```

[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1762 Placed on Calendar Senate (PCS)]

                                                       Calendar No. 408

104th CONGRESS

  2d Session

                                S. 1762

_______________________________________________________________________

                                 A BILL

     To authorize appropriations for fiscal year 1997 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.

_______________________________________________________________________

                              May 16, 1996

                 Read twice and placed on the calendar

                                                       Calendar No. 408
104th CONGRESS
  2d Session
                                S. 1762

     To authorize appropriations for fiscal year 1997 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 16, 1996

   Mr. Thurmond, from the Committee on Armed Services, reported the 
    following original bill; which was read twice and placed on the 
                                calendar

_______________________________________________________________________

                                 A BILL

 
     To authorize appropriations for fiscal year 1997 for military 
    activities of the Department of Defense, 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 ``Department of Defense Authorization 
Act for Fiscal Year 1997''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Congressional defense committees defined.
                          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 program.
Sec. 109. Defense Nuclear Agency.
                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement of Javelin missile system.
Sec. 112. Army assistance for Chemical Demilitarization Citizens' 
                            Advisory Commissions.
                       Subtitle C--Navy Programs

Sec. 121. EA-6B aircraft reactive jammer program.
Sec. 122. Penguin missile program.
Sec. 123. Nuclear attack submarine programs.
Sec. 124. Arleigh Burke class destroyer program.
                     Subtitle D--Air Force Programs

Sec. 131. Multiyear contracting authority for the C-17 aircraft 
                            program.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for basic research and exploratory development.
Sec. 203. Defense Nuclear Agency.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Space launch modernization.
Sec. 212. Department of Defense Space Architect.
Sec. 213. Space-based infrared system program.
Sec. 214. Research for advanced submarine technology.
Sec. 215. Clementine 2 micro-satellite development program.
Sec. 216. Tactical unmanned aerial vehicle program.
Sec. 217. Defense airborne reconnaissance program.
Sec. 218. Cost analysis of F-22 aircraft program.
Sec. 219. F-22 aircraft program reports.
Sec. 220. Nonlethal weapons and technologies programs.
Sec. 221. Counterproliferation support program.
Sec. 222. Federally funded research and development centers and 
                            university-affiliated research centers.
                 Subtitle C--Ballistic Missile Defense

Sec. 231. United States compliance policy regarding development, 
                            testing, and deployment of theater missile 
                            defense systems.
Sec. 232. Prohibition on use of funds to implement an international 
                            agreement concerning theater missile 
                            defense systems.
Sec. 233. Conversion of ABM treaty to multilateral treaty.
Sec. 234. Funding for upper tier theater missile defense systems.
Sec. 235. Elimination of requirements for certain items to be included 
                            in the annual report on the ballistic 
                            missile defense program.
Sec. 236. ABM treaty defined.
                       Subtitle D--Other Matters

Sec. 241. Live-fire survivability testing of F-22 aircraft.
Sec. 242. Live-fire survivability testing of V-22 aircraft.
             Subtitle E--National Oceanographic Partnership

Sec. 251. Short title.
Sec. 252. 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. Defense Nuclear Agency.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Civil Air Patrol.
Sec. 306. SR-71 contingency reconnaissance force.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 311. Funding for second and third maritime prepositioning ships 
                            out of National Defense Sealift Fund.
Sec. 312. National Defense Sealift Fund.
Sec. 313. Nonlethal weapons capabilities.
Sec. 314. Restriction on Coast Guard funding.
                   Subtitle C--Depot-Level Activities

Sec. 321. Department of Defense performance of core logistics 
                            functions.
Sec. 322. Increase in percentage limitation on contractor performance 
                            of depot-level maintenance and repair 
                            workloads.
Sec. 323. Report on depot-level maintenance and repair.
Sec. 324. Depot-level maintenance and repair workload defined.
Sec. 325. Strategic plan relating to depot-level maintenance and 
                            repair.
Sec. 326. Annual report on competitive procedures.
Sec. 327. Annual risk assessments regarding private performance of 
                            depot-level maintenance work.
Sec. 328. Extension of authority for naval shipyards and aviation 
                            depots to engage in defense-related 
                            production and services.
Sec. 329. Limitation on use of funds for F-18 aircraft depot 
                            maintenance.
Sec. 330. Depot maintenance and repair at facilities closed by BRAC.
                  Subtitle D--Environmental Provisions

Sec. 341. Establishment of separate environmental restoration transfer 
                            accounts for each military department.
Sec. 342. Defense contractors covered by requirement for reports on 
                            contractor reimbursement costs for response 
                            actions.
Sec. 343. 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. 344. Payment of certain stipulated civil penalties.
Sec. 345. Authority to withhold listing of Federal facilities on 
                            National Priorities List.
Sec. 346. Authority to transfer contaminated Federal property before 
                            completion of required remedial actions.
Sec. 347. Clarification of meaning of uncontaminated property for 
                            purposes of transfer by the United States.
Sec. 348. Shipboard solid waste control.
Sec. 349. Cooperative agreements for the management of cultural 
                            resources on military installations.
Sec. 350. Report on withdrawal of public lands at El Centro Naval Air 
                            Facility, California.
Sec. 351. Use of hunting and fishing permit fees collected at closed 
                            military reservations.
                       Subtitle E--Other Matters

Sec. 361. Firefighting and security-guard functions at facilities 
                            leased by the Government.
Sec. 362. Authorized use of recruiting funds.
Sec. 363. Noncompetitive procurement of brand-name commercial items for 
                            resale in commissary stores.
Sec. 364. Administration of midshipmen's store and other Naval Academy 
                            support activities as nonappropriated fund 
                            instrumentalities.
Sec. 365. Assistance to committees involved in inauguration of the 
                            President.
Sec. 366. Department of Defense support for sporting events.
Sec. 367. Renovation of building for Defense Finance and Accounting 
                            Service Center, Fort Benjamin Harrison, 
                            Indiana.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Temporary flexibility relating to permanent end strength 
                            levels.
Sec. 403. Authorized strengths for commissioned officers in grades O-4, 
                            O-5, and O-6.
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.
              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. Extension of authority for temporary promotions for certain 
                            Navy lieutenants with critical skills.
Sec. 502. Exception to baccalaureate degree requirement for appointment 
                            in the Naval Reserve in grades above O-2.
Sec. 503. 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. 504. Chief Warrant Officer promotions.
Sec. 505. Frequency of periodic report on promotion rates of officers 
                            currently or formerly serving in joint duty 
                            assignments.
           Subtitle B--Matters Relating to Reserve Components

Sec. 511. Clarification of definition of active status.
Sec. 512. Amendments to Reserve Officer Personnel Management Act 
                            provisions.
Sec. 513. Repeal of requirement for physical examinations of members of 
                            National Guard called into Federal service.
Sec. 514. Authority for a Reserve on active duty to waive retirement 
                            sanctuary.
Sec. 515. Retirement of Reserves disabled by injury or disease incurred 
                            or aggravated during overnight stay between 
                            inactive duty training periods.
Sec. 516. Reserve credit for participation in the Health Professions 
                            Scholarship and Financial Assistance 
                            Program.
Sec. 517. Report on Guard and Reserve force structure.
                 Subtitle C--Officer Education Programs

Sec. 521. Increased age limit on appointment as a cadet or midshipman 
                            in the Senior Reserve Officers' Training 
                            Corps and the service academies.
Sec. 522. Demonstration project for instruction and support of Army 
                            ROTC units by members of the Army Reserve 
                            and National Guard.
                       Subtitle D--Other Matters

Sec. 531. Retirement at grade to which selected for promotion when a 
                            physical disability is found at any 
                            physical examination.
Sec. 532. Limitations on recall of retired members to active duty.
Sec. 533. Disability coverage for officers granted excess leave for 
                            educational purposes.
Sec. 534. Uniform policy regarding retention of members who are 
                            permanently nonworldwide assignable.
Sec. 535. Authority to extend period for enlistment in regular 
                            component under the delayed entry program.
Sec. 536. Career service reenlistments for members with at least 10 
                            years of service.
Sec. 537. Revisions to missing persons authorities.
Sec. 538. Inapplicability of Soldiers' and Sailors' Civil Relief Act of 
                            1940 to the period of limitations for 
                            filing claims for corrections of military 
                            records.
Sec. 539. Medal of Honor for certain African-American soldiers who 
                            served in World War II.
      Subtitle E--Commissioned Corps of the Public Health Service

Sec. 561. Applicability to Public Health Service of prohibition on 
                            crediting cadet or midshipmen service at 
                            the service academies.
Sec. 562. Exception to grade limitations for Public Health Service 
                            officers assigned to the Department of 
                            Defense.
 Subtitle F--Defense Economic Adjustment, Diversification, Conversion, 
                           and Stabilization

Sec. 571. Authority to expand law enforcement placement program to 
                            include firefighters.
Sec. 572. Troops-to-teachers program improvements.
                Subtitle G--Armed Forces Retirement Home

Sec. 581. References to Armed Forces Retirement Home Act of 1991.
Sec. 582. Acceptance of uncompensated services.
Sec. 583. Disposal of real property.
Sec. 584. Matters concerning personnel.
Sec. 585. Fees for residents.
Sec. 586. Authorization of appropriations.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Military pay raise for fiscal year 1997.
Sec. 602. Rate of cadet and midshipman pay.
Sec. 603. Pay of senior noncommissioned officers while hospitalized.
Sec. 604. Basic allowance for quarters for members assigned to sea 
                            duty.
Sec. 605. Uniform applicability of discretion to deny an election not 
                            to occupy Government quarters.
Sec. 606. Family separation allowance for members separated by military 
                            orders from spouses who are members.
Sec. 607. Waiver of time limitations for claim for pay and allowances.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonuses for reserve forces.
Sec. 612. Extension of certain bonuses and special pay for nurse 
                            officer candidates, registered nurses, and 
                            nurse anesthetists.
Sec. 613. Extension of authority relating to payment of other bonuses 
                            and special pays.
Sec. 614. Increased special pay for dental officers of the Armed 
                            Forces.
Sec. 615. Retention special pay for Public Health Service optometrists.
Sec. 616. Special pay for nonphysician health care providers in the 
                            Public Health Service.
Sec. 617. Foreign language proficiency pay for Public Health Service 
                            and National Oceanic and Atmospheric 
                            Administration officers.
            Subtitle C--Travel and Transportation Allowances

Sec. 621. Round trip travel allowances for shipping motor vehicles at 
                            Government expense.
Sec. 622. Option to store instead of transport a privately owned 
                            vehicle at the expense of the United 
                            States.
Sec. 623. Deferral of travel with travel and transportation allowances 
                            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. Allotment of retired or retainer pay.
Sec. 633. Cost-of-living increases in SBP contributions to be effective 
                            concurrently with payment of related 
                            retired pay cost-of-living increases.
Sec. 634. Annuities for certain military surviving spouses.
Sec. 635. Adjusted annual income limitation applicable to eligibility 
                            for income supplement for certain widows of 
                            members of the uniformed services.
                       Subtitle E--Other Matters

Sec. 641. Reimbursement for adoption expenses incurred in adoptions 
                            through private placements.
Sec. 642. Waiver of recoupment of amounts withheld for tax purposes 
                            from certain separation pay received by 
                            involuntarily separated members and former 
                            members of the Armed Forces.
                   TITLE VII--HEALTH CARE PROVISIONS

Sec. 701. Implementation of requirement for Selected Reserve dental 
                            insurance plan.
Sec. 702. Dental insurance plan for military retirees and certain 
                            dependents.
Sec. 703. Uniform composite health care system software.
Sec. 704. Clarification of applicability of CHAMPUS payment rules to 
                            private CHAMPUS providers for care provided 
                            to enrollees in health care plans of 
                            Uniformed Services Treatment Facilities.
Sec. 705. Enhancement of third-party collection and secondary payer 
                            authorities under CHAMPUS.
Sec. 706. Codification of authority to credit CHAMPUS collections to 
                            program accounts.
Sec. 707. Comptroller General review of health care activities of the 
                            Department of Defense relating to Persian 
                            Gulf illnesses.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

Sec. 801. Procurement technical assistance programs.
Sec. 802. Extension of pilot mentor-protege program.
Sec. 803. Modification of authority to carry out certain prototype 
                            projects.
Sec. 804. Revisions to the program for the assessment of the national 
                            defense technology and industrial base.
Sec. 805. Procurements to be made from small arms industrial base 
                            firms.
Sec. 806. Exception to prohibition on procurement of foreign goods.
Sec. 807. Treatment of Department of Defense cable television franchise 
                            agreements.
Sec. 808. Remedies for reprisals against contractor employee 
                            whistleblowers.
Sec. 809. Implementation of information technology management reform.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                      Subtitle A--General Matters

Sec. 901. Repeal of reorganization of Office of Secretary of Defense.
Sec. 902. Codification of requirements relating to continued operation 
                            of the Uniformed Services University of the 
                            Health Sciences.
Sec. 903. Codification of requirement for United States Army Reserve 
                            Command.
Sec. 904. Transfer of authority to control transportation systems in 
                            time of war.
Sec. 905. Executive oversight of defense human intelligence personnel.
Sec. 906. Coordination of defense intelligence programs and activities.
Sec. 907. Redesignation of Office of Naval Records and History Fund and 
                            correction of related references.
            Subtitle B--National Imagery and Mapping Agency

Sec. 911. Short title.
Sec. 912. Findings.
                         Part I--Establishment

Sec. 921. Establishment, missions, and authority.
Sec. 922. Transfers.
Sec. 923. Compatibility with authority under the National Security Act 
                            of 1947.
Sec. 924. Other personnel management authorities.
Sec. 925. Creditable civilian service for career conditional employees 
                            of the Defense Mapping Agency.
Sec. 926. Saving provisions.
Sec. 927. Definitions.
Sec. 928. Authorization of appropriations.
           Part II--Conforming Amendments and Effective Dates

Sec. 931. Redesignation and repeals.
Sec. 932. References.
Sec. 933. Headings and clerical amendments.
Sec. 934. Effective dates.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authority for obligation of certain unauthorized fiscal year 
                            1996 defense appropriations.
Sec. 1003. Authorization of prior emergency supplemental appropriations 
                            for fiscal year 1996.
Sec. 1004. Use of funds transferred to the Coast Guard.
Sec. 1005. Use of military-to-military contacts funds for professional 
                            military education and training.
Sec. 1006. Payment of certain expenses relating to humanitarian and 
                            civic assistance.
Sec. 1007. Prohibition on expenditure of Department of Defense funds by 
                            officials outside the department.
Sec. 1008. Prohibition on use of funds for Office of Naval Intelligence 
                            representation or related activities.
Sec. 1009. Reimbursement of Department of Defense for costs of disaster 
                            assistance provided outside the United 
                            States.
Sec. 1010. Fisher House Trust Fund for the Navy.
Sec. 1011. Designation and liability of disbursing and certifying 
                            officials for the Coast Guard.
Sec. 1012. Authority to suspend or terminate collection actions against 
                            deceased members of the Coast Guard.
Sec. 1013. Check cashing and exchange transactions with credit unions 
                            outside the United States.
                Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Authority to transfer naval vessels.
Sec. 1022. Transfer of certain obsolete tugboats of the Navy.
Sec. 1023. Repeal of requirement for continuous applicability of 
                            contracts for phased maintenance of AE 
                            class ships.
Sec. 1024. Contract options for LMSR vessels.
                  Subtitle C--Counter-Drug Activities

Sec. 1031. Authority to provide additional support for counter-drug 
                            activities of Mexico.
Sec. 1032. Limitation on defense funding of the National Drug 
                            Intelligence Center.
Sec. 1033. Investigation of the National Drug Intelligence Center.
           Subtitle D--Matters Relating to Foreign Countries

Sec. 1041. Agreements for exchange of defense personnel between the 
                            United States and foreign countries.
Sec. 1042. Authority for reciprocal exchange of personnel between the 
                            United States and foreign countries for 
                            flight training.
Sec. 1043. Extension of counterproliferation authorities.
            Subtitle E--Miscellaneous Reporting Requirements

Sec. 1051. Annual report on emerging operational concepts.
Sec. 1052. Annual joint warfighting science and technology plan.
Sec. 1053. Report on military readiness requirements of the Armed 
                            Forces.
                       Subtitle F--Other Matters

Sec. 1061. Uniform Code of Military Justice amendments.
Sec. 1062. Limitation on retirement or dismantlement of strategic 
                            nuclear delivery systems.
Sec. 1063. Correction of references to Department of Defense 
                            organizations.
Sec. 1064. Authority of certain members of the Armed Forces to perform 
                            notarial or consular acts.
Sec. 1065. Training of members of the uniformed services at non-
                            Government facilities.
Sec. 1066. Third-party liability to United States for tortious 
                            infliction of injury or disease on members 
                            of the uniformed services.
Sec. 1067. Display of State flags at installations and facilities of 
                            the Department of Defense.
Sec. 1068. George C. Marshall European Center for Strategic Security 
                            Studies.
Sec. 1069. 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. 1070. Michael O'Callaghan Federal Hospital, Las Vegas, Nevada.
Sec. 1071. Naming of building at the Uniformed Services University of 
                            the Health Sciences.
           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

         Subtitle A--Personnel Management, Pay, and Allowances

Sec. 1101. Scope of requirement for conversion of military positions to 
                            civilian positions.
Sec. 1102. Retention of civilian employee positions at military 
                            training bases transferred to National 
                            Guard.
Sec. 1103. Clarification of limitation on furnishing clothing or paying 
                            a uniform allowance to enlisted National 
                            Guard technicians.
Sec. 1104. Travel expenses and health care for civilian employees of 
                            the Department of Defense abroad.
Sec. 1105. Travel, transportation, and relocation allowances for 
                            certain former nonappropriated fund 
                            employees.
Sec. 1106. Employment and salary practices applicable to Department of 
                            Defense overseas teachers.
Sec. 1107. Employment and compensation of civilian faculty members at 
                            certain Department of Defense schools.
Sec. 1108. Reimbursement of Department of Defense domestic dependent 
                            school board members for certain expenses.
Sec. 1109. Extension of authority for civilian employees of Department 
                            of Defense to participate voluntarily in 
                            reductions in force.
Sec. 1110. Compensatory time off for overtime work performed by wage-
                            board employees.
Sec. 1111. Liquidation of restored annual leave that remains unused 
                            upon transfer of employee from installation 
                            being closed or realigned.
Sec. 1112. Waiver of requirement for repayment of voluntary separation 
                            incentive pay by former Department of 
                            Defense employees reemployed by the 
                            Government without pay.
Sec. 1113. Federal holiday observance rules for Department of Defense 
                            employees.
Sec. 1114. Revision of certain travel management authorities.
 Subtitle B--Defense Economic Adjustment, Diversification, Conversion, 
                           and Stabilization

Sec. 1121. Pilot programs for defense employees converted to contractor 
                            employees due to privatization at closed 
                            military installations.
Sec. 1122. Troops-to-teachers program improvements applied to civilian 
                            personnel.
      TITLE XII--FEDERAL CHARTER FOR THE FLEET RESERVE ASSOCIATION

Sec. 1201. Recognition and grant of Federal charter.
Sec. 1202. Powers.
Sec. 1203. Purposes.
