.’’.

(e) ANNUAL REPORT TO CONGRESS.—Subchapter II of chapter

148 of title 10, United States Code, is amended by inserting after

section 2503 the following new section:

‘‘§ 2504. Annual report to Congress

‘‘The Secretary of Defense shall transmit to the Committee

on Armed Services of the Senate and the Committee on National

Security of the House of Representatives by March 1 of each year

a report which shall include the following information:

‘‘(1) A description of the departmental guidance prepared

pursuant to section 2506 of this title.

‘‘(2) A description of the methods and analyses being undertaken by the Department of Defense alone or in cooperation

with other Federal agencies, to identify and address concerns

regarding technological and industrial capabilities of the

national technology and industrial base.

‘‘(3) A description of the assessments prepared pursuant

to section 2505 of this title and other analyses used in developing the budget submission of the Department of Defense for

the next fiscal year.

‘‘(4) Identification of each program designed to sustain

specific essential technological and industrial capabilities and

processes of the national technology and industrial base.’’.

(f) REPEAL OF REQUIREMENT TO COORDINATE THE ENCOURAGEMENT OF TECHNOLOGY TRANSFER WITH THE COUNCIL.—Subsection

2514(c) of title 10, United States Code, is amended by striking

out paragraph (5).

(g) CLERICAL AMENDMENTS.—(1) The table of sections at the

beginning of subchapter II of chapter 148 of title 10, United States

Code, is amended by inserting after the item relating to section

2503 the following new item:

‘‘2504. Annual report to Congress.’’.

(2) Such table of sections is further amended by striking out

the item relating to section 2506 and inserting in lieu thereof

the following new item:

‘‘2506. Department of Defense technology and industrial base policy guidance.’’.

(h) REPEAL OF SUPERSEDED AND EXECUTED LAW.—Sections

4218, 4219, and 4220 of the National Defense Authorization Act

for Fiscal Year 1993 (Public Law 102–484; 10 U.S.C. 2505 note

and 2506 note) are repealed.

SEC. 830. EXPANSION OF REPORT ON IMPLEMENTATION OF AUTOMATED INFORMATION SYSTEMS TO INCLUDE ADDITIONAL

MATTERS REGARDING INFORMATION RESOURCES

MANAGEMENT.

(a) EXPANDED REPORT.—The Secretary of Defense shall include

in the report submitted in 1997 under section 381(f) of the National

Defense Authorization Act for Fiscal Year 1995 (Public Law 103–

337; 10 U.S.C. 113 note) a discussion of the following matters

relating to information resources management:

(1) The progress made in implementing the Information

Technology Management Reform Act of 1996 (division E of

Public Law 104–106; 110 Stat. 679; 40 U.S.C. 1401 et seq.)

and the amendments made by that Act.

10 USC 113 note.

10 USC 2501

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2615

(2) The progress made in implementing the strategy for

the development or modernization of automated information

systems for the Department of Defense, as required by section

366 of the National Defense Authorization Act for Fiscal Year

1996 (Public Law 104–106; 110 Stat. 275; 10 U.S.C. 113 note).

(3) Plans of the Department of Defense for establishing

an integrated framework for management of information

resources within the department.

(b) SPECIFIC ELEMENTS OF REPORT.—The presentation of matters under subsection (a) shall specifically include a discussion

of the following:

(1) The status of the implementation of performance

measures.

(2) The specific actions being taken to link the proposed

performance measures to the planning, programming, and

budgeting system of the Department of Defense and to the

life-cycle management processes of the department.

(3) The results of pilot program testing of proposed performance measures.

(4) The additional training necessary for the implementation of performance-based information management.

(5) The department-wide actions that are necessary to

comply with the requirements of the following provisions of

law:

(A) The amendments made by the Government

Performance and Results Act of 1993 (Public Law 103–

62; 107 Stat. 285).

(B) The Information Technology Management Reform

Act of 1996 (division E of Public Law 104–106; 110 Stat.

679; 40 U.S.C. 1401 et seq.) and the amendments made

by that Act.

(C) Title V of the Federal Acquisition Streamlining

Act of 1994 (Public Law 103–355; 108 Stat. 3349) and

the amendments made by that title.

(D) The Chief Financial Officers Act of 1990 (Public

Law 101–576; 104 Stat. 2838) and the amendments made

by that Act.

SEC. 831. YEAR 2000 SOFTWARE CONVERSION.

(a) YEAR 2000 SOFTWARE CONVERSION.—The Secretary of

Defense shall ensure that, as soon as practicable, all information

technology acquired by the Department of Defense pursuant to

contracts entered into after September 30, 1996, has the capabilities

to process date and date-related data in 2000.

(b) ASSESSMENT.—The Secretary, acting through the chief

information officers within the department (as designated pursuant

to section 3506 of title 44, United States Code), shall assess all

information technology within the Department of Defense to determine the extent to which such technology has the capabilities

to operate effectively.

(c) PLAN.—Not later than January 1, 1997, the Secretary shall

submit to Congress a detailed plan for eliminating any deficiencies

identified pursuant to subsection (b). The plan shall include—

(1) a list of affected major systems;

(2) a description of how the deficiencies could affect the

national security of the United States; and

10 USC 2302

note.
110 STAT. 2616 PUBLIC LAW 104–201—SEPT. 23, 1996

(3) an estimate and prioritization of the resources that

are necessary to eliminate the deficiencies.

SEC. 832. PROCUREMENT FROM FIRMS IN INDUSTRIAL BASE FOR

PRODUCTION OF SMALL ARMS.

(a) REQUIREMENT.—Chapter 146 of title 10, United States Code,

is amended by adding at the end the following new section:

‘‘§ 2473. Procurements from the small arms production

industrial base

‘‘(a) AUTHORITY TO LIMIT PROCUREMENTS TO CERTAIN

SOURCES.—To the extent that the Secretary of Defense determines

necessary to preserve the small arms production industrial base,

the Secretary may require that any procurement of property or

services described in subsection (b) for the Department of Defense

be made only from a firm in the small arms production industrial

base.

‘‘(b) COVERED PROPERTY AND SERVICES.—Subsection (a) applies

to the following:

‘‘(1) Repair parts for small arms.

‘‘(2) Modifications of parts to improve small arms used

by the armed forces.

‘‘(c) SMALL ARMS PRODUCTION INDUSTRIAL BASE.—In this section, the term ‘small arms production industrial base’ means the

firms comprising the small arms production industrial base, as

described in the plan entitled ‘Preservation of Critical Elements

of the Small Arms Industrial Base’, dated January 8, 1994, that

was prepared by an independent assessment panel of the Army

Science Board.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following

new item:

‘‘2473. Procurements from the small arms production industrial base.’’.

SEC. 833. CABLE TELEVISION FRANCHISE AGREEMENTS.

Based on the advisory opinion from the United States Court

of Federal Claims, In the Matter of the Department of Defense

Cable Television Franchise Agreements, National Defense

Authorization Act for Fiscal Year 1996, Section 823, No. 96–133X

(July 11, 1996)—

(1) cable television franchise agreements for the construction, installation, or capital improvement of cable systems at

military installations shall be considered contracts for purposes

of the Federal Acquisition Regulation;

(2) cable television operators are entitled to recovery of

their investments at such installations to the extent authorized

in part 49 of the Federal Acquisition Regulation; and

(3) the appropriate official of the Department of Defense

shall promptly issue a written notice of the termination for

the convenience of the Government of the contracts described

in such advisory opinion and commence settlement negotiations

pursuant to the requirements of part 49 of the Federal Acquisition Regulation.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2617

TITLE IX—DEPARTMENT OF DEFENSE

ORGANIZATION AND MANAGEMENT

Subtitle A—General Matters

Sec. 901. Repeal of previously enacted reduction in number of statutory positions

in Office of the Secretary of Defense. Sec. 902. Additional required reduction in defense acquisition workforce.

Sec. 903. Reduction of personnel assigned to Office of the Secretary of Defense.

Sec. 904. Report on military department headquarters staffs.

Sec. 905. Matters to be considered in next assessment of current missions, responsibilities, and force structure of the unified combatant commands. Sec. 906. Transfer of authority to control transportation systems in time of war.

Sec. 907. Codification of requirements relating to continued operation of the

Uniformed Services University of the Health Sciences. Sec. 908. Joint Requirements Oversight Council.

Sec. 909. Membership of the Ammunition Storage Board.

Sec. 910. Removal of Secretary of the Army from membership on the Foreign Trade

Zone Board.

Sec. 911. Composition of aircraft accident investigation boards.

Sec. 912. Mission of the White House Communications Agency.

Subtitle B—Force Structure Review

Sec. 921. Short title.

Sec. 922. Findings.

Sec. 923. Quadrennial Defense Review.

Sec. 924. National Defense Panel.

Sec. 925. Postponement of deadlines.

Sec. 926. Definitions.

Subtitle A—General Matters

SEC. 901. REPEAL OF PREVIOUSLY ENACTED REDUCTION IN NUMBER

OF STATUTORY POSITIONS IN OFFICE OF THE SECRETARY

OF DEFENSE.

Section 903 of the National Defense Authorization Act for Fiscal

Year 1996 (Public Law 104–106; 110 Stat. 401) is repealed.

SEC. 902. ADDITIONAL REQUIRED REDUCTION IN DEFENSE ACQUISITION WORKFORCE.

(a) ADDITIONAL REDUCTIONS FOR FISCAL YEAR 1997.—Section

906(d) of the National Defense Authorization Act for Fiscal Year

1996 (Public Law 104–106; 110 Stat. 405) is amended in paragraph

(1) by striking out ‘‘positions during fiscal year 1996’’ and all that

follows and inserting in lieu thereof ‘‘so that—

‘‘(A) the total number of defense acquisition personnel as

of October 1, 1996, is less than the baseline number by at

least 15,000; and

‘‘(B) the total number of defense acquisition personnel as

of October 1, 1997, is less than the baseline number by at

least 30,000.’’.

(b) BASELINE NUMBER.—Such section is further amended by

adding at the end the following new paragraph:

‘‘(3) For purposes of this subsection, the term ‘baseline number’

means the total number of defense acquisition personnel as of

October 1, 1995.’’.

SEC. 903. REDUCTION OF PERSONNEL ASSIGNED TO OFFICE OF THE

SECRETARY OF DEFENSE.

(a) PERMANENT LIMITATION ON OSD PERSONNEL.—Effective

October 1, 1999, the number of OSD personnel may not exceed

75 percent of the baseline number.

Effective dates.

10 USC 131 note.

10 USC 131, 131

note, 133a, 134a,

137, 138, 142,

167 note, 176,

1056, 1216, 1587,

10201.
110 STAT. 2618 PUBLIC LAW 104–201—SEPT. 23, 1996

(b) PHASED REDUCTION.—The number of OSD personnel—

(1) as of October 1, 1997, may not exceed 85 percent of

the baseline number; and

(2) as of October 1, 1998, may not exceed 80 percent of

the baseline number.

(c) BASELINE NUMBER.—For purposes of this section, the term

‘‘baseline number’’ means the number of OSD personnel as of

October 1, 1994.

(d) OSD PERSONNEL DEFINED.—For purposes of this section,

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).

(e) LIMITATION ON REASSIGNMENT OF FUNCTIONS.—In carrying

out reductions in the number of personnel assigned to, or employed

in, the Office of the Secretary of Defense in order to comply with

this section, the Secretary of Defense may not reassign functions

solely in order to evade the requirements contained in this section.

(f) FLEXIBILITY.—If the Secretary of Defense determines, and

certifies to Congress, that the limitation in subsection (b) with

respect to any fiscal year would adversely affect United States

national security, the Secretary may waive the limitation under

that subsection with respect to that fiscal year. If the Secretary

of Defense determines, and certifies to Congress, that the limitation

in subsection (a) during fiscal year 1999 would adversely affect

United States national security, the Secretary may waive the limitation under that subsection with respect to that fiscal year. The

authority under this subsection may be used only once, with respect

to a single fiscal year.

(g) REPEAL OF PRIOR REQUIREMENT.—Section 901(d) of the

National Defense Authorization Act for Fiscal Year 1996 (Public

Law 104–106; 110 Stat. 401) is repealed.

SEC. 904. REPORT ON MILITARY DEPARTMENT HEADQUARTERS

STAFFS.

(a) REVIEW BY SECRETARY OF DEFENSE.—The Secretary of

Defense shall conduct a review of the size, mission, organization,

and functions of the military department headquarters staffs. This

review shall include the following:

(1) An assessment on the adequacy of the present organization structure to efficiently and effectively support the mission

of the military departments.

(2) An assessment of options to reduce the number of

personnel assigned to the military department headquarters

staffs.

(3) An assessment of the extent of unnecessary duplication

of functions between the Office of the Secretary of Defense

and the military department headquarters staffs.

(4) An assessment of the possible benefits that could be

derived from further functional consolidation between the

civilian secretariat of the military departments and the staffs

of the military service chiefs.

(5) An assessment of the possible benefits that could be

derived from reducing the number of civilian officers in the

military departments who are appointed by and with the advice

and consent of the Senate.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2619

(b) REPORT.—Not later than March 1, 1997, the Secretary of

Defense shall submit to the congressional defense committees a

report containing—

(1) the findings and conclusions of the Secretary resulting

from the review under subsection (a); 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.

(c) REDUCTION IN TOTAL NUMBER OF PERSONNEL ASSIGNED.—

In developing the plan under subsection (b)(2), the Secretary shall

make every effort to provide for significant reductions in the overall

number of military and civilian personnel assigned to or serving

in the military department headquarters staffs.

(d) MILITARY DEPARTMENT HEADQUARTERS STAFFS DEFINED.—

For the purposes of this section, the term ‘‘military department

headquarters staffs’’ means the offices, organizations, and other

elements of the Department of Defense comprising the following:

(1) The Office of the Secretary of the Army.

(2) The Army Staff.

(3) The Office of the Secretary of the Air Force.

(4) The Air Staff.

(5) The Office of the Secretary of the Navy.

(6) The Office of the Chief of Naval Operations.

(7) Headquarters, Marine Corps.

SEC. 905. MATTERS TO BE CONSIDERED IN NEXT ASSESSMENT OF

CURRENT MISSIONS, RESPONSIBILITIES, AND FORCE

STRUCTURE OF THE UNIFIED COMBATANT COMMANDS.

The Chairman of the Joint Chiefs of Staff shall consider, as

part of the next periodic review by the Chairman of the missions,

responsibilities, and force structure of the unified combatant commands pursuant to section 161(b) of title 10, United States Code,

the following matters:

(1) Whether there exists an adequate distribution of

threats, mission requirements, and responsibilities for

geographic areas among the regional unified combatant commands.

(2) Whether reductions in the overall force structure of

the Armed Forces permit the United States to better execute

its warfighting plans through fewer or differently configured

unified combatant commands, including—

(A) a total of five or fewer commands, all of which

are regional;

(B) a total of three commands consisting of an eastward-oriented command, a westward-oriented command,

and a central command;

(C) a purely functional command structure, involving

(for example) a first theater command, a second theater

command, a logistics command, a special contingencies

command, and a strategic command; or

(D) any other command structure or configuration the

Chairman finds appropriate.

(3) Whether any missions, staff, facilities, equipment, training programs, or other assets or activities of the unified combatant commands are redundant.

(4) Whether warfighting requirements are adequate to justify the current functional commands.

10 USC 161 note.
110 STAT. 2620 PUBLIC LAW 104–201—SEPT. 23, 1996

(5) Whether the exclusion of certain nations from the Areas

of Responsibility of the unified combatant commands presents

difficulties with respect to the achievement of United States

national security objectives in those areas.

(6) Whether the current geographic boundary between the

United States Central Command and the United States European Command through the Middle East could create command

conflicts in the context of a major regional conflict in the

Middle East region.

SEC. 906. TRANSFER OF AUTHORITY TO CONTROL TRANSPORTATION

SYSTEMS IN TIME OF WAR.

(a) AUTHORITY OF SECRETARY OF DEFENSE.—Section 4742 of

title 10, United States Code, is amended by striking out ‘‘Secretary

of the Army’’ and inserting in lieu thereof ‘‘Secretary of Defense’’.

(b) TRANSFER OF SECTION.—Such section, as amended by subsection (a), is transferred to the end of chapter 157 of such title

and is redesignated as section 2644.

(c) CONFORMING REPEAL.—Section 9742 of such title is repealed.

(d) CLERICAL AMENDMENTS.—(1) The table of sections at the

beginning of chapter 157 of such title is amended by adding at

the end the following new item:

‘‘2644. Control of transportation systems in time of war.’’.

(2) The table of sections at the beginning of chapter 447 of

such title is amended by striking out the item relating to section

4742.

(3) The table of sections at the beginning of chapter 947 of

such title is amended by striking out the item relating to section

9742.

SEC. 907. CODIFICATION OF REQUIREMENTS RELATING TO

CONTINUED OPERATION OF THE UNIFORMED SERVICES

UNIVERSITY OF THE HEALTH SCIENCES.

(a) CODIFICATION OF EXISTING LAW.—(1) Chapter 104 of title

10, United States Code, is amended by inserting after section 2112

the following new section:

‘‘§ 2112a. Continued operation of University

‘‘(a) CLOSURE PROHIBITED.—The University may not be closed.

‘‘(b) PERSONNEL STRENGTH.—During the five-year period beginning on October 1, 1996, the personnel staffing levels for the University may not be reduced below the personnel staffing levels for

the University as of October 1, 1993.’’.

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

is amended by inserting after the item relating to section 2112

the following new item:

‘‘2112a. Continued operation of University.’’.

(b) REPEAL OF SUPERSEDED LAW.—(1) 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) is amended

by striking out subsection (a).

(2) Section 1071 of the National Defense Authorization Act

for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 445; 10 U.S.C.

2112 note) is amended by striking out subsection (b).

Effective date.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2621

SEC. 908. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

Section 181 of title 10, United States Code, as added effective

January 31, 1997, is amended by adding at the end the following

new subsection:

‘‘(d) AVAILABILITY OF OVERSIGHT INFORMATION TO CONGRES- SIONAL DEFENSE COMMITTEES.—(1) The Secretary of Defense shall

ensure that, in the case of a recommendation by the Chairman

to the Secretary that is approved by the Secretary, oversight

information with respect to such recommendation that is produced

as a result of the activities of the Joint Requirements Oversight

Council is made available in a timely fashion to the congressional

defense committees.

‘‘(2) In this subsection:

‘‘(A) The term ‘oversight information’ means information

and materials comprising analysis and justification that are

prepared to support a recommendation that is made to, and

approved by, the Secretary of Defense.

‘‘(B) The term ‘congressional defense committees’ means—

‘‘(i) the Committee on Armed Services and the Committee on Appropriations of the Senate; and

‘‘(ii) the Committee on National Security and the

Committee on Appropriations of the House of Representatives.’’.

SEC. 909. MEMBERSHIP OF THE AMMUNITION STORAGE BOARD.

Section 172(a) of title 10, United States Code, is amended

by striking out ‘‘a joint board of officers selected by them’’ and

inserting in lieu thereof ‘‘a joint board selected by them composed

of officers, civilian officers and employees of the Department of

Defense, or both’’.

SEC. 910. REMOVAL OF SECRETARY OF THE ARMY FROM MEMBERSHIP ON THE FOREIGN TRADE ZONE BOARD.

The first section of the Act of June 18, 1934 (Public Law

Numbered 397, Seventy-third Congress; 48 Stat. 998) (19 U.S.C.

81a), popularly known as the ‘‘Foreign Trade Zones Act’’, is

amended—

(1) in subsection (b), by striking out ‘‘the Secretary of

the Treasury, and the Secretary of War’’ and inserting in lieu

thereof ‘‘and the Secretary of the Treasury’’; and

(2) in subsection (c), by striking out ‘‘Alaska, Hawaii,’’.

SEC. 911. COMPOSITION OF AIRCRAFT ACCIDENT INVESTIGATION

BOARDS.

(a) SELECTION OF BOARD MEMBERS.—(1) Chapter 134 of title

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

following new section:

‘‘§ 2255. Aircraft accident investigation boards: composition

requirements

‘‘(a) REQUIRED MEMBERSHIP OF BOARDS.—Whenever the Secretary of a military department convenes an aircraft accident investigation board to conduct an accident investigation (as described

in section 2254(a)(2) of this title) with respect to a Class A accident

involving an aircraft under the jurisdiction of the Secretary, the

Secretary shall select the membership of the board so that—

‘‘(1) a majority of the members (or in the case of a board

consisting of a single member, the member) is selected from

Effective date.
110 STAT. 2622 PUBLIC LAW 104–201—SEPT. 23, 1996

units other than the mishap unit or a unit subordinate to

the mishap unit; and

‘‘(2) in the case of a board consisting of more than one

member, at least one member of the board is a member of

the armed forces or an officer or an employee of the Department

of Defense who possesses knowledge and expertise relevant

to aircraft accident investigations.

‘‘(b) EXCEPTION.—(1) The Secretary of the military department

concerned may waive the requirement of subsection (a)(1) in the

case of an aircraft accident if the Secretary determines that—

‘‘(A) it is not practicable to meet the requirement

because of—

‘‘(i) the remote location of the aircraft accident;

‘‘(ii) an urgent need to promptly begin the investigation; or

‘‘(iii) a lack of available persons outside of the mishap

unit who have adequate knowledge and expertise regarding

the type of aircraft involved in the accident; and

‘‘(B) the objectivity and independence of the aircraft

accident investigation board will not be compromised.

‘‘(2) The Secretary shall notify Congress of a waiver exercised

under this subsection and the reasons therefor.

‘‘(c) CONSULTATION REQUIREMENT.—In the case of an aircraft

accident investigation board consisting of a single member, the

member shall consult with a member of the armed forces or an

officer or an employee of the Department of Defense who possesses

knowledge and expertise relevant to aircraft accident investigations.

‘‘(d) DESIGNATION OF CLASS A ACCIDENTS.—Not later than 60

days after an aircraft accident involving an aircraft under the

jurisdiction of the Secretary of a military department, the Secretary

shall determine whether the aircraft accident should be designated

as a Class A accident for purposes of this section.

‘‘(e) DEFINITIONS.—In this section:

‘‘(1) The term ‘Class A accident’ means an accident involving an aircraft that results in—

‘‘(A) the loss of life or permanent disability;

‘‘(B) damages to the aircraft, other property, or a combination of both, in an amount in excess of the amount

specified by the Secretary of Defense for purposes of determining Class A accidents; or

‘‘(C) the destruction of the aircraft.

‘‘(2) The term ‘mishap unit’, with respect to an aircraft

accident investigation, means the unit of the armed forces

(at the squadron or battalion level or equivalent) to which

was assigned the flight crew of the aircraft that sustained

the accident that is the subject of the investigation.’’.

(2) The table of sections at the beginning of subchapter II

of such chapter is amended by adding at the end the following

new item:

‘‘2255. Aircraft accident investigation boards: composition requirements.’’.

(b) EFFECTIVE DATE.—Section 2255 of title 10, United States

Code, as added by subsection (a), shall apply with respect to any

aircraft accident investigation board convened by the Secretary

of a military department after the end of the six-month period

beginning on the date of the enactment of this Act.

Applicability.

10 USC 2255

note.

Notification.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2623

SEC. 912. MISSION OF THE WHITE HOUSE COMMUNICATIONS AGENCY.

(a) TELECOMMUNICATIONS SUPPORT.—The Secretary of Defense

shall ensure that the activities of the White House Communications

Agency in providing support services on a nonreimbursable basis

for the President from funds appropriated for the Department of

Defense for any fiscal year are limited to the provision of telecommunications support to the President and Vice President and

to related elements (as defined in regulations of that agency and

specified by the President with respect to particular individuals

within those related elements).

(b) OTHER SUPPORT.—Support services other than telecommunications support services described in subsection (a) may be provided

by the Department of Defense for the President through the White

House Communications Agency on a reimbursable basis.

(c) WHITE HOUSE COMMUNICATIONS AGENCY.—For purposes of

this section, the term ‘‘White House Communications Agency’’

means the element of the Department of Defense within the Defense

Communications Agency that is known on the date of the enactment

of this Act as the White House Communications Agency and

includes any successor agency.

(d) REPORT ON ISSUES RAISED BY DOD INSPECTOR GENERAL

REVIEW OF WHITE HOUSE COMMUNICATIONS AGENCY.—Not later

than October 1, 1996, or 30 days after the date of the enactment

of this Act, whichever is later, the Secretary of Defense shall submit

to Congress a report setting forth the actions taken by the Secretary

to address the issues raised by the report of the Department of

Defense Inspector General reviewing the mission of the White

House Communications Agency.

(e) QUARTERLY REPORTS DURING FISCAL YEAR 1997.—Not later

than 30 days after the end of each quarter of fiscal year 1997,

the Secretary of Defense shall submit to Congress a report describing the support services other than telecommunications support

services described in subsection (a) that were provided during the

preceding quarter by the Department of Defense for the President

through the White House Communications Agency.

(f) EFFECTIVE DATE.—This section takes effect on October 1,

1997, and applies to funds appropriated for the Department of

Defense for any fiscal year after fiscal year 1997.

Subtitle B—Force Structure Review

SEC. 921. SHORT TITLE.

This subtitle may be cited as the ‘‘Military Force Structure

Review Act of 1996’’.

SEC. 922. FINDINGS.

Congress makes the following findings:

(1) Since the collapse of the Soviet Union in 1991, the

United States has conducted two substantial assessments of

the force structure of the Armed Forces necessary to meet

United States defense requirements.

(2) The assessment by the Bush Administration (known

as the ‘‘Base Force’’ assessment) and the assessment by the

Clinton Administration (known as the ‘‘Bottom-Up Review’’)

were intended to reassess the force structure of the Armed

Military Force

Structure Review

Act of 1996.

10 USC 111 note.

Applicability.

10 USC 111 note.
110 STAT. 2624 PUBLIC LAW 104–201—SEPT. 23, 1996

Forces in light of the changing realities of the post-Cold War

world.

(3) Both assessments served an important purpose in focusing attention on the need to reevaluate the military posture

of the United States, but the pace of global change necessitates

a new, comprehensive assessment of the defense strategy of

the United States and the force structure of the Armed Forces

required to meet the threats to the United States in the twentyfirst century.

(4) The Bottom-Up Review has been criticized on several

points, including—

(A) the assumptions underlying the strategy of planning to fight and win two nearly simultaneous major

regional conflicts;

(B) the force levels recommended to carry out that

strategy; and

(C) the funding proposed for such recommended force

levels.

(5) In response to the recommendations of the Commission

on Roles and Missions of the Armed Forces, the Secretary

of Defense endorsed the concept of conducting a quadrennial

review of the defense program at the beginning of each newly

elected Presidential administration, and the Department

intends to complete the first such review in 1997.

(6) The review is to involve a comprehensive examination

of defense strategy, the force structure of the active, guard,

and reserve components, force modernization plans, infrastructure, and other elements of the defense program and policies

in order to determine and express the defense strategy of the

United States and to establish a revised defense program

through the year 2005.

(7) In order to ensure that the force structure of the Armed

Forces is adequate to meet the challenges to the national security interests of the United States in the twenty-first century,

to assist the Secretary of Defense in conducting the review

referred to in paragraph (5), and to assess the appropriate

force structure of the Armed Forces through the year 2010

and beyond (if practicable), it is important to provide for the

conduct of an independent, nonpartisan review of the force

structure that is more comprehensive than prior assessments

of the force structure, extends beyond the quadrennial defense

review, and explores innovative and forward-thinking ways of

meeting such challenges.

SEC. 923. QUADRENNIAL DEFENSE REVIEW.

(a) REQUIREMENT IN 1997.—The Secretary of Defense, in consultation with the Chairman of the Joint Chiefs of Staff, shall

complete in 1997 a review of the defense program of the United

States intended to satisfy the requirements for a Quadrennial

Defense Review as identified in the recommendations of the

Commission on Roles and Missions of the Armed Forces. The review

shall include a comprehensive examination of the defense strategy,

force structure, force modernization plans, infrastructure, budget

plan, and other elements of the defense program and policies with

a view toward determining and expressing the defense strategy

of the United States and establishing a revised defense program

through the year 2005.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2625

(b) INVOLVEMENT OF NATIONAL DEFENSE PANEL.—(1) The Secretary shall apprise the National Defense Panel established under

section 924, on an ongoing basis, of the work undertaken in the

conduct of the review.

(2) Not later than March 14, 1997, the Chairman of the National

Defense Panel shall submit to the Secretary the Panel’s assessment

of work undertaken in the conduct of the review as of that date

and shall include in the assessment the recommendations of the

Panel for improvements to the review, including recommendations

for additional matters to be covered in the review.

(c) ASSESSMENTS OF REVIEW.—Upon completion of the review,

the Chairman of the Joint Chiefs of Staff and the Chairman of

the National Defense Panel, on behalf of the Panel, shall each

prepare and submit to the Secretary such Chairman’s assessment

of the review in time for the inclusion of the assessment in its

entirety in the report under subsection (d).

(d) REPORT.—Not later than May 15, 1997, 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 comprehensive report on the review. The report shall include

the following:

(1) The results of the review, including a comprehensive

discussion of the defense strategy of the United States and

the force structure best suited to implement that strategy.

(2) The threats examined for purposes of the review and

the scenarios developed in the examination of such threats.

(3) The assumptions used in the review, including assumptions relating to the cooperation of allies and mission-sharing,

levels of acceptable risk, warning times, and intensity and

duration of conflict.

(4) The effect on the force structure of preparations for

and participation in peace operations and military operations

other than war.

(5) The effect on the force structure of the utilization by

the Armed Forces of technologies anticipated to be available

by the year 2005, including precision guided munitions, stealth,

night vision, digitization, and communications, and the changes

in doctrine and operational concepts that would result from

the utilization of such technologies.

(6) The manpower and sustainment policies required under

the defense strategy to support engagement in conflicts lasting

more than 120 days.

(7) The anticipated roles and missions of the reserve components in the defense strategy and the strength, capabilities,

and equipment necessary to assure that the reserve components

can capably discharge those roles and missions.

(8) The appropriate ratio of combat forces to support forces

(commonly referred to as the ‘‘tooth-to-tail’’ ratio) under the

defense strategy, including, in particular, the appropriate number and size of headquarter units and Defense Agencies for

that purpose.

(9) The air-lift and sea-lift capabilities required to support

the defense strategy.

(10) The forward presence, pre-positioning, and other

anticipatory deployments necessary under the defense strategy

for conflict deterrence and adequate military response to anticipated conflicts.
110 STAT. 2626 PUBLIC LAW 104–201—SEPT. 23, 1996

(11) The extent to which resources must be shifted among

two or more theaters under the defense strategy in the event

of conflict in such theaters.

(12) The advisability of revisions to the Unified Command

Plan as a result of the defense strategy.

(13) Any other matter the Secretary considers appropriate.

SEC. 924. NATIONAL DEFENSE PANEL.

(a) ESTABLISHMENT.—Not later than December 1, 1996, the

Secretary of Defense shall establish a nonpartisan, independent

panel to be known as the National Defense Panel (in this section

referred to as the ‘‘Panel’’). The Panel shall have the duties set

forth in this section.

(b) MEMBERSHIP.—The Panel shall be composed of a chairman

and eight other individuals appointed by the Secretary, in consultation with the chairman and ranking member of the Committee

on Armed Services of the Senate and the chairman and ranking

member of the Committee on National Security of the House of

Representatives, from among individuals in the private sector who

are recognized experts in matters relating to the national security

of the United States.

(c) DUTIES.—The Panel shall—

(1) conduct and submit to the Secretary the assessment

of the review under section 923 that is required by subsection

(b)(2) of that section;

(2) conduct and submit to the Secretary the comprehensive

assessment of the review that is required by subsection (c)

of that section upon completion of the review; and

(3) conduct the assessment of alternative force structures

for the Armed Forces required under subsection (d).

(d) ALTERNATIVE FORCE STRUCTURE ASSESSMENT.—(1) The

Panel shall submit to the Secretary an independent assessment

of a variety of possible force structures of the Armed Forces through

the year 2010 and beyond, including the force structure identified

in the report on the review under section 923(d). The purpose

of the assessment is to develop proposals for an ‘‘above the line’’

force structure of the Armed Forces and to provide the Secretary

and Congress recommendations regarding the optimal force structure to meet anticipated threats to the national security of the

United States through the time covered by the assessment.

(2) In conducting the assessment, the Panel shall examine

a variety of potential threats (including near-term threats and

long-term threats) to the national security interests of the United

States, including the following:

(A) Conventional threats across a spectrum of conflicts.

(B) The proliferation of weapons of mass destruction and

the means of delivering such weapons, and the illicit transfer

of technology relating to such weapons.

(C) The vulnerability of United States technology to nontraditional threats, including information warfare.

(D) Domestic and international terrorism.

(E) The emergence of a major potential adversary having

military capabilities similar to those of the United States.

(F) Any other significant threat, or combination of threats,

identified by the Panel.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2627

(3) For purposes of the assessment, the Panel shall develop

a variety of scenarios requiring a military response by the United

States, including the following:

(A) Scenarios developed in light of the threats examined

under paragraph (2).

(B) Scenarios developed in light of a continuum of conflicts

ranging from a conflict of lesser magnitude than the conflict

described in the Bottom-Up Review to a conflict of greater

magnitude than the conflict so described.

(4) As part of the assessment, the Panel shall also—

(A) develop recommendations regarding a variety of force

structures for the Armed Forces that permit the forward deployment of sufficient air, land, and sea-based forces to provide

an effective deterrent to conflict and to permit a military

response by the United States to the scenarios developed under

paragraph (3);

(B) to the extent practicable, estimate the funding required

by fiscal year, in constant fiscal year 1997 dollars, to organize,

equip, and support the forces contemplated under the force

structures assessed in the assessment; and

(C) comment on each of the matters also to be included

by the Secretary in the report required by section 923(d).

(e) REPORT.—(1) Not later than December 1, 1997, the Panel

shall submit to the Secretary a report setting forth the activities

and the findings and recommendations of the Panel under subsection (d), including any recommendations for legislation that the

Panel considers appropriate.

(2) Not later than December 15, 1997, the Secretary shall,

after consultation with the Chairman of the Joint Chiefs of Staff,

submit to the committees referred to in subsection (b) a copy of

the report under paragraph (1), together with the Secretary’s comments on the report.

(f) INFORMATION FROM FEDERAL AGENCIES.—The Panel may

secure directly from the Department of Defense and any of its

components and from any other Federal department and agency

such information as the Panel considers necessary to carry out

its duties under this section. The head of the department or agency

concerned shall ensure that information requested by the Panel

under this subsection is promptly provided.

(g) PERSONNEL MATTERS.—(1) Each member of the Panel shall

be compensated at a rate equal to the daily equivalent of the

annual rate of basic pay prescribed for level IV of the Executive

Schedule under section 5315 of title 5, United States Code, for

each day (including travel time) during which such member is

engaged in the performance of the duties of the Panel.

(2) The members of the Panel shall be allowed travel expenses,

including per diem in lieu of subsistence, at rates authorized for

employees of agencies under subchapter I of chapter 57 of title

5, United States Code, while away from their homes or regular

places of business in the performance of services for the Panel.

(3)(A) The chairman of the Panel may, without regard to the

civil service laws and regulations, appoint and terminate an executive director, and a staff of not more than four additional individuals, if the Panel determines that an executive director and staff

are necessary in order for the Panel to perform its duties effectively.

The employment of an executive director shall be subject to confirmation by the Panel.
110 STAT. 2628 PUBLIC LAW 104–201—SEPT. 23, 1996

(B) The chairman may fix the compensation of the executive

director without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating

to classification of positions and General Schedule pay rates, except

that the rate of pay for the executive director may not exceed

the rate payable for level V of the Executive Schedule under section

5316 of such title.

(4) Any Federal Government employee may be detailed to the

Panel without reimbursement, and such detail shall be without

interruption or loss of civil service status or privilege. The Secretary

shall ensure that sufficient personnel are detailed to the Panel

to enable the Panel to carry out its duties effectively.

(5) To the maximum extent practicable, the members and

employees of the Panel shall travel on military aircraft, military

ships, military vehicles, or other military conveyances when travel

is necessary in the performance of a duty of the Panel, except

that no such aircraft, ship, vehicle, or other conveyance may be

scheduled primarily for the transportation of any such member

or employee when the cost of commercial transportation is less

expensive.

(h) ADMINISTRATIVE PROVISIONS.—(1) The Panel may use the

United States mails and obtain printing and binding services in

the same manner and under the same conditions as other departments and agencies of the Federal Government.

(2) The Secretary shall furnish the Panel any administrative

and support services requested by the Panel.

(3) The Panel may accept, use, and dispose of gifts or donations

of services or property.

(i) PAYMENT OF PANEL EXPENSES.—The compensation, travel

expenses, and per diem allowances of members and employees

of the Panel shall be paid out of funds available to the Department

of Defense for the payment of compensation, travel allowances,

and per diem allowances, respectively, of civilian employees of the

Department. The other expenses of the Panel shall be paid out

of funds available to the Department for the payment of similar

expenses incurred by the Department.

(j) TERMINATION.—The Panel shall terminate 30 days after

the date on which the Panel submits its report to the Secretary

under subsection (e).

SEC. 925. POSTPONEMENT OF DEADLINES.

If the Presidential election in 1996 results in the election of

a new President, each deadline set forth in this subtitle shall

be postponed by three months.

SEC. 926. DEFINITIONS.

In this subtitle:

(1) The term ‘‘ ‘above the line’ force structure of the Armed

Forces’’ means the force structure (including numbers,

strengths, and composition and major items of equipment) for

the Armed Forces at the following unit levels:

(A) In the case of the Army, the division.

(B) In the case of the Navy, the battle group.

(C) In the case of the Air Force, the wing.

(D) In the case of the Marine Corps, the expeditionary

force.

(E) In the case of special operations forces of the Army,

Navy, or Air Force, the major operating unit.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2629

(F) In the case of the strategic forces, the ballistic

missile submarine fleet, the heavy bomber force, and the

intercontinental ballistic missile force.

(2) The term ‘‘Commission on Roles and Missions of the

Armed Forces’’ means the Commission on Roles and Missions

of the Armed Forces established by subtitle E of title IX of

the National Defense Authorization Act for Fiscal Year 1994

(Public Law 103–160; 107 Stat. 1738; 10 U.S.C. 111 note).

(3) The term ‘‘military operation other than war’’ means

any operation other than war that requires the utilization

of the military capabilities of the Armed Forces, including peace

operations, humanitarian assistance operations and activities,

counter-terrorism operations and activities, disaster relief

activities, and counter-drug operations and activities.

(4) The term ‘‘peace operations’’ means military operations

in support of diplomatic efforts to reach long-term political

settlements of conflicts and includes peacekeeping operations

and peace enforcement operations.

TITLE X—GENERAL PROVISIONS

Subtitle A—Financial Matters

Sec. 1001. Transfer authority.

Sec. 1002. Incorporation of classified annex.

Sec. 1003. Authority for obligation of certain unauthorized fiscal year 1996 defense

appropriations.

Sec. 1004. Authorization of prior emergency supplemental appropriations for fiscal

year 1996.

Sec. 1005. Format for budget requests for Navy/Marine Corps and Air Force ammunition accounts.

Sec. 1006. Format for annual budget requests for Defense Airborne Reconnaissance

Program.

Sec. 1007. Limitation on use of Department of Defense funds transferred to the

Coast Guard.

Sec. 1008. Fisher House Trust Fund for the Department of the Navy.

Sec. 1009. Designation and liability of disbursing and certifying officials for the

Coast Guard.

Sec. 1010. Authority to suspend or terminate collection actions against deceased

members of the Coast Guard.

Sec. 1011. Department of Defense disbursing official check cashing and exchange

transactions.

Subtitle B—Naval Vessels and Shipyards

Sec. 1021. Repeal of requirement for continuous applicability of contracts for

phased maintenance of AE class ships.

Sec. 1022. Funding for second and third maritime prepositioning ships out of

National Defense Sealift Fund.

Sec. 1023. Transfer of certain obsolete tugboats of the Navy.

Sec. 1024. Transfer of U.S.S. Drum to city of Vallejo, California.

Sec. 1025. Sense of Congress concerning USS LCS 102 (LSSL 102).

Subtitle C—Counter-Drug Activities

Sec. 1031. Authority to provide additional support for counter-drug activities of

Mexico.

Sec. 1032. Availability of funds for certain drug interdiction and counter-drug

activities.

Sec. 1033. Transfer of excess personal property to support law enforcement

activities.

Sec. 1034. Sale by Federal departments or agencies of chemicals used to manufacture controlled substances.

Subtitle D—Reports and Studies

Sec. 1041. Annual report on Operation Provide Comfort and Operation Enhanced

Southern Watch.
110 STAT. 2630 PUBLIC LAW 104–201—SEPT. 23, 1996

Sec. 1042. Annual report on emerging operational concepts.

Sec. 1043. Report on Department of Defense military child care programs.

Sec. 1044. Report on Department of Defense military youth programs.

Sec. 1045. Quarterly reports regarding coproduction agreements.

Sec. 1046. Report on witness interview procedures for Department of Defense

criminal investigations.

Sec. 1047. Report on military readiness requirements of the Armed Forces.

Sec. 1048. Report on NATO enlargement.

Subtitle E—Management of Armed Forces Retirement Home

Sec. 1051. Retirement Home Boards of Directors.

Sec. 1052. Acceptance of uncompensated services.

Sec. 1053. Disposal of tract of real property in the District of Columbia.

Subtitle F—Other Matters

Sec. 1061. Policy on protection of national information infrastructure against

strategic attack.

Sec. 1062. Information systems security program.

Sec. 1063. Authority to accept services from foreign governments and international

organizations for defense purposes.

Sec. 1064. Prohibition on collection and release of detailed satellite imagery

relating to Israel.

Sec. 1065. George C. Marshall European Center for Strategic Security Studies.

Sec. 1066. Authority to award to civilian participants in the defense of Pearl

Harbor the Congressional Medal previously authorized only for

military participants in the defense of Pearl Harbor.

Sec. 1067. Assimilative crimes authority for traffic offenses on military installations.

Sec. 1068. Uniform Code of Military Justice amendments.

Sec. 1069. Punishment of interstate stalking.

Sec. 1070. Participation of members, dependents, and other persons in crime

prevention efforts at installations.

Sec. 1071. Display of State flags at installations and facilities of the Department

of Defense.

Sec. 1072. Treatment of excess operational support airlift aircraft.

Sec. 1073. Correction to statutory references to certain Department of Defense

organizations.

Sec. 1074. Technical and clerical amendments.

Sec. 1075. Modification to third-party liability to United States for tortious infliction of injury or disease on members of the uniformed services.

Sec. 1076. Chemical Stockpile Emergency Preparedness Program.

Sec. 1077. Exemption from requirements applicable to savings associations for

certain savings institutions serving military personnel.

Sec. 1078. Improvements to National Security Education Program.

Sec. 1079. Aviation and vessel war risk insurance.

Sec. 1080. Designation of memorial as National D–Day Memorial.

Sec. 1081. Sense of Congress regarding semiconductor trade agreement between

United States and Japan.

Sec. 1082. Agreements for exchange of defense personnel between the United

States and foreign countries.

Sec. 1083. Sense of Senate regarding Bosnia and Herzegovina.

Sec. 1084. Defense burdensharing.

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 1997 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.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2631

(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 of conference to accompany the conference

report on the bill H.R. 3230 of the One Hundred Fourth Congress

and transmitted to the President is hereby incorporated into this

Act.

(b) CONSTRUCTION WITH OTHER PROVISIONS OF ACT.—The

amounts specified in the Classified Annex are not in addition to

amounts authorized to be appropriated by other provisions of this

Act.

(c) LIMITATION ON USE OF FUNDS.—Funds appropriated pursuant to an authorization contained in this Act that are made available for a program, project, or activity referred to in the Classified

Annex may only be expended for such program, project, or activity

in accordance with such terms, conditions, limitations, restrictions,

and requirements as are set out for that program, project, or activity

in the Classified Annex.

(d) DISTRIBUTION OF CLASSIFIED ANNEX.—The President shall

provide for appropriate distribution of the Classified Annex, or

of appropriate portions of the annex, within the executive branch

of the Government.

SEC. 1003. AUTHORITY FOR OBLIGATION OF CERTAIN UNAUTHORIZED

FISCAL YEAR 1996 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 1996

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 1996 defense appropriations that are in excess of the amounts provided for such programs,

projects, and activities in fiscal year 1996 defense authorizations.

(c) DEFINITIONS.—For the purposes of this section:

(1) FISCAL YEAR 1996 DEFENSE APPROPRIATIONS.—The term

‘‘fiscal year 1996 defense appropriations’’ means amounts appropriated or otherwise made available to the Department of

Defense for fiscal year 1996 in the Department of Defense

Appropriations Act, 1996 (Public Law 104–61).

(2) FISCAL YEAR 1996 DEFENSE AUTHORIZATIONS.—The term

‘‘fiscal year 1996 defense authorizations’’ means amounts

authorized to be appropriated for the Department of Defense

President.

10 USC 114 note.
110 STAT. 2632 PUBLIC LAW 104–201—SEPT. 23, 1996

for fiscal year 1996 in the National Defense Authorization

Act for Fiscal Year 1996 (Public Law 104–106).

SEC. 1004. AUTHORIZATION OF PRIOR EMERGENCY SUPPLEMENTAL

APPROPRIATIONS FOR FISCAL YEAR 1996.

Amounts authorized to be appropriated to the Department of

Defense for fiscal year 1996 in the National Defense Authorization

Act for Fiscal Year 1996 (Public Law 104–106) 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 the Omnibus Consolidated Rescissions and Appropriations Act of 1996 (Public Law 104–134).

SEC. 1005. FORMAT FOR BUDGET REQUESTS FOR NAVY/MARINE

CORPS AND AIR FORCE AMMUNITION ACCOUNTS.

Section 114 of title 10, United States Code, is amended by

adding at the end the following new subsection:

‘‘(f) In each budget submitted by the President to Congress

under section 1105 of title 31, amounts requested for procurement

of ammunition for the Navy and Marine Corps, and for procurement

of ammunition for the Air Force, shall be set forth separately

from other amounts requested for procurement.’’.

SEC. 1006. FORMAT FOR ANNUAL BUDGET REQUESTS FOR DEFENSE

AIRBORNE RECONNAISSANCE PROGRAM.

(a) SEPARATE DISPLAY REQUIRED.—The Secretary of Defense

shall ensure that in the budget justification documents for any

fiscal year there are set forth separately the amount requested

for research, development, test, and evaluation, and the amount

requested for procurement, for each program area within the

Defense Airborne Reconnaissance Program.

(b) PROGRAM AREAS WITHIN DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.—For purposes of subsection (a), the programs

of the Defense Airborne Reconnaissance Program shall be categorized as being within one of the following areas:

(1) Tactical unmanned aerial vehicles.

(2) Endurance unmanned aerial vehicles.

(3) Airborne reconnaissance systems.

(4) Manned reconnaissance systems.

(5) Distributed common ground systems.

(6) Any additional program area established by the

Secretary of Defense.

(c) BUDGET JUSTIFICATION DOCUMENTS.—For purposes of subsection (a), the term ‘‘budget justification documents’’ means the

supporting budget documentation submitted to the congressional

defense committees in support of the budget of the Department

of Defense for a fiscal year as included in the budget of the President

submitted under section 1105 of title 31, United States Code, for

that fiscal year.

SEC. 1007. LIMITATION ON USE OF DEPARTMENT OF DEFENSE FUNDS

TRANSFERRED TO THE COAST GUARD.

(a) LIMITATION TO NATIONAL SECURITY FUNCTIONS.—Funds

appropriated to the Department of Defense for fiscal year 1997

that are transferred pursuant to law to the Coast Guard may

be used only for the performance of national security functions

of the Coast Guard in support of the Department of Defense.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2633

(b) CERTIFICATION REQUIRED.—Funds appropriated to the

Department of Defense for fiscal year 1997 may not be transferred

to the Coast Guard until the Secretary of Defense and the Secretary

of Transportation jointly certify to Congress that the funds so

transferred will be used only in accordance with the limitation

in subsection (a).

(c) PERIODIC GAO AUDITS.—The Comptroller General of the

United States shall—

(1) audit, from time to time, the use of funds transferred

to the Coast Guard from appropriations for the Department

of Defense for fiscal year 1997 in order to verify that those

funds are being used in accordance with the limitation in

subsection (a); and

(2) notify the congressional defense committees of any use

of those funds that, in the judgment of the Comptroller General,

is a violation of that limitation.

SEC. 1008. FISHER HOUSE TRUST FUND FOR THE DEPARTMENT OF

THE NAVY.

(a) AUTHORITY.—Section 2221 of title 10, United States Code,

is amended—

(1) by adding at the end of subsection (a) the following:

‘‘(3) The Fisher House Trust Fund, Department of the

Navy.’’;

(2) in subsection (c)—

(A) by redesignating paragraph (3) as paragraph

(4); and

(B) by inserting after paragraph (2) the following new

paragraph (3):

‘‘(3) Amounts in the Fisher House Trust Fund, Department

of the Navy, 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 Navy.’’; and

(3) in subsection (d)(1), by striking out ‘‘or the Air Force’’

and inserting in lieu thereof ‘‘, the Air Force, or the Navy’’.

(b) CORPUS OF TRUST FUNDS.—The Secretary of the Navy shall

transfer to the Fisher House Trust Fund, Department of the Navy,

established by section 2221(a)(3) of title 10, United States Code

(as added by subsection (a)(1)), all amounts in the accounts for

Navy installations and other facilities that, as of the date of the

enactment of this Act, are available for operation and maintenance

of Fisher houses, as defined in section 2221(d) of such title.

(c) CONFORMING AMENDMENTS.—Section 1321 of title 31, United

States Code, is amended—

(1) by adding at the end of subsection (a) the following:

‘‘(94) Fisher House Trust Fund, Department of the 

Navy.’’; and

(2) by adding at the end of subsection (b)(2) the following:

‘‘(D) Fisher House Trust Fund, Department of the Navy.’’.

SEC. 1009. DESIGNATION AND LIABILITY OF DISBURSING AND

CERTIFYING OFFICIALS FOR THE COAST GUARD.

(a) DISBURSING OFFICIALS.—(1) Section 3321(c) of title 31,

United States Code, is amended by adding at the end the following:

‘‘(3) The Department of Transportation (with respect to

public money available for expenditure by the Coast Guard

when it is not operating as a service in the Navy).’’.

10 USC 2221

note.

Notification.
110 STAT. 2634 PUBLIC LAW 104–201—SEPT. 23, 1996

(2)(A) Chapter 17 of title 14, United States Code, is amended

by adding at the end the following new section:

‘‘§ 673. Designation, powers, and accountability of deputy

disbursing officials

‘‘(a)(1) Subject to paragraph (3), a disbursing official of the

Coast Guard may designate a deputy disbursing official—

‘‘(A) to make payments as the agent of the disbursing

official;

‘‘(B) to sign checks drawn on disbursing accounts of the

Secretary of the Treasury; and

‘‘(C) to carry out other duties required under law.

‘‘(2) The penalties for misconduct that apply to a disbursing

official apply to a deputy disbursing official designated under this

subsection.

‘‘(3) A disbursing official may make a designation under paragraph (1) only with the approval of the Secretary of Transportation

(when the Coast Guard is not operating as a service in the Navy).

‘‘(b)(1) If a disbursing official of the Coast Guard dies, becomes

disabled, or is separated from office, a deputy disbursing official

may continue the accounts and payments in the name of the former

disbursing official until the last day of the second month after

the month in which the death, disability, or separation occurs.

The accounts and payments shall be allowed, audited, and settled

as provided by law. The Secretary of the Treasury shall honor

checks signed in the name of the former disbursing official in

the same way as if the former disbursing official had continued

in office.

‘‘(2) The deputy disbursing official, and not the former disbursing official or the estate of the former disbursing official, is liable

for the actions of the deputy disbursing official under this subsection.

‘‘(c)(1) Except as provided in paragraph (2), this section does

not apply to the Coast Guard when section 2773 of title 10 applies

to the Coast Guard by reason of the operation of the Coast Guard

as a service in the Navy.

‘‘(2) A designation of a deputy disbursing official under subsection (a) that is made while the Coast Guard is not operating

as a service in the Navy continues in effect for purposes of section

2773 of title 10 while the Coast Guard operates as a service in

the Navy unless and until the designation is terminated by the

disbursing official who made the designation or an official authorized to approve such a designation under subsection (a)(3) of such

section.’’.

(B) The table of sections at the beginning of such chapter

is amended by adding at the end the following new item:

‘‘673. Designation, powers, and accountability of deputy disbursing officials.’’.

(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 by striking out ‘‘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’’ and inserting in lieu thereof ‘‘members of the armed

forces may certify vouchers when authorized, in writing, by the

Secretary of Defense or, in the case of the Coast Guard when

it is not operating as a service in the Navy, by the Secretary

of Transportation’’.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2635

(c) CONFORMING AMENDMENTS.—(1) Section 1007(a) of title 37,

United States Code, is amended by inserting after ‘‘Secretary of

Defense’’ the following: ‘‘(or the Secretary of Transportation, in

the case of an officer of the Coast Guard when the Coast Guard

is not operating as a service in the Navy)’’.

(2) Section 3527(b)(1) of title 31, United States Code, is

amended—

(A) in subparagraph (A)(i), by inserting after ‘‘Department

of Defense’’ the following: ‘‘(or the Secretary of Transportation,

in the case of a disbursing official of the Coast Guard when

the Coast Guard is not operating as a service in the Navy)’’;

and

(B) in subparagraph (B), by inserting after ‘‘or the Secretary

of the appropriate military department’’ the following: ‘‘(or the

Secretary of Transportation, in the case of a disbursing official

of the Coast Guard when the Coast Guard is not operating

as a service in the Navy)’’.

SEC. 1010. AUTHORITY TO SUSPEND OR TERMINATE COLLECTION

ACTIONS AGAINST DECEASED MEMBERS OF THE COAST

GUARD.

Section 3711(g) of title 31, United States Code, is amended—

(1) in paragraph (1), by striking out ‘‘or Marine Corps’’

and inserting in lieu thereof ‘‘Marine Corps, or Coast Guard

during a period when the Coast Guard is operating as a service

in the Navy’’;

(2) by redesignating paragraph (2) as paragraph (3); and

(3) by inserting after paragraph (1) the following new

paragraph (2):

‘‘(2) The Secretary of Transportation may suspend or terminate

an action by the Secretary 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 Coast Guard if the Secretary determines

that, under the circumstances applicable with respect to the

deceased person, it is appropriate to do so.’’.

SEC. 1011. DEPARTMENT OF DEFENSE DISBURSING OFFICIAL CHECK

CASHING AND EXCHANGE TRANSACTIONS.

Section 3342(b) of title 31, United States Code, is amended—

(1) by striking out the period at the end of paragraph

(3) and inserting in lieu thereof a semicolon;

(2) by striking out ‘‘and’’ at the end of paragraph (5);

(3) by striking out the period at the end of paragraph

(6) and inserting in lieu thereof ‘‘; or’’; and

(4) by adding at the end the following new paragraph:

‘‘(7) a Federal credit union (as defined in section 101(1)

of the Federal Credit Union Act (12 U.S.C. 1752(1)) that at

the request of the Secretary of Defense is operating on a United

States military installation in a foreign country, but only if

that country does not permit contractor-operated military banking facilities to operate on such installations.’’.
110 STAT. 2636 PUBLIC LAW 104–201—SEPT. 23, 1996

Subtitle B—Naval Vessels and Shipyards

SEC. 1021. REPEAL OF REQUIREMENT FOR CONTINUOUS APPLICABILITY OF CONTRACTS FOR PHASED MAINTENANCE OF AE

CLASS SHIPS.

Section 1016 of the National Defense Authorization Act for

Fiscal Year 1996 (Public Law 104–106; 110 Stat. 425) is repealed.

SEC. 1022. FUNDING FOR SECOND AND THIRD MARITIME

PREPOSITIONING SHIPS OUT OF NATIONAL DEFENSE SEALIFT FUND.

(a) NATIONAL DEFENSE SEALIFT FUND.—To the extent provided

in appropriations Acts, funds in the National Defense Sealift Fund

may be obligated and expended for the purchase and conversion,

or construction, of a total of three ships for the purpose of enhancing

Marine Corps prepositioning ship squadrons.

(b) AUTHORIZATION OF APPROPRIATIONS.—Of the amount

authorized to be appropriated under section 302(2), $240,000,000

is authorized to be appropriated for the purpose stated in subsection

(a).

SEC. 1023. TRANSFER OF CERTAIN OBSOLETE TUGBOATS OF THE

NAVY.

(a) REQUIREMENT TO TRANSFER VESSELS.—The Secretary of

the Navy shall transfer the six obsolete tugboats of the Navy

specified in subsection (b) to the Northeast Wisconsin Railroad

Transportation Commission, an instrumentality of the State of

Wisconsin, if the Secretary determines that the tugboats are not

needed for transfer, donation, or other disposal under title II of

the Federal Property and Administrative Services Act of 1949 (40

U.S.C. 481 et seq.).

(b) VESSELS COVERED.—The requirement in subsection (a)

applies to the six decommissioned Cherokee class tugboats, listed

as of the date of the enactment of this Act as being surplus to

the Navy, that are designated as ATF–105, ATF–110, ATF–149,

ATF–158, ATF–159, and ATF–160.

(c) CONDITION RELATING TO ENVIRONMENTAL COMPLIANCE.—

The Secretary shall require as a condition of the transfer of a

vessel under subsection (a) that use of the vessel by the Commission

not commence until the terms of any necessary environmental

compliance letter or agreement with respect to that vessel have

been complied with.

(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions (including a requirement that the transfer be at no cost to the Government) in connection with the transfers required by subsection (a) as the Secretary

considers appropriate.

SEC. 1024. TRANSFER OF U.S.S. DRUM TO CITY OF VALLEJO,

CALIFORNIA.

(a) TRANSFER.—The Secretary of the Navy shall transfer the

U.S.S. Drum (SSN–677) to the city of Vallejo, California, in accordance with this section and upon satisfactory completion of a ship

donation application. Before making such transfer, the Secretary

of the Navy shall remove from the vessel the reactor compartment

and other classified and sensitive military equipment.

Wisconsin.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2637

(b) FUNDING.—As provided in section 7306(c) of title 10, United

States Code, the transfer of the vessel authorized by this section

shall be made at no cost to the United States (beyond the cost

which the United States would otherwise incur for dismantling

and recycling of the vessel).

(c) APPLICABLE LAW.—The transfer under this section shall

be subject to subsection (b) of section 7306 of title 10, United

States Code, but the provisions of subsection (d) of such section

shall not be applicable to such transfer.

SEC. 1025. SENSE OF CONGRESS CONCERNING USS LCS 102 (LSSL 102).

It is the sense of Congress that the Secretary of Defense should

use existing authorities in law to seek the expeditious return,

upon completion of service, of the former USS LCS 102 (LSSL

102) from the Government of Thailand in order for the ship to

be transferred to the United States Shipbuilding Museum in Quincy,

Massachusetts.

Subtitle C—Counter-Drug Activities

SEC. 1031. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR

COUNTER-DRUG ACTIVITIES OF MEXICO.

(a) AUTHORITY TO PROVIDE ADDITIONAL SUPPORT.—Subject to

subsection (e), during fiscal year 1997, the Secretary of Defense

may provide the Government of Mexico with the support described

in subsection (b) for the counter-drug activities of the Government

of Mexico. The support provided under the authority of this subsection shall be in addition to support provided to the Government

of Mexico under any other provision of law.

(b) TYPES OF SUPPORT.—The authority under subsection (a)

is limited to the provision of the following types of support:

(1) The transfer of nonlethal protective and utility personnel equipment.

(2) The transfer of the following nonlethal specialized

equipment:

(A) Navigation equipment.

(B) Secure and nonsecure communications equipment.

(C) Photo equipment.

(D) Radar equipment.

(E) Night vision systems.

(F) Repair equipment and parts for equipment referred

to in subparagraphs (A), (B), (C), (D), and (E).

(3) The transfer of nonlethal components, accessories,

attachments, parts (including ground support equipment),

firmware, and software for aircraft or patrol boats, and related

repair equipment.

(4) The maintenance and repair of equipment of the

Government of Mexico that is used for counter-drug activities.

(c) APPLICABILITY OF OTHER SUPPORT AUTHORITIES.—Except

as otherwise provided in this section, the provisions of section

1004 of the National Defense Authorization Act for Fiscal Year

1991 (Public Law 101–510; 10 U.S.C. 374 note) shall apply to

the provision of support under this section.

(d) FUNDING.—Of the amount authorized to be appropriated

under section 301(19) for drug interdiction and counter-drug activities,
110 STAT. 2638 PUBLIC LAW 104–201—SEPT. 23, 1996

not more than $8,000,000 shall be available for the provision

of support under this section.

(e) LIMITATIONS.—(1) The Secretary may not obligate or expend

funds to provide support under this section until 15 days after

the date on which the Secretary submits to the committees referred

to in paragraph (3) the certification described in paragraph (2).

(2) The certification referred to in paragraph (1) is a written

certification of the following:

(A) That the provision of support under this section will

not adversely affect the military preparedness of the United

States Armed Forces.

(B) That the equipment and materiel provided as support

will be used only by officials and employees of the Government

of Mexico who have undergone a background check by that

government.

(C) That the Government of Mexico has certified to the

Secretary that—

(i) the equipment and material provided as support

will be used only by the officials and employees referred

to in subparagraph (B);

(ii) none of the equipment or materiel will be transferred (by sale, gift, or otherwise) to any person or entity

not authorized by the United States to receive the equipment or materiel; and

(iii) the equipment and materiel will be used only

for the purposes intended by the United States Government.

(D) That the Government of Mexico has implemented, to

the satisfaction of the Secretary, a system that will provide

an accounting and inventory of the equipment and materiel

provided as support.

(E) That the departments, agencies, and instrumentalities

of the Government of Mexico will grant United States Government personnel access to any of the equipment or materiel

provided as support, or to any of the records relating to such

equipment or materiel, under terms and conditions similar

to the terms and conditions imposed with respect to such access

under section 505(a)(3) of the Foreign Assistance Act of 1961

(22 U.S.C. 2314(a)(3)).

(F) That the Government of Mexico will provide security

with respect to the equipment and materiel provided as support

that is substantially the same degree of security that the United

States Government would provide with respect to such equipment and materiel.

(G) That the Government of Mexico will permit continuous

observation and review by United States Government personnel

of the use of the equipment and materiel provided as support

under terms and conditions similar to the terms and conditions

imposed with respect to such observation and review under

section 505(a)(3) of the Foreign Assistance Act of 1961 (22

U.S.C. 2314(a)(3)).

(3) The committees referred to in this paragraph 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.

Certification.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2639

SEC. 1032. AVAILABILITY OF FUNDS FOR CERTAIN DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES.

(a) P–3B AIRCRAFT.—Of the funds authorized to be appropriated

under section 301(19) for drug interdiction and counter-drug activities, not more than $98,000,000 may be used for the purpose of

procuring or modifying two P–3B aircraft for use by departments

and agencies of the United States outside the Department of

Defense for drug interdiction and counter-drug activities. However,

funds may not be obligated for such purpose until the Secretary

of Defense submits to the congressional defense committees a certification that the procurement or modification of such aircraft and

the use of such aircraft by other departments or agencies of the

United States will significantly reduce the level of support that

would otherwise be required of E–3 AWACS aircraft as part of

the drug interdiction and counter-drug mission of the Department

of Defense.

(b) NONINTRUSIVE INSPECTION DEVICES.—Of the funds authorized to be appropriated under section 301(19) for drug interdiction

and counter-drug activities, not more than $10,000,000 may be

used to procure three nonintrusive inspection devices for use by

departments and agencies of the United States outside the Department of Defense for drug interdiction and counter-drug activities.

(c) AUTHORITY TO TRANSFER EQUIPMENT.—The Secretary of

Defense may transfer to the head of any department or agency

of the United States outside the Department of Defense any equipment procured or modified under this section with funds referred

to in this section.

SEC. 1033. TRANSFER OF EXCESS PERSONAL PROPERTY TO SUPPORT

LAW ENFORCEMENT ACTIVITIES.

(a) TRANSFER AUTHORITY.—(1) Chapter 153 of title 10, United

States Code, is amended by inserting after section 2576 the following new section:

‘‘§ 2576a. Excess personal property: sale or donation for law

enforcement activities

‘‘(a) TRANSFER AUTHORIZED.—(1) Notwithstanding any other

provision of law and subject to subsection (b), the Secretary of

Defense may transfer to Federal and State agencies personal property of the Department of Defense, including small arms and

ammunition, that the Secretary determines is—

‘‘(A) suitable for use by the agencies in law enforcement

activities, including counter-drug and counter-terrorism activities; and

‘‘(B) excess to the needs of the Department of Defense.

‘‘(2) The Secretary shall carry out this section in consultation

with the Attorney General and the Director of National Drug Control Policy.

‘‘(b) CONDITIONS FOR TRANSFER.—The Secretary of Defense may

transfer personal property under this section only if—

‘‘(1) the property is drawn from existing stocks of the

Department of Defense;

‘‘(2) the recipient accepts the property on an as-is, whereis basis;

‘‘(3) the transfer is made without the expenditure of any

funds available to the Department of Defense for the procurement of defense equipment; and

Certification.
110 STAT. 2640 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(4) all costs incurred subsequent to the transfer of the

property are borne or reimbursed by the recipient.

‘‘(c) CONSIDERATION.—Subject to subsection (b)(4), the Secretary

may transfer personal property under this section without charge

to the recipient agency.

‘‘(d) PREFERENCE FOR CERTAIN TRANSFERS.—In considering

applications for the transfer of personal property under this section,

the Secretary shall give a preference to those applications indicating

that the transferred property will be used in the counter-drug

or counter-terrorism activities of the recipient agency.’’.

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

is amended by inserting after the item relating to section 2576

the following new item:

‘‘2576a. Excess personal property: sale or donation for law enforcement activities.’’.

(b) CONFORMING AMENDMENTS.—(1) Section 1208 of the

National Defense Authorization Act for Fiscal Years 1990 and 1991

(Public Law 101–189; 10 U.S.C. 372 note) is repealed.

(2) Section 1005 of the National Defense Authorization Act

for Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1630) is

amended by striking out ‘‘section 1208 of the National Defense

Authorization Act for Fiscal Years 1990 and 1991 (10 U.S.C. 372

note) and section 372’’ and inserting in lieu thereof ‘‘sections 372

and 2576a’’.

SEC. 1034. SALE BY FEDERAL DEPARTMENTS OR AGENCIES OF

CHEMICALS USED TO MANUFACTURE CONTROLLED SUBSTANCES.

(a) DEA CERTIFICATION.—The Controlled Substances Act is

amended by inserting after section 519 (21 U.S.C. 889) the following

new section:

‘‘SEC. 520. REVIEW OF FEDERAL SALES OF CHEMICALS USABLE TO

MANUFACTURE CONTROLLED SUBSTANCES.

‘‘A Federal department or agency may not sell from the stocks

of the department or agency any chemical which, as determined

by the Administrator of the Drug Enforcement Administration,

could be used in the manufacture of a controlled substance unless

the Administrator certifies in writing to the head of the department

or agency that there is no reasonable cause to believe that the

sale of the chemical would result in the illegal manufacture of

a controlled substance.’’.

(b) CLERICAL AMENDMENT.—The table of contents of the Comprehensive Drug Abuse Prevention and Control Act of 1970 (84

Stat. 1236) is amended by inserting after the item relating to

section 519 the following new item:

‘‘Sec. 520. Review of Federal sales of chemicals usable to manufacture controlled

substances.’’.

Subtitle D—Reports and Studies

SEC. 1041. ANNUAL REPORT ON OPERATION PROVIDE COMFORT AND

OPERATION ENHANCED SOUTHERN WATCH.

(a) ANNUAL REPORT.—Not later than March 1 of each year,

the Secretary of Defense shall submit to Congress a report on

Operation Provide Comfort and Operation Enhanced Southern

Watch.

10 USC 113 note.

21 USC 890.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2641

(b) MATTERS RELATING TO OPERATION PROVIDE COMFORT.— Each report under subsection (a) shall include, with respect to

Operation Provide Comfort, the following:

(1) A detailed presentation of the projected costs to be

incurred by the Department of Defense for that operation during the fiscal year in which the report is submitted and projected for the following fiscal year, together with a discussion

of missions and functions expected to be performed by the

Department as part of that operation during each of those

fiscal years.

(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 that operation during each of those fiscal years.

(3) A discussion of options being pursued to reduce the

involvement of the Department of Defense in those aspects

of that operation that are not directly related to the military

mission of the Department of Defense.

(4) A discussion of the exit strategy for United States

involvement in, and support for, that operation.

(5) A description of alternative approaches to accomplishing

the mission of that operation that are designed to limit the

scope and cost to the Department of Defense of accomplishing

that mission while maintaining mission success.

(6) The contributions (both in-kind and actual) by other

nations to the costs of conducting that operation.

(7) A detailed presentation of significant Iraqi military

activity (including specific violations of the no-fly zone) determined to jeopardize the security of the Kurdish population

in northern Iraq.

(c) MATTERS RELATING TO OPERATION ENHANCED SOUTHERN

WATCH.—Each report under subsection (a) shall include, with

respect to Operation Enhanced Southern Watch, the following:

(1) The expected duration and annual costs of the various

elements of that operation.

(2) The political and military objectives associated with

that operation.

(3) The contributions (both in-kind and actual) by other

nations to the costs of conducting that operation.

(4) A description of alternative approaches to accomplishing

the mission of that operation that are designed to limit the

scope and cost of accomplishing that mission while maintaining

mission success.

(5) A comprehensive discussion of the political and military

objectives and initiatives that the Department of Defense has

pursued, and intends to pursue, in order to reduce United

States involvement in that operation.

(6) A detailed presentation of significant Iraqi military

activity (including specific violations of the no-fly zone) determined to jeopardize the security of the Shiite population by

air attack in southern Iraq or to jeopardize the security of

Kuwait.

(d) TERMINATION OF REPORT REQUIREMENT.—The requirement

under subsection (a) shall cease to apply with respect to an operation named in that subsection upon the termination of United

States involvement in that operation.

(e) DEFINITIONS.—For purposes of this section:
110 STAT. 2642 PUBLIC LAW 104–201—SEPT. 23, 1996

(1) OPERATION ENHANCED SOUTHERN WATCH.—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.

(2) OPERATION PROVIDE COMFORT.—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. 1042. ANNUAL REPORT ON EMERGING OPERATIONAL CONCEPTS.

(a) REPORT REQUIRED.—Not later than March 1 of each year

through 2000, 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 emerging

operational concepts. Each such report shall be prepared by the

Secretary in consultation with the Chairman of the Joint Chiefs

of Staff.

(b) MATTERS TO BE INCLUDED.—Each such report shall contain

a description, for the year preceding the year in which the report

is submitted, of the following:

(1) The process undertaken in the Department of Defense,

and in each of the Army, Navy, Air Force, and Marine Corps,

to define and develop doctrine, operational concepts, organizational concepts, and acquisition strategies to address—

(A) the potential of emerging technologies for significantly improving the operational effectiveness of the Armed

Forces;

(B) changes in the international order that may necessitate changes in the operational capabilities of the Armed

Forces;

(C) emerging capabilities of potential adversary

states; and

(D) changes in defense budget projections.

(2) The manner in which the processes described in paragraph (1) are harmonized to ensure that there is a sufficient

consideration of the development of joint doctrine, operational

concepts, and acquisition strategies.

(3) The manner in which the processes described in paragraph (1) are coordinated through the Joint Requirements Oversight Council and reflected in the planning, programming, and

budgeting process of the Department of Defense.

SEC. 1043. REPORT ON DEPARTMENT OF DEFENSE MILITARY CHILD

CARE PROGRAMS.

(a) FINDINGS.—Congress makes the following findings:

(1) The Department of Defense should be congratulated

on the successful implementation of the Military Child Care

Act of 1989 (originally enacted as title XV of Public Law 101–

189 and subsequently codified as subchapter II of chapter 88

of title 10, United States Code).

(2) The actions taken by the Department as a result of

that Act have dramatically improved the availability, affordability, quality, and consistency of the child-care services provided to members of the Armed Forces.

(3) Child care is important to the readiness of members

of the Armed Forces since single parents and couples in military

service must have access to affordable child care of good quality

10 USC 113 note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2643

if they are to perform their jobs and respond effectively to

long work hours or deployments.

(4) Child care is important to the retention of members

of the Armed Forces in military service because the dissatisfaction of the families of such members with military life is a

primary reason for the departure of such members from military

service.

(b) SENSE OF CONGRESS RELATED TO MILITARY-CIVILIAN CHILDCARE PARTNERSHIP PROGRAMS.—It is the sense of Congress that—

(1) the civilian and military child-care communities,

Federal, State, and local agencies, and businesses and communities involved in the provision of child-care services could

benefit from the development of partnerships to foster an

exchange of ideas, information, and materials relating to their

experiences with the provision of such services and to encourage

closer relationships between military installations and the

communities that support them;

(2) such partnerships would be beneficial to all families

by helping providers of child-care services exchange ideas about

innovative ways to address barriers to the effective provision

of such services; and

(3) there are many ways that such partnerships could

be developed, including—

(A) cooperation between the directors and curriculum

specialists of military child development centers and

civilian child development centers in assisting such centers

in the accreditation process;

(B) use of family support staff to conduct parent and

family workshops for new parents and parents with young

children in family housing on military installations and

in communities in the vicinity of such installations;

(C) internships in Department of Defense child-care

programs for civilian child-care providers to broaden the

base of good-quality child-care services in communities in

the vicinity of military installations; and

(D) attendance by civilian child-care providers at

Department child-care training classes on a space-available

basis.

(c) REPORT.—Not later than June 30, 1997, the Secretary of

Defense shall submit to Congress a report on the status of any

partnerships and other initiatives undertaken by the Department

of Defense as described in subsection (b), including recommendations for additional ways to improve the child-care programs of

the Department of Defense and to improve such programs so as

to benefit civilian child-care providers in communities in the vicinity

of military installations.

SEC. 1044. REPORT ON DEPARTMENT OF DEFENSE MILITARY YOUTH

PROGRAMS.

(a) FINDINGS.—Congress makes the following findings:

(1) Programs of the Department of Defense for youth who

are dependents of members of the Armed Forces have not

received the same level of attention and resources as have

child-care programs of the Department since the passage of

the Military Child Care Act of 1989 (originally enacted as

title XV of Public Law 101–189 and subsequently codified as

subchapter II of chapter 88 of title 10, United States Code).
110 STAT. 2644 PUBLIC LAW 104–201—SEPT. 23, 1996

(2) Older children deserve as much attention to their developmental needs as do younger children.

(3) The Department has started to direct more attention

to programs for youths who are dependents of members of

the Armed Forces by providing funds for the implementation

of 20 model community programs to address the needs of such

youths.

(4) The lessons learned from such programs could apply

to civilian youth programs as well.

(b) SENSE OF CONGRESS RELATED TO MILITARY-CIVILIAN YOUTH

PARTNERSHIP PROGRAMS.—It is the sense of Congress that—

(1) the Department of Defense, Federal, State, and local

agencies, and businesses and communities involved in conducting youth programs could benefit from the development of

partnerships to foster an exchange of ideas, information, and

materials relating to such programs and to encourage closer

relationships between military installations and the communities that support them;

(2) such partnerships could be beneficial to all families

by helping the providers of services for youths exchange ideas

about innovative ways to address barriers to the effective provision of such services; and

(3) there are many ways that such partnerships could

be developed, including—

(A) cooperation between the Department and Federal

and State educational agencies in exploring the use of

public school facilities for child-care programs and youth

programs that are mutually beneficial to the Department

and civilian communities and complement programs of the

Department carried out at its facilities; and

(B) improving youth programs that enable adolescents

to relate to new peer groups when families of members

of the Armed Forces are relocated.

(c) REPORT.—Not later than June 30, 1997, the Secretary of

Defense shall submit to Congress a report on the status of any

partnerships and other initiatives undertaken by the Department

as described in subsection (b), including recommendations for additional ways to improve the youth programs of the Department

of Defense and to improve such programs so as to benefit communities in the vicinity of military installations.

SEC. 1045. QUARTERLY REPORTS REGARDING COPRODUCTION

AGREEMENTS.

(a) QUARTERLY REPORTS ON COPRODUCTION AGREEMENTS.—Section 36(a) of the Arms Export Control Act (22 U.S.C. 2776(a))

is amended—

(1) by striking out ‘‘and’’ at the end of paragraph (10);

(2) by striking out the period at the end of paragraph

(11) and inserting in lieu thereof ‘‘; and’’; and

(3) by inserting after paragraph (11) the following new

paragraph:

‘‘(12) a report on all concluded government-to-government

agreements regarding foreign coproduction of defense articles

of United States origin and all other concluded agreements

involving coproduction or licensed production outside of the

United States of defense articles of United States origin (including coproduction memoranda of understanding or agreement)
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2645

that have not been previously reported under this subsection,

which shall include—

‘‘(A) the identity of the foreign countries, international

organizations, or foreign firms involved;

‘‘(B) a description and the estimated value of the

articles authorized to be produced, and an estimate of

the quantity of the articles authorized to be produced;

‘‘(C) a description of any restrictions on third-party

transfers of the foreign-manufactured articles; and

‘‘(D) if any such agreement does not provide for United

States access to and verification of quantities of articles

produced overseas and their disposition in the foreign country, a description of alternative measures and controls

incorporated in the coproduction or licensing program to

ensure compliance with restrictions in the agreement on

production quantities and third-party transfers.’’.

(b) EFFECTIVE DATE.—Paragraph (12) of section 36(a) of the

Arms Export Control Act, as added by subsection (a)(3), does not

apply with respect to an agreement described in such paragraph

entered into before the date of the enactment of this Act.

SEC. 1046. REPORT ON WITNESS INTERVIEW PROCEDURES FOR

DEPARTMENT OF DEFENSE CRIMINAL INVESTIGATIONS.

(a) SURVEY OF MILITARY DEPARTMENT POLICIES AND PRACTICES.—The Comptroller General of the United States shall conduct

a survey of the policies and practices of the Naval Criminal Investigative Service with respect to the manner in which interviews

of suspects and witnesses are conducted in connection with criminal

investigations of allegations of contractor fraud. The purpose of

the survey shall be to ascertain whether or not investigators and

agents of the Naval Criminal Investigative Service conduct investigations of contractor fraud in accordance with generally accepted

Federal law enforcement standards and applicable law.

(b) REPORT.—Not later than 180 days after the date of the

enactment of this Act, the Comptroller General shall submit to

the Committee on National Security of the House of Representatives

and the Committee on Armed Services of the Senate a report

concerning the survey under subsection (a). The report shall specifically address the following:

(1) The extent to which investigators of the Naval Criminal

Investigative Service investigators and agents of the Naval

Criminal Investigative Service conduct investigations of contractor fraud in accordance with generally accepted Federal

law enforcement standards and applicable law.

(2) The extent to which the interview policies established

by Department of Defense directives or Navy regulations are

adequate to instruct and guide investigators in the proper

conduct of subject and witness interviews.

(3) The desirability and feasibility of providing for video

and audio recording of interviews and, if recording is desirable,

the circumstances under which recordings should be made.

(4) The desirability and feasibility of making such recordings or written transcriptions of interviews, or both, available

on demand to the subject or witness interviewed.

(5) The extent to which existing Department of Defense

directives and Navy regulations address the carrying and display of weapons by agents, together with an assessment of

22 USC 2776

note.
110 STAT. 2646 PUBLIC LAW 104–201—SEPT. 23, 1996

whether any change in any such directive or regulation is

necessary.

(6) The extent to which existing Department of Defense

directives and Navy regulations provide guidance to agents

to ensure that the agents’ conduct and demeanor is in accordance with generally accepted Federal law enforcement standards and applicable law.

(7) Any recommendation for legislation to ensure that

investigators and agents of the Naval Criminal Investigative

Service use legal and proper tactics during interviews in connection with criminal investigations of allegations of contractor

fraud.

SEC. 1047. REPORT ON MILITARY READINESS REQUIREMENTS OF THE

ARMED FORCES.

(a) REPORT REQUIRED.—Not later than January 31, 1997, 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 military readiness

requirements of the active and reserve components of the Armed

Forces, including specific combat units, combat support units, and

combat service support units. Based on the assessment scenario

described in subsection (c), the report shall assess such readiness

requirements under a tiered readiness and response system that

categorizes a given unit of the Armed Forces according to the

likelihood that the unit will be required to respond to a military

conflict and the time in which the unit will be required to respond.

(b) PREPARATION OF REPORT.—The Chairman of the Joint Chiefs

of Staff, together with the other members of the Joint Chiefs of

Staff specified in section 151(a) of title 10, United States Code,

shall prepare the report required by subsection (a). The Chairman

of the Joint Chiefs of Staff shall consult with the Commander

of the Special Operations Command in the preparation of the report.

(c) ASSESSMENT SCENARIO.—The report shall assess readiness

requirements in a scenario based on the following assumptions:

(1) The conflict is in a generic theater of operations located

anywhere in the world and does not exceed the notional limits

for a major regional conflict.

(2) The forces available for deployment include the forces

described in the Bottom-Up Review force structure, including

all planned force enhancements.

(3) Assistance is not available from allies.

(d) ASSESSMENT ELEMENTS.—The report shall identify by unit

type and component, and assess the readiness requirements of,

all active and reserve component units. Each such unit shall be

categorized within one of the following classifications:

(1) Forward-deployed and crisis response forces, or ‘‘Tier

I’’ forces, that possess limited internal sustainment capability

and do not require immediate access to regional air bases

or ports or overflight rights, including the following:

(A) Force units that are routinely deployed forward

at sea or on land outside the United States.

(B) Combat-ready crises response forces that are

capable of mobilizing and deploying within 10 days after

receipt of orders.

(C) Forces that are supported by prepositioning equipment afloat or are capable of being inserted into a theater
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2647

upon the capture of a port or airfield by forcible entry

forces.

(2) Combat-ready follow-on forces, or ‘‘Tier II’’ forces, that

can be mobilized and deployed to a theater within approximately 60 days after receipt of orders.

(3) Combat-ready conflict resolution forces, or ‘‘Tier III’’

forces, that can be mobilized and deployed to a theater within

approximately 180 days after receipt of orders.

(4) All other active and reserve component force units which

are not categorized within a classification described in paragraph (1), (2), or (3).

(e) ADDITIONAL INFORMATION REGARDING CERTAIN UNITS.—

With regard to each unit that is not categorized within a classification described in paragraph (1), (2), or (3) of subsection (d), the

report shall include—

(1) a description of the mission and mobilization or deployment schedule (or both) of the unit in connection with the

requirements of the assessment scenario and the combat readiness requirements of the Armed Forces; or

(2) an identification of the unit as excess to the needs

of the national military strategy and the reasons therefor.

(f) FORM OF REPORT.—The report under this section shall be

submitted in unclassified form but may contain a classified annex.

SEC. 1048. REPORT ON NATO ENLARGEMENT.

(a) REPORT.—Not later than February 1, 1997, the President

shall transmit 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 a report on the enlargement of

the North Atlantic Treaty Organization. The report shall contain

a comprehensive discussion of the following:

(1) Geopolitical and financial costs and benefits, including

financial savings, associated with—

(A) enlargement of the North Atlantic Treaty

Organization;

(B) further delays in the process of enlargement of

the North Atlantic Treaty Organization; and

(C) a failure to enlarge the North Atlantic Treaty

Organization.

(2) Additional North Atlantic Treaty Organization and

United States military expenditures requested by prospective

members of the North Atlantic Treaty Organization to facilitate

their admission into the North Atlantic Treaty Organization.

(3) Modifications necessary in the military strategy of the

North Atlantic Treaty Organization and force structure required

by the inclusion of new members and steps necessary to

integrate new members, including the role of nuclear and

conventional capabilities, reinforcement, force deployments,

prepositioning of equipment, mobility, and headquarter locations.

(4) The relationship between enlargement of the North

Atlantic Treaty Organization and transatlantic stability and

security.

(5) The state of military preparedness and interoperability

of Central and Eastern European nations as it relates to the

responsibilities of membership of the North Atlantic Treaty

President.
110 STAT. 2648 PUBLIC LAW 104–201—SEPT. 23, 1996

Organization and additional security costs or benefits that may

accrue to the United States from enlargement of the North

Atlantic Treaty Organization.

(6) The state of democracy and free market development

as it affects the preparedness of Central and Eastern European

nations for the responsibilities of membership of the North

Atlantic Treaty Organization, including civilian control of the

military, the rule of law, human rights, and parliamentary

oversight.

(7) The state of relations between prospective members

of the North Atlantic Treaty Organization and their neighbors,

steps taken by prospective members to reduce tensions, and

mechanisms for the peaceful resolution of border disputes.

(8) The commitment of prospective members of the North

Atlantic Treaty Organization to the principles of the North

Atlantic Treaty and the security of the North Atlantic area.

(9) The effect of enlargement of the North Atlantic Treaty

Organization on the political, economic, and security conditions

of European Partnership for Peace nations not among the first

new members of the North Atlantic Treaty Organization.

(10) The relationship between enlargement of the North

Atlantic Treaty Organization and EU enlargement and the

costs and benefits of both.

(11) The relationship between enlargement of the North

Atlantic Treaty Organization and treaties relevant to United

States and European security, such as the Conventional Armed

Forces in Europe Treaty.

(12) The anticipated impact both of enlargement of the

North Atlantic Treaty Organization and further delays of

enlargement on Russian foreign and defense policies and the

costs and benefits of a security relationship between the North

Atlantic Treaty Organization and Russia.

(b) INTERPRETATION.—Nothing in this section shall be interpreted or construed to affect the implementation of the NATO

Participation Act of 1994 (title II of Public Law 103–447; 22 U.S.C.

1928 note), or any other program or activity which facilitates or

assists prospective members of the North Atlantic Treaty Organization.

Subtitle E—Management of Armed Forces

Retirement Home

SEC. 1051. RETIREMENT HOME BOARDS OF DIRECTORS.

(a) ADDITIONAL TERM OF OFFICE.—Subsection (e) of section

1515 of the Armed Forces Retirement Home Act of 1991 (24 U.S.C.

415) is amended by adding at the end the following new paragraph:

‘‘(3) The Chairman of the Retirement Home Board may appoint

a member of the Retirement Home Board for a second consecutive

term. The Chairman of a Local Board may appoint a member

of that Local Board for a second consecutive term.’’.

(b) EARLY EXPIRATION OF TERM.—(1) Subsection (f) of such

section is amended to read as follows:

‘‘(f) EARLY EXPIRATION OF TERM.—A member of the Armed

Forces or Federal civilian employee who is appointed as a member

of the Retirement Home Board or a Local Board may serve as

a board member only so long as the member of the Armed Forces
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2649

or Federal civilian employee is assigned to or serving in the duty

position that gave rise to the appointment as a board member.’’.

(2) The amendment made by this subsection shall not affect

the staggered terms of members of the Armed Forces Retirement

Home Board or a Local Board of the Retirement Home under

section 1515(f) of such Act, as such section is in effect before

the date of the enactment of this Act.

(c) ANNUAL EVALUATION OF DIRECTORS.—Section 1517 of such

Act (24 U.S.C. 417) is amended by striking out subsection (f) and

inserting in lieu thereof the following:

‘‘(f) ANNUAL EVALUATION OF DIRECTORS.—The Chairman of the

Retirement Home Board shall annually evaluate the performance

of the Directors and shall make such recommendations to the

Secretary of Defense as the Chairman considers appropriate in

light of the evaluation.’’.

SEC. 1052. ACCEPTANCE OF UNCOMPENSATED SERVICES.

(a) AUTHORITY.—Part A of the Armed Forces Retirement Home

Act of 1991 (title XV of Public Law 101–510; 24 U.S.C. 401 et

seq.) is amended by adding at the end the following new section:

‘‘SEC. 1522. AUTHORITY TO ACCEPT CERTAIN UNCOMPENSATED

SERVICES.

‘‘(a) AUTHORITY TO ACCEPT SERVICES.—Subject to subsection

(b) and notwithstanding section 1342 of title 31, United States

Code, the Chairman of the Retirement Home Board or the Director

of each establishment of the Retirement Home may accept from

any person voluntary personal services or gratuitous services unless

the acceptance of the voluntary services is disapproved by the

Retirement Home Board.

‘‘(b) REQUIREMENTS AND LIMITATIONS.—(1) The Chairman of

the Retirement Home Board or the Director of the establishment

accepting the services shall notify the person of the scope of the

services accepted.

‘‘(2) The Chairman or Director shall—

‘‘(A) supervise the person providing the services to the

same extent as that official would supervise a compensated

employee providing similar services; and

‘‘(B) ensure that the person is licensed, privileged, has

appropriate credentials, or is otherwise qualified under

applicable laws or regulations to provide such services.

‘‘(3) A person providing services accepted under subsection (a)

may not—

‘‘(A) serve in a policymaking position of the Retirement

Home; or

‘‘(B) be compensated for the services by the Retirement

Home.

‘‘(c) AUTHORITY TO RECRUIT AND TRAIN PERSONS PROVIDING

SERVICES.—The Chairman of the Retirement Home Board or the

Director of an establishment of the Retirement Home may recruit

and train persons to provide services authorized to be accepted

under subsection (a).

‘‘(d) STATUS OF PERSONS PROVIDING SERVICES.—(1) Subject to

paragraph (3), while providing services accepted under subsection

(a) or receiving training under subsection (c), a person shall be

considered to be an employee of the Federal Government only

for purposes of the following provisions of law:

24 USC 422.

24 USC 415 note.
110 STAT. 2650 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(A) Subchapter I of chapter 81 of title 5, United States

Code (relating to compensation for work-related injuries).

‘‘(B) Chapter 171 of title 28, United States Code (relating

to claims for damages or loss).

‘‘(2) A person providing services accepted under subsection (a)

shall be considered to be an employee of the Federal Government

under paragraph (1) only with respect to services that are within

the scope of the services accepted.

‘‘(3) For purposes of determining the compensation for workrelated injuries payable under chapter 81 of title 5, United States

Code (pursuant to this subsection) to a person providing services

accepted under subsection (a), the monthly pay of the person for

such services shall be deemed to be the amount determined by

multiplying—

‘‘(A) the average monthly number of hours that the person

provided the services, by

‘‘(B) the minimum wage determined in accordance with

section 6(a)(1) of the Fair Labor Standards Act of 1938 (29

U.S.C. 206(a)(1)).

‘‘(e) REIMBURSEMENT OF INCIDENTAL EXPENSES.—The Chairman

of the Retirement Board or the Director of the establishment accepting services under subsection (a) may provide for reimbursement

of a person for incidental expenses incurred by the person in providing the services accepted under subsection (a). The Chairman or

Director shall determine which expenses qualify for reimbursement

under this subsection.’’.

(b) FEDERAL STATUS OF RESIDENTS PAID FOR PART-TIME OR

INTERMITTENT SERVICES.—Paragraph (2) of section 1521(b) of the

Armed Forces Retirement Home Act of 1991 (24 U.S.C. 421(b))

is amended to read as follows:

‘‘(2) being an employee of the United States for any purpose

other than—

‘‘(A) subchapter I of chapter 81 of title 5, United States

Code (relating to compensation for work-related injuries);

and

‘‘(B) chapter 171 of title 28, United States Code (relating to claims for damages or loss).’’.

SEC. 1053. DISPOSAL OF TRACT OF REAL PROPERTY IN THE DISTRICT

OF COLUMBIA.

(a) DISPOSAL AUTHORIZED.—Notwithstanding title II the Federal Property and Administrative Services Act of 1949 (40 U.S.C.

481 et seq.), title VIII of such Act (40 U.S.C. 531 et seq.), section

501 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C.

11411), or any other provision of law relating to the management

and disposal of real property by the United States, the Armed

Forces Retirement Home Board may convey, by sale or otherwise,

all right, title, and interest of the United States in a parcel of

real property, including improvements thereon, consisting of

approximately 49 acres located in Washington, District of Columbia,

east of North Capitol Street, and recorded as District Parcel 121/

19.

(b) MANNER, TERMS, AND CONDITIONS OF DISPOSAL.—The

Armed Forces Retirement Home Board may determine—

(1) the manner for the disposal of the real property under

subsection (a); and
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2651

(2) the terms and conditions for the conveyance of that

property, including any terms and conditions that the Board

considers necessary to protect the interests of the United States.

(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 Armed

Forces Retirement Home Board. The cost of the survey shall be

borne by the party or parties to which the property is to be conveyed.

(d) CONGRESSIONAL NOTIFICATION.—(1) Before disposing of real

property under subsection (a), the Armed Forces Retirement Home

Board shall notify the Committee on Armed Services of the Senate

and the Committee on National Security of the House of Representatives of the proposed disposal. The Board may not dispose of the

real property until the later of—

(A) the date that is 60 days after the date on which the

notification is received by the committees; or

(B) the date of the next day following the expiration of

the first period of 30 days of continuous session of Congress

that follows the date on which the notification is received

by the committees.

(2) For the purposes of paragraph (1)—

(A) continuity of session is broken only by an adjournment

of Congress sine die; and

(B) the days on which either House is not in session because

of an adjournment of more than three days to a day certain

are excluded in the computation of any period of time in which

Congress is in continuous session.

Subtitle F—Other Matters

SEC. 1061. POLICY ON PROTECTION OF NATIONAL INFORMATION

INFRASTRUCTURE AGAINST STRATEGIC ATTACK.

(a) REPORT REQUIREMENT.—Not later than 180 days after the

date of the enactment of this Act, the President shall submit to

Congress a report setting forth a national policy on protecting

the national information infrastructure against strategic attack.

(b) MATTERS TO BE INCLUDED.—The policy described in the

report shall include the following:

(1) Plans to meet essential Government and civilian needs

during a national security emergency associated with a strategic

attack on elements of the national information infrastructure

the functioning of which depend on networked computer

systems.

(2) The identification of information infrastructure functions that must be performed during such an emergency.

(3) The assignment of responsibilities to Federal departments and agencies, and a description of the roles of Government and industry, relating to indications and warning of,

assessment of, response to, and reconstitution after, potential

strategic attacks on the elements of the national information

infrastructure described under paragraph (1).

(c) UNRESOLVED ISSUES.—The report shall also identify—

(1) matters relating to the national policy described in

the report that, as of the submission of the report, are in

need of further study and resolution, such as technology and

funding shortfalls; and

President.
110 STAT. 2652 PUBLIC LAW 104–201—SEPT. 23, 1996

(2) legal and regulatory considerations relating to the

national policy.

(d) UPDATE OF EARLIER REPORT.—The report shall include an

update of the report required to be submitted to Congress pursuant

to section 1053 of the National Defense Authorization Act for Fiscal

Year 1996 (Public Law 104–106; 110 Stat. 440).

SEC. 1062. INFORMATION SYSTEMS SECURITY PROGRAM.

(a) ALLOCATION.—Of the amounts appropriated for the Department of Defense for the Defense Information Infrastructure for

each of fiscal years 1999 through 2002, the Secretary of Defense

shall allocate to the information systems security program (program

element 0303140K) amounts as follows:

(1) For fiscal year 1999, 2.5 percent.

(2) For fiscal year 2000, 3.0 percent.

(3) For fiscal year 2001, 3.5 percent.

(4) For fiscal year 2002, 4.0 percent.

(b) RELATIONSHIP TO OTHER AMOUNTS.—Amounts allocated

under subsection (a) are in addition to amounts appropriated to

the National Security Agency and the Defense Advanced Research

Projects Agency for development of information security systems,

acquisition of information security systems, and operation of

information security systems.

(c) REPORT.—Not later than November 15, 1997, the Secretary

of Defense shall submit to the congressional defense committees

and the congressional intelligence committees a report on information security activities of the Department of Defense. The report

shall describe—

(1) the objectives of the Secretary with respect to information security and the strategy of the Secretary (including the

strategy with respect to funding) during fiscal years 1999

through 2002 to achieve those objectives;

(2) how the Secretary intends to manage and allocate the

funds required by subsection (a) to be allocated to the information systems security program; and

(3) if the Secretary determines that a funding plan for

the information systems security program for fiscal years 1999

through 2002 other than that specified in subsection (a) is

appropriate, the alternative funding plan proposed by the Secretary.

(d) DEFENSE INFORMATION INFRASTRUCTURE.—For purposes of

this section, the Defense Information Infrastructure is the web

of communications networks, computers, software, databases,

applications, data security services, and other capabilities that

meets the information processing and transport needs of Department of Defense users.

SEC. 1063. AUTHORITY TO ACCEPT SERVICES FROM FOREIGN

GOVERNMENTS AND INTERNATIONAL ORGANIZATIONS

FOR DEFENSE PURPOSES.

Section 2608(a) of title 10, United States Code, is amended

by inserting before the period at the end the following: ‘‘and may

accept from any foreign government or international organization

any contribution of services made by such foreign government or

international organization for use by the Department of Defense’’.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2653

SEC. 1064. PROHIBITION ON COLLECTION AND RELEASE OF

DETAILED SATELLITE IMAGERY RELATING TO ISRAEL.

(a) COLLECTION AND DISSEMINATION.—A department or agency

of the United States may issue a license for the collection or

dissemination by a non-Federal entity of satellite imagery with

respect to Israel only if such imagery is no more detailed or precise

than satellite imagery of Israel that is available from commercial

sources.

(b) DECLASSIFICATION AND RELEASE.—A department or agency

of the United States may declassify or otherwise release satellite

imagery with respect to Israel only if such imagery is no more

detailed or precise than satellite imagery of Israel that is available

from commercial sources.

SEC. 1065. GEORGE C. MARSHALL EUROPEAN CENTER FOR STRATEGIC

SECURITY STUDIES.

(a) AUTHORITY TO ACCEPT FOREIGN GIFTS AND DONATIONS.—

(1) The Secretary of Defense may, on behalf of the George C.

Marshall European Center for Strategic Security Studies (in this

section referred to as the ‘‘Marshall Center’’), accept foreign gifts

or donations in order to defray the costs of, or enhance the operation

of, the Marshall Center.

(2) Funds received by the Secretary under paragraph (1) shall

be credited to appropriations available for the Department of

Defense for the Marshall Center. Funds so credited shall be merged

with the appropriations to which credited and shall be available

for the Marshall Center for the same purposes and same period

as the appropriations with which merged.

(3) The Secretary of Defense shall notify Congress if the total

amount of money accepted under paragraph (1) exceeds $2,000,000

in any fiscal year. Any such notice shall list each of the contributors

of such amounts and the amount of each contribution in such

fiscal year.

(4) For purposes of this subsection, a foreign gift or donation

is a gift or donation of funds, materials (including research materials), property, or services (including lecture services and faculty

services) from a foreign government, a foundation or other charitable organization in a foreign country, or an individual in a foreign

country.

(b) MARSHALL CENTER PARTICIPATION BY FOREIGN NATIONS.—

(1) Notwithstanding any other provision of law, the Secretary of

Defense may authorize participation by a European or Eurasian

nation in Marshall Center programs if the Secretary determines,

after consultation with the Secretary of State, that such participation is in the national interest of the United States.

(2) Not later than January 31 of each year, the Secretary

of Defense shall submit to Congress a report setting forth the

names of the foreign nations permitted to participate in programs

of the Marshall Center during the preceding year under paragraph

(1). Each such report shall be prepared by the Secretary with

the assistance of the Director of the Marshall Center.

(c) EXEMPTIONS FOR MEMBERS OF MARSHALL CENTER BOARD

OF VISITORS FROM CERTAIN REQUIREMENTS.—(1) In the case of

any person invited to serve without compensation on the Marshall

Center Board of Visitors, the Secretary of Defense may waive any

requirement for financial disclosure that would otherwise apply

to that person solely by reason of service on such Board.

Reports.

Notification.

10 USC 113 note.

15 USC 5621

note.
110 STAT. 2654 PUBLIC LAW 104–201—SEPT. 23, 1996

(2) Notwithstanding any other provision of law, a member

of the Marshall Center Board of Visitors may not be required

to register as an agent of a foreign government solely by reason

of service as a member of the Board.

(3) Notwithstanding section 219 of title 18, United States Code,

a non-United States citizen may serve on the Marshall Center

Board of Visitors even though registered as a foreign agent.

SEC. 1066. AUTHORITY TO AWARD TO CIVILIAN PARTICIPANTS IN THE

DEFENSE OF PEARL HARBOR THE CONGRESSIONAL

MEDAL PREVIOUSLY AUTHORIZED ONLY FOR MILITARY

PARTICIPANTS IN THE DEFENSE OF PEARL HARBOR.

(a) AUTHORITY.—The Speaker of the House of Representatives

and the President pro tempore of the Senate are authorized jointly

to present, on behalf of Congress, a bronze medal provided for

under section 1492 of the National Defense Authorization Act for

Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1721) to any

person who meets the eligibility requirements set forth in subsection

(d) of that section other than the requirement for membership

in the Armed Forces, as certified under subsection (e) of that

section or under subsection (b) of this section.

(b) CERTIFICATION.—The Secretary of Defense shall, not later

than 12 months after the date of the enactment of this Act, certify

to the Speaker of the House of Representatives and the President

pro tempore of the Senate the names of persons who are eligible

for award of the medal under this Act and have not previously

been certified under section 1492(e) of the National Defense

Authorization Act for Fiscal Year 1991.

(c) APPLICATIONS.—Subsections (d)(2) and (f) of section 1492

of the National Defense Authorization Act for Fiscal Year 1991

shall apply in the administration of this section.

(d) ADDITIONAL STRIKING AUTHORITY.—The Secretary of the

Treasury shall strike such additional medals as may be necessary

for presentation under the authority of subsection (a).

(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated such sum as may be necessary to carry out

this section.

(f) RETROACTIVE EFFECTIVE DATE.—The authority under subsection (a) shall be effective as of November 5, 1990.

SEC. 1067. ASSIMILATIVE CRIMES AUTHORITY FOR TRAFFIC

OFFENSES ON MILITARY INSTALLATIONS.

Section 4 of the Act of June 1, 1948 (40 U.S.C. 318c), is

amended—

(1) by striking out ‘‘Whoever shall violate’’ and inserting

in lieu thereof ‘‘(a) Except as provided in subsection (b), whoever

violates’’;

(2) by inserting ‘‘than’’ after ‘‘not more’’; and

(3) by adding at the end the following:

‘‘(b)(1) Whoever violates any military traffic regulation shall

be fined an amount not to exceed the amount of the maximum

fine for a like or similar offense under the criminal or civil law

of the State, territory, possession, or district where the military

installation in which the violation occurred is located, or imprisoned

for not more than 30 days, or both.

‘‘(2) For purposes of this subsection, the term ‘military traffic

regulation’ means a rule or regulation for the control of vehicular

or pedestrian traffic on military installations that is promulgated

31 USC 5111

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2655

by the Secretary of Defense, or the designee of the Secretary,

under the authority delegated pursuant to section 2.’’.

SEC. 1068. UNIFORM CODE OF MILITARY JUSTICE AMENDMENTS.

(a) TECHNICAL AMENDMENT REGARDING FORFEITURES DURING

CONFINEMENT ADJUDGED BY A COURT-MARTIAL.—(1) Section

858b(a)(1) of title 10, United States Code (article 58b(a)(1) of the

Uniform Code of Military Justice), is amended—

(A) in the first sentence, by inserting ‘‘(if adjudged by

a general court-martial)’’ after ‘‘all pay and’’; and

(B) in the third sentence, by striking out ‘‘two-thirds of

all pay and allowances’’ and inserting in lieu thereof ‘‘twothirds of all pay’’.

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

as of April 1, 1996, and shall apply to any case in which a sentence

is adjudged by a court-martial on or after that date.

(b) EXCEPTED SERVICE APPOINTMENTS TO CERTAIN NONATTOR- NEY POSITIONS OF THE UNITED STATES COURT OF APPEALS FOR

THE ARMED FORCES.—(1) Subsection (c) of section 943 of title 10,

United States Code (article 143(c) of the Uniform Code of Military

Justice) is amended in paragraph (1) by inserting after the first

sentence the following: ‘‘A position of employment under the Court

that is provided primarily for the service of one judge of the court,

reports directly to the judge, and is a position of a confidential

character is excepted from the competitive service.’’.

(2) The caption for such subsection is amended by striking

out ‘‘ATTORNEY’’ and inserting in lieu thereof ‘‘CERTAIN’’.

(c) REPEAL OF 13-YEAR SPECIAL LIMIT ON TERM OF TRANSI- TIONAL JUDGE OF UNITED STATES COURT OF APPEALS FOR THE

ARMED FORCES.—(1) Subsection (d)(2) of section 1301 of the

National Defense Authorization Act for Fiscal Years 1990 and 1991

(Public Law 101–189; 103 Stat. 1575; 10 U.S.C. 942 note) is

amended by striking out ‘‘to the judges who are first appointed

to the two new positions of the court created as of October 1,

1990—’’ and all that follows and inserting in lieu thereof ‘‘to the

judge who is first appointed to one of the two new positions of

the court created as of October 1, 1990, as designated by the

President at the time of appointment, the anniversary referred

to in subparagraph (A) of that paragraph shall be treated as being

the seventh anniversary and the number of years referred to in

subparagraph (B) of that paragraph shall be treated as being

seven.’’.

(2) Subsection (e)(1) of such section is amended by striking

out ‘‘each judge’’ and inserting in lieu thereof ‘‘a judge’’.

SEC. 1069. PUNISHMENT OF INTERSTATE STALKING.

(a) IN GENERAL.—Chapter 110A of title 18, United States Code,

is amended by inserting after section 2261 the following new section:

‘‘§ 2261A. Interstate stalking

‘‘Whoever travels across a State line or within the special

maritime and territorial jurisdiction of the United States with the

intent to injure or harass another person, and in the course of,

or as a result of, such travel places that person in reasonable

fear of the death of, or serious bodily injury (as defined in section

1365(g)(3) of this title) to, that person or a member of that person’s

immediate family (as defined in section 115 of this title) shall

be punished as provided in section 2261 of this title.’’.

Effective date.

Applicability.

10 USC 858b

note.
110 STAT. 2656 PUBLIC LAW 104–201—SEPT. 23, 1996

(b) CONFORMING AMENDMENTS.—Title 18, United States Code,

is amended as follows:

(1) Section 2261(b) is amended by inserting ‘‘or section

2261A’’ after ‘‘this section’’.

(2) Sections 2261(b) and 2262(b) are each amended by

striking ‘‘offender’s spouse or intimate partner’’ each place it

appears and inserting ‘‘victim’’.

(3) The chapter heading for chapter 110A is amended by

inserting ‘‘AND STALKING’’ after ‘‘VIOLENCE’’.

(4) The item relating to chapter 110A in the table of chapters at the beginning of part I is amended to read as follows:

‘‘110A. Domestic violence and stalking ................................................... 2261’’.

(c) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 110A of such title is amended by inserting after

the item relating to section 2261 the following new item:

‘‘2261A. Interstate stalking.’’.

SEC. 1070. PARTICIPATION OF MEMBERS, DEPENDENTS, AND OTHER

PERSONS IN CRIME PREVENTION EFFORTS AT INSTALLATIONS.

(a) CRIME PREVENTION PLAN.—The Secretary of Defense shall

prepare and implement an incentive-based plan to encourage

members of the Armed Forces, dependents of members, civilian

employees of the Department of Defense, and employees of defense

contractors performing work at military installations to report to

an appropriate military law enforcement agency any crime or criminal activity that the person reasonably believes occurred on a military installation or involves a member of the Armed Forces.

(b) INCENTIVES TO REPORT CRIMINAL ACTIVITY.—The Secretary

of Defense shall include in the plan developed under subsection

(a) incentives for members and other persons described in such

subsection to provide information to appropriate military law

enforcement agencies regarding any crime or criminal activity occurring on a military installation or involving a member of the Armed

Forces.

(c) REPORT REGARDING IMPLEMENTATION.—Not later than February 1, 1997, the Secretary shall submit to Congress a report

describing the plan being developed under subsection (a).

SEC. 1071. DISPLAY OF STATE FLAGS AT INSTALLATIONS AND FACILITIES OF THE DEPARTMENT OF DEFENSE.

(a) IN GENERAL.—Subchapter I of chapter 134 of title 10, United

States Code, is amended by adding at the end the following new

section:

‘‘§ 2249b. Display of State flags: prohibition on use of funds

to arbitrarily exclude flag; position and manner

of display

‘‘(a) PROHIBITION ON USE OF FUNDS.—Funds available to the

Department of Defense may not be used to prescribe or enforce

any rule that arbitrarily excludes the official flag of any State,

territory, or possession of the United States from any display of

the flags of the States, territories, and possessions of the United

States at an official ceremony of the Department of Defense.

‘‘(b) POSITION AND MANNER OF DISPLAY.—The display of an

official flag of a State, territory, or possession of the United States

at an installation or other facility of the Department shall be

10 USC 113 note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2657

governed by the provisions of section 3 of the Joint Resolution

of June 22, 1942 (56 Stat. 378, chapter 435; 36 U.S.C. 175), and

any modification of such provisions under section 8 of that Joint

Resolution (36 U.S.C. 178).’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter I of such chapter is amended by adding at the

end the following new item:

‘‘2249b. Display of State flags: prohibition on use of funds to arbitrarily exclude flag;

position and manner of display.’’.

SEC. 1072. TREATMENT OF EXCESS OPERATIONAL SUPPORT AIRLIFT

AIRCRAFT.

(a) REUTILIZATION OR SALE BEFORE TRANSFER.—An operational

support airlift aircraft that is excess to the requirements of the

United States shall be placed in an inactive status and stored

at Davis-Monthan Air Force Base, Arizona, only upon the determination of the Secretary of Defense that all reasonable efforts

for the reutilization of the aircraft by, or sale of the aircraft to,

Federal agencies or other persons have been completed. The Secretary shall ensure that attempts to reutilize or sell the entire

aircraft are given precedence over any reutilization or sale of

individual parts or components of the aircraft.

(b) OPERATIONAL SUPPORT AIRLIFT AIRCRAFT DEFINED.—In this

section, the term ‘‘operational support airlift aircraft’’ has the meaning given such term in section 1086(f) of the National Defense

Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110

Stat. 458).

SEC. 1073. CORRECTION TO STATUTORY REFERENCES TO CERTAIN

DEPARTMENT OF DEFENSE ORGANIZATIONS.

(a) NORTH AMERICAN AEROSPACE DEFENSE COMMAND.—Section

162(a) of title 10, United States Code, is amended by striking

out ‘‘North American Air Defense Command’’ in paragraphs (1),

(2), and (3) and inserting in lieu thereof ‘‘North American Aerospace

Defense Command’’.

(b) FORMER NAVAL RECORDS AND HISTORY OFFICE AND FUND.— (1) Section 7222 of title 10, United States Code, is amended by

striking out ‘‘Office of Naval Records and History’’ each place it

appears in subsections (a) and (c) and inserting in lieu thereof

‘‘Naval Historical Center’’.

(2)(A) The heading of such section is amended to read as

follows:

‘‘§ 7222. Naval Historical Center Fund’’.

(B) The item relating to such section in the table of sections

at the beginning of chapter 631 of title 10, United States Code,

is amended to read as follows:

‘‘7222. Naval Historical Center Fund.’’.

(3) Section 2055(g) of the Internal Revenue Code of 1986 is

amended by striking out paragraph (4) and inserting in lieu thereof

the following:

‘‘(4) For treatment of gifts and bequests for the benefit of the

Naval Historical Center as gifts or bequests to or for the use of the

United States, see section 7222 of title 10, United States Code.’’.

(c) DEFENSE DISTRIBUTION CENTER, ANNISTON.—The Corporation for the Promotion of Rifle Practice and Firearms Safety Act

26 USC 2055.

Arizona.
110 STAT. 2658 PUBLIC LAW 104–201—SEPT. 23, 1996

(title XVI of Public Law 104–106; 110 Stat. 515; 36 U.S.C. 5501

et seq.) is amended by striking out ‘‘Anniston Army Depot’’ each

place it appears in the following provisions and inserting in lieu

thereof ‘‘Defense Distribution Depot, Anniston’’:

(1) Section 1615(a)(3) (36 U.S.C. 5505(a)(3)).

(2) Section 1616(b) (36 U.S.C. 5506(b)).

(3) Section 1619(a)(1) (36 U.S.C. 5509(a)(1)).

(d) CHEMICAL DEMILITARIZATION CITIZENS ADVISORY COMMISSIONS.—Section 172 of the National Defense Authorization Act for

Fiscal Year 1993 (Public Law 102–484; 106 Stat. 2341; 50 U.S.C.

1521 note) is amended by striking out ‘‘Assistant Secretary of the

Army (Installations, Logistics, and Environment)’’ in subsections

(b) and (f) and inserting in lieu thereof ‘‘Assistant Secretary of

the Army (Research, Development and Acquisition)’’.

(e) DEFENSE ADVANCED RESEARCH PROJECTS AGENCY.—(1) Each

of the following provisions of law is amended by inserting ‘‘Defense’’

before ‘‘Advanced Research Projects Agency’’ each place it appears:

(A) Section 5316 of title 5, United States Code.

(B) Subsections (b), (f), and (i) of section 2371 of title

10, United States Code.

(C) Section 822(c)(1)(D) of Public Law 101–510 (42 U.S.C.

6686).

(D) Section 845(a) of Public Law 103–160 (10 U.S.C. 2371

note).

(E) Section 243(a) of Public Law 103–160 (10 U.S.C. 2431

note).

(F) Sections 1352(c)(2), 1353, and 1354(a) of Public Law

103–160 (10 U.S.C. 2501 note).

(2) The section headings of each of the following sections are

amended by inserting ‘‘DEFENSE’’ before ‘‘ADVANCED’’:

(A) Section 845 of Public Law 103–160 (10 U.S.C. 2371

note).

(B) Sections 1353 and 1354 of Public Law 103–160 (10

U.S.C. 2501 note).

(3) The heading for subsection (a) of section 1354 of Public

Law 103–160 (10 U.S.C. 2501 note) is amended by striking out

‘‘ARPA’’ and inserting in lieu thereof ‘‘DARPA’’.

SEC. 1074. TECHNICAL AND CLERICAL AMENDMENTS.

(a) MISCELLANEOUS AMENDMENTS TO TITLE 10, UNITED STATES

CODE.—Title 10, United States Code, is amended as follows:

(1) Section 129(a) is amended by striking out ‘‘the date

of the enactment of the National Defense Authorization Act

for Fiscal Year 1996’’ and inserting in lieu thereof ‘‘February

10, 1996,’’.

(2) Section 401 is amended—

(A) in subsection (a)(4), by striking out ‘‘Armed Forces’’

both places it appears and inserting in lieu thereof ‘‘armed

forces’’; and

(B) in subsection (e), by inserting ‘‘any of the following’’

after ‘‘means’’.

(3) Section 528(b) is amended by striking out ‘‘(1)’’ after

‘‘(b)’’ and inserting ‘‘(1)’’ before ‘‘The limitation’’.

(4) Section 1078a(a) is amended by striking out ‘‘Beginning

on October 1, 1994, the’’ and inserting in lieu thereof ‘‘The’’.

(5) Section 1161(b)(2) is amended by striking out ‘‘section

1178’’ and inserting in lieu thereof ‘‘section 1167’’.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2659

(6) Section 1167 is amended by striking out ‘‘person’’ and

inserting in lieu thereof ‘‘member’’.

(7) The table of sections at the beginning of chapter 81

is amended by striking out ‘‘Sec.’’ in the item relating to section

1599a.

(8) Section 1588(d)(1)(C) is amended by striking out ‘‘Section 522a’’ and inserting in lieu thereof ‘‘Section 552a’’.

(9) Chapter 87 is amended—

(A) in section 1723(a), by striking out the second

sentence;

(B) in section 1724—

(i) in subsection (a), by striking out ‘‘small

purchase threshold’’ and inserting in lieu thereof ‘‘simplified acquisition threshold’’; and

(ii) in subsections (a) and (b), by striking out ‘‘,

beginning on October 1, 1993,’’;

(C) in section 1733(a), by striking out ‘‘On and after

October 1, 1993, a’’ and inserting in lieu thereof ‘‘A’’; and

(D) in section 1734—

(i) in subsection (a)(1), by striking out ‘‘, on and

after October 1, 1993,’’; and

(ii) in subsection (b)(1)(A), by striking out ‘‘, on

and after October 1, 1991,’’.

(10) Section 2216, as added by section 371 of the National

Defense Authorization Act for Fiscal Year 1996 (Public Law

104–106; 107 Stat. 277), is redesignated as section 2216a, and

the item relating to that section in the table of sections at

the beginning of chapter 131 is revised so as to reflect such

redesignation.

(11) Section 2305(b)(6) is amended—

(A) in subparagraph (B), by striking out ‘‘of this section’’ and ‘‘of this paragraph’’;

(B) in subparagraph (C), by striking out ‘‘this subsection’’ and inserting in lieu thereof ‘‘subparagraph (A)’’;

and

(C) in subparagraph (D), by striking out ‘‘pursuant

to this subsection’’ and inserting in lieu thereof ‘‘under

subparagraph (A)’’.

(12) Section 2306a(h)(3) is amended by inserting ‘‘(41 U.S.C.

403(12))’’ before the period at the end.

(13) Section 2323a(a) is amended by striking out ‘‘section

1207 of the National Defense Authorization Act for Fiscal Year

1987 (10 U.S.C. 2301 note)’’ and inserting in lieu thereof ‘‘section 2323 of this title’’.

(14) Section 2534(c)(4) is amended by striking out ‘‘the

date occurring two years after the date of the enactment of

the National Defense Authorization Act for Fiscal Year 1996’’

and inserting in lieu thereof ‘‘February 10, 1998’’.

(15) The table of sections at the beginning of chapter 155

is amended by striking out the item relating to section 2609.

(16) Section 2610(e) is amended by striking out ‘‘two years

after the date of the enactment of the National Defense

Authorization Act for Fiscal Year 1996’’ and inserting in lieu

thereof ‘‘on February 10, 1998’’.

(17) Sections 2824(c) and 2826(i)(1) are amended by striking

out ‘‘the date of the enactment of the National Defense

Ante, p. 277.
110 STAT. 2660 PUBLIC LAW 104–201—SEPT. 23, 1996

Authorization Act for Fiscal Year 1996’’ and inserting in lieu

thereof ‘‘February 10, 1996’’.

(18) Section 3036(d)(3) is amended by striking out ‘‘For

purposes of this subsection,’’ and inserting in lieu thereof ‘‘In

this subsection,’’.

(19) The table of sections at the beginning of chapter 641

is amended by striking out the item relating to section 7434.

(20) Section 7863 is amended by inserting ‘‘were’’ in the

first sentence after ‘‘the stores’’.

(21) Section 10542(b)(21) is amended by striking out ‘‘261’’

and inserting in lieu thereof ‘‘12001’’.

(22) Section 12205(a) is amended by striking out ‘‘After

September 30, 1995, no person’’ and inserting in lieu thereof

‘‘No person’’.

(b) AMENDMENTS TO PUBLIC LAW 104–106.—The National

Defense Authorization Act for Fiscal Year 1996 (Public Law 104–

106; 110 Stat. 186 et seq.) is amended as follows:

(1) Section 561(d)(1) (110 Stat. 322) is amended by inserting

‘‘of such title’’ after ‘‘Section 1405(c)’’.

(2) Section 1092(b)(2) (110 Stat. 460) is amended by striking

out the period at the end and inserting in lieu thereof ‘‘;

and’’.

(3) Section 4301(a)(1) (110 Stat. 656) is amended by

inserting ‘‘of subsection (a)’’ after ‘‘in paragraph (2)’’.

(4) Section 5601 (110 Stat. 699) is amended—

(A) in subsection (a), by inserting ‘‘of title 10, United

States Code,’’ before ‘‘is amended’’; and

(B) in subsection (c), by striking out ‘‘use of equipment

or services if,’’ in the second quoted matter therein and

inserting in lieu thereof ‘‘use of the equipment or services’’.

(5) Section 3403 (110 Stat. 631) is amended by striking

out ‘‘Act of Fiscal’’ and inserting in lieu thereof ‘‘Act for Fiscal’’.

(6) Section 4202(c)(1) (110 Stat. 653) is amended, effective

as of February 10, 1996, by striking out ‘‘purchases of’ ’’ in

the first quoted matter therein and inserting in lieu thereof

‘‘contracts for’ ’’.

(7) Section 5607(c) (110 Stat. 701) is amended, effective

as of February 10, 1996—

(A) by striking out ‘‘303B(h)’’ and by inserting in lieu

thereof ‘‘303B(k)’’; and

(B) by striking out ‘‘253b(h)’’ and by inserting in lieu

thereof ‘‘253b(k)’’.

(c) PROVISIONS EXECUTED BEFORE ENACTMENT OF PUBLIC LAW

104–106.—

(1) Section 533(b) of the National Defense Authorization

Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 315)

shall apply as if enacted as of December 31, 1995.

(2) The authority provided under section 942(f) of title

10, United States Code, shall be effective as if section 1142

of the National Defense Authorization Act for Fiscal Year 1996

(Public Law 104–106; 110 Stat. 467) had been enacted on

September 29, 1995.

(d) AMENDMENTS TO OTHER ACTS.—

(1) The last section of the Office of Federal Procurement

Policy Act (41 U.S.C. 434), as added by section 5202 of Public

Law 104–106 (110 Stat. 690), is redesignated as section 38,

and the item appearing after section 34 in the table of contents

Effective date.

10 USC 942 note.

Applicability.

10 USC 6975

note.

Effective date.

41 USC 253b.

Effective date.

41 USC 427.

10 USC 2315.

10 USC 2305.

10 USC 2410b.

10 USC 1405.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2661

in the first section of that Act is transferred to the end of

such table of contents and revised so as to reflect such

redesignation.

(2) Section 1412(g)(2) of the Department of Defense

Authorization Act, 1986 (50 U.S.C. 1521(g)(2)), is amended—

(A) in the matter preceding subparagraph (A), by striking out ‘‘shall contain—’’ and inserting in lieu thereof ‘‘shall

include the following:’’;

(B) in subparagraph (A)—

(i) by striking out ‘‘a’’ before ‘‘site-by-site’’ and

inserting in lieu thereof ‘‘A’’; and

(ii) by striking out the semicolon at the end and

inserting in lieu thereof a period; and

(C) in subparagraphs (B) and (C), by striking out ‘‘an’’

at the beginning of the subparagraph and inserting in

lieu thereof ‘‘An’’.

(3) Section 3131 of Public Law 99–570 (19 U.S.C. 2081;

100 Stat. 3207–91) is amended in clause (v) of subsection

(a)(1)(A) by striking out ‘‘and (c)’’ both places it appears.

(e) COORDINATION WITH OTHER AMENDMENTS.—For purposes

of applying amendments made by provisions of this Act other than

provisions of this section, this section shall be treated as having

been enacted immediately before the other provisions of this Act.

(f) AMENDMENTS TO THE OFFICE OF FEDERAL PROCUREMENT

POLICY ACT.—The Office of Federal Procurement Policy Act (41

U.S.C. 403 et seq.) is amended as follows:

(1) Section 6(f) (41 U.S.C. 405(f)) is amended by striking

out ‘‘the policies set forth in section 2 or’’.

(2) Section 15(a) (41 U.S.C. 413(a)) is amended by striking

out the second sentence.

(3) Section 25 (41 U.S.C. 421) is amended—

(A) in subsection (c)—

(i) in paragraph (3), by striking out ‘‘the policies

set forth in section 2 of this Act or’’; and

(ii) in paragraph (5), by striking out ‘‘or the policies

set forth in section 2 of this Act’’; and

(B) in subsection (e), by striking out ‘‘the policies of

section 2 and’’.

SEC. 1075. MODIFICATION TO THIRD-PARTY LIABILITY TO UNITED

STATES FOR TORTIOUS INFLICTION OF INJURY OR DISEASE ON MEMBERS OF THE UNIFORMED SERVICES.

(a) RECOVERY OF PAY AND ALLOWANCES.—The first section of

Public Law 87–693 (42 U.S.C. 2651) is amended—

(1) in the first sentence of subsection (a)—

(A) by inserting ‘‘or pay for’’ after ‘‘required by law

to furnish’’; and

(B) by striking out ‘‘or to be furnished’’ both places

it appears and inserting in lieu thereof ‘‘, to be furnished,

paid for, or to be paid for’’;

(2) by redesignating subsections (b) and (c) as subsections

(d) and (e), respectively;

(3) by inserting after subsection (a), the following new

subsections:

‘‘(b) If a member of the uniformed services is injured, or contracts a disease, under circumstances creating a tort liability upon

a third person (other than or in addition to the United States

Applicability.

10 USC 101 note.
110 STAT. 2662 PUBLIC LAW 104–201—SEPT. 23, 1996

and except employers of seamen referred to in subsection (a)) for

damages for such injury or disease and the member is unable

to perform the member’s regular military duties as a result of

the injury or disease, the United States shall have a right (independent of the rights of the member) to recover from the third person

or an insurer of the third person, or both, the amount equal to

the total amount of the pay that accrues and is to accrue to

the member for the period for which the member is unable to

perform such duties as a result of the injury or disease and is

not assigned to perform other military duties.

‘‘(c)(1) If, pursuant to the laws of a State that are applicable

in a case of a member of the uniformed services who is injured

or contracts a disease as a result of tortious conduct of a third

person, there is in effect for such a case (as a substitute or alternative for compensation for damages through tort liability) a system

of compensation or reimbursement for expenses of hospital, medical,

surgical, or dental care and treatment or for lost pay pursuant

to a policy of insurance, contract, medical or hospital service agreement, or similar arrangement, the United States shall be deemed

to be a third-party beneficiary of such a policy, contract, agreement,

or arrangement.

‘‘(2) For the purposes of paragraph (1)—

‘‘(A) the expenses incurred or to be incurred by the United

States for care and treatment for an injured or diseased member

as described in subsection (a) shall be deemed to have been

incurred by the member;

‘‘(B) the cost to the United States of the pay of the member

as described in subsection (b) shall be deemed to have been

pay lost by the member as a result of the injury or disease;

and

‘‘(C) the United States shall be subrogated to any right

or claim that the injured or diseased member or the member’s

guardian, personal representative, estate, dependents, or survivors have under a policy, contract, agreement, or arrangement

referred to in paragraph (1) to the extent of the reasonable

value of the care and treatment and the total amount of the

pay deemed lost under subparagraph (B).’’;

(4) in subsection (d), as redesignated by paragraph (2),

by inserting ‘‘or paid for’’ after ‘‘treatment is furnished’’; and

(5) by adding at the end the following:

‘‘(f)(1) Any amount recovered under this section for medical

care and related services furnished by a military medical treatment

facility or similar military activity shall be credited to the appropriation or appropriations supporting the operation of that facility or

activity, as determined under regulations prescribed by the Secretary of Defense.

‘‘(2) Any amount recovered under this section for the cost to

the United States of pay of an injured or diseased member of

the uniformed services shall be credited to the appropriation that

supports the operation of the command, activity, or other unit

to which the member was assigned at the time of the injury or

illness, as determined under regulations prescribed by the Secretary

concerned.

‘‘(g) For the purposes of this section:

‘‘(1) The term ‘uniformed services’ has the meaning given

such term in section 101 of title 10, United States Code.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2663

‘‘(2) The term ‘tortious conduct’ includes any tortious

omission.

‘‘(3) The term ‘pay’, with respect to a member of the uniformed services, means basic pay, special pay, and incentive

pay that the member is authorized to receive under title 37,

United States Code, or any other law providing pay for service

in the uniformed services.

‘‘(4) The term ‘Secretary concerned’ means—

‘‘(A) the Secretary of Defense, with respect to the Army,

the Navy, the Air Force, the Marine Corps, and the Coast

Guard (when it is operating as a service in the Navy);

‘‘(B) the Secretary of Transportation, with respect to

the Coast Guard when it is not operating as a service

in the Navy;

‘‘(C) the Secretary of Health and Human Services, with

respect to the commissioned corps of the Public Health

Service; and

‘‘(D) the Secretary of Commerce, with respect to the

commissioned corps of the National Oceanic and

Atmospheric Administration.’’.

(b) CONFORMING AMENDMENTS.—The first section of Public Law

87–693 (42 U.S.C. 2651) is amended—

(1) in the first sentence of subsection (a)—

(A) by inserting ‘‘(independent of the rights of the

injured or diseased person)’’ after ‘‘a right to recover’’; and

(B) by inserting ‘‘, or that person’s insurer,’’ after ‘‘from

said third person’’;

(2) in subsection (d), as redesignated by subsection (a)(2)—

(A) by striking out ‘‘such right,’’ and inserting in lieu

thereof ‘‘a right under subsections (a), (b), and (c)’’; and

(B) by inserting ‘‘or the insurance carrier or other

entity responsible for the payment or reimbursement of

medical expenses or lost pay’’ after ‘‘the third person who

is liable for the injury or disease’’ each place it appears.

(c) EFFECTIVE DATE.—The authority to collect pursuant to the

amendments made by this section shall apply to expenses described

in the first section of Public Law 87–693 (as amended by this

section) that are incurred, or are to be incurred, by the United

States on or after the date of the enactment of this Act, whether

the event from which the claim arises occurs before, on, or after

that date.

SEC. 1076. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS

PROGRAM.

(a) REPORT.—Not later than 120 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

assessing the implementation and success of the establishment

of site-specific Integrated Product and Process Teams as a management tool for the Chemical Stockpile Emergency Preparedness Program.

(b) CONTINGENT MANDATED REFORMS.—If at the end of the

120-day period beginning on the date of the enactment of this

Act the Secretary of the Army and the Director of the Federal

Emergency Management Agency have been unsuccessful in

Effective date.

Applicability.

42 USC 2651

note.
110 STAT. 2664 PUBLIC LAW 104–201—SEPT. 23, 1996

implementing a site-specific Integrated Product and Process Team

with each of the affected States, the Secretary of the Army shall—

(1) assume full control and responsibility for the Chemical

Stockpile Emergency Preparedness Program (eliminating the

role of the Director of the Federal Emergency Management

Agency as joint manager of the program);

(2) establish programmatic agreement with each of the

affected States regarding program requirements, implementation schedules, training and exercise requirements, and funding

(to include direct grants for program support);

(3) clearly define the goals of the program; and

(4) establish fiscal constraints for the program.

SEC. 1077. EXEMPTION FROM REQUIREMENTS APPLICABLE TO

SAVINGS ASSOCIATIONS FOR CERTAIN SAVINGS INSTITUTIONS SERVING MILITARY PERSONNEL.

Section 10(m)(3)(F) of the Home Owners’ Loan Act (12 U.S.C.

1467a(m)(3)(F)) is amended—

(1) in the subparagraph caption, by striking out ‘‘ASSOCIA- TION SERVING TRANSIENT’’ and inserting in lieu thereof ‘‘ASSOCIATIONS SERVING CERTAIN’’;

(2) by striking out ‘‘company if—’’ and all that follows

through ‘‘90 percent’’ and inserting in lieu thereof ‘‘company

if at least 90 percent’’; and

(3) by striking out ‘‘officers’’ both places it appears and

inserting in lieu thereof ‘‘members’’.

SEC. 1078. IMPROVEMENTS TO NATIONAL SECURITY EDUCATION

PROGRAM.

(a) TEMPORARY REQUIREMENT RELATING TO EMPLOYMENT.— Title VII of the Department of Defense Appropriations Act, 1996

(Public Law 104–61; 109 Stat. 650), is amended in the paragraph

under the heading ‘‘NATIONAL SECURITY EDUCATION TRUST FUND’’ by striking out the proviso.

(b) GENERAL PROGRAM REQUIREMENTS.—(1) Subparagraph (A)

of subsection (a)(1) of section 802 of the David L. Boren National

Security Education Act of 1991 (50 U.S.C. 1902) is amended to

read as follows:

‘‘(A) awarding scholarships to undergraduate

students who—

‘‘(i) are United States citizens in order to enable

such students to study, for at least one academic

semester or equivalent term, in foreign countries that

are critical countries (as determined under section

803(d)(4)(A)) in those languages and study areas where

deficiencies exist (as identified in the assessments

undertaken pursuant to section 806(d)); and

‘‘(ii) pursuant to subsection (b)(2)(A), enter into

an agreement to work in a national security position

or work in the field of higher education in the area

of study for which the scholarship was awarded;’’; and

(2) Subparagraph (B) of that subsection is amended—

(A) in clause (i), by inserting ‘‘relating to the national

security interests of the United States’’ after ‘‘international

fields’’; and

(B) in clause (ii)—

(i) by striking out ‘‘subsection (b)(2)’’ and inserting

in lieu thereof ‘‘subsection (b)(2)(B)’’; and

Fellowships and

scholarships.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2665

(ii) by striking out ‘‘work for an agency or office of

the Federal Government or in’’ and inserting in lieu thereof

‘‘work in a national security position or work in’’.

(c) SERVICE AGREEMENT.—(1) Subsection (b) of that section

is amended in the matter preceding paragraph (1) by striking

out ‘‘, or of scholarships’’ and all that follows through ‘‘12 months

or more,’’ and inserting in lieu thereof ‘‘or any scholarship’’.

(2) Paragraph (2) of that subsection is amended to read as

follows:

‘‘(2) will—

‘‘(A) not later than eight years after such recipient’s

completion of the study for which scholarship assistance

was provided under the program, and in accordance with

regulations issued by the Secretary—

‘‘(i) work in a national security position for a period

specified by the Secretary, which period shall be no

longer than the period for which scholarship assistance

was provided; or

‘‘(ii) if the recipient demonstrates to the Secretary

(in accordance with such regulations) that no national

security position is available, work in the field of higher

education in a discipline relating to the foreign country,

foreign language, area study, or international field of

study for which the scholarship was awarded, for a

period specified by the Secretary, which period shall

be determined in accordance with clause (i); or

‘‘(B) upon completion of such recipient’s education

under the program, and in accordance with such regulations—

‘‘(i) work in a national security position for a period

specified by the Secretary, which period shall be not

less than one and not more than three times the period

for which the fellowship assistance was provided; or

‘‘(ii) if the recipient demonstrates to the Secretary

(in accordance with such regulations) that no national

security position is available upon the completion of

the degree, work in the field of higher education in

a discipline relating to the foreign country, foreign

language, area study, or international field of study

for which the fellowship was awarded, for a period

specified by the Secretary, which period shall be established in accordance with clause (i); and’’.

(d) EVALUATION OF PROGRESS IN LANGUAGE SKILLS.—Such

section is further amended—

(1) by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively; and

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

‘‘(c) EVALUATION OF PROGRESS IN LANGUAGE SKILLS.—The Secretary shall, through the National Security Education Program

office, administer a test of the foreign language skills of each

recipient of a scholarship or fellowship under this title before the

commencement of the study or education for which the scholarship

or fellowship is awarded and after the completion of such study

or education. The purpose of these tests is to evaluate the progress

made by recipients of scholarships and fellowships in developing

foreign language skills as a result of assistance under this title.’’.
110 STAT. 2666 PUBLIC LAW 104–201—SEPT. 23, 1996

(e) FUNCTIONS OF THE NATIONAL SECURITY EDUCATION

BOARD.—Section 803(d) of that Act (50 U.S.C. 1903(d)) is amended—

(1) in paragraph (1), by inserting ‘‘, including an order

of priority in such awards that favors individuals expressing

an interest in national security issues or pursuing a career

in a national security position’’ before the period;

(2) in paragraph (4)—

(A) in the matter preceding subparagraph (A), by striking out ‘‘Make recommendations’’ and inserting in lieu

thereof ‘‘After taking into account the annual analyses

of trends in language, international, and area studies under

section 806(b)(1), make recommendations’’;

(B) in subparagraph (A), by inserting ‘‘and countries

which are of importance to the national security interests

of the United States’’ after ‘‘are studying’’; and

(C) in subparagraph (B), by inserting ‘‘relating to the

national security interests of the United States’’ after ‘‘section 802(a)(1)(B)’’;

(3) by redesignating paragraph (5) as paragraph (8); and

(4) by inserting after paragraph (4) the following new paragraphs:

‘‘(5) Encourage applications for fellowships under this title

from graduate students having an educational background in

any academic discipline, particularly in the areas of science

or technology.

‘‘(6) Provide the Secretary biennially with a list of scholarship recipients and fellowship recipients, including an assessment of their foreign area and language skills, who are

available to work in a national security position.

‘‘(7) Not later than 30 days after a scholarship or fellowship

recipient completes the study or education for which assistance

was provided under the program, provide the Secretary with

a report fully describing the foreign area and language skills

obtained by the recipient as a result of the assistance.’’.

(f) NATIONAL SECURITY POSITION DEFINED.—(1) Section 808

of that Act (50 U.S.C. 1908) is amended by adding at the end

the following new paragraph:

‘‘(4) The term ‘national security position’ means a position—

‘‘(A) having national security responsibilities in a

agency or office of the Federal Government that has

national security responsibilities, as determined under section 802(g); and

‘‘(B) in which the individual in such position makes

their foreign language skills available to such agency or

office.’’.

(2) Section 802 of that Act (50 U.S.C. 1902), as amended by

subsection (d)(1) of this section, is further amended by adding

at the end the following new subsection:

‘‘(g) DETERMINATION OF AGENCIES AND OFFICES OF THE FEDERAL

GOVERNMENT HAVING NATIONAL SECURITY RESPONSIBILITIES.—(1)

The Secretary, in consultation with the Board, shall annually determine and develop a list identifying each agency or office of the

Federal Government having national security responsibilities at

which a recipient of a fellowship or scholarship under this title

will be able to make the recipient’s foreign area and language

skills available to such agency or office. The Secretary shall submit

the first such list to the Congress and include each subsequent

Records.

Reports.

Records.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2667

list in the annual report to the Congress, as required by section

806(b)(6).

‘‘(2) Notwithstanding section 804, funds may not be made available from the Fund to carry out this title for fiscal year 1997

until 30 days after the date on which the Secretary of Defense

submits to the Congress the first such list required by paragraph

(1).’’.

(3) Section 806(b) of that Act (50 U.S.C. 1906(b)) is amended

by striking out ‘‘and’’ at the end of paragraph (5), redesignating

paragraph (6) as paragraph (7), and inserting after paragraph (5)

the following new paragraph (6):

‘‘(6) the current list of agencies and offices of the Federal

Government required to be developed by section 802(g); and’’.

(g) REPORT ON PROGRAM.—(1) Not later than six months after

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

shall submit to Congress a report assessing the improvements to

the program established under the David L. Boren National Security

Education Act of 1991 (50 U.S.C. 1901 et seq.) that result from

the amendments made by this section.

(2) The report shall include an assessment of the contribution

of the program, as so improved, in meeting the national security

objectives of the United States.

SEC. 1079. AVIATION AND VESSEL WAR RISK INSURANCE.

(a) AVIATION RISK INSURANCE.—(1) Chapter 931 of title 10,

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

new section:

‘‘§ 9514. Indemnification of Department of Transportation

for losses covered by defense-related aviation

insurance

‘‘(a) PROMPT INDEMNIFICATION REQUIRED.—(1) In the event of

a loss that is covered by defense-related aviation insurance, the

Secretary of Defense shall promptly indemnify the Secretary of

Transportation for the amount of the loss consistent with the indemnification agreement between the two Secretaries that underlies

such insurance. The Secretary of Defense shall make such indemnification—

‘‘(A) in the case of a claim for the loss of an aircraft

hull, not later than 30 days after the date on which the Secretary of Transportation determines the claim to be payable

or that amounts are due under the policy that provided the

defense-related aviation insurance; and

‘‘(B) in the case of any other claim, not later than 180

days after the date on which the Secretary of Transportation

determines the claim to be payable.

‘‘(2) When there is a loss of an aircraft hull that is (or may

be) covered by defense-related aviation insurance, the Secretary

of Transportation may make, during the period when a claim for

such loss is pending with the Secretary of Transportation, any

required periodic payments owed by the insured party to a lessor

or mortgagee of such aircraft. Such payments shall commence not

later than 30 days following the date of the presentment of the

claim for the loss of the aircraft hull to the Secretary of Transportation. If the Secretary of Transportation determines that the claim

is payable, any amount paid under this paragraph arising from

such claim shall be credited against the amount payable under
110 STAT. 2668 PUBLIC LAW 104–201—SEPT. 23, 1996

the aviation insurance. If the Secretary of Transportation determines that the claim is not payable, any amount paid under this

paragraph arising from such claim shall constitute a debt to the

United States, payable to the insurance fund. Any such amounts

so returned to the United States shall be promptly credited to

the fund or account from which the payments were made under

this paragraph.

‘‘(b) SOURCE OF FUNDS FOR PAYMENT OF INDEMNITY.—The Secretary of Defense may pay an indemnity described in subsection

(a) from any funds available to the Department of Defense for

operation and maintenance, and such sums as may be necessary

for payment of such indemnity are hereby authorized to be transferred to the Secretary of Transportation for such purpose.

‘‘(c) NOTICE TO CONGRESS.—In the event of a loss that is covered

by defense-related aviation insurance in the case of an incident

in which the covered loss is (or is expected to be) in an amount

in excess of $1,000,000, the Secretary of Defense shall submit

to Congress—

‘‘(1) notification of the loss as soon after the occurrence

of the loss as possible and in no event more than 30 days

after the date of the loss; and

‘‘(2) semiannual reports thereafter updating the information submitted under paragraph (1) and showing with respect

to losses arising from such incident the total amount expended

to cover such losses, the source of those funds, pending litigation, and estimated total cost to the Government.

‘‘(d) IMPLEMENTING MATTERS.—(1) Payment of indemnification

under this section is not subject to section 2214 or 2215 of this

title or any other provision of law requiring notification to Congress

before funds may be transferred.

‘‘(2) Consolidation of claims arising from the same incident

is not required before indemnification of the Secretary of Transportation for payment of a claim may be made under this section.

‘‘(e) CONSTRUCTION WITH OTHER TRANSFER AUTHORITY.—

Authority to transfer funds under this section is in addition to

any other authority provided by law to transfer funds (whether

enacted before, on, or after the date of the enactment of this

section) and is not subject to any dollar limitation or notification

requirement contained in any other such authority to transfer funds.

‘‘(f) ANNUAL REPORT ON CONTINGENT LIABILITIES.—Not later

than March 1 of each year, the Secretary of Defense shall submit

to Congress a report setting forth the current amount of the contingent outstanding liability of the United States under the insurance

program under chapter 443 of title 49.

‘‘(g) DEFINITIONS.—In this section:

‘‘(1) DEFENSE-RELATED AVIATION INSURANCE.—The term

‘defense-related aviation insurance’ means aviation insurance

and reinsurance provided through policies issued by the Secretary of Transportation under chapter 443 of title 49 that

pursuant to section 44305(b) of that title is provided by that

Secretary without premium at the request of the Secretary

of Defense and is covered by an indemnity agreement between

the Secretary of Transportation and the Secretary of Defense.

‘‘(2) LOSS.—The term ‘loss’ includes damage to or destruction of property, personal injury or death, and other liabilities

and expenses covered by the defense-related aviation insurance.’’.

Reports.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2669

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

is amended by adding at the end the following new item:

‘‘9514. Indemnification of Department of Transportation for losses covered by

defense-related aviation insurance.’’.

(b) VESSEL WAR RISK INSURANCE.—(1) Chapter 157 of title

10, United States Code, is amended by adding after section 2644,

as redesignated by section 906, the following new section:

‘‘§ 2645. Indemnification of Department of Transportation

for losses covered by vessel war risk insurance

‘‘(a) PROMPT INDEMNIFICATION REQUIRED.—(1) In the event of

a loss that is covered by vessel war risk insurance, the Secretary

of Defense shall promptly indemnify the Secretary of Transportation

for the amount of the loss consistent with the indemnification

agreement between the two Secretaries that underlies such insurance. The Secretary of Defense shall make such indemnification—

‘‘(A) in the case of a claim for the loss of a vessel, not

later than 90 days after the date on which the Secretary of

Transportation determines the claim to be payable or that

amounts are due under the policy that provided the vessel

war risk insurance; and

‘‘(B) in the case of any other claim, not later than 180

days after the date on which on which the Secretary of

Transportation determines the claim to be payable.

‘‘(2) When there is a loss of a vessel that is (or may be)

covered by vessel war risk insurance, the Secretary of Transportation may make, during the period when a claim for such loss

is pending with the Secretary of Transportation, any required periodic payments owed by the insured party to a lessor or mortgagee

of such vessel. Such payments shall commence not later than 30

days following the date of the presentment of the claim for the

loss of the vessel to the Secretary of Transportation. If the Secretary

of Transportation determines that the claim is payable, any amount

paid under this paragraph arising from such claim shall be credited

against the amount payable under the vessel war risk insurance.

If the Secretary of Transportation determines that the claim is

not payable, any amount paid under this paragraph arising from

such claim shall constitute a debt to the United States, payable

to the insurance fund. Any such amounts so returned to the United

States shall be promptly credited to the fund or account from

which the payments were made under this paragraph.

‘‘(b) SOURCE OF FUNDS FOR PAYMENT OF INDEMNITY.—The Secretary of Defense may pay an indemnity described in subsection

(a) from any funds available to the Department of Defense for

operation and maintenance, and such sums as may be necessary

for payment of such indemnity are hereby authorized to be transferred to the Secretary of Transportation for such purpose.

‘‘(c) DEPOSIT OF FUNDS.—Any amount transferred to the Secretary of Transportation under this section shall be deposited in,

and merged with amounts in, the Vessel War Risk Insurance Fund

as provided in the second sentence of section 1208(a) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1288(a)).

‘‘(d) NOTICE TO CONGRESS.—In the event of a loss that is

covered by vessel war risk insurance in the case of an incident

in which the covered loss is (or is expected to be) in an amount

in excess of $1,000,000, the Secretary of Defense shall submit

to Congress—
110 STAT. 2670 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(1) notification of the loss as soon after the occurrence

of the loss as possible and in no event more than 30 days

after the date of the loss; and

‘‘(2) semiannual reports thereafter updating the information submitted under paragraph (1) and showing with respect

to losses arising from such incident the total amount expended

to cover such losses, the source of such funds, pending litigation,

and estimated total cost to the Government.

‘‘(e) IMPLEMENTING MATTERS.—(1) Payment of indemnification

under this section is not subject to section 2214 or 2215 of this

title or any other provision of law requiring notification to Congress

before funds may be transferred.

‘‘(2) Consolidation of claims arising from the same incident

is not required before indemnification of the Secretary of Transportation for payment of a claim may be made under this section.

‘‘(f) CONSTRUCTION WITH OTHER TRANSFER AUTHORITY.—

Authority to transfer funds under this section is in addition to

any other authority provided by law to transfer funds (whether

enacted before, on, or after the date of the enactment of this

section) and is not subject to any dollar limitation or notification

requirement contained in any other such authority to transfer funds.

‘‘(g) ANNUAL REPORT ON CONTINGENT LIABILITIES.—Not later

than March 1 of each year, the Secretary of Defense shall submit

to Congress a report setting forth the current amount of the contingent outstanding liability of the United States under the vessel

war risk insurance program under title XII of the Merchant Marine

Act, 1936 (46 U.S.C. App. 1281 et seq.).

‘‘(h) DEFINITIONS.—In this section:

‘‘(1) VESSEL WAR RISK INSURANCE.—The term ‘vessel war

risk insurance’ means insurance and reinsurance provided

through policies issued by the Secretary of Transportation

under title XII of the Merchant Marine Act, 1936 (46 U.S.C.

App. 1281 et seq.), that is provided by that Secretary without

premium at the request of the Secretary of Defense and is

covered by an indemnity agreement between the Secretary

of Transportation and the Secretary of Defense.

‘‘(2) VESSEL WAR RISK INSURANCE FUND.—The term ‘Vessel

War Risk Insurance Fund’ means the insurance fund referred

to in the first sentence of section 1208(a) of the Merchant

Marine Act, 1936 (46 U.S.C. App. 1288(a)).

‘‘(3) LOSS.—The term ‘loss’ includes damage to or destruction of property, personal injury or death, and other liabilities

and expenses covered by the vessel war risk insurance.’’.

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

is amended by adding after the item relating to section 2644,

as added by section 906, the following new item:

‘‘2645. Indemnification of Department of Transportation for losses covered by vessel

war risk insurance.’’.

SEC. 1080. DESIGNATION OF MEMORIAL AS NATIONAL D–DAY

MEMORIAL.

(a) DESIGNATION.—The memorial to be constructed by the

National D–Day Memorial Foundation in Bedford, Virginia, is

hereby designated as a national memorial to be known as the

‘‘National D–Day Memorial’’. The memorial shall serve to honor

the members of the Armed Forces of the United States who served

in the liberation of Normandy, France, in June 1944.

Virginia.

16 USC 431 note.

Reports.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2671

(b) PUBLIC PROCLAMATION.—The President is requested and

urged to issue a public proclamation acknowledging the designation

of the memorial to be constructed by the National D–Day Memorial

Foundation in Bedford, Virginia, as the National D–Day Memorial.

(c) MAINTENANCE OF MEMORIAL.—All expenses for maintenance

and care of the memorial shall be paid for with non-Federal funds,

including funds provided by the National D–Day Memorial Foundation. The United States shall not be liable for any expense incurred

for the maintenance and care of the memorial.

SEC. 1081. SENSE OF CONGRESS REGARDING SEMICONDUCTOR

TRADE AGREEMENT BETWEEN UNITED STATES AND

JAPAN.

(a) FINDINGS.—Congress makes the following findings:

(1) The United States and Japan share a long and important bilateral relationship which serves as an anchor of peace

and stability in the Asia Pacific region, an alliance which was

reaffirmed at the recent summit meeting between President

Clinton and Prime Minister Hashimoto in Tokyo.

(2) The Japanese economy has experienced difficulty over

the past few years, demonstrating that it is no longer possible

for Japan, the world’s second largest economy, to use exports

as the sole engine of economic growth, but that the Government

of Japan must promote deregulation of its domestic economy

in order to increase economic growth.

(3) Deregulation of the Japanese economy requires

government attention to the removal of barriers to imports

of manufactured goods.

(4) The United States-Japan Semiconductor Trade

Agreement has begun the process of deregulation in the semiconductor sector and is opening the Japanese market to

competitive foreign products.

(5) The United States-Japan Semiconductor Trade Agreement has put in place both government-to-government and

industry-to-industry mechanisms which have played a vital

role in allowing cooperation to replace conflict in this important

high technology sector.

(6) The mechanisms include joint calculation of foreign

market share, deterrence of dumping, and promotion of industrial cooperation in the design of foreign semiconductor devices.

(7) Because of these actions under the United States-Japan

Semiconductor Trade Agreement, the United States and Japan

today enjoy trade in semiconductors which is mutually beneficial, harmonious, and free from the friction that once

characterized the semiconductor industry.

(8) Because of structural barriers in Japan, a gap still

remains between the share of the world market for semiconductor products outside Japan that the United States and other

foreign semiconductor sources are able to capture through

competitiveness and the share of the Japanese semiconductor

market that the United States and those other sources are

able to capture through competitiveness, and that gap is

consistent across the full range of semiconductor products as

well as a full range of end-use applications.

(9) The competitiveness and health of the United States

semiconductor industry is of critical importance to the overall

William J.

Clinton.

Ryutaro

Hashimoto.
110 STAT. 2672 PUBLIC LAW 104–201—SEPT. 23, 1996

economic well-being and high-technology defense capabilities

of the United States.

(10) The economic interests of both the United States and

Japan are best served by well functioning, open markets, deterrence of dumping, and continuing good cooperative relationships

in all sectors, including semiconductors.

(11) A strong and healthy military and political alliance

between the United States and Japan requires continuation

of the industrial and economic cooperation promoted by the

United States-Japan Semiconductor Trade Agreement.

(12) President Clinton has called on the Government of

Japan to agree to a continuation of the United States-Japan

Semiconductor Trade Agreement beyond the current agreement’s expiration on July 31, 1996.

(13) The Government of Japan has opposed any

continuation of the United States-Japan Semiconductor Trade

Agreement to promote cooperation in United States-Japan semiconductor trade.

(b) SENSE OF CONGRESS.—On the basis of the findings contained

in subsection (a), it is the sense of Congress that—

(1) it is regrettable that the Government of Japan has

refused to consider continuation of the United States-Japan

Semiconductor Trade Agreement to ensure that cooperation

continues in the semiconductor sector beyond the expiration

of the agreement on July 31, 1996; and

(2) the President should take all necessary and appropriate

actions to ensure the resumption and extension of the United

States-Japan Semiconductor Trade Agreement beyond July 31,

1996.

(c) DEFINITION.—For purposes of this section, the term ‘‘United

States-Japan Semiconductor Trade Agreement’’ refers to the agreement between the United States and Japan concerning trade in

semiconductor products, with arrangement, done by exchange of

letters at Washington on June 11, 1991.

SEC. 1082. AGREEMENTS FOR EXCHANGE OF DEFENSE PERSONNEL

BETWEEN THE UNITED STATES AND FOREIGN COUNTRIES.

(a) AUTHORITY TO ENTER INTO INTERNATIONAL EXCHANGE

AGREEMENTS.—(1) The Secretary of Defense may enter into international defense personnel exchange agreements.

(2) For purposes of this section, an international defense personnel exchange agreement is an agreement with the government

of an ally of the United States or another friendly foreign country

for the exchange of—

(A) military and civilian personnel of the Department of

Defense; and

(B) military and civilian personnel of the defense ministry

of that foreign government.

(b) ASSIGNMENT OF PERSONNEL.—(1) Pursuant to an international defense personnel exchange agreement, personnel of the

defense ministry of a foreign government may be assigned to positions in the Department of Defense and personnel of the

Department of Defense may be assigned to positions in the defense

ministry of such foreign government. Positions to which exchanged

personnel are assigned may include positions of instructors.

10 USC 168 note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2673

(2) An agreement for the exchange of personnel engaged in

research and development activities may provide for assignment

of Department of Defense personnel to positions in private industry

that support the defense ministry of the host foreign government.

(3) An individual may not be assigned to a position pursuant

to an international defense personnel exchange agreement unless

the assignment is acceptable to both governments.

(c) RECIPROCITY OF PERSONNEL QUALIFICATIONS REQUIRED.— Each government shall be required under an international defense

personnel exchange agreement to provide personnel with qualifications, training, and skills that are essentially equal to those of

the personnel provided by the other government.

(d) PAYMENT OF PERSONNEL COSTS.—(1) Each government shall

pay the salary, per diem, cost of living, travel costs, cost of language

or other training, and other costs for its own personnel in accordance

with the applicable laws and regulations of such government.

(2) Paragraph (1) does not apply to the following costs:

(A) The cost of temporary duty directed by the host government.

(B) The cost of training programs conducted to familiarize,

orient, or certify exchanged personnel regarding unique aspects

of the assignments of the exchanged personnel.

(C) Costs incident to the use of the facilities of the host

government in the performance of assigned duties.

(e) PROHIBITED CONDITIONS.—No personnel exchanged pursuant to an agreement under this section may take or be required

to take an oath of allegiance to the host country or to hold an

official capacity in the government of such country.

(f) RELATIONSHIP TO OTHER AUTHORITY.—The requirements in

subsections (c) and (d) shall apply in the exercise of any authority

of the Secretaries of the military departments to enter into an

agreement with the government of a foreign country to provide

for the exchange of members of the armed forces and military

personnel of the foreign country. The Secretary of Defense may

prescribe regulations for the application of such subsections in

the exercise of such authority.

SEC. 1083. SENSE OF SENATE REGARDING BOSNIA AND HERZEGOVINA.

It is the sense of the Senate that, notwithstanding any other

provision of law, in order to maximize the amount of equipment

provided to the Government of Bosnia and Herzegovina under the

authority contained in section 540 of the Foreign Operations, Export

Financing, and Related Programs Appropriations Act, 1996 (Public

Law 104–107; 110 Stat. 737), the price of the transferred equipment

shall not exceed the lowest level at which the same or similar

equipment has been transferred to any other country under any

other United States Government program.

SEC. 1084. DEFENSE BURDENSHARING.

(a) EFFORTS TO INCREASE ALLIED BURDENSHARING.—The President shall seek to have each nation that has cooperative military

relations with the United States (including security agreements,

basing arrangements, or mutual participation in multinational military organizations or operations) take one or more of the following

actions:

(1) Increase its financial contributions to the payment of

the nonpersonnel costs incurred by the United States Government for stationing United States military personnel in that

President.

22 USC 1928

note.
110 STAT. 2674 PUBLIC LAW 104–201—SEPT. 23, 1996

nation, with a goal of achieving by September 30, 2000, 75

percent of such costs. An increase in financial contributions

by any nation under this paragraph may include the elimination

of taxes, fees, or other charges levied on United States military

personnel, equipment, or facilities stationed in that nation.

(2) Increase its annual budgetary outlays for national

defense as a percentage of its gross domestic product by 10

percent or at least to a level commensurate to that of the

United States by September 30, 1997.

(3) Increase its annual budgetary outlays for foreign assistance (to promote democratization, economic stabilization, transparency arrangements, defense economic conversion, respect

for the rule of law, and internationally recognized human

rights) by 10 percent or at least to a level commensurate

to that of the United States by September 30, 1997.

(4) Increase the amount of military assets (including

personnel, equipment, logistics, support and other resources)

that it contributes, or would be prepared to contribute, to

multinational military activities worldwide.

(b) AUTHORITIES TO ENCOURAGE ACTIONS BY UNITED STATES

ALLIES.—In seeking the actions described in subsection (a) with

respect to any nation, or in response to a failure by any nation

to undertake one or more of such actions, the President may take

any of the following measures to the extent otherwise authorized

by law:

(1) Reduce the end strength level of members of the Armed

Forces assigned to permanent duty ashore in that nation.

(2) Impose on that nation fees or other charges similar

to those that such nation imposes on United States forces

stationed in that nation.

(3) Reduce (through rescission, impoundment, or other

appropriate procedures as authorized by law) the amount the

United States contributes to the NATO Civil Budget, Military

Budget, or Security Investment Program.

(4) Suspend, modify, or terminate any bilateral security

agreement the United States has with that nation, consistent

with the terms of such agreement.

(5) Reduce (through rescission, impoundment, or other

appropriate procedures as authorized by law) any United States

bilateral assistance appropriated for that nation.

(6) Take any other action the President determines to

be appropriate as authorized by law.

(c) REPORT ON PROGRESS IN INCREASING ALLIED

BURDENSHARING.—Not later than March 1, 1997, the Secretary

of Defense shall submit to Congress a report on—

(1) steps taken by other nations to complete the actions

described in subsection (a);

(2) all measures taken by the President, including those

authorized in subsection (b), to achieve the actions described

in subsection (a); and

(3) the budgetary savings to the United States that are

expected to accrue as a result of the steps described under

paragraph (1).