Sec. 1204. Service of process.
Sec. 1205. Membership.
Sec. 1206. Board of directors.
Sec. 1207. Officers.
Sec. 1208. Restrictions.
Sec. 1209. Liability.
Sec. 1210. Maintenance and inspection of books and records.
Sec. 1211. Audit of financial transactions.
Sec. 1212. Annual report.
Sec. 1213. Reservation of right to amend or repeal charter.
Sec. 1214. Tax-exempt status.
Sec. 1215. Termination.
Sec. 1216. Definition.

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.

                          TITLE I--PROCUREMENT

              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, $1,508,515,000.
            (2) For missiles, $1,160,829,000.
            (3) For weapons and tracked combat vehicles, 
        $1,460,115,000.
            (4) For ammunition, $1,156,728,000.
            (5) For other procurement, $3,298,940,000.

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, $6,911,352,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,513,263,000.
            (3) For shipbuilding and conversion, $6,567,330,000.
            (4) For other procurement, $3,005,040,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 1997 for procurement for the Marine Corps in the amount 
of $816,107,000.

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, $7,003,528,000.
            (2) For missiles, $2,847,177,000.
            (3) For other procurement, $5,880,519,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for Defense-wide procurement in the amount of $1,908,012,000.

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, $224,000,000.
            (2) For the Air National Guard, $305,800,000.
            (3) For the Army Reserve, $90,000,000.
            (4) For the Naval Reserve, $40,000,000.
            (5) For the Air Force Reserve, $40,000,000.
            (6) For the Marine Corps Reserve, $60,000,000.

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 $802,847,000 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 PROGRAM.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for the Department of Defense for procurement for carrying out health 
care programs, projects, and activities of the Department of Defense in 
the total amount of $269,470,000.

SEC. 109. DEFENSE NUCLEAR AGENCY.

    Of the amounts authorized to be appropriated for the Department of 
Defense under section 104, $7,900,000 shall be available for the 
Defense Nuclear Agency.

                       Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT OF 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. 112. ARMY ASSISTANCE FOR CHEMICAL DEMILITARIZATION CITIZENS' 
              ADVISORY COMMISSIONS.

    Subsections (b) and (f) of 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) are each amended by striking out ``Assistant 
Secretary of the Army (Installations, Logistics and Environment)'' and 
inserting in lieu thereof ``Assistant Secretary of the Army (Research, 
Development and Acquisition)''.

                       Subtitle C--Navy Programs

SEC. 121. 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 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. 122. 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.

SEC. 123. NUCLEAR ATTACK SUBMARINE PROGRAMS.

    (a) Amounts Authorized.--(1) Of the amount authorized to be 
appropriated by section 102(a)(3)--
            (A) $804,100,000 shall be available for construction of the 
        third vessel (designated SSN-23) in the Seawolf attack 
        submarine class;
            (B) $296,200,000 shall be 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 shall be 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.
    (2) Funds authorized to be appropriated by section 201(2) for the 
design of the submarine previously designated by the Navy as the New 
Attack Submarine shall be available for obligation and expenditure 
under 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, updated 
design base, and other research and development initiatives related to 
the design of such submarine.
    (b) 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 
        submarines referred to in such subparagraphs; and
            (B) advance construction of such components and other 
        components for such submarines.
    (2) The Secretary of the Navy may enter into a contract or 
contracts under this section with the shipbuilder of the submarine 
referred to in subsection (a)(1)(B) only if the Secretary enters into a 
contract or contracts under this section with the shipbuilder of the 
submarine referred to in subsection (a)(1)(C).
    (c) Competition and Limitations on Obligations.--(1)(A) Of the 
amounts made available pursuant to subsection (a)(1), not more than 
$100,000,000 may be obligated or expended 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 provided for under one or more contracts 
that are entered into after a 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. 209), after fiscal year 2001.
    (2) Of the amounts made available pursuant to subsection (a)(1), 
not more than $100,000,000 may be obligated or expended until the Under 
Secretary of Defense for Acquisition and Technology submits to the 
committees referred to in paragraph (1) a written report that describes 
in detail--
            (A) the oversight activities undertaken by the Under 
        Secretary up to the date of the report pursuant to section 
        131(b)(2)(C) of the National Defense Authorization Act for 
        Fiscal Year 1996 (Public Law 104-106; 110 Stat. 207), and the 
        plans for the future development and improvement of the nuclear 
        attack submarine program of the Navy;
            (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 
        such Act (110 Stat. 210) for the development and demonstration 
        of advanced submarine technologies and a rapid prototype 
        acquisition strategy for both land-based and at-sea subsystem 
        and system demonstrations of such technologies; and
            (C) 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, together with a specific 
        identification of ongoing involvement, and plans for future 
        involvement, in any such program, project, or activity by 
        Electric Boat Division, Newport News Shipbuilding, or both.
    (d) 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.

SEC. 124. 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 in 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 
in 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).
    (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), $750,000,000 is authorized to be appropriated for advance 
procurement for construction for the Arleigh Burke class destroyers 
authorized by subsection (b).
    (b) Authority for Procurement of Twelve Vessels.--The Secretary of 
the Navy is authorized to construct 12 Arleigh Burke class destroyers 
in accordance with subsections (c) and (d).
    (c) Contracts.--(1) The Secretary is authorized, in fiscal year 
1998, to enter into contracts for the construction of three Arleigh 
Burke class destroyers covered by subsection (b), subject to the 
availability of appropriations for such destroyers.
    (2) The Secretary is authorized, in fiscal year 1999, to enter into 
contracts for the construction of three Arleigh Burke class destroyers 
covered by subsection (b), subject to the availability of 
appropriations for such destroyers. The destroyers covered by this 
paragraph are in addition to the destroyers covered by paragraph (1).
    (3) The Secretary is authorized, in fiscal year 2000, to enter into 
contracts for the construction of three Arleigh Burke class destroyers 
covered by subsection (b), subject to the availability of 
appropriations for such destroyers. The destroyers covered by this 
paragraph are in addition to the destroyers covered by paragraphs (1) 
and (2).
    (4) The Secretary is authorized, in fiscal year 2001, to enter into 
contracts for the construction of three Arleigh Burke class destroyers 
covered by subsection (b), subject to the availability of 
appropriations for such destroyers. The destroyers covered by this 
paragraph are in addition to the destroyers covered by paragraphs (1), 
(2), and (3).
    (d) Use of Available Funds.--(1) Subject to paragraph (2), the 
Secretary may take appropriate actions to use for full funding of a 
contract entered into in accordance with subsection (c)--
            (A) any funds that, having been appropriated for 
        shipbuilding and conversion programs of the Navy other than 
        Arleigh Burke class destroyer programs pursuant to the 
        authorization in section 102(a)(3), become excess to the needs 
        of the Navy for such programs by reason of cost savings 
        achieved for such programs;
            (B) any unobligated funds that are available to the 
        Secretary for shipbuilding and conversion for any fiscal year 
        before fiscal year 1997; and
            (C) any funds that are appropriated after the date of the 
        enactment of the Department of Defense Appropriations Act, 
        1997, to complete the full funding of the contract.
    (2) The Secretary may not, in the exercise of authority provided in 
subparagraph (A) or (B) of paragraph (1), obligate funds for a contract 
entered into in accordance with subsection (c) until 30 days after the 
date on which the Secretary submits to the congressional defense 
committees in writing a notification of the intent to obligate the 
funds. The notification shall set forth the source or sources of the 
funds and the amount of the funds from each such source that is to be 
so obligated.

                     Subtitle D--Air Force Programs

SEC. 131. MULTIYEAR CONTRACTING AUTHORITY FOR THE C-17 AIRCRAFT 
              PROGRAM.

    (a) Multiyear Contracts Authorized.--The Secretary of the Air Force 
may, pursuant to section 2306b of title 10, United States Code (except 
as provided in subsection (b)(1)), enter into one or more multiyear 
contracts for the procurement of not more than a total of 80 C-17 
aircraft.
    (b) Contract Period.--(1) Notwithstanding section 2306b(k) of title 
10, United States Code, the period covered by a contract entered into 
on a multiyear basis under the authority of subsection (a) may exceed 
five years, but may not exceed seven years.
    (2) Paragraph (1) shall not be construed as prohibiting the 
Secretary of the Air Force from entering into a multiyear contract for 
a period of less than seven years. In determining to do so, the 
Secretary shall consider whether--
            (A) sufficient funding is provided for in the future-years 
        defense program for procurement, within the shorter period, of 
        the total number of aircraft to be procured (within the number 
        set forth in subsection (a)); and
            (B) the contractor is capable of delivering that total 
        number of aircraft within the shorter period.
    (c) Option To Convert to One-Year Procurements.--Each multiyear 
contract for the procurement of C-17 aircraft authorized by subsection 
(a) shall include a clause that permits the Secretary of the Air 
Force--
            (1) to terminate the contract as of September 30, 1998, 
        without a modification in the price of each aircraft and 
        without incurring any obligation to pay the contractor 
        termination costs; and
            (2) to then enter into follow-on one-year contracts with 
        the contractor for the procurement of C-17 aircraft (within the 
        total number of aircraft authorized under subsection (a)) at a 
        negotiated price that is not to exceed the price that is 
        negotiated before September 30, 1998, for the annual production 
        contract for the C-17 aircraft in lot VIII and subsequent lots.

         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 1997 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $4,958,140,000.
            (2) For the Navy, $9,041,534,000.
            (3) For the Air Force, $14,788,356,000.
            (4) For Defense-wide activities, $9,662,542,000, of which--
                    (A) $252,038,000 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 RESEARCH AND EXPLORATORY DEVELOPMENT.

    (a) Fiscal Year 1997.--Of the amounts authorized to be appropriated 
by section 201, $4,005,787,000 shall be available for basic research 
and exploratory development projects.
    (b) Basic Research and Exploratory Development Defined.--For 
purposes of this section, the term ``basic research and exploratory 
development'' means work funded in program elements for defense 
research and development under Department of Defense category 6.1 or 
6.2.

SEC. 203. DEFENSE NUCLEAR AGENCY.

    Of the amounts authorized to be appropriated for the Department of 
Defense under section 201, $221,330,000 shall be available for the 
Defense Nuclear Agency.

    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 technology 
        program, $25,000,000.
    (b) Limitations.--(1) Of the funds made available for the reusable 
launch vehicle technology 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) None of the funds made available for the Evolved Expendable 
Launch Vehicle program pursuant to subsection (a)(1) may be obligated 
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 technology program pursuant 
to subsection (a)(2).

SEC. 212. DEPARTMENT OF DEFENSE SPACE ARCHITECT.

    (a) Required Program Element.--The Secretary of Defense shall 
include the kinetic energy tactical anti-satellite program of the 
Department of Defense as an element of the space control architecture 
being developed by the Department of Defense Space Architect.
    (b) Limitation on Use of Funds.--None of the funds authorized to be 
appropriated pursuant to this Act, or otherwise made available to the 
Department of Defense for fiscal year 1997, may be obligated or 
expended for the Department of Defense Space Architect until the 
Secretary of Defense certifies to Congress that--
            (1) the Secretary is complying with the requirement in 
        subsection (a);
            (2) funds appropriated for the kinetic energy tactical 
        anti-satellite program for fiscal year 1996 have been obligated 
        in accordance with section 218 of 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
            (3) the Secretary has made available for obligation the 
        funds appropriated for the kinetic energy tactical anti-
        satellite program for fiscal year 1997 in accordance with this 
        Act.

SEC. 213. 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, $192,390,000.
            (2) For Space Segment Low (the Space and Missile Tracking 
        System), $247,221,000.
            (3) For Cobra Brass, $6,930,000.
    (b) Conditional Transfer of Management Oversight.--Not later than 
30 days after the date of the enactment of this Act, the Secretary of 
Defense shall transfer the management oversight responsibilities for 
the Space and Missile Tracking System from the Secretary of the Air 
Force to the Director of the Ballistic Missile Defense Organization.
    (c) Certification.--If, within the 30-day period described in 
subsection (b), the Secretary of Defense submits to Congress a 
certification that the Secretary has established a program baseline for 
the Space-Based Infrared System that satisfies the requirements of 
section 216(a) of Public Law 104-106 (110 Stat. 220), then subsection 
(b) of this section shall cease to be effective on the date on which 
the Secretary submits the certification.

SEC. 214. RESEARCH FOR ADVANCED SUBMARINE TECHNOLOGY.

    Section 132 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 210) is repealed.

SEC. 215. 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.--None of the funds authorized to be appropriated 
pursuant to this Act for the global positioning system (GPS) Block II F 
Satellite system 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 Clementine 2 
        micro-satellite development program in accordance with this 
        section.

SEC. 216. TACTICAL UNMANNED AERIAL VEHICLE PROGRAM.

    No official of the Department of Defense may enter into a contract 
for the procurement of (including advance procurement for) a higher 
number of Dark Star (tier III) low observable, high altitude endurance 
unmanned aerial vehicles than is necessary to complete procurement of a 
total of three such vehicles until flight testing has been completed.

SEC. 217. DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.

    (a) Report Required.--The Secretary of Defense shall submit to 
Congress a report comparing the Predator unmanned aerial vehicle 
program with the Dark Star (tier III) low observable, high altitude 
endurance unmanned aerial vehicle program. The report shall contain the 
following:
            (1) A comparison of the capabilities of the Predator 
        unmanned aerial vehicle with the capabilities of the Dark Star 
        unmanned aerial vehicle.
            (2) A comparison of the costs of the Predator program with 
        the costs of the Dark Star program.
            (3) A recommendation on which program should be funded in 
        the event that funds are authorized to be appropriated, and are 
        appropriated, for only one of the two programs in the future.
    (b) Limitation on Use of Funds Pending Submission of Report.--Funds 
appropriated pursuant to section 104 may not be obligated for any 
contract to be entered into after the date of the enactment of this Act 
for the procurement of Predator unmanned aerial vehicles until the date 
that is 60 days after the date on which the Secretary of Defense 
submits the report required by subsection (a).

SEC. 218. COST ANALYSIS OF F-22 AIRCRAFT PROGRAM.

    (a) Review of Program.--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) Report.--Not later than March 30, 1997, the Secretary shall 
transmit to the congressional defense committees the report prepared 
under paragraph (1), together with the Secretary's views on the matters 
covered by the report.
    (c) 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 by subsection (b).

SEC. 219. F-22 AIRCRAFT PROGRAM REPORTS.

    (a) Annual Report.--(1) At the same time as 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 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 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.
            (3) How, in terms of the exit criteria, the program 
        demonstrated the specific progress justifying the decision.

SEC. 220. 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).
    (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.
    (c) Limitation Pending Release of Funds.--(1) None of the funds 
authorized to be appropriated for the Department of Defense for fiscal 
year 1997 for foreign comparative testing (program element 605130D) may 
be obligated until the funds authorized to be appropriated in section 
219(d) of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 110 Stat. 223) are released for obligation by the 
executive agent referred to in subsection (b).
    (2) Not more than 50 percent of the funds authorized to be 
appropriated for the Department of Defense for fiscal year 1997 for 
NATO research and development (program element 603790D) may be 
obligated until the funds authorized to be appropriated in subsection 
(a) are released for obligation by the executive agent referred to in 
subsection (b).

SEC. 221. COUNTERPROLIFERATION SUPPORT PROGRAM.

    (a) Funding.--Of the funds authorized to be appropriated to the 
Department of Defense under section 201(4), $176,200,000 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 
        Support Program that are to be made available for that program.

SEC. 222. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS AND 
              UNIVERSITY-AFFILIATED RESEARCH 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'') or a 
university-affiliated research center (in this section referred to as a 
``UARC'') only in the case of a center named in the report required by 
subsection (b) and, in the case of such a center, only in an amount not 
in excess of the amount of the proposed funding level set forth for 
that center in such report.
    (b) Report on Allocations for Centers.--(1) Not later than 30 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives a report 
containing--
            (A) the name of each FFRDC and UARC from which work is 
        proposed to be procured for the Department of Defense for 
        fiscal year 1997; and
            (B) for each such center, the proposed funding level and 
        the estimated personnel level for fiscal year 1997.
    (2) The total of the proposed funding levels set forth in the 
report for all FFRDCs and UARCs may not exceed the amount set forth in 
subsection (d).
    (c) Limitation Pending Submission of Report.--Not more than 15 
percent of the funds authorized to be appropriated for the Department 
of Defense for fiscal year 1997 for FFRDCs and UARCs under section 201 
may be obligated to procure work from an FFRDC or UARC until the 
Secretary of Defense submits the report required by subsection (b).
    (d) Funding.--Of the amounts authorized to be appropriated by 
section 201, not more than a total of $1,668,850,000 may be obligated 
to procure services from the FFRDCs and UARCs named in the report 
required by subsection (b).
    (e) Authority To Waive Funding Limitation.--The Secretary of 
Defense may waive the limitation regarding the maximum funding amount 
that applies under subsection (a) to an FFRDC or UARC. Whenever the 
Secretary proposes to make such a waiver, the Secretary shall submit to 
the Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives notice of the 
proposed waiver and the reasons for the waiver. The waiver may then be 
made only after the end of the 60-day period that begins on the date on 
which the notice is submitted to those committees, unless the Secretary 
determines that it is essential to the national security that funds be 
obligated for work at that center in excess of that limitation before 
the end of such period and notifies those committees of that 
determination and the reasons for the determination.

                 Subtitle C--Ballistic Missile Defense

SEC. 231. UNITED STATES COMPLIANCE POLICY REGARDING DEVELOPMENT, 
              TESTING, AND DEPLOYMENT OF THEATER MISSILE DEFENSE 
              SYSTEMS.

    (a) Findings.--Congress makes the following findings:
            (1) Pursuant to article VI(a) of the ABM Treaty, the United 
        States is bound by the following obligations:
                    (A) Not to give missiles, launchers, or radars 
                (other than antiballistic missile interceptor missiles, 
                launchers, or radars) capabilities to counter strategic 
                ballistic missiles or elements of strategic ballistic 
                missiles in the flight trajectory.
                    (B) Not to test missiles, launchers, or radars 
                (other than antiballistic missile interceptor missiles, 
                launchers, or radars) in an antiballistic missile mode.
            (2) It is a sovereign right and obligation of the parties 
        to the ABM Treaty, on a unilateral basis, to establish 
        compliance standards to implement the obligations specified in 
        article VI(a) of the ABM Treaty.
            (3) From October 3, 1972 (the date on which the ABM Treaty 
        entered into force) to the present, the United States has 
        maintained unilateral compliance standards with regard to the 
        obligations specified in Article VI(a) of the ABM Treaty, and 
        those standards have changed over time to accommodate evolving 
        technical, political, and strategic circumstances.
            (4) Pursuant to article XIII of the ABM Treaty, the parties 
        established the Standing Consultative Commission in which to 
        ``consider questions concerning compliance with the obligations 
        assumed and related situations which may be considered''.
    (b) Compliance Policy.--It is the policy of the United States that 
unless a missile defense system, system upgrade, or system component 
(including one that exploits data from space-based or other external 
sensors) is flight tested in an ABM-qualifying flight test (as defined 
in subsection (c)), that system, system upgrade, or system component 
has not, for purposes of the ABM Treaty, been tested in an ABM mode nor 
been given capabilities to counter strategic ballistic missiles and, 
therefore, is not subject to any application, limitation, or obligation 
under the ABM Treaty.