(d) REPORT ON NATIONAL SECURITY BASES FOR FORWARD

DEPLOYMENT AND BURDENSHARING RELATIONSHIPS.—(1) In order

to ensure the best allocation of budgetary resources, the President

shall undertake a review of the status of elements of the United
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2675

States Armed Forces that are permanently stationed outside the

United States. The review shall include an assessment of the

following:

(A) The alliance requirements that are to be found in

agreements between the United States and other countries.

(B) The national security interests that support permanently stationing elements of the United States Armed Forces

outside the United States.

(C) The stationing costs associated with the forward deployment of elements of the United States Armed Forces.

(D) The alternatives available to forward deployment (such

as material prepositioning, enhanced airlift and sealift, or joint

training operations) to meet such alliance requirements or

national security interests, with such alternatives identified

and described in detail.

(E) The costs and force structure configurations associated

with such alternatives to forward deployment.

(F) The financial contributions that allies of the United

States make to common defense efforts (to promote democratization, economic stabilization, transparency arrangements,

defense economic conversion, respect for the rule of law, and

internationally recognized human rights).

(G) The contributions that allies of the United States make

to meeting the stationing costs associated with the forward

deployment of elements of the United States Armed Forces.

(H) The annual expenditures of the United States and

its allies on national defense, and the relative percentages

of each nation’s gross domestic product constituted by those

expenditures.

(2) The President shall submit to Congress a report on the

review under paragraph (1). The report shall be submitted not

later than March 1, 1997, in classified and unclassified form.

(e) REPORT DATE.—Section 1003(c) of Public Law 98–515 is

amended by striking out ‘‘each year’’ and inserting ‘‘by March 1,

1998, and every other year thereafter’’.

TITLE XI—NATIONAL IMAGERY AND

MAPPING AGENCY

Sec. 1101. Short title.

Sec. 1102. Findings.

Sec. 1103. Role of Director of Central Intelligence in appointment and evaluation

of certain intelligence officials.

Subtitle A—Establishment of Agency

Sec. 1111. Establishment.

Sec. 1112. Missions and authority.

Sec. 1113. Transfers of personnel and assets.

Sec. 1114. Compatibility with authority under the National Security Act of 1947.

Sec. 1115. Creditable civilian service for career conditional employees of the

Defense Mapping Agency.

Sec. 1116. Saving provisions.

Sec. 1117. Definitions.

Sec. 1118. Authorization of appropriations.

Subtitle B—Conforming Amendments and Effective Dates

Sec. 1121. Redesignation and repeals.

Sec. 1122. Reference amendments.

Sec. 1123. Headings and clerical amendments.

Sec. 1124. Effective date.

National Imagery

and Mapping

Agency Act of

1996.
110 STAT. 2676 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 1101. SHORT TITLE.

This title may be cited as the ‘‘National Imagery and Mapping

Agency Act of 1996’’.

SEC. 1102. FINDINGS.

Congress makes the following findings:

(1) There is a need within the Department of Defense

and the Intelligence Community of the United States to provide

a single agency focus for the growing number and diverse

types of customers for imagery and geospatial information

resources within the Government, to ensure visibility and

accountability for those resources, and to harness, leverage,

and focus rapid technological developments to serve the

imagery, imagery intelligence, and geospatial information customers.

(2) There is a need for a single Government agency to

solicit and advocate the needs of that growing and diverse

pool of customers.

(3) A single combat support agency dedicated to imagery,

imagery intelligence, and geospatial information could act as

a focal point for support of all imagery intelligence and

geospatial information customers, including customers in the

Department of Defense, the Intelligence Community, and

related agencies outside of the Department of Defense.

(4) Such an agency would best serve the needs of the

imagery, imagery intelligence, and geospatial information customers if it were organized—

(A) to carry out its mission responsibilities under the

authority, direction, and control of the Secretary of Defense,

with the advice of the Chairman of the Joint Chiefs of

Staff; and

(B) to carry out its responsibilities to national intelligence customers in accordance with policies and priorities

established by the Director of Central Intelligence.

SEC. 1103. ROLE OF DIRECTOR OF CENTRAL INTELLIGENCE IN

APPOINTMENT AND EVALUATION OF CERTAIN INTELLIGENCE OFFICIALS.

(a) IN GENERAL.—Section 201 of title 10, United States Code,

is amended to read as follows:

‘‘§ 201. Certain intelligence officials: consultation and

concurrence regarding appointments; evaluation of

performance

‘‘(a) CONSULTATION REGARDING APPOINTMENT.—Before submitting a recommendation to the President regarding the appointment

of an individual to the position of Director of the Defense Intelligence Agency, the Secretary of Defense shall consult with the

Director of Central Intelligence regarding the recommendation.

‘‘(b) CONCURRENCE IN APPOINTMENT.—(1) Before submitting a

recommendation to the President regarding the appointment of

an individual to a position referred to in paragraph (2), the Secretary of Defense shall seek the concurrence of the Director of

Central Intelligence in the recommendation. If the Director does

not concur in the recommendation, the Secretary may make the

recommendation to the President without the Director’s concurrence,

10 USC 441 note.

10 USC 441 note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2677

but shall include in the recommendation a statement that

the Director does not concur in the recommendation.

‘‘(2) Paragraph (1) applies to the following positions:

‘‘(A) The Director of the National Security Agency.

‘‘(B) The Director of the National Reconnaissance Office.

‘‘(C) The Director of the National Imagery and Mapping

Agency.

‘‘(c) PERFORMANCE EVALUATIONS.—(1) The Director of Central

Intelligence shall provide annually to the Secretary of Defense,

for the Secretary’s consideration, an evaluation of the performance

of the individuals holding the positions referred to in paragraph

(2) in fulfilling their respective responsibilities with regard to the

National Foreign Intelligence Program.

‘‘(2) The positions referred to in paragraph (1) are the following:

‘‘(A) The Director of the National Security Agency.

‘‘(B) The Director of the National Reconnaissance Office.

‘‘(C) The Director of the National Imagery and Mapping

Agency.’’.

(b) CLERICAL AMENDMENT.—The item relating to section 201

in the table of sections at the beginning of subchapter II of chapter

8 of such title is amended to read as follows:

‘‘201. Certain intelligence officials: consultation and concurrence regarding appointments; evaluation of performance.’’.

Subtitle A—Establishment of Agency

SEC. 1111. ESTABLISHMENT.

(a) ESTABLISHMENT.—There is hereby established in the Department of Defense a Defense Agency to be known as the National

Imagery and Mapping Agency.

(b) TRANSFER OF FUNCTIONS FROM DEPARTMENT OF DEFENSE

ENTITIES.—The missions and functions of the following elements

of the Department of Defense are transferred to the National

Imagery and Mapping Agency:

(1) The Defense Mapping Agency.

(2) The Central Imagery Office.

(3) Other elements of the Department of Defense as specified in the classified annex to this Act.

(c) TRANSFER OF FUNCTIONS FROM CENTRAL INTELLIGENCE

AGENCY.—The missions and functions of the following elements

of the Central Intelligence Agency are transferred to the National

Imagery and Mapping Agency:

(1) The National Photographic Interpretation Center.

(2) Other elements of the Central Intelligence Agency as

specified in the classified annex to this Act.

(d) PRESERVATION OF LEVEL AND QUALITY OF IMAGERY INTELLIGENCE SUPPORT TO ALL-SOURCE ANALYSIS AND PRODUCTION.—

In managing the establishment of the National Imagery and Mapping Agency, the Secretary of Defense, in consultation with the

Director of Central Intelligence, shall ensure that imagery intelligence support provided to all-source analysis and production is

in no way degraded or compromised.

SEC. 1112. MISSIONS AND AUTHORITY.

(a) AGENCY CHARTER.—Part I of subtitle A of title 10, United

States Code, is amended—

10 USC 441 note.
110 STAT. 2678 PUBLIC LAW 104–201—SEPT. 23, 1996

(1) by redesignating chapter 22 as chapter 23; and

(2) by inserting after chapter 21 the following new

chapter 22:

‘‘CHAPTER 22—NATIONAL IMAGERY AND MAPPING

AGENCY

‘‘Subchapter Sec.

‘‘I. Missions and Authority .................................................................................... 441

‘‘II. Maps, Charts, and Geodetic Products ............................................................ 451

‘‘III. Personnel Management ................................................................................. 461

‘‘IV. Definitions ....................................................................................................... 467

‘‘SUBCHAPTER I—MISSIONS AND AUTHORITY

‘‘Sec.

‘‘441. Establishment.

‘‘442. Missions.

‘‘443. Imagery intelligence and geospatial information: support for foreign countries.

‘‘444. Support from Central Intelligence Agency.

‘‘445. Protection of agency identifications and organizational information.

‘‘§ 441. Establishment

‘‘(a) ESTABLISHMENT.—The National Imagery and Mapping

Agency is a combat support agency of the Department of Defense

and has significant national missions.

‘‘(b) DIRECTOR.—(1) The Director of the National Imagery and

Mapping Agency is the head of the agency.

‘‘(2) Upon a vacancy in the position of Director, the Secretary

of Defense shall recommend to the President an individual for

appointment to the position.

‘‘(3) If an officer of the armed forces on active duty is appointed

to the position of Director, the position shall be treated as having

been designated by the President as a position of importance and

responsibility for purposes of section 601 of this title and shall

carry the grade of lieutenant general, or, in the case of an officer

of the Navy, vice admiral.

‘‘(c) DIRECTOR OF CENTRAL INTELLIGENCE COLLECTION TASKING

AUTHORITY.—Unless otherwise directed by the President, the Director of Central Intelligence shall have authority (except as otherwise

agreed by the Director and the Secretary of Defense) to—

‘‘(1) approve collection requirements levied on national

imagery collection assets;

‘‘(2) determine priorities for such requirements; and

‘‘(3) resolve conflicts in such priorities.

‘‘(d) AVAILABILITY AND CONTINUED IMPROVEMENT OF IMAGERY

INTELLIGENCE SUPPORT TO ALL-SOURCE ANALYSIS AND PRODUCTION

FUNCTION.—The Secretary of Defense, in consultation with the

Director of Central Intelligence, shall take all necessary steps to

ensure the full availability and continued improvement of imagery

intelligence support for all-source analysis and production.

‘‘§ 442. Missions

‘‘(a) NATIONAL SECURITY MISSIONS.—(1) The National Imagery

and Mapping Agency shall, in support of the national security

objectives of the United States, provide the following:

‘‘(A) Imagery.

‘‘(B) Imagery intelligence.

‘‘(C) Geospatial information.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2679

‘‘(2) Imagery, intelligence, and information provided in carrying

out paragraph (1) shall be timely, relevant, and accurate.

‘‘(b) NAVIGATION INFORMATION.—The National Imagery and

Mapping Agency shall improve means of navigating vessels of the

Navy and the merchant marine by providing, under the authority

of the Secretary of Defense, accurate and inexpensive nautical

charts, sailing directions, books on navigation, and manuals of

instructions for the use of all vessels of the United States and

of navigators generally.

‘‘(c) MAPS, CHARTS, ETC.—The National Imagery and Mapping

Agency shall prepare and distribute maps, charts, books, and geodetic products as authorized under subchapter II of this chapter.

‘‘(d) NATIONAL MISSIONS.—The National Imagery and Mapping

Agency also has national missions as specified in section 120(a)

of the National Security Act of 1947.

‘‘(e) SYSTEMS.—The National Imagery and Mapping Agency

may, in furtherance of a mission of the Agency, design, develop,

deploy, operate, and maintain systems related to the processing

and dissemination of imagery intelligence and geospatial information that may be transferred to, accepted or used by, or used

on behalf of—

‘‘(1) the armed forces, including any combatant command,

component of a combatant command, joint task force, or tactical

unit; or

‘‘(2) any other department or agency of the United States.

‘‘§ 443. Imagery intelligence and geospatial information: support for foreign countries

‘‘(a) USE OF APPROPRIATED FUNDS.—The Director of the

National Imagery and Mapping Agency may use appropriated funds

available to the National Imagery and Mapping Agency to provide

foreign countries with imagery intelligence and geospatial information support.

‘‘(b) USE OF FUNDS OTHER THAN APPROPRIATED FUNDS.—The

Director may use funds other than appropriated funds to provide

foreign countries with imagery intelligence and geospatial information support, notwithstanding provisions of law relating to the

expenditure of funds of the United States, except that—

‘‘(1) no such funds may be expended, in whole or in part,

by or for the benefit of the National Imagery and Mapping

Agency for a purpose for which Congress had previously denied

funds.

‘‘(2) proceeds from the sale of imagery intelligence or

geospatial information items may be used only to purchase

replacement items similar to the items that are sold; and

‘‘(3) the authority provided by this subsection may not

be used to acquire items or services for the principal benefit

of the United States.

‘‘(c) ACCOMMODATION PROCUREMENTS.—The authority under

this section may be exercised to conduct accommodation procurements on behalf of foreign countries.

‘‘(d) COORDINATION WITH DIRECTOR OF CENTRAL INTELLIGENCE.—The Director of the Agency shall coordinate with the

Director of Central Intelligence any action under this section that

involves imagery intelligence or intelligence products or involves

providing support to an intelligence or security service of a foreign

country.
110 STAT. 2680 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘§ 444. Support from Central Intelligence Agency

‘‘(a) SUPPORT AUTHORIZED.—The Director of Central Intelligence may provide support in accordance with this section to

the Director of the National Imagery and Mapping Agency. The

Director of the National Imagery and Mapping Agency may accept

support provided under this section.

‘‘(b) ADMINISTRATIVE AND CONTRACT SERVICES.—(1) In furtherance of the national intelligence effort, the Director of Central

Intelligence may provide administrative and contract services to

the National Imagery and Mapping Agency as if that agency were

an organizational element of the Central Intelligence Agency.

‘‘(2) Services provided under paragraph (1) may include the

services of security police. For purposes of section 15 of the Central

Intelligence Agency Act of 1949 (50 U.S.C. 403o), an installation

of the National Imagery and Mapping Agency that is provided

security police services under this section shall be considered an

installation of the Central Intelligence Agency.

‘‘(3) Support provided under this subsection shall be provided

under terms and conditions agreed upon by the Secretary of Defense

and the Director of Central Intelligence.

‘‘(c) DETAIL OF PERSONNEL.—The Director of Central Intelligence may detail personnel of the Central Intelligence Agency

indefinitely to the National Imagery and Mapping Agency without

regard to any limitation on the duration of interagency details

of Federal Government personnel.

‘‘(d) REIMBURSABLE OR NONREIMBURSABLE SUPPORT.—Support

under this section may be provided and accepted on either a

reimbursable basis or a nonreimbursable basis.

‘‘(e) AUTHORITY TO TRANSFER FUNDS.—(1) The Director of the

National Imagery and Mapping Agency may transfer funds available for that agency to the Director of Central Intelligence for

the Central Intelligence Agency.

‘‘(2) The Director of Central Intelligence—

‘‘(A) may accept funds transferred under paragraph

(1); and

‘‘(B) shall expend such funds, in accordance with the

Central Intelligence Agency Act of 1949 (50 U.S.C. 403a et

seq.), to provide administrative and contract services or detail

personnel to the National Imagery and Mapping Agency under

this section.

‘‘§ 445. Protection of agency identifications and organizational information

‘‘(a) UNAUTHORIZED USE OF AGENCY NAME, INITIALS, OR SEAL.— (1) Except with the written permission of the Secretary of Defense,

no person may knowingly use, in connection with any merchandise,

retail product, impersonation, solicitation, or commercial activity

in a manner reasonably calculated to convey the impression that

such use is approved, endorsed, or authorized by the Secretary

of Defense, any of the following:

‘‘(A) The words ‘National Imagery and Mapping Agency’,

the initials ‘NIMA’, or the seal of the National Imagery and

Mapping Agency.

‘‘(B) The words ‘Defense Mapping Agency’, the initials

‘DMA’, or the seal of the Defense Mapping Agency.

‘‘(C) Any colorable imitation of such words, initials, or

seals.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2681

‘‘(2) Whenever it appears to the Attorney General that any

person is engaged or about to engage in an act or practice which

constitutes or will constitute conduct prohibited by paragraph (1),

the Attorney General may initiate a civil proceeding in a district

court of the United States to enjoin such act or practice. Such

court shall proceed as soon as practicable to a hearing and determination of such action and may, at any time before such final

determination, enter such restraining orders or prohibitions, or

take such other action as is warranted, to prevent injury to the

United States or to any person or class of persons for whose protection the action is brought.

‘‘SUBCHAPTER II—MAPS, CHARTS, AND GEODETIC

PRODUCTS

‘‘Sec.

‘‘451. Maps, charts, and books.

‘‘452. Pilot charts.

‘‘453. Prices of maps, charts, and navigational publications.

‘‘454. Exchange of mapping, charting, and geodetic data with foreign countries and

international organizations.

‘‘455. Maps, charts, and geodetic data: public availability; exceptions.

‘‘456. Civil actions barred.

‘‘SUBCHAPTER III—PERSONNEL MANAGEMENT

‘‘Sec.

‘‘461. Management rights.

‘‘§ 461. Management rights

‘‘(a) SCOPE.—If there is no obligation under the provisions of

chapter 71 of title 5 for the head of an agency of the United

States to consult or negotiate with a labor organization on a particular matter by reason of that matter being covered by a provision

of law or a Governmentwide regulation, the Director of the National

Imagery and Mapping Agency is not obligated to consult or negotiate

with a labor organization on that matter even if that provision

of law or regulation is inapplicable to the National Imagery and

Mapping Agency.

‘‘(b) BARGAINING UNITS.—The National Imagery and Mapping

Agency shall accord exclusive recognition to a labor organization

under section 7111 of title 5 only for a bargaining unit that was

recognized as appropriate for the Defense Mapping Agency on the

day before the date on which employees and positions of the Defense

Mapping Agency in that bargaining unit became employees and

positions of the National Imagery and Mapping Agency under the

National Imagery and Mapping Agency Act of 1996 (title XI of

the National Defense Authorization Act for Fiscal Year 1997).

‘‘(c) TERMINATION OF BARGAINING UNIT COVERAGE OF POSITION

MODIFIED TO AFFECT NATIONAL SECURITY DIRECTLY.—(1) If the

Director of the National Imagery and Mapping Agency determines

that the responsibilities of a position within a collective bargaining

unit should be modified to include intelligence, counterintelligence,

investigative, or security duties not previously assigned to that

position and that the performance of the newly assigned duties

directly affects the national security of the United States, then,

upon such a modification of the responsibilities of that position,

the position shall cease to be covered by the collective bargaining

unit and the employee in that position shall cease to be entitled
110 STAT. 2682 PUBLIC LAW 104–201—SEPT. 23, 1996

to representation by a labor organization accorded exclusive recognition for that collective bargaining unit.

‘‘(2) A determination described in paragraph (1) that is made

by the Director of the National Imagery and Mapping Agency

may not be reviewed by the Federal Labor Relations Authority

or any court of the United States.

‘‘SUBCHAPTER IV—DEFINITIONS

‘‘Sec.

‘‘467. Definitions.

‘‘§ 467. Definitions

‘‘In this chapter:

‘‘(1) The term ‘function’ means any duty, obligation, responsibility, privilege, activity, or program.

‘‘(2)(A) The term ‘imagery’ means, except as provided in

subparagraph (B), a likeness or presentation of any natural

or manmade feature or related object or activity and the positional data acquired at the same time the likeness or representation was acquired, including—

‘‘(i) products produced by space-based national intelligence reconnaissance systems; and

‘‘(ii) likenesses or presentations produced by satellites,

airborne platforms, unmanned aerial vehicles, or other

similar means.

‘‘(B) Such term does not include handheld or clandestine

photography taken by or on behalf of human intelligence collection organizations.

‘‘(3) The term ‘imagery intelligence’ means the technical,

geographic, and intelligence information derived through the

interpretation or analysis of imagery and collateral materials.

‘‘(4) The term ‘geospatial information’ means information

that identifies the geographic location and characteristics of

natural or constructed features and boundaries on the earth

and includes—

‘‘(A) statistical data and information derived from,

among other things, remote sensing, mapping, and surveying technologies;

‘‘(B) mapping, charting, and geodetic data; and

‘‘(C) geodetic products, as defined in section 455(c)

of this title.’’.

(b) TRANSFER OF DEFENSE MAPPING AGENCY PROVISIONS.—(1)

Sections 2792, 2793, 2794, 2795, 2796, and 2798 of title 10, United

States Code, are transferred to subchapter II of chapter 22

of such title, as added by subsection (a), inserted in that sequence

in such subchapter following the table of sections, and redesignated

in accordance with the following table:

Section Section as

transferred redesignated

2792 .................................................................................................................. 451

2793 .................................................................................................................. 452

2794 .................................................................................................................. 453

2795 .................................................................................................................. 454

2796 .................................................................................................................. 455

2798 .................................................................................................................. 456.

(2) Sections 451(1), 452, 453, 454, and 455 (in subsections

(a) and (b)(1)(C)), and 456 of title 10, United States Code, as
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2683

transferred and redesignated by paragraph (1), are amended by

striking out ‘‘Defense Mapping Agency’’ each place it appears and

inserting in lieu thereof ‘‘National Imagery and Mapping Agency’’.

(c) OVERSIGHT OF AGENCY AS A COMBAT SUPPORT AGENCY.—

Section 193 of title 10, United States Code, is amended—

(1) in subsection (d)—

(A) by striking out the caption and inserting in lieu

thereof ‘‘REVIEW OF NATIONAL SECURITY AGENCY AND

NATIONAL IMAGERY AND MAPPING AGENCY.—’’;

(B) in paragraph (1)—

(i) by inserting ‘‘and the National Imagery and

Mapping Agency’’ after ‘‘the National Security Agency’’;

and

(ii) by striking out ‘‘the Agency’’ and inserting in

lieu thereof ‘‘that the agencies’’; and

(C) in paragraph (2), by inserting ‘‘and the National

Imagery and Mapping Agency’’ after ‘‘the National Security

Agency’’;

(2) in subsection (e)—

(A) by striking out ‘‘DIA AND NSA’’ in the caption

and inserting in lieu thereof the following: ‘‘DIA, NSA,

AND NIMA’’; and

(B) by striking out ‘‘and the National Security Agency’’

and inserting in lieu thereof ‘‘, the National Security

Agency, and the National Imagery and Mapping Agency’’;

and

(3) in subsection (f), by striking out paragraph (4) and

inserting in lieu thereof the following:

‘‘(4) The National Imagery and Mapping Agency.’’.

(d) CONSOLIDATION AND STANDARDIZATION OF EXEMPTIONS

FROM DISCLOSURE OF ORGANIZATIONAL AND PERSONNEL INFORMATION.—Chapter 21 of title 10, United States Code, is amended

by striking out sections 424 and 425 and inserting in lieu thereof

the following:

‘‘§ 424. Disclosure of organizational and personnel information: exemption for Defense Intelligence Agency,

National Reconnaissance Office, and National

Imagery and Mapping Agency

‘‘(a) EXEMPTION FROM DISCLOSURE.—Except as required by the

President or as provided in subsection (c), no provision of law

shall be construed to require the disclosure of—

‘‘(1) the organization or any function of an organization

of the Department of Defense named in subsection (b); or

‘‘(2) the number of persons employed by or assigned or

detailed to any such organization or the name, official title,

occupational series, grade, or salary of any such person.

‘‘(b) COVERED ORGANIZATIONS.—This section applies to the following organizations of the Department of Defense:

‘‘(1) The Defense Intelligence Agency.

‘‘(2) The National Reconnaissance Office.

‘‘(3) The National Imagery and Mapping Agency.

‘‘(c) PROVISION OF INFORMATION TO CONGRESS.—Subsection (a)

does not apply with respect to the provision of information to

Congress.’’.

(e) SPECIAL PRINTING AUTHORITY FOR AGENCY.—(1) Section

207(a)(2)(B) of the Legislative Branch Appropriations Act, 1993
110 STAT. 2684 PUBLIC LAW 104–201—SEPT. 23, 1996

(Public Law 102–392; 44 U.S.C. 501 note), is amended by inserting

‘‘National Imagery and Mapping Agency,’’ after ‘‘Defense Intelligence Agency,’’.

(2) Section 1336 of title 44, United States Code, is amended—

(A) by striking out ‘‘Secretary of the Navy’’ and inserting

in lieu thereof ‘‘Director of the National Imagery and Mapping

Agency’’; and

(B) by striking out ‘‘United States Naval Oceanographic

Office’’ and inserting in lieu thereof ‘‘National Imagery and

Mapping Agency’’.

SEC. 1113. TRANSFERS OF PERSONNEL AND ASSETS.

(a) PERSONNEL AND ASSETS.—Subject to subsections (b) and

(c), the personnel, assets, unobligated balances of appropriations

and authorizations of appropriations, and, to the extent jointly

determined appropriate by the Secretary of Defense and Director

of Central Intelligence, obligated balances of appropriations and

authorizations of appropriations employed, used, held, arising from,

or available in connection with the missions and functions transferred under section 1111(b) or section 1111(c) are transferred to

the National Imagery and Mapping Agency. Transfers of appropriations from the Central Intelligence Agency under this subsection

shall be made in accordance with section 1531 of title 31, United

States Code.

(b) DETERMINATION OF CIA POSITIONS TO BE TRANSFERRED.—

Not earlier than two years after the effective date of this subtitle,

the Secretary of Defense and the Director of Central Intelligence

shall determine which, if any, positions and personnel of the Central

Intelligence Agency are to be transferred to the National Imagery

and Mapping Agency. The positions to be transferred, and the

employees serving in such positions, shall be transferred to the

National Imagery and Mapping Agency under terms and conditions

prescribed by the Secretary of Defense and the Director of Central

Intelligence.

(c) RULE FOR CIA IMAGERY ACTIVITIES ONLY PARTIALLY TRANSFERRED.—If the National Photographic Interpretation Center of the

Central Intelligence Agency or any imagery-related activity of the

Central Intelligence Agency authorized to be performed by the

National Imagery and Mapping Agency is not completely transferred to the National Imagery and Mapping Agency, the Secretary

of Defense and the Director of Central Intelligence shall—

(1) jointly determine which, if any, contracts, leases, property, and records employed, used, held, arising from, available

to, or otherwise relating to such Center or activity is to be

transferred to the National Imagery and Intelligence Agency;

and

(2) provide by written agreement for the transfer of such

items.

SEC. 1114. COMPATIBILITY WITH AUTHORITY UNDER THE NATIONAL

SECURITY ACT OF 1947.

(a) AGENCY FUNCTIONS.—Paragraph (2) of section 105(b) of

the National Security Act of 1947 (50 U.S.C. 403–5(b)) is amended

to read as follows:

‘‘(2) through the National Imagery and Mapping Agency

(except as otherwise directed by the President or the National

Security Council), with appropriate representation from the

10 USC 441 note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2685

intelligence community, the continued operation of an effective

unified organization within the Department of Defense—

‘‘(A) for carrying out tasking of imagery collection;

‘‘(B) for the coordination of imagery processing and

exploitation activities;

‘‘(C) for ensuring the dissemination of imagery in a

timely manner to authorized recipients; and

‘‘(D) notwithstanding any other provision of law, for—

‘‘(i) prescribing technical architecture and standards related to imagery intelligence and geospatial

information and ensuring compliance with such

architecture and standards; and

‘‘(ii) developing and fielding systems of common

concern related to imagery intelligence and geospatial

information;’’.

(b) NATIONAL MISSION.—Title I of such Act (50 U.S.C. 402

et seq.) is amended by adding at the end the following new section:

‘‘NATIONAL MISSION OF NATIONAL IMAGERY AND MAPPING AGENCY

‘‘SEC. 120. (a) IN GENERAL.—In addition to the Department

of Defense missions set forth in section 442 of title 10, United

States Code, the National Imagery and Mapping Agency shall support the imagery requirements of the Department of State and

other departments and agencies of the United States outside the

Department of Defense.

‘‘(b) REQUIREMENTS AND PRIORITIES.—The Director of Central

Intelligence shall establish requirements and priorities governing

the collection of national intelligence by the National Imagery and

Mapping Agency under subsection (a).

‘‘(c) CORRECTION OF DEFICIENCIES.—The Director of Central

Intelligence shall develop and implement such programs and policies as the Director and the Secretary of Defense jointly determine

necessary to review and correct deficiencies identified in the

capabilities of the National Imagery and Mapping Agency to accomplish assigned national missions, including support to the all-source

analysis and production process. The Director shall consult with

the Secretary of Defense on the development and implementation

of such programs and policies. The Secretary shall obtain the advice

of the Chairman of the Joint Chiefs of Staff regarding the matters

on which the Director and the Secretary are to consult under

the preceding sentence.’’.

(c) TASKING OF IMAGERY ASSETS.—Title I of such Act is further

amended by adding at the end the following new section:

‘‘COLLECTION TASKING AUTHORITY

‘‘SEC. 121. Unless otherwise directed by the President, the

Director of Central Intelligence shall have authority (except as

otherwise agreed by the Director and the Secretary of Defense)

to—

‘‘(1) approve collection requirements levied on national

imagery collection assets;

‘‘(2) determine priorities for such requirements; and

‘‘(3) resolve conflicts in such priorities.’’.

50 USC 404f.

50 USC 404e.
110 STAT. 2686 PUBLIC LAW 104–201—SEPT. 23, 1996

(d) CLERICAL AMENDMENT.—The table of contents in the first

section of such Act is amended by inserting after the item relating

to section 109 the following new items:

‘‘Sec. 120. National mission of National Imagery and Mapping Agency.

‘‘Sec. 121. Collection tasking authority.’’.

SEC. 1115. CREDITABLE CIVILIAN SERVICE FOR CAREER CONDITIONAL EMPLOYEES OF THE DEFENSE MAPPING AGENCY.

In the case of an employee of the National Imagery and Mapping Agency who, on the day before the effective date of this

title, was an employee of the Defense Mapping Agency in a careerconditional status, the continuous service of that employee as an

employee of the National Imagery and Mapping Agency on and

after such date shall be considered creditable service for the purpose

of any determination of the career status of the employee.

SEC. 1116. SAVING PROVISIONS.

(a) CONTINUING EFFECT ON LEGAL DOCUMENTS.—All orders,

determinations, rules, regulations, permits, agreements, international agreements, grants, contracts, leases, certificates, licenses,

registrations, privileges, and other administrative actions—

(1) which have been issued, made, granted, or allowed

to become effective by the President, any Federal agency or

official thereof, or by a court of competent jurisdiction, in

connection with any of the functions which are transferred

under this title or any function that the National Imagery

and Mapping Agency is authorized to perform by law, and

(2) which are in effect at the time this title takes effect,

or were final before the effective date of this title and are

to become effective on or after the effective date of this title,

shall continue in effect according to their terms until modified,

terminated, superseded, set aside, or revoked in accordance with

law by the President, the Secretary of Defense, the Director of

the National Imagery and Mapping Agency or other authorized

official, a court of competent jurisdiction, or by operation of law.

(b) PROCEEDINGS NOT AFFECTED.—This title and the amendments made by this title shall not affect any proceedings, including

notices of proposed rulemaking, or any application for any license,

permit, certificate, or financial assistance pending before an element

of the Department of Defense or Central Intelligence Agency at

the time this title takes effect, with respect to function of that

element transferred by section 1122, but such proceedings and

applications shall be continued. Orders shall be issued in such

proceedings, appeals shall be taken therefrom, and payments shall

be made pursuant to such orders, as if this title had not been

enacted, and orders issued in any such proceedings shall continue

in effect until modified, terminated, superseded, or revoked by

a duly authorized official, by a court of competent jurisdiction,

or by operation of law. Nothing in this section shall be deemed

to prohibit the discontinuance 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 title had not been enacted.

SEC. 1117. DEFINITIONS.

In this subtitle, the terms ‘‘function’’, ‘‘imagery’’, ‘‘imagery intelligence’’, and ‘‘geospatial information’’ have the meanings given

10 USC 441 note.

10 USC 441 note.

10 USC 441 note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2687

those terms in section 467 of title 10, United States Code, as

added by section 1112.

SEC. 1118. AUTHORIZATION OF APPROPRIATIONS.

Funds are authorized to be appropriated for the National

Imagery and Mapping Agency for fiscal year 1997 in amounts

and for purposes, and subject to the terms, conditions, limitations,

restrictions, and requirements, that are set forth in the Classified

Annex to this Act.

Subtitle B—Conforming Amendments and

Effective Dates

SEC. 1121. REDESIGNATION AND REPEALS.

(a) REDESIGNATION.—Chapter 23 of title 10, United States Code

(as redesignated by section 1112(a)(1)) is amended by redesignating

the sections in that chapter as sections 481 and 482, respectively.

(b) REPEAL OF SUPERSEDED LAW.—Chapter 167 of such title,

as amended by section 1112(b), is repealed.

SEC. 1122. REFERENCE AMENDMENTS.

(a) TITLE 5, UNITED STATES CODE.—Title 5, United States

Code, is amended as follows:

(1) CENTRAL IMAGERY OFFICE.—Sections 2302(a)(2)(C)(ii),

3132(a)(1)(B), 4301(1) (in clause (ii)), 4701(a)(1)(B), 5102(a)(1)

(in clause (xi)), 5342(a)(1)(L), 6339(a)(1)(E), and

7323(b)(2)(B)(i)(XIII) are amended by striking out ‘‘Central

Imagery Office’’ and inserting in lieu thereof ‘‘National Imagery

and Mapping Agency’’.

(2) DIRECTOR, CENTRAL IMAGERY OFFICE.—Section

6339(a)(2)(E) is amended by striking out ‘‘Central Imagery

Office, the Director of the Central Imagery Office’’ and inserting

in lieu thereof ‘‘National Imagery and Mapping Agency, the

Director of the National Imagery and Mapping Agency’’.

(b) OTHER LAWS.—The following provisions of law are amended

by striking out ‘‘Central Imagery Office’’ and inserting in lieu thereof

‘‘National Imagery and Mapping Agency’’:

(1) NATIONAL SECURITY ACT OF 1947.—Section 3(4)(E) of

the National Security Act of 1947 (50 U.S.C. 401a(4)(E)).

(2) ETHICS IN GOVERNMENT ACT OF 1978.—Section 105(a)

of the Ethics in Government Act of 1978 (Public Law

95–521; 5 U.S.C. App. 4).

(3) EMPLOYEE POLYGRAPH PROTECTION ACT.—Section

7(b)(2)(A)(i) of the Employee Polygraph Protection Act of 1988

(Public Law 100–347; 29 U.S.C. 2006(b)(2)(A)(i)).

(c) CROSS REFERENCE.—Section 82 of title 14, United States

Code, is amended by striking out ‘‘chapter 167’’ and inserting in

lieu thereof ‘‘subchapter II of chapter 22’’.

SEC. 1123. HEADINGS AND CLERICAL AMENDMENTS.

(a) TITLE 10, UNITED STATES CODE.—

(1) The table of chapters at the beginning of subtitle A

of title 10, United States Code, is amended—

(A) by striking out the item relating to chapter 22

and inserting in lieu thereof the following:

5 USC app. 105.
110 STAT. 2688 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘22. National Imagery and Mapping Agency ............................................... 441

‘‘23. Miscellaneous Studies and Reports ....................................................... 471’’;

and

(B) by striking out the item relating to chapter 167.

(2) The table of chapters at the beginning of part I of

such subtitle is amended by striking out the item relating

to chapter 22 and inserting in lieu thereof the following:

‘‘22. National Imagery and Mapping Agency ............................................... 441

‘‘23. Miscellaneous Studies and Reports ....................................................... 471’’;

(3) The table of chapters at the beginning of part IV of

such subtitle is amended by striking out the item relating

to chapter 167.

(4) The items in the table of sections at the beginning

of chapter 23 of title 10, United States Code (as redesignated

by section 1112(a)(1)), are revised so as to reflect the redesignations made by section 1121(a).

(b) TITLE 44, UNITED STATES CODE.—

(1) The heading of section 1336 of title 44, United States

Code, is amended to read as follows:

‘‘§ 1336. National Imagery and Mapping Agency: special

publications’’.

(2) The item relating to that section in the tables of sections

at the beginning of chapter 13 of such title is amended to

read as follows:

‘‘1336. National Imagery and Mapping Agency: special publications.’’.

SEC. 1124. EFFECTIVE DATE.

This title and the amendments made by this title shall take

effect on October 1, 1996, or the date of the enactment of this

Act, whichever is later.

TITLE XII—RESERVE FORCES

REVITALIZATION

TITLE XII—RESERVE FORCES REVITALIZATION

Sec. 1201. Short title.

Sec. 1202. Purpose.

Subtitle A—Reserve Component Structure

Sec. 1211. Reserve component commands.

Sec. 1212. Reserve component chiefs.

Sec. 1213. Review of active duty and Reserve general and flag officer authorizations.

Sec. 1214. Guard and Reserve technicians.

Subtitle B—Reserve Component Accessibility

Sec. 1231. Report to Congress on measures to improve National Guard and Reserve

ability to respond to emergencies. Sec. 1232. Report to Congress concerning tax incentives for employers of members

of Reserve components. Sec. 1233. Report to Congress concerning income insurance program for activated

Reservists.

Sec. 1234. Report to Congress concerning small business loans for members

released from Reserve service during contingency operations.

Subtitle C—Reserve Forces Sustainment

Sec. 1251. Report concerning tax deductibility of nonreimbursable expenses.

Sec. 1252. Authority to pay transient housing charges for members performing

active duty for training.

Reserve Forces

Revitalization

Act of 1996.

10 USC 193 note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2689

Sec. 1253. Sense of Congress concerning quarters allowance during service on

active duty for training. Sec. 1254. Sense of Congress concerning military leave policy.

Sec. 1255. Reserve Forces Policy Board.

Sec. 1256. Report on parity of benefits for active duty service and Reserve service.

Sec. 1257. Information on proposed funding for the Guard and Reserve components

in future-years defense programs.

SEC. 1201. SHORT TITLE.

This title may be cited as the ‘‘Reserve Forces Revitalization

Act of 1996’’.

SEC. 1202. PURPOSE.

The purpose of this title is to revise the basic statutory authorities governing the organization and administration of the reserve

components of the Armed Forces in order to recognize the realities

of reserve component partnership in the Total Force and to better

prepare the American citizen-soldier, sailor, airman, and Marine

in time of peace for duties in war.

Subtitle A—Reserve Component Structure

SEC. 1211. RESERVE COMPONENT COMMANDS.

(a) ESTABLISHMENT.—(1) Part I of subtitle E of title 10, United

States Code, is amended by inserting after chapter 1005 the following new chapter:

‘‘CHAPTER 1006—RESERVE COMPONENT COMMANDS

‘‘Sec.

‘‘10171. United States Army Reserve Command.

‘‘10172. Naval Reserve Force.

‘‘10173. Marine Forces Reserve.

‘‘10174. Air Force Reserve Command.

‘‘§ 10171. United States Army Reserve Command

‘‘(a) COMMAND.—The United States Army Reserve Command

is a separate command of the Army commanded by the Chief

of Army Reserve.

‘‘(b) CHAIN OF COMMAND.—Except as otherwise prescribed by

the Secretary of Defense, the Secretary of the Army shall prescribe

the chain of command for the United States Army Reserve Command.

‘‘(c) ASSIGNMENT OF FORCES.—The Secretary of the Army—

‘‘(1) shall assign to the United States Army Reserve Command all forces of the Army Reserve in the continental United

States other than forces assigned to the unified combatant

command for special operations forces established pursuant

to section 167 of this title; and

‘‘(2) except as otherwise directed by the Secretary of

Defense in the case of forces assigned to carry out functions

of the Secretary of the Army specified in section 3013 of this

title, shall assign all such forces of the Army Reserve to the

commander of the United States Atlantic Command.

‘‘§ 10172. Naval Reserve Force

‘‘(a) ESTABLISHMENT OF COMMAND.—The Secretary of the Navy,

with the advice and assistance of the Chief of Naval Operations,

shall establish a Naval Reserve Force. The Naval Reserve Force

shall be operated as a separate command of the Navy.

10 USC 10001

note.

10 USC 10001

note.
110 STAT. 2690 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(b) COMMANDER.—The Chief of Naval Reserve shall be the

commander of the Naval Reserve Force. The commander of the

Naval Reserve Force reports directly to the Chief of Naval Operations.

‘‘(c) ASSIGNMENT OF FORCES.—The Secretary of the Navy—

‘‘(1) shall assign to the Naval Reserve Force specified portions of the Naval Reserve other than forces assigned to the

unified combatant command for special operations forces established pursuant to section 167 of this title; and

‘‘(2) except as otherwise directed by the Secretary of

Defense in the case of forces assigned to carry out functions

of the Secretary of the Navy specified in section 5013 of this

title, shall assign to the combatant commands all such forces

assigned to the Naval Reserve Force under paragraph (1) in

the manner specified by the Secretary of Defense.

‘‘§ 10173. Marine Forces Reserve

‘‘(a) ESTABLISHMENT.—The Secretary of the Navy, with the

advice and assistance of the Commandant of the Marine Corps,

shall establish in the Marine Corps a command known as the

Marine Forces Reserve.

‘‘(b) COMMANDER.—The Marine Forces Reserve is commanded

by the Commander, Marine Forces Reserve. The Commander,

Marine Forces Reserve, reports directly to the Commandant of

the Marine Corps.

‘‘(c) ASSIGNMENT OF FORCES.—The Commandant of the Marine

Corps—

‘‘(1) shall assign to the Marine Forces Reserve the forces

of the Marine Corps Reserve stationed in the continental United

States other than forces assigned to the unified combatant

command for special operations forces established pursuant

to section 167 of this title; and

‘‘(2) except as otherwise directed by the Secretary of

Defense in the case of forces assigned to carry out functions

of the Secretary of the Navy specified in section 5013 of this

title, shall assign to the combatant commands (through the

Marine Corps component commander for each such command)

all such forces assigned to the Marine Forces Reserve under

paragraph (1) in the manner specified by the Secretary of

Defense.

‘‘§ 10174. Air Force Reserve Command

‘‘(a) ESTABLISHMENT OF COMMAND.—The Secretary of the Air

Force, with the advice and assistance of the Chief of Staff of

the Air Force, shall establish an Air Force Reserve Command.

The Air Force Reserve Command shall be operated as a separate

command of the Air Force.

‘‘(b) COMMANDER.—The Chief of Air Force Reserve is the Commander of the Air Force Reserve Command. The commander of

the Air Force Reserve Command reports directly to the Chief of

Staff of the Air Force.

‘‘(c) ASSIGNMENT OF FORCES.—The Secretary of the Air Force—

‘‘(1) shall assign to the Air Force Reserve Command all

forces of the Air Force Reserve stationed in the continental

United States other than forces assigned to the unified combatant command for special operations forces established pursuant

to section 167 of this title; and
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2691

‘‘(2) except as otherwise directed by the Secretary of

Defense in the case of forces assigned to carry out functions

of the Secretary of the Air Force specified in section 8013

of this title, shall assign to the combatant commands all such

forces assigned to the Air Force Reserve Command under paragraph (1) in the manner specified by the Secretary of Defense.’’.

(2) The tables of chapters at the beginning of part I of such

subtitle and at the beginning of such subtitle are each amended

by inserting after the item relating to chapter 1005 the following

new item:

‘‘1006. Reserve Component Commands .........................................................10171’’.

(b) CONFORMING REPEAL.—Section 903 of the National Defense

Authorization Act for Fiscal Year 1991 (10 U.S.C. 3074 note) is

repealed.

(c) IMPLEMENTATION SCHEDULE.—Implementation of chapter

1006 of title 10, United States Code, as added by subsection (a),

shall begin not later than 90 days after the date of the enactment

of this Act and shall be completed not later than one year after

such date.

SEC. 1212. RESERVE COMPONENT CHIEFS.

(a) CHIEF OF ARMY RESERVE.—Section 3038 of title 10, United

States Code, is amended by adding at the end the following new

subsections:

‘‘(d) BUDGET.—The Chief of Army Reserve is the official within

the executive part of the Department of the Army who, subject

to the authority, direction, and control of the Secretary of the

Army and the Chief of Staff, is responsible for justification and

execution of the personnel, operation and maintenance, and

construction budgets for the Army Reserve. As such, the Chief

of Army Reserve is the director and functional manager of appropriations made for the Army Reserve in those areas.

‘‘(e) FULL TIME SUPPORT PROGRAM.—The Chief of Army Reserve

manages, with respect to the Army Reserve, the personnel program

of the Department of Defense known as the Full Time Support

Program.

‘‘(f) ANNUAL REPORT.—(1) The Chief of Army Reserve shall

submit to the Secretary of Defense, through the Secretary of the

Army, an annual report on the state of the Army Reserve and

the ability of the Army Reserve to meet its missions. The report

shall be prepared in conjunction with the Chief of Staff of the

Army and may be submitted in classified and unclassified versions.

‘‘(2) The Secretary of Defense shall transmit the annual report

of the Chief of Army Reserve under paragraph (1) to Congress,

together with such comments on the report as the Secretary considers appropriate. The report shall be transmitted at the same time

each year that the annual report of the Secretary under section

113 of this title is submitted to Congress.’’.

(b) CHIEF OF NAVAL RESERVE.—(1) Chapter 513 of such title

is amended by inserting after section 5142a the following new

section:

‘‘§ 5143. Office of Naval Reserve: appointment of Chief

‘‘(a) ESTABLISHMENT OF OFFICE: CHIEF OF NAVAL RESERVE.—

There is in the executive part of the Department of the Navy,

on the staff of the Chief of Naval Operations, an Office of the

10 USC 10171

note.
110 STAT. 2692 PUBLIC LAW 104–201—SEPT. 23, 1996

Naval Reserve, which is headed by a Chief of Naval Reserve.

The Chief of Naval Reserve—

‘‘(1) is the principal adviser on Naval Reserve matters

to the Chief of Naval Operations; and

‘‘(2) is the commander of the Naval Reserve Force.

‘‘(b) APPOINTMENT.—The President, by and with the advice

and consent of the Senate, shall appoint the Chief of Naval Reserve

from officers who—

‘‘(1) have had at least 10 years of commissioned service;

‘‘(2) are in a grade above captain; and

‘‘(3) have been recommended by the Secretary of the Navy.

‘‘(c) GRADE.—(1) The Chief of Naval Reserve holds office for

a term determined by the Chief of Naval Operations, normally

four years, but may be removed for cause at any time. He is

eligible to succeed himself.

‘‘(2) The Chief of Naval Reserve, while so serving, has a grade

above rear admiral (lower half), without vacating the officer’s

permanent grade.

‘‘(d) BUDGET.—The Chief of Naval Reserve is the official within

the executive part of the Department of the Navy who, subject

to the authority, direction, and control of the Secretary of the

Navy and the Chief of Naval Operations, is responsible for preparation, justification, and execution of the personnel, operation and

maintenance, and construction budgets for the Naval Reserve. As

such, the Chief of Naval Reserve is the director and functional

manager of appropriations made for the Naval Reserve in those

areas.

‘‘(e) ANNUAL REPORT.—(1) The Chief of Naval Reserve shall

submit to the Secretary of Defense, through the Secretary of the

Navy, an annual report on the state of the Naval Reserve and

the ability of the Naval Reserve to meet its missions. The report

shall be prepared in conjunction with the Chief of Naval Operations

and may be submitted in classified and unclassified versions.

‘‘(2) The Secretary of Defense shall transmit the annual report

of the Chief of Naval Reserve under paragraph (1) to Congress,

together with such comments on the report as the Secretary considers appropriate. The report shall be transmitted at the same time

each year that the annual report of the Secretary under section

113 of this title is submitted to Congress.’’.

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

is amended by inserting after the item relating to section 5142a

the following new item:

‘‘5143. Office of Naval Reserve: appointment of Chief.’’.

(c) CHIEF OF MARINE FORCES RESERVE.—(1) Chapter 513 of

such title is amended by inserting after section 5143 (as added

by subsection (b)) the following new section:

‘‘§ 5144. Office of Marine Forces Reserve: appointment of

Commander

‘‘(a) ESTABLISHMENT OF OFFICE; COMMANDER, MARINE FORCES

RESERVE.—There is in the executive part of the Department of

the Navy an Office of the Marine Forces Reserve, which is headed

by the Commander, Marine Forces Reserve. The Commander,

Marine Forces Reserve, is the principal adviser to the Commandant

on Marine Forces Reserve matters.

President.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2693

‘‘(b) APPOINTMENT.—The President, by and with the advice

and consent of the Senate, shall appoint the Commander, Marine

Forces Reserve, from officers of the Marine Corps who—

‘‘(1) have had at least 10 years of commissioned service;

‘‘(2) are in a grade above colonel; and

‘‘(3) have been recommended by the Secretary of the Navy.

‘‘(c) TERM OF OFFICE; GRADE.—(1) The Commander, Marine

Forces Reserve, holds office for a term determined by the Commandant of the Marine Corps, normally four years, but may be

removed for cause at any time. He is eligible to succeed himself.

‘‘(2) The Commander, Marine Forces Reserve, while so serving,

has a grade above brigadier general, without vacating the officer’s

permanent grade.

‘‘(d) ANNUAL REPORT.—(1) The Commander, Marine Forces

Reserve, shall submit to the Secretary of Defense, through the

Secretary of the Navy, an annual report on the state of the Marine

Corps Reserve and the ability of the Marine Corps Reserve to

meet its missions. The report shall be prepared in conjunction

with the Commandant of the Marine Corps and may be submitted

in classified and unclassified versions.

‘‘(2) The Secretary of Defense shall transmit the annual report

of the Commander, Marine Forces Reserve, under paragraph (1)

to Congress, together with such comments on the report as the

Secretary considers appropriate. The report shall be transmitted

at the same time each year that the annual report of the Secretary

under section 113 of this title is submitted to Congress.’’.

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

is amended by inserting after the item relating to section 5143

(as added by subsection (b)) the following new item:

‘‘5144. Office of Marine Forces Reserve: appointment of Commander.’’.

(d) CHIEF OF AIR FORCE RESERVE.—Section 8038 of such title

is amended by adding at the end the following new subsections:

‘‘(d) BUDGET.—The Chief of Air Force Reserve is the official

within the executive part of the Department of the Air Force who,

subject to the authority, direction, and control of the Secretary

of the Air Force and the Chief of Staff, is responsible for preparation,

justification, and execution of the personnel, operation and maintenance, and construction budgets for the Air Force Reserve. As

such, the Chief of Air Force Reserve is the director and functional

manager of appropriations made for the Air Force Reserve in those

areas.

‘‘(e) FULL TIME SUPPORT PROGRAM.—(1) The Chief of Air Force

Reserve manages, with respect to the Air Force Reserve, the personnel program of the Department of Defense known as the Full

Time Support Program.

‘‘(f) ANNUAL REPORT.—(1) The Chief of Air Force Reserve shall

submit to the Secretary of Defense, through the Secretary of the

Air Force, an annual report on the state of the Air Force Reserve

and the ability of the Air Force Reserve to meet its missions.

The report shall be prepared in conjunction with the Chief of

Staff of the Air Force and may be submitted in classified and

unclassified versions.

‘‘(2) The Secretary of Defense shall transmit the annual report

of the Chief of Air Force Reserve under paragraph (1) to Congress,

together with such comments on the report as the Secretary considers appropriate. The report shall be transmitted at the same time

President.
110 STAT. 2694 PUBLIC LAW 104–201—SEPT. 23, 1996

each year that the annual report of the Secretary under section

113 of this title is submitted to Congress.’’.

(e) CONFORMING AMENDMENT.—Section 641(1)(B) of such title

is amended by inserting ‘‘5143, 5144,’’ after ‘‘3038,’’.

SEC. 1213. REVIEW OF ACTIVE DUTY AND RESERVE GENERAL AND

FLAG OFFICER AUTHORIZATIONS.

(a) REPORT TO CONGRESS.—Not later than six months after

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

shall submit to Congress a report containing any recommendations

of the Secretary (together with the rationale of the Secretary for

the recommendations) concerning the following:

(1) Revision of the limitations on general and flag officer

grade authorizations and distribution in grade prescribed by

sections 525, 526, and 12004 of title 10, United States Code.

(2) Statutory designation of the positions and grades of

any additional general and flag officers in the commands and

offices created by sections 1211 and 1212.

(b) MATTERS TO BE INCLUDED.—The Secretary shall include

in the report under subsection (a) the Secretary’s views on whether

current limitations referred to in subsection (a)—

(1) permit the Secretaries of the military departments,

in view of increased requirements for assignment of general

and flag officers in positions external to their organic services,

to meet adequately both internal and external requirements

for general and flag officers;

(2) adequately recognize the significantly increased role

of the reserve components in both service-specific and joint

operations; and

(3) permit the Secretaries of the military departments and

the reserve components to assign general and flag officers to

active and reserve component positions with grades commensurate with the scope of duties and responsibilities of the position.

(c) EXEMPTIONS FROM ACTIVE-DUTY CEILINGS.—(1) The Secretary shall include in the report under subsection (a) the

Secretary’s recommendations regarding the merits of exempting

from any active-duty ceiling (established by law or administrative

action) the following officers:

(A) Reserve general and flag officers assigned to positions

specified in the organizations created by this title.

(B) Reserve general and flag officers serving on active

duty, but who are excluded from the active-duty list.

(2) If the Secretary determines under paragraph (1) that any

Reserve general or flag officers should be exempt from active duty

limits, the Secretary shall include in the report under subsection

(a) the Secretary’s recommendations for—

(A) the effective management of those Reserve general

and flag officers; and

(B) revision of active duty ceilings so as to prevent an

increase in the numbers of active general and flag officers

authorizations due solely to the removal of Reserve general

and flag officers from under the active duty authorizations.

(3) If the Secretary determines under paragraph (1) that active

and reserve general officers on active duty should continue to be

managed under a common ceiling, the Secretary shall make recommendations for the appropriate apportionment of numbers for

general and flag officers among active and reserve officers.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2695

(d) RESERVE FORCES POLICY BOARD PARTICIPATION.—The Secretary of Defense shall ensure that the Reserve Forces Policy Board

participates in the internal Department of Defense process for development of the recommendations of the Secretary contained in the

report under subsection (a). If the Board submits to the Secretary

any comments or recommendations for inclusion in the report,

the Secretary shall transmit them to Congress, with the report,

in the same form as that in which they were submitted to the

Secretary.

(e) GAO REVIEW.—The Comptroller General of the United

States shall assess the criteria used by the Secretary of Defense

to develop recommendations for purposes of the report under this

section and shall submit to Congress, not later than 30 days after

the date on which the report of the Secretary under this section

is submitted, a report setting forth the Comptroller General’s

conclusions concerning the adequacy and completeness of the recommendations made by the Secretary in the report.

SEC. 1214. GUARD AND RESERVE TECHNICIANS.

Section 10216 of title 10, United States Code, as amended

by section 413, is amended—

(1) by redesignating subsections (a), (b), and (c) as subsections (b), (c), and (d), respectively;

(2) by inserting after the section heading the following

new subsection (a):

‘‘(a) IN GENERAL.—Military technicians are Federal civilian

employees hired under title 5 and title 32 who are required to

maintain dual-status as drilling reserve component members as

a condition of their Federal civilian employment. Such employees

shall be authorized and accounted for as a separate category of

dual-status civilian employees, exempt as specified in subsection

(b)(3) from any general or regulatory requirement for adjustments

in Department of Defense civilian personnel.’’; and

(3) in paragraph (3) of subsection (b), as redesignated by

paragraph (1), by striking out ‘‘in high-priority units and

organizations specified in paragraph (1)’’.

Subtitle B—Reserve Component

Accessibility

SEC. 1231. REPORT TO CONGRESS ON MEASURES TO IMPROVE

NATIONAL GUARD AND RESERVE ABILITY TO RESPOND

TO EMERGENCIES.

(a) REPORT.—Not later than six months after the date of the

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

Congress a report regarding reserve component responsiveness to

both domestic emergencies and national contingency operations.

The report shall set forth the measures taken, underway, and

projected to be taken to improve the timeliness, adequacy, and

effectiveness of reserve component responses to such emergencies

and operations.

(b) MATTERS RELATED TO RESPONSIVENESS TO DOMESTIC EMERGENCIES.—The report shall address the following:

(1) The need to expand the time period set by section

12301(b) of title 10, United States Code, which permits the

Reports.
110 STAT. 2696 PUBLIC LAW 104–201—SEPT. 23, 1996

involuntary recall at any time to active duty of units and

individuals for up to 15 days per year.

(2) The recommendations of the 1995 report of the RAND

Corporation entitled ‘‘Assessing the State and Federal Missions

of the National Guard’’, as follows:

(A) That Federal law be clarified and amended to

authorize Presidential use of the Federal reserves of all

military services for domestic emergencies and disasters

without any time constraint.

(B) That the Secretary of Defense develop and support

establishment of an appropriate national level compact for

interstate sharing of resources, including the domestic

capabilities of the national guards of the States, during

emergencies and disasters.

(C) That Federal level contingency stocks be created

to support the National Guard in domestic disasters.

(D) That Federal funding and regulatory support be

provided for Federal-State disaster emergency response

planning exercises.

(c) MATTERS RELATED TO PRESIDENTIAL RESERVE CALL-UP

AUTHORITY.—The report under this section shall specifically address

matters related to the authority of the President to activate for

service on active duty units and members of reserve components

under sections 12301, 12302, and 12304 of title 10, United States

Code, including—

(1) whether such authority is adequate to meet the full

range of reserve component missions for the 21st century,

particularly with regard to the time periods for which

such units and members may be on active duty under those

authorities and the ability to activate both units and individual

members; and

(2) whether the three-tiered set of statutory authorities

(under such sections 12301, 12302, and 12304) should be

consolidated, modified, or in part eliminated in order to facilitate current and future use of Reserve units and individual

reserve component members for a broader range of missions,

and, if so, in what manner.

(d) MATTERS RELATED TO RELEASE FROM ACTIVE DUTY.—The

report under this section shall include findings and recommendations (based upon a review of current policies and procedures)

concerning procedures for release from active duty of units and

members of reserve components who have been involuntarily called

or ordered to active duty under section 12301, 12302, or 12304

of title 10, United States Code, with specific recommendations

concerning the desirability of statutory provisions to—

(1) establish specific guidelines for when it is appropriate

(or inappropriate) to retain on active duty such reserve component units when active component units are available to perform the mission being performed by the reserve component

unit;

(2) minimize the effects of frequent mobilization of the

civilian employers, as well as the effects of frequent mobilization

on recruiting and retention in the reserve components; and

(3) address other matters relating to the needs of such

members of reserve components, their employers, and (in the

case of such members who own businesses) their employees,

while such members are on active duty.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2697

(e) RESERVE FORCES POLICY BOARD PARTICIPATION.—The Secretary of Defense shall ensure that the Reserve Forces Policy Board

participates in the internal Department of Defense process for development of the recommendations of the Secretary contained in the

report under subsection (a). If the Board submits to the Secretary

any comments or recommendations for inclusion in the report,

the Secretary shall transmit them to Congress, with the report,

in the same form as that in which they were submitted to the

Secretary.

(f) GAO REVIEW.—The Comptroller General of the United

States shall assess the criteria used by the Secretary of Defense

to develop recommendations for purposes of the report under this

section and shall submit to Congress, not later than 30 days after

the date on which the report of the Secretary under this section

is submitted, a report setting forth the Comptroller General’s

conclusions concerning the adequacy and completeness of the recommendations made by the Secretary in the report.

SEC. 1232. REPORT TO CONGRESS CONCERNING TAX INCENTIVES FOR

EMPLOYERS OF MEMBERS OF RESERVE COMPONENTS.

Not later than 180 days after the date of the enactment of

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

report setting forth a draft of legislation to provide tax incentives

to employers of members of reserve components in order to compensate employers for absences of those employees due to required

training and for absences due to performance of active duty.

SEC. 1233. REPORT TO CONGRESS CONCERNING INCOME INSURANCE

PROGRAM FOR ACTIVATED RESERVISTS.

Not later than 180 days after the date of the enactment of

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

report setting forth legislative recommendations for changes to

chapter 1214 of title 10, United States Code. Such recommendations

shall in particular provide, in the case of a mobilized member

who owns a business, income replacement for that business and

for employees of that member or business who have a loss of

income during the period of such activation attributable to the

activation of the member.

SEC. 1234. REPORT TO CONGRESS CONCERNING SMALL BUSINESS

LOANS FOR MEMBERS RELEASED FROM RESERVE SERVICE DURING CONTINGENCY OPERATIONS.

Not later than 180 days after the date of the enactment of

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

report setting forth a draft of legislation to establish a small business loan program to provide members of reserve components who

are ordered to active duty or active Federal service (other than

for training) during a contingency operation (as defined in section

101 of title 10, United States Code) low-cost loans to assist those

members in retaining or rebuilding businesses that were affected

by their service on active duty or in active Federal service.

Reports.
110 STAT. 2698 PUBLIC LAW 104–201—SEPT. 23, 1996

Subtitle C—Reserve Forces Sustainment

SEC. 1251. REPORT CONCERNING TAX DEDUCTIBILITY OF NONREIMBURSABLE EXPENSES.

Not later than 180 days after the date of the enactment of

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

report setting forth a draft of legislation to restore the tax deductibility of nonreimbursable expenses incurred by members of reserve

components in connection with military service.

SEC. 1252. AUTHORITY TO PAY TRANSIENT HOUSING CHARGES FOR

MEMBERS PERFORMING ACTIVE DUTY FOR TRAINING.

Section 404(j)(1) of title 37, United States Code, is amended

by striking out ‘‘annual training duty’’ and inserting in lieu thereof

‘‘active duty for training’’.

SEC. 1253. SENSE OF CONGRESS CONCERNING QUARTERS ALLOWANCE DURING SERVICE ON ACTIVE DUTY FOR TRAINING.

It is the sense of Congress that the United States should

continue to pay members of reserve components appropriate quarters allowances during periods of service on active duty for training.

SEC. 1254. SENSE OF CONGRESS CONCERNING MILITARY LEAVE

POLICY.

It is the sense of Congress that military leave policies in effect

as of the date of the enactment of this Act with respect to members

of the reserve components should not be changed.

SEC. 1255. RESERVE FORCES POLICY BOARD.

(a) COMMENDATION.—The Congress commends the Reserve

Forces Policy Board, created by the Armed Forces Reserve Act

of 1952 (Public Law 82–476), for its fine work in the past as

an independent source of advice to the Secretary of Defense on

all matters pertaining to the reserve components.

(b) SENSE OF CONGRESS.—It is the sense of Congress that

the Reserve Forces Policy Board and the reserve forces policy

committees for the individual branches of the Armed Forces should

continue to perform the vital role of providing the civilian leadership

of the Department of Defense with independent advice on matters

pertaining to the reserve components.

(c) ANNUAL REPORT OF RESERVE FORCES POLICY BOARD.—Section 113(c) of title 10, United States Code, is amended—

(1) by striking out paragraph (3);

(2) by redesignating paragraphs (1), (2), and (4) as subparagraphs (A), (B), and (C), respectively;

(3) by inserting ‘‘(1)’’ after ‘‘(c)’’;

(4) by inserting ‘‘and’’ at the end of subparagraph (B),

as redesignated by paragraph (2); and

(5) by adding at the end the following:

‘‘(2) At the same time that the Secretary submits the annual

report under paragraph (1), the Secretary shall transmit to the

President and Congress a separate report from the Reserve Forces

Policy Board on the reserve programs of the Department of Defense

and on any other matters that the Reserve Forces Policy Board

considers appropriate to include in the report.’’.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2699

SEC. 1256. REPORT ON PARITY OF BENEFITS FOR ACTIVE DUTY

SERVICE AND RESERVE SERVICE.

No later than six months after the date of the enactment

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

a report providing recommendations for changes in law that the

Secretary considers necessary, feasible, and affordable to reduce

the disparities in pay and benefits that occur between active component members of the Armed Forces and reserve component members

as a result of eligibility based on length of time on active duty.

SEC. 1257. INFORMATION ON PROPOSED FUNDING FOR THE GUARD

AND RESERVE COMPONENTS IN FUTURE-YEARS DEFENSE

PROGRAMS.

(a) IN GENERAL.—(1) Chapter 1013 of title 10, United States

Code, is amended by adding at the end the following new section:

‘‘§ 10543. National Guard and reserve component equipment

procurement and military construction funding:

inclusion in future-years defense program

‘‘The Secretary of Defense shall specify in each future-years

defense program submitted to Congress under section 221 of this

title the estimated expenditures and the proposed appropriations,

for each fiscal year of the period covered by that program, for

the procurement of equipment and for military construction for

each of the reserve components of the armed forces.’’.

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

is amended by adding at the end the following new item:

‘‘10543. National Guard and reserve component equipment procurement and military construction funding: inclusion in future-years defense program.’’.

(b) EFFECTIVE DATE.—Section 10543 of title 10, United States

Code, as added by subsection (a), shall apply with respect to each

future-years defense program submitted to Congress after the date

of the enactment of this Act.

TITLE XIII—ARMS CONTROL AND

RELATED MATTERS

Subtitle A—Arms Control, Counterpro- liferation Activities, and Related

Matters

Sec. 1301. Extension of counterproliferation authorities.

Sec. 1302. Limitation on retirement or dismantlement of strategic nuclear delivery

systems. Sec. 1303. Strengthening certain sanctions against nuclear proliferation activities.

Sec. 1304. Authority to pay certain expenses relating to humanitarian and civic

assistance for clearance of landmines.

Sec. 1305. Report on military capabilities of People’s Republic of China.

Sec. 1306. Presidential report regarding weapons proliferation and policies of the

People’s Republic of China. Sec. 1307. United States-People’s Republic of China Joint Defense Conversion Commission.

Sec. 1308. Sense of Congress concerning export controls.

Sec. 1309. Counterproliferation Program Review Committee.

Sec. 1310. Sense of Congress concerning assisting other countries to improve

security of fissile material. Sec. 1311. Review by Director of Central Intelligence of National Intelligence Estimate 95–19.

Subtitle B—Commission to Assess the Ballistic Missile Threat to the United

States

Sec. 1321. Establishment of Commission.

Reports.
110 STAT. 2700 PUBLIC LAW 104–201—SEPT. 23, 1996

Sec. 1322. Duties of Commission.

Sec. 1323. Report.

Sec. 1324. Powers.

Sec. 1325. Commission procedures.

Sec. 1326. Personnel matters.

Sec. 1327. Miscellaneous administrative provisions.

Sec. 1328. Funding.

Sec. 1329. Termination of the Commission.

Subtitle A—Arms Control, Counterproliferation Activities, and Related

Matters

SEC. 1301. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES.

(a) ONE-YEAR EXTENSION OF AUTHORITY.—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 (d)(3), by striking out ‘‘or’’ after ‘‘fiscal

year 1995,’’ and by inserting ‘‘, or $15,000,000 for fiscal year

1997’’ before the period at the end; and

(2) in subsection (f), by striking out ‘‘1996’’ and inserting

in lieu thereof ‘‘1997’’.

(b) FUNDING FLEXIBILITY.—Subsection (d) of such section is

further amended by adding at the end the following new paragraph:

‘‘(4)(A) In the event of a significant unforeseen development

related to the activities of the United Nations Special Commission

on Iraq for which the Secretary of Defense determines that financial

assistance under this section is required at a level which would

result in the total amount of assistance provided under this section

during the then-current fiscal year exceeding the amount specified

with respect to that year under paragraph (3), the Secretary of

Defense may provide such assistance notwithstanding the limitation

with respect to that fiscal year under paragraph (3). Funds for

such purpose may be derived from any funds available to the

Department of Defense for that fiscal year.

‘‘(B) Financial assistance may be provided under subparagraph

(A) only after the Secretary of Defense provides notice in writing

to the committees of Congress named in subsection (e)(2) of the

significant unforeseen development and of the Secretary’s intent

to provide assistance in excess of the limitation for that fiscal

year under paragraph (3). However, if the Secretary determines

in any case that under the specific circumstances of that case

advance notice is not possible, such notice shall be provided as

soon as possible and not later than 15 days after the date on

which the assistance is provided. Any notice under this subparagraph shall include a description of the development, the amount

of assistance provided or to be provided, and the source of the

funds for that assistance.’’.

SEC. 1302. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF

STRATEGIC NUCLEAR DELIVERY SYSTEMS.

(a) FUNDING LIMITATION.—Funds available to the Department

of Defense may not be obligated or expended during fiscal year

1997 for retiring or dismantling, or for preparing to retire or

dismantle, any of the following strategic nuclear delivery systems:

(1) B–52H bomber aircraft.

(2) Trident ballistic missile submarines.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2701

(3) Minuteman III intercontinental ballistic missiles.

(4) Peacekeeper intercontinental ballistic missiles.

(b) WAIVER AUTHORITY.—If the START II Treaty enters into

force during fiscal year 1996 or fiscal year 1997, the Secretary

of Defense may waive the application of the limitation under paragraphs (2), (3), and (4) of subsection (a) to Trident ballistic missile

submarines, Minuteman III intercontinental ballistic missiles, and

Peacekeeper intercontinental ballistic missiles, respectively, to the

extent that the Secretary determines necessary in order to implement the treaty.

(c) FUNDING LIMITATION ON EARLY DEACTIVATION.—(1) If the

limitation under paragraphs (2), (3), and (4) of subsection (a) ceases

to apply by reason of a waiver under subsection (b), funds available

to the Department of Defense may nevertheless not be obligated

or expended during fiscal year 1997 to implement any agreement

or understanding to undertake substantial early deactivation of

a strategic nuclear delivery system specified in subsection (b) until

30 days after the date on which the President submits to Congress

a report concerning such actions.

(2) For purposes of this subsection, a substantial early deactivation is an action during fiscal year 1997 to deactivate a substantial

number of strategic nuclear delivery systems specified in subsection

(b) by—

(A) removing nuclear warheads from those systems; or

(B) taking other steps to remove those systems from combat

status.

(3) A report under this subsection shall include the following:

(A) The text of any understanding or agreement between

the United States and the Russian Federation concerning

substantial early deactivation of strategic nuclear delivery

systems under the START II Treaty.

(B) The plan of the Department of Defense for implementing the agreement.

(C) An assessment of the Secretary of Defense of the

adequacy of the provisions contained in the agreement for monitoring and verifying compliance of Russia with the terms of

the agreement.

(D) A determination by the President as to whether the

deactivations to occur under the agreement will be carried

out in a symmetrical, reciprocal, or equivalent manner.

(E) An assessment by the President of the effect of the

proposed early deactivation on the stability of the strategic

balance and relative strategic nuclear capabilities of the United

States and the Russian Federation at various stages during

deactivation and upon completion.

(d) START II TREATY DEFINED.—For purposes of this section,

the term ‘‘START II Treaty’’ means the Treaty Between the United

States of America and the Russian Federation on Further Reduction

and Limitation of Strategic Offensive Arms, signed at Moscow on

January 3, 1993, including the following protocols and memorandum

of understanding, all such documents being integral parts of and

collectively referred to as the ‘‘START II Treaty’’ (contained in

Treaty Document 103–1):

(1) The Protocol on Procedures Governing Elimination of

Heavy ICBMs and on Procedures Governing Conversion of Silo

Launchers of Heavy ICBMs Relating to the Treaty Between

the United States of America and the Russian Federation on

President.

Reports.
110 STAT. 2702 PUBLIC LAW 104–201—SEPT. 23, 1996

Further Reduction and Limitation of Strategic Offensive Arms

(also known as the ‘‘Elimination and Conversion Protocol’’).

(2) The Protocol on Exhibitions and Inspections of Heavy

Bombers Relating to the Treaty Between the United States

and the Russian Federation on Further Reduction and Limitation of Strategic Offensive Arms (also known as the ‘‘Exhibitions

and Inspections Protocol’’).

(3) The Memorandum of Understanding on Warhead

Attribution and Heavy Bomber Data Relating to the Treaty

Between the United States of America and the Russian Federation on Further Reduction and Limitation of Strategic Offensive

Arms (also known as the ‘‘Memorandum on Attribution’’).

(e) RETENTION OF B–52H AIRCRAFT ON ACTIVE STATUS.—(1)

The Secretary of the Air Force shall maintain in active status

(including the performance of standard maintenance and upgrades)

the current fleet of B–52H bomber aircraft.

(2) For purposes of carrying out upgrades of B–52H bomber

aircraft during fiscal year 1997, the Secretary shall treat the entire

current fleet of such aircraft as aircraft expected to be maintained

in active status during the six-year period beginning on October

1, 1996.

SEC. 1303. STRENGTHENING CERTAIN SANCTIONS AGAINST NUCLEAR

PROLIFERATION ACTIVITIES.

(a) SANCTIONS.—Section 2(b)(4) of the Export-Import Bank Act

of 1945 (12 U.S.C. 635(b)(4)) is amended to read as follows:

‘‘(4)(A) If the Secretary of State determines that—

‘‘(i) any country that has agreed to International

Atomic Energy Agency nuclear safeguards materially violates, abrogates, or terminates, after October 26, 1977,

such safeguards;

‘‘(ii) any country that has entered into an agreement

for cooperation concerning the civil use of nuclear energy

with the United States materially violates, abrogates, or

terminates, after October 26, 1977, any guarantee or other

undertaking to the United States made in such agreement;

‘‘(iii) any country that is not a nuclear-weapon state

detonates, after October 26, 1977, a nuclear explosive

device;

‘‘(iv) any country willfully aids or abets, after June

29, 1994, any non-nuclear-weapon state to acquire any

such nuclear explosive device or to acquire unsafeguarded

special nuclear material; or

‘‘(v) any person knowingly aids or abets, after the date

of enactment of the National Defense Authorization Act

for Fiscal Year 1997, any non-nuclear-weapon state to

acquire any such nuclear explosive device or to acquire

unsafeguarded special nuclear material,

then the Secretary of State shall submit a report to the appropriate committees of the Congress and to the Board of Directors

of the Bank stating such determination and identifying each

country or person the Secretary determines has so acted.

‘‘(B)(i) If the Secretary of State makes a determination

under subparagraph (A)(v) with respect to a foreign person,

the Congress urges the Secretary to initiate consultations immediately with the government with primary jurisdiction over

Reports.

Effective Date.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2703

that person with respect to the imposition of the prohibition

contained in subparagraph (C).

‘‘(ii) In order that consultations with that government may

be pursued, the Board of Directors of the Bank shall delay

imposition of the prohibition contained in subparagraph (C)

for up to 90 days if the Secretary of State requests the Board

to make such delay. Following these consultations, the prohibition contained in subparagraph (C) shall apply immediately

unless the Secretary determines and certifies to the Congress

that that government has taken specific and effective actions,

including appropriate penalties, to terminate the involvement

of the foreign person in the activities described in subparagraph

(A)(v). The Board of Directors of the Bank shall delay the

imposition of the prohibition contained in subparagraph (C)

for up to an additional 90 days if the Secretary requests the

Board to make such additional delay and if the Secretary

determines and certifies to the Congress that that government

is in the process of taking the actions described in the preceding

sentence.

‘‘(iii) Not later than 90 days after making a determination

under subparagraph (A)(v), the Secretary of State shall submit

to the appropriate committees of the Congress a report on

the status of consultations with the appropriate government

under this subparagraph, and the basis for any determination

under clause (ii) that such government has taken specific corrective actions.

‘‘(C) The Board of Directors of the Bank shall not give

approval to guarantee, insure, or extend credit, or participate

in the extension of credit in support of United States exports

to any country, or to or by any person, identified in the report

described in subparagraph (A).

‘‘(D) The prohibition in subparagraph (C) shall not apply

to approvals to guarantee, insure, or extend credit, or participate in the extension of credit in support of United States

exports to a country with respect to which a determination

is made under clause (i), (ii), (iii), or (iv) of subparagraph

(A) regarding any specific event described in such clause if

the President determines and certifies in writing to the Congress not less than 45 days prior to the date of the first

approval following the determination that it is in the national

interest for the Bank to give such approvals.

‘‘(E) The prohibition in subparagraph (C) shall not apply

to approvals to guarantee, insure, or extend credit, or participate in the extension of credit in support of United States

exports to or by a person with respect to whom a determination

is made under clause (v) of subparagraph (A) regarding any

specific event described in such clause if—

‘‘(i) the Secretary of State determines and certifies

to the Congress that the appropriate government has taken

the corrective actions described in subparagraph (B)(ii);

or

‘‘(ii) the President determines and certifies in writing

to the Congress not less than 45 days prior to the date

of the first approval following the determination that—

‘‘(I) reliable information indicates that—

‘‘(aa) such person has ceased to aid or abet

any non-nuclear-weapon state to acquire any

Reports.
110 STAT. 2704 PUBLIC LAW 104–201—SEPT. 23, 1996

nuclear explosive device or to acquire

unsafeguarded special nuclear material; and

‘‘(bb) steps have been taken to ensure that

the activities described in item (aa) will not

resume; or

‘‘(II) the prohibition would have a serious adverse

effect on vital United States interests.

‘‘(F) For purposes of this paragraph:

‘‘(i) The term ‘country’ has the meaning given to ‘foreign

state’ in section 1603(a) of title 28, United States Code.

‘‘(ii) The term ‘knowingly’ is used within the meaning

of the term ‘knowing’ in section 104(h)(3) of the Foreign

Corrupt Practices Act (15 U.S.C. 78dd–2(h)(3)).

‘‘(iii) The term ‘person’ means a natural person as

well as a corporation, business association, partnership,

society, trust, any other nongovernmental entity, organization, or group, and any governmental entity operating as

a business enterprise, and any successor of any such entity.

‘‘(iv) The term ‘nuclear-weapon state’ has the meaning

given the term in Article IX(3) of the Treaty on the NonProliferation of Nuclear Weapons, signed at Washington,

London, and Moscow on July 1, 1968.

‘‘(v) The term ‘non-nuclear-weapon state’ has the

meaning given the term in section 830(5) of the Nuclear

Proliferation Prevention Act of 1994 (Public Law 103–236;

108 Stat. 521).

‘‘(vi) The term ‘nuclear explosive device’ has the

meaning given the term in section 830(4) of the Nuclear

Proliferation Prevention Act of 1994 (Public Law 103–236;

108 Stat. 521).

‘‘(vii) The term ‘unsafeguarded special nuclear material’

has the meaning given the term in section 830(8) of the

Nuclear Proliferation Prevention Act of 1994.’’.

(b) RECOMMENDATIONS TO MAKE NONPROLIFERATION LAWS

MORE EFFECTIVE.—Not later than 180 days after the date of the

enactment of this Act, the President shall submit to the Congress

his recommendations on ways to make the laws of the United

States more effective in controlling and preventing the proliferation

of weapons of mass destruction and missiles. The report shall

identify all sources of Government funds used for such nonproliferation activities.

SEC. 1304. AUTHORITY TO PAY CERTAIN EXPENSES RELATING TO

HUMANITARIAN AND CIVIC ASSISTANCE FOR CLEARANCE

OF LANDMINES.

(a) AUTHORITY TO PAY EXPENSES.—Section 401(c) of title 10,

United States Code, is amended—

(1) by redesignating paragraph (2) as paragraph (4); and

(2) by inserting after paragraph (1) the following new paragraphs:

‘‘(2) Expenses covered by paragraph (1) include the following

expenses incurred in providing assistance described in subsection

(e)(5):

‘‘(A) Travel, transportation, and subsistence expenses of

Department of Defense personnel providing such assistance.

‘‘(B) The cost of any equipment, services, or supplies

acquired for the purpose of carrying out or supporting the

President.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2705

activities described in subsection (e)(5), including any nonlethal,

individual, or small-team landmine clearing equipment or supplies that are to be transferred or otherwise furnished to a

foreign country in furtherance of the provision of assistance

under this section.