    (c) ABM-Qualifying Flight Test Defined.--For purposes of this 
section, an ABM-qualifying flight test is a flight test against a 
ballistic missile which, in that flight test, exceeds--
            (1) a range of 3,500 kilometers; or
            (2) a velocity of 5 kilometers per second.

SEC. 232. PROHIBITION ON USE OF FUNDS TO IMPLEMENT AN INTERNATIONAL 
              AGREEMENT CONCERNING THEATER MISSILE DEFENSE SYSTEMS.

    (a) Prohibition on Funding.--Funds appropriated or otherwise made 
available to the Department of Defense for fiscal year 1997 may not be 
obligated or expended to implement any agreement, or any understanding 
with respect to interpretation of the ABM Treaty, between the United 
States and any of the independent states of the former Soviet Union 
entered into after January 1, 1995, that--
            (1) would establish a demarcation between theater missile 
        defense systems and anti-ballistic missile defense systems for 
        purposes of the ABM Treaty; or
            (2) would restrict the performance, operations, or 
        deployment of United States theater missile defense systems.
    (b) Exceptions.--Subsection (a) does not apply--
            (1) to the extent otherwise provided in a law that is 
        enacted after the date of the enactment of this Act; or
            (2) to expenditures to implement any agreement or 
        understanding described in subsection (a) that is entered into 
        in the exercise of the treaty-making power under the 
        Constitution.

SEC. 233. CONVERSION OF ABM TREATY TO MULTILATERAL TREATY.

    (a) Fiscal Year 1997.--During fiscal year 1997, the United States 
shall not be bound by any international agreement entered into by the 
President that would substantively modify the ABM Treaty, including any 
agreement that would add one or more countries as signatories to the 
treaty or would otherwise convert the treaty from a bilateral treaty to 
a multilateral treaty, unless the agreement is entered pursuant to the 
treaty making power of the President under the Constitution.
    (b) Relationship to Other Law.--This section shall not be construed 
as superseding section 232 of the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2701) for any 
fiscal year other than fiscal year 1997, including any fiscal year 
after fiscal year 1997.

SEC. 234. FUNDING FOR UPPER TIER THEATER MISSILE DEFENSE SYSTEMS.

    (a) Funding.--Funds authorized to be appropriated under section 
201(4) shall be available for purposes and in amounts as follows:
            (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.
    (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.

SEC. 235. ELIMINATION OF REQUIREMENTS FOR CERTAIN ITEMS TO BE INCLUDED 
              IN THE ANNUAL REPORT ON THE 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), (7), (9), and 
        (10); and
            (2) by redesignating paragraphs (5), (6), and (8), as 
        paragraphs (3), (4), and (5), respectively.

SEC. 236. ABM TREATY DEFINED.

    In 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, signed 
in Moscow on May 26, 1972, with related protocol, signed in Moscow on 
July 3, 1974.

                       Subtitle D--Other Matters

SEC. 241. 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 
full-scale engineering development.
    (b) Reporting Requirement.--(1) 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 of Defense shall 
require that F-22 aircraft components and subsystems be made available 
for any alternative live-fire test program.
    (2) The components and subsystem required by the Secretary to be 
made available for such a program shall be components that--
            (A) could affect the survivability of the F-22 aircraft; 
        and
            (B) are sufficiently large and realistic that meaningful 
        conclusions about the survivability of F-22 aircraft can be 
        drawn from the test results.
    (c) Funding.--Funds available for the F-22 aircraft program may be 
used for carrying out any alternative live-fire testing program for F-
22 aircraft.

SEC. 242. LIVE-FIRE SURVIVABILITY TESTING OF V-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 V-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 V-22 
aircraft would be unreasonably expensive and impractical, the Secretary 
of Defense shall require that a sufficient number of components 
critical to the survivability of the V-22 aircraft be tested in an 
alternative live-fire test program involving realistic threat 
environments that meaningful conclusions about the survivability of V-
22 aircraft can be drawn from the test results.
    (c) Funding.--Funds available for the V-22 aircraft program may be 
used for carrying out any alternative live-fire testing program for V-
22 aircraft.

             Subtitle E--National Oceanographic Partnership

SEC. 251. SHORT TITLE.

    This subtitle may be cited as the ``National Oceanographic 
Partnership Act''.

SEC. 252. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM.

    (a) Program Required.--(1) Subtitle C of title 10, United States 
Code, is amended by inserting 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. Partnership program projects.
``Sec. 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, institutions of higher 
                education, 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.
``Sec. 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 who shall be the chairman 
        of the Council.
            ``(2) The Administrator of the National Oceanic and 
        Atmospheric Administration, who shall be the vice chairman of 
        the Council.
            ``(3) The Director of the National Science Foundation.
            ``(4) The Administrator of the National Aeronautics and 
        Space Administration.
            ``(5) The Commandant of the Coast Guard.
            ``(6) With their consent, the President of the National 
        Academy of Sciences, the President of the National Academy of 
        Engineering, and the President of the Institute of Medicine.
            ``(7) Up to five members appointed by the Chairman from 
        among individuals who will represent the views of ocean 
        industries, institutions of higher education, and State 
        governments.
    ``(c) Term of Office.--The term of office of a member of the 
Council appointed under paragraph (7) 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.
    ``(d) 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. The description also shall include a list 
        of the members of the Ocean Research Partnership Coordinating 
        Group (established pursuant to subsection (e)), the Ocean 
        Research Advisory Panel (established pursuant to subsection 
        (f)), 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 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.
    ``(e) Ocean Research Partnership Coordinating Group.--(1) The 
Council shall establish an Ocean Research Partnership Coordinating 
Group consisting of not more than 10 members appointed by the Council 
from among officers and employees of the Government, persons employed 
in the maritime industry, educators at institutions of higher 
education, and officers and employees of State governments.
    ``(2) The Council shall designate a member of the Coordinating 
Group to serve as Chairman of the group.
    ``(3) The Council shall assign to the Coordinating Group 
responsibilities that the Council considers appropriate. The 
Coordinating Group shall be subject to the authority, direction, and 
control of the Council in the performance the assigned 
responsibilities.
    ``(f) Ocean Research Advisory Panel.--(1) The Council shall 
establish an Ocean Research Advisory Panel consisting of members 
appointed by the Council from among persons eminent in the fields of 
oceanography, ocean sciences, or marine policy (or related fields) who 
are representative of the interests of governments, institutions of 
higher education, and industry in the matters covered by the purposes 
of the National Oceanographic Partnership Program (as set forth in 
section 7901(b) of this title).
    ``(2) The Council shall assign to the Advisory Panel 
responsibilities that the Council consider appropriate. The 
Coordinating Group shall be subject the authority, direction, and 
control of the Council to in the performance of the assigned 
responsibilities.
``Sec. 7903. Partnership program projects
    ``(a) Selection of Partnership Projects.--The National Ocean 
Research Leadership Council shall select the partnership projects that 
are to be considered eligible for support under the National 
Oceanographic Partnership Program. A project partnership may be 
established by any instrument that the Council considers appropriate, 
including a memorandum of understanding, a cooperative research and 
development agreement, and any similar instrument.
    ``(b) Contract and Grant Authority.--(1) The Council may authorize 
one or more of the departments and agencies of the Federal Government 
represented on the Council to enter into contracts or to make grants 
for the support of partnership projects selected under subsection (a).
    ``(2) Funds appropriated or otherwise made available for the 
National Oceanographic Partnership Program may be used for contracts 
entered into or grants awarded under authority provided pursuant to 
paragraph (1).''.
    (2) The table of chapters at the beginning of subtitle C of title 
10, United States Code, and 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 Chairman of the 
National Ocean Research Leadership Council established under section 
7902 of title 10, United States Code, as added by subsection (a)(1), 
shall make the appointments required by subsection (b)(7) of such 
section not later than December 1, 1996.
    (c) First Annual Report of National Ocean Research Leadership 
Council.--The first annual report required by section 7902(d) 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.
    (d) Funding.--Of the funds authorized to be appropriated by section 
201(2), $13,000,000 shall be available for the National Oceanographic 
Partnership Program.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 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, $18,147,623,000.
            (2) For the Navy, $20,298,339,000.
            (3) For the Marine Corps, $2,279,477,000.
            (4) For the Air Force, $17,953,039,000.
            (5) For Defense-wide activities, $9,863,942,000.
            (6) For the Army Reserve, $1,094,436,000.
            (7) For the Naval Reserve, $851,027,000.
            (8) For the Marine Corps Reserve, $110,367,000.
            (9) For the Air Force Reserve, $1,493,553,000.
            (10) For the Army National Guard, $2,218,477,000.
            (11) For the Air National Guard, $2,692,473,000.
            (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 Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $793,824,000.
            (19) For Medical Programs, Defense, $9,375,988,000.
            (20) For Cooperative Threat Reduction programs, 
        $327,900,000.
            (21) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $49,000,000.

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, $1,268,002,000.

SEC. 303. DEFENSE NUCLEAR AGENCY.

    Of the amounts authorized to be appropriated for the Department of 
Defense under section 301(5), $88,083,000 shall be available for the 
Defense Nuclear Agency.

SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.

    (a) Transfer Authority.--To the extent provided in appropriations 
Acts, not more than $150,000,000 is authorized to be transferred from 
the National Defense Stockpile Transaction Fund to operation and 
maintenance accounts for fiscal year 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.

    (a) Funding.--Of the amounts authorized to be appropriated pursuant 
to this Act, $14,526,000 may be made available to the Civil Air Patrol 
Corporation.
    (b) Amount for Search and Rescue Operations.--Of the amount made 
available pursuant to subsection (a), not more than 75 percent of such 
amount may be available for costs other than the costs of search and 
rescue missions.

SEC. 306. 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--Program Requirements, Restrictions, and Limitations

SEC. 311. 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. 312. NATIONAL DEFENSE SEALIFT FUND.

    Section 2218 of title 10, United States Code, is amended--
            (1) in subsection (c)(1)(E), by striking out ``, but only 
        for vessels built in United States shipyards'';
            (2) in subsection (f)--
                    (A) in paragraph (1)--
                            (i) by striking out ``five'' and inserting 
                        in lieu thereof ``ten''; and
                            (ii) by striking out ``(c)(1)'' and 
                        inserting in lieu thereof ``(c)(1)(A)''; and
                    (B) in paragraph (2), by striking out ``(c)(1)'' 
                and inserting in lieu thereof ``(c)(1)(A)''; and
            (3) in subsection (j), by striking out ``(c)(1) (A), (B), 
        (C), and (D)'' and inserting in lieu thereof ``(c)(1) (A), (B), 
        (C), (D), and (E)''.

SEC. 313. NONLETHAL WEAPONS CAPABILITIES.

    Of the amount authorized to be appropriated under 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. 314. RESTRICTION ON COAST GUARD FUNDING.

    No funds are authorized by this Act to be appropriated to the 
Department of Defense for the Coast Guard within budget subfunction 
054.

                   Subtitle C--Depot-Level Activities

SEC. 321. DEPARTMENT OF DEFENSE PERFORMANCE OF CORE LOGISTICS 
              FUNCTIONS.

    Section 2464(a) of title 10, United States Code is amended by 
striking out paragraph (2) and inserting in lieu thereof the following:
    ``(2) The Secretary of Defense shall maintain within the Department 
of Defense those logistics activities and capabilities that are 
necessary to provide the logistics capability described in paragraph 
(1). The logistics activities and capabilities maintained under this 
paragraph shall include all personnel, equipment, and facilities that 
are necessary to maintain and repair the weapon systems and other 
military equipment identified under paragraph (3).
    ``(3) The Secretary of Defense, in consultation with the Joint 
Chiefs of Staff, shall identify the weapon systems and other military 
equipment that it is necessary to maintain and repair within the 
Department of Defense in order to maintain within the department the 
capability described in paragraph (1).
    ``(4) The Secretary shall require that the core logistics functions 
identified pursuant to paragraph (3) be performed in Government-owned, 
Government-operated facilities of the Department of Defense by 
Department of Defense personnel using Department of Defense 
equipment.''.

SEC. 322. INCREASE IN PERCENTAGE LIMITATION ON CONTRACTOR PERFORMANCE 
              OF DEPOT-LEVEL MAINTENANCE AND REPAIR WORKLOADS.

    (a) Fifty Percent Limitation.--Section 2466(a) of title 10, United 
States Code, is amended by striking out ``40 percent'' in the first 
sentence and inserting in lieu thereof ``50 percent''.
    (b) Increase Delayed Pending Receipt of Strategic Plan for the 
Performance of Depot-Level Maintenance and Repair.--(1) Notwithstanding 
the first sentence of section 2466(a) of title 10, United States Code 
(as amended by subsection (a)), until the strategic plan for the 
performance of depot-level maintenance and repair is submitted under 
section 325, not more than 40 percent of the funds made available in a 
fiscal year to a military department or a Defense Agency for depot-
level maintenance and repair workload may be used to contract for the 
performance by non-Federal Government personnel of such workload for 
the military department or the Defense Agency.
    (2) In paragraph (1), the term ``depot-level maintenance and repair 
workload'' has the meaning given such term in section 2466(f) of title 
10, United States Code.

SEC. 323. REPORT ON DEPOT-LEVEL MAINTENANCE AND REPAIR.

    Subsection (e) of section 2466 of title 10, United States Code, is 
amended to read as follows:
    ``(e) Report.--(1) Not later than February 1 of each year, the 
Secretary of Defense shall submit to Congress a report identifying, for 
each military department and Defense Agency--
            ``(A) the percentage of the funds referred to in subsection 
        (a) that were used during the preceding fiscal year for 
        performance of depot-level maintenance and repair workloads by 
        Federal Government personnel; and
            ``(B) the percentage of the funds referred to in subsection 
        (a) that were used during the preceding fiscal year to contract 
        for the performance of depot-level maintenance and repair 
        workloads by non-Federal Government personnel.
    ``(2) Not later than 90 days after the date on which the Secretary 
submits the annual report under paragraph (1), the Comptroller General 
shall submit to the Committees on Armed Services and on Appropriations 
of the Senate and the Committees on National Security and on 
Appropriations of the House of Representatives the Comptroller's views 
on whether the Department of Defense has complied with the requirements 
of subsection (a) for the fiscal year covered by the report.''.

SEC. 324. DEPOT-LEVEL MAINTENANCE AND REPAIR WORKLOAD DEFINED.

    Section 2466 of title 10, United States Code, is amended by adding 
at the end the following:
    ``(f) Depot-Level Maintenance and Repair Workload Defined.--In this 
section, the term `depot-level maintenance and repair workload'--
            ``(1) means material maintenance requiring major overhaul 
        or complete rebuilding of parts, assemblies, or subassemblies, 
        and testing and reclamation of equipment as necessary, 
        including all aspects of software maintenance;
            ``(2) includes those portions of interim contractor 
        support, contractor logistics support, or any similar 
        contractor support for the performance of services described in 
        paragraph (1); and
            ``(3) does not include ship modernization and other repair 
        activities that--
                    ``(A) are funded out of appropriations available to 
                the Department of Defense for procurement; and
                    ``(B) were not considered to be depot-level 
                maintenance and repair workload activities under 
regulations of the Department of Defense in effect on February 10, 
1996.''.

SEC. 325. STRATEGIC PLAN RELATING TO DEPOT-LEVEL MAINTENANCE AND 
              REPAIR.

    (a) Strategic Plan Required.--(1) As soon as possible after 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 strategic plan for the 
performance of depot-level maintenance and repair.
    (2) The strategic plan shall cover the performance of depot-level 
maintenance and repair for the Department of Defense in fiscal years 
1998 through 2007. The plan shall provide for maintaining the 
capability described in section 2464 of title 10, United States Code.
    (b) Additional Matters Covered.--The Secretary of Defense shall 
include in the strategic plan submitted under subsection (a) a detailed 
discussion of the following matters:
            (1) For each military department, as determined after 
        consultation with the Secretary of that military department and 
        the Chairman of the Joint Chiefs of Staff, the depot-level 
        maintenance and repair activities and workloads that are 
        necessary to perform within the Department of Defense in order 
        to maintain the core logistics capability required by section 
        2464 of title 10, United States Code.
            (2) For each military department, as determined after 
        consultation with the Secretary of that military department and 
        the Chairman of the Joint Chiefs of Staff, the depot-level 
        maintenance and repair activities and workloads that the 
        Secretary of Defense plans to perform within the Department of 
        Defense in order to satisfy the requirements of section 2466 of 
        title 10, United States Code.
            (3) For the activities identified pursuant to paragraphs 
        (1) and (2), a discussion of which specific existing weapon 
        systems or other existing equipment, and which specific planned 
        weapon systems or other planned equipment, are weapon systems 
        or equipment for which it is necessary to maintain a core 
        depot-level maintenance and repair capability within the 
        Department of Defense.
            (4) The core capabilities, including sufficient skilled 
        personnel, equipment, and facilities, that--
                    (A) are of sufficient size--
                            (i) to ensure a ready and controlled source 
                        of the technical competencies, and the 
                        maintenance and repair capabilities, that are 
                        necessary to meet the requirements of the 
                        national military strategy and other 
                        requirements for responding to mobilizations 
                        and military contingencies; and
                            (ii) to provide for rapid augmentation in 
                        time of emergency; and
                    (B) are assigned a sufficient workload to ensure 
                cost efficiency and technical proficiency in peacetime.
            (5) The environmental liability issues associated with any 
        projected privatization of the performance of depot-level 
        maintenance and repair, together with detailed projections of 
        the cost to the United States of satisfying environmental 
        liabilities associated with such privatized performance.
            (6) Any significant issues and risks concerning exchange of 
        technical data on depot-level maintenance and repair between 
        the Federal Government and the private sector.
            (7) Any deficiencies in Department of Defense financial 
        systems that hinder effective evaluation of competitions 
        (whether among private-sector sources or among depot-level 
        activities owned and operated by the Department of Defense and 
        private-sector sources), and merit-based selections (among 
        depot-level activities owned and operated by the Department of 
        Defense), for a depot-level maintenance and repair workload, 
        together with plans to correct such deficiencies.
            (8) The type of facility (whether a private sector facility 
        or a Government owned and operated facility) in which depot-
        level maintenance and repair of any new weapon systems that 
        will reach full scale development is to be performed.
            (9) The workloads necessary to maintain Government owned 
        and operated depots at 50 percent, 70 percent, and 85 percent 
        of operating capacity.
            (10) A plan for improving the productivity of the 
        Government owned and operated depot maintenance and repair 
        facilities, together with management plans for changing 
        administrative and missions processes to achieve productivity 
        gains, a discussion of any barriers to achieving desired 
        productivity gains at the depots, and any necessary changes in 
        civilian personnel policies that are necessary to improve 
        productivity.
            (11) The criteria used to make decisions on whether to 
        convert to contractor performance of depot-level maintenance 
        and repair, the officials responsible for making the decision 
        to convert, and any depot-level maintenance and repair 
        workloads that are proposed to be converted to contractor 
        performance before the end of fiscal year 2001.
            (12) A detailed analysis of savings proposed to be achieved 
        by contracting for the performance of depot-level maintenance 
        and repair workload by private sector sources, together with 
        the report on the review of the analysis (and the assumptions 
        underlying the analysis) provided for under subsection (c).
    (c) Independent Review of Savings Analysis.--The Secretary shall 
provide for a public accounting firm (independent of Department of 
Defense influence) to review the analysis referred to in subsection 
(b)(13) and the assumptions underlying the analysis for submission to 
the committees referred to in subsection (a) and to the Comptroller 
General.
    (d) Review By Comptroller General.--(1) At the same time that the 
Secretary of Defense transmits the strategic plan under subsection (a), 
the Secretary shall transmit a copy of the plan (including the report 
of the public accounting firm provided for under subsection (c)) to the 
Comptroller General of the United States and make available to the 
Comptroller General all information used by the Department of Defense 
in preparing the plan and analysis.
    (2) Not later than 60 days after the date on which the Secretary 
submits the strategic plan required by subsection (a), the Comptroller 
General shall transmit to Congress a report containing a detailed 
analysis of the strategic plan.
    (e) Additional Reporting Requirement for Comptroller General.--Not 
later than February 1, 1997, the Comptroller General shall submit to 
the committees referred to in subsection (a) a report on the 
effectiveness of the oversight by the Department of Defense of the 
management of existing contracts with private sector sources of depot-
level maintenance and repair of weapon systems, the adequacy of 
Department of Defense financial and information systems to support 
effective decisions to contract for private sector performance of 
depot-level maintenance and repair workloads that are being or have 
been performed by Government personnel, the status of reengineering 
efforts at depots owned and operated by the United States, and any 
overall management weaknesses within the Department of Defense that 
would hinder effective use of contracting for the performance of depot-
level maintenance and repair.

SEC. 326. ANNUAL REPORT ON COMPETITIVE PROCEDURES.

    (a) Annual Report.--Section 2469 of title 10, United States Code, 
is amended by adding at the end the following:
    ``(d) Annual Report.--Not later than March 31 of each year, the 
Secretary of Defense shall submit to the Committee on Armed Services of 
the Senate and the Committee on National Security of the House of 
Representatives a report describing the competitive procedures used 
during the preceding fiscal year for competitions referred to in 
subsection (a).''.
    (b) First Report.--The first report under subsection (d) of section 
2469 of title 10, United States Code (as added by subsection (a)), 
shall be submitted not later than March 31, 1997.

SEC. 327. ANNUAL RISK ASSESSMENTS REGARDING PRIVATE PERFORMANCE OF 
              DEPOT-LEVEL MAINTENANCE WORK.

    (a) Reports.--Chapter 146 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 2473. Reports on privatization of depot-level maintenance work
    ``(a) Annual Risk Assessments.--(1) Not later than January 1 of 
each year, the Joint Chiefs of Staff shall submit to the Secretary of 
Defense a report on the privatization of the performance of the various 
depot-level maintenance workloads of the Department of Defense.
    ``(2) The report shall include with respect to each depot-level 
maintenance workload the following:
            ``(A) An assessment of the risk to the readiness, 
        sustainability, and technology of the Armed Forces in a full 
        range of anticipated scenarios for peacetime and for wartime 
        of--
                    ``(i) using public entities to perform the 
                workload;
                    ``(ii) using private entities to perform the 
                workload; and
                    ``(iii) using a combination of public entities and 
                private entities to perform the workload.
            ``(B) The recommendation of the Joint Chiefs as to whether 
        public entities, private entities, or a combination of public 
        entities and private entities could perform the workload 
        without jeopardizing military readiness.
    ``(3) Not later than 30 days after receiving the report under 
paragraph (2)(B), the Secretary shall transmit the report to Congress. 
If the Secretary does not concur in the recommendation made by the 
Joint Chiefs pursuant to paragraph (2)(B), the Secretary shall include 
in the report under this paragraph--
            ``(A) the recommendation of the Secretary; and
            ``(B) a justification for the differences between the 
        recommendation of the Joint Chiefs and the recommendation of 
        the Secretary.
    ``(b) Annual Report on Proposed Privatization.--(1) Not later than 
February 28 of each year, the Joint Chiefs of Staff shall submit to the 
Secretary of Defense a report on each depot-level maintenance workload 
of the Department of Defense that the Joint Chiefs believe could be 
converted to performance by private entities during the next fiscal 
year without jeopardizing military readiness.
    ``(2) Not later than 30 days after receiving a report under 
paragraph (1), the Secretary shall transmit the report to Congress. If 
the Secretary does not concur in the proposal of the Joint Chiefs in 
the report, the Secretary shall include in the report under this 
paragraph--
            ``(A) each depot-level maintenance workload of the 
        Department that the Secretary proposes to be performed by 
        private entities during the fiscal year concerned; and
            ``(B) a justification for the differences between the 
        proposal of the Joint Chiefs and the proposal of the 
        Secretary.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``2473. Reports on privatization of depot-level maintenance work.''.

SEC. 328. EXTENSION OF AUTHORITY FOR NAVAL SHIPYARDS AND AVIATION 
              DEPOTS TO ENGAGE IN DEFENSE-RELATED PRODUCTION AND 
              SERVICES.

    (a) Extension of Authority.--Section 1425(e) of the National 
Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510) is 
amended by striking out ``expires on September 30, 1995'' and inserting 
in lieu thereof ``may not be exercised after September 30, 1997''.
    (b) Revival of Expired Authority.--The authority provided in 
section 1425 of the National Defense Authorization Act for Fiscal Year 
1991 may be exercised after September 30, 1995, subject to the 
limitation in subsection (e) of such section as amended by subsection 
(a) of this section.

SEC. 329. LIMITATION ON USE OF FUNDS FOR F-18 AIRCRAFT DEPOT 
              MAINTENANCE.

    Of the amounts authorized to be appropriated by section 301(2), not 
more than $5,000,000 may be used for the performance of depot 
maintenance on F-18 aircraft until 30 days after the date on which the 
Secretary of Defense submits to the congressional defense committees a 
report on aviation depot maintenance. The report shall contain the 
following:
            (1) The results of a competition which the Secretary shall 
        conduct between all Department of Defense aviation depots for 
        selection for the performance of depot maintenance on F-18 
        aircraft.
            (2) An analysis of the total cost of transferring the F-18 
        aircraft depot maintenance workload to an aviation depot not 
        performing such workload as of the date of the enactment of 
        this Act.

SEC. 330. DEPOT MAINTENANCE AND REPAIR AT FACILITIES CLOSED BY BRAC.

    The Secretary may not contract for the performance by a private 
sector source of any of the depot maintenance workload performed as of 
the date of the enactment of this Act at Sacramento Air Logistics 
Center or the San Antonio Air Logistics Center until the Secretary--
            (1) publishes criteria for the evaluation of bids and 
        proposals to perform such workload;
            (2) conducts a competition for the workload between public 
        and private entities;
            (3) pursuant to the competition, determines in accordance 
        with the criteria published under paragraph (1) that an offer 
        submitted by a private sector source to perform the workload is 
        the best value for the United States; and
            (4) submits to Congress the following--
                    (A) a detailed comparison of the cost of the 
                performance of the workload by civilian employees of 
                the Department of Defense with the cost of the 
                performance of the workload by that source; and
                    (B) an analysis which demonstrates that the 
                performance of the workload by that source will provide 
                the best value for the United States over the life of 
                the contract.

                  Subtitle D--Environmental Provisions

SEC. 341. ESTABLISHMENT OF SEPARATE ENVIRONMENTAL RESTORATION TRANSFER 
              ACCOUNTS FOR EACH MILITARY DEPARTMENT.

    (a) Establishment.--(1) Section 2703 of title 10, United States 
Code, is amended to read as follows:
``Sec. 2703. Environmental restoration transfer accounts
    ``(a) Establishment of Transfer Accounts.--
            ``(1) Establishment.--There are hereby established in the 
        Department of Defense the following accounts:
                    ``(A) An account to be known as the `Defense 
                Environmental Restoration Account'.
                    ``(B) An account to be known as the `Army 
                Environmental Restoration Account'.
                    ``(C) An account to be known as the `Navy 
                Environmental Restoration Account'.
                    ``(D) An account to be known as the `Air Force 
                Environmental Restoration Account'.
            ``(2) Treatment of appropriations.--All sums appropriated 
        to the Department of Defense to carry out functions of the 
        Secretary of Defense or of the Secretaries of the military 
        departments relating to environmental restoration under this 
        chapter or under any other provision of law shall be 
        appropriated to the transfer account concerned.
            ``(3) Requirement of authorization of appropriations.--No 
        funds may be appropriated to a transfer account unless such 
        sums have been specifically authorized by law.
            ``(4) Availability of funds in transfer accounts.--Amounts 
        appropriated to a transfer account shall remain available until 
        transferred under subsection (b).
    ``(b) Authority To Transfer to Other Accounts.--Amounts in a 
transfer account shall be available for transfer by the Secretary of 
Defense (in the case of the Defense Environmental Restoration Account) 
or by the Secretary of a military department (in the case of the 
environmental restoration account of that military department) to any 
appropriation account or fund of the Department of Defense (including 
an account or fund of a military department) for obligation from the 
account or fund to which transferred.
    ``(c) Obligation of Transferred Amounts.--Funds transferred under 
subsection (b) may only be obligated or expended from the account or 
fund to which transferred 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.
    ``(d) Budget Reports.--In proposing the budget for any fiscal year 
pursuant to section 1105 of title 31, 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.
    ``(e) 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.
    ``(f) Payments of Fines and Penalties.--None of the funds 
appropriated to the Defense Environmental Restoration Account 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 transfer accounts.''.
    (b) References.--Any reference to the Defense Environmental 
Restoration Account 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 appropriate environmental 
restoration account established under section 2703(a)(1) of title 10, 
United States Code (as amended by subsection (a)(1)).
    (c) Conforming Amendment.--Section 2705(g)(1) of title 10, United 
States Code, is amended by striking out ``the Defense Environmental 
Restoration Account'' 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 Defense Environmental Restoration Account 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. 342. 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. 343. 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. 344. PAYMENT OF CERTAIN STIPULATED CIVIL PENALTIES.

    (a) Authority.--The Secretary of Defense may pay to the Hazardous 
Substance Superfund established under section 9507 of the Internal 
Revenue Code of 1986 (26 U.S.C. 9507) stipulated civil penalties 
assessed under CERCLA in amounts, and using funds, as follows:
            (1) Using funds authorized to be appropriated to the Army 
        Environmental Restoration Account established under section 
        2703(a)(1)(B) of title 10, United States Code, as amended by 
        section 341 of this Act, $34,000 assessed against Fort Riley, 
        Kansas, under CERCLA.
            (2) Using funds authorized to be appropriated to the Navy 
        Environmental Restoration Account established under section 
        2703(a)(1)(C) of that title, as so amended, $30,000 assessed 
        against the Naval Education and Training Center, Newport, Rhode 
        Island, under CERCLA.
            (3) Using funds authorized to be appropriated to the Air 
        Force Environmental Restoration Account established under 
        section 2703(a)(1)(D) of that title, as so amended--
                    (A) $550,000 assessed against the Massachusetts 
                Military Reservation, Massachusetts, under CERCLA, of 
                which $500,000 shall be for the supplemental 
                environmental project for a groundwater modeling 
                project that constitutes a part of the negotiated 
                settlement of a penalty against the reservation; and
                    (B) $10,000 assessed against F.E. Warren Air Force 
                Base, Wyoming, under CERCLA.
            (4) Using funds authorized to be appropriated to the 
        Department of Defense Base Closure Account 1990 by section 
        2406(a)(13) of this Act, $50,000 assessed against Loring Air 
        Force Base, Maine, under CERCLA.
    (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.).

SEC. 345. 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 ``Not later than 18 months after the 
        enactment of the Superfund Amendments and Reauthorization Act 
        of 1986, the Administrator'' and inserting the following:
            ``(1) In general.--The Administrator''; and
            (3) by striking ``Such criteria'' and all that follows 
        through the end of the subsection and inserting 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.--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 shall be an appropriate factor to be taken 
                into consideration for the purposes of section 
                105(a)(8)(A).
            ``(3) Completion.--Evaluation and listing under this 
        subsection shall be completed in accordance with a reasonable 
        schedule established by the Administrator.''.

SEC. 346. AUTHORITY TO TRANSFER CONTAMINATED FEDERAL PROPERTY BEFORE 
              COMPLETION OF REQUIRED REMEDIAL ACTIONS.

    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;
            (2) by striking ``After the last day'' and inserting 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 striking ``For purposes of subparagraph (B)(i)'' and 
        inserting the following:
                    ``(B) Completion of construction.--For purposes of 
                subparagraph (A)(ii)(I)''; and
            (6) by adding at the end the following:
                    ``(C) Deferral.--The Administrator (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) with respect to the property if 
                the Administrator or the Governor, as the case may be, 
                determines that--
                            ``(i) the property is suitable for 
                        transfer; and
                            ``(ii) the contract of sale or other 
                        agreement governing the transfer between the 
                        United States and the transferee of the 
                        property contains assurances that all 
                        appropriate remedial action will be taken with 
                        respect to any releases or threatened releases 
                        at or from the property that occurred or 
                        existed prior to the transfer.''.

SEC. 347. 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 ``stored for one year or 
more, known to have been released,'' and inserting ``known to have been 
released''.

SEC. 348. 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 ``Not later than'' and 
        inserting ``Except as provided in paragraphs (2) and (3), not 
        later than''; and
            (2) by striking paragraphs (2), (3), and (4) and inserting 
        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 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) Compliance with annex v.--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) Definition.--In this subsection, the terms 
        ``Convention'' and ``ship'' have the meanings provided in 
        section 2(a) of the Act to Prevent Pollution from Ships (33 
        U.S.C. 1901(a)).

SEC. 349. COOPERATIVE AGREEMENTS FOR THE MANAGEMENT OF CULTURAL 
              RESOURCES ON MILITARY INSTALLATIONS.

    (a) Authority To Enter Into Agreements.--Chapter 159 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 2694. Cooperative agreements for management of cultural 
              resources on military installations
    ``(a) Authority To Enter Into Agreements.--The Secretary of Defense 
and the Secretaries of the military departments may enter into 
cooperative agreements with States, local governments, and appropriate 
public and private entities in order to provide for the preservation, 
management, maintenance, and rehabilitation of cultural resources on 
military installations.
    ``(b) Inapplicability of Certain Federal Financial Management 
Laws.--A cooperative agreement under subsection (a) shall not be 
treated as a cooperative agreement for purposes of chapter 63 of title 
31.
    ``(c) Limitation on Authority To Carry Out Agreements.--The 
authority of the Secretary of Defense or the Secretary of a military 
department to carry out an agreement entered into under subsection (a) 
shall be subject to the availability of funds for that purpose.
    ``(d) Definition.--For purposes of 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 maintained under section 101(a) of the National Historic 
        Preservation Act (16 U.S.C. 470a(a)).
            ``(2) A cultural item 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 adding at the end the following new item:

``2694. Cooperative agreements for management of cultural resources on 
                            military installations.''.

SEC. 350. REPORT ON WITHDRAWAL OF PUBLIC LANDS AT EL CENTRO NAVAL AIR 
              FACILITY, CALIFORNIA.

    (a) Report.--Not later than March 15, 1997, the Secretary of 
Defense, acting through the Deputy Under Secretary of Defense for 
Environmental Security, shall submit to the congressional defense 
committees a report that assesses the effects of the proposed 
withdrawal of public lands at El Centro Naval Air Facility, California, 
on the operational and training requirements of the Department of 
Defense at that facility.
    (b) Report Elements.--The report under subsection (a) shall--
            (1) describe in detail the operational and training 
        requirements of the Department of Defense at El Centro Naval 
        Air Facility;
            (2) assess the effects of the proposed withdrawal on such 
        operational and training requirements;
            (3) describe the relationship, if any, of the proposed 
        withdrawal to the withdrawal of other public lands under the 
        California Desert Protection Act of 1994 (Public Law 103-433);
            (4) assess the additional responsibilities, if any, of the 
        Navy for land management at the facility as a result of the 
        proposed withdrawal; and
            (5) assess the costs, if any, to the Navy resulting from 
        the proposed withdrawal.

SEC. 351. USE OF HUNTING AND FISHING PERMIT FEES COLLECTED AT CLOSED 
              MILITARY RESERVATIONS.

    Subparagraph (B) of section 101(b)(4) of the Act of September 15, 
1960 (commonly known as the ``Sikes Act''; 16 U.S.C. 670a(b)(4)), is 
amended to read as follows:
                    ``(B) the fees collected under this paragraph--
                            ``(i) shall be expended at the military 
                        reservation with respect to which collected; or
                            ``(ii) if collected with respect to a 
                        military reservation that is closed, shall be 
                        available for expenditure at any other military 
                        reservation for purposes of the protection, 
                        conservation, and management of fish and 
                        wildlife at such reservation.''.

                       Subtitle E--Other Matters

SEC. 361. FIREFIGHTING AND SECURITY-GUARD FUNCTIONS AT FACILITIES 
              LEASED BY THE GOVERNMENT.

    Section 2465(b) of title 10, United States Code, is amended--
            (1) by striking out ``or'' at the end of paragraph (2);
            (2) by striking out the period at the end of paragraph (3) 
        and inserting in lieu thereof ``; or''; and
            (3) by adding at the end the following:
            ``(4) to a contract to be carried out at a private facility 
        at which a Federal Government activity is located pursuant to a 
        lease of the facility to the Government.''.

SEC. 362. AUTHORIZED USE OF RECRUITING FUNDS.

    (a) Authority.--Chapter 31 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 520c. Authorized use of recruiting funds
    ``(a) 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 that are provided in the performance of personnel 
recruiting functions of the armed forces to--
            ``(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) influential persons in communities when assisting the 
        military departments in recruiting efforts;
            ``(4) members of the armed forces and Federal Government 
        employees when attending recruiting events in accordance with a 
        requirement to do so; and
            ``(5) other persons when contributing to recruiting efforts 
        by attending recruiting events.
    ``(b) Annual Report.--Not later than February 1 of each year, 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.--(1) The authority in subsection 
(a) may not be exercised after September 30, 2001.
    ``(2) No report is required under subsection (b) after 2002.''.
    (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. Authorized use of recruiting funds.''.

SEC. 363. 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:
    ``(e) The Secretary of Defense may not, under the exception 
provided in section 2304(c)(5) of this title, use procedures other than 
competitive procedures for 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 commercial item will be sold in commissary stores.''.
    (b) Effect on Existing Contracts.--The amendment made by subsection 
(a) shall not affect the terms, conditions, or duration of any contract 
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. 364. ADMINISTRATION OF MIDSHIPMEN'S STORE AND OTHER NAVAL ACADEMY 
              SUPPORT ACTIVITIES AS NONAPPROPRIATED FUND 
              INSTRUMENTALITIES.

    (a) In General.--(1) Chapter 603 of title 10, United States Code, 
is amended by striking out sections 6970 and 6971 and inserting in lieu 
thereof the following new section:
``Sec. 6970. Midshipmen's store and Naval Academy shops, laundry, and 
              dairy: nonappropriated fund accounts
    ``(a) In General.--Under regulations prescribed by the Secretary of 
the Navy, the Superintendent of the Naval Academy shall administer a 
nonappropriated fund account for each of the Academy activities 
referred to in subsection (b).