‘‘(3) The cost of equipment, services, and supplies provided

in any fiscal year under paragraph (2)(B) may not exceed

$5,000,000.’’.

(b) COORDINATION WITH OTHER LAWS.—Section 401(b) of such

title is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and

(2) by adding at the end the following:

‘‘(2) Any authority provided under any other provision of law

to provide assistance that is described in subsection (e)(5) to a

foreign country shall be carried out in accordance with, and subject

to, the limitations prescribed in this section. Any such provision

may be construed as superseding a provision of this section only

if, and to the extent that, such provision specifically refers to

this section and specifically identifies the provision of this section

that is to be considered superseded or otherwise inapplicable under

such provision.’’.

SEC. 1305. REPORT ON MILITARY CAPABILITIES OF PEOPLE’S

REPUBLIC OF CHINA.

(a) REPORT.—The Secretary of Defense shall prepare a report,

in both classified and unclassified form, on the future pattern

of military modernization of the People’s Republic of China. The

report shall address both the probable course of military-technological development in the People’s Liberation Army and the

development of Chinese military strategy and operational concepts.

(b) MATTERS TO BE INCLUDED.—The report shall include analyses and forecasts of the following:

(1) Trends that would lead the People’s Republic of China

toward advanced intelligence, surveillance, and reconnaissance

capabilities, either through a development program or by gaining access to commercial or third-party systems with militarily

significant capabilities.

(2) Efforts by the People’s Republic of China to develop

highly accurate and low-observable ballistic and cruise missiles,

and the investments in infrastructure that would allow for

production of such weapons in militarily significant quantities,

particularly in numbers sufficient to conduct attacks capable

of overwhelming projected defense capabilities in the region.

(3) Development by the People’s Republic of China of

enhanced command and control networks, particularly those

capable of battle management that would include long-range

precision strikes.

(4) Programs of the People’s Republic of China involving

unmanned aerial vehicles, particularly those with extended

ranges or loitering times.

(5) Exploitation by the People’s Republic of China of the

Global Positioning System or other similar systems, including

commercial land surveillance satellites, for significant military

purposes, including particularly for increasing the accuracy

of weapons or the situational awareness of operating forces.
110 STAT. 2706 PUBLIC LAW 104–201—SEPT. 23, 1996

(6) Development by the People’s Republic of China of

capabilities for denial of sea control, such as advanced sea

mines or improved submarine capabilities.

(7) Continued development by the People’s Republic of

China of follow-on forces, particularly those capable of rapid

air or amphibious assault.

(c) SUBMISSION OF REPORT.—The report shall be submitted

to Congress not later than February 1, 1997.

SEC. 1306. PRESIDENTIAL REPORT REGARDING WEAPONS PROLIFERATION AND POLICIES OF THE PEOPLE’S REPUBLIC

OF CHINA.

(a) FINDINGS.—The Congress finds that—

(1) the People’s Republic of China acceded to the Treaty

on the Non-Proliferation of Nuclear Weapons (hereafter in this

section referred to as the ‘‘NPT’’) on March 9, 1992;

(2) the People’s Republic of China is not a member of

the Nuclear Suppliers Group and remains the only major

nuclear supplier that continues to transfer nuclear technology,

equipment, and materials to countries that have not agreed

to the application of safeguards of the International Atomic

Energy Agency (hereafter in this section referred to as the

‘‘IAEA’’) over all of their nuclear materials;

(3) on June 30, 1995, the United States and 29 other

members of the Nuclear Suppliers Group notified the Director

General of the IAEA that the Government of each respective

country has decided that the controls of that Group should

not be defeated by the transfer of component parts;

(4) a state-owned entity in the People’s Republic of China,

the China Nuclear Energy Industry Corporation, has knowingly

transferred specially designed ring magnets to an

unsafeguarded uranium enrichment facility in the Islamic

Republic of Pakistan;

(5) ring magnets are identified on the Trigger List of the

Nuclear Suppliers Group as a component of magnetic suspension bearings which are to be exported only to countries that

have safeguards of the IAEA over all of their nuclear materials;

(6) these ring magnets could contribute significantly to

the ability of the Islamic Republic of Pakistan to produce additional unsafeguarded enriched uranium, a nuclear explosive

material;

(7) the Government of the People’s Republic of China has

transferred nuclear equipment and technology to the Islamic

Republic of Iran, despite repeated claims by the Government

of the United States that the Islamic Republic of Iran is engaged

in clandestine efforts to acquire a nuclear explosive device;

(8) representatives of the Government of the People’s

Republic of China have repeatedly assured the Government

of the United States that the People’s Republic of China would

abide by the guidelines of the Missile Technology Control

Regime (hereafter in this section referred to as the ‘‘MTCR’’);

(9) the Government of China has transferred M–11 missiles

to the Islamic Republic of Pakistan; and

(10) the M–11 missile conforms to the definition of a

nuclear-capable missile under the MTCR.

(b) SENSE OF THE CONGRESS.—It is the sense of the

Congress that—
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2707

(1) the assistance that the People’s Republic of China has

provided to the Islamic Republic of Iran and to the Islamic

Republic of Pakistan could contribute to the ability of such

countries to manufacture nuclear weapons;

(2) the recent transfer by the People’s Republic of China

of ring magnets to an unsafeguarded uranium enrichment facility in the Islamic Republic of Pakistan conflicts with China’s

obligations under Articles I and III of the NPT, as well as

the official nonproliferation policies and assurances by the People’s Republic of China and the Islamic Republic of Pakistan

with respect to the nonproliferation of nuclear weapons and

nuclear-capable missiles;

(3) the transfer of M–11 missiles from the People’s Republic

of China to the Islamic Republic of Pakistan is inconsistent

with longstanding United States Government interpretations

of assurances from the Government of the People’s Republic

of China with respect to that country’s intent to abide by

the guidelines of the MTCR;

(4) violations by the People’s Republic of China of the

standards and objectives of the MTCR and global nuclear nonproliferation regimes have jeopardized the credibility of the

MTCR and such regimes;

(5) the MTCR and global nuclear nonproliferation regimes

require collective international action to impose costs against

and to withhold benefits from any country, including the People’s Republic of China, that engages in activities that are

contrary to the objectives of those regimes;

(6) the President should explore with the governments

of other countries new opportunities for collective action in

response to activities of any country, including the People’s

Republic of China, that aid or abet the global proliferation

of weapons of mass destruction or their means of delivery;

and

(7) the President should communicate to the Government

of the People’s Republic of China the sense of the Congress

that the stability and growth of future relations between the

people, the economies, and the Governments of the United

States and the People’s Republic of China will significantly

depend upon substantive evidence of cooperation by the Government of the People’s Republic of China in efforts to halt the

global proliferation of weapons of mass destruction and their

means of delivery.

(c) REPORT.—Not later than 60 days after the date of the

enactment of this Act, the President shall submit to the Congress

a report, in both classified and unclassified form, concerning the

transfer from the People’s Republic of China to the Islamic Republic

of Pakistan of technology, equipment, or materials important to

the production of nuclear weapons and their means of delivery.

The President shall include in the report the following:

(1) The specific justification of the Secretary of State for

determining that there was not a sufficient basis for imposing

sanctions under section 2(b)(4) of the Export-Import Bank Act

of 1945, as amended by section 825 of the Nuclear Proliferation

Prevention Act of 1994, by reason of the transfer of ring

magnets and other technology, equipment, or materials from

the People’s Republic of China to the Islamic Republic of Pakistan.
110 STAT. 2708 PUBLIC LAW 104–201—SEPT. 23, 1996

(2) What commitment the United States Government is

seeking from the People’s Republic of China to ensure that

the People’s Republic of China establishes a fully effective

export control system that will prevent transfers (such as the

Pakistan sale) from taking place in the future.

(3) A description of the pledges, assurances, and other

commitments made by representatives of the Governments of

the People’s Republic of China and the Islamic Republic of

Pakistan to the Government of the United States since January

1, 1991, with respect to the nonproliferation of nuclear weapons

or nuclear-capable missiles, and an assessment of the record

of compliance with such undertakings.

(4) Whether, in light of the recent assurances provided

by the People’s Republic of China, the President intends to

make the certification and submit the report required by section

902(a)(6)(B) of the Foreign Relations Authorization Act, Fiscal

Years 1990 and 1991 (22 U.S.C. 2151 note), and make the

certification and submit the report required by Public Law

99–183, relating to the approval and implementation of the

agreement for nuclear cooperation between the United States

and the People’s Republic of China, and, if not, why not.

(5) Whether the Secretary of State considers the recent

assurances and clarifications provided by the People’s Republic

of China to have provided sufficient information to allow the

United States to determine that the People’s Republic of China

is not in violation of paragraph (2) of section 129 of the Atomic

Energy Act of 1954, as required by Public Law 99–183.

(6) If the President is unable or unwilling to make the

certifications and reports referred to in paragraph (4), a description of what the President considers to be the significance

of the clarifications and assurances provided by the People’s

Republic of China in the course of the recent discussions regarding the transfer by the People’s Republic of China of nuclearweapon-related equipment to the Islamic Republic of Pakistan.

(7) A description of the laws, regulations, and procedures

currently used by the People’s Republic of China to regulate

exports of nuclear technology, equipment, or materials, including dual-use goods, and an assessment of the effectiveness

of such arrangements.

(8) A description of the current policies and practices of

other countries in response to the transfer of nuclear and

missile technology by the People’s Republic of China to the

Islamic Republic of Pakistan and the Islamic Republic of Iran.

SEC. 1307. UNITED STATES-PEOPLE’S REPUBLIC OF CHINA JOINT

DEFENSE CONVERSION COMMISSION.

None of the funds appropriated or otherwise available for the

Department of Defense for fiscal year 1997 or any prior fiscal

year may be obligated or expended for any activity associated with

the United States-People’s Republic of China Joint Defense Conversion Commission until 15 days after the date on which the first

semiannual report required by section 1343 of the National Defense

Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110

Stat. 487) is received by Congress.

SEC. 1308. SENSE OF CONGRESS CONCERNING EXPORT CONTROLS.

(a) FINDINGS.—The Congress makes the following findings:
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2709

(1) Export controls are a part of a comprehensive response

to national security threats. The export of a United States

commodity or technology should be restricted in cases in which

the export of the commodity or technology would increase the

threat to the national security of the United States or would

be contrary to the nonproliferation goals or foreign policy

interests of the United States.

(2) The export of certain commodities and technology may

adversely affect the national security and foreign policy of

the United States by making a significant contribution to the

military potential of countries or by enhancing the capability

of countries to design, develop, test, produce, stockpile, or use

weapons of mass destruction and missile delivery systems, and

other significant military capabilities. Therefore, the administration of export controls should emphasize the control of these

exports.

(3) The acquisition of sensitive commodities and technologies by those countries and end users whose actions or

policies run counter to United States national security or foreign policy interests may enhance the military capabilities of

those countries, particularly their ability to design, develop,

test, produce, stockpile, use, and deliver nuclear, chemical,

and biological weapons and missile delivery systems, and other

significant military capabilities. This enhancement threatens

the security of the United States and its allies. The availability

to countries and end users of items that contribute to military

capabilities or the proliferation of weapons of mass destruction

is a fundamental concern of the United States and should

be eliminated through deterrence, negotiations, and other

appropriate means whenever possible.

(4) The national security of the United States depends

not only on wise foreign policies and a strong defense, but

also a vibrant national economy. To be truly effective, export

controls should be applied uniformly by all suppliers.

(5) On November 8, 1995, the President continued the

national emergency declared in Executive Order No. 12938

of November 14, 1994, ‘‘with respect to the unusual and extraordinary threat to the national security, foreign policy, and

economy of the United States posed by the proliferation of

nuclear, biological, and chemical weapons and the means of

delivering such weapons’’.

(6) A successor regime to COCOM (the Coordinating

Committee for Multilateral Export Controls) has not been established. Currently, each nation is determining independently

which dual-use military items, if any, will be controlled for

export.

(7) The United States should play a leading role in promoting transparency and responsibility with regard to the transfers

of sensitive dual-use goods and technologies.

(b) SENSE OF CONGRESS.—It is the sense of the Congress that—

(1) establishing an international export control regime,

empowered to control exports of dual-use technology, is critically important and should be a top priority for the United

States; and

(2) the United States should strongly encourage its allies

and other friendly countries to—
110 STAT. 2710 PUBLIC LAW 104–201—SEPT. 23, 1996

(A) adopt export controls that are the same or similar

to the export controls imposed by the United States on

items on the Commerce Control List;

(B) strengthen enforcement of their export

controls; and

(C) explore the use of unilateral export controls where

the possibility exists that an export could contribute to

the enhancement of military capabilities or proliferation

described in paragraphs (3) and (5) of subsection (a).

SEC. 1309. COUNTERPROLIFERATION PROGRAM REVIEW COMMITTEE.

(a) COMPOSITION OF THE COMMITTEE.—Subsection (a) of section

1605 of the National Defense Authorization Act for Fiscal Year

1994 (22 U.S.C. 2751 note) is amended by adding at the end

the following new paragraph:

‘‘(5) The Assistant to the Secretary of Defense for Nuclear

and Chemical and Biological Defense Programs shall serve as executive secretary to the committee.’’.

(b) ADDITIONAL PURPOSE OF THE COMMITTEE.—Subsection

(b)(1)(A) of such section is amended by inserting ‘‘and efforts, including efforts to stem the proliferation of weapons of mass destruction

and to negate paramilitary and terrorist threats involving weapons

of mass destruction’’ after ‘‘counterproliferation policy’’.

(c) FOUR-YEAR EXTENSION OF THE COMMITTEE.—Subsection (f)

of such section is amended by striking out ‘‘September 30, 1996’’

and inserting in lieu thereof ‘‘September 30, 2000’’.

(d) REPORTS ON COUNTERPROLIFERATION ACTIVITIES AND PRO- GRAMS.—Section 1503 of the National Defense Authorization Act

for Fiscal Year 1995 (22 U.S.C. 2751 note) is amended—

(1) in subsection (a)—

(A) by striking out ‘‘REPORT REQUIRED.—(1) Not later

than May 1, 1995 and May 1, 1996, the Secretary’’ and

inserting in lieu thereof ‘‘ANNUAL REPORT REQUIRED.— Not later than May 1 of each year, the Secretary’’; and

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

(2) by adding at the end the following new subsections:

‘‘(d) REVIEW COMMITTEE CHARTER DEFINED.—For purposes of

this section, the term ‘Review Committee charter’ means section

1605 of the National Defense Authorization Act for Fiscal Year

1994 (22 U.S.C. 2751 note).

‘‘(e) TERMINATION OF REQUIREMENT.—The final report required

under subsection (a) is the report for the year following the year

in which the Counterproliferation Program Review Committee

established under the Review Committee Charter ceases to exist.’’.

SEC. 1310. SENSE OF CONGRESS CONCERNING ASSISTING OTHER

COUNTRIES TO IMPROVE SECURITY OF FISSILE

MATERIAL.

(a) FINDINGS.—Congress finds the following:

(1) With the end of the Cold War, the world is faced

with the need to manage the dismantling of vast numbers

of nuclear weapons and the disposition of the fissile materials

that they contain.

(2) If recently agreed reductions in nuclear weapons are

fully implemented, tens of thousands of nuclear weapons,

containing a hundred tons or more of plutonium and many

hundreds of tons of highly enriched uranium, will no longer

be needed for military purposes.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2711

(3) Plutonium and highly enriched uranium are the essential ingredients of nuclear weapons.

(4) Limits on access to plutonium and highly enriched

uranium are the primary technical barrier to acquiring nuclear

weapons capability in the world today.

(5) Several kilograms of plutonium, or several times that

amount of highly enriched uranium, are sufficient to make

a nuclear weapon.

(6) Plutonium and highly enriched uranium will continue

to pose a potential threat for as long as they exist.

(7) Action is required to secure and account for plutonium

and highly enriched uranium.

(8) It is in the national interest of the United States to—

(A) minimize the risk that fissile materials could be

obtained by unauthorized parties;

(B) minimize the risk that fissile materials could be

reintroduced into the arsenals from which they came, halting or reversing the arms reduction process; and

(C) strengthen the national and international control

mechanisms and incentives designed to ensure continued

arms reductions and prevent the spread of nuclear

weapons.

(b) SENSE OF CONGRESS.—In light of the findings contained

in subsection (a), it is the sense of Congress that the United States

has a national security interest in assisting other countries to

improve the security of their stocks of fissile material.

SEC. 1311. REVIEW BY DIRECTOR OF CENTRAL INTELLIGENCE OF

NATIONAL INTELLIGENCE ESTIMATE 95–19.

(a) REVIEW.—The Director of Central Intelligence shall conduct

a review of the underlying assumptions and conclusions of the

National Intelligence Estimate designated as NIE 95–19 and

entitled ‘‘Emerging Missile Threats to North America During the

Next 15 Years’’, released by the Director in November 1995.

(b) METHODOLOGY FOR REVIEW.—The Director shall carry out

the review under subsection (a) through a panel of independent,

nongovernmental individuals with appropriate expertise and experience. Such a panel shall be convened by the Director not later

than 45 days after the date of the enactment of this Act.

(c) REPORT.—The Director shall submit the findings resulting

from the review under subsection (a), together with any comments

of the Director on the review and the findings, to Congress not

later than three months after the appointment of the Commission

under section 1321.

Subtitle B—Commission To Assess the Ballistic Missile Threat to the United States

SEC. 1321. ESTABLISHMENT OF COMMISSION.

(a) ESTABLISHMENT.—There is hereby established a commission

to be known as the ‘‘Commission To Assess the Ballistic Missile

Threat to the United States’’ (hereafter in this subtitle referred

to as the ‘‘Commission’’).

(b) COMPOSITION.—The Commission shall be composed of nine

members appointed by the Director of Central Intelligence. In selecting
110 STAT. 2712 PUBLIC LAW 104–201—SEPT. 23, 1996

individuals for appointment to the Commission, the Director

should consult with—

(1) the Speaker of the House of Representatives concerning

the appointment of three of the members of the Commission;

(2) the majority leader of the Senate concerning the

appointment of three of the members of the Commission; and

(3) the minority leader of the House of Representatives

and the minority leader of the Senate concerning the appointment of three of the members of the Commission.

(c) QUALIFICATIONS.—Members of the Commission shall be

appointed from among private United States citizens with knowledge and expertise in the political and military aspects of proliferation of ballistic missiles and the ballistic missile threat to the

United States.

(d) CHAIRMAN.—The Speaker of the House of Representatives,

after consultation with the majority leader of the Senate and the

minority leaders of the House of Representatives and the Senate,

shall designate one of the members of the Commission to serve

as chairman of the Commission.

(e) PERIOD OF APPOINTMENT; VACANCIES.—Members shall be

appointed for the life of the Commission. Any vacancy in the

Commission shall be filled in the same manner as the original

appointment.

(f) SECURITY CLEARANCES.—All members of the Commission

shall hold appropriate security clearances.

(g) INITIAL ORGANIZATION REQUIREMENTS.—(1) All appointments to the Commission shall be made not later than 45 days

after the date of the enactment of this Act.

(2) The Commission shall convene its first meeting not later

than 30 days after the date as of which all members of the Commission have been appointed, but not earlier than October 15, 1996.

SEC. 1322. DUTIES OF COMMISSION.

(a) REVIEW OF BALLISTIC MISSILE THREAT.—The Commission

shall assess the nature and magnitude of the existing and emerging

ballistic missile threat to the United States.

(b) COOPERATION FROM GOVERNMENT OFFICIALS.—In carrying

out its duties, the Commission should receive the full and timely

cooperation of the Secretary of Defense, the Director of Central

Intelligence, and any other United States Government official

responsible for providing the Commission with analyses, briefings,

and other information necessary for the fulfillment of its responsibilities.

SEC. 1323. REPORT.

The Commission shall, not later than six months after the

date of its first meeting, submit to the Congress a report on its

findings and conclusions.

SEC. 1324. POWERS.

(a) HEARINGS.—The Commission or, at its direction, any panel

or member of the Commission, may, for the purpose of carrying

out the provisions of this subtitle, hold hearings, sit and act at

times and places, take testimony, receive evidence, and administer

oaths to the extent that the Commission or any panel or member

considers advisable.

(b) INFORMATION.—The Commission may secure directly from

the Department of Defense, the Central Intelligence Agency, and
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2713

any other Federal department or agency information that the

Commission considers necessary to enable the Commission to carry

out its responsibilities under this subtitle.

SEC. 1325. COMMISSION PROCEDURES.

(a) MEETINGS.—The Commission shall meet at the call of the

Chairman.

(b) QUORUM.—(1) Five members of the Commission shall constitute a quorum other than for the purpose of holding hearings.

(2) The Commission shall act by resolution agreed to by a

majority of the members of the Commission.

(c) COMMISSION.—The Commission may establish panels composed of less than full membership of the Commission for the

purpose of carrying out the Commission’s duties. The actions of

each such panel shall be subject to the review and control of

the Commission. Any findings and determinations made by such

a panel shall not be considered the findings and determinations

of the Commission unless approved by the Commission.

(d) AUTHORITY OF INDIVIDUALS TO ACT FOR COMMISSION.— Any member or agent of the Commission may, if authorized by

the Commission, take any action which the Commission is authorized to take under this subtitle.

SEC. 1326. PERSONNEL MATTERS.

(a) PAY OF MEMBERS.—Members of the Commission shall serve

without pay by reason of their work on the Commission.

(b) TRAVEL EXPENSES.—The members of the Commission shall

be allowed travel expenses, including per diem in lieu of subsistence,

at rates authorized for employees of agencies under subchapter

I of chapter 57 of title 5, United States Code, while away from

their homes or regular places of business in the performance of

services for the Commission.

(c) STAFF.—(1) The chairman of the Commission may, without

regard to the provisions of title 5, United States Code, governing

appointments in the competitive service, appoint a staff director

and such additional personnel as may be necessary to enable the

Commission to perform its duties. The appointment of a staff director shall be subject to the approval of the Commission.

(2) The chairman of the Commission may fix the pay of the

staff director and other personnel without regard to the provisions

of chapter 51 and subchapter III of chapter 53 of title 5, United

States Code, relating to classification of positions and General

Schedule pay rates, except that the rate of pay fixed under this

paragraph for the staff director may not exceed the rate payable

for level V of the Executive Schedule under section 5316 of such

title and the rate of pay for other personnel may not exceed the

maximum rate payable for grade GS–15 of the General Schedule.

(d) DETAIL OF GOVERNMENT EMPLOYEES.—Upon request of the

chairman of the Commission, the head of any Federal department

or agency may detail, on a nonreimbursable basis, any personnel

of that department or agency to the Commission to assist it in

carrying out its duties.

(e) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERV- ICES.—The chairman of the Commission may procure temporary

and intermittent services under section 3109(b) of title 5, United

States Code, at rates for individuals which do not exceed the daily

equivalent of the annual rate of basic pay payable for level V

of the Executive Schedule under section 5316 of such title.
110 STAT. 2714 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 1327. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

(a) POSTAL AND PRINTING SERVICES.—The Commission may

use the United States mails and obtain printing and binding services in the same manner and under the same conditions as other

departments and agencies of the Federal Government.

(b) MISCELLANEOUS ADMINISTRATIVE AND SUPPORT SERVICES.—

The Director of Central Intelligence shall furnish the Commission,

on a reimbursable basis, any administrative and support services

requested by the Commission.

SEC. 1328. FUNDING.

Funds for activities of the Commission shall be provided from

amounts appropriated for the Department of Defense for operation

and maintenance for Defense-wide activities for fiscal year 1997.

Upon receipt of a written certification from the Chairman of the

Commission specifying the funds required for the activities of the

Commission, the Secretary of Defense shall promptly disburse to

the Commission, from such amounts, the funds required by the

Commission as stated in such certification.

SEC. 1329. TERMINATION OF THE COMMISSION.

The Commission shall terminate 60 days after the date of

the submission of its report under section 1323.

TITLE XIV—DEFENSE AGAINST

WEAPONS OF MASS DESTRUCTION

Sec. 1401. Short title.

Sec. 1402. Findings.

Sec. 1403. Definitions.

Subtitle A—Domestic Preparedness

Sec. 1411. Response to threats of terrorist use of weapons of mass destruction.

Sec. 1412. Emergency response assistance program.

Sec. 1413. Nuclear, chemical, and biological emergency response.

Sec. 1414. Chemical-biological emergency response team.

Sec. 1415. Testing of preparedness for emergencies involving nuclear, radiological,

chemical, and biological weapons.

Sec. 1416. Military assistance to civilian law enforcement officials in emergency

situations involving biological or chemical weapons.

Sec. 1417. Rapid response information system.

Subtitle B—Interdiction of Weapons of Mass Destruction and Related

Materials

Sec. 1421. Procurement of detection equipment United States border security.

Sec. 1422. Extension of coverage of International Emergency Economic Powers Act.

Sec. 1423. Sense of Congress concerning criminal penalties.

Sec. 1424. International border security.

Subtitle C—Control and Disposition of Weapons of Mass Destruction and

Related Materials Threatening the United States

Sec. 1431. Coverage of weapons-usable fissile materials in Cooperative Threat

Reduction programs on elimination or transportation of nuclear

weapons.

Sec. 1432. Elimination of plutonium production.

Subtitle D—Coordination of Policy and Countermeasures Against

Proliferation of Weapons of Mass Destruction

Sec. 1441. National Coordinator on Nonproliferation.

Sec. 1442. National Security Council Committee on Nonproliferation.

Sec. 1443. Comprehensive preparedness program.

Sec. 1444. Termination.

Defense Against

Weapons of Mass

Destruction Act

of 1996.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2715

Subtitle E—Miscellaneous

Sec. 1451. Sense of Congress concerning contracting policy.

Sec. 1452. Transfers of allocations among Cooperative Threat Reduction programs.

Sec. 1453. Sense of Congress concerning assistance to states of former Soviet

Union.

Sec. 1454. Purchase of low-enriched uranium derived from Russian highly enriched

uranium.

Sec. 1455. Sense of Congress concerning purchase, packaging, and transportation of

fissile materials at risk of theft.

SEC. 1401. SHORT TITLE.

This title may be cited as the ‘‘Defense Against Weapons of

Mass Destruction Act of 1996’’.

SEC. 1402. FINDINGS.

Congress makes the following findings:

(1) Weapons of mass destruction and related materials

and technologies are increasingly available from worldwide

sources. Technical information relating to such weapons is readily available on the Internet, and raw materials for chemical,

biological, and radiological weapons are widely available for

legitimate commercial purposes.

(2) The former Soviet Union produced and maintained a

vast array of nuclear, biological, and chemical weapons of mass

destruction.

(3) Many of the states of the former Soviet Union retain

the facilities, materials, and technologies capable of producing

additional quantities of weapons of mass destruction.

(4) The disintegration of the former Soviet Union was

accompanied by disruptions of command and control systems,

deficiencies in accountability for weapons, weapons-related

materials and technologies, economic hardships, and significant

gaps in border control among the states of the former Soviet

Union. The problems of organized crime and corruption in

the states of the former Soviet Union increase the potential

for proliferation of nuclear, radiological, biological, and chemical

weapons and related materials.

(5) The conditions described in paragraph (4) have

substantially increased the ability of potentially hostile nations,

terrorist groups, and individuals to acquire weapons of mass

destruction and related materials and technologies from within

the states of the former Soviet Union and from unemployed

scientists who worked on those programs.

(6) As a result of such conditions, the capability of potentially hostile nations and terrorist groups to acquire nuclear,

radiological, biological, and chemical weapons is greater than

at any time in history.

(7) The President has identified North Korea, Iraq, Iran,

and Libya as hostile states which already possess some weapons

of mass destruction and are developing others.

(8) The acquisition or the development and use of weapons

of mass destruction is well within the capability of many

extremist and terrorist movements, acting independently or

as proxies for foreign states.

(9) Foreign states can transfer weapons to or otherwise

aid extremist and terrorist movements indirectly and with plausible deniability.

50 USC 2301

note.

50 USC 2301

note.
110 STAT. 2716 PUBLIC LAW 104–201—SEPT. 23, 1996

(10) Terrorist groups have already conducted chemical

attacks against civilian targets in the United States and Japan,

and a radiological attack in Russia.

(11) The potential for the national security of the United

States to be threatened by nuclear, radiological, chemical, or

biological terrorism must be taken seriously.

(12) There is a significant and growing threat of attack

by weapons of mass destruction on targets that are not military

targets in the usual sense of the term.

(13) Concomitantly, the threat posed to the citizens of

the United States by nuclear, radiological, biological, and chemical weapons delivered by unconventional means is significant

and growing.

(14) Mass terror may result from terrorist incidents involving nuclear, radiological, biological, or chemical materials.

(15) Facilities required for production of radiological,

biological, and chemical weapons are much smaller and harder

to detect than nuclear weapons facilities, and biological and

chemical weapons can be deployed by alternative delivery

means other than long-range ballistic missiles.

(16) Covert or unconventional means of delivery of nuclear,

radiological, biological, and chemical weapons include cargo

ships, passenger aircraft, commercial and private vehicles and

vessels, and commercial cargo shipments routed through

multiple destinations.

(17) Traditional arms control efforts assume large state

efforts with detectable manufacturing programs and weapons

production programs, but are ineffective in monitoring and

controlling smaller, though potentially more dangerous,

unconventional proliferation efforts.

(18) Conventional counterproliferation efforts would do

little to detect or prevent the rapid development of a capability

to suddenly manufacture several hundred chemical or biological

weapons with nothing but commercial supplies and equipment.

(19) The United States lacks adequate planning and

countermeasures to address the threat of nuclear, radiological,

biological, and chemical terrorism.

(20) The Department of Energy has established a Nuclear

Emergency Response Team which is available in case of nuclear

or radiological emergencies, but no comparable units exist to

deal with emergencies involving biological or chemical weapons

or related materials.

(21) State and local emergency response personnel are not

adequately prepared or trained for incidents involving nuclear,

radiological, biological, or chemical materials.

(22) Exercises of the Federal, State, and local response

to nuclear, radiological, biological, or chemical terrorism have

revealed serious deficiencies in preparedness and severe problems of coordination.

(23) The development of, and allocation of responsibilities

for, effective countermeasures to nuclear, radiological,

biological, or chemical terrorism in the United States requires

well-coordinated participation of many Federal agencies, and

careful planning by the Federal Government and State and

local governments.

(24) Training and exercises can significantly improve the

preparedness of State and local emergency response personnel
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2717

for emergencies involving nuclear, radiological, biological, or

chemical weapons or related materials.

(25) Sharing of the expertise and capabilities of the Department of Defense, which traditionally has provided assistance

to Federal, State, and local officials in neutralizing, dismantling, and disposing of explosive ordnance, as well as radiological, biological, and chemical materials, can be a vital

contribution to the development and deployment of countermeasures against nuclear, biological, and chemical weapons

of mass destruction.

(26) The United States lacks effective policy coordination

regarding the threat posed by the proliferation of weapons

of mass destruction.

SEC. 1403. DEFINITIONS.

In this title:

(1) The term ‘‘weapon of mass destruction’’ means any

weapon or device that is intended, or has the capability, to

cause death or serious bodily injury to a significant number

of people through the release, dissemination, or impact of—

(A) toxic or poisonous chemicals or their precursors;

(B) a disease organism; or

(C) radiation or radioactivity.

(2) The term ‘‘independent states of the former Soviet

Union’’ has the meaning given that term in section 3 of the

FREEDOM Support Act (22 U.S.C. 5801).

(3) The term ‘‘highly enriched uranium’’ means uranium

enriched to 20 percent or more in the isotope U–235.

Subtitle A—Domestic Preparedness

SEC. 1411. RESPONSE TO THREATS OF TERRORIST USE OF WEAPONS

OF MASS DESTRUCTION.

(a) ENHANCED RESPONSE CAPABILITY.—In light of the potential

for terrorist use of weapons of mass destruction against the United

States, the President shall take immediate action—

(1) to enhance the capability of the Federal Government

to prevent and respond to terrorist incidents involving weapons

of mass destruction; and

(2) to provide enhanced support to improve the capabilities

of State and local emergency response agencies to prevent

and respond to such incidents at both the national and the

local level.

(b) REPORT REQUIRED.—Not later than January 31, 1997, the

President shall transmit to Congress a report containing—

(1) an assessment of the capabilities of the Federal Government to prevent and respond to terrorist incidents involving

weapons of mass destruction and to support State and local

prevention and response efforts;

(2) requirements for improvements in those capabilities; and

(3) the measures that should be taken to achieve such

improvements, including additional resources and legislative

authorities that would be required.

President.

50 USC 2311.

50 USC 2302.
110 STAT. 2718 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 1412. EMERGENCY RESPONSE ASSISTANCE PROGRAM.

(a) PROGRAM REQUIRED.—(1) The Secretary of Defense shall

carry out a program to provide civilian personnel of Federal, State,

and local agencies with training and expert advice regarding emergency responses to a use or threatened use of a weapon of mass

destruction or related materials.

(2) The President may designate the head of an agency other

than the Department of Defense to assume the responsibility for

carrying out the program on or after October 1, 1999, and relieve

the Secretary of Defense of that responsibility upon the assumption

of the responsibility by the designated official.

(3) In this section, the official responsible for carrying out

the program is referred to as the ‘‘lead official’’.

(b) COORDINATION.—In carrying out the program, the lead official shall coordinate with each of the following officials who is

not serving as the lead official:

(1) The Director of the Federal Emergency Management

Agency.

(2) The Secretary of Energy.

(3) The Secretary of Defense.

(4) The heads of any other Federal, State, and local government agencies that have an expertise or responsibilities

relevant to emergency responses described in subsection (a)(1).

(c) ELIGIBLE PARTICIPANTS.—The civilian personnel eligible to

receive assistance under the program are civilian personnel of Federal, State, and local agencies who have emergency preparedness

responsibilities.

(d) INVOLVEMENT OF OTHER FEDERAL AGENCIES.—(1) The lead

official may use personnel and capabilities of Federal agencies

outside the agency of the lead official to provide training and

expert advice under the program.

(2)(A) Personnel used under paragraph (1) shall be personnel

who have special skills relevant to the particular assistance that

the personnel are to provide.

(B) Capabilities used under paragraph (1) shall be capabilities

that are especially relevant to the particular assistance for which

the capabilities are used.

(3) If the lead official is not the Secretary of Defense, and

requests assistance from the Department of Defense that, in the

judgment of the Secretary of Defense would affect military readiness

or adversely affect national security, the Secretary of Defense may

appeal the request for Department of Defense assistance by the

lead official to the President.

(e) AVAILABLE ASSISTANCE.—Assistance available under this

program shall include the following:

(1) Training in the use, operation, and maintenance of

equipment for—

(A) detecting a chemical or biological agent or nuclear

radiation;

(B) monitoring the presence of such an agent or

radiation;

(C) protecting emergency personnel and the

public; and

(D) decontamination.

(2) Establishment of a designated telephonic link (commonly referred to as a ‘‘hot line’’) to a designated source of

relevant data and expert advice for the use of State or local

50 USC 2312.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2719

officials responding to emergencies involving a weapon of mass

destruction or related materials.

(3) Use of the National Guard and other reserve components for purposes authorized under this section that are specified by the lead official (with the concurrence of the Secretary

of Defense if the Secretary is not the lead official).

(4) Loan of appropriate equipment.

(f) LIMITATIONS ON DEPARTMENT OF DEFENSE ASSISTANCE TO

LAW ENFORCEMENT AGENCIES.—Assistance provided by the Department of Defense to law enforcement agencies under this section

shall be provided under the authority of, and subject to the restrictions provided in, chapter 18 of title 10, United States Code.

(g) ADMINISTRATION OF DEPARTMENT OF DEFENSE ASSISTANCE.—The Secretary of Defense shall designate an official within

the Department of Defense to serve as the executive agent of

the Secretary for the coordination of the provision of Department

of Defense assistance under this section.

(h) FUNDING.—(1) Of the total amount authorized to be appropriated under section 301, $35,000,000 is available for the program

required under this section.

(2) Of the amount available for the program pursuant to paragraph (1), $10,500,000 is available for use by the Secretary of

Defense to assist the Secretary of Health and Human Services

in the establishment of metropolitan emergency medical response

teams (commonly referred to as ‘‘Metropolitan Medical Strike Force

Teams’’) to provide medical services that are necessary or potentially

necessary by reason of a use or threatened use of a weapon of

mass destruction.

(3) The amount available for the program under paragraph

(1) is in addition to any other amounts authorized to be appropriated

for the program under section 301.

SEC. 1413. NUCLEAR, CHEMICAL, AND BIOLOGICAL EMERGENCY

RESPONSE.

(a) DEPARTMENT OF DEFENSE.—The Secretary of Defense shall

designate an official within the Department of Defense as the

executive agent for—

(1) the coordination of Department of Defense assistance

to Federal, State, and local officials in responding to threats

involving biological or chemical weapons or related materials

or technologies, including assistance in identifying, neutralizing, dismantling, and disposing of biological and chemical

weapons and related materials and technologies; and

(2) the coordination of Department of Defense assistance

to the Department of Energy in carrying out that department’s

responsibilities under subsection (b).

(b) DEPARTMENT OF ENERGY.—The Secretary of Energy shall

designate an official within the Department of Energy as the executive agent for—

(1) the coordination of Department of Energy assistance

to Federal, State, and local officials in responding to threats

involving nuclear, chemical, and biological weapons or related

materials or technologies, including assistance in identifying,

neutralizing, dismantling, and disposing of nuclear weapons

and related materials and technologies; and

50 USC 2313.
110 STAT. 2720 PUBLIC LAW 104–201—SEPT. 23, 1996

(2) the coordination of Department of Energy assistance

to the Department of Defense in carrying out that department’s

responsibilities under subsection (a).

(c) FUNDING.—Of the total amount authorized to be appro- priated under section 301, $15,000,000 is available for providing

assistance described in subsection (a).

SEC. 1414. CHEMICAL-BIOLOGICAL EMERGENCY RESPONSE TEAM.

(a) DEPARTMENT OF DEFENSE RAPID RESPONSE TEAM.—The Secretary of Defense shall develop and maintain at least one domestic

terrorism rapid response team composed of members of the Armed

Forces and employees of the Department of Defense who are capable

of aiding Federal, State, and local officials in the detection, neutralization, containment, dismantlement, and disposal of weapons of

mass destruction containing chemical, biological, or related materials.

(b) ADDITION TO FEDERAL RESPONSE PLAN.—Not later than

December 31, 1997, the Director of the Federal Emergency Management Agency shall develop and incorporate into existing Federal

emergency response plans and programs prepared under section

611(b) of the Robert T. Stafford Disaster Relief and Emergency

Assistance Act (42 U.S.C. 5196(b)) guidance on the use and deployment of the rapid response teams established under this section

to respond to emergencies involving weapons of mass destruction.

The Director shall carry out this subsection in consultation with

the Secretary of Defense and the heads of other Federal agencies

involved with the emergency response plans.

SEC. 1415. TESTING OF PREPAREDNESS FOR EMERGENCIES

INVOLVING NUCLEAR, RADIOLOGICAL, CHEMICAL, AND

BIOLOGICAL WEAPONS.

(a) EMERGENCIES INVOLVING CHEMICAL OR BIOLOGICAL

WEAPONS.—(1) The Secretary of Defense shall develop and carry

out a program for testing and improving the responses of Federal,

State, and local agencies to emergencies involving biological weapons and related materials and emergencies involving chemical

weapons and related materials.

(2) The program shall include exercises to be carried out during

each of five successive fiscal years beginning with fiscal year 1997.

(3) In developing and carrying out the program, the Secretary

shall coordinate with the Director of the Federal Bureau of Investigation, the Director of the Federal Emergency Management

Agency, the Secretary of Energy, and the heads of any other Federal, State, and local government agencies that have an expertise

or responsibilities relevant to emergencies described in paragraph

(1).

(b) EMERGENCIES INVOLVING NUCLEAR AND RADIOLOGICAL

WEAPONS.—(1) The Secretary of Energy shall develop and carry

out a program for testing and improving the responses of Federal,

State, and local agencies to emergencies involving nuclear and

radiological weapons and related materials.

(2) The program shall include exercises to be carried out during

each of five successive fiscal years beginning with fiscal year 1997.

(3) In developing and carrying out the program, the Secretary

shall coordinate with the Director of the Federal Bureau of Investigation, the Director of the Federal Emergency Management

Agency, the Secretary of Defense, and the heads of any other

Federal, State, and local government agencies that have an expertise

50 USC 2315.

50 USC 2314.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2721

or responsibilities relevant to emergencies described in paragraph (1).

(c) ANNUAL REVISIONS OF PROGRAMS.—The official responsible

for carrying out a program developed under subsection (a) or (b)

shall revise the program not later than June 1 in each fiscal

year covered by the program. The revisions shall include adjustments that the official determines necessary or appropriate on

the basis of the lessons learned from the exercise or exercises

carried out under the program in the fiscal year, including lessons

learned regarding coordination problems and equipment deficiencies.

(d) OPTION TO TRANSFER RESPONSIBILITY.—(1) The President

may designate the head of an agency outside the Department of

Defense to assume the responsibility for carrying out the program

developed under subsection (a) beginning on or after October 1,

1999, and relieve the Secretary of Defense of that responsibility

upon the assumption of the responsibility by the designated official.

(2) The President may designate the head of an agency outside

the Department of Energy to assume the responsibility for carrying

out the program developed under subsection (b) beginning on or

after October 1, 1999, and relieve the Secretary of Energy of that

responsibility upon the assumption of the responsibility by the

designated official.

(e) FUNDING.—Of the total amount authorized to be

appropriated under section 301, $15,000,000 is available for the

development and execution of the programs required by this section,

including the participation of State and local agencies in exercises

carried out under the programs.

SEC. 1416. MILITARY ASSISTANCE TO CIVILIAN LAW ENFORCEMENT

OFFICIALS IN EMERGENCY SITUATIONS INVOLVING

BIOLOGICAL OR CHEMICAL WEAPONS.

(a) ASSISTANCE AUTHORIZED.—(1) Chapter 18 of title 10, United

States Code, is amended by adding at the end the following new

section:

‘‘§ 382. Emergency situations involving chemical or

biological weapons of mass destruction

‘‘(a) IN GENERAL.— The Secretary of Defense, upon the request

of the Attorney General, may provide assistance in support of

Department of Justice activities relating to the enforcement of

section 175 or 2332c of title 18 during an emergency situation

involving a biological or chemical weapon of mass destruction.

Department of Defense resources, including personnel of the Department of Defense, may be used to provide such assistance if—

‘‘(1) the Secretary of Defense and the Attorney General

jointly determine that an emergency situation exists; and

‘‘(2) the Secretary of Defense determines that the provision

of such assistance will not adversely affect the military

preparedness of the United States.

‘‘(b) EMERGENCY SITUATIONS COVERED.—In this section, the

term ‘emergency situation involving a biological or chemical weapon

of mass destruction’ means a circumstance involving a biological

or chemical weapon of mass destruction—

‘‘(1) that poses a serious threat to the interests of the

United States; and

‘‘(2) in which—
110 STAT. 2722 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(A) civilian expertise and capabilities are not readily

available to provide the required assistance to counter the

threat immediately posed by the weapon involved;

‘‘(B) special capabilities and expertise of the Department of Defense are necessary and critical to counter the

threat posed by the weapon involved; and

‘‘(C) enforcement of section 175 or 2332c of title 18

would be seriously impaired if the Department of Defense

assistance were not provided.

‘‘(c) FORMS OF ASSISTANCE.—The assistance referred to in subsection (a) includes the operation of equipment (including equipment

made available under section 372 of this title) to monitor, contain,

disable, or dispose of the weapon involved or elements of the

weapon.

‘‘(d) REGULATIONS.—(1) The Secretary of Defense and the Attorney General shall jointly prescribe regulations concerning the types

of assistance that may be provided under this section. Such regulations shall also describe the actions that Department of Defense

personnel may take in circumstances incident to the provision of

assistance under this section.

‘‘(2)(A) Except as provided in subparagraph (B), the regulations

may not authorize the following actions:

‘‘(i) Arrest.

‘‘(ii) Any direct participation in conducting a search for

or seizure of evidence related to a violation of section

175 or 2332c of title 18.

‘‘(iii) Any direct participation in the collection of intelligence

for law enforcement purposes.

‘‘(B) The regulations may authorize an action described in

subparagraph (A) to be taken under the following conditions:

‘‘(i) The action is considered necessary for the immediate

protection of human life, and civilian law enforcement officials

are not capable of taking the action.

‘‘(ii) The action is otherwise authorized under subsection

(c) or under otherwise applicable law.

‘‘(e) REIMBURSEMENTS.—The Secretary of Defense shall require

reimbursement as a condition for providing assistance under this

section to the extent required under section 377 of this title.

‘‘(f) DELEGATIONS OF AUTHORITY.—(1) Except to the extent

otherwise provided by the Secretary of Defense, the Deputy Secretary of Defense may exercise the authority of the Secretary of

Defense under this section. The Secretary of Defense may delegate

the Secretary’s authority under this section only to an Under Secretary of Defense or an Assistant Secretary of Defense and only

if the Under Secretary or Assistant Secretary to whom delegated

has been designated by the Secretary to act for, and to exercise

the general powers of, the Secretary.

‘‘(2) Except to the extent otherwise provided by the Attorney

General, the Deputy Attorney General may exercise the authority

of the Attorney General under this section. The Attorney General

may delegate that authority only to the Associate Attorney General

or an Assistant Attorney General and only if the Associate Attorney

General or Assistant Attorney General to whom delegated has

been designated by the Attorney General to act for, and to exercise

the general powers of, the Attorney General.

‘‘(g) RELATIONSHIP TO OTHER AUTHORITY.—Nothing in this section shall be construed to restrict any executive branch authority
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2723

regarding use of members of the armed forces or equipment of

the Department of Defense that was in effect before the date of

the enactment of the National Defense Authorization Act for Fiscal

Year 1997.’’.

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

is amended by adding at the end the following new item:

‘‘382. Emergency situations involving chemical or biological weapons of mass

destruction.’’.

(b) CONFORMING AMENDMENT TO CONDITION FOR PROVIDING

EQUIPMENT AND FACILITIES.—Section 372(b)(1) of title 10, United

States Code, is amended by adding at the end the following new

sentence: ‘‘The requirement for a determination that an item is

not reasonably available from another source does not apply to

assistance provided under section 382 of this title pursuant to

a request of the Attorney General for the assistance.’’.

(c) CONFORMING AMENDMENTS RELATING TO AUTHORITY TO

REQUEST ASSISTANCE.—(1)(A) Chapter 10 of title 18, United States

Code, is amended by inserting after section 175 the following new

section:

‘‘§ 175a. Requests for military assistance to enforce prohibition in certain emergencies

‘‘The Attorney General may request the Secretary of Defense

to provide assistance under section 382 of title 10 in support of

Department of Justice activities relating to the enforcement of

section 175 of this title in an emergency situation involving a

biological weapon of mass destruction. The authority to make such

a request may be exercised by another official of the Department

of Justice in accordance with section 382(f)(2) of title 10.’’.

(B) The table of sections at the beginning of such chapter

is amended by inserting after the item relating to section 175

the following new item:

‘‘175a. Requests for military assistance to enforce prohibition in certain emergencies.’’.

(2)(A) The chapter 133B of title 18, United States Code, that

relates to terrorism is amended by inserting after section 2332c

the following new section:

‘‘§ 2332d. Requests for military assistance to enforce prohibition in certain emergencies

‘‘The Attorney General may request the Secretary of Defense

to provide assistance under section 382 of title 10 in support of

Department of Justice activities relating to the enforcement of

section 2332c of this title during an emergency situation involving

a chemical weapon of mass destruction. The authority to make

such a request may be exercised by another official of the Department of Justice in accordance with section 382(f)(2) of title 10.’’.

(B) The table of sections at the beginning of such chapter

is amended by inserting after the item relating to section 2332c

the following new item:

‘‘2332d. Requests for military assistance to enforce prohibition in certain emergencies.’’.

(d) CIVILIAN EXPERTISE.—The President shall take reasonable

measures to reduce the reliance of civilian law enforcement officials

on Department of Defense resources to counter the threat posed

by the use or potential use of biological and chemical weapons

President.

50 USC 2316.
110 STAT. 2724 PUBLIC LAW 104–201—SEPT. 23, 1996

of mass destruction within the United States. The measures shall

include—

(1) actions to increase civilian law enforcement expertise

to counter such a threat; and

(2) actions to improve coordination between civilian law

enforcement officials and other civilian sources of expertise,

within and outside the Federal Government, to counter such

a threat.

(e) REPORTS.—The President shall submit to Congress the following reports:

(1) Not later than 90 days after the date of the enactment

of this Act, a report describing the respective policy functions

and operational roles of Federal agencies in countering the

threat posed by the use or potential use of biological and

chemical weapons of mass destruction within the United States.

(2) Not later than one year after such date, a report

describing—

(A) the actions planned to be taken to carry out subsection (d); and

(B) the costs of such actions.

(3) Not later than three years after such date, a report

updating the information provided in the reports submitted

pursuant to paragraphs (1) and (2), including the measures

taken pursuant to subsection (d).

SEC. 1417. RAPID RESPONSE INFORMATION SYSTEM.

(a) INVENTORY OF RAPID RESPONSE ASSETS.—(1) The head of

each Federal Response Plan agency shall develop and maintain

an inventory of physical equipment and assets under the jurisdiction

of that agency that could be made available to aid State and

local officials in search and rescue and other disaster management

and mitigation efforts associated with an emergency involving weapons of mass destruction. The agency head shall submit a copy

of the inventory, and any updates of the inventory, to the Director

of the Federal Emergency Management Agency for inclusion in

the master inventory required under subsection (b).

(2) Each inventory shall include a separate listing of any equipment that is excess to the needs of that agency and could be

considered for disposal as excess or surplus property for use for

response and training with regard to emergencies involving weapons

of mass destruction.

(b) MASTER INVENTORY.—The Director of the Federal Emergency Management Agency shall compile and maintain a

comprehensive listing of all inventories prepared under subsection

(a). The first such master list shall be completed not later than

December 31, 1997, and shall be updated annually thereafter.

(c) ADDITION TO FEDERAL RESPONSE PLAN.—Not later than

December 31, 1997, the Director of the Federal Emergency Management Agency shall develop and incorporate into existing Federal

emergency response plans and programs prepared under section

611(b) of the Robert T. Stafford Disaster Relief and Emergency

Assistance Act (42 U.S.C. 5196(b)) guidance on accessing and using

the physical equipment and assets included in the master list

developed under subsection to respond to emergencies involving

weapons of mass destruction.

(d) DATABASE ON CHEMICAL AND BIOLOGICAL MATERIALS.—The

Director of the Federal Emergency Management Agency, in consultation

50 USC 2317.

50 USC 2316.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2725

with the Secretary of Defense, shall prepare a database

on chemical and biological agents and munitions characteristics

and safety precautions for civilian use. The initial design and compilation of the database shall be completed not later than December

31, 1997.

(e) ACCESS TO INVENTORY AND DATABASE.—The Director of

the Federal Emergency Management Agency shall design and maintain a system to give Federal, State, and local officials access

to the inventory listing and database maintained under this section

in the event of an emergency involving weapons of mass destruction

or to prepare and train to respond to such an emergency. The

system shall include a secure but accessible emergency response

hotline to access information and request assistance.

Subtitle B—Interdiction of Weapons of

Mass Destruction and Related Materials

SEC. 1421. PROCUREMENT OF DETECTION EQUIPMENT UNITED

STATES BORDER SECURITY.

Of the amount authorized to be appropriated by section 301,

$15,000,000 is available for the procurement of—

(1) equipment capable of detecting the movement of weapons of mass destruction and related materials into the United

States;

(2) equipment capable of interdicting the movement of

weapons of mass destruction and related materials into the

United States; and

(3) materials and technologies related to use of equipment

described in paragraph (1) or (2).

SEC. 1422. EXTENSION OF COVERAGE OF INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT.

Section 206 of the International Emergency Economic Powers

Act (50 U.S.C. 1705) is amended—

(1) in subsection (a), by inserting ‘‘, or attempts to violate,’’

after ‘‘violates’’; and

(2) in subsection (b), by inserting ‘‘, or willfully attempts

to violate,’’ after ‘‘violates’’.

SEC. 1423. SENSE OF CONGRESS CONCERNING CRIMINAL PENALTIES.

(a) SENSE OF CONGRESS CONCERNING INADEQUACY OF SENTENCING GUIDELINES.—It is the sense of Congress that the sentencing

guidelines prescribed by the United States Sentencing Commission

for the offenses of importation, attempted importation, exportation,

and attempted exportation of nuclear, biological, and chemical weapons materials constitute inadequate punishment for such offenses.

(b) URGING OF REVISON TO GUIDELINES.—Congress urges the

United States Sentencing Commission to revise the relevant

sentencing guidelines to provide for increased penalties for offenses

relating to importation, attempted importation, exportation, and

attempted exportation of nuclear, biological, or chemical weapons

or related materials or technologies under the following provisions

of law:

(1) Section 11 of the Export Administration Act of 1979

(50 U.S.C. App. 2410).

50 USC 2332.

50 USC 2331.
110 STAT. 2726 PUBLIC LAW 104–201—SEPT. 23, 1996

(2) Sections 38 and 40 of the Arms Export Control Act

(22 U.S.C. 2778 and 2780).

(3) The International Emergency Economic Powers Act

(50 U.S.C. 1701 et seq.).

(4) Section 309(c) of the Nuclear Non-Proliferation Act of

1978 (22 U.S.C. 2156a(c)).

SEC. 1424. INTERNATIONAL BORDER SECURITY.

(a) SECRETARY OF DEFENSE RESPONSIBILITY.—The Secretary

of Defense, in consultation and cooperation with the Commissioner

of Customs, shall carry out programs for assisting customs officials

and border guard officials in the independent states of the former

Soviet Union, the Baltic states, and other countries of Eastern

Europe in preventing unauthorized transfer and transportation of

nuclear, biological, and chemical weapons and related materials.

Training, expert advice, maintenance of equipment, loan of equipment, and audits may be provided under or in connection with

the programs.

(b) FUNDING.—Of the total amount authorized to be appropriated by section 301, $15,000,000 is available for carrying out

the programs referred to in subsection (a).

(c) ASSISTANCE TO STATES OF THE FORMER SOVIET UNION.—

Assistance under programs referred to in subsection (a) may

(notwithstanding any provision of law prohibiting the extension

of foreign assistance to any of the newly independent states of

the former Soviet Union) be extended to include an independent

state of the former Soviet Union if the President certifies to Congress that it is in the national interest of the United States to

extend assistance under this section to that state.

Subtitle C—Control and Disposition of

Weapons of Mass Destruction and

Related Materials Threatening the

United States

SEC. 1431. COVERAGE OF WEAPONS-USABLE FISSILE MATERIALS IN

COOPERATIVE THREAT REDUCTION PROGRAMS ON

ELIMINATION OR TRANSPORTATION OF NUCLEAR

WEAPONS.

Section 1201(b)(1) of the National Defense Authorization Act

for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 469; 22 U.S.C.

5955 note) is amended by inserting ‘‘, fissile material suitable

for use in nuclear weapons,’’ after ‘‘other weapons’’.

SEC. 1432. ELIMINATION OF PLUTONIUM PRODUCTION.

(a) REPLACEMENT PROGRAM.—The Secretary of Energy, in consultation with the Secretary of Defense, shall develop a cooperative

program with the Government of Russia to eliminate the production

of weapons grade plutonium by modifying or replacing the reactor

cores at Tomsk–7 and Krasnoyarsk–26 with reactor cores that

are less suitable for the production of weapons-grade plutonium.

(b) PROGRAM REQUIREMENTS.—(1) The program shall be

designed to achieve completion of the modifications or replacements

of the reactor cores within three years after the modification or

replacement activities under the program are begun.

50 USC 2341.

50 USC 2333.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2727

(2) The plan for the program shall—

(A) specify—

(i) successive steps for the modification or replacement

of the reactor cores; and

(ii) clearly defined milestones to be achieved; and

(B) include estimates of the costs of the program.

(c) SUBMISSION OF PROGRAM PLAN TO CONGRESS.—Not later

than 180 days after the date of the enactment of this Act, the

Secretary of Defense shall submit to Congress—

(1) a plan for the program under subsection (a);

(2) an estimate of the United States funding that is necessary for carrying out the activities under the program for

each fiscal year covered by the program; and

(3) a comparison of the benefits of the program with the

benefits of other nonproliferation programs.

Subtitle D—Coordination of Policy and

Countermeasures Against Proliferation

of Weapons of Mass Destruction

SEC. 1441. NATIONAL COORDINATOR ON NONPROLIFERATION.

(a) DESIGNATION OF POSITION.—The President shall designate

an individual to serve in the Executive Office of the President

as the National Coordinator for Nonproliferation Matters.

(b) DUTIES.—The Coordinator, under the direction of the

National Security Council, shall advise and assist the

President by—

(1) advising the President on nonproliferation of weapons

of mass destruction, including issues related to terrorism, arms

control, and international organized crime;

(2) chairing the Committee on Nonproliferation established

under section 1342; and

(3) taking such actions as are necessary to ensure that

there is appropriate emphasis in, cooperation on, and coordination of, nonproliferation research efforts of the United States,

including activities of Federal agencies as well as activities

of contractors funded by the Federal Government.

(c) ALLOCATION OF FUNDS.—Of the total amount authorized

to be appropriated under section 301, $2,000,000 is available to

the Department of Defense for carrying out research referred to

in subsection (b)(3).

SEC. 1442. NATIONAL SECURITY COUNCIL COMMITTEE ON NONPROLIFERATION.

(a) ESTABLISHMENT.—The Committee on Nonproliferation (in

this section referred to as the ‘‘Committee’’) is established as a

committee of the National Security Council.

(b) MEMBERSHIP.—(1) The Committee shall be composed of

representatives of the following:

(A) The Secretary of State.

(B) The Secretary of Defense.

(C) The Director of Central Intelligence.

(D) The Attorney General.

(E) The Secretary of Energy.

50 USC 2352.

President.

50 USC 2351.
110 STAT. 2728 PUBLIC LAW 104–201—SEPT. 23, 1996

(F) The Administrator of the Federal Emergency Management Agency.

(G) The Secretary of the Treasury.

(H) The Secretary of Commerce.

(I) Such other members as the President may designate.

(2) The National Coordinator for Nonproliferation Matters shall

chair the Committee on Nonproliferation.

(c) RESPONSIBILITIES.—The Committee has the following

responsibilities:

(1) To review and coordinate Federal programs, policies,

and directives relating to the proliferation of weapons of mass

destruction and related materials and technologies, including

matters relating to terrorism and international organized crime.

(2) To make recommendations through the National Security Council to the President regarding the following:

(A) Integrated national policies for countering the

threats posed by weapons of mass destruction.

(B) Options for integrating Federal agency budgets

for countering such threats.

(C) Means to ensure that Federal, State, and local

governments have adequate capabilities to manage crises

involving nuclear, radiological, biological, or chemical weapons or related materials or technologies, and to manage

the consequences of a use of such weapon or related materials or technologies, and that use of those capabilities

is coordinated.

(D) Means to ensure appropriate cooperation on, and

coordination of, the following:

(i) Preventing the smuggling of weapons of mass

destruction and related materials and technologies.

(ii) Promoting domestic and international law

enforcement efforts against proliferation-related

efforts.

(iii) Countering the involvement of organized crime

groups in proliferation-related activities.

(iv) Safeguarding weapons of mass destruction

materials and related technologies.

(v) Improving coordination and cooperation among

intelligence activities, law enforcement, and the

Departments of Defense, State, Commerce, and Energy

in support of nonproliferation and counterproliferation

efforts.

(vi) Improving export controls over materials and

technologies that can contribute to the acquisition of

weapons of mass destruction.

(vii) Reducing proliferation of weapons of mass

destruction and related materials and technologies.

SEC. 1443. COMPREHENSIVE PREPAREDNESS PROGRAM.

(a) PROGRAM REQUIRED.—The President, acting through the

Committee on Nonproliferation established under section 1442,

shall develop a comprehensive program for carrying out this title.

(b) CONTENT OF PROGRAM.—The program set forth in the report

shall include specific plans as follows:

(1) Plans for countering proliferation of weapons of mass

destruction and related materials and technologies.

President.

50 USC 2353.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2729

(2) Plans for training and equipping Federal, State, and

local officials for managing a crisis involving a use or threatened

use of a weapon of mass destruction, including the consequences

of the use of such a weapon.

(3) Plans for providing for regular sharing of information

among intelligence, law enforcement, and customs agencies.

(4) Plans for training and equipping law enforcement units,

customs services, and border security personnel to counter the

smuggling of weapons of mass destruction and related materials

and technologies.

(5) Plans for establishing appropriate centers for analyzing

seized nuclear, radiological, biological, and chemical weapons,

and related materials and technologies.

(6) Plans for establishing in the United States appropriate

legal controls and authorities relating to the exporting of

nuclear, radiological, biological, and chemical weapons, and

related materials and technologies.

(7) Plans for encouraging and assisting governments of

foreign countries to implement and enforce laws that set forth

appropriate penalties for offenses regarding the smuggling of

weapons of mass destruction and related materials and technologies.

(8) Plans for building the confidence of the United States

and Russia in each other’s controls over United States and

Russian nuclear weapons and fissile materials, including plans

for verifying the dismantlement of nuclear weapons.

(9) Plans for reducing United States and Russian stockpiles

of excess plutonium, reflecting—

(A) consideration of the desirability and feasibility of

a United States-Russian agreement governing fissile material disposition and the specific technologies and

approaches to be used for disposition of excess plutonium;

and

(B) an assessment of the options for United States

cooperation with Russia in the disposition of Russian plutonium.

(10) Plans for studying the merits and costs of establishing

a global network of means for detecting and responding to

terroristic or other criminal use of biological agents against

people or other forms of life in the United States or any foreign

country.

(c) REPORT.—(1) At the same time that the President submits

the budget for fiscal year 1998 to Congress pursuant to section

1105(a) of title 31, United States Code, the President shall submit

to Congress a report that sets forth the comprehensive program

developed under subsection (a).

(2) The report shall include the following:

(A) The specific plans for the program that are required

under subsection (b).

(B) Estimates of the funds necessary, by agency or department, for carrying out such plans in fiscal year 1998 and

the following five fiscal years.

(3) The report shall be in an unclassified form. If there is

a classified version of the report, the President shall submit the

classified version at the same time.
110 STAT. 2730 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 1444. TERMINATION.

After September 30, 1999, the President—

(1) is not required to maintain a National Coordinator

for Nonproliferation Matters under section 1341; and

(2) may terminate the Committee on Nonproliferation

established under section 1342.

Subtitle E—Miscellaneous

SEC. 1451. SENSE OF CONGRESS CONCERNING CONTRACTING POLICY.

It is the sense of Congress that the Secretary of Defense,

the Secretary of Energy, the Secretary of the Treasury, and the

Secretary of State, to the extent authorized by law, should—

(1) contract directly with suppliers in independent states

of the former Soviet Union when such action would—

(A) result in significant savings of the programs

referred to in subtitle C; and

(B) substantially expedite completion of the programs

referred to in subtitle C; and

(2) seek means to use innovative contracting approaches

to avoid delay and increase the effectiveness of such programs

and of the exercise of such authorities.

SEC. 1452. TRANSFERS OF ALLOCATIONS AMONG COOPERATIVE

THREAT REDUCTION PROGRAMS.

Congress finds that—

(1) the various Cooperative Threat Reduction programs

are being carried out at different rates in the various countries

covered by such programs; and

(2) it is necessary to authorize transfers of funding allocations among the various programs in order to maximize the

effectiveness of United States efforts under such programs.

SEC. 1453. SENSE OF CONGRESS CONCERNING ASSISTANCE TO

STATES OF FORMER SOVIET UNION.

It is the sense of Congress that—

(1) the Cooperative Threat Reduction programs and other

United States programs authorized in the National Defense

Authorization Act for Fiscal Years 1993 and 1994 should be

expanded by offering assistance under those programs to other

independent states of the former Soviet Union in addition to

Russia, Ukraine, Kazakstan, and Belarus; and

(2) the President should offer assistance to additional

independent states of the former Soviet Union in each case

in which the participation of such states would benefit national

security interests of the United States by improving border

controls and safeguards over materials and technology associated with weapons of mass destruction.

SEC. 1454. PURCHASE OF LOW-ENRICHED URANIUM DERIVED FROM

RUSSIAN HIGHLY ENRICHED URANIUM.

(a) SENSE OF CONGRESS.—It is the sense of Congress that

the allies of the United States and other nations should participate

in efforts to ensure that stockpiles of weapons-grade nuclear material are reduced.

(b) ACTIONS BY THE SECRETARY OF STATE.—Congress urges

the Secretary of State to encourage, in consultation with the Secretary

50 USC 2364.

50 USC 2363.

50 USC 2362.

50 USC 2361.

50 USC 2354.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2731

of Energy, other countries to purchase low-enriched uranium

that is derived from highly enriched uranium extracted from Russian nuclear weapons.

SEC. 1455. SENSE OF CONGRESS CONCERNING PURCHASE, PACKAGING, AND TRANSPORTATION OF FISSILE MATERIALS AT

RISK OF THEFT.

It is the sense of Congress that—

(1) the Secretary of Defense, the Secretary of Energy, the

Secretary of the Treasury, and the Secretary of State should

purchase, package, and transport to secure locations weaponsgrade nuclear materials from a stockpile of such materials

if such officials determine that—

(A) there is a significant risk of theft of such

materials; and

(B) there is no reasonable and economically feasible

alternative for securing such materials; and

(2) if it is necessary to do so in order to secure the materials,

the materials should be imported into the United States, subject

to the laws and regulations that are applicable to the importation of such materials into the United States.

TITLE XV—COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER

SOVIET UNION

Sec. 1501. Specification of Cooperative Threat Reduction programs.

Sec. 1502. Fiscal year 1997 funding allocations.

Sec. 1503. Prohibition on use of funds for specified purposes.

Sec. 1504. Limitation on use of funds until specified reports are submitted.

Sec. 1505. Availability of funds.

SEC. 1501. 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. 1502. FISCAL YEAR 1997 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:

50 USC 2362

note.

50 USC 2365.
110 STAT. 2732 PUBLIC LAW 104–201—SEPT. 23, 1996

(1) For planning and design of a chemical weapons destruction facility in Russia, $78,500,000.

(2) For elimination of strategic offensive arms in Russia,

$52,000,000.

(3) For strategic nuclear arms elimination in Ukraine,

$47,000,000.

(4) For planning and design of a storage facility for Russian

fissile material, $66,000,000.

(5) For fissile material containers in Russia, $38,500,000.

(6) For weapons storage security in Russia, $15,000,000.

(7) For activities designated as Defense and Military-toMilitary Contacts in Russia, Ukraine, Belarus, and Kazakhstan,

$10,000,000.

(8) For activities designated as Other Assessments/

Administrative Support, $20,900,000.

(9) For materials protection, control, and accounting assistance or for destruction of nuclear, radiological, biological, or

chemical weapons or related materials at any site within the

former Soviet Union, $10,000,000.

(10) For transfer to the Secretary of Energy to develop

a cooperative program with the Government of Russia to eliminate the production of weapons grade plutonium at Russian

reactors, $10,000,000.

(11) For dismantlement of biological and chemical weapons

facilities in the former Soviet Union, $15,000,000.

(12) For expanding military-to-military programs of the

United States that focus on countering the threat of proliferation of weapons of mass destruction to include the security

forces of the independent states of the former Soviet Union,

particularly states in the Caucasus region and Central Asia,

$2,000,000.

(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.

(2) An obligation for the purposes stated in any of the paragraphs 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.

SEC. 1503. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

(a) IN GENERAL.—None of the funds appropriated pursuant

to the authorization in section 301 for Cooperative Threat Reduction

programs, or appropriated for such programs for any prior fiscal
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2733

year and remaining available for obligation, may be obligated or

expended for any of the following purposes:

(1) Conducting with Russia any peacekeeping exercise or

other peacekeeping-related activity.

(2) Provision of housing.

(3) Provision of assistance to promote environmental

restoration.

(4) Provision of assistance to promote job retraining.

(b) LIMITATION WITH RESPECT TO DEFENSE CONVERSION ASSISTANCE.—None of the funds appropriated to the Department of

Defense for fiscal year 1997 may be obligated or expended for

defense conversion.

SEC. 1504. LIMITATION ON USE OF FUNDS UNTIL SPECIFIED REPORTS

ARE SUBMITTED.

None of the funds appropriated pursuant to the authorization

in section 301 for Cooperative Threat Reduction programs may

be obligated or expended until 15 days after the date which is

the latest of the following:

(1) The date on which the President submits to Congress

the determinations required under subsection (c) of section

211 of Public Law 102–228 (22 U.S.C. 2551 note) with respect

to any certification transmitted to Congress under subsection

(b) of that section before the date of the enactment of this

Act.

(2) The date on which the Secretary of Defense submits

to Congress the first report under section 1206(a) of the

National Defense Authorization Act for Fiscal Year 1996 (Public

Law 104–106; 110 Stat. 471).

(3) The date on which the Secretary of Defense submits

to Congress the report for fiscal year 1996 required under

section 1205(c) of the National Defense Authorization Act for

Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2883).

SEC. 1505. AVAILABILITY OF FUNDS.

Funds appropriated pursuant to the authorization of appropriations in section 301 for Cooperative Threat Reduction programs

shall be available for obligation for three fiscal years.

TITLE XVI—DEPARTMENT OF DEFENSE

CIVILIAN PERSONNEL

Subtitle A—Miscellaneous Matters Relating to Personnel Management, Pay,

and Allowances

Sec. 1601. Modification of requirement for conversion of military positions to

civilian positions. Sec. 1602. Retention of civilian employee positions at military training bases transferred to National Guard.

Sec. 1603. Clarification of applicability of certain management constraints on major

range and test facility base structure. Sec. 1604. Travel expenses and health care for civilian employees of the Department of Defense abroad.

Sec. 1605. Travel, transportation, and relocation allowances for certain former nonappropriated fund employees. Sec. 1606. Employment and salary practices applicable to Department of Defense

overseas teachers.

Sec. 1607. Employment and compensation of civilian faculty members at certain

Department of Defense schools. Sec. 1608. Reimbursement of Department of Defense domestic dependent school

board members for certain expenses.
110 STAT. 2734 PUBLIC LAW 104–201—SEPT. 23, 1996

Sec. 1609. Modification of authority for civilian employees of Department of

Defense to participate voluntarily in reductions in force.

Sec. 1610. Wage-board compensatory time off.

Sec. 1611. Liquidation of restored annual leave that remains unused upon transfer

of employee from installation being closed or realigned.

Sec. 1612. Waiver of requirement for repayment of Voluntary Separation Incentive

pay by former Department of Defense employees reemployed by the

Government without pay.

Sec. 1613. Simplification of rules relating to the observance of certain holidays.

Sec. 1614. Revision of certain travel management authorities.

Sec. 1615. Failure to comply with veterans’ preference requirements to be treated

as a prohibited personnel practice.

Sec. 1616. Pilot programs for defense employees converted to contractor employees

due to privatization at closed military installations.

Subtitle B—Department of Defense Intelligence Personnel Policy

Sec. 1631. Short title.

Sec. 1632. Management of civilian intelligence personnel.

Sec. 1633. Repeal of superseded sections and clerical and conforming amendments.

Sec. 1634. Other personnel management authorities.

Sec. 1635. Effective date.

Subtitle A—Miscellaneous Matters Relating to Personnel Management, Pay, and

Allowances

SEC. 1601. MODIFICATION OF REQUIREMENT FOR CONVERSION OF

MILITARY POSITIONS TO CIVILIAN POSITIONS.

(a) ELIMINATION OF REQUIREMENT FOR FISCAL YEAR 1997

CONVERSIONS.—Paragraph (1) of section 1032(a) of the National

Defense Authorization Act for Fiscal Year 1996 (Public Law 104–

106; 110 Stat. 429; 10 U.S.C. 129a note) is amended—

(1) by striking out ‘‘September 30, 1997’’ and inserting

in lieu thereof ‘‘September 30, 1996’’; and

(2) by striking out ‘‘10,000’’ and inserting in lieu thereof

‘‘3,000’’.

(b) CONFORMING AMENDMENTS.—Such section is further

amended—

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

(2) by redesignating paragraph (3) as paragraph (2).

(c) EFFECTIVE DATE.—(1) The amendments made by this section

shall take effect 30 days after the date on which the Secretary

of Defense submits to Congress a certification that at least 3,000

military positions have been converted to civilian positions during

fiscal year 1996 as required by section 1032(a) of the National

Defense Authorization Act for Fiscal Year 1996 (Public Law 104–

106; 110 Stat. 429).

(2) The Secretary shall publish in the Federal Register a notice

of the submission of any certification to Congress under paragraph

(1), including the date on which the certification was submitted

to Congress.

SEC. 1602. RETENTION OF CIVILIAN EMPLOYEE POSITIONS AT MILITARY TRAINING BASES TRANSFERRED TO NATIONAL

GUARD.

(a) RETENTION OF EMPLOYEE POSITIONS.—In the case of a military training installation described in subsection (b), the Secretary

of Defense shall retain civilian employee positions of the Department of Defense at the installation after transfer to the National

10 USC 2687

note.

Federal Register,

publication.

Certification.

10 USC 129a

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2735

Guard to facilitate active and reserve component training at the

installation. The Secretary shall determine the extent to which

positions at the installation are to be retained as positions of

the Department of Defense in consultation with the Adjutant

General of the National Guard of the State in which the installation

is located.

(b) MILITARY TRAINING INSTALLATIONS AFFECTED.—This section

applies with respect to each military training installation that—

(1) 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) is scheduled for transfer to National Guard operation

and control; and

(3) will continue to be used, after such transfer, to provide

training support to active and reserve components of the Armed

Forces.

(c) MAXIMUM POSITIONS RETAINED.—The number of civilian

employee positions retained at an installation under this section

may not exceed 20 percent of the Federal civilian workforce

employed at the installation as of September 8, 1995.

(d) REMOVAL OF POSITION.—The requirement to maintain a

civilian employee position at an installation under this section

terminates upon the later of the following:

(1) The date of the departure or retirement from that

position by the civilian employee initially employed or retained

in the position as a result of this section.

(2) The date on which the Secretary certifies to Congress

that the position is no longer required to ensure that effective

support is provided at the installation for active and reserve

component training.

SEC. 1603. CLARIFICATION OF APPLICABILITY OF CERTAIN MANAGEMENT CONSTRAINTS ON MAJOR RANGE AND TEST

FACILITY BASE STRUCTURE.

Section 129 of title 10, United States Code, is amended—

(1) in subsection (c)(1), by inserting ‘‘, the Major Range

and Test Facility Base,’’ after ‘‘industrial-type activities’’; and

(2) by adding at the end the following:

‘‘(e) Subsections (a), (b), and (c) apply to the Major Range

and Test Facility Base (MRTFB) at the installation level. With

respect to the MRTFB structure, the term ‘funds made available’

includes both direct appropriated funds and funds provided by

MRTFB customers.’’.

SEC. 1604. TRAVEL EXPENSES AND HEALTH CARE FOR CIVILIAN

EMPLOYEES OF THE DEPARTMENT OF DEFENSE ABROAD.

(a) IN GENERAL.—Chapter 81 of title 10, United States Code,

is amended by adding at the end the following new section:

‘‘§ 1599b. Employees abroad: travel expenses; health care

‘‘(a) IN GENERAL.—The Secretary of Defense may provide

civilian employees, and members of their families, abroad with

benefits that are comparable to certain benefits that are provided

by the Secretary of State to members of the Foreign Service and

their families abroad as described in subsections (b) and (c). The

Secretary may designate the employees and members of families

who are eligible to receive the benefits.
110 STAT. 2736 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(b) TRAVEL AND RELATED EXPENSES.—The Secretary of Defense

may pay travel expenses and related expenses for purposes and

in amounts that are comparable to the purposes for which, and

the amounts in which, travel and related expenses are paid by

the Secretary of State under section 901 of the Foreign Service

Act of 1980 (22 U.S.C. 4081).

‘‘(c) HEALTH CARE PROGRAM.—The Secretary of Defense may

establish a health care program that is comparable to the health

care program established by the Secretary of State under section

904 of the Foreign Service Act of 1980 (22 U.S.C. 4084).

‘‘(d) ASSISTANCE.—The Secretary of Defense may enter into

agreements with the heads of other departments and agencies of

the Government in order to facilitate the payment of expenses

authorized by subsection (b) and to carry out a health care program authorized by subsection (c).

‘‘(e) ABROAD DEFINED.—In this section, the term ‘abroad’ means

outside—

‘‘(1) the United States; and

‘‘(2) the territories and possessions of the United States.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following

new item:

‘‘1599b. Employees abroad: travel expenses; health care.’’.

SEC. 1605. TRAVEL, TRANSPORTATION, AND RELOCATION ALLOWANCES FOR CERTAIN FORMER NONAPPROPRIATED FUND

EMPLOYEES.

(a) IN GENERAL.—(1) Subchapter II of chapter 57 of title 5,

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

new section:

‘‘§ 5736. Travel, transportation, and relocation expenses of

certain nonappropriated fund employees

‘‘An employee of a nonappropriated fund instrumentality of

the Department of Defense or the Coast Guard described in section

2105(c) of this title who moves, without a break in service of

more than 3 days, to a position in the Department of Defense

or the Coast Guard, respectively, may be authorized travel,

transportation, and relocation expenses and allowances under the

same conditions and to the same extent authorized by this subchapter for transferred employees.’’.

(2) The table of sections at the beginning of chapter 57 of

such title is amended by inserting after the item relating to section

5735 the following new item:

‘‘5736. Travel, transportation, and relocation expenses of certain nonappropriated

fund employees.’’.

(b) APPLICABILITY.—Section 5736 of title 5, United States Code

(as added by subsection (a)(1)), shall apply to moves between positions as described in such section that are effective on or after

October 1, 1996.

SEC. 1606. EMPLOYMENT AND SALARY PRACTICES APPLICABLE TO

DEPARTMENT OF DEFENSE OVERSEAS TEACHERS.

(a) EXPANSION OF SCOPE OF EDUCATORS COVERED.—Section

2 of the Defense Department Overseas Teachers Pay and Personnel

Practices Act (20 U.S.C. 901) is amended—

5 USC 5736 note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2737

(1) in subparagraph (A) of paragraph (1), by inserting ‘‘,

or are performed by an individual who carried out certain

teaching activities identified in regulations prescribed by the

Secretary of Defense’’ after ‘‘Defense,’’; and

(2) by striking out subparagraph (C) of paragraph (2) and

inserting in lieu thereof the following:

‘‘(C) who is employed in a teaching position described

in paragraph (1).’’.

(b) TRANSFER OF RESPONSIBILITY FOR EMPLOYMENT AND SALARY

PRACTICES.—Section 5 of such Act (20 U.S.C. 903) is amended—

(1) in subsection (a)—

(A) by striking out ‘‘Secretary of each military department in the Department of Defense’’ and inserting in lieu

thereof ‘‘Secretary of Defense’’; and

(B) by striking out ‘‘his military department’’ and

inserting in lieu thereof ‘‘the Department of Defense’’;

(2) in subsection (b)—

(A) in the matter preceding paragraph (1), by striking

out ‘‘secretary of each military department—’’ and inserting

in lieu thereof ‘‘Secretary of Defense—’’; and

(B) in paragraph (1), by striking out ‘‘his military

department,’’ and inserting in lieu thereof ‘‘the Department

of Defense’’;

(3) in subsection (c)—

(A) by striking out ‘‘Secretary of each military department’’ and inserting in lieu thereof ‘‘Secretary of Defense’’;

and

(B) by striking out ‘‘his military department’’ and

inserting in lieu thereof ‘‘the Department of Defense’’; and

(4) in subsection (d), by striking out ‘‘Secretary of each

military department’’ and inserting in lieu thereof ‘‘Secretary

of Defense’’.

SEC. 1607. EMPLOYMENT AND COMPENSATION OF CIVILIAN FACULTY

MEMBERS AT CERTAIN DEPARTMENT OF DEFENSE

SCHOOLS.

(a) FACULTIES.—Subsection (c) of section 1595 of title 10, United

States Code, is amended by adding at the end the following new

paragraphs:

‘‘(4) The English Language Center of the Defense Language

Institute.

‘‘(5) The Asia-Pacific Center for Security Studies.’’.

(b) CERTAIN ADMINISTRATORS.—Such section is further amended

by adding at the end the following new subsection:

‘‘(f) APPLICATION TO DIRECTOR AND DEPUTY DIRECTOR AT ASIA- PACIFIC CENTER FOR SECURITY STUDIES.—In the case of the AsiaPacific Center for Security Studies, this section also applies with

respect to the Director and the Deputy Director.’’.

SEC. 1608. REIMBURSEMENT OF DEPARTMENT OF DEFENSE DOMESTIC DEPENDENT SCHOOL BOARD MEMBERS FOR CERTAIN

EXPENSES.

Section 2164(d) of title 10, United States Code, is amended

by adding at the end the following new paragraph:

‘‘(7) The Secretary may provide for reimbursement of a school

board member for expenses incurred by the member for travel,

transportation, lodging, meals, program fees, activity fees, and other

appropriate expenses that the Secretary determines are reasonable
110 STAT. 2738 PUBLIC LAW 104–201—SEPT. 23, 1996

and necessary for the performance of school board duties by the

member.’’.

SEC. 1609. MODIFICATION OF AUTHORITY FOR CIVILIAN EMPLOYEES

OF DEPARTMENT OF DEFENSE TO PARTICIPATE VOLUNTARILY IN REDUCTIONS IN FORCE.

Subsection (f) of section 3502 of title 5, United States Code,

is amended to read as follows:

‘‘(f)(1) The Secretary of Defense or the Secretary of a military

department may—

‘‘(A) separate from service any employee who volunteers

to be separated under this subparagraph even though the

employee is not otherwise subject to separation due to a reduction in force; and

‘‘(B) for each employee voluntarily separated under

subparagraph (A), retain an employee in a similar position

who would otherwise be separated due to a reduction in force.

‘‘(2) The separation of an employee under paragraph (1)(A)

shall be treated as an involuntary separation due to a reduction

in force.

‘‘(3) An employee with critical knowledge and skills (as defined

by the Secretary concerned) may not participate in a voluntary

separation under paragraph (1)(A) 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) No authority under paragraph (1) may be exercised after

September 30, 2001.’’.

SEC. 1610. WAGE-BOARD COMPENSATORY TIME OFF.

(a) IN GENERAL.—Section 5543 of title 5, United States Code,

is amended—

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

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

‘‘(b) The head of an agency may, on request of an employee,

grant the employee compensatory time off from the employee’s

scheduled tour of duty instead of payment under section 5544

or section 7 of the Fair Labor Standards Act of 1938 for an equal

amount of time spent in irregular or occasional overtime work.

An agency head may not require an employee to be compensated

for overtime work with an equivalent amount of compensatory

time-off from the employee’s tour of duty.’’.

(b) CONFORMING AMENDMENT.—Section 5544(c) of title 5,

United States Code, is amended by inserting ‘‘and the provisions

of section 5543(b)’’ after ‘‘the last two sentences of subsection (a)’’.

SEC. 1611. LIQUIDATION OF RESTORED ANNUAL LEAVE THAT

REMAINS UNUSED UPON TRANSFER OF EMPLOYEE FROM

INSTALLATION BEING CLOSED OR REALIGNED.

(a) LUMP-SUM PAYMENT REQUIRED.—Section 5551 of title 5,

United States Code, is amended by adding at the end the following:

‘‘(c)(1) Annual leave that is restored to an employee of the

Department of Defense under section 6304(d) of this title by reason

of the operation of paragraph (3) of such section and remains

unused upon the transfer of the employee to a position described

Termination

date.

Regulations.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2739

in paragraph (2) shall be liquidated by payment of a lump-sum

for such leave to the employee upon the transfer.

‘‘(2) A position referred to in paragraph (1) is a position in

a department or agency of the Federal Government outside the

Department of Defense or a Department of Defense position that

is not located at a Department of Defense installation being closed

or realigned as described in section 6304(d)(3) of this title.’’.

(b) APPLICABILITY.—Subsection (c) of section 5551 of title 5,

United States Code (as added by subsection (a)), shall apply with

respect to transfers described in such subsection (c) that take effect

on or after the date of the enactment of this Act.

SEC. 1612. WAIVER OF REQUIREMENT FOR REPAYMENT OF VOLUNTARY SEPARATION INCENTIVE PAY BY FORMER

DEPARTMENT OF DEFENSE EMPLOYEES REEMPLOYED BY

THE GOVERNMENT WITHOUT PAY.

(a) IN GENERAL.—Section 5597(g) of title 5, United States Code,

is amended by adding at the end the following new paragraph:

‘‘(5) If the employment is without compensation, the appointing

official may waive the repayment.’’.

(b) APPLICABILITY.—The amendment made by subsection (a)

shall apply with respect to employment accepted on or after the

date of the enactment of this Act.

SEC. 1613. SIMPLIFICATION OF RULES RELATING TO THE OBSERVANCE OF CERTAIN HOLIDAYS.

Section 6103 of title 5, United States Code, is amended by

adding at the end the following new subsection:

‘‘(d)(1) For purposes of this subsection—

‘‘(A) the term ‘compressed schedule’ has the meaning given

such term by section 6121(5); and

‘‘(B) the term ‘adverse agency impact’ has the meaning

given such term by section 6131(b).

‘‘(2) An agency may prescribe rules under which employees

on a compressed schedule may, in the case of a holiday that occurs

on a regularly scheduled non-workday for such employees, and

notwithstanding any other provision of law or the terms of any

collective bargaining agreement, be required to observe such holiday

on a workday other than as provided by subsection (b), if the

agency head determines that it is necessary to do so in order

to prevent an adverse agency impact.’’.

SEC. 1614. REVISION OF CERTAIN TRAVEL MANAGEMENT

AUTHORITIES.

(a) REPEAL OF REQUIREMENTS RELATING TO FIRE-SAFE ACCOMMODATIONS.—(1) Section 5707 of title 5, United States Code, is

amended by striking out subsection (d).

(2) Subsection (b) of section 5 of the Hotel and Motel Fire

Safety Act of 1990 (Public Law 101–391; 104 Stat. 751; 5 U.S.C.

5707 note) is repealed.

(b) REPEAL OF PROHIBITION ON PAYMENT OF LODGING EXPENSES

OF DEPARTMENT OF DEFENSE EMPLOYEES AND OTHER CIVILIANS

WHEN ADEQUATE GOVERNMENT QUARTERS ARE AVAILABLE.—(1) Section 1589 of title 10, United States Code, is repealed.

(2) The table of sections at the beginning of chapter 81 of

such title is amended by striking out the item relating to such

section.

5 USC 5597 note.

5 USC 5551 note.
110 STAT. 2740 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 1615. FAILURE TO COMPLY WITH VETERANS’ PREFERENCE

REQUIREMENTS TO BE TREATED AS A PROHIBITED

PERSONNEL PRACTICE.

(a) IN GENERAL.—(1) Chapter 81 of title 10, United States

Code, as amended by section 1604, is further amended by adding

at the end the following new section:

‘‘§ 1599c. Veterans’ preference requirements: Department of

Defense failure to comply treated as a prohibited

personnel practice

‘‘(a) PROHIBITED PERSONNEL PRACTICE.—It is a prohibited

personnel practice for a person referred to in subsection (b) who

has authority described in that subsection—

‘‘(1) knowingly to take, recommend, or approve any personnel action with respect to such authority if the taking of such

action violates a veterans’ preference; or

‘‘(2) knowingly to fail to take, recommend, or approve any

personnel action with respect to such authority, if the failure

to take such action violates a veterans’ preference.

‘‘(b) PERSONS COVERED.—Subsection (a) applies with

respect to—

‘‘(1) an officer or employee of the Department of Defense

who has authority to take, direct others to take, recommend,

or approve a personnel action with respect to an employee

of the Department of Defense; and

‘‘(2) a member of the armed forces who has such authority.

‘‘(c) VETERANS’ PREFERENCE DEFINED.—(1) In this section, the

term ‘veterans’ preference’ means any of the following provisions

of law:

‘‘(A) Sections 2108, 3305(b), 3309, 3310, 3311, 3312, 3313,

3314, 3315, 3316, 3317(b), 3318, 3320, 3351, 3352, 3363, 3501,

3502(b), 3504, and 4303(e) of title 5 and (with respect to a

preference eligible referred to in section 7511(a)(1)(B) of such

title) subchapter II of chapter 75 and section 7701 of such

title.

‘‘(B) Sections 943(c)(2) and 1784(c) of this title.

‘‘(C) Section 1308(b) of the Alaska National Interest Lands

Conservation Act (16 U.S.C. 3198(b)).

‘‘(D) Section 301(c) of the Foreign Service Act of 1980

(22 U.S.C. 3941(c)).

‘‘(E) Section 3(a)(11) of the Administrative Office of the

United States Courts Personnel Act of 1990 (28 U.S.C. 602

note).

‘‘(F) Sections 106(f), 7281(e), and 7802(5) of title 38.

‘‘(G) Section 1005(a) of title 39.

‘‘(H) Any other provision of law that the Director of the

Office of Personnel Management designates in regulations as

being a veterans’ preference for the purposes of this section.

‘‘(2) For the purposes of this section, such term includes

any regulation prescribed under subsection (b) or (c) of section

1302 of title 5 and any other regulation that implements a provision

of law referred to in paragraph (1).

‘‘(d) PERSONNEL ACTION DEFINED.—In this section, the term

‘personnel action’ has the meaning given that term in section 2302

of title 5.’’.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2741

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

is amended by adding at the end the following new item:

‘‘1599c. Veterans’ preference requirements: Department of Defense failure to comply

treated as a prohibited personnel practice.’’.

(b) APPLICABILITY OF TITLE 5 PROCEDURES AND SANCTIONS.—

Paragraph (1) of section 2302(a) of title 5, United States Code,

is amended to read as follows:

‘‘(1) For purposes of this title, ‘prohibited personnel practice’

means the following:

‘‘(A) Any action described in subsection (b) of this section.

‘‘(B) Any action or failure to act that is designated as

a prohibited personnel action under section 1599c(a) of title

10.’’.

(c) REPORTING REQUIREMENT.—Not later than six months after

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

shall submit to Congress a written report on—

(1) the implementation of—

(A) section 1599c of title 10, United States Code, as

added by subsection (a); and

(B) subparagraph (B) of section 2302(a)(1) of title 5,

United States Code, as added by subsection (b); and

(2) the administration of veterans’ preference requirements

by the Department of Defense generally.

SEC. 1616. PILOT PROGRAMS FOR DEFENSE EMPLOYEES CONVERTED

TO CONTRACTOR EMPLOYEES DUE TO PRIVATIZATION AT

CLOSED MILITARY INSTALLATIONS.

(a) PILOT PROGRAMS AUTHORIZED.—(1) The Secretary of

Defense, after consultation with the Director of the Office of Personnel Management, may establish one or more pilot programs under

which Federal retirement benefits are provided in accordance with

this section to persons who convert from Federal employment to

employment by a Department of Defense contractor in connection

with the privatization of the performance of functions at selected

military installations being closed under the base closure and

realignment process.

(2) The Secretary of Defense shall select the military installations to be covered by a pilot program under this section.

(b) ELIGIBLE CONVERTED EMPLOYEES.—(1) A person is a converted employee eligible for Federal retirement benefits under this

section if the person is a former employee of the Department of

Defense (other than a temporary employee) who—

(A) while employed by the Department of Defense at a

military installation selected to participate in a pilot program,

performed a function that was recommended, in a report of

the Defense Base Closure and Realignment Commission

submitted to the President under the Defense Base Closure

and Realignment Act of 1990 (title XXIX of Public Law 101–

510; 10 U.S.C. 2687 note), to be privatized for performance

by a defense contractor at the same installation or in the

vicinity of the installation;

(B) while so employed, separated from Federal service after

being notified that the employee would be separated in a reduction in force resulting from such privatization;

(C) at the time separated from Federal service, was covered

under the Civil Service Retirement System, but was not eligible

5 USC 8331 note.
110 STAT. 2742 PUBLIC LAW 104–201—SEPT. 23, 1996

for an immediate annuity under the Civil Service Retirement

System;

(D) does not withdraw retirement contributions under section 8342 of title 5, United States Code;

(E) within 60 days following such separation, is employed

by the defense contractor selected to privatize the function

to perform substantially the same function performed by the

person before the separation; and

(F) remains employed by the defense contractor (or a

successor defense contractor) or subcontractor of the defense

contractor (or successor defense contractor) until attaining early

deferred retirement age (unless the employment is sooner involuntarily terminated for reasons other than performance or conduct of the employee).

(2) A person who, under paragraph (1), would otherwise be

eligible for an early deferred annuity under this section shall not

be eligible for such benefits if the person received separation pay

or severance pay due to a separation described in subparagraph

(B) of that paragraph unless the person repays the full amount

of such pay with interest (computed at a rate determined appropriate by the Director of the Office of Personnel Management)

to the Department of Defense before attaining early deferred retirement age.

(c) RETIREMENT BENEFITS OF CONVERTED EMPLOYEES.—In the

case of a converted employee covered by a pilot program, payment

of a deferred annuity for which the converted employee is eligible

under section 8338(a) of title 5, United States Code, shall commence

on the first day of the first month that begins after the date

on which the converted employee attains early deferred retirement

age, notwithstanding the age requirement under that section. If

the employment of a converted employee is involuntarily terminated

by the defense contractor or subcontractor as described in subsection

(b)(1)(F) and the converted employee resumes Federal service before

the converted employee attains early deferred retirement age, the

converted employee shall once again be covered under the Civil

Service Retirement System instead of the pilot program.

(d) COMPUTATION OF AVERAGE PAY.—(1)(A) This paragraph

applies to a converted employee who was employed in a position

classified under the General Schedule immediately before the

employee’s covered separation from Federal service.

(B) Subject to subparagraph (C), for purposes of computing

the deferred annuity for a converted employee referred to in

subparagraph (A), the average pay of the converted employee, computed under section 8331(4) of title 5, United States Code, as

of the date of the employee’s covered separation from Federal service, shall be adjusted at the same time and by the same percentage

that rates of basic pay are increased under section 5303 of such

title during the period beginning on that date and ending on the

date on which the converted employee attains early deferred retirement age.

(C) The average pay of a converted employee, as adjusted

under subparagraph (B), may not exceed the amount to which

an annuity of the converted employee could be increased under

section 8340 of title 5, United States Code, in accordance with

the limitation in subsection (g)(1) of such section (relating to maximum pay, final pay, or average pay).
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2743

(2)(A) This paragraph applies to a converted employee who

was a prevailing rate employee (as defined under section 5342(2)

of title 5, United States Code) immediately before the employee’s

covered separation from Federal service.

(B) For purposes of computing the deferred annuity for a converted employee referred to in subparagraph (A), the average pay

of the converted employee, computed under section 8331(4) of title

5, United States Code, as of the date of the employee’s covered

separation from Federal service, shall be adjusted at the same

time and by the same percentage that pay rates for positions

that are in the same area as, and are comparable to, the last

position the converted employee held as a prevailing rate employee,

are increased under section 5343(a) of such title during the period

beginning on that date and ending on the date on which the

converted employee attains early deferred retirement age.

(e) PAYMENT OF UNFUNDED LIABILITY.—(1) The military department concerned shall be liable for that portion of any estimated

increase in the unfunded liability of the Civil Service Retirement

and Disability Fund established under section 8348 of title 5, United

States Code, which is attributable to any benefits payable from

such Fund to a converted employee, and any survivor of a converted

employee, when the increase results from—

(A) an increase in the average pay of the converted

employee under subsection (d) upon which such benefits are

computed; and

(B) the commencement of an early deferred annuity in

accordance with this section before the attainment of 62 years

of age by the converted employee.

(2) The estimated increase in the unfunded liability for each

department referred to in paragraph (1) shall be determined by

the Director of the Office of Personnel Management. In making

the determination, the Director shall consider any savings to the

Fund as a result of a pilot program established under this section.

The Secretary of the military department concerned shall pay the

amount so determined to the Director in 10 equal annual installments with interest computed at the rate used in the most recent

valuation of the Civil Service Retirement System, with the first

payment thereof due at the end of the fiscal year in which an

increase in average pay under subsection (d) becomes effective.

(f) CONTRACTOR SERVICE NOT CREDITABLE.—Service performed

by a converted employee for a defense contractor after the employee’s covered separation from Federal service is not creditable service

for purposes of subchapter III of chapter 83 of title 5, United

States Code.

(g) RECEIPT OF BENEFITS WHILE EMPLOYED BY A DEFENSE

CONTRACTOR.—A converted employee may commence receipt of an

early deferred annuity in accordance with this section while continuing to work for a defense contractor.

(h) LUMP-SUM CREDIT PAYMENT.—If a converted employee dies

before attaining early deferred retirement age, such employee shall

be treated as a former employee who dies not retired for purposes

of payment of the lump-sum credit under section 8342(d) of title

5, United States Code.

(i) CONTINUED FEDERAL HEALTH BENEFITS COVERAGE.—Notwithstanding section 8905a(e)(1)(A) of title 5, United States Code,

the continued coverage of a converted employee for health benefits

under chapter 89 of such title by reason of the application of

Applicability.
110 STAT. 2744 PUBLIC LAW 104–201—SEPT. 23, 1996

section 8905a of such title to such employee shall terminate 90

days after the date of the employee’s covered separation from

Federal employment. For the purposes of the preceding sentence,

a person who, except for subsection (b)(2), would be a converted

employee shall be considered a converted employee.

(j) REPORT BY GENERAL ACCOUNTING OFFICE.—The Comptroller

General shall conduct a study of each pilot program, if any, established under this section and submit a report on the pilot program

to Congress not later than two years after the date on which

the program is established. The report shall contain the following:

(1) A review and evaluation of the program, including—

(A) an evaluation of the success of the privatization

outcomes of the program;

(B) a comparison and evaluation of such privatization

outcomes with the privatization outcomes with respect to

facilities at other military installations closed or realigned

under the base closure laws;

(C) an evaluation of the impact of the program on

the Federal workforce and whether the program results

in the maintenance of a skilled workforce for defense contractors at an acceptable cost to the military department

concerned; and

(D) an assessment of the extent to which the program

is a cost-effective means of facilitating privatization of the

performance of Federal activities.

(2) Recommendations relating to the expansion of the program to other installations and employees.

(3) Any other recommendation relating to the program.

(k) IMPLEMENTING REGULATIONS.—Not later than 30 days after

the Secretary of Defense notifies the Director of the Office of Personnel Management of a decision to establish a pilot program under

this section, the Director shall prescribe regulations to carry out

the provisions of this section with respect to that pilot program.

Before prescribing the regulations, the Director shall consult with

the Secretary.

(l) DEFINITIONS.—In this section:

(1) The term ‘‘converted employee’’ means a person who,

pursuant to subsection (b), is eligible for benefits under this

section.

(2) The term ‘‘covered separation from Federal service’’

means a separation from Federal service as described under

subsection (b)(1)(B).

(3) The term ‘‘Civil Service Retirement System’’ means

the retirement system under subchapter III of chapter 83 of

title 5, United States Code.

(4) The term ‘‘defense contractor’’ means any entity that—

(A) contracts with the Department of Defense to perform a function previously performed by Department of

Defense employees;

(B) performs that function at the same installation

at which such function was previously performed by

Department of Defense employees or in the vicinity of

that installation; and

(C) is the employer of one or more converted employees.

(5) The term ‘‘early deferred retirement age’’ means the

first age at which a converted employee would have been

eligible for immediate retirement under subsection (a) or (b)
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2745

of section 8336 of title 5, United States Code, if such converted

employee had remained an employee within the meaning of

section 8331(1) of such title continuously until attaining such

age.

(6) The term ‘‘severance pay’’ means severance pay payable

under section 5595 of title 5, United States Code.

(7) The term ‘‘separation pay’’ means separation pay payable under section 5597 of title 5, United States Code.

(m) APPLICATION OF PILOT PROGRAM.—In the event that a

pilot program is established for a military installation, the pilot

program shall apply to a covered separation from Federal service

by an employee of the Department of Defense at the installation

occurring on or after August 1, 1996.

Subtitle B—Department of Defense

Intelligence Personnel Policy

SEC. 1631. SHORT TITLE.

This subtitle may be cited as the ‘‘Department of Defense

Civilian Intelligence Personnel Policy Act of 1996’’.

SEC. 1632. MANAGEMENT OF CIVILIAN INTELLIGENCE PERSONNEL.

(a) CONSOLIDATION AND STANDARDIZATION OF CIVILIAN PERSONNEL POLICY.—Chapter 83 of title 10, United States Code, is

amended—

(1) by redesignating section 1602 as section 1621 and

transferring that section so as to appear after section 1605;

(2) by redesignating sections 1606 and 1608 as section

1622 and 1623, respectively; and

(3) by striking out the chapter heading, the table of sections, and sections 1601, 1603, and 1604 and inserting in lieu

thereof the following:

‘‘CHAPTER 83—CIVILIAN DEFENSE INTELLIGENCE

EMPLOYEES

‘‘Subchapter Sec.

‘‘I. Defense-Wide Intelligence Personnel Policy ................................................... 1601

‘‘II. Defense Intelligence Agency Personnel .......................................................... 1621

‘‘SUBCHAPTER I—DEFENSE-WIDE INTELLIGENCE

PERSONNEL POLICY

‘‘Sec.

‘‘1601. Civilian intelligence personnel: general authority to establish excepted positions, appoint personnel, and fix rates of pay.

‘‘1602. Basic pay.

‘‘1603. Additional compensation, incentives, and allowances.

‘‘1605. Benefits for certain employees assigned outside the United States.

‘‘1606. Defense Intelligence Senior Executive Service.

‘‘1607. Intelligence Senior Level positions.

‘‘1608. Time-limited appointments.

‘‘1609. Termination of defense intelligence employees.

‘‘1610. Reductions and other adjustments in force.

‘‘1611. Postemployment assistance: certain terminated intelligence employees.

‘‘1612. Merit system principles and civil service protections: applicability.

‘‘1613. Miscellaneous provisions.

‘‘1614. Definitions.

10 USC 1601

note.

Department of

Defense Civilian

Intelligence

Personnel Policy

Act of 1996.
110 STAT. 2746 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘§ 1601. Civilian intelligence personnel: general authority to

establish excepted positions, appoint personnel,

and fix rates of pay

‘‘(a) GENERAL AUTHORITY.—The Secretary of Defense may—

‘‘(1) establish, as positions in the excepted service, such

defense intelligence positions in the intelligence components

of the Department of Defense and the military departments

as the Secretary determines necessary to carry out the

intelligence functions of those components and departments,

including—

‘‘(A) Intelligence Senior Level positions designated

under section 1607 of this title; and

‘‘(B) positions in the Defense Intelligence Senior Executive Service;

‘‘(2) appoint individuals to those positions (after taking

into consideration the availability of preference eligibles for

appointment to those positions); and

‘‘(3) fix the compensation of such individuals for service

in those positions.

‘‘(b) CONSTRUCTION WITH OTHER LAWS.—The authority of the

Secretary of Defense under subsection (a) applies without regard

to the provisions of any other law relating to the appointment,

number, classification, or compensation of employees.

‘‘§ 1602. Basic pay

‘‘(a) AUTHORITY TO FIX RATES OF BASIC PAY.—The Secretary

of Defense (subject to the provisions of this section) shall fix the

rates of basic pay for positions established under section 1601

of this title in relation to the rates of basic pay provided in subpart

D of part III of title 5 for positions subject to that subpart which

have corresponding levels of duties and responsibilities.

‘‘(b) MAXIMUM RATES.—A rate of basic pay fixed under subsection (a) for a position established under section 1601 of this

title may not (except as otherwise provided by law) exceed—

‘‘(1) in the case of a Defense Intelligence Senior Executive

Service position, the maximum rate provided in section 5382

of title 5;

‘‘(2) in the case of an Intelligence Senior Level position,

the maximum rate provided in section 5382 of title 5; and

‘‘(3) in the case of any other position, the maximum rate

provided in section 5306(e) of title 5.

‘‘(c) PREVAILING RATE SYSTEMS.—The Secretary of Defense

may, consistent with section 5341 of title 5, adopt such provisions

of that title as provide for prevailing rate systems of basic pay

and may apply those provisions to positions for civilian employees

in or under which the Department of Defense may employ individuals described by section 5342(a)(2)(A) of that title.

‘‘§ 1603. Additional compensation, incentives, and allowances

‘‘(a) ADDITIONAL COMPENSATION BASED ON TITLE 5 AUTHORITIES.—The Secretary of Defense may provide employees in defense

intelligence positions compensation (in addition to basic pay),

including benefits, incentives, and allowances, consistent with, and

not in excess of the level authorized for, comparable positions

authorized by title 5.

‘‘(b) ALLOWANCES BASED ON LIVING COSTS AND ENVIRONMENT.—

(1) In addition to basic pay, employees in defense intelligence positions
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2747

who are citizens or nationals of the United States and are

stationed outside the continental United States or in Alaska may

be paid an allowance, in accordance with regulations prescribed

by the Secretary of Defense, while they are so stationed.

‘‘(2) An allowance under this subsection shall be based on—

‘‘(A) living costs substantially higher than in the District

of Columbia;

‘‘(B) conditions of environment which (i) differ substantially

from conditions of environment in the continental United

States, and (ii) warrant an allowance as a recruitment incentive; or

‘‘(C) both of the factors specified in subparagraphs (A)

and (B).

‘‘(3) An allowance under this subsection may not exceed the

allowance authorized to be paid by section 5941(a) of title 5 for

employees whose rates of basic pay are fixed by statute.’’.

(b) MATTERS OTHER THAN PAY AND BENEFITS.—Such chapter

is further amended by inserting after section 1605 the following

new sections:

‘‘§ 1606. Defense Intelligence Senior Executive Service

‘‘(a) ESTABLISHMENT.—The Secretary of Defense may establish

a Defense Intelligence Senior Executive Service for defense intelligence positions established pursuant to section 1601(a) of this

title that are equivalent to Senior Executive Service positions. The

number of positions in the Defense Intelligence Senior Executive

Service may not exceed 492.

‘‘(b) REGULATIONS CONSISTENT WITH TITLE 5 PROVISIONS.—

The Secretary of Defense shall prescribe regulations for the Defense

Intelligence Senior Executive Service which are consistent with

the requirements set forth in sections 3131, 3132(a)(2), 3396(c),

3592, 3595(a), 5384, and 6304 of title 5, subsections (a), (b), and

(c) of section 7543 of such title (except that any hearing or appeal

to which a member of the Defense Intelligence Senior Executive

Service is entitled shall be held or decided pursuant to those regulations), and subchapter II of chapter 43 of such title. To the extent

that the Secretary determines it practicable to apply to members

of, or applicants for, the Defense Intelligence Senior Executive

Service other provisions of title 5 that apply to members of, or

applicants for, the Senior Executive Service, the Secretary shall

also prescribe regulations to implement those provisions with

respect to the Defense Intelligence Senior Executive Service.

‘‘(c) AWARD OF RANK TO MEMBERS OF THE DEFENSE INTELLIGENCE SENIOR EXECUTIVE SERVICE.—The President, based on the

recommendations of the Secretary of Defense, may award a rank

referred to in section 4507 of title 5 to members of the Defense

Intelligence Senior Executive Service. The award of such rank shall

be made in a manner consistent with the provisions of that section.

‘‘§ 1607. Intelligence Senior Level positions

‘‘(a) DESIGNATION OF POSITIONS.—The Secretary of Defense may

designate as an Intelligence Senior Level position any defense intelligence position that, as determined by the Secretary—

‘‘(1) is classifiable above grade GS–15 of the General

Schedule;
110 STAT. 2748 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(2) does not satisfy functional or program management

criteria for being designated a Defense Intelligence Senior

Executive Service position; and

‘‘(3) has no more than minimal supervisory responsibilities.

‘‘(b) REGULATIONS.—Subsection (a) shall be carried out in

accordance with regulations prescribed by the Secretary of Defense.

‘‘§ 1608. Time-limited appointments

‘‘(a) AUTHORITY FOR TIME-LIMITED APPOINTMENTS.—The Secretary of Defense may by regulation authorize appointing officials

to make time-limited appointments to defense intelligence positions

specified in the regulations.

‘‘(b) REVIEW OF USE OF AUTHORITY.—The Secretary of Defense

shall review each time-limited appointment in a defense intelligence

position at the end of the first year of the period of the appointment

and determine whether the appointment should be continued for

the remainder of the period. The continuation of a time-limited

appointment after the first year shall be subject to the approval

of the Secretary.

‘‘(c) CONDITION ON PERMANENT APPOINTMENT TO DEFENSE

INTELLIGENCE SENIOR EXECUTIVE SERVICE.—An employee serving

in a defense intelligence position pursuant to a time-limited appointment is not eligible for a permanent appointment to a Defense

Intelligence Senior Executive Service position (including a position

in which the employee is serving) unless the employee is selected

for the permanent appointment on a competitive basis.

‘‘(d) TIME-LIMITED APPOINTMENT DEFINED.—In this section, the

term ‘time-limited appointment’ means an appointment (subject

to the condition in subsection (b)) for a period not to exceed two

years.

‘‘§ 1609. Termination of defense intelligence employees

‘‘(a) TERMINATION AUTHORITY.—Notwithstanding any other

provision of law, the Secretary of Defense may terminate the

employment of any employee in a defense intelligence position

if the Secretary—

‘‘(1) considers that action to be in the interests of the

United States; and

‘‘(2) determines that the procedures prescribed in other

provisions of law that authorize the termination of the employment of such employee cannot be invoked in a manner consistent with the national security.

‘‘(b) FINALITY.—A decision by the Secretary of Defense to terminate the employment of an employee under this section is final

and may not be appealed or reviewed outside the Department

of Defense.

‘‘(c) NOTIFICATION TO CONGRESSIONAL COMMITTEES.—Whenever

the Secretary of Defense terminates the employment of an employee

under the authority of this section, the Secretary shall promptly

notify the congressional oversight committees of such termination.

‘‘(d) PRESERVATION OF RIGHT TO SEEK OTHER EMPLOYMENT.— Any termination of employment under this section does not affect

the right of the employee involved to seek or accept employment

with any other department or agency of the United States if that

employee is declared eligible for such employment by the Director

of the Office of Personnel Management.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2749

‘‘(e) LIMITATION ON DELEGATION.—The authority of the Secretary of Defense under this section may be delegated only to

the Deputy Secretary of Defense, the head of an intelligence component of the Department of Defense (with respect to employees

of that component), or the Secretary of a military department

(with respect to employees of that department). An action to terminate employment of such an employee by any such official may

be appealed to the Secretary of Defense.

‘‘§ 1610. Reductions and other adjustments in force

‘‘(a) IN GENERAL.—The Secretary of Defense shall prescribe

regulations for the separation of employees in defense intelligence

positions, including members of the Defense Intelligence Senior

Executive Service and employees in Intelligence Senior Level positions, during a reduction in force or other adjustment in force.

The regulations shall apply to such a reduction in force or other

adjustment in force notwithstanding sections 3501(b) and 3502 of

title 5.

‘‘(b) MATTERS TO BE GIVEN EFFECT.—The regulations shall

give effect to the following:

‘‘(1) Tenure of employment.

‘‘(2) Military preference, subject to sections 3501(a)(3) and

3502(b) of title 5.

‘‘(3) The veteran’s preference under section 3502(b) of

title 5.

‘‘(4) Performance.

‘‘(5) Length of service computed in accordance with the

second sentence of section 3502(a) of title 5.

‘‘(c) REGULATIONS RELATING TO DEFENSE INTELLIGENCE SES.—

The regulations relating to removal from the Defense Intelligence

Senior Executive Service in a reduction in force or other adjustment

in force shall be consistent with section 3595(a) of title 5.

‘‘(d) RIGHT OF APPEAL.—(1) The regulations shall provide a

right of appeal regarding a personnel action under the regulations.

The appeal shall be determined within the Department of Defense.

An appeal determined at the highest level provided in the regulations shall be final and not subject to review outside the Department

of Defense. A personnel action covered by the regulations is not

subject to any other provision of law that provides appellate rights

or procedures.

‘‘(2) Notwithstanding paragraph (1), a preference eligible

referred to in section 7511(a)(1)(B) of title 5 may elect to have

an appeal of a personnel action taken against the preference eligible

under the regulation determined by the Merit Systems Protection

Board instead of having the appeal determined within the Department of Defense. Section 7701 of title 5 shall apply to any such

appeal to the Merit Systems Protection Board.

‘‘(e) CONSULTATION WITH OPM.—Regulations under this section

shall be prescribed in consultation with the Director of the Office

of Personnel Management.’’.

(c) TRANSFER OF SECTION 1599.—Subtitle A of title 10, United

States Code, is amended by transferring section 1599 to chapter

83 of such title, inserting such section after section 1610 (as added

by subsection (b)), redesignating such section as section 1611, and

in subsection (f) striking out ‘‘means’’ and all that follows and

inserting in lieu thereof ‘‘includes the National Reconnaissance

Office and any intelligence component of a military department.’’.

Regulations.
110 STAT. 2750 PUBLIC LAW 104–201—SEPT. 23, 1996

(d) ADDITIONAL PROVISIONS.—Such chapter is further amended

by inserting after section 1611 (as so transferred and redesignated)

the following new sections:

‘‘§ 1612. Merit system principles and civil service protections:

applicability

‘‘(a) APPLICABILITY OF MERIT SYSTEM PRINCIPLES.—Section 2301

of title 5 shall apply to the exercise of authority under this subchapter (other than sections 1605 and 1611).

‘‘(b) CIVIL SERVICE PROTECTIONS.—(1) If, in the case of a position established under authority other than section 1601(a)(1) of

this title that is reestablished as an excepted service position under

that section, the provisions of law referred to in paragraph (2)

applied to the person serving in that position immediately before

the position is so reestablished and such provisions of law would

not otherwise apply to the person while serving in the

position as so reestablished, then such provisions of law shall,

subject to paragraph (3), continue to apply to the person with

respect to service in that position for as long as the person continues

to serve in the position without a break in service.

‘‘(2) The provisions of law referred to in paragraph (1) are

the following provisions of title 5:

‘‘(A) Section 2302, relating to prohibited personnel

practices.

‘‘(B) Chapter 75, relating to adverse actions.

‘‘(3)(A) Notwithstanding any provision of chapter 75 of title

5, an appeal of an adverse action by an individual employee covered

by paragraph (1) shall be determined within the Department of

Defense if the employee so elects.

‘‘(B) The Secretary of Defense shall prescribe the procedures

for initiating and determining appeals of adverse actions pursuant

to elections made under subparagraph (A).

‘‘§ 1613. Miscellaneous provisions

‘‘(a) COLLECTIVE BARGAINING AGREEMENTS.—Nothing in sections 1601 through 1604 and 1606 through 1610 may be construed

to impair the continued effectiveness of a collective bargaining

agreement with respect to an agency or office that is a successor

to an agency or office covered by the agreement before the

succession.

‘‘(b) NOTICE TO CONGRESS OF REGULATIONS.—The Secretary

of Defense shall notify Congress of any regulations prescribed to

carry out this subchapter (other than sections 1605 and 1611).

Such notice shall be provided by submitting a copy of the regulations

to the congressional oversight committees not less than 60 days

before such regulations take effect.

‘‘§ 1614. Definitions

‘‘In this subchapter:

‘‘(1) The term ‘defense intelligence position’ means a civilian

position as an intelligence officer or intelligence employee of

an intelligence component of the Department of Defense or

of a military department.

‘‘(2) The term ‘intelligence component of the Department

of Defense’ means any of the following:

‘‘(A) The National Security Agency.

‘‘(B) The Defense Intelligence Agency.

Procedures.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2751

‘‘(C) The National Imagery and Mapping Agency.

‘‘(D) Any other component of the Department of

Defense that performs intelligence functions and is designated by the Secretary of Defense as an intelligence

component of the Department of Defense.

‘‘(E) Any successor to a component specified in, or

designated pursuant to, this paragraph.

‘‘(3) The term ‘congressional oversight committees’ means—

‘‘(A) the Committee on Armed Services and the Select

Committee on Intelligence of the Senate; and

‘‘(B) the Committee on National Security and the

Permanent Select Committee on Intelligence of the House

of Representatives.

‘‘(4) The term ‘excepted service’ has the meaning given

such term in section 2103 of title 5.

‘‘(5) The term ‘preference eligible’ has the meaning given

such term in section 2108(3) of title 5.

‘‘(6) The term ‘Senior Executive Service position’ has the

meaning given such term in section 3132(a)(2) of title 5.

‘‘(7) The term ‘collective bargaining agreement’ has the

meaning given such term in section 7103(8) of title 5.’’.

(e) DESIGNATION OF NEW SUBCHAPTER II.—Chapter 83 of such

title is further amended by inserting after section 1614 (as added

by subsection (d)) the following:

‘‘SUBCHAPTER II—DEFENSE INTELLIGENCE AGENCY

PERSONNEL

‘‘Sec.

‘‘1621. Defense Intelligence Agency merit pay system.

‘‘1622. Uniform allowance: civilian employees.

‘‘1623. Financial assistance to certain employees in acquisition of critical skills.’’.

SEC. 1633. REPEAL OF SUPERSEDED SECTIONS AND CLERICAL AND

CONFORMING AMENDMENTS.

(a) REPEAL OF SEPARATE MILITARY DEPARTMENT AUTHORI- TIES.—Section 1590 of title 10, United States Code, is repealed.

(b) REPEAL OF SEPARATE NATIONAL SECURITY AGENCY AUTHORITIES.—The following provisions of law are repealed:

(1) Sections 2 and 4 of the National Security Agency Act

of 1959 (50 U.S.C. 402 note).

(2) Section 303 of the Internal Security Act of 1950 (50

U.S.C. 833).

(c) CLERICAL AMENDMENTS.—Title 10, United States Code, is

amended as follows:

(1) The heading for section 1605 is amended to read as

follows:

‘‘§ 1605. Benefits for certain employees assigned outside the

United States’’.

(2) The table of sections at the beginning of chapter 81

is amended by striking out the items relating to sections 1590

and 1599.

(3) The tables of chapters at the beginning of subtitle

A, and at the beginning of part II of subtitle A, are amended

by striking out the item relating to chapter 83 and inserting

in lieu thereof the following:

‘‘83. Civilian Defense Intelligence Employees ............................................. 1601’’.
110 STAT. 2752 PUBLIC LAW 104–201—SEPT. 23, 1996

(d) CONFORMING AMENDMENT.—Section 1621 of such title, as

transferred and redesignated by section 1632(a)(1), is amended

by striking out ‘‘and Central Imagery Office’’.

(e) CROSS REFERENCE AMENDMENTS.—Chapter 81 of title 10,

United States Code, is amended as follows:

(1) Section 1593(a)(3) is amended by striking out ‘‘section

1606’’ and inserting in lieu thereof ‘‘section 1622’’.

(2) Section 1596(c) is amended by striking out ‘‘section

1604(b)’’ and inserting in lieu thereof ‘‘section 1602’’.

SEC. 1634. OTHER PERSONNEL MANAGEMENT AUTHORITIES.

(a) APPLICABILITY OF FEDERAL LABOR-MANAGEMENT RELATIONS

SYSTEM.—Section 7103(a)(3) of title 5, United States Code, is

amended—

(1) by inserting ‘‘or’’ at the end of subparagraph (F);

(2) by striking out ‘‘; or’’ at the end of subparagraph (G)

and inserting in lieu thereof a period; and

(3) by striking out subparagraph (H).

(b) APPLICABILITY OF AUTHORITY AND PROCEDURES FOR IMPOSING CERTAIN ADVERSE ACTIONS.—Section 7511(b)(8) of such title

is amended by striking out ‘‘the National Security Agency’’ and

all that follows through ‘‘title 10’’ and inserting in lieu thereof

‘‘an intelligence component of the Department of Defense (as defined

in section 1614 of title 10), or an intelligence activity of a military

department covered under subchapter I of chapter 83 of title 10’’.

SEC. 1635. EFFECTIVE DATE.

This subtitle and the amendments made by this subtitle shall

take effect on October 1, 1996.

TITLE XVII—FEDERAL EMPLOYEE

TRAVEL REFORM

Sec. 1701. Short title.

Subtitle A—Relocation Benefits

Sec. 1711. Allowance for seeking permanent residence quarters.

Sec. 1712. Temporary quarters subsistence expenses allowance.

Sec. 1713. Modification of residence transaction expenses allowance.

Sec. 1714. Authority to pay for property management services.

Sec. 1715. Authority to transport a privately owned motor vehicle within the

continental United States.

Sec. 1716. Authority to pay limited relocation allowances to an employee who is

performing an extended assignment.

Sec. 1717. Authority to pay a home marketing incentive.

Sec. 1718. Revision and reenactment of additional provisions relating to relocation

expenses.

Subtitle B—Miscellaneous Provisions

Sec. 1721. Repeal of the long-distance telephone call certification requirement.

Sec. 1722. Transfer of authority to prescribe regulations.

Sec. 1723. Conforming and clerical amendments.

Sec. 1724. Assessment of cost savings.

Sec. 1725. Effective date and issuance of regulations.

SEC. 1701. SHORT TITLE.

This title may be cited as the ‘‘Federal Employee Travel Reform

Act of 1996’’.

5 USC 5701 note.

Federal

Employee Travel

Reform Act of

1996.

10 USC 1593

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2753

Subtitle A—Relocation Benefits

SEC. 1711. ALLOWANCE FOR SEEKING PERMANENT RESIDENCE

QUARTERS.

Section 5724a of title 5, United States Code, is amended to

read as follows:

‘‘§ 5724a. Relocation expenses of employees transferred or

reemployed

‘‘(a) An agency shall pay to or on behalf of an employee who

transfers in the interest of the Government, a per diem allowance

or the actual subsistence expenses, or a combination thereof, of

the immediate family of the employee for en route travel of the

immediate family between the employee’s old and new official

stations.

‘‘(b)(1) An agency may pay to or on behalf of an employee

who transfers in the interest of the Government between official

stations located within the United States—

‘‘(A) the expenses of transportation of the employee and

the employee’s spouse for travel to seek permanent residence

quarters at a new official station; and

‘‘(B) either—

‘‘(i) a per diem allowance or the actual subsistence

expenses (or a combination of both); or

‘‘(ii) an amount for subsistence expenses.

‘‘(2) Expenses may be allowed under paragraph (1) only for

one round trip in connection with each change of station of the

employee.’’.

SEC. 1712. TEMPORARY QUARTERS SUBSISTENCE EXPENSES

ALLOWANCE.

Section 5724a of title 5, United States Code, as amended by

section 1712, is further amended by adding at the end the following

new subsection:

‘‘(c)(1) An agency may pay to or on behalf of an employee

who transfers in the interest of the Government—

‘‘(A) actual subsistence expenses of the employee and the

employee’s immediate family for a period of up to 60 days

while the employee or family is occupying temporary quarters

when the new official station is located within the United

States; or

‘‘(B) an amount for subsistence expenses instead of the

actual subsistence expenses authorized in subparagraph (A)

of this paragraph.

‘‘(2) The period authorized in paragraph (1) of this subsection

for payment of expenses for residence in temporary quarters may

be extended up to an additional 60 days if the head of the agency

concerned or the designee of such head of the agency determines

that there are compelling reasons for the continued occupancy of

temporary quarters.

‘‘(3) The regulations implementing paragraph (1)(A) shall

prescribe daily rates and amounts for subsistence expenses per

individual.’’.

Regulations.
110 STAT. 2754 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 1713. MODIFICATION OF RESIDENCE TRANSACTION EXPENSES

ALLOWANCE.

(a) EXPENSES OF SALE.—Section 5724a of title 5, United States

Code, as amended by section 1712, is further amended by adding

at the end the following new subsection:

‘‘(d)(1) An agency shall pay to or on behalf of an employee

who transfers in the interest of the Government, expenses of the

sale of the residence (or the settlement of an unexpired lease)

of the employee at the old official station and purchase of a residence

at the new official station that are required to be paid by the

employee, when the old and new official stations are located within

the United States.

‘‘(2) An agency shall pay to or on behalf of an employee who

transfers in the interest of the Government from a post of duty

located outside the United States to an official station within the

United States (other than the official station within the United

States from which the employee was transferred when assigned

to the foreign tour of duty)—

‘‘(A) expenses required to be paid by the employee for

the sale of the residence (or the settlement of an unexpired

lease) of the employee at the old official station from which

the employee was transferred when the employee was assigned

to the post of duty located outside the United States; and

‘‘(B) expenses required to be paid by the employee for

the purchase of a residence at the new official station within

the United States.

‘‘(3) Reimbursement of expenses under paragraph (2) of this

subsection shall not be allowed for any sale (or settlement of an

unexpired lease) or purchase transaction that occurs prior to official

notification that the employee’s return to the United States would

be to an official station other than the official station from which

the employee was transferred when assigned to the post of duty

outside the United States.

‘‘(4) Reimbursement for brokerage fees on the sale of the residence and other expenses under this subsection may not exceed

those customarily charged in the locality where the residence is

located.

‘‘(5) Reimbursement may not be made under this subsection

for losses incurred by the employee on the sale of the residence.

‘‘(6) This subsection applies regardless of whether title to the

residence or the unexpired lease is—

‘‘(A) in the name of the employee alone;

‘‘(B) in the joint names of the employee and a member

of the employee’s immediate family; or

‘‘(C) in the name of a member of the employee’s immediate

family alone.

‘‘(7)(A) In connection with the sale of the residence at the

old official station, reimbursement under this subsection shall not

exceed 10 percent of the sale price.

‘‘(B) In connection with the purchase of a residence at the

new official station, reimbursement under this subsection shall

not exceed 5 percent of the purchase price.’’.

(b) RELOCATION SERVICES.—Section 5724c of title 5, United

State Code, is amended to read as follows:

Applicability.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2755

‘‘§ 5724c. Relocation services

‘‘Under regulations prescribed under section 5738 of this title,

each agency may enter into contracts to provide relocation services

to agencies and employees for the purpose of carrying out this

subchapter. An agency may pay a fee for such services. Such services include arranging for the purchase of a transferred employee’s

residence.’’.

SEC. 1714. AUTHORITY TO PAY FOR PROPERTY MANAGEMENT

SERVICES.

Section 5724a of title 5, United States Code, as amended by

section 1713, is further amended—

(1) in subsection (d), by adding at the end the following:

‘‘(8) An agency may pay to or on behalf of an employee who

transfers in the interest of the Government expenses of property

management services, instead of expenses under paragraph (2)

or (3) of this subsection for sale of the employee’s residence, when

the agency determines that such transfer is advantageous and

cost-effective for the Government.’’; and

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

‘‘(e) An agency may pay to or on behalf of an employee who

transfers in the interest of the Government, the expenses of property

management services when the employee transfers to a post of

duty outside the United States. Such payment shall terminate

upon return of the employee to an official station within the United

States.’’.

SEC. 1715. AUTHORITY TO TRANSPORT A PRIVATELY OWNED MOTOR

VEHICLE WITHIN THE CONTINENTAL UNITED STATES.

(a) IN GENERAL.—Section 5727 of title 5, United States Code,

is amended—

(1) by redesignating subsections (c) through (e) as subsections (d) through (f), respectively;

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

subsection:

‘‘(c) Under regulations prescribed under section 5738 of this

title, the privately owned motor vehicle or vehicles of an employee,

including a new appointee or a student trainee for whom travel

and transportation expenses are authorized under section 5723

of this title, may be transported at Government expense to a new

official station of the employee when the agency determines that

such transport is advantageous and cost-effective to the Government.’’; and

(3) in subsection (e) (as so redesignated), by inserting ‘‘or

(c)’’ after ‘‘subsection (b)’’.

(b) AVAILABILITY OF APPROPRIATIONS.—(1) Section 5722(a) of

title 5, United States Code, is amended—

(A) by striking out ‘‘and’’ at the end of paragraph (1);

(B) by striking out the period at the end of paragraph

(2) and inserting in lieu thereof ‘‘; and’’; and

(C) by adding at the end the following:

‘‘(3) the expenses of transporting a privately owned motor

vehicle as authorized under section 5727(c) of this title.’’.

(2) Section 5723(a) of title 5, United States Code, is amended—

(A) by striking out ‘‘and’’ at the end of paragraph (1);

(B) by inserting ‘‘and’’ after the semicolon at the end of

paragraph (2); and
110 STAT. 2756 PUBLIC LAW 104–201—SEPT. 23, 1996

(C) by adding at the end the following:

‘‘(3) the expenses of transporting a privately owned motor

vehicle as authorized under section 5727(c) of this title;’’.

SEC. 1716. AUTHORITY TO PAY LIMITED RELOCATION ALLOWANCES

TO AN EMPLOYEE WHO IS PERFORMING AN EXTENDED

ASSIGNMENT.

Subchapter II of chapter 57 of title 5, United States Code,

as amended by section 1605, is further amended by adding at

the end the following new section:

‘‘§ 5737. Relocation expenses of an employee who is performing an extended assignment

‘‘(a) Under regulations prescribed under section 5738 of this

title, an agency may pay to or on behalf of an employee assigned

from the employee’s official station to a duty station for a period

of not less than six months and not greater than 30 months,

the following expenses in lieu of payment of expenses authorized

under subchapter I of this chapter:

‘‘(1) Travel expenses to and from the assignment location

in accordance with section 5724 of this title.

‘‘(2) Transportation expenses of the immediate family and

household goods and personal effects to and from the assignment location in accordance with section 5724 of this title.

‘‘(3) A per diem allowance for en route travel of the employee’s immediate family to and from the assignment location

in accordance with section 5724a(a) of this title.

‘‘(4) Travel and transportation expenses of the employee

and spouse to seek new residence quarters at the assignment

location in accordance with section 5724a(b) of this title.

‘‘(5) Subsistence expenses of the employee and the employee’s immediate family while occupying temporary quarters

upon commencement and termination of the assignment in

accordance with section 5724a(c) of this title.

‘‘(6) An amount, in accordance with section 5724a(f), to

be used by the employee for miscellaneous expenses of this

title.

‘‘(7) The expenses of transporting a privately owned motor

vehicle or vehicles to the assignment location in accordance

with section 5727 of this title.

‘‘(8) An allowance as authorized under section 5724b of

this title for Federal, State, and local income taxes incurred

on reimbursement of expenses paid under this section or on

services provided in kind under this section.

‘‘(9) Expenses of nontemporary storage of household goods

and personal effects as defined in section 5726(a) of this title,

subject to the limitation that the weight of the household goods

and personal effects stored, together with the weight of property

transported under section 5724(a) of this title, may not exceed

the total maximum weight which could be transported in

accordance with section 5724(a) of this title.

‘‘(10) Expenses of property management services.

‘‘(b) An agency shall not make payment under this section

to or on behalf of the employee for expenses incurred after termination of the temporary assignment.’’.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2757

SEC. 1717. AUTHORITY TO PAY A HOME MARKETING INCENTIVE.

Subchapter IV of chapter 57 of title 5, United States Code,

is amended by adding at the end the following new section:

‘‘§ 5756. Home marketing incentive payment

‘‘(a) Under regulations prescribed under subsection (b), an

agency may pay to an employee who transfers in the interest

of the Government an amount to encourage the employee to aggressively market the employee’s residence at the official station from

which transferred when—

‘‘(1) the residence is entered into a relocation services program established under a contract in accordance with section

5724c of this title to arrange for the purchase of the residence;

‘‘(2) the employee finds a buyer who completes the purchase

of the residence through the program; and

‘‘(3) the sale of the residence results in a reduced cost

to the Government.

‘‘(b)(1) The Administrator of General Services shall prescribe

regulations to carry out this section.

‘‘(2) The regulations shall include a limitation on the maximum

amount payable with respect to an employee’s residence. The

Administrator shall establish the limitation in consultation with

the Director of the Office of Management and Budget. For fiscal

years 1997 and 1998, the maximum amount shall be the amount

equal to five percent of the sale price of the residence.’’.

SEC. 1718. REVISION AND REENACTMENT OF ADDITIONAL PROVISIONS RELATING TO RELOCATION EXPENSES.

Section 5724a of title 5, United States Code, as amended by

section 1714, is further amended by adding at the end the following

new subsections:

‘‘(f)(1) Subject to paragraph (2), an employee who is reimbursed

under subsections (a) through (e) of this section or section 5724(a)

of this title is entitled to an amount for miscellaneous expenses—

‘‘(A) not to exceed two weeks’ basic pay, if such employee

has an immediate family; or

‘‘(B) not to exceed one week’s basic pay, if such employee

does not have an immediate family.

‘‘(2) Amounts paid under paragraph (1) may not exceed amounts

determined at the maximum rate payable for a position at GS–

13 of the General Schedule.

‘‘(g) A former employee separated by reason of reduction in

force or transfer of function who within one year after the separation

is reemployed by a nontemporary appointment at a different geographical location from that where the separation occurred, may

be allowed and paid the expenses authorized by sections 5724,

5725, 5726(b), and 5727 of this title, and may receive the benefits

authorized by subsections (a) through (f) of this section, in the

same manner as though the employee had been transferred in

the interest of the Government without a break in service to the

location of reemployment from the location where separated.

‘‘(h) Payments for subsistence expenses, including amounts in

lieu of per diem or actual subsistence expenses or a combination

thereof, authorized under this section may not exceed the maximum

payment allowed under regulations which implement section 5702

of this title.

Regulations.
110 STAT. 2758 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(i) Subsections (a), (b), and (c) shall be implemented under

regulations issued under section 5738 of this title.

‘‘(j) For purposes of subsections (c), (d), and (e), the term ‘United

States’ includes the District of Columbia, the Commonwealth of

Puerto Rico, the Commonwealth of the Northern Mariana Islands,

the territories and possessions of the United States, and the areas

and installations in the Republic of Panama that are made available

to the United States pursuant to the Panama Canal Treaty of

1977 and related agreements (as described in section 3(a) of the

Panama Canal Act of 1979 (22 U.S.C. 3602(a))).’’.

Subtitle B—Miscellaneous Provisions

SEC. 1721. REPEAL OF THE LONG-DISTANCE TELEPHONE CALL

CERTIFICATION REQUIREMENT.

Section 1348 of title 31, United States Code, is amended—

(1) by striking the last sentence of subsection (a)(2);

(2) by striking subsection (b); and

(3) by redesignating subsections (c) and (d) as subsections

(b) and (c), respectively.

SEC. 1722. TRANSFER OF AUTHORITY TO PRESCRIBE REGULATIONS.

Subchapter II of chapter 57 of title 5, United States Code,

as amended by section 1716, is further amended by adding at

the end the following new section:

‘‘§ 5738. Regulations

‘‘(a)(1) Except as specifically provided in this subchapter, the

Administrator of General Services shall prescribe regulations necessary for the administration of this subchapter.

‘‘(2) The Administrator of General Services shall include in

the regulations authority for the head of an agency or his designee

to waive any limitation of this subchapter or in any implementing

regulation for any employee relocating to or from a remote or

isolated location who would suffer hardship if the limitation were

not waived. A waiver of a limitation under authority provided

in the regulations pursuant to this paragraph shall be effective

notwithstanding any other provision of this subchapter.

‘‘(b) In prescribing regulations for the implementation of section

5724b of this title, the Administrator of General Services shall

consult with the Secretary of the Treasury.

‘‘(c) The Secretary of Defense shall prescribe regulations necessary for the implementation of section 5735 of this title.’’.

SEC. 1723. CONFORMING AND CLERICAL AMENDMENTS.

(a) CROSS REFERENCES.—(1) Title 5, United States Code, is

amended as follows:

(A) Section 3375 is amended—

(i) in subsection (a)(3), by striking out ‘‘section

5724a(a)(1)’’ and inserting in lieu thereof ‘‘section 5724a(a)’’;

(ii) in subsection (a)(4), by striking out ‘‘section

5724a(a)(3)’’ and inserting in lieu thereof ‘‘section 5724a(c)’’;

and

(iii) in subsection (a)(5), by striking out ‘‘section

5724a(b)’’ and inserting in lieu thereof ‘‘section 5724a(g)’’;

and
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2759

(B) Section 5724(e) is amended by striking out ‘‘section

5724a(a), (b)’’ and inserting in lieu thereof ‘‘section 5724a (a)

through (f)’’.

(2) Section 707 of title 38, United States Code, is amended—

(A) in subsection (a)(6), by striking out ‘‘Section 5724a(a)(3)’’

and inserting in lieu thereof ‘‘Section 5724a(c)’’; and

(B) in subsection (a)(7), by striking out ‘‘Section 5724a(a)(4)’’

and inserting in lieu thereof ‘‘Section 5724a(d)’’.

(3) The Public Health Service Act is amended as follows:

(A) Section 501(g)(2)(A) (42 U.S.C. 290aa(g)(2)(A)) is

amended by striking out ‘‘5724a(a)(1), 5724a(a)(3)’’ and inserting in lieu thereof ‘‘5724a(a), 5724a(c)’’.

(B) Section 925(f)(2)(A) (42 U.S.C. 299c–4(f)(2)(A)) is

amended by striking out ‘‘5724a(a)(1), 5724a(a)(3)’’ and inserting in lieu thereof ‘‘5724a(a), 5724a(c)’’.

(b) REGULATIONS.—Title 5, United States Code, is amended

as follows:

(1) Sections 5722, 5723, 5724, (in subsections (a), (b), and

(c)), 5724b, 5726 (in subsections (b) and (c)), 5727(b), 5728

(in subsections (a), (b), and (c)(1)), and 5729 (in subsections

(a) and (b)) of title 5, United States Code, are amended by

striking out ‘‘Under such regulations as the President may

prescribe’’, and inserting in lieu thereof ‘‘Under regulations

prescribed under section 5738 of this title’’.

(2) Section 5724 of title 5, United States Code, is

amended—

(A) by striking out ‘‘under regulations prescribed by

the President’’ each place it appears in subsections (c)

and (e) and inserting in lieu thereof ‘‘under regulations

prescribed under section 5738 of this title’’; and

(B) in subsection (f), by striking out ‘‘under the regulations of the President’’ and inserting in lieu thereof ‘‘under

regulations prescribed under section 5738 of this title’’.

(3) Section 5726(a) of title 5, United States Code, is

amended by striking out ‘‘as the President may by regulation

authorize’’ and inserting in lieu thereof ‘‘as authorized under

regulations prescribed under section 5738 of this title’’.

(4) Section 5731(a) of title 5, United States Code, is

amended by striking out ‘‘in accordance with regulations prescribed by the President’’ and inserting in lieu thereof ‘‘in

accordance with regulations prescribed under section 5738 of

this title’’.

(c) CLERICAL AMENDMENTS.—The table of sections at the beginning of chapter 57 of title 5, United States Code, as amended

by section 1605, is further amended—

(1) by inserting after the item relating to section 5736

the following:

‘‘5737. Relocation expenses of an employee who is performing an extended

assignment. ‘‘5738. Regulations.’’;

and

(2) by inserting at the end the following:

‘‘5756. Home marketing incentive payment.’’.

SEC. 1724. ASSESSMENT OF COST SAVINGS.

No later than one year after the effective date set forth in

section 1725(a), the Comptroller General shall submit to the

5 USC 5722 note.
110 STAT. 2760 PUBLIC LAW 104–201—SEPT. 23, 1996

Committee on Governmental Affairs of the Senate and the Committee on Government Reform and Oversight of the House of Representatives an assessment of the costs of Federal travel administration that are saved as a result of the amendments made by this

title and the regulations prescribed to carry out the amendments.

SEC. 1725. EFFECTIVE DATE AND ISSUANCE OF REGULATIONS.

(a) EFFECTIVE DATE.—The amendments made by this title shall

take effect 180 days after the date of the enactment of this Act.

(b) REGULATIONS.—The Administrator of General Services shall,

not later than the effective date set forth under subsection (a),

issue final regulations implementing the amendments made by

this title.

TITLE XVIII—FEDERAL CHARTER FOR

THE FLEET RESERVE ASSOCIATION

Sec. 1801. Recognition and grant of Federal charter.

Sec. 1802. Powers.

Sec. 1803. Purposes.

Sec. 1804. Service of process.

Sec. 1805. Membership.

Sec. 1806. Board of directors.

Sec. 1807. Officers.

Sec. 1808. Restrictions.

Sec. 1809. Liability.

Sec. 1810. Maintenance and inspection of books and records.

Sec. 1811. Audit of financial transactions.

Sec. 1812. Annual report.

Sec. 1813. Reservation of right to alter, amend, or repeal charter.

Sec. 1814. Tax-exempt status required as condition of charter.

Sec. 1815. Termination.

Sec. 1816. Definition of State.

SEC. 1801. RECOGNITION AND GRANT OF FEDERAL CHARTER.

The Fleet Reserve Association, a nonprofit corporation organized under the laws of the State of Delaware, is recognized as

such and granted a Federal charter.

SEC. 1802. POWERS.

The Fleet Reserve Association (in this title referred to as the

‘‘association’’) shall have only those powers granted to it through

its bylaws and articles of incorporation filed in the State of Delaware

and subject to the laws of that State.

SEC. 1803. PURPOSES.

The purposes of the association are those provided in its bylaws

and articles of incorporation and shall include the following:

(1) Upholding and defending the Constitution of the United

States.

(2) Aiding and maintaining an adequate naval defense

for the United States.

(3) Assisting the recruitment of the best personnel available

for the United States Navy, United States Marine Corps, and

United States Coast Guard.

(4) Providing for the welfare of the personnel who serve

in the United States Navy, United States Marine Corps, and

United States Coast Guard.

(5) Continuing to serve loyally the United States Navy,

United States Marine Corps, and United States Coast Guard.

36 USC 5603.

36 USC 5602.

36 USC 5601.

Delaware.

5 USC 5722 note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2761

(6) Preserving the spirit of shipmanship by providing assistance to shipmates and their families.

(7) Instilling love of the United States and the flag and

promoting soundness of mind and body in the youth of the

United States.

SEC. 1804. SERVICE OF PROCESS.

With respect to service of process, the association shall comply

with the laws of the State of Delaware and those States in which

it carries on its activities in furtherance of its corporate purposes.

SEC. 1805. MEMBERSHIP.

Except as provided in section 1808(g), eligibility for membership

in the association and the rights and privileges of members shall

be as provided in the bylaws and articles of incorporation of the

association.

SEC. 1806. BOARD OF DIRECTORS.

Except as provided in section 1808(g), the composition of the

board of directors of the association and the responsibilities of

the board shall be as provided in the bylaws and articles of incorporation of the association and in conformity with the laws of the

State of Delaware.

SEC. 1807. OFFICERS.

Except as provided in section 1808(g), the positions of officers

of the association and the election of members to such positions

shall be as provided in the bylaws and articles of incorporation

of the association and in conformity with the laws of the State

of Delaware.

SEC. 1808. RESTRICTIONS.

(a) INCOME AND COMPENSATION.—No part of the income or

assets of the association may inure to the benefit of any member,

officer, or director of the association or be distributed to any such

individual during the life of this charter. Nothing in this subsection

may be construed to prevent the payment of reasonable compensation to the officers and employees of the association or reimbursement for actual and necessary expenses in amounts approved by

the board of directors.

(b) LOANS.—The association may not make any loan to any

member, officer, director, or employee of the association.

(c) ISSUANCE OF STOCK AND PAYMENT OF DIVIDENDS.—The

association may not issue any shares of stock or declare or pay

any dividends.

(d) DISCLAIMER OF CONGRESSIONAL OR FEDERAL APPROVAL.—

The association may not claim the approval of the Congress or

the authorization of the Federal Government for any of its activities

by virtue of this title.

(e) CORPORATE STATUS.—The association shall maintain its status as a corporation organized and incorporated under the laws

of the State of Delaware.

(f) CORPORATE FUNCTION.—The association shall function as

an educational, patriotic, civic, historical, and research organization

under the laws of the State of Delaware.

(g) NONDISCRIMINATION.—In establishing the conditions of

membership in the association and in determining the requirements

for serving on the board of directors or as an officer of the association,

36 USC 5608.

36 USC 5607.

36 USC 5606.

36 USC 5605.

36 USC 5604.
110 STAT. 2762 PUBLIC LAW 104–201—SEPT. 23, 1996

the association may not discriminate on the basis of race,

color, religion, sex, handicap, age, or national origin.

SEC. 1809. LIABILITY.

The association shall be liable for the acts of its officers, directors, employees, and agents whenever such individuals act within

the scope of their authority.

SEC. 1810. MAINTENANCE AND INSPECTION OF BOOKS AND RECORDS.

(a) BOOKS AND RECORDS OF ACCOUNT.—The association shall

keep correct and complete books and records of account and minutes

of any proceeding of the association involving any of its members,

the board of directors, or any committee having authority under

the board of directors.

(b) NAMES AND ADDRESSES OF MEMBERS.—The association shall

keep at its principal office a record of the names and addresses

of all members having the right to vote in any proceeding of the

association.

(c) RIGHT TO INSPECT BOOKS AND RECORDS.—All books and

records of the association may be inspected by any member having

the right to vote in any proceeding of the association, or by any

agent or attorney of such member, for any proper purpose at any

reasonable time.

(d) APPLICATION OF STATE LAW.—This section may not be construed to contravene any applicable State law.

SEC. 1811. AUDIT OF FINANCIAL TRANSACTIONS.

The first section of the Act entitled ‘‘An Act to provide for

audit of accounts of private corporations established under Federal

law’’, approved August 30, 1964 (36 U.S.C. 1101), is amended by

adding at the end the following:

‘‘(77) Fleet Reserve Association.’’.

SEC. 1812. ANNUAL REPORT.

The association shall annually submit to Congress a report

concerning the activities of the association during the preceding

fiscal year. The annual report shall be submitted on the same

date as the report of the audit required by reason of the amendment

made in section 1811. The annual report shall not be printed

as a public document.

SEC. 1813. RESERVATION OF RIGHT TO ALTER, AMEND, OR REPEAL

CHARTER.

The right to alter, amend, or repeal this title is expressly

reserved to Congress.

SEC. 1814. TAX-EXEMPT STATUS REQUIRED AS CONDITION OF

CHARTER.

If the association fails to maintain its status as an organization

exempt from taxation as provided in the Internal Revenue Code

of 1986 the charter granted in this title shall terminate.

SEC. 1815. TERMINATION.

The charter granted in this title shall expire if the association

fails to comply with any of the provisions of this title.

SEC. 1816. DEFINITION OF STATE.

For purposes of this title, the term ‘‘State’’ includes the

District of Columbia, the Commonwealth of Puerto Rico, the

36 USC 5615.

36 USC 5614.

36 USC 5613.

36 USC 5612.

36 USC 5611.

36 USC 5610.

36 USC 5609.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2763

Commonwealth of the Northern Mariana Islands, and the territories

and possessions of the United States.

DIVISION B—MILITARY CONSTRUCTION

AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

This division may be cited as the ‘‘Military Construction

Authorization Act for Fiscal Year 1997’’.

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.

Sec. 2105. Land acquisition, National Ground Intelligence Center, Charlottesville,

Virginia.

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), and, in the case of the projects described in paragraphs

(2) and (3) of section 2104(b), other amounts appropriated pursuant

to authorizations enacted after this Act for the projects, 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 Total

Alabama .................... Fort Rucker ................................. $3,250,000

California .................. Army project, Naval Weapons

Station, Concord ..................... $27,000,000

Camp Roberts ............................. $5,500,000

Colorado .................... Fort Carson ................................. $17,550,000

District of Columbia Fort McNair ................................ $6,900,000

Georgia ...................... Fort Benning ............................... $53,400,000

Fort McPherson .......................... $3,500,000

Fort Stewart, Hunter Army Air

Field.

$6,000,000

Hawaii ....................... Schofield Barracks ..................... $16,500,000

Kansas ....................... Fort Riley .................................... $26,000,000

Kentucky ................... Fort Campbell ............................. $51,100,000

Fort Knox .................................... $45,000,000

New Jersey ............... Picatinny Arsenal ....................... $5,000,000

New Mexico ............... White Sands Missile Range ....... $41,000,000

New York .................. Fort Drum ................................... $11,400,000

North Carolina ......... Fort Bragg ................................... $14,000,000

Texas ......................... Fort Hood .................................... $47,300,000

Fort Sam Houston ...................... $3,100,000

Virginia ..................... Fort Eustis .................................. $3,550,000

National Ground Intelligence

Center, Charlottesville ........... $1,000,000

Washington ............... Fort Lewis ................................... $54,600,000

Military

Construction

Authorization

Act for Fiscal

Year 1997.
110 STAT. 2764 PUBLIC LAW 104–201—SEPT. 23, 1996

Army: Inside the United States—Continued

State Installation or location Total

CONUS Classified .... Classified Locations ................... $4,600,000

Total: .................................... $447,250,000

(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2104(a)(2), the Secretary of the Army may acquire real property

and carry out military construction projects for the locations outside

the United States, and in the amounts set forth in the following

table:

Army: Outside the United States

Country Installation or location Total

Germany ........................ Lincoln Village, Darmstadt ... $7,300,000

Spinelli Barracks, Mannheim $8,100,000

Taylor Barracks, Mannheim $9,300,000

Italy ............................... Camp Ederle ........................... $3,100,000

Korea ............................. Camp Casey ............................ $16,000,000

Camp Red Cloud .................... $14,000,000

Overseas Classified ...... Classified Locations ............... $64,000,000

Total: ................................ $121,800,000

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 Total

Hawaii .................... Schofield Barracks ..... 54 Units ............... $10,000,000

North Carolina ....... Fort Bragg .................. 88 Units ............... $9,800,000

Pennsylvania .......... Tobyhanna Army

Depot.

200 Units ............. $890,000

Texas ....................... Fort Bliss .................... 64 Units ............... $11,000,000

Fort Hood .................... 140 Units ............. $18,500,000

Total: ............ $50,190,000

(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 $2,963,000.

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
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2765

improve existing military family housing units in an amount not

to exceed $105,350,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1996, for

military construction, land acquisition, and military family housing

functions of the Department of the Army in the total amount

of $1,942,557,000 as follows:

(1) For military construction projects inside the United

States authorized by section 2101(a), $394,250,000.

(2) For military construction projects outside the United

States authorized by section 2101(b), $121,800,000.

(3) For unspecified minor military construction projects

authorized by section 2805 of title 10, United States Code,

$5,000,000.

(4) For architectural and engineering services and construction design under section 2807 of title 10, United States Code,

$50,538,000.

(5) For military family housing functions:

(A) For construction and acquisition, planning and

design, and improvement of military family housing and

facilities, $158,503,000.

(B) For support of military family housing (including

the functions described in section 2833 of title 10, United

States Code), $1,212,466,000.

(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

2101 of this Act may not exceed—

(1) the total amount authorized to be appropriated under

paragraphs (1) and (2) of subsection (a);

(2) $31,000,000 (the balance of the amount authorized

under section 2101(a) for the construction of the National Range

Control Center at White Sands Missile Range, New Mexico);

and

(3) $22,000,000 (the balance of the amount authorized

under section 2101(a) for the whole barracks complex renewal

at Fort Knox, Kentucky).

SEC. 2105. LAND ACQUISITION, NATIONAL GROUND INTELLIGENCE

CENTER, CHARLOTTESVILLE, VIRGINIA.

(a) ACQUISITION AUTHORIZED.—Subject to subsection (b), the

Secretary of the Army may acquire real property for the National

Ground Intelligence Center, Charlottesville, Virginia.

(b) REQUIREMENT RELATING TO ACQUISITION.—The Secretary

may not acquire real property pursuant to the authorization in

subsection (a) until the Secretary certifies to the congressional

defense committees, based on the results of an assessment of property currently owned or operated by the Federal Government in

the vicinity of Charlottesville, Virginia, that the acquisition of the

property would provide the most cost-effective means of securing

a location for the National Ground Intelligence Center that satisfies

the mission requirements of the center.

(c) FUNDING.—Of the amounts authorized to be appropriated

by section 2104(a)(1), $1,000,000 shall be available for the acquisition
110 STAT. 2766 PUBLIC LAW 104–201—SEPT. 23, 1996

of real property pursuant to the authorization in subsection

(a).

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. Beach replenishment, Naval Air Station, North Island, California.

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 projects described in paragraphs

(2) and (3) of section 2204(b), other amounts appropriated pursuant

to authorizations enacted after this Act for the projects, 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

Arizona .................... Navy Detachment, Camp Navajo $3,920,000

California ................ Marine Corps Air-Ground Combat Center, Twentynine Palms $4,020,000

Marine Corps Air Station, Camp

Pendleton ................................... $6,240,000

Marine Corps Base, Camp Pendleton ......................................... $51,630,000

Marine Corps Recruit Detachment, San Diego ........................ $8,150,000

Naval Air Station, North Island $86,502,000

Naval Command Control &

Ocean Surveillance Center,

San Diego .................................. $1,960,000

Naval Facility, San Clemente Island.$17,000,000

Naval Station, San Diego ............ $7,050,000

Connecticut ............. Naval Submarine Base, New

London.

$13,830,000

District of Columbia Naval District, Washington ......... $19,300,000

Florida ..................... Naval Air Station, Key West ....... $2,250,000

Naval Station, Mayport ............... $2,800,000

Georgia .................... Naval Submarine Base, Kings

Bay.

$1,550,000

Hawaii ..................... Marine Corps, Air Station,

Kaneohe Bay.

$20,080,000

Naval Station, Pearl Harbor ....... $19,600,000

Naval Submarine Base, Pearl

Harbor.

$35,890,000

Idaho ....................... Naval Surface Warfare Center,

Bayview.

$7,150,000

Illinois ..................... Naval Hospital, Great Lakes ....... $15,200,000
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2767

Navy: Inside the United States—Continued

State Installation or location Amount

Naval Training Center, Great

Lakes.

$22,900,000

Indiana .................... Naval Surface Warfare Center,

Crane.

$5,000,000

Maryland ................. Naval Air Warfare Center, Patuxent River .............................. $1,270,000

United States Naval Academy .... $10,480,000

Mississippi .............. Navy Project, Stennis Space Center.$7,960,000

Nevada .................... Naval Air Station, Fallon ............ $21,630,000

North Carolina ....... Marine Corps Air Station, Cherry Point.$1,630,000

Marine Corps Air Station, New

River.

$20,290,000

Marine Corps Base, Camp

Lejeune.

$20,750,000

Pennsylvania .......... Philadelphia Naval Shipyard ...... $8,300,000

South Carolina ....... Marine Corps Recruit Depot,

Parris Island ............................. $2,540,000

Texas ....................... Naval Air Station, Kingsville ...... $1,810,000

Naval Station, Ingleside .............. $16,850,000

Virginia ................... Armed Forces Staff College, Norfolk ............................................. $12,900,000

Marine Corps Combat Development Command, Quantico ....... $14,570,000

Naval Station, Norfolk ................. $56,120,000

Naval Surface Warfare Center,

Dahlgren.

$8,030,000

Washington ............. Naval Station, Everett ................. $25,740,000

Naval Undersea Warfare Center,

Keyport ...................................... $6,800,000

CONUS Various ..... Defense access roads .................... $300,000

Total: ...................................... $589,992,000

(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2204(a)(2), and, in the case of the project described in section

2204(b)(4), other amounts appropriated pursuant to authorizations

enacted after this Act for the project, 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

Bahrain ................... Administrative Support Unit,

Bahrain.

$5,980,000

Greece ..................... Naval Support Activity, Souda

Bay.

$7,050,000

Italy ......................... Naval Air Station, Sigonella ........ $15,700,000

Naval Support Activity, Naples $8,620,000

Puerto Rico ............. Naval Station, Roosevelt Roads $23,600,000
110 STAT. 2768 PUBLIC LAW 104–201—SEPT. 23, 1996

Navy: Outside the United States—Continued

Country Installation or location Amount

United Kingdom ..... Joint Maritime Communications

Center, St. Mawgan .................. $4,700,000

Total: ...................................... $65,650,000

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

Arizona .............. Marine Corps Air

Station, Yuma ... Ancillary Facility.$709,000

California ........... Marine Corps AirGround Combat

Center,

Twentynine

Palms ................. Ancillary Facilities.$2,938,000

Marine Corps

Base, Camp

Pendleton .......... 202 Units ........ $29,483,000

Naval Air Station,

Lemoore ............. 276 Units ........ $39,837,000

Navy Public Works

Center, San

Diego .................. 366 Units ........ $48,719,000

Florida ............... Naval Station,

Mayport.

100 Units ........ $10,000,000

Hawaii ............... Marine Corps Air

Station,

Kaneohe Bay ..... 54 Units .......... $11,676,000

Navy Public Works

Center, Pearl

Harbor ............... 264 Units ........ $52,586,000

Maine ................. Naval Air Station

Brunswick ......... 92 Units .......... $10,925,000

Maryland ........... Naval Air Warfare

Center, Patuxent River ........... Ancillary Facility.

$1,233,000

North Carolina Marine Corps

Base, Camp

Lejeune .............. Ancillary Facility.$845,000

Marine Corps

Base, Camp

Lejeune .............. 94 Units .......... $10,110,000
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2769

Navy: Family Housing—Continued

State Installation Purpose Amount

South Carolina Marine Corps Air

Station, Beaufort ..................... 140 Units ........ $14,000,000

Texas .................. Corpus Christi

Naval Complex 104 Units ........ $11,675,000

Naval Air Station,

Kingsville .......... 48 Units .......... $7,550,000

Virginia .............. AEGIS Combat

Systems Center,

Wallops Island 20 Units .......... $2,975,000

Naval Security

Group Activity,

Northwest .......... Ancillary Facility.$741,000

Washington ....... Naval Station, Everett.100 Units ........ $15,015,000

Naval Submarine

Base, Bangor ..... Ancillary Facility.$934,000

Total: ....... $281,951,000

(b) PLANNING AND DESIGN.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2204(a)(5)(A), the Secretary of the Navy may carry out architectural

and engineering services and construction design activities with

respect to the construction or improvement of military family housing units in an amount not to exceed $22,552,000.

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 $205,383,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1996, for

military construction, land acquisition, and military family housing

functions of the Department of the Navy in the total amount of

$2,213,731,000 as follows:

(1) For military construction projects inside the United

States authorized by section 2201(a), $579,312,000.

(2) For military construction projects outside the United

States authorized by section 2201(b), $51,550,000.

(3) For unspecified minor construction projects authorized

by section 2805 of title 10, United States Code, $5,115,000.

(4) For architectural and engineering services and construction design under section 2807 of title 10, United States Code,

$49,927,000.

(5) For military family housing functions:
110 STAT. 2770 PUBLIC LAW 104–201—SEPT. 23, 1996

(A) For construction and acquisition, planning and

design, and improvement of military family housing and

facilities, $499,886,000.

(B) For support of military housing (including functions

described in section 2833 of title 10, United States Code),

$1,014,241,000.