    ``(b) Activities.--Subsection (a) applies to the following Academy 
activities:
            ``(1) The midshipmen's store.
            ``(2) The barber shop.
            ``(3) The cobbler shop.
            ``(4) The tailor shop.
            ``(5) The dairy.
            ``(6) The laundry.
    ``(c) Crediting of Revenue.--The Superintendent shall credit to 
each account administered with respect to an activity under subsection 
(a) all revenue received from the activity.''.
    (2) The table of sections at the beginning of such chapter is 
amended by striking out the items relating to sections 6970 and 6971 
and inserting in lieu thereof the following new item:

``6970. Midshipmen's store and Naval Academy shops, laundry, and dairy: 
                            nonappropriated fund accounts.''.
    (b) Employment Status of Employees of Activities.--Section 2105 of 
title 5, United States Code, is amended by striking out subsection (b).

SEC. 365. ASSISTANCE TO COMMITTEES INVOLVED IN INAUGURATION OF THE 
              PRESIDENT.

    (a) In General.--Section 2543 of title 10, United States Code, is 
amended to read to read as follows:
``Sec. 2543. Equipment and services: Presidential inaugural committees
    ``(a) Assistance Authorized.--The Secretary of Defense may provide 
the assistance referred to in subsection (b) to the following 
committees:
            ``(1) An Inaugural Committee established under the first 
        section of the Presidential Inaugural Ceremonies Act (36 U.S.C. 
        721).
            ``(2) A joint committee of the Senate and House of 
        Representatives appointed under section 9 of that Act (36 
        U.S.C. 729).
    ``(b) Assistance.--The following assistance may be provided under 
subsection (a):
            ``(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) An inaugural committee referred to in 
subsection (a)(1) 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.--(1) Property loaned for a presidential 
inauguration under subsection (b)(3) shall be returned within nine days 
after the date of the ceremony inaugurating the President.
    ``(2) An inaugural committee referred to in subsection (a)(1) shall 
give good and sufficient bond for the return in good order and 
condition of property loaned to the committee under subsection (b)(3).
    ``(3) An inaugural committee referred to in subsection (a)(1) 
shall--
            ``(A) indemnify the United States for any loss of, or 
        damage to, property loaned to the committee under subsection 
        (b)(3); and
            ``(B) defray any expense incurred for the delivery, return, 
        rehabilitation, replacement, or operation of the property.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter II of chapter 152 of such title is amended by striking out 
the item relating to section 2543 and inserting in lieu thereof the 
following:

``2543. Equipment and services: Presidential inaugural committees.''.

SEC. 366. DEPARTMENT OF DEFENSE SUPPORT FOR SPORTING EVENTS.

    (a) Local Support.--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 major civilian sporting 
event in support of essential security and safety at such event, but 
only in accordance with an agreement entered into by the Secretary and 
one or more organizations sponsoring the event and only to the extent 
that the essential security and safety needs cannot reasonably be met 
by a source other than the Department of Defense.
    (b) Agreement.--(1) An agreement entered into with an organization 
under this section shall provide for the Department of Defense to be 
reimbursed for amounts expended by the Department of Defense in 
providing support for the event, except that the agreement--
            (A) may not require reimbursement to be made by an 
        organization before the sporting event covered by the agreement 
        is complete and all of the costs under the organization's other 
        contractual obligations relating to the event have been paid; 
        and
            (B) shall include a clause providing that the amount of the 
        reimbursement shall be the lesser of--
                    (i) the amount, if any, of the organization's 
                surplus funds remaining after payment of all of the 
                costs referred to in subparagraph (A); or
                    (ii) the amount expended by the Department in 
                providing support for the event.
    (2) The Secretary of Defense may include in the agreement such 
additional terms and conditions as the Secretary considers appropriate 
in the interests of the Federal Government.
    (3) Paragraph (1) does not apply to support for civilian sporting 
events known as of the date of the enactment of this Act as ``Special 
Olympics'' or ``Paralympics''.
    (c) Inapplicability to Events Already Funded.--This section does 
not apply with respect to a sporting event for which funds have been 
appropriated before the date of the enactment of this Act.
    (d) Surplus Funds Defined.--For the purposes of this section, the 
term ``surplus funds'', with respect to an organization sponsoring a 
sporting event, means the amount equal to the excess of--
            (1) the total amount of the funds received by the 
        organization for the event other than revenues derived from any 
        tax, over
            (2) the total amount expended by the organization for 
        payment of all of the costs under the organization's 
        contractual obligations (other than an agreement entered into 
        with the Secretary of Defense under this section) that relate 
        to the event.

SEC. 367. RENOVATION OF BUILDING FOR DEFENSE FINANCE AND ACCOUNTING 
              SERVICE CENTER, FORT BENJAMIN HARRISON, INDIANA.

    (a) Transfer Authority.--Subject to subsection (b), the Secretary 
of Defense may transfer funds available to the Department of Defense 
for the Defense Finance and Accounting Service for a fiscal year for 
operation and maintenance to the Administrator of General Services for 
paying the costs of planning, design, and renovation of Building One, 
Fort Benjamin Harrison, Indiana, for use as a Defense Finance and 
Accounting Service Center.
    (b) Authority Subject to Authorizations and Appropriations.--To the 
extent provided in appropriations Acts--
            (1) of funds appropriated for fiscal year 1997, $9,000,000 
        may be transferred pursuant to subsection (a); and
            (2) of funds appropriated for fiscal years 1998, 1999, 
        2000, and 2001, funds may transferred pursuant to subsection 
        (a) in such amounts as are authorized to be transferred in an 
        Act enacted after the date of the enactment of this Act.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 1997, as follows:
            (1) The Army, 495,000, of which not more than 80,300 may be 
        commissioned officers.
            (2) The Navy, 407,318, of which not more than 56,165 may be 
        commissioned officers.
            (3) The Marine Corps, 174,000, of which not more than 
        17,978 may be commissioned officers.
            (4) The Air Force, 381,222, of which not more than 74,445 
        may be commissioned officers.

SEC. 402. TEMPORARY FLEXIBILITY RELATING TO PERMANENT END STRENGTH 
              LEVELS.

    Section 691(d) of title 10, United States Code, is amended by 
striking out ``not more than 0.5 percent'' and inserting in lieu 
thereof ``not more than 5 percent''.

SEC. 403. AUTHORIZED STRENGTHS FOR COMMISSIONED OFFICERS IN GRADES O-4, 
              O-5, AND O-6.

    (a) Army, Air Force, and Marine Corps.--The table in section 
523(a)(1) of title 10, United States Code, is amended to read as 
follows:

------------------------------------------------------------------------
                                   Number of officers who may be serving
 ``Total number of commissioned       on active duty in the grade of:   
 officers (excluding officers in ---------------------------------------
     categories specified in                    Lieutenant              
 subsection (b)) on active duty:     Major        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
  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) Navy.--The table in section 523(a)(2) of title 10, United 
States Code, is amended to read as follows:

------------------------------------------------------------------------
                                  Number of officers who may be serving 
 ``Total number of commissioned        on active duty in grade of:      
officers (excluding officers in ----------------------------------------
    categories specified in       Lieutenant                            
subsection (b)) on active duty:    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:
            (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.

    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''.

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, 214,925.
            (3) The Naval Reserve, 96,304.
            (4) The Marine Corps Reserve, 42,000.
            (5) The Air National Guard of the United States, 108,594.
            (6) The Air Force Reserve, 73,281.
            (7) The Coast Guard Reserve, 8,000.
    (b) Waiver Authority.--The Secretary of Defense may vary the end 
strength authorized by subsection (a) by not more than 2 percent.
    (c) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component for a fiscal year 
shall be proportionately reduced by--
            (1) the total authorized strength of units organized to 
        serve as units of the Selected Reserve of such component which 
        are on active duty (other than for training) at the end of the 
        fiscal year, and
            (2) the total number of individual members not in units 
        organized to serve as units of the Selected Reserve of such 
        component who are on active duty (other than for training or 
        for unsatisfactory participation in training) without their 
        consent at the end of the fiscal year.
Whenever such units or such individual members are released from active 
duty during any fiscal year, the end strength prescribed for such 
fiscal year for the Selected Reserve of such reserve component shall be 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

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, 11,475.
            (3) The Naval Reserve, 16,603.
            (4) The Marine Corps Reserve, 2,559.
            (5) The Air National Guard of the United States, 10,378.
            (6) The Air Force Reserve, 655.

              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 
$69,878,430,000. 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. EXTENSION OF AUTHORITY FOR TEMPORARY PROMOTIONS FOR CERTAIN 
              NAVY LIEUTENANTS WITH CRITICAL SKILLS.

    Section 5721(g) of title 10, United States Code, is amended by 
striking out ``September 30, 1996'' and inserting in lieu thereof 
``September 30, 1997''.

SEC. 502. 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. 503. 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. 504. 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. 505. FREQUENCY OF PERIODIC REPORT ON PROMOTION RATES OF OFFICERS 
              CURRENTLY OR FORMERLY SERVING IN JOINT DUTY ASSIGNMENTS.

    Section 662(b) of title 10, United States Code, is amended by 
striking out ``not less often than every six months'' in the 
parenthetical in the first sentence and inserting in lieu thereof ``not 
less often than every twelve months''.

           Subtitle B--Matters Relating to Reserve Components

SEC. 511. 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. 512. 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) and realigning such subparagraph, as 
                so redesignated, flush to the left margin;
                    (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 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. 513. REPEAL OF REQUIREMENT FOR PHYSICAL EXAMINATIONS OF MEMBERS OF 
              NATIONAL GUARD CALLED INTO FEDERAL SERVICE.

    (a) Repeal.--Section 12408 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 1209 is amended by striking out the item relating to section 
12408.

SEC. 514. 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 new subsection:
    ``(b) Waiver.--(1) The Secretary concerned may authorize a member 
described in paragraph (2) to waive the applicability of the limitation 
under subsection (a) to the member for the period of active duty 
described in that paragraph. A member shall exercise any such waiver 
option, if at all, before the period of active duty begins.
    ``(2) The authority provided in paragraph (1) applies to a member 
of a reserve component who is on active duty (other than for training) 
pursuant to an order to active duty under section 12301 of this title 
that specifies a period of less than 180 days.''.

SEC. 515. RETIREMENT OF RESERVES DISABLED BY INJURY OR DISEASE INCURRED 
              OR AGGRAVATED DURING OVERNIGHT STAY BETWEEN INACTIVE DUTY 
              TRAINING PERIODS.

    Paragraph (2) of section 1204 of title 10, United States Code, is 
amended to read as follows:
            ``(2) the disability is 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;''.

SEC. 516. RESERVE CREDIT FOR PARTICIPATION IN THE 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:
    ``(b) Exception.--(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 who is dropped from the program under section 
2123(c) of this title may not receive any credit under paragraph (1) 
for participation in a course of study as a member of the program. Any 
credit awarded for participation in the program before the member is 
dropped shall be rescinded.
    ``(6) 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. 517. REPORT ON GUARD AND RESERVE FORCE STRUCTURE.

    (a) Report.--Not later than March 1, 1997, the Secretary of Defense 
shall submit to Congress a report on the current force structure and 
the projected force structure of the National Guard and the other 
reserve components.
    (b) Report Elements.--The report required by subsection (a) shall 
address the following:
            (1) The role of specific guard and reserve units in the 
        current force structure of the guard and reserves.
            (2) The projected role of specific guard units and reserve 
        units in a major regional contingency.
            (3) Whether or not the current force structure of the guard 
        and reserves is excess to the combat readiness requirements of 
        the Armed Forces and, if so, to what extent.
            (4) The effect of decisions relating to the force structure 
        of the guard and reserves on combat readiness within the tiered 
        structure of combat readiness applied to the Armed Forces.

                 Subtitle C--Officer Education Programs

SEC. 521. INCREASED AGE LIMIT ON APPOINTMENT AS A CADET OR MIDSHIPMAN 
              IN THE SENIOR RESERVE OFFICERS' TRAINING CORPS AND THE 
              SERVICE ACADEMIES.

    (a) Senior Reserve Officers' Training Corps.--Section 2107(a) of 
title 10, United States Code, is amended by striking out ``25 years of 
age'' and inserting in lieu thereof ``27 years of age''.
    (b) United States Military Academy.--Section 4346(a) of title 10, 
United States Code, 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 title 10, 
United States Code, 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 title 10, 
United States Code, is amended by striking out ``twenty-second 
birthday'' and inserting in lieu thereof ``twenty-third birthday''.

SEC. 522. DEMONSTRATION PROJECT FOR INSTRUCTION AND SUPPORT OF ARMY 
              ROTC UNITS BY MEMBERS OF THE ARMY RESERVE AND NATIONAL 
              GUARD.

    (a) In General.--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 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 least one institution.
    (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.--Not later than February 1 in each of 1998, 1999, 
2000, and 2001, the Secretary shall submit to Congress a report 
assessing the activities under the project during the preceding year. 
The report submitted in 2000 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 four years after the date of the 
enactment of this Act.

                       Subtitle D--Other Matters

SEC. 531. RETIREMENT AT GRADE TO WHICH SELECTED FOR PROMOTION WHEN A 
              PHYSICAL DISABILITY IS FOUND AT ANY PHYSICAL EXAMINATION.

    Section 1372(3) of title 10, United States Code, is amended by 
striking out ``his physical examination for promotion'' and inserting 
in lieu thereof ``a physical examination''.

SEC. 532. LIMITATIONS ON RECALL OF RETIRED MEMBERS TO ACTIVE DUTY.

    (a) Number on Active Duty Concurrently.--Subsection (c) of section 
688 of title 10, United States Code, is amended--
            (1) by striking out ``(c) Except in time of war, or of 
        national emergency declared by Congress or the President after 
        November 30, 1980, not'' and inserting in lieu thereof ``(c)(1) 
        Not''; and
            (2) by adding at the end the following:
    ``(2) Not more than 25 officers of any one armed force may be 
serving on active duty concurrently pursuant to orders to active duty 
issued under this section.''.
    (b) Officers Retired on Selective Early Retirement Basis.--Such 
section is amended by adding at the end the following:
    ``(e) 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.''.
    (c) Limitation of Period of Recall Service.--Such section, as 
amended by subsection (b), is further amended by adding at the end the 
following:
    ``(f)(1) A member ordered to active duty under subsection (a) may 
not serve on active duty pursuant to orders under such subsection for 
more than 12 months within the 24 months following the first day of the 
active duty to which ordered under this section.
    ``(2) Paragraph (1) does not apply to the following:
            ``(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.''.
    (d) Waiver for Periods of War or National Emergency.--Such section, 
as amended by subsection (c), is further amended by adding at the end 
the following:
    ``(g)(1) Subsection (c)(1) does not apply in time of war or of 
national emergency declared by Congress or the President after November 
30, 1980.
    ``(2) Subsections (c)(2), (e), and (f) do not apply in time of war 
or of national emergency declared by Congress or the President.''.

SEC. 533. DISABILITY COVERAGE FOR OFFICERS GRANTED EXCESS LEAVE FOR 
              EDUCATIONAL PURPOSES.

    (a) Eligibility for Retirement.--Section 1201 of title 10, United 
States Code, is amended--
            (1) by inserting ``(a) Retirement.--'' before ``Upon a 
        determination'';
            (2) by striking out ``a member of a regular component of 
        the armed forces entitled to basic pay, or 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,'' 
        and inserting in lieu thereof ``a member described in 
        subsection (b)'';
            (3) by inserting after ``incurred while entitled to basic 
        pay'' the following: ``or incurred while absent as described in 
        section 502(b) of title 37 to participate in an educational 
        program (even though not entitled to basic pay by operation of 
        such section)''; and
            (4) by adding at the end the following:
    ``(b) Eligible Members.--This section applies 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) A member of a regular component of the armed forces 
        who is on active duty but is absent as described in section 
        502(b) of title 37 to participate in an educational program.''.
    (b) Eligibility for Placement on Temporary Disability Retirement 
List.--Section 1202 of title 10, United States Code, is amended--
            (1) by inserting ``(a) Temporary Retirement.--'' before 
        ``Upon a determination''; and
            (2) by striking out ``a member of a regular component of 
        the armed forces entitled to basic pay, or 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,'' 
        and inserting in lieu thereof ``a member described in section 
        1201(b) of this title''.
    (c) Eligibility for Separation.--Section 1203 of title 10, United 
States Code, is amended--
            (1) by inserting ``(a) Separation.--'' before ``Upon a 
        determination'';
            (2) by striking out ``a member of a regular component of 
        the armed forces entitled to basic pay, or 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,'' 
        and inserting in lieu thereof ``a member described in section 
        1201(b) of this title''; and
            (3) by inserting after ``incurred while entitled to basic 
        pay'' the following: ``or incurred while absent as described in 
        section 502(b) of title 37 to participate in an educational 
        program (even though not entitled to basic pay by operation of 
        such section)''.
    (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.

SEC. 534. UNIFORM POLICY REGARDING RETENTION OF MEMBERS WHO ARE 
              PERMANENTLY NONWORLDWIDE ASSIGNABLE.

    (a) Policy Required.--Chapter 59 of title 10, United States Code, 
is amended by inserting after section 1176 the following:
``Sec. 1177. Uniform policy regarding retention of members who are 
              permanently nonworldwide assignable
    ``The Secretary of Defense shall prescribe regulations setting 
forth uniform policies and procedures regarding retention of members of 
the Army, Navy, Air Force, and Marine Corps who are permanently 
nonworldwide assignable for medical reasons.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1176 the following:

``1177. Uniform policy regarding retention of members who are 
                            permanently nonworldwide assignable.''.

SEC. 535. AUTHORITY TO EXTEND PERIOD FOR ENLISTMENT IN REGULAR 
              COMPONENT 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 a person for up 
to 180 additional days if the Secretary determines that it is in the 
best interests of the armed force under the Secretary's jurisdiction 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 
        realigning such paragraph, as so designated, flush to the left 
        margin; and
            (3) in paragraph (2), as so designated, by striking out 
        ``the preceding sentence'' and inserting in lieu thereof 
        ``paragraph (1)''.

SEC. 536. 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. 537. 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) by striking out subsection (c) and inserting in lieu 
        thereof the following new subsection (c):
    ``(c) Covered Persons.--Section 1502 of this title applies in the 
case of any member of the armed forces on active duty who becomes 
involuntarily absent as a result of a hostile action, or under 
circumstances suggesting that the involuntary absence is a result of a 
hostile action, and whose status is undetermined or who is unaccounted 
for.''; 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 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 title 10, United States Code, 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) Repeal of Requirements for Counsels for Missing Persons.--(1) 
Section 1503 of title 10, United States Code, is amended--
            (A) by striking out subsection (f); and
            (B) by redesignating subsections (g) through (k) as 
        subsections (f) through (j), respectively.
    (2) Section 1504 of such title is amended--
            (A) by striking out subsection (f); and
            (B) by redesignating subsections (g) through (m) as 
        subsections (f) through (l), respectively.
    (3) Such section 1503 is further amended--
            (A) in subsection (g)(3), as redesignated by paragraph 
        (1)(B) of this subsection, by striking out ``subsection (j)'' 
        and inserting in lieu thereof ``subsection (i)'';
            (B) in subsection (h)(1), as so redesignated, by striking 
        out ``subsection (h)'' and inserting in lieu thereof 
        ``subsection (g)'';
            (C) in subsection (i), as so redesignated--
                    (i) by striking out ``subsection (i)'' in the 
                matter preceding paragraph (1) and inserting in lieu 
                thereof ``subsection (h)''; and
                    (ii) in paragraph (1)(B), by striking out 
                ``subsection (h)'' and inserting in lieu thereof 
                ``subsection (g)''; and
            (D) in subsection (j), as so redesignated, by striking out 
        ``subsection (i)'' and inserting in lieu thereof ``subsection 
        (h)''.
    (4) Such section 1504 of such title is amended--
            (A) in subsection (a), by striking out ``section 1503(i)'' 
        and inserting in lieu thereof ``section 1503(h)'';
            (B) in subsection (e)(1), by striking out ``section 
        1503(h)'' and inserting in lieu thereof ``section 1503(g)'';
            (C) in subsection (f), as redesignated by paragraph (2)(B) 
        of this subsection, by striking out ``subsection (i)'' each 
        place it appears in paragraphs (4)(D) and (5)(B) and inserting 
        in lieu thereof ``subsection (h)'';
            (D) in subsection (g)(3)(A), as so redesignated, by 
        striking out ``and the counsel for the missing person appointed 
        under subsection (f)'';
            (E) in subsection (j), as so redesignated--
                    (i) in paragraph (1)--
                            (I) by striking out ``subsection (j)'' in 
                        the matter preceding subparagraph (A) and 
                        inserting in lieu thereof ``subsection (i)'';
                            (II) by inserting ``and'' at the end of 
                        subparagraph (A);
                            (III) by striking out subparagraph (B); and
                            (IV) by redesignating subparagraph (C) as 
                        subparagraph (B) and in that subparagraph, as 
                        so redesignated, by striking out ``subsection 
                        (g)(5)'' and inserting in lieu thereof 
                        ``subsection (f)(5)''; and
                    (ii) in paragraph (2), by striking out 
                ``subparagraph (C)'' and inserting in lieu thereof 
                ``subparagraph (B)'';
            (F) in subsection (k), as redesignated by paragraph (2)(B) 
        of this subsection, by striking out ``subsection (k)'' in the 
        matter preceding paragraph (1) and inserting in lieu thereof 
        ``subsection (j)''; and
            (G) in subsection (l), as so redesignated, by striking out 
        ``subsection (k)'' and inserting in lieu thereof ``subsection 
        (l)''.
    (5) Section 1505(c) of such title is amended--
            (A) in paragraph (2), by striking out ``(A) the designated 
        missing person's counsel for that person, and (B)''; and
            (B) in paragraph (3), by striking out ``, with the advice'' 
        and all that follows through ``paragraph (2),''.
    (6) Section 1509(a) of such title is amended by striking out 
``section 1504(g)'' and inserting in lieu thereof ``section 1504(f)''.
    (d) Frequency of Subsequent Reviews.--Subsection (b) of section 
1505 of title 10, United States Code, 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 may result in a 
change of status of the person. The Secretary concerned shall appoint a 
board to conduct such inquiries.''.
    (e) Repeal of Statutory Penalties for Wrongful Withholding of 
Information.--Section 1506 of title 10, United States Code, is 
amended--
            (1) by striking out subsection (e); and
            (2) by redesignating subsection (f) as subsection (e).
    (f) Information To Accompany Recommendation of Status of Death.--
Section 1507(b) of title 10, United States Code, is amended by striking 
out paragraphs (3) and (4).
    (g) Repeal of Right of Judicial Review.--Section 1508 of title 10, 
United States Code, is repealed.
    (h) Scope of Preenactment Review.--(1) Section 1509 of title 10, 
United States Code, is amended--
            (A) in subsection (b)--
                    (i) by striking out paragraph (1); and
                    (ii) by redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively;
            (B) by striking out subsection (c);
            (C) by redesignating subsection (d) as subsection (c); and
            (D) in subsection (c), as so redesignated--
                    (i) by striking out paragraph (1); and
                    (ii) by redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively.
    (2) The section heading of such section is amended by striking out 
``, special interest cases''.
    (i) Clerical Amendments.--The table of sections at the beginning of 
chapter 76 of title 10, United States Code, is amended--
            (1) in the item relating to section 1509, by striking out 
        ``, special interest cases''; and
            (2) by striking out the item relating to section 1509.

SEC. 538. INAPPLICABILITY OF SOLDIERS' AND SAILORS' CIVIL RELIEF ACT OF 
              1940 TO THE PERIOD OF LIMITATIONS FOR FILING CLAIMS FOR 
              CORRECTIONS OF MILITARY RECORDS.

    (a) Extension of Period.--Section 1552(b) of title 10, United 
States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2) Notwithstanding the provisions of section 205 of the 
Soldiers' and Sailors' Civil Relief Act of 1940 (50 U.S.C. App. 525), 
and any other provision of law, the three-year period for filing a 
request for correction of records is not extended by reason of military 
service. However, in determining under paragraph (1) whether it is in 
the interest of justice to excuse a failure timely to file a request 
for correction, the board shall consider the claimant's military 
service and its effect on the claimant's ability to file a claim.''.
    (b) Effective Date.--Paragraph (2) of section 1552(b) of such 
title, as added by subsection (a), shall take effect three years after 
the date of the enactment of this Act.

SEC. 539. MEDAL OF HONOR FOR CERTAIN AFRICAN-AMERICAN SOLDIERS WHO 
              SERVED IN 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 
each person identified in subsection (b), each such person having 
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) Applicability.--The authority in this section applies with 
respect to the following persons:
            (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, 12th 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.

      Subtitle E--Commissioned Corps of the Public Health Service

SEC. 561. APPLICABILITY TO PUBLIC HEALTH SERVICE OF PROHIBITION ON 
              CREDITING CADET OR MIDSHIPMEN SERVICE AT THE SERVICE 
              ACADEMIES.

    Section 971(b) of title 10, United States Code, is amended--
            (1) in subsection (a), by inserting before the period at 
        the end the following: ``or an officer in the Commissioned 
        Corps of the Public Health Service''; and
            (2) in subsection (b)--
                    (A) by striking out ``and'' at the end of paragraph 
                (2);
                    (B) by striking out the period at the end of 
                paragraph (3) and inserting in lieu thereof ``; and''; 
                and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) no officer in the Commissioned Corps of the Public 
        Health Service may be credited with service as a midshipman at 
        the United States Naval Academy or as a cadet at the United 
        States Military Academy, United States Air Force Academy, or 
        United States Coast Guard Academy.''.

SEC. 562. EXCEPTION TO GRADE 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 et 
seq.) is amended by adding at the end thereof the following new 
subsection:
    ``(f) Exception to Grade Limitations for Officers Assigned to 
Department of Defense.--In computing the maximum number of commissioned 
officers of the Public Health Service authorized by law to hold a grade 
which corresponds to the grade of captain, major, lieutenant colonel, 
or colonel, there may be excluded from such computation officers who 
hold such a grade while the officers are assigned to duty in the 
Department of Defense.''.

 Subtitle F--Defense Economic Adjustment, Diversification, Conversion, 
                           and Stabilization

SEC. 571. 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), by striking out the first sentence.

SEC. 572. TROOPS-TO-TEACHERS PROGRAM IMPROVEMENTS.

    (a) Separated Members of the Armed Forces.--(1) Subsection (a) of 
section 1151 of title 10, United States Code, is amended by striking 
out ``may establish'' and inserting in lieu thereof ``shall 
establish''.
    (2) Such section is further 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''.
    (3) 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)''.
    (4) 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) Savings Provision.--The amendments made by this section do not 
effect obligations under agreements entered into in accordance with 
section 1151 of title 10, United States Code, before the date of the 
enactment of this Act.

                Subtitle G--Armed Forces Retirement Home

SEC. 581. REFERENCES TO ARMED FORCES RETIREMENT HOME ACT OF 1991.

    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 Armed 
Forces Retirement Home Act of 1991 (title XV of Public Law 101-510; 24 
U.S.C. 401 et seq.).

SEC. 582. ACCEPTANCE OF UNCOMPENSATED SERVICES.

    (a) Authority.--Part A is amended by adding at the end the 
following:

``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:
            ``(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 work-related 
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) (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. 583. DISPOSAL OF REAL PROPERTY.

    (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, but subject to subsection (d), the 
Retirement Home Board may, by sale or otherwise, convey all right, 
title, and interest of the United States in a parcel of real property, 
including improvements thereof, 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 Retirement Home 
may determine--
            (1) the manner for the disposal of the real property under 
        subsection (a); and
            (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 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 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.

SEC. 584. MATTERS CONCERNING PERSONNEL.

    (a) Terms of Appointment to Governing Boards.--Section 1515(e) (24 
U.S.C. 415(e)) is amended--
            (1) in paragraph (1), by striking out ``subsection (f)'' 
        and inserting in lieu thereof ``paragraph (2)'';
            (2) by redesignating paragraph (2) as paragraph (4); and
            (3) by adding after paragraph (1) the following new 
        paragraphs:
    ``(2)(A) In the case of a member of a board who is appointed or 
designated under subsection (b) or (c) on the basis of a particular 
status described in a paragraph under that subsection, the appointment 
or designation of that member terminates on the date on which the 
member ceases to hold that status. The preceding sentence applies only 
to members of the Armed Forces on active duty and employees of the 
United States.
    ``(B) Paragraph (1) does not apply with respect to an appointment 
or designation of a member of a board for a term of less than five 
years that is made in accordance with subsection (f).
    ``(3) A member of the Retirement Home Board and a member of a Local 
Board may be reappointed for one consecutive term by the Chairman of 
that board.''.
    (b) Dual Compensation.--(1) Section 1517 (24 U.S.C. 417) is 
amended--
            (A) by redesignating subsection (f) as subsection (g); and
            (B) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Dual Compensation.--(1) The Retirement Home Board may waive 
the application of section 5532 of title 5, United States Code, to the 
Director of an establishment of the Retirement Home or any employee of 
the Retirement Home (to the extent that such section would otherwise 
apply to the Director or employee by reason of the employment as 
Director or employee). The Chairman of the Board shall notify the 
Secretary of the Treasury of any waiver exercised under the preceding 
sentence and the effective date of the waiver.
    ``(2) If the application of section 5532 of title 5, United States 
Code, to a Director or employee is waived under paragraph (1), the rate 
of pay payable out of the Retirement Home Trust Fund for the Director 
or employee shall be the amount equal to the excess, if any, of the 
periodic rate of pay fixed for the position of the Director or employee 
over the amount by which the retired or retainer pay payable to the 
Director or employee would have been reduced (computed on the basis of 
that periodic rate of pay for that position) if section 5532 of title 
5, United States Code, had not been waived.
    ``(3)(A) In the case of a Director or employee paid at a rate of 
pay that is reduced under paragraph (2), the amounts deducted and 
withheld from pay for purposes of chapter 81, subchapter III of chapter 
83, chapter 84, chapter 87, or chapter 89 of title 5, United States 
Code, all agency contributions required under such provisions of law, 
the maximum amount of contributions that may be made to the Thrift 
Saving Fund under subchapter III of chapter 84 of title 5, United 
States Code, the rate of disability compensation payable under 
subchapter I of chapter 81 of such title, the levels of life insurance 
coverage provided under chapter 87 of such title, and the amounts of 
annuities under subchapter III of chapter 83 of such title and 
subchapter II of chapter 84 of such title shall be computed as if the 
Director or employee were paid the full rate of pay fixed for the 
position of the Director or employee for the period for which the 
Director was paid at the reduced rate of pay under that paragraph.
    ``(B) If the amount payable to a Director or employee under 
paragraph (2) is less than the total amount required to be deducted and 
withheld from the pay of the Director or employee under a provision of 
law referred to in subparagraph (A), the amount of the deficiency shall 
be paid by the Director or employee. The participation or benefits 
available to a Director or employee who fails to pay a deficiency 
promptly shall be restricted in accordance with regulations which the 
Director of the Office of Personnel Management shall prescribe.
    ``(4) In this section, the term `retired or retainer pay' has the 
meaning given such term in section 5531 of title 5, United States 
Code.''.
    (2) Section 1516(f) (24 U.S.C. 416(f)) is amended--
            (A) by inserting ``(1)'' after ``(f) Annual Report.--''; 
        and
            (B) by adding at the end the following:
    ``(2) In addition to other matters covered by the annual report for 
a fiscal year, the annual report shall identify each Director or 
employee, if any, whose pay was reduced for any period during that 
fiscal year pursuant to an exercise of the waiver authority under 
section 1517(f), and shall include a discussion that demonstrates that 
the unreduced rate of pay established for the position of that Director 
or employee is comparable to the prevailing rates of pay provided for 
personnel in the retirement home industry who perform functions similar 
to those performed by the Director or employee.''.
    (3) Subsection (f) of section 1517 (as added by paragraph (1)(B)) 
and subsection (f)(2) of section 1516 (as added by paragraph (2)(B)) 
shall apply with respect to pay periods beginning on or after January 
1, 1997.

SEC. 585. FEES FOR RESIDENTS.

    (a) One-Year Delay in Implementation of New Fee Structure.--(1) 
Subsection (d)(2) of section 371 of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2735; 24 U.S.C. 
414 note) is amended by striking out ``October 1, 1997'' and inserting 
in lieu thereof ``October 1, 1998''.
    (2) Subsection (b)(2)(B) of such section is amended by striking out 
``1998'', ``1999'', and ``2000'' in paragraphs (1) and (2) of the 
subsection (d) that is set forth in such subsection (b)(2)(B) as an 
amendment to section 1514 of the Armed Forces Retirement Home Act of 
1991 and inserting in lieu thereof ``1999'', ``2000'', and ``2001'', 
respectively.
    (b) Report on Funding the Armed Forces Retirement Home.--(1) Not 
later than March 3, 1997, the Secretary of Defense shall submit to 
Congress a report on meeting the funding needs of the Armed Forces 
Retirement Home in a manner that is fair and equitable to the residents 
and to the members of the Armed Forces who provide required monthly 
contributions for the home.
    (2) The report shall include the following:
            (A) The increment between levels of income of a resident of 
        the Armed Forces Retirement Home that is appropriate for 
        applying the next higher monthly fee to a resident under a 
        monthly fee structure for the residents of the home.
            (B) The categories of income and disability payments that 
        should generally be considered as monthly income for the 
        purpose of determining the fee applicable to a resident and the 
        conditions under which each such category should be considered 
        as monthly income for such purpose.
            (C) The degree of flexibility that should be provided the 
        Armed Forces Retirement Home Board for the setting of fees for 
        residents.
            (D) A discussion of whether the Armed Forces Retirement 
        Home Board has and should have authority to vary the fee 
        charged a resident under exceptional circumstances, together 
        with any recommended legislation regarding such an authority.
            (E) A discussion of how to ensure fairness and equitable 
        treatment of residents and of warrant officers and enlisted 
        members of the Armed Forces in meeting the funding needs of the 
        Armed Forces Retirement Home.
            (F) The advisability of exercising existing authority to 
        increase the amount deducted from the pay of warrant officers 
        and enlisted personnel for the Armed Forces Retirement Home 
        under section 1007(i) of title 37, United States Code.
            (G) Options for ways to meet the funding needs of the Armed 
        Forces Retirement Home without increasing the amount deducted 
        from pay under section 1007(i) of title 37, United States Code.
            (H) Any other matters that the Secretary of Defense, after 
        the consultation required by paragraph (3), considers 
        appropriate regarding funding of the Armed Forces Retirement 
        Home.
    (3) The Secretary shall consult the Armed Forces Retirement Home 
Board and the secretaries of the military departments in preparing the 
report under this subsection.

SEC. 586. AUTHORIZATION OF APPROPRIATIONS.

    There is hereby authorized to be appropriated for fiscal year 1997 
from the Armed Forces Retirement Home Trust Fund the sum of $57,345,000 
for the operation of the Armed Forces Retirement Home.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     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 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.
    (c) Increase in BAQ.--Effective January 1, 1997, the rates of basic 
allowance for quarters of members of the uniformed services are 
increased by 4.0 percent.

SEC. 602. 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) In General.--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 senior enlisted member of an armed force shall continue to 
be entitled to the rate of basic pay authorized for the senior enlisted 
member of that armed force while the member is hospitalized, beginning 
on the day of the hospitalization and ending on the day the member is 
discharged from the hospital, but not for more than 180 days.''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 210. Pay of the senior noncommissioned officer of an armed force 
              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 10, United States Code, is amended 
to read as follows:

``210. Pay of the senior noncommissioned officer of an armed force 
                            during terminal leave and while 
                            hospitalized.''.

SEC. 604. BASIC ALLOWANCE FOR QUARTERS FOR MEMBERS ASSIGNED TO SEA 
              DUTY.

    (a) Entitlement of Single Members Above Grade E-5.--Section 
403(c)(2) of title 37, United States Code, is amended by striking out 
the second sentence.
    (b) Entitlement of Certain Single Members in Grade E-5.--Section 
403(c)(2) of such title, as amended by subsection (a), is further 
amended by adding at the end the following: ``However, the Secretary 
concerned may authorize payment of the basic allowance for quarters to 
members of a uniformed service without dependents who are in pay grade 
E-5, are on sea duty, and are not provided Government quarters 
ashore.''.
    (c) Entitlement When Both Spouses in Grades Below Grade E-6 Are 
Assigned to Sea Duty.--Section 403(c)(2) of such title, as amended by 
subsections (a) and (b), is further amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following: ``Notwithstanding 
        section 421 of this title, two members of the uniformed 
        services in pay grades below E-6 who are married to each other, 
        have no dependent other than the spouse, and are simultaneously 
        assigned to sea duty on ships are jointly entitled to one basic 
        allowance for quarters at the rate provided for members with 
        dependents in the highest pay grade in which either spouse is 
        serving.''.
    (d) Effective Date.--The amendments made by subsections (a), (b), 
and (c) shall take effect on October 1, 1996.

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. FAMILY SEPARATION ALLOWANCE FOR MEMBERS SEPARATED BY MILITARY 
              ORDERS FROM SPOUSES WHO ARE MEMBERS.

    Section 427(b) of title 37, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by striking out ``or'' at the end of 
                subparagraph (B);
                    (B) by striking out the period at the end of 
                subparagraph (C) and inserting in lieu thereof ``; 
                or''; and
                    (C) by adding at the end the following:
            ``(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.''; and
            (2) by adding at the end the following:
    ``(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. 607. 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:
    ``(e)(1) Upon the request of the Secretary concerned (as defined in 
section 101 of title 37), 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. EXTENSION OF CERTAIN BONUSES FOR RESERVE FORCES.

    (a) Special Pay for Critically Short Wartime Health Specialists in 
the Selected Reserves.--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 of the Selected Reserve 
Assigned to Certain High Priority Units.--Section 308d(c) of title 37, 
United States Code, is amended by striking out ``September 30, 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. EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY FOR NURSE 
              OFFICER CANDIDATES, REGISTERED NURSES, AND NURSE 
              ANESTHETISTS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking out ``September 
30, 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''.