(6) For the construction of a bachelor enlisted quarters

at the Naval Construction Battalion Center, Port Hueneme,

California, authorized by section 2201(a) of the Military

Construction Authorization Act for Fiscal Year 1996 (division

B of Public Law 104–106; 110 Stat. 525), $7,700,000.

(7) For the construction of a Strategic Maritime Research

Center at the Naval War College, Newport, Rhode Island,

authorized by section 2201(a) of the Military Construction

Authorization Act for Fiscal Year 1995 (division B of Public

Law 103–337; 108 Stat. 3031), $8,000,000.

(8) For the construction of the large anachoic 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.

(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);

(2) $5,200,000 (the balance of the amount authorized under

section 2201(a) for the construction of a bachelors enlisted

quarters at Naval Hospital, Great Lakes, Illinois);

(3) $5,480,000 (the balance of the amount authorized under

section 2201(a) for the construction of a chiller system upgrade

at the United States Naval Academy, Maryland); and

(4) $14,100,000 (the balance of the amount authorized

under section 2201(b) for the construction of a bachelor enlisted

quarters at Naval Station, Roosevelt Roads, Puerto Rico).

(c) ADJUSTMENT.—The total amount authorized to be appropriated pursuant to paragraphs (1) through (8) of subsection (a)

is the sum of the amounts authorized to be appropriated in such

paragraphs, reduced by $12,000,000, which represents the combination of project savings resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes.

SEC. 2205. BEACH REPLENISHMENT, NAVAL AIR STATION, NORTH

ISLAND, CALIFORNIA.

(a) COST-SHARING AGREEMENT.—With regard to the portion

of the military construction project for Naval Air Station, North

Island, California, authorized by section 2201(a) and involving onshore and near-shore beach replenishment, the Secretary of the

Navy shall enter into an agreement with the State of California

and local governments in the vicinity of the project, under which

the State and local governments agree to cover not less than 50

percent of the cost incurred by the Secretary to carry out the

beach replenishment portion of the project. Within amounts appropriated for the project, Federal expenditures may not exceed

$9,630,000 for beach replenishment.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2771

(b) ACTIVITIES PENDING AGREEMENT.—The Secretary shall not

delay commencement of, or activities under, the construction project

described in subsection (a), including the beach replenishment

portion of the project, pending the execution of the cost-sharing

agreement.

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. Elimination of authority to carry out fiscal year 1995 project,

Spangdahlem Air Force Base, Germany.

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND

ACQUISITION PROJECTS.

(a) INSIDE THE UNITED STATES.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2304(a)(1), the Secretary of the Air Force may acquire real property

and carry out military construction projects for the installations

and locations inside the United States, and in the amounts, set

forth in the following table:

Air Force: Inside the United States

State Installation or location Amount

Alabama ........................ Maxwell Air Force Base ........ $7,875,000

Alaska ............................ Elmendorf Air Force Base ..... $21,530,000

Eielson Air Force Base .......... $3,900,000

King Salmon Air Force Base $5,700,000

Arizona .......................... Davis–Monthan Air Force

Base.

$9,920,000

Luke Air Force Base .............. $6,700,000

Arkansas ....................... Little Rock Air Force Base .... $18,105,000

California ...................... Beale Air Force Base ............. $14,425,000

Edwards Air Force Base ........ $20,080,000

Travis Air Force Base ............ $14,980,000

Vandenberg Air Force Base $3,290,000

Colorado ........................ Buckley Air National Guard

Base.

$17,960,000

Falcon Air Force Station ....... $2,095,000

Peterson Air Force Base ........ $20,720,000

United States Air Force

Academy.

$12,165,000

Delaware ....................... Dover Air Force Base ............. $19,980,000

Florida ........................... Eglin Air Force Base .............. $4,590,000

Eglin Auxiliary Field 9 .......... $6,825,000

Patrick Air Force Base .......... $2,595,000

Tyndall Air Force Base .......... $3,600,000

Georgia .......................... Moody Air Force Base ............ $3,350,000

Robins Air Force Base ........... $25,045,000

Idaho .............................. Mountain Home Air Force

Base.

$15,945,000

Kansas ........................... McConnell Air Force Base ..... $19,130,000

Louisiana ....................... Barksdale Air Force Base ...... $4,890,000
110 STAT. 2772 PUBLIC LAW 104–201—SEPT. 23, 1996

Air Force: Inside the United States—Continued

State Installation or location Amount

Maryland ....................... Andrews Air Force Base ........ $8,140,000

Mississippi ..................... Keesler Air Force Base .......... $14,465,000

Montana ........................ Malstrom Air Force Base ...... $6,300,000

Nevada ........................... Indian Springs Air Force

Auxiliary Air Field ............. $4,690,000

Nellis Air Force Base ............. $9,900,000

New Mexico ................... Cannon Air Force Base .......... $7,100,000

Kirtland Air Force Base ........ $10,000,000

New Jersey .................... McGuire Air Force Base ........ $8,080,000

North Carolina .............. Pope Air Force Base .............. $5,915,000

Seymour Johnson Air Force

Base.

$11,280,000

North Dakota ................ Grand Forks Air Force Base $12,470,000

Minot Air Force Base ............. $3,940,000

Ohio ............................... Wright–Patterson Air Force

Base.

$7,400,000

Oklahoma ...................... Tinker Air Force Base ........... $9,880,000

South Carolina .............. Charleston Air Force Base .... $37,410,000

Shaw Air Force Base ............. $14,465,000

South Dakota ................ Ellsworth Air Force Base ...... $4,150,000

Tennessee ...................... Arnold Engineering Development Center ........................ $12,481,000

Texas ............................. Brooks Air Force Base ........... $5,400,000

Dyess Air Force Base ............. $12,295,000

Kelly Air Force Base .............. $3,250,000

Lackland Air Force Base ....... $9,413,000

Sheppard Air Force Base ...... $9,400,000

Utah ............................... Hill Air Force Base ................ $3,690,000

Virginia .......................... Langley Air Force Base ......... $8,005,000

Washington ................... Fairchild Air Force Base ....... $18,155,000

McChord Air Force Base ....... $57,065,000

Wyoming ........................ F.E. Warren Air Force Base $3,700,000

Total: ................................ $603,834,000

(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 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 ........................ Ramstein Air Force Base ....... $5,370,000

Spangdahlem Air Base .......... $1,890,000

Italy ............................... Aviano Air Base ..................... $10,060,000

Korea ............................. Osan Air Base ........................ $9,780,000

Turkey ........................... Incirlik Air Base ..................... $7,160,000

United Kingdom ........... Croughton Royal Air Force

Base.

$1,740,000

Lakenheath Royal Air Force

Base.

$17,525,000
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2773

Air Force: Outside the United States—Continued

Country Installation or location Amount

Mildenhall Royal Air Force

Base.

$6,195,000

Overseas Classified ...... Classified Locations ............... $18,395,000

Total: ................................ $78,115,000

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 Installation Purpose Amount

Alaska ..................... Eielson Air Force Base 72 Units ............... $21,127,000

Eielson Air Force Base Ancillary Facility $2,950,000

California ................ Beale Air Force Base 56 Units ............... $8,893,000

Los Angeles Air Force

Base ......................... 25 Units ............... $6,425,000

Travis Air Force Base 70 Units ............... $8,631,000

Vandenberg Air Force

Base ......................... 112 Units ............. $20,891,000

District of Columbia.Bolling Air Force Base 40 Units ............... $5,000,000

Florida .................... Eglin Auxiliary Field

9.

1 Unit .................. $249,000

MacDill Air Force

Base.

56 Units ............... $8,822,000

Patrick Air Force Base Ancillary Facility $2,430,000

Tyndall Air Force

Base.

42 Units ............... $6,000,000

Georgia ................... Robins Air Force Base 46 Units ............... $5,252,000

Louisiana ................ Barksdale Air Force

Base ......................... 80 Units ............... $9,570,000

Massachusetts ........ Hanscom Air Force

Base ......................... 32 Units ............... $5,100,000

Missouri .................. Whiteman Air Force

Base ......................... 68 Units ............... $9,600,000

Montana ................. Malstrom Air Force

Base ......................... 98 Units ............... $15,688,000

Nevada .................... Nellis Air Force Base 50 Units ............... $7,955,000

New Mexico ............ Kirtland Air Force

Base ......................... 50 Units ............... $5,450,000

North Dakota ......... Grand Forks Air Force

Base ......................... 66 Units ............... $7,784,000

Minot Air Force Base 46 Units ............... $8,740,000

Texas ....................... Lackland Air Force

Base ......................... 82 Units ............... $11,500,000

Lackland Air Force

Base ......................... Ancillary Facility $800,000
110 STAT. 2774 PUBLIC LAW 104–201—SEPT. 23, 1996

Air Force: Family Housing—Continued

State Installation Purpose Amount

Washington ............ McChord Air Force

Base ......................... 50 Units ............... $5,659,000

Total: ............ $184,516,000

(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 $9,590,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and

using amounts appropriated pursuant to the authorization of appropriations in section 2304(a)(5)(A), the Secretary of the Air Force

may improve existing military family housing units in an amount

not to exceed $123,650,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1996, for

military construction, land acquisition, and military family housing

functions of the Department of the Air Force in the total amount

of $1,894,594,000 as follows:

(1) For military construction projects inside the United

States authorized by section 2301(a), $603,834,000.

(2) For military construction projects outside the United

States authorized by section 2301(b), $78,115,000.

(3) For unspecified minor construction projects authorized

by section 2805 of title 10, United States Code, $9,328,000.

(4) For architectural and engineering services and construction design under section 2807 of title 10, United States Code,

$50,687,000.

(5) For military housing functions:

(A) For construction and acquisition, planning and

design, and improvement of military family housing and

facilities, $317,756,000.

(B) For support of military family housing (including

the functions described in section 2833 of title 10, United

States Code), $829,474,000.

(6) For the construction of a corrosion control facility at

Tinker Air Force Base, Oklahoma, authorized by section 2301(a)

of the Military Construction Authorization Act for Fiscal Year

1996 (division B of Public Law 104–106; 110 Stat. 530),

$5,400,000.

(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.—

Notwithstanding the cost variations authorized by section 2853

of title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section

2301 of this Act may not exceed the total amount authorized to

be appropriated under paragraphs (1) and (2) of subsection (a).
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2775

SEC. 2305. ELIMINATION OF AUTHORITY TO CARRY OUT FISCAL YEAR

1995 PROJECT, SPANGDAHLEM AIR FORCE BASE,

GERMANY.

(a) ELIMINATION OF PROJECT.—The table in section 2301(b)

of the Military Construction Authorization Act for Fiscal Year 1995

(division B of Public Law 103–337; 108 Stat. 3037) is amended

in the item relating to Spangdahlem Air Base, Germany, by striking

out ‘‘$9,473,000’’ in the amount column and inserting in lieu thereof

‘‘$7,373,000’’, such reduction corresponding to the project to upgrade

the sewage and storm water system at the installation.

(b) CONFORMING AMENDMENT TO AUTHORIZATION OF APPROPRIA- TIONS.—Section 2304(a) of the Military Construction Authorization

Act for Fiscal Year 1995 (division B of Public Law 103–337; 108

Stat. 3038) is amended—

(1) in the matter preceding paragraph (1), by striking out ‘‘$1,601,602,000’’ and inserting in lieu thereof ‘‘$1,599,502,000’’;

and

(2) in paragraph (2), by striking out ‘‘$38,273,000’’ and inserting in lieu thereof ‘‘$36,173,000’’.

TITLE XXIV—DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition projects.

Sec. 2402. Military housing planning and design.

Sec. 2403. Improvements to military family housing units.

Sec. 2404. Military housing improvement program.

Sec. 2405. Energy conservation projects.

Sec. 2406. Authorization of appropriations, Defense Agencies.

Sec. 2407. Reduction in amounts authorized to be appropriated for fiscal year 1996

Defense Agencies military construction, land acquisition, and military

family housing functions.

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

2406(a)(1), and, in the case of the projects described in paragraphs

(2) and (3) of section 2406(b), other amounts appropriated pursuant

to authorizations enacted after this Act for the projects, 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 Installation or location Amount

Chemical Demilitarization Program ............. Pueblo Chemical Activity,

Colorado .............................. $179,000,000

Defense Finance & Accounting Service ........ Charleston, South Carolina ... $6,200,000

Fort Sill, Oklahoma ............... $12,864,000

Gentile Air Force Station,

Ohio ..................................... $11,400,000

Griffiss Air Force Base, New

York ..................................... $10,200,000

Loring Air Force Base, Maine $6,900,000

Naval Training Center, Orlando, Florida ...................... $2,600,000
110 STAT. 2776 PUBLIC LAW 104–201—SEPT. 23, 1996

Defense Agencies: Inside the United States—Continued

Agency Installation or location Amount

Norton Air Force Base, California ................................... $13,800,000

Offutt Air Force Base, Nebraska .................................. $7,000,000

Rock Island Arsenal, Illinois $14,400,000

Defense Intelligence

Agency ........................ Bolling Air Force Base, District of Columbia ................. $6,790,000

Defense Logistics

Agency ........................ Altus Air Force Base, Oklahoma .................................... $3,200,000

Andrews Air Force Base,

Maryland ............................. $12,100,000

Barksdale Air Force Base,

Louisiana ............................. $4,300,000

Defense Construction Supply

Center, Columbus, Ohio ..... $600,000

Defense Distribution, San

Diego, California ................. $15,700,000

Elmendorf Air Force Base,

Alaska .................................. $21,000,000

McConnell Air Force Base,

Kansas ................................. $2,200,000

Naval Air Facility, El Centro,

California ............................ $5,700,000

Naval Air Station, Fallon,

Nevada ................................ $2,100,000

Naval Air Station, Oceana,

Virginia ............................... $1,500,000

Shaw Air Force Base, South

Carolina ............................... $2,900,000

Travis Air Force Base, California ................................... $15,200,000

Defense Medical Facility Office .................... Andrews Air Force Base,

Maryland ............................. $15,500,000

Charleston Air Force Base,

South Carolina .................... $1,800,000

Fort Bliss, Texas .................... $6,600,000

Fort Bragg, North Carolina $11,400,000

Fort Hood, Texas .................... $1,950,000

Marine Corps Base, Camp

Pendleton, California ......... $3,300,000

Maxwell Air Force Base, Alabama .................................... $25,000,000

Naval Air Station, Key West,

Florida ................................. $15,200,000

Naval Air Station, Norfolk,

Virginia ............................... $1,250,000

Naval Air Station, Lemoore,

California ............................ $38,000,000

Special Operations

Command ................... Fort Bragg, North Carolina $14,000,000
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2777

Defense Agencies: Inside the United States—Continued

Agency Installation or location Amount

Fort Campbell, Kentucky ...... $4,200,000

MacDill Air Force Base, Florida ........................................ $9,600,000

Naval Amphibious Base,

Coronado, California .......... $7,700,000

Naval Station, Ford Island,

Pearl Harbor, Hawaii ......... $12,800,000

Total: ................................ $525,454,000

(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2406(a)(2), the Secretary of Defense may acquire real property

and carry out military construction projects for the installations

and locations outside the United States, and in the amounts, set

forth in the following table:

Defense Agencies: Outside the United States

Agency Installation or location Amount

Defense Logistics

Agency ........................ Moron Air Base, Spain .......... $12,958,000

Naval Air Station, Sigonella,

Italy ..................................... $6,100,000

Defense Medical Facility Office .................... Administrative Support Unit,

Bahrain, Bahrain ............... $4,600,000

Total: ................................ $23,658,000

SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.

Using amounts appropriated pursuant to the authorization of

appropriation in section 2406(a)(14)(A), the Secretary of Defense

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

$500,000.

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 appropriation in section 2406(a)(14)(A), the Secretary of Defense may

improve existing military family housing units in an amount not

to exceed $3,871,000.

SEC. 2404. MILITARY HOUSING IMPROVEMENT PROGRAM.

(a) AVAILABILITY OF FUNDS FOR CREDIT TO FAMILY HOUSING

IMPROVEMENT FUND.—(1) Of the amount authorized to be appro- priated pursuant to section 2406(a)(14)(C), $25,000,000 shall be

available for credit to the Department of Defense Family Housing

Improvement Fund established by section 2883(a)(1) of title 10,

United States Code.

(2) Of the amount authorized to be appropriated pursuant to section 2406(a)(14)(D), $5,000,000 shall be available for credit
110 STAT. 2778 PUBLIC LAW 104–201—SEPT. 23, 1996

to the Department of Defense Military Unaccompanied Housing

Improvement Fund established by section 2883(a)(2) of such title.

(b) USE OF FUNDS.—(1) The Secretary of Defense may use

funds credited to the Department of Defense Family Housing

Improvement Fund under subsection (a)(1) to carry out any activities authorized by subchapter IV of chapter 169 of such title with

respect to military family housing.

(2) The Secretary of Defense may use funds credited to the

Department of Defense Military Unaccompanied Housing Improvement Fund under subsection (a)(2) to carry out any activities

authorized by subchapter IV of chapter 169 of such title with

respect to military unaccompanied housing.

SEC. 2405. ENERGY CONSERVATION PROJECTS.

Using amounts appropriated pursuant to the authorization of

appropriations in section 2406(a)(12), the Secretary of Defense may

carry out energy conservation projects under section 2865 of title

10, United States Code.

SEC. 2406. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 1996, 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 $3,379,703,000 as follows:

(1) For military construction projects inside the United

States authorized by section 2401(a), $344,854,000.

(2) For military construction projects outside the United

States authorized by section 2401(b), $23,658,000.

(3) For military construction projects at Naval Hospital,

Portsmouth, Virginia, hospital replacement, 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), $24,000,000.

(4) 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), $72,000,000.

(5) For military construction projects at Fort Bragg, North

Carolina, hospital replacement, authorized by section 2401(a)

of the Military Construction Authorization Act for Fiscal Year

1993 (106 Stat. 2599), $89,000,000.

(6) For military construction projects at Pine Bluff Arsenal,

Arkansas, authorized by section 2401(a) of the Military

Construction Authorization Act for Fiscal Year 1995 (division

B of the Public Law 103–337; 108 Stat. 3040), $46,000,000.

(7) For military construction projects at Umatilla Army

Depot, Oregon, authorized by section 2401(a) of the Military

Construction Authorization Act for Fiscal Year 1995 (108 Stat.

3040), $64,000,000.

(8) For military construction projects at the Defense

Finance and Accounting Service, Columbus, Ohio, authorized

by section 2401(a) of the Military Construction Authorization

Act of Fiscal Year 1996 (division B of Public Law 104–106;

110 Stat. 535), $20,822,000.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2779

(9) For contingency construction projects of the Secretary

of Defense under section 2804 of title 10, United States Code,

$4,500,000.

(10) For unspecified minor construction projects under section 2805 of title 10, United States Code, $21,874,000.

(11) For architectural and engineering services and

construction design under section 2807 of title 10, United States

Code, $12,239,000.

(12) For energy conservation projects under section 2865

of title 10, United States Code, $47,765,000.

(13) 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), $2,507,476,000.

(14) For military family housing functions:

(A) For improvement and planning of military family

housing and facilities, $4,371,000.

(B) For support of military housing (including functions

described in section 2833 of title 10, United States Code),

$30,963,000, of which not more than $25,637,000 may be

obligated or expended for the leasing of military family

housing units worldwide.

(C) For credit to the Department of Defense Family

Housing Improvement Fund as authorized by section

2404(a)(1) of this Act, $25,000,000.

(D) For credit to the Department of Defense Military

Unaccompanied Housing Improvement Fund as authorized

by section 2404(a)(2) of this Act, $5,000,000.

(E) For the Homeowners Assistance Program as

authorized by section 2832 of title 10, United States Code,

$36,181,000, to remain available until expended.

(b) LIMITATION ON 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);

(2) $179,000,000 (the balance of the amount authorized

under section 2401(a) of this Act for the construction of a

chemical demilitarization facility at Pueblo Army Depot,

Colorado); and

(3) $1,600,000 (the balance of the amount authorized under

section 2401(a) of this Act for the construction of a replacement

facility for the medical and dental clinic, Key West Naval

Air Station, Florida).

SEC. 2407. REDUCTION IN AMOUNTS AUTHORIZED TO BE APPROPRIATED FOR FISCAL YEAR 1996 DEFENSE AGENCIES

MILITARY CONSTRUCTION, LAND ACQUISITION, AND MILITARY FAMILY HOUSING FUNCTIONS.

Section 2405 of the Military Construction Authorization Act

for Fiscal Year 1996 (division B of Public Law 104–106; 110 Stat.

537) is amended by adding at the end the following new subsection:

‘‘(c) ADJUSTMENT.—The total amount authorized to be appropriated pursuant to paragraphs (1) through (11) of subsection (a)

is the sum of the amounts authorized to be appropriated in such
110 STAT. 2780 PUBLIC LAW 104–201—SEPT. 23, 1996

paragraphs, reduced by $7,000,000, which represents the combination of project savings resulting from favorable bids, reduced overhead costs, and cancellations due to force structure changes.’’.

TITLE XXV—NORTH ATLANTIC TREATY

ORGANIZATION SECURITY INVESTMENT PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.

Sec. 2502. Authorization of appropriations, NATO.

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

The Secretary of Defense may make contributions for the North

Atlantic Treaty Organization Security Investment 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, 1996, for contributions by the Secretary of Defense under section 2806 of title 10, United States

Code, for the share of the United States of the cost of projects

for the North Atlantic Treaty Security Investment program as

authorized by section 2501, in the amount of $172,000,000.

TITLE XXVI—GUARD AND RESERVE

FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land acquisition

projects.

Sec. 2602. Authorization and funding for construction and improvement of Naval

Reserve Centers.

Sec. 2603. Upgrade Air National Guard facilities, Bangor International Airport,

Maine.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND

LAND ACQUISITION PROJECTS.

There are authorized to be appropriated for fiscal years beginning after September 30, 1996, 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 1803 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,

$59,194,000; and

(B) for the Army Reserve, $55,543,000.

(2) For the Department of the Navy, for the Naval and

Marine Corps Reserve, $32,779,000.

(3) For the Department of the Air Force—

(A) for the Air National Guard of the United States,

$188,505,000; and
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2781

(B) for the Air Force Reserve, $52,805,000.

SEC. 2602. AUTHORIZATION AND FUNDING FOR CONSTRUCTION AND

IMPROVEMENT OF NAVAL RESERVE CENTERS.

(a) ARMY RESERVE CENTERS.—Using amounts appropriated

under the heading ‘‘MILITARY CONSTRUCTION, NAVAL RESERVE’’ in

the Military Construction Appropriations Act, 1995 (Public Law

103–307; 108 Stat. 1661), for the construction of a Naval Reserve

Center in Seattle, Washington, the Secretary of the Army may

carry out a military construction project for the construction of

an Army Reserve Center at Fort Lawton, Washington, in the total

amount of $5,200,000, of which $700,000 may be used for program

and design activities relating to such construction.

(b) NAVAL RESERVE FACILITIES.—Using amounts appropriated

under the heading ‘‘MILITARY CONSTRUCTION, NAVAL RESERVE’’ in

the Military Construction Appropriations Act, 1995 (Public Law

103–307; 108 Stat. 1661), for the construction of a Naval Reserve

Center in Seattle, Washington, the Secretary of the Navy may

carry out—

(1) a military construction project for the construction of

an addition to the Naval Reserve Center in Tacoma, Washington, in the total amount of $4,200,000;

(2) unspecified minor construction at Naval Reserve facilities in the total amount of $500,000; and

(3) planning and design activities with respect to improvements at Naval Reserve facilities in the total amount of

$500,000.

SEC. 2603. UPGRADE AIR NATIONAL GUARD FACILITIES, BANGOR

INTERNATIONAL AIRPORT, MAINE.

(a) PROJECT AUTHORIZED.—Using amounts appropriated pursuant to the authorization of appropriations in section 2601(3)(A)

and amounts appropriated pursuant to authorizations of appropriations enacted after the date of the enactment of this Act, the

Secretary of the Air Force may carry out a construction project

to upgrade Air National Guard base and support facilities at Bangor

International Airport, Maine. The Secretary may contract for

architectural and engineering services and construction design services in connection with the construction project.

(b) LIMITATION ON TOTAL COST OF PROJECT.—The total cost

of the construction project authorized by subsection (a) may not

exceed $13,000,000.

(c) FISCAL YEAR 1997 FUNDING.—Of the amount authorized

to be appropriated in section 2601(3)(A), $7,000,000 shall be available to carry out the construction project authorized by subsection

(a).

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 1994 projects.

Sec. 2703. Extension of authorizations of certain fiscal year 1993 projects.

Sec. 2704. Extension of authorizations of certain fiscal year 1992 projects.

Sec. 2705. Effective date.
110 STAT. 2782 PUBLIC LAW 104–201—SEPT. 23, 1996

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 Security Investment

program (and authorizations of appropriations therefor) shall expire

on the later of—

(1) October 1, 1999; or

(2) the date of the enactment of an Act authorizing funds

for military construction for fiscal year 2000.

(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 Security Investment program (and authorizations of appropriations therefor), for which appropriated funds have

been obligated before the later of—

(1) October 1, 1999; or

(2) the date of the enactment of an Act authorizing funds

for fiscal year 2000 for military construction projects, land

acquisition, family housing projects and facilities, or contributions to the North Atlantic Treaty Organization Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR

1994 PROJECTS.

(a) EXTENSIONS.—Notwithstanding section 2701 of the Military

Construction Authorization Act for Fiscal Year 1994 (division B

of Public Law 103–160; 107 Stat. 1880), authorizations for the

projects set forth in the tables in subsection (b), as provided in

section 2101, 2102, 2201, 2301, or 2601 of that Act, shall remain

in effect until October 1, 1997, or the date of the enactment of

an Act authorizing funds for military construction for fiscal year

1998, whichever is later.

(b) TABLES.—The tables referred to in subsection (a) are as

follows:

Army: Extension of 1994 Project Authorizations

State Installation or location Project Amount

New Jersey ........... Picatinny Arsenal ....... Advance Warhead

Development Facility ................... $4,400,000

North Carolina ..... Fort Bragg .................. Land Acquisition $15,000,000

Wisconsin .............. Fort McCoy ................. Family Housing

Construction (16

units) ................. $2,950,000
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2783

Navy: Extension of 1994 Project Authorizations

State or location Installation or location Project Amount

California .............. Camp Pendleton Marine Corps Base ...... Sewage Facility .... $7,930,000

Connecticut ........... New London Naval

Submarine Base ...... Hazardous Waste

Transfer Facility $1,450,000

New Jersey ........... Earle Naval Weapons

Station ..................... Explosives Holding

Yard ................... $1,290,000

Virginia ................. Oceana Naval Air Station ........................... Jet Engine Test

Cell Replacement .................. $5,300,000

Various Locations Various Locations ....... Land Acquisition

Inside the United States ........... $540,000

Various Locations Various Locations ....... Land Acquisition

Outside the

United States .... $800,000

Air Force: Extension of 1994 Project Authorizations

State Installation or location Project Amount

Alaska ................... Eielson Air Force Base Upgrade Water

Treatment Plant $3,750,000

Elmendorf Air Force

Base ......................... Corrosion Control

Facility .............. $5,975,000

California .............. Beale Air Force Base Educational Center ...................... $3,150,000

Florida ................... Tyndall Air Force

Base.

Base Supply Logistics Center ......... $2,600,000

Mississippi ............ Keesler Air Force

Base.

Upgrade Student

Dormitory .......... $4,500,000

North Carolina ..... Pope Air Force Base ... Add To and Alter

Dormitories ....... $4,300,000

Virginia ................. Langley Air Force

Base ......................... Fire Station .......... $3,850,000

Army National Guard: Extension of 1994 Project

Authorizations

State Installation or location Project Amount

Alabama ................ Birmingham ................ Aviation Support

Facility .............. $4,907,000
110 STAT. 2784 PUBLIC LAW 104–201—SEPT. 23, 1996

Army National Guard: Extension of 1994 Project

Authorizations—Continued

State Installation or location Project Amount

Arizona .................. Marana ........................ Organizational

Maintenance

Shop ................... $553,000

Marana ........................ Dormitory/Dining

Facility .............. $2,919,000

California .............. Fresno ......................... Organizational

Maintenance

Shop Modification ..................... $905,000

Van Nuys .................... Armory Addition $6,518,000

New Mexico .......... White Sands Missile

Range ....................... Organizational

Maintenance

Shop ................... $2,940,000

Tactical Site .......... $1,995,000

MATES ................. $3,570,000

Pennsylvania ........ Indiantown Gap ......... State Military

Building ............. $9,200,000

Johnstown ................... Armory Addition/

Flight Facility ... $5,004,000

Johnstown ................... Armory .................. $3,000,000

South Carolina ..... Summerville ............... Organizational

Maintenance

Shop ................... $834,000

SEC. 2703. 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 1601 of that Act and extended by section

2702 of the Military Construction Authorization Act for Fiscal Year

1996 (division B of Public Law 104–106; 110 Stat. 541), shall

remain in effect until October 1, 1997, or the date of the enactment

of an Act authorizing funds for military construction for fiscal

year 1998, whichever is later.

(b) TABLES.—The tables referred to in subsection (a) are as

follows:

Army: Extension of 1993 Project Authorization

State Installation or location Project Amount

Arkansas ................ Pine Bluff Arsenal ...... Ammunition Demilitarization

Support Facility ..................... $15,000,000
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2785

Air Force: Extension of 1993 Project Authorization

Country Installation or location Project Amount

Portugal .................. Lajes Field .................. Water Wells ........ $865,000

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

New Mexico ............ Clayton ........................ Armory ................ $1,400,000

SEC. 2704. 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 table in subsection (b), as provided in

section 2201 of that Act and extended by section 2702(a) of the

Military Construction Authorization Act for Fiscal Year 1995 (division B of Public Law 103–337; 108 Stat. 3047) and section 2703(a)

of the Military Construction Authorization Act for Fiscal Year 1996

(division B of Public Law 104–106; 110 Stat. 543), shall remain

in effect until October 1, 1997, or the date of the enactment of

an Act authorizing funds for military construction for fiscal year

1998, whichever is later.

(b) TABLE.—The table referred to in subsection (a) is 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

SEC. 2705. EFFECTIVE DATE.

Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take

effect on the later of—

(1) October 1, 1996; or

(2) the date of the enactment of this Act.
110 STAT. 2786 PUBLIC LAW 104–201—SEPT. 23, 1996

TITLE XXVIII—GENERAL PROVISIONS

Subtitle A—Military Construction Program and Military Family Housing

Changes

Sec. 2801. Increase in certain thresholds for unspecified minor construction

projects.

Sec. 2802. Redesignation of North Atlantic Treaty Organization Infrastructure

program.

Sec. 2803. Improvements to family housing units.

Sec. 2804. Availability of funds for planning, execution, and administration of

contracts for family housing and unaccompanied housing.

Subtitle B—Defense Base Closure and Realignment

Sec. 2811. Restoration of authority for certain intragovernment transfers under

1988 base closure law.

Sec. 2812. Contracting for certain services at facilities remaining on closed installations.

Sec. 2813. Authority to compensate owners of manufactured housing.

Sec. 2814. Additional purpose for which adjustment and diversification assistance

is authorized.

Sec. 2815. Payment of stipulated penalties assessed under CERCLA in connection

with Loring Air Force Base, Maine.

Sec. 2816. Plan for utilization, reutilization, or disposal of Mississippi Army Ammunition Plant.

Subtitle C—Land Conveyances

PART I—ARMY CONVEYANCES

Sec. 2821. Transfer of lands, Arlington National Cemetery, Arlington, Virginia.

Sec. 2822. Land transfer, Fort Sill, Oklahoma.

Sec. 2823. Land conveyance, Army Reserve Center, Rushville, Indiana.

Sec. 2824. Land conveyance, Army Reserve Center, Anderson, South Carolina.

Sec. 2825. Land conveyance, Army Reserve Center, Montpelier, Vermont.

Sec. 2826. Land conveyance, Crafts Brothers Reserve Training Center, Manchester,

New Hampshire.

Sec. 2827. Land conveyance, Pine Bluff Arsenal, Arkansas.

Sec. 2828. Reaffirmation of land conveyances, Fort Sheridan, Illinois.

PART II—NAVY CONVEYANCES

Sec. 2831. Land transfer, Potomac Annex, District of Columbia.

Sec. 2832. Land exchange, St. Helena Annex, Norfolk Naval Shipyard, Virginia.

Sec. 2833. Land conveyance, Calverton Pine Barrens, Naval Weapons Industrial

Reserve Plant, Calverton, New York.

Sec. 2834. Land conveyance, former naval reserve facility, Lewes, Delaware.

Sec. 2835. Modification of land conveyance authority, Naval Reserve Center,

Seattle, Washington.

Sec. 2836. Release of condition on reconveyance of transferred land, Guam.

Sec. 2837. Lease to facilitate construction of reserve center, Naval Air Station,

Meridian, Mississippi.

PART III—AIR FORCE CONVEYANCES

Sec. 2841. Land conveyance, Radar Bomb Scoring Site, Belle Fourche, South

Dakota.

Sec. 2842. Conveyance of primate research complex and Air Force-owned chimpanzees, Holloman Air Force Base, New Mexico.

PART IV—OTHER CONVEYANCES

Sec. 2851. Land conveyance, Tatum Salt Dome Test Site, Mississippi.

Sec. 2852. Land conveyance, William Langer Jewel Bearing Plant, Rolla, North

Dakota.

Sec. 2853. Land conveyance, Air Force Plant No. 85, Columbus, Ohio.

Sec. 2854. Modification of boundaries of White Sands National Monument and

White Sands Missile Range.

Subtitle D—Other Matters

Sec. 2861. Authority to grant easements for rights-of-way.

Sec. 2862. Authority to enter into cooperative agreements for the management of

cultural resources on military installations.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2787

Sec. 2863. Demonstration project for installation and operation of electric power

distribution system at Youngstown Air Reserve Station, Ohio.

Sec. 2864. Renovation of the Pentagon reservation.

Sec. 2865. Plan for repairs and stabilization of the historic district at the Forest

Glen Annex of Walter Reed Medical Center, Maryland.

Sec. 2866. Naming of range at Camp Shelby, Mississippi.

Sec. 2867. Designation of Michael O’Callaghan military hospital.

Sec. 2868. Naming of building at the Uniformed Services University of the Health

Sciences.

Subtitle A—Military Construction Program

and Military Family Housing Changes

SEC. 2801. INCREASE IN CERTAIN THRESHOLDS FOR UNSPECIFIED

MINOR CONSTRUCTION PROJECTS.

(a) O&M FUNDING FOR PROJECTS.—Section 2805(c)(1)(B) of title

10, United States Code, is amended by striking out ‘‘$300,000’’

and inserting in lieu thereof ‘‘$500,000’’.

(b) O&M FUNDING FOR RESERVE COMPONENT FACILITIES.—Subsection (b) of section 18233a of such title is amended by striking

out ‘‘$300,000’’ and inserting in lieu thereof ‘‘$500,000’’.

(c) NOTIFICATION FOR EXPENDITURES AND CONTRIBUTIONS FOR

RESERVE COMPONENT FACILITIES.—Subsection (a)(1) of such section

18233a is amended by striking out ‘‘$400,000’’ and inserting in

lieu thereof ‘‘$1,500,000’’.

SEC. 2802. REDESIGNATION OF NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE PROGRAM.

(a) REDESIGNATION.—Subsection (b) of section 2806 of title 10,

United States Code, is amended by striking out ‘‘North Atlantic

Treaty Organization Infrastructure program’’ and inserting in lieu

thereof ‘‘North Atlantic Treaty Organization Security Investment

program’’.

(b) REFERENCES.—Any reference to the North Atlantic Treaty

Organization Infrastructure program in any Federal law, Executive

order, regulation, delegation of authority, or document of or pertaining to the Department of Defense shall be deemed to refer to

the North Atlantic Treaty Organization Security Investment

program.

(c) CLERICAL AMENDMENTS.—(1) The section heading of such

section is amended to read as follows:

‘‘§ 2806. Contributions for North Atlantic Treaty Organizations Security Investment’’.

(2) The table of sections at the beginning of subchapter I

of chapter 169 of title 10, United States Code, is amended by

striking out the item relating to section 2806 and inserting in

lieu thereof the following new item:

‘‘2806. Contributions for North Atlantic Treaty Organizations Security Investment.’’.

(d) CONFORMING AMENDMENTS.—(1) Section 2861(b)(3) of title

10, United States Code, is amended by striking out ‘‘North Atlantic

Treaty Organization Infrastructure program’’ and inserting in lieu

thereof ‘‘North Atlantic Treaty Organization Security Investment

program’’.

(2) Section 21(h)(1)(B) of the Arms Export Control Act (22

U.S.C. 2761(h)(1)(B)) is amended by striking out ‘‘North Atlantic

Treaty Organization Infrastructure Program’’ and inserting in lieu

10 USC 2806

note.
110 STAT. 2788 PUBLIC LAW 104–201—SEPT. 23, 1996

thereof ‘‘North Atlantic Treaty Organization Security Investment

program’’.

SEC. 2803. IMPROVEMENTS TO FAMILY HOUSING UNITS.

(a) AUTHORIZED IMPROVEMENTS.—Subsection (a)(2) of section

2825 of title 10, United States Code, is amended—

(1) by inserting ‘‘major’’ before ‘‘maintenance’’; and

(2) by adding at the end the following: ‘‘Such term does

not include day-to-day maintenance and repair work.’’.

(b) LIMITATION.—Subsection (b) of such section is amended

by striking out paragraph (2) and inserting in lieu thereof the

following new paragraph:

‘‘(2) In determining the applicability of the limitation contained

in paragraph (1), the Secretary concerned shall include as part

of the cost of the improvement of the unit or units concerned

the following:

‘‘(A) The cost of major maintenance or repair work undertaken in connection with the improvement.

‘‘(B) Any cost, other than the cost of activities undertaken

beyond a distance of five feet from the unit or units concerned,

in connection with—

‘‘(i) the furnishing of electricity, gas, water, and sewage

disposal;

‘‘(ii) the construction or repair of roads, drives, and

walks; and

‘‘(iii) grading and drainage work.’’.

SEC. 2804. AVAILABILITY OF FUNDS FOR PLANNING, EXECUTION, AND

ADMINISTRATION OF CONTRACTS FOR FAMILY HOUSING

AND UNACCOMPANIED HOUSING.

(a) CONTRACTS FOR FAMILY HOUSING.—Paragraph (1) of section

2883(d) of title 10, United States Code, is amended by adding

at the end the following: ‘‘The Secretary may also use for expenses

of activities required in connection with the planning, execution,

and administration of such contracts funds that are otherwise available to the Department of Defense for such types of expenses.’’.

(b) CONTRACTS FOR UNACCOMPANIED HOUSING.—Paragraph (2)

of such section is amended by adding at the end the following:

‘‘The Secretary may also use for expenses of activities required

in connection with the planning, execution, and administration

of such contracts funds that are otherwise available to the Department of Defense for such types of expenses.’’.

Subtitle B—Defense Base Closure and

Realignment

SEC. 2811. RESTORATION OF AUTHORITY FOR CERTAIN INTRAGOVERNMENT TRANSFERS UNDER 1988 BASE CLOSURE

LAW.

Section 204(b)(2) of the Defense Authorization Amendments

and Base Closure and Realignment Act (Public Law 100–526; 10

U.S.C. 2687 note), is amended—

(1) by redesignating subparagraphs (D) and (E) as subparagraphs (E) and (F), respectively; and

(2) by inserting after subparagraph (C) the following new

subparagraph (D):
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2789

‘‘(D) The Secretary of Defense may transfer real property or

facilities located at a military installation to be closed or realigned

under this title, with or without reimbursement, to a military

department or other entity (including a nonappropriated fund

instrumentality) within the Department of Defense or the Coast

Guard.’’.

SEC. 2812. CONTRACTING FOR CERTAIN SERVICES AT FACILITIES

REMAINING ON CLOSED INSTALLATIONS.

(a) 1988 LAW.—Section 204(b)(8)(A) of the Defense Authorization Amendments and Base Closure and Realignment Act (Public

Law 100–526; 10 U.S.C. 2687 note) is amended by inserting ‘‘,

or at facilities not yet transferred or otherwise disposed of in the

case of installations closed under this title,’’ after ‘‘under this title’’.

(b) 1990 LAW.—Section 2905(b)(8)(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) is amended by inserting ‘‘,

or at facilities not yet transferred or otherwise disposed of in the

case of installations closed under this part,’’ after ‘‘under this part’’.

SEC. 2813. AUTHORITY TO COMPENSATE OWNERS OF MANUFACTURED 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:

‘‘(f) ACQUISITION OF MANUFACTURED HOUSING.—(1) In closing

or realigning any military installation under this title, the Secretary

may purchase any or all right, title, and interest of a member

of the Armed Forces and any spouse of the member in manufactured

housing located at a manufactured housing park established at

an installation closed or realigned under this title, or make a

payment to the member to relocate the manufactured housing to

a suitable new site, if the Secretary determines that—

‘‘(A) it is in the best interests of the Federal Government

to eliminate or relocate the manufactured housing park; and

‘‘(B) the elimination or relocation of the manufactured housing park would result in an unreasonable financial hardship

to the owners of the manufactured housing.

‘‘(2) Any payment made under this subsection shall not exceed

90 percent of the purchase price of the manufactured housing,

as paid by the member or any spouse of the member, plus the

cost of any permanent improvements subsequently made to the

manufactured housing by the member or spouse of the member.

‘‘(3) The Secretary shall dispose of manufactured housing

acquired under this subsection through resale, donation, trade or

otherwise within one year of acquisition.’’.

(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:

‘‘(g) ACQUISITION OF MANUFACTURED HOUSING.—(1) In closing

or realigning any military installation under this part, the Secretary

may purchase any or all right, title, and interest of a member

of the Armed Forces and any spouse of the member in manufactured

housing located at a manufactured housing park established at

an installation closed or realigned under this part, or make a
110 STAT. 2790 PUBLIC LAW 104–201—SEPT. 23, 1996

payment to the member to relocate the manufactured housing to

a suitable new site, if the Secretary determines that—

‘‘(A) it is in the best interests of the Federal Government

to eliminate or relocate the manufactured housing park; and

‘‘(B) the elimination or relocation of the manufactured housing park would result in an unreasonable financial hardship

to the owners of the manufactured housing.

‘‘(2) Any payment made under this subsection shall not exceed

90 percent of the purchase price of the manufactured housing,

as paid by the member or any spouse of the member, plus the

cost of any permanent improvements subsequently made to the

manufactured housing by the member or spouse of the member.

‘‘(3) The Secretary shall dispose of manufactured housing

acquired under this subsection through resale, donation, trade or

otherwise within one year of acquisition.’’.

SEC. 2814. ADDITIONAL PURPOSE FOR WHICH ADJUSTMENT AND

DIVERSIFICATION ASSISTANCE IS AUTHORIZED.

Section 2391(b)(5) of title 10, United States Code, is amended—

(1) by inserting ‘‘(A)’’ after ‘‘(5)’’; and

(2) by adding at the end the following new subparagraph:

‘‘(B) The Secretary of Defense may also make grants, conclude

cooperative agreements, and supplement other Federal funds in

order to assist a State in enhancing its capacities—

‘‘(i) to assist communities, businesses, and workers

adversely affected by an action described in paragraph (1);

‘‘(ii) to support local adjustment and diversification initiatives; and

‘‘(iii) to stimulate cooperation between statewide and local

adjustment and diversification efforts.’’.

SEC. 2815. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER

CERCLA IN CONNECTION WITH LORING AIR FORCE BASE,

MAINE.

From amounts in the Department of Defense Base Closure

Account 1990 established by section 2906(a)(1) 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), the Secretary of Defense

may expend not more than $50,000 to pay stipulated civil penalties

assessed under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) against

Loring Air Force Base, Maine.

SEC. 2816. PLAN FOR UTILIZATION, REUTILIZATION, OR DISPOSAL OF

MISSISSIPPI ARMY AMMUNITION PLANT.

Not later than 180 days after the date of the enactment of

this Act, the Secretary of the Army shall submit to the congressional

defense committees a plan for the utilization, reutilization, or disposal of the Mississippi Army Ammunition Plant, Hancock County,

Mississippi.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2791

Subtitle C—Land Conveyances

PART I—ARMY CONVEYANCES

SEC. 2821. TRANSFER OF LANDS, ARLINGTON NATIONAL CEMETERY,

ARLINGTON, VIRGINIA.

(a) REQUIREMENT FOR SECRETARY OF INTERIOR TO TRANSFER

CERTAIN SECTION 29 LANDS.—(1) Subject to paragraph (2), the

Secretary of the Interior shall transfer to the Secretary of the

Army administrative jurisdiction over the following lands located

in section 29 of the National Park System at Arlington National

Cemetery, Virginia:

(A) The lands known as the Arlington National Cemetery

Interment Zone.

(B) All lands in the Robert E. Lee Memorial Preservation

Zone, other than those lands in the Preservation Zone that

the Secretary of the Interior determines must be retained

because of the historical significance of such lands or for the

maintenance of nearby lands or facilities.

(2)(A) The Secretary of the Interior may not make the transfer

referred to in paragraph (1)(B) until 60 days after the date on

which the Secretary submits to the Committee on Armed Services

of the Senate and the Committee on National Security of the

House of Representatives—

(i) a summary of the document entitled ‘‘Cultural Landscape and Archaeological Study, Section 29, Arlington House,

The Robert E. Lee Memorial’’;

(ii) a summary of any environmental analysis required

with respect to the transfer under the National Environmental

Policy Act of 1969 (42 U.S.C. 4321 et seq.);

(iii) an accounting of the effect of the transfer that satisfies

the requirements of section 106 of the National Historic

Preservation Act (16 U.S.C. 470f); and

(iv) the proposal of the Secretary and the Secretary of

the Army setting forth the lands to be transferred and the

general manner in which the Secretary of the Army will develop

such lands after transfer.

(B) The Secretary of the Interior shall submit the information

required under subparagraph (A) not later than October 31, 1997.

(3) The transfer of lands under paragraph (1) shall be carried

out in accordance with the Interagency Agreement Between the

Department of the Interior, the National Park Service, and the

Department of the Army, dated February 22, 1995.

(4) The exact acreage and legal descriptions of the lands to

be transferred under paragraph (1) shall be determined by surveys

satisfactory to the Secretary of the Interior and the Secretary of

the Army.

(b) REQUIREMENT FOR ADDITIONAL TRANSFERS.—(1) The Secretary of the Interior shall transfer to the Secretary of the Army

administrative jurisdiction over a parcel of land, including any

improvements thereon, consisting of approximately 2.43 acres,

located in the Memorial Drive entrance area to Arlington National

Cemetery.

(2)(A) The Secretary of the Army shall transfer to the Secretary

of the Interior administrative jurisdiction over a parcel of land,

including any improvements thereon, consisting of approximately
110 STAT. 2792 PUBLIC LAW 104–201—SEPT. 23, 1996

0.17 acres, located at Arlington National Cemetery, and known

as the Old Administrative Building site. The site is part of the

original reservation of Arlington National Cemetery.

(B) In connection with the transfer under subparagraph (A),

the Secretary of the Army shall grant to the Secretary of the

Interior a perpetual right of ingress and egress to the parcel transferred under that subparagraph.

(3) The exact acreage and legal descriptions of the lands to

be transferred pursuant to this subsection shall be determined

by surveys satisfactory to the Secretary of the Interior and the

Secretary of the Army. The costs of such surveys shall be borne

by the Secretary of the Army.

SEC. 2822. LAND TRANSFER, FORT SILL, OKLAHOMA.

(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 400 acres and comprising a portion of

Fort Sill, Oklahoma.

(b) USE OF PROPERTY.—The Secretary of Veterans Affairs shall

use the real property transferred under subsection (a) as a national

cemetery under chapter 24 of title 38, United States Code.

(c) RETURN OF UNUSED PORTION.—If the Secretary of Veterans

Affairs determines that any portion of the real property transferred

under subsection (a) is not needed for use as a national cemetery,

the Secretary shall return such portion to the administrative jurisdiction of the Secretary of the Army.

(d) LEGAL DESCRIPTION.—The exact acreage and legal description of the real property to be transferred under this section shall

be determined by a survey satisfactory to the Secretary of the

Army. The cost of the survey shall be borne by the Secretary

of Veterans Affairs.

SEC. 2823. LAND CONVEYANCE, ARMY RESERVE CENTER, RUSHVILLE,

INDIANA.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may

convey, without consideration, to the City of Rushville, Indiana

(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 in Rushville,

Indiana, and contains the Rushville 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

Rushville Police 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.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2793

SEC. 2824. LAND CONVEYANCE, ARMY RESERVE CENTER, ANDERSON,

SOUTH CAROLINA.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may

convey, without consideration, to the County of Anderson, South

Carolina (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, that is located at 805

East Whitner Street in Anderson, South Carolina, and contains

an Army Reserve Center.

(b) CONDITION OF CONVEYANCE.—The conveyance authorized

under subsection (a) shall be subject to the condition that the

County retain the conveyed property for the use and benefit of

the Anderson County Department of Education.

(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 County.

(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. 2825. LAND CONVEYANCE, ARMY RESERVE CENTER, MONTPELIER, VERMONT.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may

convey, without consideration, to the City of Montpelier, Vermont

(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 4.3 acres and

located on Route 2 in Montpelier, Vermont, the site of the Army

Reserve Center, Montpelier, Vermont.

(b) CONDITION.—The conveyance authorized under subsection

(a) shall be subject to the condition that the City agree to lease

to the Civil Air Patrol, at no rental charge to the Civil Air Patrol,

the portion of the real property and improvements located on the

parcel to be conveyed that the Civil Air Patrol leases from the

Secretary as of the date of the enactment of this Act.

(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 this section as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2826. LAND CONVEYANCE, CRAFTS BROTHERS RESERVE TRAINING CENTER, MANCHESTER, NEW HAMPSHIRE.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may

convey, without consideration, to Saint Anselm College, Manchester,

New Hampshire, all right, title, and interest of the United States

in and to a parcel of real property, including improvements thereon,

consisting of approximately 3.5 acres and located on Rockland

Avenue in Manchester, New Hampshire, the site of the Crafts

Brothers Reserve Training Center.

(b) REQUIREMENT RELATING TO CONVEYANCE.—The Secretary

may not make the conveyance authorized by subsection (a) until
110 STAT. 2794 PUBLIC LAW 104–201—SEPT. 23, 1996

the Army Reserve units currently housed at the Crafts Brothers

Reserve Training Center are relocated to the Joint Service Reserve

Center to be constructed at the Manchester Airport, New Hampshire.

(c) 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.

(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.

(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. 2827. LAND CONVEYANCE, PINE BLUFF ARSENAL, ARKANSAS.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may

convey, without consideration, to the Economic Development Alliance of Jefferson County, Arkansas (in this section referred to

as the ‘‘Alliance’’), 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 1,500 acres and comprising

a portion of the Pine Bluff Arsenal, Arkansas.

(b) REQUIREMENTS RELATING TO CONVEYANCE.—The Secretary

may not carry out the conveyance of property authorized under

subsection (a) until—

(1) the completion by the Secretary of any environmental

restoration and remediation that is required with respect to

the property under applicable law;

(2) the Secretary secures all permits required under law

applicable regarding the conduct of the proposed chemical

demilitarization mission at the arsenal; and

(3) 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 a certification

that the conveyance will not adversely affect the ability of

the Department of Defense to conduct that chemical demilitarization mission.

(c) CONDITIONS OF CONVEYANCE.—The conveyance authorized

under subsection (a) shall be subject to the following conditions:

(1) That the Alliance agree not to carry out any activities

on the property to be conveyed that interfere with the construction, operation, and decommissioning of the chemical demilitarization facility to be constructed at Pine Bluff Arsenal. If

the Alliance fails to comply with its agreement in paragraph

(1) the property conveyed under this section, all rights, title,

and interest in and to the property shall revert to the United

States, and the United States shall have immediate rights

of entry thereon.

(2) That the property be used during the 25-year period

beginning on the date of the conveyance only as the site of

the facility known as the ‘‘Bioplex’’, and for activities related

thereto.

(d) COSTS OF CONVEYANCE.—The Alliance shall be responsible

for any costs of the Army associated with the conveyance of property
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2795

under this section, including administrative costs, the costs of an

environmental baseline survey with respect to the property, and

the cost of any protection services required by the Secretary in

order to secure operations of the chemical demilitarization facility

from activities on the property after the conveyance.

(e) REVERSIONARY INTERESTS.—If the Secretary determines at

any time during the 25-year period referred to in subsection (c)(2)

that the property conveyed under this section is not being used

in accordance with that subsection, all right, title, and interest

in and to the property shall revert to the United States, and

the United States shall have immediate right of entry thereon.

(f) SALE OF PROPERTY BY ALLIANCE.—If at any time during

the 25-year period referred to in subsection (c)(2) the Alliance

sells all or a portion of the property conveyed under this section,

the Alliance shall pay the United States an amount equal to the

lesser of—

(1) the amount of the sale of the property sold; or

(2) the fair market value of the property sold at the time

of the sale, excluding the value of any improvements to the

property sold that have been made by the Alliance.

(g) 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 Alliance.

(h) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

conveyance under this section as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2828. REAFFIRMATION OF LAND CONVEYANCES, FORT SHERIDAN, ILLINOIS.

As soon as practicable after the date of the enactment of this

Act, the Secretary of the Army shall complete the land conveyances

involving Fort Sheridan, Illinois, required or authorized under section 125 of the Military Construction Appropriations Act, 1996

(Public Law 104–32; 109 Stat. 290).

PART II—NAVY CONVEYANCES

SEC. 2831. LAND TRANSFER, POTOMAC ANNEX, DISTRICT OF

COLUMBIA.

(a) TRANSFER AUTHORIZED.—The Secretary of the Navy may

transfer, without consideration other than the reimbursement provided for in subsection (d), to the United States Institute of Peace

(in this section referred to as the ‘‘Institute’’) administrative jurisdiction over a parcel of real property, including any improvements

thereon, consisting of approximately 3 acres, at the northwest corner

of Twenty-third Street and Constitution Avenue, Northwest, District

of Columbia, the site of the Potomac Annex.

(b) CONDITION.—The Secretary may not make the transfer

specified in subsection (a) unless the Institute agrees to provide

the Navy a number of parking spaces at or in the vicinity of

the headquarters to be constructed on the parcel transferred equal

to the number of parking spaces available to the Navy on the

parcel as of the date of the transfer.

(c) REQUIREMENT RELATING TO TRANSFER.—The transfer specified in subsection (a) may not occur until the Institute obtains
110 STAT. 2796 PUBLIC LAW 104–201—SEPT. 23, 1996

all permits, approvals, and site plan reviews required by law with

respect to the construction on the parcel of a headquarters for

operations of the Institute.

(d) COSTS.—The Institute shall reimburse the Secretary for

the costs incurred by the Secretary in carrying out the transfer

specified in subsection (a).

(e) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the property to be transferred 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 Institute.

SEC. 2832. LAND EXCHANGE, ST. HELENA ANNEX, NORFOLK NAVAL

SHIPYARD, VIRGINIA.

(a) CONVEYANCE AUTHORIZED.—(1) The Secretary of the Navy

may convey to such private person as the Secretary considers appropriate (in this section referred to as the ‘‘transferee’’) all right,

title, and interest of the United States in and to a parcel of real

property that is located at the Norfolk Naval Shipyard, Virginia,

and, as of the date of the enactment of this Act, is a portion

of the property leased to the Norfolk Shipbuilding and Drydock

Company pursuant to the Department of the Navy lease N00024–

84–L–0004, effective October 1, 1984, as extended.

(2) Pending completion of the conveyance authorized by paragraph (1), the Secretary may lease the real property to the transferee upon such terms as the Secretary considers appropriate.

(b) CONSIDERATION.—As consideration for the conveyance under

subsection (a), including any interim lease authorized by such subsection, the transferee shall—

(1) convey to the United States all right, title, and interest

to a parcel or parcels of real property, together with any

improvements thereon, located in the area of Portsmouth,

Virginia, which are determined to be acceptable to the Secretary; and

(2) pay to the Secretary an amount equal to the amount,

if any, by which the fair market value of the parcel conveyed

by the Secretary under subsection (a) exceeds the fair market

value of the parcel conveyed to the United States under paragraph (1).

(c) USE OF RENTAL AMOUNTS.—The Secretary may use the

amounts received as rent from any lease entered into under the

authority of subsection (a)(2) to fund environmental studies of the

parcels of real property to be conveyed under this section.

(d) IN-KIND CONSIDERATION.—The Secretary and the transferee

may agree that, in lieu of all or any part of the consideration

required by subsection (b)(2), the transferee may provide and the

Secretary may accept the improvement, maintenance, protection,

repair, or restoration of real property under the control of the

Secretary in the area of Hampton Roads, Virginia.

(e) DETERMINATION OF FAIR MARKET VALUE AND PROPERTY

DESCRIPTION.—The Secretary shall determine the fair market value

of the parcels of real property to be conveyed under subsections

(a) and (b)(1). The exact acreage and legal description of the parcels

shall be determined by a survey satisfactory to the Secretary. The

cost of the survey shall be borne by the transferee.

(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2797

the conveyances under this section as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2833. LAND CONVEYANCE, CALVERTON PINE BARRENS, NAVAL

WEAPONS INDUSTRIAL RESERVE PLANT, CALVERTON,

NEW YORK.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may

convey, without consideration, to the Department of Environmental

Conservation of the State of New York (in this section referred

to as the ‘‘Department’’), all right, title, and interest of the United

States in and to the Calverton Pine Barrens located at the Naval

Weapons Industrial Reserve Plant, Calverton, New York.

(b) EFFECT ON OTHER CONVEYANCE AUTHORITY.—The conveyance authorized by this subsection shall not affect the transfer

of jurisdiction of a portion of the Calverton Pine Barrens authorized

by section 2865 of the Military Construction Authorization Act

for Fiscal Year 1996 (division B of Public Law 104–106; 110 Stat.

576).

(c) CONDITION OF CONVEYANCE.—The conveyance under subsection (a) shall be subject to the condition that the Department

agrees—

(1) to maintain the conveyed property as a nature preserve,

as required by 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);

(2) to designate the conveyed property as the ‘‘Otis G.

Pike Preserve’’; and

(3) to continue to allow the level of sporting activities

on the conveyed property as permitted at the time of the

conveyance.

(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 Department.

(e) 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.

(f) CALVERTON PINE BARRENS DEFINED.—In this section, the

term ‘‘Calverton Pine Barrens’’ has the meaning given that term

in section 2854(d)(1) of the Military Construction Authorization

Act for Fiscal Year 1993 (division B of Public Law 102–484; 106

Stat. 2626).

SEC. 2834. LAND CONVEYANCE, FORMER NAVAL RESERVE FACILITY,

LEWES, DELAWARE.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may

convey, without consideration, to the State of Delaware (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, consisting of approximately 16.8 acres

at the site of the former Naval Reserve Facility, Lewes, Delaware.

(b) CONDITION OF CONVEYANCE.—The conveyance under subsection (a) shall be subject to the condition that the State use

the real property conveyed under that subsection in perpetuity

solely for public park or recreational purposes.
110 STAT. 2798 PUBLIC LAW 104–201—SEPT. 23, 1996

(c) REVERSION.—If the Secretary of the Navy determines at

any time that the real property conveyed pursuant to this section

is not being used for a purpose specified in subsection (b), all

right, title, and interest in and to such real property, including

any improvements thereon, shall revert to the United States, and

the United States shall have the right of immediate entry thereon.

(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the real property to be conveyed pursuant to this

section shall be determined by a survey satisfactory to the Secretary

of the Navy. The cost of such survey shall be borne by the State.

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary of the

Navy 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. 2835. MODIFICATION OF LAND CONVEYANCE AUTHORITY, NAVAL

RESERVE CENTER, SEATTLE, WASHINGTON.

Paragraph (2) of section 127(d) of the Military Construction

Appropriations Act, 1995 (Public Law 103–307; 108 Stat. 1666),

is amended to read as follows:

‘‘(2) Before commencing construction of a facility to be the

replacement facility for the Naval Reserve Center under paragraph

(1), the Secretary shall comply with the requirements of the

National Environmental Policy Act of 1969 (42 U.S.C. 4321 et

seq.) with respect to such facility.’’.

SEC. 2836. RELEASE OF CONDITION ON RECONVEYANCE OF TRANSFERRED LAND, GUAM.

(a) IN GENERAL.—Section 818(b)(2) of the Military Construction

Authorization Act, 1981 (Public Law 96–418; 94 Stat. 1782), relating

to a condition on disposal by Guam of lands conveyed to Guam

by the United States, shall have no force or effect and is repealed.

(b) EXECUTION OF INSTRUMENTS.—The Secretary of the Navy

and the Administrator of General Services shall execute all

instruments necessary to implement this section.

SEC. 2837. LEASE TO FACILITATE CONSTRUCTION OF RESERVE

CENTER, NAVAL AIR STATION, MERIDIAN, MISSISSIPPI.

(a) LEASE OF PROPERTY FOR CONSTRUCTION OF RESERVE

CENTER.—(1) The Secretary of the Navy may lease, without

reimbursement, to the State of Mississippi (in this section referred

to as the ‘‘State’’), approximately five acres of real property located

at Naval Air Station, Meridian, Mississippi. The State shall use

the property to construct a reserve center of approximately 22,000

square feet and ancillary supporting facilities.

(2) The term of the lease under this subsection shall expire

on the same date that the lease authorized by subsection (b) expires.

(b) LEASEBACK OF RESERVE CENTER.—(1) The Secretary may

lease from the State the property and improvements constructed

pursuant to subsection (a) for a five-year period. The term of the

lease shall begin on the date on which the improvements are

available for occupancy, as determined by the Secretary.

(2) Rental payments under the lease under paragraph (1) may

not exceed $200,000 per year, and the total amount of the rental

payments for the entire period may not exceed 20 percent of the

total cost of constructing the reserve center and ancillary supporting

facilities.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2799

(3) Subject to the availability of appropriations for this purpose,

the Secretary may use funds appropriated pursuant to an authorization of appropriations for the operation and maintenance of the

Naval Reserve to make rental payments required under this

subsection.

(c) EFFECT OF TERMINATION OF LEASES.—At the end of the

lease term under subsection (b), the State shall convey, without

reimbursement, to the United States all right, title, and interest

of the State in the reserve center and ancillary supporting facilities

subject to the lease.

(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the leases under this section as the Secretary considers appropriate

to protect the interests of the United States.

PART III—AIR FORCE CONVEYANCES

SEC. 2841. LAND CONVEYANCE, RADAR BOMB SCORING SITE, BELLE

FOURCHE, SOUTH DAKOTA.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Air Force

may convey, without consideration, to the Belle Fourche School

District, Belle Fourche, South Dakota (in this section referred to

as the ‘‘District’’), 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 37 acres located in Belle

Fourche, South Dakota, which has served as the location of a

support complex and housing facilities for Detachment 21 of the

554th Range Squadron, an Air Force Radar Bomb Scoring Site

located in Belle Fourche, South Dakota. The conveyance may not

include any portion of the radar bomb scoring site located in the

State of Wyoming.

(b) CONDITION OF CONVEYANCE.—The conveyance authorized

under subsection (a) shall be subject to the condition that the

District—

(1) use the property and facilities conveyed under such

subsection for education, economic development, and housing

purposes; or

(2) enter into an agreement with an appropriate public

or private entity to sell or lease the property and facilities

to such entity for such purposes.

(c) 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 District.

(d) 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. 2842. CONVEYANCE OF PRIMATE RESEARCH COMPLEX AND AIR

FORCE-OWNED CHIMPANZEES, HOLLOMAN AIR FORCE

BASE, NEW MEXICO.

(a) DISPOSAL AUTHORIZED.—Notwithstanding any provision of

the Federal Property and Administrative Services Act of 1949 (40

U.S.C. 471 et seq.), or any regulations prescribed thereunder, the

Secretary of the Air Force may dispose of all right, title, and

interest of the United States in and to the primate research complex
110 STAT. 2800 PUBLIC LAW 104–201—SEPT. 23, 1996

at Holloman Air Force Base, New Mexico. The disposal may include

the chimpanzees owned by the Air Force that are housed at or

managed from the primate research complex. The disposal shall

not include the underlying real property on which the primate

research complex is located. The disposal of the primate research

complex shall be at no cost to the Air Force.

(b) COMPETITIVE, NEGOTIATED DISPOSAL PROCESS REQUIRED.—

The Secretary shall select the persons or entities to which the

primate research complex and chimpanzees are to be disposed of

under subsection (a) using a competitive, negotiated process.

(c) STANDARDS TO BE USED IN SOLICITATION OF BIDS.—The

Secretary shall develop standards for the care and use of the

primate research complex, and of the chimpanzees, to be used

in soliciting bids for the disposal authorized by subsection (a).

The Secretary shall develop such standards in consultation with

the Secretary of Agriculture and the Director of the National

Institutes of Health.

(d) CONDITIONS OF DISPOSAL.—The disposal authorized by subsection (a) shall be subject to the followings conditions:

(1) That a recipient of any chimpanzees—

(A) utilize such chimpanzees only for scientific research

or medical research purposes; or

(B) retire and provide adequate care for such chimpanzees.

(2) That any recipient of chimpanzees, or the primate

research complex, take such chimpanzees, or the primate

research complex, subject to any existing leases or other encumbrances at the time of the disposal.

(e) DESCRIPTION OF COMPLEX AND CHIMPANZEES.—The exact

legal description of the primate research complex and chimpanzees

to be disposed of under subsection (a) shall be determined by

a survey or 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 recipient of the property concerned.

(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the disposal under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.

PART IV—OTHER CONVEYANCES

SEC. 2851. LAND CONVEYANCE, TATUM SALT DOME TEST SITE,

MISSISSIPPI.

(a) CONVEYANCE AUTHORIZED.—The Secretary of Energy may

convey, without compensation, to the State of Mississippi (in this

section referred to as the ‘‘State’’) the property known as the Tatum

Salt Dome Test Site, as generally depicted on the map of the

Department of Energy numbered 301913.104.02 and dated June

25, 1993.

(b) CONDITION ON CONVEYANCE.—The conveyance under this

section shall be subject to the condition that the State use the

conveyed property as a wildlife refuge and working demonstration

forest.

(c) DESIGNATION.—The property to be conveyed is hereby designated as the ‘‘Jamie Whitten Forest Management Area’’.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2801

(d) RETAINED RIGHTS.—The conveyance under this section shall

be subject to each of the following rights to be retained by the

United States:

(1) Retention by the United States of subsurface estates

below the property conveyed.

(2) Retention by the United States of rights of access,

by easement or otherwise, for such purposes as the Secretary

considers appropriate, including access to monitoring wells for

sampling.

(3) Retention by the United States of the right to install

wells additional to those identified in the remediation plan

for the property to the extent such additional wells are considered necessary by the Secretary to monitor potential pathways

of contaminant migration. Such wells shall be in such locations

as specified by the Secretary.

(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. 2852. LAND CONVEYANCE, WILLIAM LANGER JEWEL BEARING

PLANT, ROLLA, NORTH DAKOTA.

(a) CONVEYANCE AUTHORIZED.—The Administrator of General

Services may convey, without consideration, to the Job Development

Authority of the City of Rolla, North Dakota (in this section referred

to as the ‘‘Authority’’), all right, title, and interest of the United

States in and to a parcel of real property, with improvements

thereon and all associated personal property, consisting of approximately 9.77 acres and comprising the William Langer Jewel Bearing

Plant in Rolla, North Dakota.

(b) CONDITION OF CONVEYANCE.—The conveyance authorized

under subsection (a) shall be subject to the condition that the

Authority—

(1) use the real and personal property and improvements

conveyed under that subsection for economic development relating to the jewel bearing plant;

(2) enter into an agreement with an appropriate public

or private entity or person to lease such property and

improvements to that entity or person for such economic development; or

(3) enter into an agreement with an appropriate public

or private entity or person to sell such property and improvements to that entity or person for such economic development.

(c) PREFERENCE FOR DOMESTIC DISPOSAL OF JEWEL BEARINGS.—

(1) In offering to enter into agreements pursuant to any provision

of law for the disposal of jewel bearings from the National Defense

Stockpile, the President shall give a right of first refusal on all

such offers to the Authority or to the appropriate public or private

entity or person with which the Authority enters into an agreement

under subsection (b).

(2) For the purposes of this section, the term ‘‘National Defense

Stockpile’’ means the stockpile provided for in section 4 of the

Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98(c)).

(d) AVAILABILITY OF FUNDS FOR MAINTENANCE AND CONVEYANCE OF PLANT.—Notwithstanding any other provision of law, funds

available under the Department of Defense Appropriations Act,

1995 (Public Law 103–335), in fiscal year 1995 for the maintenance

President.
110 STAT. 2802 PUBLIC LAW 104–201—SEPT. 23, 1996

of the William Langer Jewel Bearing Plant shall be available for

the maintenance of the plant pending the conveyance of the plant

and for the conveyance of the plant under this section.

(e) 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 Administrator. The cost

of the survey shall be borne by the Administrator.

(f) ADDITIONAL TERMS AND CONDITIONS.—The Administrator

may require such additional terms and conditions in connection

with the conveyance under this section as the Administrator determines appropriate to protect the interests of the United States.

SEC. 2853. LAND CONVEYANCE, AIR FORCE PLANT NO. 85, COLUMBUS,

OHIO.

(a) CONVEYANCE AUTHORIZED.—Notwithstanding any other

provision of law, the Secretary of the Air Force may instruct the

Administrator of General Services to convey, without consideration,

to the Columbus Municipal Airport Authority (in this section

referred to as the ‘‘Authority’’) all right, title, and interest of the

United States in and to a parcel of real property, together with

improvements thereon, at Air Force Plant No. 85, Columbus, Ohio,

consisting of approximately 240 acres that—

(1) contains the land and buildings referred to as the ‘‘airport parcel’’ in the correspondence from the General Services

Administration to the Authority dated April 30, 1996; and

(2) is located adjacent to the Port Columbus International

Airport.

(b) EFFECT OF CHANGE IN ADMINISTRATIVE JURISDICTION.—If,

on the date of the enactment of this Act, the Secretary of the

Air Force does not have administrative jurisdiction over the property to be conveyed, the conveyance shall be made by the Federal

official who has administrative jurisdiction over the parcel as of

that date.

(c) REQUIREMENT FOR FEDERAL SCREENING.—The Federal official responsible for making the conveyance authorized in subsection

(a) may not convey the property unless the Federal official determines, in consultation with the Administrator of General Services,

that no department or agency of the Federal Government will

accept the transfer of the property.

(d) CONDITION OF CONVEYANCE.—The conveyance authorized

under subsection (a) shall be subject to the condition that the

Authority use the conveyed property for public airport purposes.

(e) REVERSION.—If the Federal official making the conveyance

under subsection (a) determines that any portion of the conveyed

property is not being utilized in accordance with the condition

in subsection (d), all right, title, and interest in and to such portion

shall revert to the United States, and the United States shall

have immediate right of entry thereon.

(f) 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 Federal

official responsible for making the conveyance. The cost of the

survey shall be borne by the Authority.

(g) ADDITIONAL TERMS AND CONDITIONS.—The Federal official

responsible for making the conveyance of property under subsection

(a) may require such additional terms and conditions in connection
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2803

with the conveyance as such official considers appropriate to protect

the interests of the United States.

SEC. 2854. MODIFICATION OF BOUNDARIES OF WHITE SANDS

NATIONAL MONUMENT AND WHITE SANDS MISSILE

RANGE.

(a) TRANSFER OF LANDS BY SECRETARY OF ARMY.—The Secretary of the Army may transfer to the administrative jurisdiction

of the Secretary of the Interior the following lands as generally

depicted on the map entitled ‘‘White Sands National Monument,

Boundary Proposal’’, numbered 142/80,061, and dated January

1994:

(1) Lands consisting of approximately 2,524 acres located

within White Sands National Monument, New Mexico.

(2) Lands consisting of approximately 5,758 acres located

within White Sands Missile Range, New Mexico, and abutting

White Sands National Monument.

(b) TRANSFER OF LANDS BY SECRETARY OF INTERIOR.—The Secretary of the Interior may transfer to the administrative jurisdiction

of the Secretary of the Army lands consisting of approximately

4,277 acres located in White Sands National Monument, which

lands are generally depicted on the map referred to in subsection

(a).

(c) BOUNDARY MODIFICATIONS.—(1) The Secretary of the Army

and the Secretary of the Interior shall jointly modify the boundary

of White Sands National Monument so as to include within the

national monument the lands transferred under subsection (a) and

to exclude from the national monument the lands transferred under

subsection (b).

(2) The Secretary of the Army and the Secretary of the Interior

shall jointly modify the boundary of White Sands Missile Range

as to include within the missile range the lands transferred under

subsection (b) and exclude from the missile range the lands transferred under subsection (a).

(d) ADMINISTRATION OF TRANSFERRED LANDS.—(1) The Secretary of the Interior shall administer the lands transferred to

that Secretary under subsection (a) in accordance with the laws

applicable to the White Sands National Monument.

(2) The Secretary of the Army shall administer the lands transferred to that Secretary under subsection (b) as part of White

Sands Missile Range.

(3) The Secretary of the Army shall maintain control of the

airspace above the lands transferred to that Secretary under subsection (b) and administer that airspace in a manner consistent

with the use of such lands as part of White Sands Missile Range.

(e) PUBLIC AVAILABILITY OF MAP OF MONUMENT.—The Secretary of the Interior and the Secretary of the Army shall jointly

prepare, and the Secretary of the Interior shall keep on file for

public inspection in the headquarters of White Sands National

Monument, a map showing the boundary of White Sands National

Monument as modified by this section.

(f) WAIVER OF LIMITATION UNDER PRIOR LAW.—Notwithstanding section 303(b)(1) of the National Parks and Recreation Act

of 1978 (Public Law 95–625; 92 Stat. 3476), land or an interest

in land that was deleted from White Sands National Monument

by section 301(19) of the Act (92 Stat. 3475) may, at the election

of the Secretary of the Interior, be—

16 USC 431 note.
110 STAT. 2804 PUBLIC LAW 104–201—SEPT. 23, 1996

(1) exchanged for land owned by the State of New Mexico

within the boundaries of any unit of the National Park System

in the State of New Mexico;

(2) transferred to the jurisdiction of any other Federal

agency without monetary consideration; or

(3) administered as public land.

Subtitle D—Other Matters

SEC. 2861. AUTHORITY TO GRANT EASEMENTS FOR RIGHTS-OF-WAY.

(a) EASEMENTS FOR ELECTRIC POLES AND LINES AND FOR

COMMUNICATIONS LINES AND FACILITIES.—Section 2668(a) of title

10, United States Code, is amended—

(1) by striking out ‘‘and’’ at the end of paragraph (9);

(2) by redesignating paragraph (10) as paragraph

(13); and

(3) by inserting after paragraph (9) the following new

paragraphs:

‘‘(10) poles and lines for the transmission or distribution

of electric power;

‘‘(11) poles and lines for the transmission or distribution

of communications signals (including telephone and telegraph

signals);

‘‘(12) structures and facilities for the transmission, reception, and relay of such signals; and’’.

(b) CONFORMING AMENDMENTS.—Such section is further

amended—

(1) in paragraph (3), by striking out ‘‘, telephone lines,

and telegraph lines,’’; and

(2) in paragraph (13), as redesignated by subsection (a)(2),

by striking out ‘‘or by the Act of March 4, 1911 (43 U.S.C.

961)’’.

SEC. 2862. AUTHORITY TO ENTER INTO COOPERATIVE AGREEMENTS

FOR THE MANAGEMENT OF CULTURAL RESOURCES ON

MILITARY INSTALLATIONS.

(a) AGREEMENTS AUTHORIZED.—Chapter 159 of title 10, United

States Code, is amended by inserting after section 2683 the following new section:

‘‘§ 2684. Cooperative agreements for management of cultural

resources

‘‘(a) AUTHORITY.—The Secretary of Defense or the Secretary

of a military department may enter into a cooperative agreement

with a State or local government or other entity for the preservation,

management, maintenance, and improvement of cultural resources

on military installations and for the conduct of research regarding

the cultural resources. Activities under the cooperative agreement

shall be subject to the availability of funds to carry out the cooperative agreement.

‘‘(b) APPLICATION OF OTHER LAWS.—Section 1535 and chapter

63 of title 31, United States Code, shall not apply to a cooperative

agreement entered into under this section.

‘‘(c) CULTURAL RESOURCE DEFINED.—In this section, the term

‘cultural resource’ means any of the following:

‘‘(1) A building, structure, site, district, or object eligible

for or included in the National Register of Historic Places
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2805

maintained under section 101(a) of the National Historic

Preservation Act (16 U.S.C. 470a(a)).

‘‘(2) Cultural items, as that term is defined in section

2(3) of the Native American Graves Protection and Repatriation

Act (25 U.S.C. 3001(3)).

‘‘(3) An archaeological resource, as that term is defined

in section 3(1) of the Archaeological Resources Protection Act

of 1979 (16 U.S.C. 470bb(1)).

‘‘(4) An archaeological artifact collection and associated

records covered by section 79 of title 36, Code of Federal

Regulations.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating

to section 2683 the following new item:

‘‘2684. Cooperative agreements for management of cultural resources.’’.

SEC. 2863. DEMONSTRATION PROJECT FOR INSTALLATION AND OPERATION OF ELECTRIC POWER DISTRIBUTION SYSTEM AT

YOUNGSTOWN AIR RESERVE STATION, OHIO.

(a) AUTHORITY.—The Secretary of the Air Force may carry

out a demonstration project to assess the feasibility and advisability

of permitting private entities to install, operate, and maintain

electric power distribution systems at military installations. The

Secretary shall carry out the demonstration project through an

agreement under subsection (b).

(b) AGREEMENT.—(1) In order to carry out the demonstration

project, the Secretary shall enter into an agreement with an electric

utility or other company in the Youngstown, Ohio, area, consistent

with State law, under which the utility or company installs, operates, and maintains (in a manner satisfactory to the Secretary

and the utility or company) an electric power distribution system

at Youngstown Air Reserve Station, Ohio.

(2) The Secretary may not enter into an agreement under

this subsection until—

(A) the Secretary submits to Congress a report on the

agreement to be entered into, including the costs to be incurred

by the United States under the agreement; and

(B) a period of 30 days has elapsed from the date of

the receipt of the report by the committees.

(c) LICENSES AND EASEMENTS.—In order to facilitate the

installation, operation, and maintenance of the electric power distribution system under the agreement under subsection (b), the

Secretary may grant the utility or company with which the Secretary enters into the agreement such licenses, easements, and

rights-of-way, consistent with State law, as the Secretary and the

utility or company jointly determine necessary for such purposes.

(d) OWNERSHIP OF SYSTEM.—The agreement between the Secretary and the utility or company under subsection (b) may provide

that the utility or company shall own the electric power distribution

system installed under the agreement.

(e) RATE.—The rate charged by the utility or company for

providing or distributing electric power at Youngstown Air Reserve

Station through the electric power distribution system installed

under the agreement under subsection (b) shall be the rate established by the appropriate Federal or State regulatory authority.

(f) REPORTS.—Not later than February 1, 1997, and February

1 of each year following a year in which the Secretary carries

Reports.
110 STAT. 2806 PUBLIC LAW 104–201—SEPT. 23, 1996

out the demonstration project under this section, the Secretary

shall submit to Congress a report on the project. The report shall

include the Secretary’s current assessment of the project and the

recommendations, if any, of the Secretary of extending the authority

with respect to the project to other facilities and installations of

the Department of Defense.