SEC. 613. EXTENSION OF AUTHORITY RELATING TO PAYMENT OF OTHER BONUSES 
              AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking out ``September 30, 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. INCREASED SPECIAL PAY FOR DENTAL OFFICERS OF THE ARMED 
              FORCES.

    (a) Increased Rates.--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 redesignating subparagraphs (A), 
        (B), and (C) as subparagraphs (B), (C), and (D), respectively, 
        and by inserting before subparagraph (B), as so redesignated, 
        the following new subparagraph (A):
            ``(A) $4,000 per year, if the officer has less than three 
        years of creditable service.''; and
            (3) in paragraph (5)--
                    (A) in subparagraph (A)--
                            (i) by striking out ``$2,000'' and 
                        inserting in lieu thereof ``$2,500''; and
                            (ii) by striking out ``12 years'' and 
                        inserting in lieu thereof ``10 years'';
                    (B) in subparagraph (B)--
                            (i) by striking out ``$3,000'' and 
                        inserting in lieu thereof ``$3,500''; and
                            (ii) by striking out ``12 but less than 14 
                        years'' and inserting in lieu thereof ``10 but 
                        less than 12 years''; and
                    (C) in subparagraph (C), by striking out ``14 or 
                more years'' and inserting in lieu thereof ``12 or more 
                years''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1996.

SEC. 615. RETENTION SPECIAL PAY FOR PUBLIC HEALTH SERVICE 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''.

SEC. 616. SPECIAL PAY FOR NONPHYSICIAN HEALTH CARE PROVIDERS IN THE 
              PUBLIC HEALTH SERVICE.

    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''.

SEC. 617. FOREIGN LANGUAGE PROFICIENCY PAY FOR PUBLIC HEALTH SERVICE 
              AND NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION 
              OFFICERS.

    (a) Eligibility.--Section 316 of title 37, United States Code, is 
amended in subsection (a)--
            (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 Secretary's jurisdiction,''; and
            (2) by inserting before the period at the end ``, 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 subsections (a) and (b) 
shall take effect on October 1, 1996, and apply with respect to months 
beginning on or after such date.

            Subtitle C--Travel and Transportation Allowances

SEC. 621. ROUND TRIP TRAVEL ALLOWANCES FOR SHIPPING MOTOR VEHICLES AT 
              GOVERNMENT EXPENSE.

    (a) In General.--Section 406(b)(1)(B) of title 37, United States 
Code, is amended as follows--
            (1) in clause (i)(I), by inserting ``, including return 
        travel to the old duty station,'' after ``nearest the old duty 
        station''; and
            (2) in clause (ii), by inserting ``, including travel from 
        the new duty station to the port of debarkation to pick up the 
        vehicle'' after ``to the new duty station''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on April 1, 1997.

SEC. 622. OPTION TO STORE INSTEAD OF TRANSPORT A PRIVATELY OWNED 
              VEHICLE AT THE EXPENSE OF THE UNITED STATES.

    (a) In General.--Section 2634 of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (b) as subsection (g);
            (2) by transferring subsection (g), as so redesignated, to 
        the end of such section; and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) When a member is ordered to make a change of permanent 
station to a foreign country and the member is authorized under 
subsection (a) to have a vehicle transported under that subsection, the 
Secretary may authorize the member to store the vehicle (instead of 
having it transported) if restrictions imposed by the foreign country 
or the United States preclude entry of the vehicle into that country or 
require extensive modification of the vehicle as a condition for entry 
of the vehicle into the country. The cost of the storage of the 
vehicle, and costs associated with the delivery of the vehicle for 
storage and removal of the vehicle for delivery from storage shall be 
paid by the United States. Costs paid under this subsection may not 
exceed reasonable amounts, as determined under regulations prescribed 
by the Secretary of Defense (and the Secretary of Transportation with 
respect to the Coast Guard when it is not operating as a service in the 
Navy).''.
    (b) Unaccompanied Tours.--Subsection (h)(1)(B) of section 406 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 that 
        is owned by the member (or a dependent of a member) and is for 
        his dependent's personal use to that location by means of 
        transportation authorized under section 2634 of title 10, or 
        authorize storage of such motor vehicle if the storage of the 
        motor vehicle is otherwise authorized under that section.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1996.

SEC. 623. DEFERRAL OF TRAVEL WITH TRAVEL AND TRANSPORTATION ALLOWANCES 
              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: ``A member may defer the travel for one additional 
year if, due to participation in a contingency operation, the member is 
unable to commence the travel within the one-year period provided for 
under the preceding sentence.''.
    (b) Effective Date.--The amendment made by subsection shall (a) 
take effect as of November 1, 1995, and shall apply with respect to 
members of the uniformed services who, on or after that date, 
participate in critical operational missions, as determined under the 
third sentence of section 411b(a)(2) of title 37, United States Code 
(as added by subsection (a)).

SEC. 624. FUNDING FOR TRANSPORTATION OF HOUSEHOLD EFFECTS OF PUBLIC 
              HEALTH SERVICE OFFICERS.

    Section 406(j)(1) of title 37, United States Code, is amended in 
the first sentence--
            (1) by inserting ``, and appropriations available to the 
        Department of Health and Human Services for providing 
        transportation of household effects of members of the 
        Commissioned Corps of the Public Health Service under 
        subsection (b),'' after ``members of the armed forces under 
        subsection (b)''; and
            (2) by striking out ``of the military department''.

    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. ALLOTMENT OF RETIRED OR RETAINER PAY.

    (a) Authority.--(1) Part II of subtitle A of title 10, United 
States Code, is amended by inserting after chapter 71 the following new 
chapter:

    ``CHAPTER 72--MISCELLANEOUS RETIRED AND RETAINER PAY AUTHORITIES

``Sec.
``1421. Allotments.
``Sec. 1421. Allotments
    ``(a) Authority.--Subject to such conditions and restrictions as 
may be provided in regulations prescribed under subsection (b), a 
member or former member of the armed forces entitled to retired or 
retainer pay may transfer or assign the member or former member's 
retired or retainer pay account when due and payable.
    ``(b) Regulations.--The Secretaries of the military departments and 
the Secretary of Transportation (with respect to the Coast Guard when 
it is not operating as a service in the Navy) shall prescribe uniform 
regulations for the administration of subsection (a).''.
    (2) The tables of chapters at the beginning of subtitle A of such 
title and the beginning of part II of such subtitle are amended by 
inserting after the item relating to chapter 71 the following:

``72. Miscellaneous retired and retainer pay authorities....    1421''.
    (b) Implementation.--(1) Notwithstanding section 1421 of title 10, 
United States Code (as added by subsection (a)), a person entitled to 
retired or retainer pay may not initiate a transfer or assignment of 
retired or retainer pay under such section until regulations prescribed 
under subsection (b) of such section take effect.
    (2) The Secretaries of the military departments and the Secretary 
of Transportation shall prescribe regulations under subsection (b) of 
such section that ensure that, beginning not later than October 1, 
1997, a person may make up to six transfers or assignments of the 
person's retired or retainer pay account when due and payable for 
payment of any financial obligations.

SEC. 633. COST-OF-LIVING INCREASES IN SBP CONTRIBUTIONS TO BE EFFECTIVE 
              CONCURRENTLY WITH PAYMENT OF RELATED RETIRED PAY COST-OF-
              LIVING INCREASES.

    (a) Survivor Benefit Plan.--Section 1452(h) of title 10, United 
States Code, is amended--
            (1) by inserting ``(1)'' after ``(h)''; and
            (2) by adding at the end the following new subsection:
    ``(2)(A) 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 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) 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 1401a.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect with respect to retired pay payable for months beginning on 
or after the date of the enactment of this Act.

SEC. 634. ANNUITIES FOR CERTAIN MILITARY SURVIVING SPOUSES.

    (a) Survivor Annuity.--(1) The Secretary concerned shall pay an 
annuity to the qualified surviving spouse of each member of the 
uniformed services who--
            (A) died before March 21, 1974, and was entitled to retired 
        or retainer pay on the date of death; or
            (B) was a member of a reserve component of the Armed Forces 
        during the period beginning on September 21, 1972, and ending 
        on October 1, 1978, and at the time of his death would have 
        been entitled to retired pay under chapter 67 of title 10, 
        United States Code (as in effect before December 1, 1994), but 
        for the fact that he was under 60 years of age.
    (2) A qualified surviving spouse for purposes of this section is a 
surviving spouse who has not remarried and who is not eligible for an 
annuity under section 4 of Public Law 92-425 (10 U.S.C. 1448 note).
    (b) Amount of Annuity.--(1) An annuity under this section shall be 
paid at the rate of $165 per month, as adjusted from time to time under 
paragraph (3).
    (2) An annuity paid to a surviving spouse under this section shall 
be reduced by the amount of any dependency and indemnity compensation 
(DIC) to which the surviving spouse is entitled under section 1311(a) 
of title 38, United States Code.
    (3) Whenever after the date of the enactment of this Act retired or 
retainer pay is increased under section 1401a(b)(2) of title 10, United 
States Code, each annuity that is payable under this section shall be 
increased at the same time and by the same total percent. The amount of 
the increase shall be based on the amount of the monthly annuity 
payable before any reduction under this section.
    (c) Application Required.--No benefit shall be paid to any person 
under this section unless an application for such benefit is filed with 
the Secretary concerned by or on behalf of such person.
    (d) Definitions.--For purposes of this section:
            (1) The terms ``uniformed services'' and ``Secretary 
        concerned'' have the meanings given such terms in section 101 
        of title 37, United States Code.
            (2) The term ``surviving spouse'' has the meaning given the 
        terms ``widow'' and ``widower'' in paragraphs (3) and (4) of 
        section 1447 of title 10, United States Code.
    (e) Prospective Applicability.--(1) Annuities under this section 
shall be paid for months beginning after the month in which this Act is 
enacted.
    (2) No benefit shall accrue to any person by reason of the 
enactment of this section for any period before the first month 
referred to in paragraph (1).

SEC. 635. ADJUSTED ANNUAL INCOME LIMITATION APPLICABLE TO ELIGIBILITY 
              FOR INCOME SUPPLEMENT FOR CERTAIN WIDOWS OF MEMBERS OF 
              THE UNIFORMED SERVICES.

    Section 4 of Public Law 92-425 (10 U.S.C. 1448 note) is amended by 
striking out ``$2,340'' in subsection (a)(3) and in the first sentence 
of subsection (b) and inserting in lieu thereof ``$5,448''.

                       Subtitle E--Other Matters

SEC. 641. REIMBURSEMENT FOR ADOPTION EXPENSES INCURRED IN ADOPTIONS 
              THROUGH PRIVATE PLACEMENTS.

    (a) Department of Defense.--Section 1052(g)(1) of title 10, United 
States Code, is amended by striking out ``adoption or by a nonprofit, 
voluntary adoption agency which is authorized by State or local law to 
place children for adoption'' and inserting in lieu thereof ``adoption, 
by a nonprofit, voluntary adoption agency which is authorized by State 
or local law to place children for adoption, or by any other source if 
the adoption is supervised by a court under State or local law''.
    (b) Coast Guard.--Section 514(g)(1) of title 14, United States 
Code, is amended by striking out ``adoption or by a nonprofit, 
voluntary adoption agency which is authorized by State or local law to 
place children for adoption'' and inserting in lieu thereof ``adoption, 
by a nonprofit, voluntary adoption agency which is authorized by State 
or local law to place children for adoption, or by any other source if 
the adoption is supervised by a court under State or local law''.

SEC. 642. WAIVER OF RECOUPMENT OF AMOUNTS WITHHELD FOR TAX PURPOSES 
              FROM CERTAIN SEPARATION PAY RECEIVED BY INVOLUNTARILY 
              SEPARATED MEMBERS AND FORMER MEMBERS OF THE ARMED FORCES.

    (a) In General.--Section 1174(h) of title 10, United States Code, 
is amended--
            (1) in paragraph (1), by inserting ``(less the amount of 
        Federal income tax withheld from such pay)'' before the period 
        at the end; and
            (2) in paragraph (2), by inserting ``(less the amount of 
        Federal income tax withheld from such pay)'' before the period 
        at the end of the first sentence.
    (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 October 1, 
1996.

                   TITLE VII--HEALTH CARE PROVISIONS

SEC. 701. IMPLEMENTATION OF REQUIREMENT FOR SELECTED RESERVE DENTAL 
              INSURANCE PLAN.

    (a) Implementation by Contract.--Section 1076b(a) 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:
    ``(2) The Secretary shall provide benefits under the plan through 
one or more contracts awarded after full and open competition.''.
    (b) 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) by striking out ``Beginning not later than October 1, 
        1996'' in the first sentence and inserting in lieu thereof 
        ``During fiscal year 1997'';
            (2) by striking out ``fiscal year 1996'' both places it 
        appears and inserting in lieu thereof ``fiscal years 1996 and 
        1997''; and
            (3) in the second sentence, by striking out ``by that 
        date'' and inserting in lieu thereof ``during fiscal year 
        1997''.

SEC. 702. DENTAL INSURANCE PLAN FOR MILITARY RETIREES AND CERTAIN 
              DEPENDENTS.

    (a) In General.--(1) Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1076b the following new section:
``Sec. 1076c. Military retirees' dental insurance plan
    ``(a) Requirement.--(1) The Secretary of Defense shall establish a 
dental insurance plan for--
            ``(A) members and former members of the Armed Forces who 
        are entitled to retired or retainer pay;
            ``(B) members of the Retired Reserve who, except for not 
        having attained 60 years of age, would be entitled to retired 
        pay; and
            ``(C) eligible dependents of members and former members 
        covered by the enrollment of such members or former members in 
        the plan.
    ``(2) The dental insurance plan shall provide for voluntary 
enrollment of participants and shall authorize a member or former 
member to enroll for self only or for self and eligible dependents.
    ``(3) The plan shall be administered under regulations prescribed 
by the Secretary of Defense, in consultation with the Secretary of 
Transportation.
    ``(b) Premiums.--(1) Subject to paragraph (2), a member or former 
member enrolled in the dental insurance plan shall pay the premiums 
charged for the insurance coverage. The amount of the premiums payable 
by a member or former member entitled to retired or retainer pay shall 
be deducted and withheld from the retired or retainer pay and shall be 
disbursed to pay the premiums. The regulations prescribed under 
subsection (a)(3) shall specify the procedures for payment of the 
premiums by other enrolled members and former members.
    ``(2) The Secretary of Defense may provide for premium-sharing 
between the Department of Defense and the members and former members 
enrolled in the plan.
    ``(c) Benefits Available Under 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.
    ``(d) Coverage.--(1) The Secretary shall prescribe a minimum 
required period for enrollment by a member or former member in the 
dental insurance plan established under subsection (a).
    ``(2) The Secretary shall terminate the enrollment in the plan of 
any member or former member, and any dependents covered by the 
enrollment, upon the occurrence of one of the following events:
            ``(A) Termination of the member or former member's 
        entitlement to retired pay or retainer pay.
            ``(B) Termination of the member or former member's status 
        as a member of the Retired Reserve.
    ``(e) Continuation of Dependents' Enrollment Upon Death of 
Enrollee.--Coverage of a dependent under an enrollment of a member or 
former member who dies during the period of enrollment shall continue 
until the end of that period, except that the coverage may be 
terminated on any earlier date when the premiums paid are no longer 
sufficient to cover continuation of the enrollment. The Secretary shall 
prescribe in regulations the parties responsible for paying the 
remaining premiums due on the enrollment and the manner for collection 
of the premiums.
    ``(f) Eligible Dependent Defined.--In this section, the term 
`eligible dependent' means a dependent described in subparagraph (A), 
(D), or (I) of section 1072(2) of this title.''.
    (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. Military retirees' dental insurance plan.''.
    (b) Implementation.--Beginning not later than October 1, 1997, the 
Secretary of Defense shall offer members and former members of the 
Armed Forces referred to in subsection (a)(1) 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 
such section and to receive the benefits under the plan immediately 
upon enrollment.

SEC. 703. UNIFORM COMPOSITE HEALTH CARE SYSTEM SOFTWARE.

    (a) Requirement for Use of Uniform Software.--The Secretary of 
Defense, in consultation with the other administering Secretaries, 
shall take such action as is necessary promptly--
            (1) to provide a uniform software package for use by 
        providers of health care under the TRICARE program and by 
        military treatment facilities for the computerized processing 
        of information; and
            (2) to require such providers to use the uniform software 
        package in connection with providing health care under the 
        TRICARE program or otherwise under chapter 55 of title 10, 
        United States Code.
    (b) Content of Uniform Software Package.--The uniform software 
package required to be used under subsection (a) shall, at a minimum, 
provide for processing of the following information:
            (1) TRICARE program enrollment.
            (2) Determinations of eligibility for health care.
            (3) Provider network information.
            (4) Eligibility of beneficiaries to receive health benefits 
        from other sources.
            (5) Appointment scheduling.
    (c) Modification of Contracts.--Notwithstanding any other provision 
of law, the Secretary may modify any existing contract with a health 
care provider under the TRICARE program as necessary to require the 
health care provider to use the uniform software package required under 
subsection (a).
    (d) Definitions.--In this section:
            (1) The term ``administering Secretaries'' has the meaning 
        given such term in section 1072(3) of title 10, United States 
        Code.
            (2) The term ``military treatment facility''--
                    (A) means a facility of the uniformed services in 
                which health care is provided under chapter 55 of title 
                10, United States Codes; and
                    (B) includes a facility deemed to be a facility of 
                the uniformed services by virtue of section 911(a) of 
                the Military Construction Authorization Act, 1982 (42 
                U.S.C. 248c(a)).
            (3) 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. 704. CLARIFICATION OF APPLICABILITY OF CHAMPUS PAYMENT RULES TO 
              PRIVATE CHAMPUS PROVIDERS FOR CARE PROVIDED TO ENROLLEES 
              IN HEALTH CARE PLANS OF UNIFORMED SERVICES TREATMENT 
              FACILITIES.

    Section 1074(d)(1) of title 10, United States Code, is amended--
            (1) by striking out ``may require'' and inserting in lieu 
        thereof ``shall require'';
            (2) by striking out ``member of the uniformed services'' 
        and inserting in lieu thereof ``covered beneficiary''; and
            (3) by striking out ``when the health care'' and all that 
        follows through ``facility''.

SEC. 705. 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--
            (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 ``, and a personal injury 
                protection plan or medical payments benefit plan for 
                personal injuries resulting from the operation of a 
                motor vehicle'' before the period.
    (c) Applicability of Secondary Payer Requirement.--Section 
1079(j)(1) of such title is amended by inserting ``, including any plan 
offered by a third party payer (as defined in section 1095(h)(1) of 
this title),'' after ``or health plan''.

SEC. 706. CODIFICATION OF AUTHORITY TO CREDIT CHAMPUS COLLECTIONS TO 
              PROGRAM ACCOUNTS.

    (a) Credits to CHAMPUS Accounts.--Chapter 55 of title 10, United 
States Code, is amended by inserting after section 1079 the following:
``Sec. 1079a. Crediting of CHAMPUS collections to program accounts
    ``All refunds and other amounts collected by or for the United 
States in the administration of the Civilian Health and Medical Program 
of the Uniformed Services (CHAMPUS) shall be credited to the 
appropriation available for that program for the fiscal year in which 
collected.''.