(g) FUNDING.—In order to pay the costs of the United States

under the agreement under subsection (b), the Secretary may use

funds authorized to be appropriated by section 2601(3)(B) of the

Military Construction Authorization Act for Fiscal Year 1996 (division B of Public Law 104–106; 110 Stat. 540) for the purpose

of rebuilding the electric power distribution system at the Youngstown Air Reserve Station that were appropriated for that purpose

by the Military Construction Appropriations Act, 1996 (Public Law

104–32; 109 Stat. 283), and that remain available for obligation

for that purpose as of the date of the enactment of this Act.

(h) APPLICATION OF OTHER LAW.—Nothing in this section shall

authorize actions which are inconsistent with Federal or State

law.

(i) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in the agreement

under subsection (b) as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2864. RENOVATION OF THE PENTAGON RESERVATION.

The Secretary of Defense shall take such actions as are necessary to ensure that the total cost of the renovation of the Pentagon

Reservation does not exceed $1,118,000,000.

SEC. 2865. PLAN FOR REPAIRS AND STABILIZATION OF THE HISTORIC

DISTRICT AT THE FOREST GLEN ANNEX OF WALTER REED

MEDICAL CENTER, MARYLAND.

Not later than 120 days after the date of the enactment of

this Act, the Secretary of the Army shall submit to the congressional

defense committees a comprehensive plan for basic repairs and

stabilization measures throughout the historic district at the Forest

Glen Annex of Walter Reed Army Medical Center, Maryland,

together with funding options for the implementation of the plan.

SEC. 2866. NAMING OF RANGE AT CAMP SHELBY, MISSISSIPPI.

(a) NAME.—The Multi Purpose Range Complex (Heavy) at

Camp Shelby, Mississippi, shall after the date of the enactment

of this Act be known and designated as the ‘‘G.V. (Sonny) Montgomery Range’’. Any reference to such range in any law, regulation,

map, document, record, or other paper of the United States shall

be considered to be a reference to the G. V. (Sonny) Montgomery

Range.

(b) EFFECTIVE DATE.—Subsection (a) shall take effect at noon

on January 3, 1997, or the first day on which G. V. (Sonny)

Montgomery otherwise ceases to be a Member of the House of

Representatives.

SEC. 2867. DESIGNATION OF MICHAEL O’CALLAGHAN MILITARY

HOSPITAL.

(a) DESIGNATION.—The Nellis Federal Hospital, a Federal building located at 4700 North Las Vegas Boulevard, Las Vegas, Nevada,

shall be known and designated as the ‘‘Michael O’Callaghan Military Hospital’’.

Nevada.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2807

(b) REFERENCES.—Any reference in a law, map, regulation,

document, paper, or other record of the United States to the Federal

building referred to in subsection (a) shall be deemed to be a

reference to the ‘‘Michael O’Callaghan Military Hospital’’.

SEC. 2868. NAMING OF BUILDING AT THE UNIFORMED SERVICES

UNIVERSITY OF THE HEALTH SCIENCES.

It is the sense of Congress that the Secretary of Defense should

name Building A at the Uniformed Services University of the Health

Sciences as the ‘‘David Packard Building’’.

TITLE XXIX—MILITARY LAND

WITHDRAWALS

Subtitle A—Fort Carson-Pinon Canyon Military Lands Withdrawal

Sec. 2901. Short title.

Sec. 2902. Withdrawal and reservation of lands at Fort Carson Military Reservation.

Sec. 2903. Withdrawal and reservation of lands at Pinon Canyon Maneuver Site.

Sec. 2904. Maps and legal descriptions.

Sec. 2905. Management of withdrawn lands.

Sec. 2906. Management of withdrawn and acquired mineral resources.

Sec. 2907. Hunting, fishing, and trapping.

Sec. 2908. Termination of withdrawal and reservation.

Sec. 2909. Determination of presence of contamination and effect of contamination.

Sec. 2910. Delegation.

Sec. 2911. Hold harmless.

Sec. 2912. Amendment to Military Lands Withdrawal Act of 1986.

Sec. 2913. Authorization of appropriations.

Subtitle B—El Centro Naval Air Facility Ranges Withdrawal

Sec. 2921. Short title and definitions.

Sec. 2922. Withdrawal and reservation of lands for El Centro.

Sec. 2923. Maps and legal descriptions.

Sec. 2924. Management of withdrawn lands.

Sec. 2925. Duration of withdrawal and reservation.

Sec. 2926. Continuation of ongoing decontamination activities.

Sec. 2927. Requirements for extension.

Sec. 2928. Early relinquishment of withdrawal.

Sec. 2929. Delegation of authority.

Sec. 2930. Hunting, fishing, and trapping.

Sec. 2931. Hold harmless.

Subtitle A—Fort Carson-Pinon Canyon

Military Lands Withdrawal

SEC. 2901. SHORT TITLE.

This subtitle may be cited as the ‘‘Fort Carson-Pinon Canyon

Military Lands Withdrawal Act’’.

SEC. 2902. WITHDRAWAL AND RESERVATION OF LANDS AT FORT

CARSON MILITARY RESERVATION.

(a) WITHDRAWAL.—Subject to valid existing rights and except

as otherwise provided in this subtitle, the lands at the Fort Carson

Military Reservation, Colorado, that are described in subsection

(c) are hereby withdrawn from all forms of appropriation under

the public land laws, including the mining laws, the mineral and

geothermal leasing laws, and the mineral materials disposal laws.

(b) RESERVATION.—The lands withdrawn under subsection (a)

are reserved for use by the Secretary of the Army—

Fort CarsonPinon Canyon

Military Lands

Withdrawal Act.
110 STAT. 2808 PUBLIC LAW 104–201—SEPT. 23, 1996

(1) for military maneuvering, training and weapons

firing; and

(2) for other defense related purposes consistent with the

uses specified in paragraph (1).

(c) LAND DESCRIPTION.—The lands referred to in subsection

(a) comprise 3,133.02 acres of public land and 11,415.16 acres

of federally-owned minerals in El Paso, Pueblo, and Fremont Counties, Colorado, as generally depicted on the map entitled ‘‘Fort

Carson Proposed Withdrawal—Fort Carson Base’’, dated February

6, 1992, and published in accordance with section 2904.

SEC. 2903. WITHDRAWAL AND RESERVATION OF LANDS AT PINON

CANYON MANEUVER SITE.

(a) WITHDRAWAL.—Subject to valid existing rights and except

as otherwise provided in this subtitle, the lands at the Pinon

Canyon Maneuver Site, Colorado, that are described in subsection

(c) are hereby withdrawn from all forms of appropriation under

the public land laws, including the mining laws, the mineral and

geothermal leasing laws, and the mineral materials disposal laws.

(b) RESERVATION.—The lands withdrawn under subsection (a)

are reserved for use by the Secretary of the Army—

(1) for military maneuvering and training; and

(2) for other defense related purposes consistent with the

uses specified in paragraph (1).

(c) LAND DESCRIPTION.—The lands referred to in subsection

(a) comprise 2,517.12 acres of public lands and 130,139 acres of

federally-owned minerals in Las Animas County, Colorado, as generally depicted on the map entitled ‘‘Fort Carson Proposed Withdrawal—Fort Carson Maneuver Area—Pinon Canyon site’’, dated

February 6, 1992, and published in accordance with section 2904.

SEC. 2904. MAPS AND LEGAL DESCRIPTIONS.

(a) PREPARATION OF MAPS AND LEGAL DESCRIPTION.—As soon

as practicable after the date of the enactment of this subtitle,

the Secretary of the Interior shall prepare maps depicting the

lands withdrawn and reserved by this subtitle and publish in the

Federal Register a notice containing the legal description of such

lands.

(b) LEGAL EFFECT.—Such maps and legal descriptions shall

have the same force and effect as if they were included in this

subtitle, except that the Secretary of the Interior may correct clerical and typographical errors in such maps and legal descriptions.

(c) AVAILABILITY OF MAPS AND LEGAL DESCRIPTION.—Copies

of such maps and legal descriptions shall be available for public

inspection in the offices of the Colorado State Director and the

Canon City District Manager of the Bureau of Land Management

and in the offices of the Commander of Fort Carson, Colorado.

(d) COSTS.—The Secretary of the Army shall reimburse the

Secretary of the Interior for the costs of implementing this section.

SEC. 2905. MANAGEMENT OF WITHDRAWN LANDS.

(a) MANAGEMENT GUIDELINES.—

(1) MANAGEMENT BY SECRETARY OF THE ARMY.—Except as

provided in section 2906, during the period of withdrawal,

the Secretary of the Army shall manage for military purposes the lands covered by this subtitle and may authorize

use of the lands by the other military departments and agencies

Federal Register,

publication.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2809

of the Department of Defense, and the National Guard, as

appropriate.

(2) ACCESS RESTRICTIONS.—When military operations, public safety, or national security, as determined by the Secretary

of the Army, require the closure of roads and trails on the

lands withdrawn by this subtitle commonly in public use, the

Secretary of the Army is authorized to take such action, except

that such closures shall be limited to the minimum areas and

periods required for the purposes specified in this subsection.

Appropriate warning notices shall be kept posted during closures.

(3) SUPPRESSION OF FIRES.—The Secretary of the Army

shall take necessary precautions to prevent and suppress brush

and range fires occurring within and outside the lands as

a result of military activities and may seek assistance from

the Bureau of Land Management in suppressing such fires.

The memorandum of understanding required by this section

shall provide for Bureau of Land Management assistance in

the suppression of such fires, and for a transfer of funds from

the Department of the Army to the Bureau of Land Management as compensation for such assistance.

(b) MANAGEMENT PLAN.—

(1) DEVELOPMENT REQUIRED.—The Secretary of the Army,

with the concurrence of the Secretary of the Interior, shall

develop a plan for the management of acquired lands and

lands withdrawn under sections 2902 and 2903 for the period

of withdrawal. The plan shall—

(A) be consistent with applicable law;

(B) include such provisions as may be necessary for

proper resource management and protection of the natural,

cultural, and other resources and values of such lands;

and

(C) identify those withdrawn and acquired lands, if

any, which are to be open to mining or mineral and geothermal leasing, including mineral materials disposal.

(2) TIME FOR DEVELOPMENT.—The management plan

required by this subsection shall be developed not later than

5 years after the date of the enactment of this subtitle.

(c) IMPLEMENTATION OF MANAGEMENT PLAN.—

(1) MEMORANDUM OF UNDERSTANDING REQUIRED.—The Secretary of the Army and the Secretary of the Interior shall

enter into a memorandum of understanding to implement the

management plan developed under subsection (b).

(2) DURATION.—The duration of any such memorandum

of understanding shall be the same as the period of withdrawal

specified in section 2908(a).

(3) AMENDMENT.—The memorandum of understanding may

be amended by agreement of both Secretaries.

(d) USE OF CERTAIN RESOURCES.—The Secretary of the Army

is authorized to utilize sand, gravel, or similar mineral or mineral

material resources from the lands withdrawn by this subtitle when

the use of such resources is required for construction needs of

the Fort Carson Reservation or Pinon Canyon Maneuver Site.
110 STAT. 2810 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 2906. MANAGEMENT OF WITHDRAWN AND ACQUIRED MINERAL

RESOURCES.

Except as provided in section 2905(d), the Secretary of the

Interior shall manage all withdrawn and acquired mineral resources

within the boundaries of the Fort Carson Military Reservation

and Pinon Canyon Maneuver Site in the same manner as provided

in section 12 of the Military Lands Withdrawal Act of 1986 (Public

Law 99–606; 100 Stat. 3466) for mining and mineral leasing on

certain lands withdrawn by that Act from all forms of appropriation

under the public land laws.

SEC. 2907. HUNTING, FISHING, AND TRAPPING.

All hunting, fishing, and trapping on the lands withdrawn

and reserved by this subtitle shall be conducted in accordance

with section 2671 of title 10, United States Code.

SEC. 2908. TERMINATION OF WITHDRAWAL AND RESERVATION.

(a) TERMINATION DATE.—The withdrawal and reservation made

by this subtitle shall terminate 15 years after the date of the

enactment of this subtitle.

(b) DETERMINATION OF CONTINUING MILITARY NEED.—

(1) DETERMINATION REQUIRED.—At least three years before

the termination under subsection (a) of the withdrawal and

reservation established by this subtitle, the Secretary of the

Army shall advise the Secretary of the Interior as to whether

or not the Department of the Army will have a continuing

military need for any of the lands after the termination date.

(2) METHOD OF MAKING DETERMINATION.—If the Secretary

of the Army concludes under paragraph (1) that there will

be a continuing military need for any of the lands after the

termination date established by subsection (a), the Secretary

of the Army, in accordance with applicable law, shall—

(A) evaluate the environmental effects of renewal of

such withdrawal and reservation;

(B) hold at least one public hearing in Colorado

concerning such evaluation; and

(C) file, after completing the requirements of subparagraphs (A) and (B), an application for extension of the

withdrawal and reservation of such lands in accordance

with the regulations and procedures of the Department

of the Interior applicable to the extension of withdrawals

for military uses.

(3) NOTIFICATION.—The Secretary of the Interior shall

notify the Congress concerning a filing under paragraph (3)(C).

(c) EARLY RELINQUISHMENT OF WITHDRAWAL.—If the Secretary

of the Army concludes under subsection (b) that before the termination date established by subsection (a) there will be no military

need for all or any part of the lands withdrawn and reserved

by this subtitle, or if, during the period of withdrawal, the Secretary

of the Army otherwise decides to relinquish any or all of the

lands withdrawn and reserved under this subtitle, the Secretary

of the Army shall file with the Secretary of the Interior a notice

of intention to relinquish such lands.

(d) ACCEPTANCE OF LANDS PROPOSED FOR RELINQUISHMENT.—

Notwithstanding any other provision of law, the Secretary of the

Interior, upon deciding that it is in the public interest to accept

jurisdiction over the lands proposed for relinquishment, may revoke
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2811

the withdrawal and reservation established by this subtitle as it

applies to the lands proposed for relinquishment. Should the decision be made to revoke the withdrawal and reservation, the Secretary of the Interior shall publish in the Federal Register an

appropriate order which shall—

(1) terminate the withdrawal and reservation;

(2) constitute official acceptance of full jurisdiction over

the lands by the Secretary of the Interior; and

(3) state the date upon which the lands will be opened

to the operation of the public land laws, including the mining

laws if appropriate.

SEC. 2909. DETERMINATION OF PRESENCE OF CONTAMINATION AND

EFFECT OF CONTAMINATION.

(a) DETERMINATION OF PRESENCE OF CONTAMINATION.—

(1) BEFORE RELINQUISHMENT NOTICE.—Before filing a relinquishment notice under section 2908(c), the Secretary of the

Army shall prepare a written determination as to whether

and to what extent the lands to be relinquished are contaminated with explosive, toxic, or other hazardous materials. A

copy of the determination made by the Secretary of the Army

shall be supplied with the relinquishment notice. Copies of

both the relinquishment notice and the determination under

this subsection shall be published in the Federal Register by

the Secretary of the Interior.

(2) UPON TERMINATION OF WITHDRAWAL.—At the expiration

of the withdrawal period made by this Act, the Secretary of

the Interior shall determine whether and to what extent the

lands withdrawn by this subtitle are contaminated to an extent

which prevents opening such contaminated lands to operation

of the public land laws.

(b) PROGRAM OF DECONTAMINATION.—

(1) IN GENERAL.—Throughout the duration of the withdrawal and reservation made by this subtitle, the Secretary

of the Army, to the extent funds are made available, shall

maintain a program of decontamination of the lands withdrawn

by this subtitle at least at the level of effort carried out during

fiscal year 1992.

(2) DECONTAMINATION OF LANDS TO BE RELINQUISHED.—

In the case of lands subject to a relinquishment notice under

section 2908(c) that are contaminated, the Secretary of the

Army shall decontaminate the land to the extent that funds

are appropriated for such purpose if the Secretary of the

Interior, in consultation with the Secretary of the Army, determines that—

(A) decontamination of the lands is practicable and

economically feasible, taking into consideration the potential future use and value of the land; and

(B) upon decontamination, the land could be opened

to the operation of some or all of the public land laws,

including the mining laws.

(c) AUTHORITY OF SECRETARY OF THE INTERIOR TO REFUSE

CONTAMINATED LANDS.—The Secretary of the Interior shall not

be required to accept lands proposed for relinquishment if the

Secretary of the Army and the Secretary of the Interior conclude

that—

Federal Register,

publication.
110 STAT. 2812 PUBLIC LAW 104–201—SEPT. 23, 1996

(1) decontamination of any or all of the lands proposed

for relinquishment is not practicable or economically feasible;

(2) the lands cannot be decontaminated sufficiently to allow

them to be opened to the operation of the public land

laws; or

(3) insufficient funds are appropriated for the purpose of

decontaminating the lands.

(d) EFFECT OF CONTINUED CONTAMINATION.—If the Secretary

of the Interior declines under subsection (c) to accept jurisdiction

of lands proposed for relinquishment or if the Secretary of the

Interior determines under subsection (a)(2) that some of the lands

withdrawn by this subtitle are contaminated to an extent that

prevents opening the contaminated lands to operation of the public

land laws—

(1) the Secretary of the Army shall take appropriate steps

to warn the public of the contaminated state of such lands

and any risks associated with entry onto such lands;

(2) after the expiration of the withdrawal, the Secretary

of the Army shall undertake no activities on such lands except

in connection with decontamination of such lands; and

(3) the Secretary of the Army shall report to the Secretary

of the Interior and to the Congress concerning the status of

such lands and all actions taken under paragraphs (1) and

(2).

(e) EFFECT OF SUBSEQUENT DECONTAMINATION.—If the lands

described in subsection (d) are subsequently decontaminated, upon

certification by the Secretary of the Army that the lands are safe

for all nonmilitary uses, the Secretary of the Interior shall

reconsider accepting jurisdiction over the lands.

(f) EFFECT ON OTHER LAWS.—Nothing in this subtitle shall

affect, or be construed to affect, the obligations of the Secretary

of the Army, if any, to decontaminate lands withdrawn by this

subtitle pursuant to applicable law, including the Comprehensive

Environmental Response Compensation and Liability Act of 1980

(42 U.S.C. 9601 et seq.) and the Solid Waste Disposal Act (42

U.S.C. 6901 et seq.).

SEC. 2910. DELEGATION.

The functions of the Secretary of the Army under this subtitle

may be delegated. The functions of the Secretary of the Interior

under this subtitle may be delegated, except that the order referred

to in section 2908(d) may be approved and signed only by the

Secretary of the Interior, the Deputy Secretary of the Interior,

or an Assistant Secretary of the Department of the Interior.

SEC. 2911. HOLD HARMLESS.

Any party conducting any mining, mineral, or geothermal leasing activity on lands comprising the Fort Carson Reservation or

Pinon Canyon Maneuver Site shall indemnify the United States

against any costs, fees, damages, or other liabilities (including costs

of litigation) incurred by the United States and arising from or

relating to such mining activities, including costs of mineral materials disposal, whether arising under the Comprehensive Environmental Response Compensation and Liability Act of 1980, the Solid

Waste Disposal Act, or otherwise.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2813

SEC. 2912. AMENDMENT TO MILITARY LANDS WITHDRAWAL ACT OF

1986.

(a) USE OF CERTAIN RESOURCES.—Section 3(f) of the Military

Lands Withdrawal Act of 1986 (Public Law 99–606; 100 Stat. 3461)

is amended by adding at the end the following new paragraph:

‘‘(2) Subject to valid existing rights, the Secretary of the military

department concerned may utilize sand, gravel, or similar mineral

or material resources when the use of such resources is required

for construction needs on the respective lands withdrawn by this

Act.’’.

(b) TECHNICAL CORRECTION.—Section 9(b) of the Military Lands

Withdrawal Act of 1986 (Public Law 99–606; 100 Stat. 3466) is

amended by striking ‘‘section 7(f)’’ and inserting in lieu thereof

‘‘section 8(f)’’.

SEC. 2913. AUTHORIZATION OF APPROPRIATIONS.

There are hereby authorized to be appropriated such sums

as may be necessary to carry out the purposes of this subtitle.

Subtitle B—El Centro Naval Air Facility

Ranges Withdrawal

SEC. 2921. SHORT TITLE AND DEFINITIONS.

(a) SHORT TITLE.—This subtitle may be cited as the ‘‘El Centro

Naval Air Facility Ranges Withdrawal Act’’.

(b) DEFINITIONS.—In this subtitle:

(1) The term ‘‘El Centro’’ means the Naval Air Facility,

El Centro, California.

(2) The term ‘‘cooperative agreement’’ means the cooperative agreement entered into between the Bureau of Land

Management, the Bureau of Reclamation, and the Department

of the Navy, dated June 29, 1987, with regard to the defenserelated uses of Federal lands to further the mission of El

Centro.

(3) The term ‘‘relinquishment notice’’ means a notice of

intention by the Secretary of the Navy under section 2928(a)

to relinquish, before the termination date specified in section

2925, the withdrawal and reservation of certain lands withdrawn under this subtitle.

SEC. 2922. WITHDRAWAL AND RESERVATION OF LANDS FOR EL

CENTRO.

(a) WITHDRAWALS.—Subject to valid existing rights, and except

as otherwise provided in this subtitle, the Federal lands utilized

in the mission of the Naval Air Facility, El Centro, California,

that are described in subsection (c) are hereby withdrawn from

all forms of appropriation under the public land laws, including

the mining laws, but not the mineral leasing or geothermal leasing

laws or the mineral materials sales laws.

(b) RESERVATION.—The lands withdrawn under subsection (a)

are reserved for the use by the Secretary of the Navy—

(1) for defense-related purposes in accordance with the

cooperative agreement; and

(2) subject to notice to the Secretary of the Interior under

section 2924(e), for other defense-related purposes determined

by the Secretary of the Navy.

El Centro Naval

Air Facility

Ranges

Withdrawal Act.

California.
110 STAT. 2814 PUBLIC LAW 104–201—SEPT. 23, 1996

(c) DESCRIPTION OF WITHDRAWN LANDS.—The lands withdrawn

and reserved under subsection (a) are—

(1) the Federal lands comprising approximately 46,600

acres in Imperial County, California, as generally depicted in

part on a map entitled ‘‘Exhibit A, Naval Air Facility, El

Centro, California, Land Acquisition Map, Range 2510 (West

Mesa)’’ and dated March 1993 and in part on a map entitled

‘‘Exhibit B, Naval Air Facility, El Centro, California, Land

Acquisition Map Range 2512 (East Mesa)’’ and dated March

1993; and

(2) and all other areas within the boundaries of such lands

as depicted on such maps that may become subject to the

operation of the public land laws.

SEC. 2923. MAPS AND LEGAL DESCRIPTIONS.

(a) PUBLICATION AND FILING REQUIREMENTS.—As soon as practicable after the date of the enactment of this subtitle, the Secretary

of the Interior shall—

(1) publish in the Federal Register a notice containing

the legal description of the lands withdrawn and reserved under

this subtitle; and

(2) file maps and the legal description of the lands withdrawn and reserved under this subtitle with the Committee

on Energy and Natural Resources of the Senate and with

the Committee on Resources of the House of Representatives.

(b) LEGAL EFFECT.—The maps and legal description prepared

under subsection (a) shall have the same force and effect as if

they were included in this subtitle, except that the Secretary of

the Interior may correct clerical and typographical errors in the

maps and legal description.

(c) AVAILABILITY FOR PUBLIC INSPECTION.—Copies of the maps

and legal description prepared under subsection (a) shall be available for public inspection in—

(1) the Office of the State Director, California State Office

of the Bureau of Land Management, Sacramento, California;

(2) the Office of the District Manager, California Desert

District of the Bureau of Land Management, Riverside,

California; and

(3) the Office of the Commanding Officer, Marine Corps

Air Station, Yuma, Arizona.

(d) REIMBURSEMENT.—The Secretary of Navy shall reimburse

the Secretary of the Interior for the cost of implementing this

section.

SEC. 2924. MANAGEMENT OF WITHDRAWN LANDS.

(a) MANAGEMENT CONSISTENT WITH COOPERATIVE AGREEMENT.—The lands and resources shall be managed in accordance

with the cooperative agreement, revised as necessary to conform

to the provisions of this subtitle. The parties to the cooperative

agreement shall review the cooperative agreement for conformance

with this subtitle and amend the cooperative agreement, if appropriate, within 120 days after the date of the enactment of this

subtitle. The term of the cooperative agreement shall be amended

so that its duration is at least equal to the duration of the withdrawal made by section 2925. The cooperative agreement may be

reviewed and amended by the managing agencies as necessary.

(b) MANAGEMENT BY SECRETARY OF THE INTERIOR.—

Federal Register,

publication.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2815

(1) GENERAL MANAGEMENT AUTHORITY.—During the period

of withdrawal, the Secretary of the Interior shall manage the

lands withdrawn and reserved under this subtitle pursuant

to the Federal Land Policy and Management Act of 1976 (43

U.S.C. 1701 et seq.) and other applicable laws, including this

subtitle.

(2) SPECIFIC AUTHORITIES.—To the extent consistent with

applicable laws, Executive orders, and the cooperative agreement, the lands withdrawn and reserved under this subtitle

may be managed in a manner permitting—

(A) protection of wildlife and wildlife habitat;

(B) control of predatory and other animals;

(C) the prevention and appropriate suppression of

brush and range fires resulting from nonmilitary activities;

and

(D) geothermal leasing and development and related

power production, mineral leasing and development, and

mineral material sales.

(3) EFFECT OF WITHDRAWAL.—The Secretary of the Interior

shall manage the lands withdrawn and reserved under this

subtitle, in coordination with the Secretary of the Navy, such

that all nonmilitary use of such lands, including the uses

described in paragraph (2), shall be subject to such conditions

and restrictions as may be necessary to permit the military

use of such lands for the purposes specified in the cooperative

agreement or authorized pursuant to this subtitle.

(c) CERTAIN ACTIVITIES SUBJECT TO CONCURRENCE OF NAVY.—

The Secretary of the Interior may issue a lease, easement,

right-of-way, or other authorization with respect to the nonmilitary

use of the withdrawn lands only with the concurrence of the Secretary of the Navy and under the terms of the cooperative agreement.

(d) ACCESS RESTRICTIONS.—If the Secretary of the Navy determines that military operations, public safety, or national security

require the closure to public use of any road, trail, or other portion

of the lands withdrawn under this subtitle, the Secretary may

take such action as the Secretary determines necessary or desirable

to effect and maintain such closure. Any such closure shall be

limited to the minimum areas and periods which the Secretary

of the Navy determines are required to carry out this subsection.

Before and during any closure under this subsection, the Secretary

of the Navy shall keep appropriate warning notices posted and

take appropriate steps to notify the public concerning such closures.

(e) ADDITIONAL MILITARY USES.—Lands withdrawn under this

subtitle may be used for defense-related uses other than those

specified in the cooperative agreement. The Secretary of the Navy

shall promptly notify the Secretary of the Interior in the event

that the lands withdrawn under this subtitle will be used for

additional defense-related purposes. Such notification shall indicate

the additional use or uses involved, the proposed duration of such

uses, and the extent to which such additional military uses of

the withdrawn lands will require that additional or more stringent

conditions or restrictions be imposed on otherwise-permitted nonmilitary uses of all or any portion of the withdrawn lands.

Notification.

Notification.
110 STAT. 2816 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 2925. DURATION OF WITHDRAWAL AND RESERVATION.

The withdrawal and reservation made under this subtitle shall

terminate 25 years after the date of the enactment of this subtitle.

SEC. 2926. CONTINUATION OF ONGOING DECONTAMINATION

ACTIVITIES.

Throughout the duration of the withdrawal and reservation

made under this subtitle, and subject to the availability of funds,

the Secretary of the Navy shall maintain a program of decontamination of the lands withdrawn under this subtitle at least at the

level of decontamination activities performed on such lands in fiscal

year 1995. Such activities shall be subject to applicable laws, such

as the amendments made by the Federal Facility Compliance Act

of 1992 (Public Law 102–386; 106 Stat. 1505) and the Defense

Environmental Restoration Program established under section 2701

of title 10, United States Code.

SEC. 2927. REQUIREMENTS FOR EXTENSION.

(a) NOTICE OF CONTINUED MILITARY NEED.—Not later than

five years before the termination date specified in section 2925,

the Secretary of the Navy shall advise the Secretary of the Interior

as to whether or not the Navy will have a continuing military

need for any or all of the lands withdrawn and reserved under

this subtitle after the termination date.

(b) APPLICATION FOR EXTENSION.—If the Secretary of the Navy

determines that there will be a continuing military need for any

or all of the withdrawn lands after the termination date specified

in section 2925, the Secretary of the Navy shall file an application

for extension of the withdrawal and reservation of the lands in

accordance with the then existing regulations and procedures of

the Department of the Interior applicable to extension of withdrawal

of lands for military purposes and that are consistent with this

subtitle. Such application shall be filed with the Department of

the Interior not later than four years before the termination date.

(c) EXTENSION PROCESS.—The withdrawal and reservation

established by this subtitle may not be extended except by an

Act or Joint Resolution of Congress.

SEC. 2928. EARLY RELINQUISHMENT OF WITHDRAWAL.

(a) FILING OF RELINQUISHMENT NOTICE.—If, during the period

of withdrawal and reservation specified in section 2925, the Secretary of the Navy decides to relinquish all or any portion of

the lands withdrawn and reserved under this subtitle, the Secretary

of the Navy shall file a notice of intention to relinquish with

the Secretary of the Interior.

(b) DETERMINATION OF PRESENCE OF CONTAMINATION.—Before

transmitting a relinquishment notice under subsection (a), the Secretary of the Navy, in consultation with the Secretary of the

Interior, shall prepare a written determination concerning whether

and to what extent the lands to be relinquished are contaminated

with explosive, toxic, or other hazardous wastes and substances.

A copy of such determination shall be transmitted with the relinquishment notice.

(c) DECONTAMINATION AND REMEDIATION.—In the case of

contaminated lands which are the subject of a relinquishment

notice, the Secretary of the Navy shall decontaminate or remediate

the land to the extent that funds are appropriated for such purpose
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2817

if the Secretary of the Interior, in consultation with the Secretary

of the Navy, determines that—

(1) decontamination or remediation of the lands is practicable and economically feasible, taking into consideration the

potential future use and value of the land; and

(2) upon decontamination or remediation, the land could

be opened to the operation of some or all of the public land

laws, including the mining laws.

(d) DECONTAMINATION AND REMEDIATION ACTIVITIES SUBJECT

TO OTHER LAWS.—The activities of the Secretary of the Navy under

subsection (c) are subject to applicable laws and regulations, including the Defense Environmental Restoration Program established

under section 2701 of title 10, United States Code, the Comprehensive Environmental Response Compensation and Liability Act of

1980 (42 U.S.C. 9601 et seq.), and the Solid Waste Disposal Act

(42 U.S.C. 6901 et seq.).

(e) AUTHORITY OF SECRETARY OF THE INTERIOR TO REFUSE

CONTAMINATED LANDS.—The Secretary of the Interior shall not

be required to accept lands specified in a relinquishment notice

if the Secretary of the Interior, after consultation with the Secretary

of the Navy, concludes that—

(1) decontamination or remediation of any land subject

to the relinquishment notice is not practicable or economically

feasible;

(2) the land cannot be decontaminated or remediated

sufficiently to be opened to operation of some or all of the

public land laws; or

(3) a sufficient amount of funds are not appropriated for

the decontamination of the land.

(f) STATUS OF CONTAMINATED LANDS.—If, because of the condition of the lands, the Secretary of the Interior declines to accept

jurisdiction of lands proposed for relinquishment or, if at the expiration of the withdrawal made under this subtitle, the Secretary

of the Interior determines that some of the lands withdrawn under

this subtitle are contaminated to an extent which prevents opening

such contaminated lands to operation of the public land laws—

(1) the Secretary of the Navy shall take appropriate steps

to warn the public of the contaminated state of such lands

and any risks associated with entry onto such lands;

(2) after the expiration of the withdrawal, the Secretary

of the Navy shall retain jurisdiction over the withdrawn lands,

but shall undertake no activities on such lands except in connection with the decontamination or remediation of such

lands; and

(3) the Secretary of the Navy shall report to the Secretary

of the Interior and to the Congress concerning the status of

such lands and all actions taken under paragraphs (1)

and (2).

(g) SUBSEQUENT DECONTAMINATION OR REMEDIATION.—If lands

covered by subsection (f) are subsequently decontaminated or

remediated and the Secretary of the Navy certifies that the lands

are safe for nonmilitary uses, the Secretary of the Interior shall

reconsider accepting jurisdiction over the lands.

(h) REVOCATION AUTHORITY.—Notwithstanding any other provision of law, upon deciding that it is in the public interest to

accept jurisdiction over lands specified in a relinquishment notice,

the Secretary of the Interior may revoke the withdrawal and

reservation made under this subtitle as it applies to such lands.

Reports.

Safety.
110 STAT. 2818 PUBLIC LAW 104–201—SEPT. 23, 1996

If the decision be made to accept the relinquishment and to revoke

the withdrawal and reservation, the Secretary of the Interior shall

publish in the Federal Register an appropriate order which shall—

(1) terminate the withdrawal and reservation;

(2) constitute official acceptance of full jurisdiction over

the lands by the Secretary of the Interior; and

(3) state the date upon which the lands will be opened

to the operation of the public land laws, including the mining

laws, if appropriate.

SEC. 2929. DELEGATION OF AUTHORITY.

(a) DEPARTMENT OF THE NAVY.—The functions of the Secretary

of the Navy under this subtitle may be delegated.

(b) DEPARTMENT OF THE INTERIOR.—The functions of the Secretary of the Interior under this subtitle may be delegated, except

that an order described in section 2928(h) may be approved and

signed only by the Secretary of the Interior, the Deputy Secretary

of the Interior, or an Assistant Secretary of the Department of

the Interior.

SEC. 2930. HUNTING, FISHING, AND TRAPPING.

All hunting, fishing, and trapping on the lands withdrawn

under this subtitle shall be conducted in accordance with section

2671 of title 10, United States Code.

SEC. 2931. HOLD HARMLESS.

Any party conducting any mining, mineral, or geothermal leasing activity on lands withdrawn and reserved under this subtitle

shall indemnify the United States against any costs, fees, damages,

or other liabilities (including costs of litigation) incurred by the

United States and arising from or relating to such mining activities,

including costs of mineral materials disposal, whether arising under

the Comprehensive Environmental Response Compensation and

Liability Act of 1980, the Solid Waste Disposal Act, or otherwise.

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. Defense fixed asset acquisition/privatization.

Sec. 3104. Other defense activities.

Sec. 3105. Defense nuclear waste disposal.

Subtitle B—Recurring General Provisions

Sec. 3121. Reprogramming.

Sec. 3122. Limits on general plant projects.

Sec. 3123. Limits on construction projects.

Safety.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2819

Sec. 3124. Fund transfer authority.

Sec. 3125. Authority for conceptual and construction design.

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

Sec. 3127. Funds available for all national security programs of the Department of

Energy.

Sec. 3128. Availability of funds.

Subtitle C—Program Authorizations, Restrictions, and Limitations

Sec. 3131. Stockpile stewardship program.

Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile.

Sec. 3133. Tritium production.

Sec. 3134. Modernization and consolidation of tritium recycling facilities.

Sec. 3135. Production of high explosives.

Sec. 3136. Limitation on use of funds for certain research and development

purposes.

Sec. 3137. Prohibition on funding nuclear weapons activities with People’s Republic

of China.

Sec. 3138. International cooperative stockpile stewardship programs.

Sec. 3139. Temporary authority relating to transfers of defense environmental

management funds.

Sec. 3140. Management structure for nuclear weapons production facilities and

nuclear weapons laboratories.

Sec. 3141. Accelerated schedule for isolating high-level nuclear waste at the

defense waste processing facility, Savannah River Site.

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

fuel rods.

Sec. 3143. Projects to accelerate closure activities at defense nuclear facilities.

Sec. 3144. Payment of costs of operation and maintenance of infrastructure at

Nevada Test Site.

Subtitle D—Other Matters

Sec. 3151. Report on plutonium pit production and remanufacturing plans.

Sec. 3152. Amendments relating to baseline environmental management reports.

Sec. 3153. Requirement to develop future use plans for environmental management

program.

Sec. 3154. Report on Department of Energy liability at Department superfund

sites.

Sec. 3155. Requirement for annual five-year budget for the national security

programs of the Department of Energy.

Sec. 3156. Requirements for Department of Energy weapons activities budgets for

fiscal years after fiscal year 1997.

Sec. 3157. Repeal of requirement relating to accounting procedures for Department

of Energy funds.

Sec. 3158. Update of report on nuclear test readiness postures.

Sec. 3159. Reports on critical difficulties at nuclear weapons laboratories and

nuclear weapons production plants.

Sec. 3160. Extension of applicability of notice-and-wait requirement regarding

proposed cooperation agreements.

Sec. 3161. Sense of Senate relating to redesignation of defense environmental

restoration and waste management program.

Sec. 3162. Commission on maintaining United States nuclear weapons expertise.

Sec. 3163. Sense of Congress regarding reliability and safety of remaining nuclear

forces.

Sec. 3164. Study on worker protection at the Mound facility.

Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement Project,

Livermore, California.

Sec. 3166. Fellowship program for development of skills critical to Department of

Energy nuclear weapons complex.

Subtitle E—Defense Nuclear Environmental Cleanup and Management

Sec. 3171. Purpose.

Sec. 3172. Applicability.

Sec. 3173. Site manager.

Sec. 3174. Department of Energy orders.

Sec. 3175. Deployment of technology for remediation of defense nuclear waste.

Sec. 3176. Performance-based contracting.

Sec. 3177. Designation of covered facilities as environmental cleanup demonstration areas.

Sec. 3178. Definitions.

Sec. 3179. Termination.

Sec. 3180. Report.
110 STAT. 2820 PUBLIC LAW 104–201—SEPT. 23, 1996

Subtitle F—Waste Isolation Pilot Plant Land Withdrawal Act Amendments

Sec. 3181. Short title.

Sec. 3182. Definitions.

Sec. 3183. Management plan.

Sec. 3184. Repeal of test phase and retrieval plans.

Sec. 3185. Test phase activities.

Sec. 3186. Disposal operations.

Sec. 3187. Environmental Protection Agency disposal regulations.

Sec. 3188. Compliance with environmental laws and regulations.

Sec. 3189. Sense of Congress on commencement of emplacement of transuranic

waste.

Sec. 3190. Decommissioning of WIPP.

Sec. 3191. Authorizations for economic assistance and miscellaneous payments.

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 1997 for stockpile stewardship in carrying

out weapons activities necessary for national security programs

in the amount of $1,661,767,000, to be allocated as follows:

(1) For core stockpile stewardship, $1,235,907,000, to be

allocated as follows:

(A) For operation and maintenance, $1,147,570,000.

(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),

$88,337,000, to be allocated as follows:

Project 96–D–102, stockpile stewardship facilities

revitalization, Phase VI, various locations, $19,250,000.

Project 96–D–103, ATLAS, Los Alamos National

Laboratory, Los Alamos, New Mexico, $15,100,000.

Project 96–D–104, processing and environmental

technology laboratory (PETL), Sandia National Laboratories, Albuquerque, New Mexico, $14,100,000.

Project 96–D–105, contained firing facility addition, Lawrence Livermore National Laboratory, Livermore, California, $17,100,000.

Project 95–D–102, Chemical and Metallurgy

Research Building upgrades project, Los Alamos National Laboratory, Los Alamos, New Mexico,

$15,000,000.

Project 94–D–102, nuclear weapons research,

development, and testing facilities revitalization, Phase

V, various locations, $7,787,000.

(2) For inertial fusion, $366,460,000, to be allocated

as follows:

(A) For operation and maintenance, $234,560,000.

(B) For the following plant project (including maintenance, restoration, planning, construction, acquisition, and

modification of facilities, and land acquisition related thereto), $131,900,000 to be allocated as follows:

Project 96–D–111, national ignition facility, location to be determined, $131,900,000.

(3) For technology transfer and education, $59,400,000.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2821

(b) STOCKPILE MANAGEMENT.—Subject to subsection (d), funds

are hereby authorized to be appropriated to the Department of

Energy for fiscal year 1997 for stockpile management in carrying

out weapons activities necessary for national security programs

in the amount of $1,962,831,000, to be allocated as follows:

(1) For operation and maintenance, $1,868,470,000.

(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), $94,361,000, to be allocated

as follows:

Project 97–D–121, consolidated pit packaging system,

Pantex Plant, Amarillo, Texas, $870,000.

Project 97–D–122, nuclear materials storage facility

renovation, Los Alamos National Laboratory, Los Alamos,

New Mexico, $4,000,000.

Project 97–D–123, structural upgrades, Kansas City

Plant, Kansas City, Missouri, $1,400,000.

Project 97–D–124, steam plant wastewater treatment

facility upgrade, Y–12 Plant, Oak Ridge, Tennessee,

$600,000.

Project 96–D–122, sewage treatment quality upgrade

(STQU), Pantex Plant, Amarillo, Texas, $100,000.

Project 96–D–123, retrofit heating, ventilation, and air

conditioning and chillers for ozone protection, Y–12 Plant,

Oak Ridge, Tennessee, $7,000,000.

Project 96–D–125, Washington measurements operations facility, Andrews Air Force Base, Camp Springs,

Maryland, $3,825,000.

Project 95–D–122, sanitary sewer upgrade, Y–12 Plant,

Oak Ridge, Tennessee, $10,900,000.

Project 94–D–124, hydrogen fluoride supply system,

Y–12 Plant, Oak Ridge, Tennessee, $4,900,000.

Project 94–D–125, upgrade life safety, Kansas City

Plant, Kansas City, Missouri, $5,200,000.

Project 94–D–127, emergency notification system,

Pantex Plant, Amarillo, Texas, $2,200,000.

Project 93–D–122, life safety upgrades, Y–12 Plant,

Oak Ridge, Tennessee, $7,200,000.

Project 93–D–123, complex-21, various locations,

$14,487,000.

Project 88–D–122, facilities capability assurance

program, various locations, $21,940,000.

Project 88–D–123, security enhancement, Pantex

Plant, Amarillo, Texas, $9,739,000.

(c) PROGRAM DIRECTION.—Subject to subsection (d), funds are

hereby authorized to be appropriated to the Department of Energy

for fiscal year 1997 for program direction in carrying out weapons

activities necessary for national security programs in the amount

of $313,404,000.

(d) ADJUSTMENT.—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

$20,000,000 for use of prior year balances.
110 STAT. 2822 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

(a) ENVIRONMENTAL RESTORATION.—Subject to subsection (j),

funds are hereby authorized to be appropriated to the Department

of Energy for fiscal year 1997 for environmental restoration in

carrying out environmental restoration and waste management

activities necessary for national security programs in the amount

of $1,762,194,000, of which $376,648,000 shall be allocated to the

uranium enrichment decontamination and decommissioning fund.

(b) WASTE MANAGEMENT.—Subject to subsection (j), funds are

hereby authorized to be appropriated to the Department of Energy

for fiscal year 1997 for waste management in carrying out environmental restoration and waste management activities necessary for

national security programs in the amount of $1,578,653,000, to

be allocated as follows:

(1) For operation and maintenance, $1,490,326,000.

(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), $88,327,000, to be allocated

as follows:

Project 97–D–402, tank farm restoration and safe oper- ations, Richland, Washington, $7,584,000.

Project 96–D–408, waste management upgrades, various locations, $11,246,000.

Project 95–D–402, install permanent electrical service,

Waste Isolation Pilot Plant, Carlsbad, New Mexico,

$752,000.

Project 95–D–405, industrial landfill V and construction/demolition landfill VII, Y–12 Plant, Oak Ridge,

Tennessee, $200,000.

Project 94–D–404, Melton Valley storage tank capacity

increase, Oak Ridge National Laboratory, Oak Ridge,

Tennessee, $6,345,000.

Project 94–D–407, initial tank retrieval systems, Rich- land, Washington, $12,600,000.

Project 93–D–182, replacement of cross-site transfer

system, Richland, Washington, $8,100,000.

Project 93–D–187, high-level waste removal from filled

waste tanks, Savannah River Site, Aiken, South Carolina,

$20,000,000.

Project 89–D–174, replacement high-level waste evaporator, Savannah River Site, Aiken, South Carolina,

$11,500,000.

Project 86–D–103, decontamination and waste treatment facility, Lawrence Livermore National Laboratory,

Livermore, California, $10,000,000.

(c) NUCLEAR MATERIALS AND FACILITIES STABILIZATION.—Subject to subsection (j), funds are hereby authorized to be appropriated

to the Department of Energy for fiscal year 1997 for nuclear materials and facilities stabilization in carrying out environmental restoration and waste management activities necessary for national

security programs in the amount of $1,291,290,000 to be allocated

as follows:

(1) For operation and maintenance, $1,173,718,000.

(2) For plant projects (including maintenance, restoration,

planning, construction, acquisition, modification of facilities,
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2823

and the continuation of projects authorized in prior years, and

land acquisition related thereto), $117,572,000, to be allocated

as follows:

Project 97–D–450, Actinide packaging and storage

facility, Savannah River Site, Aiken, South Carolina,

$7,900,000.

Project 97–D–451, B-Plant safety class ventilation

upgrades, Richland, Washington, $1,500,000.

Project 97–D–470, environmental monitoring laboratory, Savannah River Site, Aiken, South Carolina,

$2,500,000.

Project 97–D–473, health physics site support facility,

Savannah River Site, Aiken, South Carolina, $2,000,000.

Project 96–D–406, spent nuclear fuels canister storage

and stabilization facility, Richland, Washington,

$60,672,000.

Project 96–D–461, electrical distribution upgrade,

Idaho National Engineering Laboratory, Idaho, $6,790,000.

Project 96–D–464, electrical and utility systems

upgrade, Idaho Chemical Processing Plant, Idaho National

Engineering Laboratory, Idaho, $10,440,000.

Project 96–D–471, chlorofluorocarbon heating, ventilation, and air conditioning and chiller retrofit, Savannah

River Site, Aiken, South Carolina, $8,541,000.

Project 95–E–600, hazardous materials management

and emergency response training center, Richland,

Washington, $7,900,000.

Project 95–D–155, upgrade site road infrastructure,

Savannah River Site, South Carolina, $4,137,000.

Project 95–D–456, security facilities consolidation,

Idaho Chemical Processing Plant, Idaho National Engineering Laboratory, Idaho, $4,645,000.

Project 94–D–401, emergency response facility, Idaho

National Engineering Laboratory, Idaho, $547,000.

(d) PROGRAM DIRECTION.—Subject to subsection (j), funds are

hereby authorized to be appropriated to the Department of Energy

for fiscal year 1997 for program direction in carrying out environmental restoration and waste management activities necessary for

national security programs in the amount of $411,511,000.

(e) TECHNOLOGY DEVELOPMENT.—Subject to subsection (j),

funds are hereby authorized to be appropriated to the Department

of Energy for fiscal year 1997 for technology development in carrying out environmental restoration and waste management activities

necessary for national security programs in the amount of

$303,771,000.

(f) POLICY AND MANAGEMENT.—Subject to subsection (j), funds

are hereby authorized to be appropriated to the Department of

Energy for fiscal year 1997 for policy and management in carrying

out environmental restoration and waste management activities

necessary for national security programs in the amount of

$23,155,000.

(g) ENVIRONMENTAL SCIENCE PROGRAM.—Subject to subsection

(j), funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1997 for the environmental science

program in carrying out environmental restoration and waste

management activities necessary for national security programs

in the amount of $62,136,000.
110 STAT. 2824 PUBLIC LAW 104–201—SEPT. 23, 1996

(h) ENVIRONMENTAL MANAGEMENT PRIVATIZATION.—Subject to

subsection (j), funds are hereby authorized to be appropriated to

the Department of Energy for fiscal year 1997 for environmental

management privatization in carrying out environmental restoration and waste management activities necessary for national

security programs in the amount of $185,000,000.

(i) CLOSURE PROJECTS.—Subject to subsection (j), funds are

hereby authorized to be appropriated to the Department of Energy

for fiscal year 1997 for closure projects selected under section 3143

in the amount of $50,000,000.

(j) 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 (i) reduced

by the sum of— (1) $150,400,000, for use of prior year balances; and

(2) $8,000,000, for Savannah River Pension Refund.

SEC. 3103. DEFENSE FIXED ASSET ACQUISITION/PRIVATIZATION.

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1997 for the defense fixed asset

acquisition/privatization program in the amount of $182,000,000.

SEC. 3104. OTHER DEFENSE ACTIVITIES.

(a) IN GENERAL.—Subject to subsection (b), funds are hereby

authorized to be appropriated to the Department of Energy for

fiscal year 1997 for other defense activities in carrying out programs

necessary for national security in the amount of $1,590,231,000,

to be allocated as follows:

(1) For verification and control technology, $456,348,000,

to be allocated as follows:

(A) For nonproliferation and verification research and development, $204,919,000. (B) For arms control, $216,244,000.

(C) For intelligence, $35,185,000. (2) For nuclear safeguards and security, $47,208,000.

(3) For security investigations, $22,000,000.

(4) For emergency management, $16,794,000.

(5) For program direction, $88,122,000.

(6) For international nuclear safety, $15,200,000.

(7) For environment, safety, and health, defense, $63,800,000.

(8) For worker and community transition assistance, $67,000,000. (9) For fissile materials disposition, $93,796,000, to be

allocated as follows:

(A) For operation and maintenance, $76,796,000.

(B) For the following plant project (including maintenance, restoration, planning, construction, acquisition, and

modification of facilities, and land acquisition related

thereto):

Project 97–D–140, consolidated special nuclear

materials storage facility, site to be determined,

$17,000,000.

(10) For nuclear security/Russian production reactor shut- down, $6,000,000.

(11) For naval reactors development, $681,932,000, to be

allocated as follows:

(A) For operation and infrastructure, $649,330,000.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2825

(B) For program direction, $18,902,000.

(C) 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),

$13,700,000, to be allocated as follows:

Project 97–D–201, advanced test reactor secondary

coolant refurbishment, Idaho National Engineering

Laboratory, Idaho, $400,000.

Project 95–D–200, laboratory systems and hot cell

upgrades, various locations, $4,800,000.

Project 95–D–201, advanced test reactor radioactive waste system upgrades, Idaho National

Engineering Laboratory, Idaho, $500,000.

Project 90–N–102, expended core facility dry cell

project, Naval Reactors Facility, Idaho, $8,000,000.

(b) ADJUSTMENT.—The total amount authorized to be appropriated pursuant to this section is the sum of the amounts authorized to be appropriated in paragraphs (1) through (10) of subsection

(a) reduced by $25,500,000 for use of prior year balances.

SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 1997 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

$200,000,000.

Subtitle B—Recurring General Provisions

SEC. 3121. REPROGRAMMING.

(a) IN GENERAL.—Until the Secretary of Energy submits to

the congressional defense committees the report referred to in subsection (b) and a period of 30 days has elapsed after the date

on which such committees receive the report, the Secretary may

not use amounts appropriated pursuant to this title for any

program—

(1) in amounts that exceed, in a fiscal year—

(A) 110 percent of the amount authorized for that

program by this title; or

(B) $1,000,000 more than the amount authorized for

that program by this title; or

(2) which has not been presented to, or requested of,

Congress.

(b) REPORT.—(1) The report referred to in subsection (a) is

a report containing a full and complete statement of the action

proposed to be taken and the facts and circumstances relied upon

in support of such proposed action.

(2) In the computation of the 30-day period under subsection

(a), there shall be excluded any day on which either House of

Congress is not in session because of an adjournment of more

than 3 days to a day certain.

(c) LIMITATIONS.—(1) In no event may the total amount of

funds obligated pursuant to this title exceed the total amount

authorized to be appropriated by this title.
110 STAT. 2826 PUBLIC LAW 104–201—SEPT. 23, 1996

(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.

(c) REPORT ON PERMANENT AUTHORIZATION OF APPROPRIATIONS

FOR GENERAL PLANT PROJECTS.—(1) Not later than February 1,

1997, the Secretary of Energy shall submit to the congressional

defense committees a report on the desirability of a permanent

authorization of appropriations for the defense general plant

projects and civilian general plant projects of the Department of

Energy.

(2) If the Secretary determines for purposes of the report under

paragraph (1) that a permanent authorization of appropriations

is desirable, the report shall include—

(A) recommendations for legislation to provide for a permanent authorization of appropriations, including a formula for

adjusting for inflation the amount authorized to be appropriated

for the projects to be covered by such authorization of appropriations; and

(B) a description of the actions to be undertaken by the

Secretary to control costs with respect to such projects, including any actions that may depend on the size, nature, or scope

of the project concerned.

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.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2827

(b) EXCEPTION.—Subsection (a) shall not apply to any construction project which has a current estimated cost of less than

$5,000,000.

SEC. 3124. FUND TRANSFER AUTHORITY.

(a) TRANSFER TO OTHER FEDERAL AGENCIES.—The Secretary

of Energy may transfer funds authorized to be appropriated to

the Department of Energy pursuant to this title to other Federal

agencies for the performance of work for which the funds were

authorized. Funds so transferred may be merged with and be available for the same purposes and for the same 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. The Secretary shall submit to Congress

a report on each conceptual design completed under this paragraph.

(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

Reports.
110 STAT. 2828 PUBLIC LAW 104–201—SEPT. 23, 1996

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.

(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 appropriations 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. STOCKPILE STEWARDSHIP PROGRAM.

(a) PURPOSE.—The purpose of this section is to provide for

the enhanced implementation of the Department of Energy stockpile

stewardship and management program, in order to provide greater

confidence in the safety and continuing reliability of the nuclear

weapons stockpile.

(b) FUNDING.—Of the funds authorized to be appropriated to

the Department of Energy pursuant to section 3101, $85,000,000

shall be available to enhance the Department’s stockpile stewardship and management program for activities determined appropriate by the Secretary of Energy, including the following:

(1) Enhanced surveillance of the nuclear weapons stockpile.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2829

(2) Dual revalidation of the warheads in the nuclear

weapons stockpile.

(3) Stockpile life extension programs.

(4) Production capability assurance programs for critical

non-nuclear components.

(5) Accelerating capability to produce prototype war

reserve-quality plutonium pits.

(6) Conducting subcritical tests.

(c) REPORT.—Not later than 60 days after the date of the

enactment of this Act, the Secretary of Energy shall submit to

the congressional defense committees a report on the obligations

the Secretary has incurred, and plans to incur, during fiscal year

1997 for the funds made available by subsection (b).

SEC. 3132. MANUFACTURING INFRASTRUCTURE FOR NUCLEAR

WEAPONS STOCKPILE.

(a) GENERAL PROGRAM REQUIREMENTS.—Subsection (a) of section 3137 of the National Defense Authorization Act for Fiscal

Year 1996 (Public Law 104–106; 110 Stat. 620; 42 U.S.C. 2121

note) is amended—

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

(2) by redesignating paragraphs (1) through (5) as subparagraphs (A) through (E), respectively; and

(3) by adding at the end the following:

‘‘(2) The purpose of the program carried out under paragraph

(1) shall also be to develop manufacturing capabilities and capacities

necessary to meet the requirements specified in the annual Nuclear

Weapons Stockpile Review.’’.

(b) REQUIRED CAPABILITIES.—Subsection (b)(3) of such section

is amended to read as follows:

‘‘(3) The capabilities of the Savannah River Site relating

to tritium recycling and fissile materials components processing

and fabrication.’’.

(c) PLAN AND REPORT.—Not later than March 1, 1997, the

Secretary of Energy shall submit to Congress a report containing

a plan for carrying out the program established under section

3137(a) of the National Defense Authorization Act for Fiscal Year

1996, as amended by this section. The report shall set forth the

obligations that the Secretary has incurred, and proposes to incur,

during fiscal year 1997 in carrying out the program.

(d) FUNDING.—Of the funds authorized to be appropriated

pursuant to section 3101, $90,000,000 shall be available for carrying

out the program established under section 3137(a) of the National

Defense Authorization Act for Fiscal Year 1996, as so amended.

SEC. 3133. TRITIUM PRODUCTION.

(a) ACCELERATION OF TRITIUM PRODUCTION.—(1) The Secretary

of Energy shall, during fiscal year 1997, make a final decision

on the technologies to be utilized, and the accelerated schedule

to be adopted, for tritium production in order to meet the requirements of the Nuclear Weapons Stockpile Memorandum relating

to tritium production, including the new tritium production date

of 2005 specified in the Nuclear Weapons Stockpile Memorandum.

(2) In making the final decision, the Secretary shall take into

account the following:

(A) The requirements for tritium production specified in

the Nuclear Weapons Stockpile Memorandum, including, in
110 STAT. 2830 PUBLIC LAW 104–201—SEPT. 23, 1996

particular, the requirements for the ‘‘upload hedge’’ component

of the nuclear weapons stockpile.

(B) The ongoing activities of the Department of Energy

relating to the evaluation and demonstration of technologies

under the accelerator reactor program and the commercial light

water reactor program.

(b) REPORT.—(1) Not later than April 15, 1997, the Secretary

shall submit to Congress a report that sets forth the final decision

of the Secretary under subsection (a)(1). The report shall set forth

in detail—

(A) the technologies decided on under that subsection; and

(B) the accelerated schedule for the production of tritium

decided on under that subsection.

(2) If the Secretary determines that it is not possible to make

the final decision by the date specified in paragraph (1), the Secretary shall submit to Congress on that date a report that explains

in detail why the final decision cannot be made by that date.

(c) NEW TRITIUM PRODUCTION FACILITY.—The Secretary shall

commence planning and design activities and infrastructure development for a new tritium production facility.

(d) IN-REACTOR TESTS.—The Secretary may perform in-reactor

tests of tritium target rods as part of the activities carried out

under the commercial light water reactor program.

(e) FUNDING.—Of the funds authorized to be appropriated to

the Department of Energy pursuant to section 3101(b)(1),

$160,000,000 shall be available for activities related to tritium

production.

SEC. 3134. MODERNIZATION AND CONSOLIDATION OF TRITIUM

RECYCLING FACILITIES.

(a) IN GENERAL.—The Secretary of Energy shall carry out

activities at the Savannah River Site, South Carolina, to—

(1) modernize and consolidate the facilities for recycling

tritium from weapons; and

(2) provide a modern tritium extraction facility so as to

ensure that such facilities have a capacity to recycle tritium

from weapons that is adequate to meet the requirements for

tritium for weapons specified in the Nuclear Weapons Stockpile

Memorandum.

(b) FUNDING.—Of the funds authorized to be appropriated to

the Department of Energy pursuant to section 3101, not more

than $9,000,000 shall be available for activities under subsection

(a).

SEC. 3135. PRODUCTION OF HIGH EXPLOSIVES.

No funds appropriated or otherwise made available to the

Department of Energy for fiscal year 1997 or any prior fiscal year

may be used to move, or prepare to move, the manufacture and

fabrication of high explosives and energetic materials for use as

components in nuclear weapons systems from the Pantex Plant,

Amarillo, Texas, to any other site or facility.

SEC. 3136. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH

AND DEVELOPMENT PURPOSES.

(a) LIMITATION.—No funds authorized to be appropriated or

otherwise made available to the Department of Energy for fiscal

year 1997 under section 3101 may be obligated or expended for

activities under the Department of Energy Laboratory Directed

South Carolina.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2831

Research and Development Program, or under any Department

of Energy technology transfer program or cooperative research and

development agreement, unless such activities support the national

security mission of the Department of Energy.

(b) ANNUAL REPORT.—(1) The Secretary of Energy shall

annually submit to the congressional defense committees a report

on the funds expended during the preceding fiscal year on activities

under the Department of Energy Laboratory Directed Research

and Development Program. The purpose of the report is to permit

an assessment of the extent to which such activities support the

national security mission of the Department of Energy.

(2) Each report shall be prepared by the officials responsible

for Federal oversight of the funds expended on activities under

the program.

(3) Each report shall set forth the criteria utilized by the

officials preparing the report in determining whether or not the

activities reviewed by such officials support the national security

mission of the Department.

SEC. 3137. PROHIBITION ON FUNDING NUCLEAR WEAPONS

ACTIVITIES WITH PEOPLE’S REPUBLIC OF CHINA.

(a) FUNDING PROHIBITION.—No funds authorized to be appropriated or otherwise available to the Department of Energy for

fiscal year 1997 may be obligated or expended for any activity

associated with the conduct of cooperative programs relating to

nuclear weapons or nuclear weapons technology, including stockpile

stewardship, safety, and use control, with the People’s Republic

of China.

(b) REPORT.—(1) The Secretary of Energy shall prepare, in

consultation with the Secretary of Defense, a report containing

a description of all discussions and activities between the United

States and the People’s Republic of China regarding nuclear weapons matters that have occurred before the date of the enactment

of this Act and that are planned to occur after such date. For

each such discussion or activity, the report shall include—

(A) the authority under which the discussion or activity

took or will take place;

(B) the subject of the discussion or activity;

(C) participants or likely participants;

(D) the source and amount of funds used or to be used

to pay for the discussion or activity; and

(E) a description of the actions taken or to be taken to

ensure that no classified information or unclassified controlled

information was or will be revealed, and a determination of

whether classified information or unclassified controlled

information was revealed in previous discussions.

(2) The report shall be submitted to the Committee on Armed

Services of the Senate and the Committee on National Security

of the House of Representatives not later than January 15, 1997.

SEC. 3138. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP

PROGRAMS.

(a) FUNDING PROHIBITION.—No funds authorized to be appropriated or otherwise available to the Department of Energy for

fiscal year 1997 may be obligated or expended to conduct any

activities associated with international cooperative stockpile

stewardship.

(b) EXCEPTION.—Subsection (a) does not apply—

42 USC 7257b.
110 STAT. 2832 PUBLIC LAW 104–201—SEPT. 23, 1996

(1) with respect to such activities conducted between the

United States and the United Kingdom and between the United

States and France; and

(2) to activities carried out under title XV of this Act

(relating to cooperative threat reduction with states of the

former Soviet Union).

SEC. 3139. TEMPORARY AUTHORITY RELATING TO TRANSFERS OF

DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

(a) TRANSFER AUTHORITY FOR DEFENSE ENVIRONMENTAL

MANAGEMENT FUNDS.—The Secretary of Energy shall provide the

manager of each field office of the Department of Energy with

the authority to transfer defense environmental management funds

from a program or project under the jurisdiction of the office to

another such program or project. Any such transfer may be made

only once in a fiscal year to or from a program or project, and

the amount transferred to or from a program or project may not

exceed $5,000,000 in a fiscal year.

(b) DETERMINATION.—A transfer may not be carried out by

a manager of a field office pursuant to the authority provided

under subsection (a) unless the manager determines that such

transfer is necessary to address a risk to health, safety, or the

environment or to assure the most efficient use of defense environmental management funds at that field office.

(c) EXEMPTION FROM REPROGRAMMING REQUIREMENTS.—The

requirements of section 3121 shall not apply to transfers of funds

pursuant to subsection (a).

(d) NOTIFICATION.—The Secretary of Energy, acting through

the Assistant Secretary of Energy for Environmental Management,

shall notify Congress of any transfer of funds pursuant to subsection

(a) not later than 30 days after such a transfer occurs.

(e) LIMITATION.—Funds transferred pursuant to subsection (a)

may not be used for an item for which Congress has specifically

denied funds or for a new program or project that has not been

authorized by Congress.

(f) DEFINITIONS.—In this section:

(1) The term ‘‘program or project’’ means, with respect

to a field office of the Department of Energy, any of the

following:

(A) A project listed in subsection (b) or (c) of section

3102 being carried out by the office.

(B) A program referred to in subsection (a), (b), (c),

(e), (g), or (h) of section 3102 being carried out by the

office.

(C) A project or program not described in subparagraph

(A) or (B) that is for environmental restoration or waste

management activities necessary for national security programs of the Department of Energy, that is being carried

out by the office, and for which defense environmental

management funds have been authorized and appropriated

before the date of the enactment of this Act.

(2) The term ‘‘defense environmental management funds’’

means funds appropriated to the Department of Energy pursuant to an authorization for carrying out environmental restoration and waste management activities necessary for national

security programs.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2833

(g) DURATION OF AUTHORITY.—The authority provided under

subsection (a) to a manager of a field office shall be in effect

from the date of the enactment of this Act to September 30, 1997.

(h) REPORT.—Not later than September 1, 1997, the Secretary

of Energy shall submit to the congressional defense committees

a report on the effectiveness of the authority provided under subsection (a) in meeting an objective specified in subsection (b). The

report shall include recommendations on whether the duration of

the authority, as provided in subsection (g), should be extended.

SEC. 3140. MANAGEMENT STRUCTURE FOR NUCLEAR WEAPONS

PRODUCTION FACILITIES AND NUCLEAR WEAPONS

LABORATORIES.

(a) LIMITATION ON DELEGATION OF AUTHORITY.—(1) The Secretary of Energy, in carrying out national security programs, may

delegate specific management and planning authority over matters

relating to site operation of the facilities and laboratories covered

by this section only to the Assistant Secretary of Energy for Defense

Programs. Such Assistant Secretary may redelegate such authority

only to managers of area offices of the Department of Energy

located at such facilities and laboratories.

(2) Nothing in this section may be construed as affecting the

delegation by the Secretary of Energy of authority relating to reporting, management, and oversight of matters relating to the Department of Energy generally, or safety, environment, and health at

such facilities and laboratories.

(b) REQUIREMENT TO CONSULT WITH AREA OFFICES.—The

Assistant Secretary of Energy for Defense Programs, in exercising

any delegated authority to oversee management of matters relating

to site operation of a facility or laboratory, shall exercise such

authority only after direct consultation with the manager of the

area office of the Department of Energy located at the facility

or laboratory.

(c) REQUIREMENT FOR DIRECT COMMUNICATION FROM AREA

OFFICES.—The Secretary of Energy, acting through the Assistant

Secretary of Energy for Defense Programs, shall require the head

of each area office of the Department of Energy located at each

facility and laboratory covered by this section to report on matters

relating to site operation other than those matters set forth in

subsection (a)(2) directly to the Assistant Secretary of Energy for

Defense Programs, without obtaining the approval or concurrence

of any other official within the Department of Energy.

(d) DEFENSE PROGRAMS REORGANIZATION PLAN AND REPORT.—

(1) The Secretary of Energy shall develop a plan to reorganize

the field activities and management of the national security functions of the Department of Energy.

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

of this Act, the Secretary shall submit to Congress a report on

the plan developed under paragraph (1). The report shall specifically

identify all significant functions performed by the operations offices

relating to any of the facilities and laboratories covered by this

section and which of those functions could be performed—

(A) by the area offices of the Department of Energy located

at the facilities and laboratories covered by this section; or

(B) by the Assistant Secretary of Energy for Defense

Programs.

Reports.

42 USC 7252

note.
110 STAT. 2834 PUBLIC LAW 104–201—SEPT. 23, 1996

(3) The report also shall address and make recommendations

with respect to other internal streamlining and reorganization

initiatives that the Department could pursue with respect to military or national security programs.

(e) DEFENSE PROGRAMS MANAGEMENT COUNCIL.—The Secretary

of Energy shall establish a council to be known as the ‘‘Defense

Programs Management Council’’. The Council shall advise the Secretary on policy matters, operational concerns, strategic planning,

and development of priorities relating to the national security functions of the Department of Energy. The Council shall be composed

of the directors of the facilities and laboratories covered by this

section and shall report directly to the Assistant Secretary of Energy

for Defense Programs.

(f) COVERED SITE OPERATIONS.—For purposes of this section,

matters relating to site operation of a facility or laboratory

include matters relating to personnel, budget, and procurement

in national security programs.

(g) COVERED FACILITIES AND LABORATORIES.—This section

applies to the following facilities and laboratories of the Department

of Energy:

(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.

(5) Los Alamos National Laboratory, Los Alamos, New

Mexico.

(6) Sandia National Laboratories, Albuquerque, New

Mexico.

(7) Lawrence Livermore National Laboratory, Livermore,

California.

(8) The Nevada Test Site, Nevada.

SEC. 3141. ACCELERATED SCHEDULE FOR ISOLATING HIGH-LEVEL

NUCLEAR WASTE AT THE DEFENSE WASTE PROCESSING

FACILITY, SAVANNAH RIVER SITE.

The Secretary of Energy shall accelerate the schedule for the

isolation of high-level nuclear waste in glass canisters at the

Defense Waste Processing Facility at the Savannah River Site,

South Carolina, if the Secretary determines that the acceleration

of such schedule—

(1) will achieve long-term cost savings to the Federal

Government; and

(2) could accelerate the removal and isolation of high-level

nuclear waste from long-term storage tanks at the site.

SEC. 3142. PROCESSING AND TREATMENT OF HIGH-LEVEL NUCLEAR

WASTE AND SPENT NUCLEAR FUEL RODS.

(a) IN GENERAL.—(1) In order to provide for an effective

response to requirements for managing the spent nuclear fuel

described in paragraph (2), there shall be available to the Secretary

of Energy, from amounts authorized to be appropriated pursuant

to section 3102(c), the following amounts for the purposes stated:

(A) Not more than $43,000,000 for the development and

implementation of a program to accelerate the receipt, processing (including the H-canyon restart operations), reprocessing,

separation, reduction, deactivation, stabilization, isolation, and

interim storage of high-level nuclear waste associated with

South Carolina.

Applicability.

Establishment.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2835

Department of Energy aluminum clad spent fuel rods, foreign

spent fuel rods, and other nuclear materials.

(B) Not more than $15,000,000 for the development and

implementation of a program for the receipt, treatment,

preparation, conditioning, interim storage, and final disposition

of high-level nuclear waste and spent nuclear fuel (including

naval spent nuclear fuel), non-aluminum clad fuel rods, and

foreign fuel rods.

(2) The spent nuclear fuel referred to in paragraph (1) is the

following:

(A) Spent nuclear fuel that is sent to Department of Energy

consolidation sites pursuant to the Department of Energy Programmatic Spent Nuclear Fuel Management and Idaho

National Engineering Laboratory Environmental Restoration

and Waste Management Programs Final Environmental Impact

Statement, dated April 1995.

(B) Spent nuclear fuel described in the Interim Management of Nuclear Materials Environmental Impact Statement,

dated October 1995.

(C) Other spent nuclear fuel located at the Savannah River

Site as of the date of the enactment of this Act.

(3) The amounts made available under paragraph (1) are in

addition to other amounts authorized to be appropriated by section

3102(c) for the purposes stated in subparagraphs (A) and (B) of

that paragraph.

(b) USE OF FUNDS FOR SETTLEMENT AGREEMENT.—Funds made

available pursuant to subsection (a)(1)(B) 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.

(c) AMENDMENTS TO IMPLEMENTATION PLAN FOR MANAGING

SPENT NUCLEAR FUEL AT CERTAIN SITES.—Section 3142(b) of the

National Defense Authorization Act for Fiscal Year 1996 (Public

Law 104–106; 110 Stat. 622) is amended—

(1) by striking out ‘‘April 30, 1996’’ and inserting in lieu

thereof ‘‘September 30, 1996’’;

(2) by striking out ‘‘and’’ at the end of paragraph (3);

(3) by striking out the period at the end of paragraph

(4) and inserting in lieu thereof ‘‘; and’’; and

(4) by adding at the end the following new paragraph:

‘‘(5) an assessment of the progress made in implementing

the programs.’’.

(d) NEAR-TERM PLAN FOR PROCESSING SPENT FUEL RODS AT

SAVANNAH RIVER SITE.—(1) Not later than March 15, 1997, the

Secretary of Energy shall submit to Congress a plan for a nearterm program to process, treat, package, and dispose of spent

nuclear fuel rods described in paragraph (2) at the Savannah River

Site. The plan shall include cost projections and resource requirements for the program and identify program milestones for the

program.

South Carolina.

Idaho.
110 STAT. 2836 PUBLIC LAW 104–201—SEPT. 23, 1996

(2) The spent nuclear fuel rods to be included in the program

referred to in paragraph (1) are the following:

(A) Spent nuclear fuel rods produced at the Savannah

River Site.

(B) Spent nuclear fuel rods being sent to the site from

other Department of Energy facilities for processing, interim

storage, and other treatment.

(C) Foreign spent nuclear fuel rods being sent to the site

for processing, interim storage, and other treatment.

(e) MULTI-YEAR PLAN FOR CLEAN-UP AT SAVANNAH RIVER

SITE.—The Secretary shall develop and implement a multi-year

plan for the clean-up of nuclear waste at the Savannah River

Site that results, or has resulted, from the following:

(1) Nuclear weapons activities carried out at the site.

(2) The processing, treating, packaging, and disposal of

Department of Energy domestic and foreign spent nuclear fuel

rods at the site.

(f) REQUIREMENT FOR CONTINUING OPERATIONS AT SAVANNAH

RIVER SITE.—The Secretary shall continue operations and maintain

a high state of readiness at the H-canyon facility and the F-canyon

facility at the Savannah River Site, and shall provide technical

staff necessary to operate and so maintain such facilities, pending

the development and implementation of the plan referred to in

subsection (e).

SEC. 3143. PROJECTS TO ACCELERATE CLOSURE ACTIVITIES AT

DEFENSE NUCLEAR FACILITIES.

(a) IN GENERAL.—The Secretary of Energy shall select and

carry out closure-acceleration projects in accordance with this

section.

(b) PURPOSE.—The purpose of a closure-acceleration project

shall be, within a fixed period of time, to clean up or decommission

a Department of Energy defense nuclear facility or portion thereof

and to make the facility safe by stabilizing, consolidating, treating,

or removing nuclear materials from the facility in order to reduce

significantly or eliminate future costs at the facility.

(c) ELIGIBLE PROJECTS.—(1) The Secretary of Energy may establish a closure-acceleration project as eligible for selection under

subsection (e) by—

(A) developing a plan for the project that meets the criteria

under paragraph (2); and

(B) determining that the project will achieve significant

long-term cost savings to the Federal Government from the

baseline cost estimate made by the Department of Energy

for the project.

(2) A plan for a closure-acceleration project under this

section shall—

(A) define a clear, delineated scope of work for completion

of the project;

(B) demonstrate that, with respect to the site of the proposed project, there is a regulatory agreement between the

Department of Energy and other appropriate authorities for

the implementation of environmental remediation requirements

that would allow for successful completion of the project;

(C) demonstrate, to the maximum extent possible, the support of State and local elected officials and the public for the

project;

42 USC 7274n.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2837

(D) contain performance-based provisions to be included

in the contract for the project, including—

(i) clearly stated and results-oriented performance

criteria and measures;

(ii) appropriate incentives for the contractor to meet

and exceed the performance criteria effectively and

efficiently;

(iii) appropriate criteria and incentives for the contractor to seek and engage subcontractors who may more

effectively and efficiently perform either unique and technologically challenging tasks or routine and interchangeable

services;

(iv) specific incentives for cost savings;

(v) financial accountability; and

(vi) when appropriate, reduction of fee for failure to

meet minimum performance criteria and standards;

(E) demonstrate that the project will use new and innovative cleanup and waste management technology with potential

for application to other locations and facilities without requiring

the development of new technologies; and

(F) demonstrate that the project can be completed within

10 years from the date of its selection.

(d) PROGRAM ADMINISTRATION.—The Secretary of Energy, acting through the Assistant Secretary for Environmental Management, shall implement a program to carry out the provisions of

this section.

(e) SELECTION OF PROJECTS.—(1) The Secretary of Energy shall

select closure-acceleration projects to be carried out under this

section from among those projects established as eligible under

subsection (c) that will result in the most significant long-term

cost savings to the Government and the most significant reduction

of imminent risk.

(2) For each project selected, the Secretary shall submit to

Congress a report setting forth the reasons why the project was

selected, based on the criteria under subsection (c)(2) and paragraph

(1) of this subsection.

(f) MULTIYEAR CONTRACTS.—Notwithstanding section 304B(d)

of the Federal Property and Administrative Services Act of 1949

(41 U.S.C. 254c(d)), the Secretary of Energy may enter into multiyear contracts to carry out projects selected under this section

for up to 10 program years.

(g) FUNDING.—(1) In the budget submitted to Congress under

section 1105(a) of title 31, United States Code, each year, the

President shall set forth funds for carrying out closure-acceleration

projects under this section as a separate item in the environmental

restoration and waste management account of the Department of

Energy budget.

(2) Funds appropriated for purposes of carrying out projects

under this section shall remain available until expended.

(3) If a closure-acceleration project is being carried out at

a defense nuclear facility with funds appropriated for such projects,

the Secretary of Energy may not reduce the funds otherwise allocated to that defense nuclear facility for environmental restoration

and waste management by reason of the funds being used for

the project at that facility.

(4) Funds appropriated for purposes of carrying out projects

under this section may not be used for an item for which Congress

President.

Reports.
110 STAT. 2838 PUBLIC LAW 104–201—SEPT. 23, 1996

has specifically denied funds or for a new program or project that

has not been authorized by Congress.

(h) ANNUAL REPORT.—The Secretary of Energy shall submit

each year to Congress a report on the status of each closureacceleration project being carried out under this section. The report

shall include, for each such project, the following:

(1) A description of the funding already provided for the

project.

(2) A description of the extent of the cleanup, decommissioning, stabilization, consolidation, treatment, or removal

activities completed.

(3) A comparison of the actual results of the project to

the original proposal and the actual cost of the project to

the originally proposed cost.

(4) A description of the funding needed in future fiscal

years for completion of the project.

(i) DURATION OF PROGRAM.—No closure-acceleration project

selected under this section may be carried out after the expiration

of the 15-year period beginning on the date of the enactment of

this Act.

(j) SAVINGS PROVISION.—Nothing in this section may be construed to affect statutory requirements for an 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, nor shall anything in this section be construed to

preempt or impair any local land use planning or zoning authority

or State authority.

SEC. 3144. PAYMENT OF COSTS OF OPERATION AND MAINTENANCE

OF INFRASTRUCTURE AT NEVADA TEST SITE.

Notwithstanding any other provision of law and effective as

of September 30, 1996, the costs associated with operating and

maintaining the infrastructure at the Nevada Test Site, Nevada,

with respect to any activities initiated at the site after that date

by the Department of Defense pursuant to a work-for-others agreement may be paid for from funds authorized to be appropriated

to the Department of Energy for activities at the Nevada Test

Site.

Subtitle D—Other Matters

SEC. 3151. REPORT ON PLUTONIUM PIT PRODUCTION AND REMANUFACTURING PLANS.

(a) REPORT REQUIREMENT.—The Secretary of Energy shall submit to the congressional defense committees a report on plans

for achieving the capability to produce and remanufacture plutonium pits. The report shall include a description of the baseline

plan of the Department of Energy for achieving such capability,

including the following:

(1) The funding necessary, by fiscal year, to achieve the

capability.

(2) The schedule necessary to achieve the capability, including important technical and programmatic milestones.

Effective date.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2839

(3) Siting, capacity for expansion, and other issues included

in the baseline plan.

(b) DEADLINE.—The report required by subsection (a) shall be

submitted not later than 60 days after the date of the enactment

of this Act.

SEC. 3152. AMENDMENTS RELATING TO BASELINE ENVIRONMENTAL

MANAGEMENT REPORTS.

Section 3153 of the National Defense Authorization Act for

Fiscal Year 1994 (42 U.S.C. 7274k) is amended—

(1) in subsection (b)—

(A) by striking out the first word in the heading and

inserting in lieu thereof ‘‘BIENNIAL’’; and

(B) in paragraph (2)(B), by inserting before ‘‘year after

1995’’ the following: ‘‘odd-numbered’’; and

(2) in subsection (d)—

(A) by striking out the first word in the heading and

inserting in lieu thereof ‘‘BIENNIAL’’;

(B) in paragraph (1)(B), by striking out ‘‘in each year

thereafter’’ and inserting in lieu thereof ‘‘in each odd-numbered year thereafter’’; and

(C) in paragraph (2)(A)—

(i) in the matter preceding clause (i), by striking

out ‘‘fiscal year immediately’’ and inserting in lieu

thereof ‘‘two fiscal years immediately’’; and

(ii) in clause (ii), by striking out ‘‘prior fiscal year’’

and inserting in lieu thereof ‘‘prior fiscal years’’.

SEC. 3153. REQUIREMENT TO DEVELOP FUTURE USE PLANS FOR

ENVIRONMENTAL MANAGEMENT PROGRAM.

(a) AUTHORITY TO DEVELOP FUTURE USE PLANS.—The Secretary of Energy may develop future use plans for any defense

nuclear facility at which environmental restoration and waste

management activities are occurring.

(b) REQUIREMENT TO DEVELOP FUTURE USE PLANS.—The Secretary shall develop a future use plan for each of the following

defense nuclear facilities:

(1) Hanford Site, Richland, Washington.

(2) Rocky Flats Plant, Golden, Colorado.

(3) Savannah River Site, Aiken, South Carolina.

(4) Idaho National Engineering Laboratory, Idaho.

(c) CITIZEN ADVISORY BOARD.—(1) At each defense nuclear facility for which the Secretary of Energy intends or is required to

develop a future use plan under this section and for which no

citizen advisory board has been established, the Secretary shall

establish a citizen advisory board.

(2) The Secretary may authorize the manager of a defense

nuclear facility for which a future use plan is developed under

this section (or, if there is no such manager, an appropriate official

of the Department of Energy designated by the Secretary) to pay

routine administrative expenses of a citizen advisory board established for that facility. Such payments shall be made from funds

available to the Secretary for program direction in carrying out

environmental restoration and waste management activities necessary for national security programs.

(d) REQUIREMENT TO CONSULT WITH CITIZEN ADVISORY

BOARD.—In developing a future use plan under this section with

respect to a defense nuclear facility, the Secretary of Energy shall

Establishment.

42 USC 7274k

note.
110 STAT. 2840 PUBLIC LAW 104–201—SEPT. 23, 1996

consult with a citizen advisory board established pursuant to subsection (c) or a similar advisory board already in existence as

of the date of the enactment of this Act for such facility, affected

local governments (including any local future use redevelopment

authorities), and other appropriate State agencies.

(e) 50-YEAR PLANNING PERIOD.—A future use plan developed

under this section shall cover a period of at least 50 years.

(f) DEADLINES.—For each facility listed in subsection (b), the

Secretary of Energy shall develop a draft future use plan by October

1, 1997, and a final future use plan by March 15, 1998.

(g) REPORT.—Not later than 60 days after completing development of a final plan for a site listed in subsection (b), the Secretary

of Energy shall submit to Congress a report on the plan. The

report shall describe the plan and contain such findings and recommendations with respect to the site as the Secretary considers

appropriate.

(h) SAVINGS PROVISIONS.—(1) Nothing in this section, or in

a future use plan developed under this section with respect to

a defense nuclear facility, shall be construed as requiring any

modification to a future use plan with respect to a defense nuclear

facility that was developed before the date of the enactment of

this Act.

(2) Nothing in this section may be construed to affect statutory

requirements for an 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, nor shall

anything in this section be construed to preempt or impair any

local land use planning or zoning authority or State authority.

SEC. 3154. REPORT ON DEPARTMENT OF ENERGY LIABILITY AT

DEPARTMENT SUPERFUND SITES.

(a) STUDY.—The Secretary of Energy shall, using funds authorized to be appropriated to the Department of Energy by section

3102, carry out a study to determine the extent and valuation

of the injury to, destruction of, or loss of natural resources under

section 107(a)(4)(C) of the Comprehensive Environmental Response,

Compensation, and Liability Act of 1980 (42 U.S.C. 9607(a)(4)(C))

at each site controlled or operated by the Department that is

or is anticipated to become subject to the provisions of that Act.

(b) CONDUCT OF STUDY.—(1) The Secretary shall carry out

the study using personnel of the Department or by contract with

an appropriate private entity.

(2) In determining the extent and valuation of the injury to,

destruction of, or loss of natural resources for purposes of the

study, the Secretary shall—

(A) treat the Department as a private person liable for

response, removal, and remediation costs and damages under

section 107(a)(4) of that Act (42 U.S.C. 9607(a)(4)) and subject

to an action for damages by public trustees of natural resources

under section 107(f) of that Act (42 U.S.C. 9607(f)) or by any

other person pursuant to section 107(e) or 113(f) of that Act

(42 U.S.C. 9607(e) and 9613(f)); and

(B) determine the value of natural resource damages associated with each site in accordance with all regulations promulgated under section 301(c) of that Act (42 U.S.C. 9651(c)).
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2841

(c) REPORT.—Not later than 90 days after the date of the

enactment of this Act, the Secretary shall submit a report on

the study carried out under subsection (a) to the following

committees:

(1) The Committees on Environment and Public Works,

Armed Services, and Energy and Natural Resources of the

Senate.

(2) The Committees on Commerce, National Security,

Transportation and Infrastructure, and Resources of the House

of Representatives.

SEC. 3155. REQUIREMENT FOR ANNUAL FIVE-YEAR BUDGET FOR THE

NATIONAL SECURITY PROGRAMS OF THE DEPARTMENT

OF ENERGY.

(a) REQUIREMENT.—The Secretary of Energy shall prepare each

year a budget for the national security programs of the Department

of Energy for the five-year period beginning in the year the budget

is prepared. Each budget shall contain the estimated expenditures

and proposed appropriations necessary to support the programs,

projects, and activities of the national security programs during

the five-year period covered by the budget and shall be at a level

of detail comparable to that contained in the budget submitted

by the President to Congress under section 1105 of title 31, United

States Code.

(b) SUBMITTAL.—The Secretary shall submit each year to the

congressional defense committees the budget required under subsection (a) in that year at the same time as the President submits

to Congress the budget for the coming fiscal year pursuant to

such section 1105.

SEC. 3156. REQUIREMENTS FOR DEPARTMENT OF ENERGY WEAPONS

ACTIVITIES BUDGETS FOR FISCAL YEARS AFTER FISCAL

YEAR 1997.

(a) IN GENERAL.—The weapons activities budget of the Department of Energy for any fiscal year after fiscal year 1997 shall—

(1) set forth with respect to each of the activities under

the budget (including stockpile stewardship, stockpile management, and program direction) the funding requested to carry

out each project or activity that is necessary to meet the

requirements of the Nuclear Weapons Stockpile Memorandum;

and

(2) identify specific infrastructure requirements arising

from the Nuclear Posture Review, the Nuclear Weapons Stockpile Memorandum, 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 any fiscal year after fiscal year 1997 that is

submitted by the President pursuant to section 1105 of title 31,

United States Code, the following:

(1) A long-term program plan, and a near-term program

plan, for the certification and stewardship of the nuclear

weapons stockpile.

(2) An assessment of the effects of the plans referred to

in paragraph (1) on each nuclear weapons laboratory and each

nuclear weapons production plant.

(c) DEFINITIONS.—In this section:

42 USC 7271c.

42 USC 7271b.
110 STAT. 2842 PUBLIC LAW 104–201—SEPT. 23, 1996

(1) 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 Congress

dated February 19, 1995, or in subsequent such reports.

(2) The term ‘‘nuclear weapons laboratory’’ means the

following:

(A) Lawrence Livermore National Laboratory,

California.

(B) Los Alamos National Laboratory, New Mexico.

(C) Sandia National Laboratories.

(3) The term ‘‘nuclear weapons production plant’’ means

the following:

(A) The Pantex Plant, Texas.

(B) The Savannah River Site, South Carolina.

(C) The Kansas City Plant, Missouri.

(D) The Y–12 Plant, Oak Ridge, Tennessee.

SEC. 3157. REPEAL OF REQUIREMENT RELATING TO ACCOUNTING

PROCEDURES FOR DEPARTMENT OF ENERGY FUNDS.

Section 3151 of the National Defense Authorization Act for

Fiscal Year 1995 (Public Law 103–337; 108 Stat. 3089) is repealed.

SEC. 3158. UPDATE OF REPORT ON NUCLEAR TEST READINESS

POSTURES.

Not later than June 1, 1997, the Secretary of Energy shall

submit to Congress a report which updates the report submitted

by the Secretary under section 3152 of the National Defense

Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110

Stat. 623). The updated report shall include the matters specified

under such section, current as of the date of the updated report.

SEC. 3159. REPORTS ON CRITICAL DIFFICULTIES AT NUCLEAR

WEAPONS LABORATORIES AND NUCLEAR WEAPONS

PRODUCTION PLANTS.

(a) REPORTS BY HEADS OF LABORATORIES AND PLANTS.—In the

event of a difficulty at a nuclear weapons laboratory or a nuclear

weapons production plant that has a significant bearing on confidence in the safety or reliability of a nuclear weapon or nuclear

weapon type, the head of the laboratory or plant, as the case

may be, shall submit to the Assistant Secretary of Energy for

Defense Programs a report on the difficulty. The head of the laboratory or plant shall submit the report as soon as practicable after

discovery of the difficulty.

(b) TRANSMITTAL BY ASSISTANT SECRETARY.—As soon as practicable after receipt of a report under subsection (a), the Assistant

Secretary shall transmit the report (together with the comments

of the Assistant Secretary) to the congressional defense committees

and to the Secretary of Energy and the Secretary of Defense.

(c) REPORTS BY NUCLEAR WEAPONS COUNCIL.—Section 179 of

title 10, United States Code, is amended—

(1) by redesignating subsection (e) as subsection (f); and

(2) by inserting after subsection (d) the following new subsection (e):

‘‘(e) In addition to the responsibilities set forth in subsection

(d), the Council shall also submit to Congress a report on any

analysis conducted by the Council with respect to difficulties at

nuclear weapons laboratories or nuclear weapons production plants

42 USC 7274o.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2843

that have significant bearing on confidence in the safety or reliability of nuclear weapons or nuclear weapon types.’’.

(d) DEFINITIONS.—In this section:

(1) The term ‘‘nuclear weapons laboratory’’ means the

following:

(A) Lawrence Livermore National Laboratory,

California.

(B) Los Alamos National Laboratory, New Mexico.

(C) Sandia National Laboratories.

(2) The term ‘‘nuclear weapons production plant’’ means

the following:

(A) The Pantex Plant, Texas.

(B) The Savannah River Site, South Carolina.

(C) The Kansas City Plant, Missouri.

(D) The Y–12 Plant, Oak Ridge, Tennessee.

SEC. 3160. EXTENSION OF APPLICABILITY OF NOTICE-AND-WAIT

REQUIREMENT REGARDING PROPOSED COOPERATION

AGREEMENTS.

Section 3155(b) of the National Defense Authorization Act for

Fiscal Year 1995 (42 U.S.C. 2153 note) is amended by striking

out ‘‘October 1, 1996’’ and inserting in lieu thereof ‘‘October 1,

1997’’.

SEC. 3161. SENSE OF SENATE RELATING TO REDESIGNATION OF

DEFENSE ENVIRONMENTAL RESTORATION AND WASTE

MANAGEMENT PROGRAM.

(a) SENSE OF SENATE.—It is the sense of the Senate that

the program of the Department of Energy known as the Defense

Environmental Restoration and Waste Management Program, and

also known as the Environmental Management Program, be redesignated as the Defense Nuclear Waste Management Program of the

Department of Energy.

(b) REPORT ON REDESIGNATION.—Not later than January 31,

1997, the Secretary of Energy shall submit to the congressional

defense committees a report on the costs and other difficulties,

if any, associated with the following:

(1) The redesignation of the program known as the Defense

Environmental Restoration and Waste Management Program,

and also known as the Environmental Management Program,

as the Defense Nuclear Waste Management Program of the

Department of Energy.

(2) The redesignation of the Defense Environmental

Restoration and Waste Management Account as the Defense

Nuclear Waste Management Account.

SEC. 3162. COMMISSION ON MAINTAINING UNITED STATES NUCLEAR

WEAPONS EXPERTISE.

(a) ESTABLISHMENT.—There is hereby established a commission

to be known as the ‘‘Commission on Maintaining United States

Nuclear Weapons Expertise’’ (in this section referred to as the

‘‘Commission’’).

(b) ORGANIZATIONAL MATTERS.—(1)(A) The Commission shall

be composed of eight members appointed from among individuals

in the public and private sectors who have significant experience

in matters relating to nuclear weapons, as follows:

(i) Two shall be appointed by the majority leader of the

Senate (in consultation with the minority leader of the Senate).

42 USC 2121

note.
110 STAT. 2844 PUBLIC LAW 104–201—SEPT. 23, 1996

(ii) One shall be appointed by the minority leader of the

Senate (in consultation with the majority leader of the Senate).

(iii) Two shall be appointed by the Speaker of the House

of Representatives (in consultation with the minority leader

of the House of Representatives).

(iv) One shall be appointed by the minority leader of the

House of Representatives (in consultation with the Speaker

of the House of Representatives).

(v) Two shall be appointed by the Secretary of Energy.

(B) Members shall be appointed for the life of the Commission.

Any vacancy in the Commission shall not affect its powers, but

shall be filled in the same manner as the original appointment.

(C) The chairman of the Commission shall be designated from

among the members of the Commission appointed under subparagraph (A) by the majority leader of the Senate, in consultation

with the Speaker of the House of Representatives, the minority

leader of the Senate, and the minority leader of the House of

Representatives.

(D) Members shall be appointed not later than 60 days after

the date of the enactment of this Act.

(2) The members of the Commission shall establish procedures

for the activities of the Commission, including procedures for calling

meetings, requirements for quorums, and the manner of taking

votes.

(c) DUTIES.—(1) The Commission shall develop a plan for

recruiting and retaining within the Department of Energy nuclear

weapons complex such scientific, engineering, and technical personnel as the Commission determines appropriate in order to permit

the Department to maintain over the long term a safe and reliable

nuclear weapons stockpile without engaging in underground testing.

(2) In developing the plan, the Commission shall—

(A) identify actions that the Secretary may undertake to

attract qualified scientific, engineering, and technical personnel

to the nuclear weapons complex of the Department; and

(B) review and recommend improvements to the on-going

efforts of the Department to attract such personnel to the

nuclear weapons complex.

(d) REPORT.—Not later than March 15, 1998, the Commission

shall submit to the Secretary and to Congress a report containing

the plan developed under subsection (c). The report may include

recommendations for legislation and administrative action.

(e) COMMISSION PERSONNEL MATTERS.—(1) Each member of

the Commission who is not an officer or employee of the Federal

Government shall be compensated at a rate equal to the daily

equivalent of the annual rate of basic pay prescribed for level

IV of the Executive Schedule under section 5315 of title 5, United

States Code, for each day (including travel time) during which

such member is engaged in the performance of the duties of the

Commission. All members of the Commission who are officers or

employees of the United States shall serve without compensation

in addition to that received for their services as officers or employees

of the United States.

(2) The members of the Commission shall be allowed travel

expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57

of title 5, United States Code, while away from their homes or

Procedures.

Deadline.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2845

regular places of business in the performance of services for the

Commission.

(3) The Commission may, without regard to the civil service

laws and regulations, appoint and terminate such personnel as

may be necessary to enable the Commission to perform its duties.

The Commission may fix the compensation of the personnel of

the Commission without regard to the provisions of chapter 51

and subchapter III of chapter 53 of title 5, United States Code,

relating to classification of positions and General Schedule pay

rates.

(4) Any Federal Government employee may be detailed to the

Commission without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege.

(f) TERMINATION.—The Commission shall terminate 30 days

after the date on which the Commission submits its report under

subsection (d).

(g) APPLICABILITY OF FACA.—The provisions of the Federal

Advisory Committee Act (5 U.S.C. App.) shall not apply to the

activities of the Commission.

(h) FUNDING.—Of the amounts authorized to be appropriated

pursuant to section 3101, not more than $1,000,000 shall be available for the activities of the Commission under this section. Funds

made available to the Commission under this section shall remain

available until expended.

SEC. 3163. SENSE OF CONGRESS REGARDING RELIABILITY AND

SAFETY OF REMAINING NUCLEAR FORCES.

(a) FINDINGS.—Congress makes the following findings:

(1) The United States is committed to proceeding with

a robust, science-based stockpile stewardship program with

respect to production of nuclear weapons, and to maintaining

nuclear weapons production capabilities and capacities, that

are adequate—

(A) to ensure the safety, reliability, and performance

of the United States nuclear arsenal; and

(B) to meet such changing national security requirements as may result from international developments or

technical problems with nuclear warheads.

(2) The United States is committed to reestablishing and

maintaining production facilities for nuclear weapons components at levels that are sufficient—

(A) to satisfy requirements for the safety, reliability,

and performance of United States nuclear weapons; and

(B) to demonstrate and sustain production capabilities

and capacities.

(3) The United States is committed to maintaining the

nuclear weapons laboratories and protecting core nuclear

weapons competencies.

(4) The United States is committed to ensuring rapid access

to a new production source of tritium within the next decade,

as it currently has no meaningful capability to produce tritium,

a component that is essential to the performance of modern

nuclear weapons.

(5) The United States reserves the right, consistent with

United States law, to resume underground nuclear testing to

maintain confidence in the United States stockpile of nuclear

weapons if warhead design flaws or aging of nuclear weapons
110 STAT. 2846 PUBLIC LAW 104–201—SEPT. 23, 1996

result in problems that a robust stockpile stewardship program

cannot solve.

(6) The United States is committed to funding the Nevada

Test Site at a level that maintains the ability of the United

States to resume underground nuclear testing within one year

after a national decision to do so is made.

(7) The United States reserves the right to invoke the

supreme national interest of the United States and withdraw

from any future arms control agreement to limit underground

nuclear testing.

(b) SENSE OF CONGRESS REGARDING PRESIDENTIAL CON- SULTATION WITH CONGRESS.—It is the sense of Congress that the

President should consult closely with Congress regarding United

States policy and practices to ensure confidence in the safety, reliability, and performance of the nuclear stockpile of the United

States.

(c) SENSE OF CONGRESS REGARDING NOTIFICATION AND CON- SULTATION.—It is the sense of Congress that, upon a determination

by the President that a problem with the safety, reliability, or

performance of the nuclear stockpile has occurred and that the

problem cannot be corrected within the stockpile stewardship program, the President shall—

(1) immediately notify Congress of the problem; and

(2) submit to Congress in a timely manner a plan for

corrective action with respect to the problem, including—

(A) a technical description of the activities required

under the plan; and

(B) if underground testing of nuclear weapons would

assist in such corrective action, an assessment of the advisability of withdrawing from any treaty that prohibits underground testing of nuclear weapons.

SEC. 3164. STUDY ON WORKER PROTECTION AT THE MOUND FACILITY.

(a) REPORT.—Not later than March 15, 1997, the Secretary

of Energy shall submit to the congressional defense committees

a report regarding the status of projects and programs to improve

worker safety and health at the Mound Facility in Miamisburg,

Ohio.

(b) MATTERS COVERED.—The report shall include the following:

(1) The status of actions completed in fiscal year 1996.

(2) The status of actions completed or proposed to be

completed in fiscal years 1997 and 1998.

(3) A description of the fiscal year 1998 budget request

for worker safety and health at the Mound Facility.

(4) An accounting of expenditures for worker safety and

health at the Mound Facility by fiscal year from fiscal year

1994 through and including fiscal year 1996.

SEC. 3165. FISCAL YEAR 1998 FUNDING FOR GREENVILLE ROAD

IMPROVEMENT PROJECT, LIVERMORE, CALIFORNIA.

(a) FUNDING.—The Secretary of Energy shall include in the

budget for fiscal year 1998 submitted by the Secretary of Energy

to the Office of Management and Budget a request for sufficient

funds to pay the United States portion of the cost of transportation

improvements under the Greenville Road Improvement Project,

Livermore, California.

(b) COOPERATION WITH LIVERMORE, CALIFORNIA.—The Secretary shall work with the city of Livermore, California, to determine

Ohio.

President.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2847

the cost of the transportation improvements referred to in

subsection (a).

SEC. 3166. FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS

CRITICAL TO DEPARTMENT OF ENERGY NUCLEAR

WEAPONS COMPLEX.

(a) FUNDING.—Subject to subsection (b), of the funds authorized

to be appropriated pursuant to section 3101(b), $5,000,000 may

be used for conducting the fellowship program for the development

of skills critical to the ongoing mission of the Department of Energy

nuclear weapons complex required by section 3140 of the National

Defense Authorization Act for Fiscal Year 1996 (Public Law 104–

106; 110 Stat. 621; 42 U.S.C. 2121 note).

(b) NOTICE AND WAIT.—The Secretary of Energy may not obligate or expend funds under subsection (a) for the fellowship program

referred to in that subsection until—

(1) the Secretary submits to Congress a report

setting forth—

(A) the actions the Department has taken to implement

the fellowship program;

(B) the amount the Secretary proposes to obligate;

(C) the purposes for which such amount will be

obligated; and

(2) a period of 21 days elapses from the date of the receipt

of the report by Congress.

Subtitle E—Defense Nuclear

Environmental Cleanup and Management

SEC. 3171. PURPOSE.

The purpose of this subtitle is to provide for the expedited

environmental restoration and waste management of defense

nuclear facilities through the use of cost-effective management

mechanisms and innovative technologies.

SEC. 3172. APPLICABILITY.

(a) IN GENERAL.—The provisions of this subtitle shall apply

to the following defense nuclear facilities:

(1) Any defense nuclear facility for which the fiscal year

1996 environmental management budget was $350,000,000 or

more.

(2) Any other defense nuclear facility if—

(A) the chief executive officer of the State in which

the facility is located submits to the Secretary a request

that the facility be covered by the provisions of this subtitle; and

(B) the Secretary approves the request.

(b) LIMITATION.—The Secretary may not approve a request

under subsection (a)(2) until 60 days after the date on which the

Secretary notifies Congress of the Secretary’s receipt of the request.

SEC. 3173. SITE MANAGER.

(a) APPOINTMENT.—(1) Subject to paragraph (2), the Secretary

shall expeditiously appoint a Site Manager for each defense nuclear

facility (in this subtitle referred to as the ‘‘Site Manager’’).

42 USC 7274k

note.

Notification.

42 USC 7274k

note.

42 USC 7274k

note.

Reports.
110 STAT. 2848 PUBLIC LAW 104–201—SEPT. 23, 1996

(2) In the case of a defense nuclear facility at which another

program, in addition to environmental management operations, is

carried out, and such other program is subject to management

by a site manager, field office manager, or operations office manager, the Secretary shall appoint such manager to be the Site

Manager for such facility for purposes of this subtitle.

(b) AUTHORITY.—(1) In addition to other authorities provided

for in this Act, the Secretary may delegate to the Site Manager

of a defense nuclear facility authority to oversee and direct

environmental management operations at the facility, including

the authority to—

(A) enter into and modify contractual agreements to

enhance environmental restoration and waste management at

the facility;

(B) request that the Department headquarters submit to

Congress a reprogramming package shifting funds among

accounts in order to facilitate the most efficient and timely

environmental restoration and waste management of the facility, and, in the event that the Department headquarters does

not act upon the request within 60 days, submit such request

to the appropriate congressional committees for review;

(C) subject to paragraph (2), negotiate amendments to

environmental agreements for the Department;

(D) manage Department personnel at the facility;

(E) consider the costs, risk reduction benefits, and other

benefits for the purposes of ensuring protection of human health

and the environment or safety, with respect to any environmental remediation activity the cost of which exceeds

$25,000,000; and

(F) have assessments prepared for environmental restoration activities (in several documents or a single document,

as determined by the Site Manager).

(2) In using the authority described in paragraph (1)(C), a

Site Manager may not negotiate an amendment that is expected

to result in additional life cycle costs to the Department without

the approval of the Secretary.

(3) In using any authority described in paragraph (1), a Site

Manager of a facility shall consult with the State where the facility

is located and the advisory board for the facility.

(4) The delegation of any authority pursuant to this subsection

shall not be construed as restricting the Secretary’s authority to

delegate other authorities as necessary.

(c) INFORMATION TO SECRETARY.—The Site Manager of a

defense nuclear facility shall regularly inform the Secretary,

Congress, and the advisory board for the facility of the progress

made by the Site Manager to achieve the expedited environmental

restoration and waste management of the facility.

SEC. 3174. DEPARTMENT OF ENERGY ORDERS.

An order imposed after the date of the enactment of this Act

relating to the execution of environmental restoration, waste

management, or technology development activities at a defense

nuclear facility under the Atomic Energy Act of 1954 (42 U.S.C.

2011 et seq.) may be imposed by the Secretary at the defense

nuclear facility only if the Secretary finds that the order is necessary

for the protection of human health and the environment or safety,

42 USC 7274k

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2849

the fulfillment of current legal requirements, or the conduct of

critical administrative functions.

SEC. 3175. DEPLOYMENT OF TECHNOLOGY FOR REMEDIATION OF

DEFENSE NUCLEAR WASTE.

(a) IN GENERAL.—The Site Manager of each defense nuclear

facility shall promote the deployment of innovative environmental

technologies for remediation of defense nuclear waste at the facility.

(b) CRITERIA.—To carry out subsection (a), the Site Manager

of a defense nuclear facility shall establish a program at the facility

for the testing and deployment of innovative environmental

technologies for the remediation of defense nuclear waste at the

facility. In establishing such a program, the Site Manager may—

(1) establish a simplified, standardized, and timely process

for the testing, verification, certification, and deployment of

environmental technologies;

(2) solicit applications to test and deploy environmental

technologies suitable for environmental restoration and waste

management activities at the facility, including prevention,

control, characterization, treatment, and remediation of

contamination;

(3) consult and cooperate with the heads of existing programs at the facility for the verification and certification of

environmental technologies at the facility;

(4) pay the costs of the demonstration of such technologies;

(5) enter into contracts and other agreements with other

public and private entities to deploy environmental technologies

at the facility; and

(6) include incentives, such as product performance specifications, in contracts to encourage the implementation of

innovative environmental technologies.

(c) FOLLOW-ON CONTRACTS.—(1) If the Secretary and a person

demonstrating a technology under the program enter into a contract

for remediation of nuclear waste at a defense nuclear facility covered

by this subtitle, or at any other Department facility, as a followon to the demonstration of the technology, the Secretary shall

ensure that the contract provides for the Secretary to recoup from

the contractor the costs incurred by the Secretary pursuant to

subsection (b)(6) for the demonstration.

(2) No contract between the Department and a contractor for

the demonstration of technology under subsection (b) may provide

for reimbursement of the costs of the contractor on a cost plus

fee basis.

(d) SAFE HARBORS.—In the case of an environmental technology

tested, verified, certified, and deployed at a defense nuclear facility

under a program established under subsection (b), the Site Manager

of another defense nuclear facility may request the Secretary to

waive or limit contractual or Department regulatory requirements

that would otherwise apply in implementing the same environmental technology at such other facility.

SEC. 3176. PERFORMANCE-BASED CONTRACTING.

(a) PROGRAM.—The Secretary shall develop and implement a

program for performance-based contracting for contracts entered

into for environmental remediation at defense nuclear facilities.

The program shall ensure that, to the maximum extent practicable

and appropriate, such contracts include the following:

42 USC 7274k

note.

42 USC 7274k

note.
110 STAT. 2850 PUBLIC LAW 104–201—SEPT. 23, 1996

(1) Clearly stated and results oriented performance criteria

and measures.

(2) Appropriate incentives for contractors to meet or exceed

the performance criteria effectively and efficiently.

(3) Appropriate criteria and incentives for contractors to

seek and engage subcontractors who may more effectively and

efficiently perform either unique and technologically challenging tasks or routine and interchangeable services.

(4) Specific incentives for cost savings.

(5) Financial accountability.

(6) When appropriate, reduction of fee for failure to meet

minimum performance criteria and standards.

(b) CRITERIA AND MEASURES.—Performance criteria and

measures should take into consideration, at a minimum, the following: managerial control; elimination or reduction of risk to public

health and the environment; workplace safety; financial control;

goal-oriented work scope; use of innovative and alternative technologies and techniques that result in cleanups being performed

less expensively, more quickly, and within quality parameters; and

performing within benchmark cost estimates.

(c) CONSULTATION.—In implementing this section, the Secretary

shall consult with interested parties.

(d) DEADLINE.—The Secretary shall implement this section not

later than October 1, 1997, unless the Secretary submits to Congress

before that date a report with a schedule for completion of action

under this section.

SEC. 3177. DESIGNATION OF COVERED FACILITIES AS ENVIRONMENTAL CLEANUP DEMONSTRATION AREAS.

(a) DESIGNATION.—Each defense nuclear facility is hereby designated as an environmental cleanup demonstration area to carry

out the purposes of this subtitle, including the utilization and

evaluation of new technologies to be used in environmental restoration and remediation at other defense nuclear facilities.

(b) SENSE OF CONGRESS.—It is the sense of Congress that

Federal and State regulatory agencies, members of the communities

surrounding any defense nuclear facility, and other affected parties

with respect to the facility should continue to—

(1) develop expedited and streamlined processes and systems for cleaning up such facility;

(2) eliminate unnecessary administrative complexity and

unnecessary duplication of regulation with respect to the

cleanup of such facility;

(3) proceed expeditiously and cost-effectively with environmental restoration and remediation activities at such facility;

(4) consider future land use in selecting environmental

cleanup remedies at such facility; and

(5) identify and recommend to Congress changes in law

needed to expedite the cleanup of such facility.

SEC. 3178. DEFINITIONS.

In this subtitle:

(1) The term ‘‘Secretary’’ means the Secretary of Energy.

(2) The term ‘‘Department’’ means the Department of

Energy.

(3) The term ‘‘defense nuclear facility’’ has the meaning

given the term ‘‘Department of Energy defense nuclear facility’’

42 USC 7274k

note.

42 USC 7274k

note.

Reports.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2851

in section 318 of the Atomic Energy Act of 1954 (42 U.S.C.

2286g).

SEC. 3179. TERMINATION.

This subtitle is repealed effective September 30, 2001.

SEC. 3180. REPORT.

Not later than September 30, 2000, the Secretary shall submit

to Congress a report on the effectiveness of this subtitle in expediting environmental restoration and waste management of defense

nuclear facilities. The report shall include recommendations on

whether this subtitle should remain in effect beyond September

30, 2001.

Subtitle F—Waste Isolation Pilot Plant

Land Withdrawal Act Amendments

SEC. 3181. SHORT TITLE.

This subtitle may be cited as the ‘‘Waste Isolation Pilot Plant

Land Withdrawal Amendment Act’’.

SEC. 3182. DEFINITIONS.

Section 2 of the Waste Isolation Pilot Plant Land Withdrawal

Act (Public Law 102–579; 106 Stat. 4777) is amended—

(1) by striking paragraphs (18) and (19); and

(2) by redesignating paragraphs (20), (21), and (22), as

paragraphs (18), (19), and (20), respectively.

SEC. 3183. MANAGEMENT PLAN.

Section 4(b)(5)(B) of the Waste Isolation Pilot Plant Land Withdrawal Act (106 Stat. 4781) is amended by striking ‘‘or with the

Solid Waste Disposal Act (42 U.S.C. 6901 et seq.)’’.

SEC. 3184. REPEAL OF TEST PHASE AND RETRIEVAL PLANS.

(a) REPEAL.—Section 5 of the Waste Isolation Pilot Plant Land

Withdrawal Act (106 Stat. 4782) is repealed.

(b) CLERICAL AMENDMENT.—The table of contents in section

1(b) of such Act (106 Stat. 4777) is amended by striking out the

item relating to section 5.

SEC. 3185. TEST PHASE ACTIVITIES.

Section 6 of the Waste Isolation Pilot Plant Land Withdrawal

Act (106 Stat. 4783) is amended—

(1) by repealing subsections (a) and (b);

(2) by repealing paragraph (1) of subsection (c);

(3) by redesignating subsection (c) as subsection (a) and

in that subsection—

(A) by repealing subparagraph (A) of paragraph (2);

(B) by striking the subsection heading and the matter

immediately following the subsection heading and inserting

‘‘STUDY.—The following study shall be conducted:’’;

(C) by striking ‘‘(2) REMOTE-HANDLED WASTE.—’’;

(D) by striking ‘‘(B) STUDY.—’’;

(E) by redesignating clauses (i), (ii), and (iii) as paragraphs (1), (2), and (3), respectively; and

(F) by realigning the margins of such clauses to be

margins of paragraphs;

Waste Isolation

Pilot Plant Land

Withdrawal

Amendment Act.

42 USC 7274k

note.

42 USC 7274k

note.
110 STAT. 2852 PUBLIC LAW 104–201—SEPT. 23, 1996

(4) in subsection (d), by striking ‘‘, during the test phase,

a biennial’’ and inserting ‘‘a’’ and by striking ‘‘, consisting

of a documented analysis of’’ and inserting ‘‘as necessary to

demonstrate’’; and

(5) by redesignating subsection (d) as subsection (b).

SEC. 3186. DISPOSAL OPERATIONS.

Subsection (b) of section 7 of the Waste Isolation Pilot Plant

Land Withdrawal Act (106 Stat. 4785) is amended to read as

follows:

‘‘(b) REQUIREMENTS FOR COMMENCEMENT OF DISPOSAL

OPERATIONS.—The Secretary may commence emplacement of transuranic waste underground for disposal at WIPP only upon completion of—

‘‘(1) the Administrator’s certification under section 8(d)(1)

that the WIPP facility will comply with the final disposal

regulations;

‘‘(2) the acquisition by the Secretary (whether by purchase,

condemnation, or otherwise) of Federal Oil and Gas Leases

No. NMNM 02953 and No. NMNM 02953C, unless the Administrator determines under section 4(b)(5) that such acquisition

is not required; and

‘‘(3) the 30-day period beginning on the date on which

the Secretary notifies Congress that the requirements of section

9(a)(1) have been met.’’.

SEC. 3187. ENVIRONMENTAL PROTECTION AGENCY DISPOSAL

REGULATIONS.

(a) SECTION 8(d)(1).—Section 8(d)(1) of the Waste Isolation Pilot

Plant Land Withdrawal Act (106 Stat. 4786) is amended—

(1) by amending subparagraph (A) to read as follows:

‘‘(A) APPLICATION FOR COMPLIANCE.—Within 30 days

after the date of the enactment of the Waste Isolation

Pilot Plant Land Withdrawal Amendment Act, the Secretary shall provide to Congress a schedule for the

incremental submission of chapters of the application to

the Administrator beginning no later than 30 days after

the date of the submittal of the schedule. The Administrator shall review the submitted chapters and provide

requests for additional information from the Secretary as

needed for completeness within 45 days of the receipt of

each chapter. The Administrator shall notify Congress of

such requests. The schedule shall call for the Secretary

to submit all chapters to the Administrator no later than

October 31, 1996. The Administrator may at any time

request additional information from the Secretary as

needed to certify, pursuant to subparagraph (B), whether

the WIPP facility will comply with the final disposal regulations.’’; and

(2) in subparagraph (D), by striking ‘‘after the application

is’’ and inserting ‘‘after the full application has been’’.

(b) SECTION 8(d) (2) and (3).—Section 8(d) of such Act is

amended by striking paragraphs (2) and (3), by striking ‘‘(1) COMPLI- ANCE WITH DISPOSAL REGULATIONS.—’’ and by redesignating subparagraphs (A), (B), (C), and (D) of paragraph (1) as paragraphs

(1), (2), (3), and (4), respectively.

(c) SECTION 8(g).—Section 8(g) of such Act is amended to read

as follows:

Notification.

Notification.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2853

‘‘(g) ENGINEERED AND NATURAL BARRIERS, ETC.—The Secretary

shall use both engineered and natural barriers and any other measures (including waste form modifications) to the extent necessary

at WIPP to comply with the final disposal regulations.’’.

SEC. 3188. COMPLIANCE WITH ENVIRONMENTAL LAWS AND

REGULATIONS.

(a) SECTION 9(a)(1).—Section 9(a)(1) of the Waste Isolation Pilot

Plant Land Withdrawal Act (106 Stat. 4788) is amended by adding

after and below subparagraph (H) the following: ‘‘With respect

to transuranic mixed waste designated by the Secretary for disposal

at WIPP, such waste is exempt from treatment standards promulgated pursuant to section 3004(m) of the Solid Waste Disposal

Act (42 U.S.C. 6924(m)) and shall not be subject to the land disposal

prohibitions in section 3004(d), (e), (f), and (g) of the Solid Waste

Disposal Act.’’.

(b) SECTION 9(b).—Subsection (b) of section 9 of such Act is

repealed.

(c) SECTION 9(c)(2).—Subsection (c)(2) of section 9 of such Act

is repealed.

(d) SECTION 14.—Section 14 of such Act (106 Stat. 4791) is

amended—

(1) in subsection (a), by striking ‘‘No provision’’ and inserting ‘‘Except for the exemption from the land disposal restrictions described in section 9(a)(1), no provision’’; and

(2) in subsection (b)(2), by striking ‘‘including all terms

and conditions of the No-Migration Determination’’ and inserting ‘‘except that the transuranic mixed waste designated by

the Secretary for disposal at WIPP is exempt from the land

disposal restrictions described in section 9(a)(1)’’.

SEC. 3189. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACEMENT OF TRANSURANIC WASTE.

(a) IN GENERAL.—Section 10 of the Waste Isolation Pilot Plant

Land Withdrawal Act (106 Stat. 4789) is amended to read as

follows:

‘‘SEC. 10. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACEMENT OF TRANSURANIC WASTE.

‘‘It is the sense of Congress that the Secretary should complete

all actions required under section 7(b) to commence emplacement

of transuranic waste underground for disposal at WIPP not later

than November 30, 1997, provided that before that date all

applicable health and safety standards have been met and all

applicable laws have been complied with.’’.

(b) CLERICAL AMENDMENT.—The item relating to section 10

in the table of contents in section 1 is amended to read as follows:

‘‘Sec. 10. Sense of Congress on commencement of emplacement of transuranic

waste.’’.

SEC. 3190. DECOMMISSIONING OF WIPP.

Section 13 of the Waste Isolation Pilot Plant Land Withdrawal

Act (106 Stat. 4791) is amended—

(1) by striking subsection (a); and

(2) by striking ‘‘(b) MANAGEMENT PLAN FOR THE WITHDRAWAL AFTER DECOMMISSIONING.—Within 5 years after the

date of the enactment of this Act, the’’ and inserting ‘‘The’’.
110 STAT. 2854 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 3191. AUTHORIZATIONS FOR ECONOMIC ASSISTANCE AND

MISCELLANEOUS PAYMENTS.

(a) AUTHORIZATION AMENDMENT.—Section 15(a) of the Waste

Isolation Pilot Plant Land Withdrawal Act (106 Stat. 4791) is

amended—

(1) in the subsection caption, by striking ‘‘15-YEAR’’ and

inserting ‘‘14-YEAR’’; and

(2) by striking ‘‘15 fiscal years beginning with the fiscal

year in which the transport of transuranic waste to WIPP

is initiated’’ and inserting ‘‘14 fiscal years beginning with fiscal

year 1998’’.

(b) REQUIREMENT FOR SEPARATE AUTHORIZATIONS.—Such section 15(a) is further amended by adding at the end the following:

‘‘The authorization of appropriations for funds for payments to

the State under the preceding sentence shall be separate from

any authorization of appropriations of funds for WIPP.’’.

(c) FISCAL YEAR 1997 FUNDING.—Of the amount authorized

to be appropriated for the Department of Energy by section 3102(b),

$20,000,000 shall be available for the purpose of a payment by

the Secretary of Energy to the State of New Mexico for road

improvements in connection with the Waste Isolation Pilot Plant.

TITLE XXXII—DEFENSE NUCLEAR

FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION.

There are authorized to be appropriated for fiscal year 1997,

$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.

Sec. 3302. Authorized uses of stockpile funds.

Sec. 3303. Disposal of certain materials in National Defense Stockpile.

Subtitle B—Programmatic Change

Sec. 3311. Biennial report on stockpile requirements.

Sec. 3312. Notification requirements.

Sec. 3313. Importation of strategic and critical materials.

Subtitle A—Authorization of Disposals and

Use of Funds

SEC. 3301. DEFINITIONS.

In this title:

(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).

50 USC 98d note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2855

(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 1997,

the National Defense Stockpile Manager may obligate up to

$60,000,000 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 CERTAIN MATERIALS IN NATIONAL DEFENSE

STOCKPILE.

(a) DISPOSAL REQUIRED.—Subject to subsection (c), the President shall dispose of materials contained in the National Defense

Stockpile and specified in the table in subsection (b) so as to

result in receipts to the United States in amounts equal to— (1) $81,000,000 during fiscal year 1997; and

(2) $612,000,000 during the ten-fiscal year period ending

September 30, 2006.

(b) LIMITATION ON DISPOSAL QUANTITY.—The total quantities

of materials authorized for disposal by the President under subsection (a) may not exceed the amounts set forth in the following

table:

Authorized Stockpile Disposals

Material for disposal Quantity

Aluminum ................................................................. 62,881 short tons

Cobalt ........................................................................ 26,000,000 pounds

contained

Columbium Ferro ..................................................... 930,911 pounds contained

Germanium Metal .................................................... 40,000 kilograms

Indium ...................................................................... 35,000 troy ounces

Palladium ................................................................. 15,000 troy ounces

Platinum ................................................................... 10,000 troy ounces

Rubber, Natural ....................................................... 125,138 long tons

Tantalum, Carbide Powder ..................................... 6,000 pounds contained

Tantalum, Minerals ................................................. 750,000 pounds contained

President.

50 USC 98d note.
110 STAT. 2856 PUBLIC LAW 104–201—SEPT. 23, 1996

Authorized Stockpile Disposals—Continued

Material for disposal Quantity

Tantalum, Oxide ...................................................... 40,000 pounds contained

(c) MINIMIZATION OF DISRUPTION AND LOSS.—The President

may not dispose of materials under subsection (a) to the extent

that the disposal will result in—

(1) undue disruption of the usual markets of producers,

processors, and consumers of the materials proposed for disposal; or

(2) avoidable loss to the United States.

(d) TREATMENT OF RECEIPTS.—Notwithstanding section 9 of

the Strategic and Critical Materials Stock Piling Act (50 U.S.C.

98h), funds received as a result of the disposal of materials under

subsection (a) shall be—

(1) deposited into the general fund of the Treasury; and

(2) to the extent necessary, used to offset the revenues

that will be lost as a result of execution of the amendments

made by section 4303(a) of the National Defense Authorization

Act for Fiscal Year 1996 (Public Law 104–106; 110 Stat. 658).

(e) QUALIFYING OFFSETTING LEGISLATION.—This section is

specifically enacted as qualifying offsetting legislation for the purpose of offsetting fully the estimated revenues lost as a result

of the amendments made by subsection (a) of section 4303 of the

National Defense Authorization Act for Fiscal Year 1996 (Public

Law 104–106; 110 Stat. 658), and as such is deemed to satisfy

the conditions in subsection (b) of such section.

(f) RELATIONSHIP TO OTHER DISPOSAL AUTHORITY.—The disposal authority provided in subsection (a) is new disposal authority

and is in addition to, and shall not affect, any other disposal

authority provided by law regarding the materials specified in such

subsection.

Subtitle B—Programmatic Change

SEC. 3311. BIENNIAL REPORT ON STOCKPILE REQUIREMENTS.

(a) NATIONAL EMERGENCY PLANNING ASSUMPTIONS.—Section 14

of the Strategic and Critical Materials Stock Piling Act (50 U.S.C.

98h–5) is amended—

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

(2) by striking out subsection (b) and inserting in lieu

thereof the following new subsection:

‘‘(b) Each report under this section shall set forth the national

emergency planning assumptions used by the Secretary in making

the Secretary’s recommendations under subsection (a)(1) with

respect to stockpile requirements. The Secretary shall base the

national emergency planning assumptions on a military conflict

scenario consistent with the scenario used by the Secretary in

budgeting and defense planning purposes. The assumptions to be

set forth include assumptions relating to each of the following:

‘‘(1) The length and intensity of the assumed military

conflict.

‘‘(2) The military force structure to be mobilized.

‘‘(3) The losses anticipated from enemy action.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2857

‘‘(4) The military, industrial, and essential civilian requirements to support the national emergency.

‘‘(5) The availability of supplies of strategic and critical

materials from foreign sources during the mobilization period,

the military conflict, and the subsequent period of replenishment, taking into consideration possible shipping losses.

‘‘(6) The domestic production of strategic and critical materials during the mobilization period, the military conflict, and

the subsequent period of replenishment, taking into consideration possible shipping losses.

‘‘(7) Civilian austerity measures required during the

mobilization period and military conflict.

‘‘(c) The stockpile requirements shall be based on those strategic

and critical materials necessary for the United States to replenish

or replace, within three years of the end of the military conflict

scenario required under subsection (b), all munitions, combat support items, and weapons systems that would be required after

such a military conflict.

‘‘(d) The Secretary shall also include in each report under

this section an examination of the effect that alternative mobilization periods under the military conflict scenario required under

subsection (b), as well as a range of other military conflict scenarios

addressing potentially more serious threats to national security,

would have on the Secretary’s recommendations under subsection

(a)(1) with respect to stockpile requirements.’’.

(b) CONFORMING AMENDMENT.—Section 2 of such Act (50 U.S.C.

98a) is amended by striking out subsection (c) and inserting in

lieu thereof the following new subsection:

‘‘(c) The purpose of the National Defense Stockpile is to serve

the interest of national defense only. The National Defense Stockpile

is not to be used for economic or budgetary purposes.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall take effect on October 1, 1996.

SEC. 3312. NOTIFICATION REQUIREMENTS.

(a) PROPOSED CHANGES IN STOCKPILE QUANTITIES.—Section

3(c)(2) of the Strategic and Critical Materials Stock Piling Act

(50 U.S.C. 98b(c)(2)) is amended—

(1) by striking out ‘‘effective on or after the 30th legislative

day following’’ and inserting in lieu thereof ‘‘after the end

of the 45-day period beginning on’’; and

(2) by striking out the last sentence.

(b) WAIVER OF ACQUISITION AND DISPOSAL REQUIREMENTS.—

Section 6(d)(1) of such Act (50 U.S.C. 98e(d)(1)) is amended by

striking out ‘‘thirty days’’ and inserting in lieu thereof ‘‘45 days’’.

(c) TIME TO BEGIN DISPOSAL.—Section 6(d)(2) of such Act (50

U.S.C. 98e(d)(2)) is amended by striking out ‘‘thirty days’’ and

inserting in lieu thereof ‘‘45 days’’.

SEC. 3313. IMPORTATION OF STRATEGIC AND CRITICAL MATERIALS.

Section 13 of the Strategic and Critical Materials Stock Piling

Act (50 U.S.C. 98h–4) is amended—

(1) by striking out ‘‘as a Communist-dominated country

or area’’; and

(2) by striking out ‘‘such Communist-dominated countries

or areas’’ and inserting in lieu thereof ‘‘a country or area

listed in such general note’’.

50 USC 98a note.
110 STAT. 2858 PUBLIC LAW 104–201—SEPT. 23, 1996

TITLE XXXIV—NAVAL PETROLEUM

RESERVES

Sec. 3401. Authorization of appropriations.

Sec. 3402. Price requirement on sale of certain petroleum during fiscal year 1997.

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

There is hereby authorized to be appropriated to the Secretary

of Energy $149,500,000 for fiscal year 1997 for the purpose of

carrying out activities under chapter 641 of title 10, United States

Code, relating to the naval petroleum reserves (as defined in section

7420(2) of such title). Funds appropriated pursuant to such

authorization shall remain available until expended.

SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM

DURING FISCAL YEAR 1997.

Notwithstanding section 7430(b)(2) of title 10, United States

Code, during fiscal year 1997, 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.

TITLE XXXV—PANAMA CANAL

COMMISSION

Subtitle A—Authorization of Appropriations

Sec. 3501. Short title.

Sec. 3502. Authorization of expenditures.

Sec. 3503. Purchase of vehicles.

Sec. 3504. Expenditures only in accordance with treaties.

Subtitle B—Amendments to Panama Canal Act of 1979

Sec. 3521. Short title; references.

Sec. 3522. Definitions and recommendation for legislation.

Sec. 3523. Administrator.

Sec. 3524. Deputy Administrator and Chief Engineer.

Sec. 3525. Office of Ombudsman.

Sec. 3526. Appointment and compensation; duties.

Sec. 3527. Applicability of certain benefits.

Sec. 3528. Travel and transportation.

Sec. 3529. Clarification of definition of agency.

Sec. 3530. Panama Canal Employment System; merit and other employment

requirements.

Sec. 3531. Employment standards.

Sec. 3532. Repeal of obsolete provision regarding interim application of Canal Zone

Merit System.

Sec. 3533. Repeal of provision relating to recruitment and retention remuneration.

Sec. 3534. Benefits based on basic pay.

Sec. 3535. Vesting of general administrative authority of commission.

Sec. 3536. Applicability of certain laws.

Sec. 3537. Repeal of provision relating to transferred or reemployed employees.

Sec. 3538. Administration of special disability benefits.

Sec. 3539. Panama Canal Revolving Fund.

Sec. 3540. Printing.

Sec. 3541. Accounting policies.

Sec. 3542. Interagency services; reimbursements.

Sec. 3543. Postal service.

Sec. 3544. Investigation of accidents or injury giving rise to claim.

Sec. 3545. Operations regulations.

Sec. 3546. Miscellaneous repeals.

Sec. 3547. Exemption from Metric Conversion Act of 1975.

10 USC 7430

note.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2859

Sec. 3548. Conforming and clerical amendments.

Sec. 3549. Repeal of Panama Canal Code.

Subtitle A—Authorization of

Appropriations

SEC. 3501. SHORT TITLE.

This subtitle may be cited as the ‘‘Panama Canal Commission

Authorization Act for Fiscal Year 1997’’.

SEC. 3502. AUTHORIZATION OF EXPENDITURES.

(a) IN GENERAL.—Subject to subsection (b), the Panama Canal

Commission is authorized to use amounts in the Panama Canal

Revolving Fund 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, as may be

necessary under the Panama Canal Act of 1979 (22 U.S.C. 3601

et seq.) for the operation, maintenance, improvement, and administration of the Panama Canal for fiscal year 1997.

(b) LIMITATIONS.—For fiscal year 1997, the Panama Canal

Commission may expend from funds in the Panama Canal Revolving

Fund not more than $73,000 for reception and representation

expenses, of which—

(1) not more than $18,000 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.

SEC. 3503. PURCHASE OF VEHICLES.

Notwithstanding any other provisions of law, the funds available to the Commission shall be available for the purchase and

transportation to the Republic of Panama of passenger motor

vehicles, including large, heavy-duty vehicles.

SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

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.

Panama Canal

Commission

Authorization

Act for Fiscal

Year 1997.
110 STAT. 2860 PUBLIC LAW 104–201—SEPT. 23, 1996

Subtitle B—Amendments to Panama Canal

Act of 1979

SEC. 3521. SHORT TITLE; REFERENCES.

(a) SHORT TITLE.—This subtitle may be cited as the ‘‘Panama

Canal Act Amendments of 1996’’.

(b) REFERENCES.—Except as otherwise expressly provided,

whenever in this subtitle an amendment or repeal is expressed

in terms of an amendment to, or repeal of, a section or other

provision, the reference shall be considered to be made to a section

or other provision of the Panama Canal Act of 1979 (22 U.S.C.

3601 et seq.).

SEC. 3522. DEFINITIONS AND RECOMMENDATION FOR LEGISLATION.

Section 3 (22 U.S.C. 3602) is amended—

(1) in subsection (b), by inserting ‘‘and’’ after the semicolon

at the end of paragraph (4), by striking the semicolon at the

end of paragraph (5) and inserting a period, and striking paragraphs (6) and (7); and

(2) by striking subsection (d).

SEC. 3523. ADMINISTRATOR.

(a) IN GENERAL.—Section 1103 (22 U.S.C. 3613) is amended

to read as follows:

‘‘ADMINISTRATOR

‘‘SEC. 1103. (a) There shall be an Administrator of the Commission who shall be appointed by the President, by and with the

advice and consent of the Senate, and shall hold office at the

pleasure of the President.

‘‘(b) The Administrator shall be paid compensation in an

amount, established by the Board, not to exceed level III of the

Executive Schedule.’’.

(b) SAVINGS PROVISIONS.—Nothing in this section (or section

3549(3)) shall be considered to affect—

(1) the tenure of the individual serving as Administrator

of the Commission on the day before subsection (a) takes

effect; or

(2) until modified under section 1103(b) of the Panama

Canal Act of 1979, as amended by subsection (a), the compensation of the individual so serving.

SEC. 3524. DEPUTY ADMINISTRATOR AND CHIEF ENGINEER.

(a) IN GENERAL.—Section 1104 (22 U.S.C. 3614) is amended

to read as follows:

‘‘DEPUTY ADMINISTRATOR

‘‘SEC. 1104. (a) There shall be a Deputy Administrator of the

Commission who shall be appointed by the President. The Deputy

Administrator shall perform such duties as may be prescribed by

the Board.

‘‘(b) The Deputy Administrator shall be paid compensation at

a rate of pay, established by the Board, which does not exceed

the rate of basic pay in effect for level IV of the Executive Schedule,

President.

22 USC 3613

note.

President.

22 USC 3601

note.

Panama Canal

Commission

Authorization

Act for Fiscal

Year 1997.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2861

and, if eligible, shall be paid the overseas recruitment and retention

differential provided for in section 1217 of this Act.’’.

(b) SAVINGS PROVISIONS.—Nothing in this section shall be

considered to affect—

(1) the tenure of the individual serving as Deputy Administrator of the Commission on the day before subsection (a)

takes effect; or

(2) until modified under section 1104(b) of the Panama

Canal Act of 1979, as amended by subsection (a), the compensation of the individual so serving.

SEC. 3525. OFFICE OF OMBUDSMAN.

Section 1113 (22 U.S.C. 3623) is amended by striking subsection

(d) and redesignating subsection (e) as subsection (d).

SEC. 3526. APPOINTMENT AND COMPENSATION; DUTIES.

Section 1202 (22 U.S.C. 3642) is amended to read as follows:

‘‘APPOINTMENT AND COMPENSATION; DUTIES

‘‘SEC. 1202. (a) In accordance with this chapter, the Commission

may appoint, fix the compensation of, and define the authority

and duties of officers and employees (other than the Administrator

and Deputy Administrator) necessary for the management, operation, and maintenance of the Panama Canal and its complementary works, installations, and equipment.

‘‘(b) Individuals serving in any Executive agency (other than

the Commission) or the Smithsonian Institution, including individuals in the uniformed services, may, if appointed under this section

or section 1104 of this Act, serve as officers or employees of the

Commission.’’.

SEC. 3527. APPLICABILITY OF CERTAIN BENEFITS.

Section 1209 (22 U.S.C. 3649) is amended to read as follows:

‘‘APPLICABILITY OF CERTAIN BENEFITS

‘‘SEC. 1209. Chapter 81 of title 5, United States Code, relating

to compensation for work injuries, chapters 83 and 84 of such

title 5, relating to retirement, chapter 87 of such title 5, relating

to life insurance, and chapter 89 of such title 5, relating to health

insurance, are applicable to Commission employees, except any

individual—

‘‘(1) who is not a citizen of the United States;

‘‘(2) whose initial appointment by the Commission occurs

after October 1, 1979; and

‘‘(3) who is covered by the Social Security System of the

Republic of Panama pursuant to any provision of the Panama

Canal Treaty of 1977 and related agreements.’’.

SEC. 3528. TRAVEL AND TRANSPORTATION.

Section 1210 (22 U.S.C. 3650) is amended to read as follows:

‘‘TRAVEL AND TRANSPORTATION

‘‘SEC. 1210. (a) Subject to subsections (b) and (c), the Commission may pay travel and transportation expenses for employees

in accordance with subchapter II of chapter 57 of title 5, United

States Code.

22 USC 3614

note.
110 STAT. 2862 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(b) For an employee to whom section 1206 applies, the Commission may pay travel and transportation expenses associated with

vacation leave for the employee and the immediate family of the

employee notwithstanding requirements regarding periods of service

established by subchapter II of chapter 57 of title 5, United States

Code, or the regulations promulgated thereunder.

‘‘(c) For an employee to whom section 1206 does not apply,

the Commission may pay travel and transportation expenses associated with vacation leave for the employee and the immediate family

of the employee notwithstanding requirements regarding a written

agreement concerning the duration of a continuing service obligation

established by subchapter II of chapter 57 of title 5, United States

Code, or the regulations promulgated thereunder.

‘‘(d)(1) Notwithstanding any other provision of law (except paragraph (2)), the Commission may contract with Panamanian carriers

registered under the laws of the Republic of Panama to provide

air transportation to officials and employees of the Commission

who are citizens of the Republic of Panama.

‘‘(2) Notwithstanding paragraph (1), an official or employee

of the Commission referred to in paragraph (1) may elect, for

security or other reasons, to travel by an air carrier holding a

certificate under section 41102 of title 49, United States Code.’’.

SEC. 3529. CLARIFICATION OF DEFINITION OF AGENCY.

Subparagraph (B) of section 1211(1) (22 U.S.C. 3651(1)(B)) is

amended to read as follows:

‘‘(B) any other Executive agency or the Smithsonian

Institution, to the extent of any election in effect under

section 1212(b) of this Act;’’.

SEC. 3530. PANAMA CANAL EMPLOYMENT SYSTEM; MERIT AND OTHER

EMPLOYMENT REQUIREMENTS.

(a) IN GENERAL.—Section 1212 (22 U.S.C. 3652) is amended

to read as follows:

‘‘PANAMA CANAL EMPLOYMENT SYSTEM; MERIT AND OTHER

EMPLOYMENT REQUIREMENTS

‘‘SEC. 1212. (a) The Commission shall establish a Panama Canal

Employment System and prescribe the regulations necessary for

its administration. The Panama Canal Employment System shall—

‘‘(1) be established in accordance with and be subject to

the provisions of the Panama Canal Treaty of 1977 and related

agreements, the provisions of this chapter, and any other

applicable provision of law;

‘‘(2) be based on the consideration of the merit of each

employee or candidate for employment and the qualifications

and fitness of the employee to hold the position concerned;

‘‘(3) conform, to the extent practicable and consistent with

the provisions of this Act, to the policies, principles, and standards applicable to the competitive service;

‘‘(4) in the case of employees who are citizens of the United

States, provide for the appropriate interchange of those employees between positions under the Panama Canal Employment

System and positions in the competitive service; and

‘‘(5) not be subject to the provisions of title 5, United

States Code, unless specifically made applicable by this Act.

Establishment.

Regulations.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2863

‘‘(b)(1) The head of any Executive agency (other than the

Commission) and the Smithsonian Institution may elect to have

the Panama Canal Employment System made applicable in whole

or in part to personnel of that agency in the Republic of Panama.

‘‘(2) Any Executive agency (other than the Commission) and

the Smithsonian Institution, to the extent of any election under

paragraph (1), shall conduct its employment and pay practices

relating to employees in accordance with the Panama Canal

Employment System.

‘‘(3) Notwithstanding any other provision of this Act or the

Panama Canal Act Amendments of 1996, this subchapter, as last

in effect before the effective date of section 3530 of the Panama

Canal Act Amendments of 1996, shall continue to apply to an

Executive agency or the Smithsonian Institution to the extent of

an election under paragraph (1) by the head of agency or the

Institution, respectively.

‘‘(c) The Commission may exclude any employee or position

from coverage under any provision of this subchapter, other than

the interchange rights extended under subsection (a)(4).’’.

(b) SAVINGS PROVISIONS.—The Panama Canal Employment System and all elections, rules, regulations, and orders relating thereto,

as last in effect before the amendment made by subsection (a)

takes effect, shall continue in effect, according to their terms, until

modified, terminated, or superseded under section 1212 of the

Panama Canal Act of 1979, as amended by subsection (a).

SEC. 3531. EMPLOYMENT STANDARDS.

Section 1213 (22 U.S.C. 3653) is amended in the first sentence

by striking ‘‘The head of each agency’’ and inserting ‘‘The

Commission’’.

SEC. 3532. REPEAL OF OBSOLETE PROVISION REGARDING INTERIM

APPLICATION OF CANAL ZONE MERIT SYSTEM.

Section 1214 (22 U.S.C. 3654) is repealed.

SEC. 3533. REPEAL OF PROVISION RELATING TO RECRUITMENT AND

RETENTION REMUNERATION.

Section 1217(d) (22 U.S.C. 3657(d)) is repealed.

SEC. 3534. BENEFITS BASED ON BASIC PAY.

Section 1218(2) (22 U.S.C. 3658(2)) is amended to read as

follows:

‘‘(2) benefits under subchapter III of chapter 83 or chapter

84 of title 5, United States Code, relating to retirement;’’.

SEC. 3535. VESTING OF GENERAL ADMINISTRATIVE AUTHORITY OF

COMMISSION.

Section 1223 (22 U.S.C. 3663) is amended to read as follows:

‘‘CENTRAL EXAMINING OFFICE

‘‘SEC. 1223. The Commission shall establish a Central Examining Office. The purpose of the office shall be to implement the

provisions of the Panama Canal Treaty of 1977 and related agreements with respect to recruitment, examination, determination of

qualification standards, and similar matters relating to employment

of the Commission.’’.

Establishment.

Applicability.

22 USC 3652

note.

Applicability.
110 STAT. 2864 PUBLIC LAW 104–201—SEPT. 23, 1996

SEC. 3536. APPLICABILITY OF CERTAIN LAWS.

Section 1224 (22 U.S.C. 3664) is amended to read as follows:

‘‘APPLICABILITY OF TITLE 5, UNITED STATES CODE

‘‘SEC. 1224. The following provisions of title 5, United States

Code, apply to the Panama Canal Commission:

‘‘(1) Part I of title 5 (relating to agencies generally).

‘‘(2) Chapter 21 (relating to employee definitions).

‘‘(3) Section 2302(b)(8) (relating to whistleblower protection)

and all provisions of title 5 relating to the administration

or enforcement or any other aspect thereof, as identified in

regulations prescribed by the Commission in consultation with

the Office of Personnel Management.

‘‘(4) All provisions relating to preference eligibles.

‘‘(5) Section 5514 (relating to offset from salary).

‘‘(6) Section 5520a (relating to garnishments).

‘‘(7) Sections 5531–5535 (relating to dual pay and employment).

‘‘(8) Subchapter VI of chapter 55 (relating to accumulated

and accrued leave).

‘‘(9) Subchapter IX of chapter 55 (relating to severance

and back pay).

‘‘(10) Chapter 57 (relating to travel, transportation, and

subsistence).

‘‘(11) Chapter 59 (relating to allowances).

‘‘(12) Chapter 63 (relating to leave for CONUS employees).

‘‘(13) Section 6323 (relating to military leave; Reserves

and National Guardsmen).

‘‘(14) Chapter 71 (relating to labor relations).

‘‘(15) Subchapters II and III of chapter 73 (relating to

employment limitations and political activities, respectively)

and all provisions of title 5 relating to the administration

or enforcement or any other aspect thereof, as identified in

regulations prescribed by the Commission in consultation with

the Office of Personnel Management.

‘‘(16) Chapter 81 (relating to compensation for work

injuries).

‘‘(17) Chapters 83 and 84 (relating to retirement).

‘‘(18) Chapter 85 (relating to unemployment compensation).

‘‘(19) Chapter 87 (relating to life insurance).

‘‘(20) Chapter 89 (relating to health insurance).’’.

SEC. 3537. REPEAL OF PROVISION RELATING TO TRANSFERRED OR

REEMPLOYED EMPLOYEES.

Section 1231(a)(3) (22 U.S.C. 3671(a)(3)) is repealed.

SEC. 3538. ADMINISTRATION OF SPECIAL DISABILITY BENEFITS.

Section 1245 (22 U.S.C. 3682) is amended by striking so much

as precedes subsection (b) and inserting the following:

‘‘ADMINISTRATION OF CERTAIN DISABILITY BENEFITS

‘‘SEC. 1245. (a)(1) The Commission, or any other United States

Government agency or private entity acting pursuant to an agreement with the Commission, under the Act entitled ‘An Act authorizing cash relief for certain employees of the Panama Canal not

coming within the provisions of the Canal Zone Retirement Act’,
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2865

approved July 8, 1937 (50 Stat. 478; 68 Stat. 17), may continue

the payments of cash relief to those individual former employees

of the Canal Zone Government or Panama Canal Company or

their predecessor agencies not coming within the scope of the former

Canal Zone Retirement Act whose services were terminated prior

to October 5, 1958, because of unfitness for further useful service

by reason of mental or physical disability resulting from age or

disease.

‘‘(2) Subject to subsection (b), cash relief under this subsection

may not exceed $1.50 per month for each year of service of the

employees so furnished relief, with a maximum of $45 per month,

plus the amount of any cost-of-living increases in such cash relief

granted before October 1, 1979, pursuant to section 181 of title

2 of the Canal Zone Code (as in effect on September 30, 1979),

nor be paid to any employee who, at the time of termination

for disability prior to October 5, 1958, had less than 10 years’

service with the Canal Zone Government, the Panama Canal Company, or their predecessor agencies on the Isthmus of Panama.’’.

SEC. 3539. PANAMA CANAL REVOLVING FUND.

Section 1302 of the Panama Canal Act of 1979 (22 U.S.C.

3712) is amended to read as follows:

‘‘PANAMA CANAL REVOLVING FUND

‘‘SEC. 1302. (a) There is established in the Treasury of the

United States a revolving fund to be known as ‘Panama Canal

Revolving Fund’. The Panama Canal Revolving Fund shall, subject

to subsection (b), be available to the Commission to carry out

the purposes, functions, and powers authorized by this Act, including for—

‘‘(1) the hire of passenger motor vehicles and aircraft;

‘‘(2) uniforms or allowances therefor;

‘‘(3) official receptions and representation expenses of the

Board, the Secretary of the Commission, and the Administrator;

‘‘(4) the operation of guide services;

‘‘(5) a residence for the Administrator;

‘‘(6) disbursements by the Administrator for employee and

community projects;

‘‘(7) the procurement of expert and consultant services;

‘‘(8) promotional activities, including the preparation, distribution, or use of any kit, pamphlet, booklet, publication,

radio, television, film, or other media presentation designed

to promote the Panama Canal as a resource of the world

shipping industry; and

‘‘(9) the purchase and transportation to the Republic of

Panama of passenger motor vehicles, including large, heavyduty vehicles.

‘‘(b)(1) There shall be deposited in the Panama Canal Revolving

Fund, on a continuing basis, toll receipts (other than amounts

of toll receipts deposited into the Panama Canal Commission Dissolution Fund under section 1305) and all other receipts of the

Commission. Except as provided in section 1303, no funds may

be obligated or expended by the Commission in any fiscal year

unless such obligation or expenditure has been specifically authorized by law.

Nomenclature.
110 STAT. 2866 PUBLIC LAW 104–201—SEPT. 23, 1996

‘‘(2) No funds may be authorized for the use of the Commission,

or obligated or expended by the Commission in any fiscal year;

in excess of—

‘‘(A) the amount of revenues deposited in the Panama Canal

Revolving Fund and the Panama Canal Commission Dissolution

Fund during such fiscal year; plus

‘‘(B) the amount of revenues deposited in the Panama Canal

Revolving Fund before such fiscal year and remaining unobligated at the beginning of such fiscal year; plus

‘‘(C) the $100,000,000 borrowing authority provided for in

section 1304 of this Act.

Not later than 30 days after the end of each fiscal year, the

Secretary of the Treasury shall report to the Congress the amount

of revenues deposited in the Panama Canal Revolving Fund during

such fiscal year.

‘‘(c) With the approval of the Secretary of the Treasury, the

Commission may deposit amounts in the Panama Canal Revolving

Fund in any Federal Reserve bank, any depositary for public funds,

or such other place and in such manner as the Commission and

the Secretary may agree.

‘‘(d)(1) It is the sense of the Congress that the additional

costs resulting from the implementation of the Panama Canal

Treaty of 1977 and related agreements should be kept to the

absolute minimum level. To this end, the Congress declares appropriated costs of implementation to be borne by the taxpayers over

the life of such Treaty should be kept to a level no greater than

the March 1979 estimate of those costs ($870,700,000) presented

to the Congress by the executive branch during consideration of

this Act by the Congress, less personnel retirement costs of

$205,000,000, which were subtracted and charged to tolls, therefore

resulting in net taxpayer cost of approximately $665,700,000, plus

appropriate adjustments for inflation.

‘‘(2) It is further the sense of the Congress that the actual

costs of implementation be consistent with the obligations of the

United States to operate the Panama Canal safely and efficiently

and keep it secure.’’.

SEC. 3540. PRINTING.

Title I is amended in chapter 3 (22 U.S.C. 3711 et seq.) by

adding at the end of subchapter I the following new section:

‘‘PRINTING

‘‘SEC. 1306. (a) Section 501 of title 44, United States Code,

shall not apply to direct purchase by the Commission for its use

of printing, binding, and blank-book work in the Republic of Panama

when the Commission determines that such direct purchase is

in the best interest of the Government.

‘‘(b) This section shall not affect the Commission’s authority,

under chapter 5 of title 44, United States Code, to operate a

field printing plant.’’.

SEC. 3541. ACCOUNTING POLICIES.

(a) SECTION 1311.—Section 1311(a) (22 U.S.C. 3721(a)) is

amended by striking out ‘‘the Accounting and Auditing Act of 1950

(31 U.S.C. 65 et seq.)’’ in the first sentence and inserting in lieu

thereof ‘‘chapter 91 of title 31, United States Code,’’.

22 USC 3714b.

Reports.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2867

(b) SECTION 1313.—Section 1313 (22 U.S.C. 3723) is amended

by striking out ‘‘the Accounting and Auditing Act of 1950 (31

U.S.C. 65 et seq.)’’ in subsections (a) and (c) and inserting in

lieu thereof ‘‘chapter 91 of title 31, United States Code,’’.

SEC. 3542. INTERAGENCY SERVICES; REIMBURSEMENTS.

Section 1321(e) (22 U.S.C. 3731(e)) is amended by adding at

the end the following sentence:

‘‘Notwithstanding the provisions relating to the availability of adequate schools contained in section 5924(4)(A) of title 5, United

States Code, the Commission shall by regulation determine the

extent to which costs of educational services may be defrayed under

this subsection.’’.

SEC. 3543. POSTAL SERVICE.

Section 1331 (22 U.S.C. 3741) is amended to read as follows:

‘‘POSTAL SERVICE

‘‘SEC. 1331. (a) The Commission shall take possession of and

administer the funds of the Canal Zone postal service and shall

assume its obligations.

‘‘(b) Effective December 1, 1999, neither the Commission nor

the United States Government shall be responsible for the distribution of any accumulated unpaid balances relating to Canal Zone

postal-savings deposits, postal-savings certificates, and postal

money orders.

‘‘(c) Mail addressed to the Canal Zone from or through the

continental United States may be routed by the United States

Postal Service to the military post offices of the United States

Armed Forces in the Republic of Panama. Such military post offices

shall provide the required directory services and shall accept such

mail to the extent permitted under the Panama Canal Treaty

of 1977 and related agreements. The Commission shall furnish

personnel, records, and other services to such military post offices

to assure wherever appropriate the distribution, rerouting, or return

of such mail.’’.

SEC. 3544. INVESTIGATION OF ACCIDENTS OR INJURY GIVING RISE

TO CLAIM.

Section 1417(1) (22 U.S.C. 3777(1)) is amended to read as

follows:

‘‘(1) an investigation of the accident or injury giving rise

to the claim has been completed, which shall include a hearing

by the Board of Local Inspectors of the Commission; and’’.

SEC. 3545. OPERATIONS REGULATIONS.

Section 1801 (22 U.S.C. 3811) is amended by striking

‘‘President’’ and inserting ‘‘Commission’’.

SEC. 3546. MISCELLANEOUS REPEALS.

(a) REPEALS.—The following provisions are repealed:

(1) Section 1605 (22 U.S.C. 3795), relating to interim toll

adjustment.

(2) Section 1701 (22 U.S.C. 3801), relating to the authority

of the President to prescribe certain regulations.

(3) Section 1702 (22 U.S.C. 3802), relating to the authority

of the Panama Canal Commission to prescribe certain

regulations.

Records.

Effective date.

Regulations.
110 STAT. 2868 PUBLIC LAW 104–201—SEPT. 23, 1996

(4) Title II (22 U.S.C. 3841–3852), relating to the Treaty

transition period.

(5) Chapter 1 of title III (22 U.S.C. 3861), relating to

cemeteries.

(6) Section 1246, relating to appliances for certain injured

employees.

(7) Section 1251, relating to leave for jury or witness

service.

(8) Section 1301, relating to Canal Zone Government funds.

(9) Section 1313(c), relating to audits.

(b) CONFORMING AMENDMENTS.—Section 1313 is further

amended by redesignating subsections (d) and (e) as subsections

(c) and (d), respectively.

SEC. 3547. EXEMPTION FROM METRIC CONVERSION ACT OF 1975.

Section 3302 is amended to read as follows:

‘‘EXEMPTION FROM METRIC CONVERSION ACT OF 1975

‘‘SEC. 3302. The Commission is exempt from the provisions

of the Metric Conversion Act of 1975 (15 U.S.C. 205a et seq.).’’.

SEC. 3548. CONFORMING AND CLERICAL AMENDMENTS.

(a) TITLE 5 EMPLOYMENT LAW.—Title 5, United States Code,

is amended as follows:

(1) Section 3401(1) is amended—

(A) by striking out clause (v); and

(B) by redesignating clauses (vi), (vii), and (viii) as

clauses (v), (vi), and (vii), respectively.

(2) Section 5102 is amended—

(A) in subsection (a)(1)—

(i) by striking out clause (vi); and

(ii) by redesignating clauses (vii), (viii), (ix), (x),

and (xi) as clauses (vi), (vii), (viii), (ix), and (x), respectively; and

(B) in subsection (c), by striking out paragraph (12).

(3) Subchapter IV of chapter 53 is amended—

(A) in section 5342(a)(1)—

(i) by striking out subparagraph (G); and

(ii) by redesignating subparagraphs (H), (I), (J),

(K), and (L) as subparagraphs (G), (H), (I), (J), and

(K) respectively;

(B) in section 5343(a)(5), by striking out ‘‘the areas

and installations in the Republic of Panama’’ and all that

follows through ‘‘Panama Canal Act of 1979),’’; and

(C) in section 5348—

(i) by striking out subsection (b);

(ii) by redesignating subsection (c) as subsection

(b); and

(iii) in subsection (a), by striking out ‘‘subsections

(b) and (c)’’ and inserting in lieu thereof ‘‘subsection (b)’’.

(4) Section 5373 is amended—

(A) by striking out paragraph (1); and

(B) by redesignating paragraphs (2), (3), and (4) as

paragraphs (1), (2), and (3) respectively.

(5) Section 5537(c) is amended by striking out ‘‘the United

States District Court for the District of the Canal Zone, the

22 USC 3873.

22 USC 3723.

22 USC 3711.

22 USC 3683.
PUBLIC LAW 104–201—SEPT. 23, 1996 110 STAT. 2869

District Court of Guam, and the District Court of the Virgin

Islands.’’ and inserting in lieu thereof ‘‘the District Court of

Guam and the District Court of the Virgin Islands.’’.

(6) Section 5541(2)(xii) is amended—

(A) by inserting ‘‘or’’ after ‘‘Services Administration,’’; and

(B) by striking out ‘‘, or a vessel employee of the

Panama Canal Commission’’;

(7) Section 5924(3) is amended by striking out the last

sentence.

(8) Section 6322(a) is amended—

(A) by striking out ‘‘Puerto Rico,’’ and inserting in

lieu thereof ‘‘Puerto Rico or’’; and

(B) by striking out ‘‘, or the Republic of Panama’’.

(9) Section 7901(f) is amended to read as follows:

‘‘(f) The health programs conducted by the Tennessee Valley

Authority are not affected by this section.’’.

(b) CROSS REFERENCES IN PANAMA CANAL ACT.—

(1) Section 1211(1)(B) (22 U.S.C. 3651(1)(B)) is amended

by striking out ‘‘section 1212(B)(2)’’ and inserting in lieu thereof

‘‘section 1212(b)’’.

(2) Section 1303 (22 U.S.C. 3713) is amended by striking

out ‘‘section 1302(c)(1)’’ both places it appears and inserting

in lieu thereof ‘‘section 1302(b)(1)’’.

(3) Section 1341(f) (22 U.S.C. 3751(f)) is amended by striking out ‘‘section 1302(c)’’ and inserting in lieu thereof ‘‘section

1302(b)’’.

(c) SECTION HEADINGS.—

(1) The heading of section 3 (22 U.S.C. 3602) is amended

to read as follows:

‘‘DEFINITIONS’’.

(2) The heading of section 1245 (22 U.S.C. 3682) is amended

to read as follows:

‘‘ADMINISTRATION OF CERTAIN DISABILITY BENEFITS’’.

(d) TABLE OF CONTENTS.—The table of contents in section 1

is amended as follows:

(1) The items relating to sections 1101, 1102a, 1102b, and

1313 are amended by inserting ‘‘Sec.’’ before the section number.

(2) The item relating to section 3 is amended to read

as follows:

‘‘Sec. 3. Definitions.’’.

(3) The item relating to section 1104 is amended to read

as follows:

‘‘Sec. 1104. Deputy Administrator.’’.

(4) The items relating to sections 1209 and 1210 are

amended to read as follows:

‘‘Sec. 1209. Applicability of certain benefits.

‘‘Sec. 1210. Travel and transportation.’’.

(5) The items relating to sections 1223 and 1224 are

amended to read as follows:

‘‘Sec. 1223. Central Examining Office.

‘‘Sec. 1224. Applicability of title 5, United States Code.’’.
110 STAT. 2870 PUBLIC LAW 104–201—SEPT. 23, 1996

LEGISLATIVE HISTORY—H.R. 3230 (S. 1745):

HOUSE REPORTS: Nos. 104–563 (Comm. on National Security) and 104–724

(Comm. of Conference).

SENATE REPORTS: Nos. 104–267 (Comm. on Armed Services) and 104–278 (Select

Comm. on Intelligence) both accompanying S. 1745.

CONGRESSIONAL RECORD, Vol. 142 (1996):

May 14, 15, considered and passed House.

June 18–20, 24–28, July 10, S. 1745 considered and passed Senate; H.R.

3230, amended, passed in lieu.

Aug. 1, House agreed to conference report.

Sept. 10, Senate agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):

Sept. 23, Presidential remarks and statement.

Æ

(6) The item relating to section 1245 is amended to read

as follows:

‘‘Sec. 1245. Administration of certain disability benefits.’’.

(7) The item relating to section 3302 is amended to read

as follows:

‘‘Sec. 3302. Exemption from Metric Conversion Act of 1975.’’.

(8) Such table of contents is further amended by inserting

after the item relating to section 1305 the following new item:

‘‘Sec. 1306. Printing.’’.

(9) Such table of contents is further amended—

(A) by striking out the items relating to sections 1214,

1246, 1251, 1301, 1605, 1701, 1702, 2101, 2201, 2202, 2203,

2204, 2205, 2206, 2301, 2401, 2402, and 3101; and

(B) by striking out the items relating to the heading

of title II, the headings of chapters 1, 2, 3, and 4 of

such title, and the heading of chapter 1 of title III.

SEC. 3549. REPEAL OF PANAMA CANAL CODE.

The Panama Canal Code is repealed.

Approved September 23, 1996.