    (b) Clerical Amendment.--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. Crediting of CHAMPUS collections to program accounts.''.

SEC. 707. COMPTROLLER GENERAL REVIEW OF HEALTH CARE ACTIVITIES OF THE 
              DEPARTMENT OF DEFENSE RELATING TO PERSIAN GULF 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 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) Experimental Drugs.--The Comptroller General shall analyze the 
scope and effectiveness of the policies of the Department of Defense 
with respect to the investigational use of drugs, the experimental use 
of drugs, and the use of drugs not approved by the Food and Drug 
Administration 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.--The Comptroller General shall submit to Congress a 
separate report on each of the analyses required under subsections (a), 
(b), and (c). The Comptroller General shall submit the reports not 
later than March 1, 1997.

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

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.
    (b) Specific Programs.--Of the amounts made available pursuant 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. 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 (107 Stat. 
1547; 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, 
2001.''.

SEC. 804. REVISIONS TO THE PROGRAM FOR THE ASSESSMENT OF THE NATIONAL 
              DEFENSE TECHNOLOGY AND INDUSTRIAL BASE.

    (a) National Defense Program for Analysis of the Technology 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, 
                in consultation with the Secretary of Commerce''; 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''.
    (b) Periodic Defense Capability Assessments.--(1) Section 2505 of 
title 10, United States Code, is amended to read as follows:
``Sec. 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 of the 
national technology and industrial base to attain the national security 
objectives set forth in section 2501(a) of this title.
    ``(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) Foreign Dependency Considerations.--In the preparation of the 
periodic assessments, the Secretary shall include considerations of 
foreign dependency.
    ``(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.
    (c) Repeal of Requirement for Periodic Defense Capability Plan.--
Section 2506 of title 10, United States Code, is repealed.
    (d) Department of Defense Technology and Industrial Base Policy 
Guidance.--Subchapter II of chapter 148 of title 10, United States 
Code, is amended by inserting after section 2505 the following new 
section 2506:
``Sec. 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 annual report to 
Congress submitted pursuant to section 2508 of this title.''.
    (e) Annual Report to Congress.--Such subchapter is amended by 
inserting after section 2507 the following new section:
``Sec. 2508. 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.--The table of sections at the beginning of 
subchapter II of chapter 148 of title 10, United States Code, is 
amended--
            (1) by striking out the item relating to section 2506 and 
        inserting in lieu thereof the following:

``2506. Department of Defense technology and industrial base policy 
                            guidance.'';
        and
            (2) by adding at the end the following:

``2508. Annual report to Congress.''.
    (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. 805. PROCUREMENTS TO BE MADE FROM SMALL ARMS INDUSTRIAL BASE 
              FIRMS.

    (a) Requirement.--Chapter 146 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 2473. Procurements from the small arms industrial base
    ``(a) Authority To Designate Exclusive Sources.--To the extent that 
the Secretary of Defense determines necessary to preserve the part of 
the national technology and industrial base that supplies property and 
services described in subsection (b), the Secretary may require that 
the procurements of such items for the Department of Defense be made 
only from the firms listed 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) Covered Items.--The authority provided in subsection (a) 
applies to the following property and services:
            ``(1) Repair parts for small arms.
            ``(2) Modifications of parts to improve small arms used by 
        the armed forces.
            ``(3) Overhaul of unserviceable small arms of the armed 
        forces.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``2473. Procurements from the small arms industrial base.''.

SEC. 806. 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 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,''.

SEC. 807. TREATMENT OF DEPARTMENT OF DEFENSE CABLE TELEVISION FRANCHISE 
              AGREEMENTS.

    (a) Treatment as Contract for Telecommunications Services.--Subject 
to subsection (b), a cable television franchise agreement for the 
Department of Defense shall be considered a contract for 
telecommunications services for purposes of part 49 of the Federal 
Acquisition Regulation.
    (b) Limitation.--The treatment of a cable television franchise 
agreement as a contract for telecommunications services shall be 
subject to such terms, conditions, limitations, restrictions, and 
requirements relating to the power of the executive branch to treat 
such an agreement as such a contract as are identified in the advisory 
opinion required under section 823 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
399).
    (c) Applicability.--This section applies to cable television 
franchise agreements for the Department of Defense only if the United 
States Court of Federal Claims states in an advisory opinion referred 
to in subsection (b) that it is within the power of the executive 
branch to treat cable television franchise agreements for the 
construction, installation, or capital improvement of cable television 
systems at military installations of the Department of Defense as 
contracts under part 49 of the Federal Acquisition Regulation without 
violating title VI of the Communications Act of 1934 (47 U.S.C. 521 et 
seq.).

SEC. 808. REMEDIES FOR REPRISALS AGAINST CONTRACTOR EMPLOYEE 
              WHISTLEBLOWERS.

    Section 2409(c)(1) of title 10, United States Code, is amended by 
striking out subparagraph (B) and inserting in lieu thereof the 
following:
            ``(B) Order the contractor either--
                    ``(i) to reinstate the person to the position that 
                the person held before the reprisal, together with the 
                compensation (including back pay), employment benefits, 
                and other terms and conditions of employment that would 
                apply to the person in that position if the reprisal 
                had not been taken; or
                    ``(ii) without reinstating the person, to pay the 
                person an amount equal to the compensation (including 
                back pay) that, if the reprisal had not been taken, 
                would have been paid the person in that position up to 
                the date on which the head of the agency determines 
                that the person has been subjected to a reprisal 
                prohibited under subsection (a).''.

SEC. 809. IMPLEMENTATION OF INFORMATION TECHNOLOGY MANAGEMENT REFORM.

    (a) Report.--(1) The Secretary of Defense shall include in the 
report submitted in 1997 under section 381 of Public Law 103-337 (108 
Stat. 2739) a discussion of the following matters relating to 
information resources management by the Federal Government:
            (A) 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.
            (B) 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 
        Public Law 104-106 (110 Stat 275; 10 U.S.C. 113 note).
            (C) Plans of the Department of Defense for establishing an 
        integrated framework for management of information resources 
        within the department.
    (2) The discussion of matters under paragraph (1) shall 
specifically include a discussion of the following:
            (A) The status of the implementation of a set of strategic, 
        outcome-oriented performance measures.
            (B) 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.
            (C) The results of pilot program testing of proposed 
        performance measures.
            (D) The additional training necessary for the 
        implementation of performance-based information management.
            (E) Plans for integrating management improvement programs 
        of the Department of Defense.
            (F) The department-wide actions that are necessary to 
        comply with the requirements of the following provisions of 
        law:
                    (i) The amendments made by the Government 
                Performance and Results Act of 1993 (Public Law 103-62; 
                107 Stat. 285).
                    (ii) The Information 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.
                    (iii) Title V of the Federal Acquisition Management 
                Streamlining Act of 1994 (Public Law 103-355; 108 Stat. 
                3349) and the amendments made by that title.
                    (iv) The Chief Financial Officers Act of 1990 
                (Public Law 101-576; 104 Stat. 2838) and the amendments 
                made by that Act.
            (G) A strategic information resources plan for the 
        Department of Defense that is based on the strategy of the 
        Secretary of Defense for support of the department's overall 
        strategic goals by the core and supporting processes of the 
        department.
    (b) Year 2000 Software Conversion.--(1) The Secretary of Defense 
shall ensure that all information technology acquired by the Department 
of Defense pursuant to contracts entered into after September 30, 1996, 
have the capabilities that comply with time and date standards 
established by the National Institute of Standards and Technology or, 
if there is no such standard, generally accepted industry standards for 
providing fault-free processing of date and date-related data in 2000.
    (2) 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 have the capabilities to operate effectively with technology 
that meet the standards referred to in paragraph (1).
    (3) Not later than January 1, 1997, the Secretary shall submit to 
Congress a detailed plan for eliminating any deficiencies identified 
pursuant to paragraph (2). The plan shall include--
            (A) a prioritized list of all affected programs;
            (B) a description of how the deficiencies could affect the 
        national security of the United States; and
            (C) an estimate of the resources that are necessary to 
        eliminated the deficiencies.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                      Subtitle A--General Matters

SEC. 901. REPEAL OF REORGANIZATION OF OFFICE OF SECRETARY OF DEFENSE.

    Sections 901 and 903 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 399 and 401) are 
repealed.

SEC. 902. 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:
``Sec. 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 
on 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:

``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. 282; 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).

SEC. 903. CODIFICATION OF REQUIREMENT FOR UNITED STATES ARMY RESERVE 
              COMMAND.

    (a) Requirement for Army Reserve Command.--(1) Chapter 307 of title 
10, United States Code, is amended by inserting after section 3074 the 
following:
``Sec. 3074a. 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.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 3074 the 
following:

``3074a. United States Army Reserve Command.''.
    (b) Repeal of Superseded Law.--Section 903 of the National Defense 
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 
1620; 10 U.S.C. 3074 note) is repealed.

SEC. 904. 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 Amendment.--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 inserting after 
the item relating to section 2643 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. 905. EXECUTIVE OVERSIGHT OF DEFENSE HUMAN INTELLIGENCE PERSONNEL.

    Section 193 of title 10, United States Code, is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Human Intelligence Personnel.--(1) Notwithstanding any other 
provision of law, subject to the authority, direction, and control of 
the President, the Secretary of Defense shall perform the 
responsibility within the executive branch for oversight of the 
clandestine activities of Department of Defense human intelligence 
personnel. The Secretary may delegate authority to carry out such 
responsibility only to the Deputy Secretary of Defense.''.

SEC. 906. COORDINATION OF DEFENSE INTELLIGENCE PROGRAMS AND ACTIVITIES.

    (a) Director of Military Intelligence and Defense Intelligence 
Board.--Subchapter II of chapter 8 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 203. Director of Military Intelligence; Defense Intelligence 
              Board
    ``(a) Designation of Director.--The Director of the Defense 
Intelligence Agency is the Director of Military Intelligence. The 
Director performs the duties of the position under the authority, 
direction, and control of the Secretary of Defense and reports directly 
to the Secretary.
    ``(b) Duties.--In addition to any other duties that are assigned to 
the Director by the Secretary of Defense, the Director--
            ``(1) manages the General Defense Intelligence Program; and
            ``(2) is Chairman of the Military Intelligence Board.
    ``(c) Military Intelligence Board.--(1) There is a Military 
Intelligence Board within the Department of Defense.
    ``(2) The Military Intelligence Board consists of the Director of 
Military Intelligence, the Director of the National Security Agency, 
the Director of the National Imagery and Mapping Agency, the Director 
of the Defense Information Systems Agency, the senior intelligence 
officer of each armed force (as designated by the Secretary of the 
military department having jurisdiction over that armed force or, in 
the case of the Coast Guard, the Commandant of the Coast Guard), the 
Deputy Director of the Defense Intelligence Agency, the Director for 
Joint Staff Intelligence, and any other persons designated as members 
of the board by the Secretary of Defense.
    ``(3) The Military Intelligence Board shall be the principal forum 
for coordination of the intelligence programs and activities of the 
Department of Defense.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following:

``203. Director of Military Intelligence; Military Intelligence 
                            Board.''.

SEC. 907. REDESIGNATION OF OFFICE OF NAVAL RECORDS AND HISTORY FUND AND 
              CORRECTION OF RELATED REFERENCES.

    (a) Name of Fund.--Subsection (a) of section 7222 of title 10, 
United States Code, is amended by striking out ```Office of Naval 
Records and History Fund''' in the second sentence and inserting in 
lieu thereof ```Naval Historical Center Fund'''.
    (b) Correction of Reference to Administering Office.--Subsection 
(a) of such section, as amended by subsection (a), is further amended 
by striking out ``Office of Naval Records and History'' in the first 
sentence and inserting in lieu thereof ``Naval Historical Center''.
    (c) Conforming Reference.--Subsection (c) of such section is 
amended by striking out ``Office of Naval Records and History Fund'' in 
the second sentence and inserting in lieu thereof ``Naval Historical 
Center Fund''.
    (d) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 7222. Naval Historical Center Fund''.
    (2) 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.''.

            Subtitle B--National Imagery and Mapping Agency

SEC. 911. SHORT TITLE.

    This subtitle may be cited as the ``National Imagery and Mapping 
Agency Act of 1996''.

SEC. 912. 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.

                         PART I--ESTABLISHMENT

SEC. 921. ESTABLISHMENT, MISSIONS, AND AUTHORITY.

    (a) Establishment in Title 10, United States Code.--Part I of 
subtitle A of title 10, United States Code, is amended--
            (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. Establishment, Missions, and Authority.................        441
``II. Maps, Charts, and Geodetic Products...................        451
``III. Personnel Management.................................        461
``IV. Definitions...........................................        471

         ``SUBCHAPTER I--ESTABLISHMENT, 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. Limitation on oversight by Inspector General of the Central 
                            Intelligence Agency.
``446. Protection of agency identifications and organizational 
                            information.
``Sec. 441. Establishment
    ``(a) Establishment.--The National Imagery and Mapping Agency is a 
combat support agency of the Department of Defense.
    ``(b) Director.--(1) The Director of the National Imagery and 
Mapping Agency is the head of the agency. The President shall appoint 
the Director, by and with the advice and consent of the Senate, from 
among the officers of the regular components of the armed forces.
    ``(2) The position of Director is a position of importance and 
responsibility for purposes of section 601 of this title and carries 
the grade of lieutenant general or, in the case of an officer of the 
Navy, vice admiral.
``Sec. 442. Missions
    ``(a) Department of Defense Missions.--The National Imagery and 
Mapping Agency shall--
            ``(1) provide timely, relevant, and accurate imagery, 
        imagery intelligence, and geospatial information in support of 
        the national security objectives of the United States;
            ``(2) 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; and
            ``(3) prepare and distribute maps, charts, books, and 
        geodetic products as authorized under subchapter II of this 
        chapter.
    ``(b) National Mission.--(1) The National Imagery and Mapping 
Agency shall also support the imagery requirements of the Department of 
State and other departments and agencies of the United States outside 
the Department of Defense.
    ``(2)(A) The Director of Central Intelligence shall establish 
requirements and priorities to govern the collection of national 
intelligence by the National Imagery and Mapping Agency under paragraph 
(1).
    ``(B) The Director of Central Intelligence shall develop and 
implement such policies and programs as the Secretary of Defense and 
the Director jointly determine necessary to review and correct 
deficiencies identified in the capabilities of the National Imagery and 
Mapping Agency to accomplish assigned national missions. The Director 
shall consult with the Secretary of Defense on the development and 
implementation of such policies and programs. The Secretary of Defense 
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) The President may direct the Secretary of Defense to exercise 
authority of the Director of Central Intelligence under subparagraphs 
(A) and (B) during a war, military crisis, or military operation.
    ``(c) Life Cycle Support.--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) to any other department or agency of the United 
        States.
``Sec. 443. Imagery intelligence and geospatial information support for 
              foreign countries
    ``(a) 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) Funds Other Than Appropriated Funds.--(1) Subject to 
paragraphs (2), (3), and (4), the Director is also authorized to use 
funds other than appropriated funds to provide foreign countries with 
imagery intelligence and geospatial information support.
    ``(2) Funds other than appropriated funds may not 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.
    ``(3) 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.
    ``(4) Funds other than appropriated funds may not be expended to 
acquire items or services for the principal benefit of the United 
States.
    ``(5) The authority to use funds other than appropriated funds 
under this section may be exercised notwithstanding provisions of law 
relating to the expenditure of funds 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 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.
``Sec. 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 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 Central Intelligence Agency personnel 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 
the 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.
``Sec. 445. Limitation on oversight by Inspector General of the Central 
              Intelligence Agency
    ``The Inspector General of the Central Intelligence Agency may not 
conduct any inspection, investigation, or audit of the National Imagery 
and Mapping Agency without the written consent of the Inspector General 
of the Department of Defense. In conducting an inspection, 
investigation, or audit of the National Imagery and Mapping Agency, the 
Inspector General of the Central Intelligence Agency shall be subject 
to the authority, direction, and control of the Secretary of Defense to 
the same extent as is the Inspector General of the Department of 
Defense under section 8 of the Inspector General Act of 1978 (5 U.S.C. 
App.).
``Sec. 446. 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.
    ``(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.
    ``(b) Protection of Organizational Information.--Notwithstanding 
any other provision of law, the Director of the National Imagery and 
Mapping Agency is not required to disclose the organization of the 
agency, any function of the agency, any information with respect to the 
activities of the agency, or the names, titles, salaries, or number of 
the persons employed by the agency. This subsection does not apply to 
disclosures of information to Congress.

          ``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. Civilian personnel management generally.
``462. National Imagery and Mapping Senior Executive Service.
``463. Management rights.
``Sec. 461. Civilian personnel management generally
    ``(a) General Personnel Authority.--The Secretary of Defense may, 
without regard to the provisions of any other law relating to the 
appointment, number, classification, or compensation of Federal 
employees--
            ``(1) establish such excepted service positions for 
        employees in the National Imagery and Mapping Agency as the 
        Secretary considers necessary to carry out the functions of 
        those agencies, including positions designated under subsection 
        (f) as National Imagery and Mapping Senior Level positions;
            ``(2) appoint individuals to those positions; and
            ``(3) fix the compensation for service in those positions.
    ``(b) Authority To Fix Rates of Basic Pay and Other Allowances and 
Benefits.--(1) The Secretary of Defense shall, subject to subsection 
(c), fix the rates of basic pay for positions established under 
subsection (a) in relation to the rates of basic pay provided in 
subpart D of part III of title 5 for positions subject to that title 
which have corresponding levels of duties and responsibilities. Except 
as otherwise provided by law, an employee of the National Imagery and 
Mapping Agency may not be paid basic pay at a rate in excess of the 
maximum rate payable under section 5376 of title 5.
    ``(2) The Secretary of Defense may provide employees in positions 
of the National Imagery and Mapping Agency compensation (in addition to 
basic pay under paragraph (1)) and benefits, incentives, and allowances 
consistent with, and not in excess of the levels authorized for, 
comparable positions authorized by title 5.
    ``(c) Prevailing Rates 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 in or under which the National Imagery 
and Mapping Agency may employ individuals described in section 
5342(a)(2)(A) of such title.
    ``(d) Allowances Based on Living Costs and Environment for 
Employees Stationed Outside Continental United States or in Alaska.--
(1) In addition to the basic compensation payable under subsection (b), 
employees of the National Imagery and Mapping Agency described in 
paragraph (3) may be paid an allowance, in accordance with regulations 
prescribed by the Secretary of Defense, at a rate not in excess of the 
allowance authorized to be paid under section 5941(a) of title 5 for 
employees whose rates of basic pay are fixed by statute.
    ``(2) Such allowance 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 those factors.
    ``(3) This subsection applies to employees who--
            ``(A) are citizens or nationals of the United States; and
            ``(B) are stationed outside the continental United States 
        or in Alaska.
    ``(e) Termination of Employees.--(1) Notwithstanding any other 
provision of law, the Secretary of Defense may terminate the employment 
of any employee of the National Imagery and Mapping Agency if the 
Secretary--
            ``(A) considers such action to be in the interests of the 
        United States; and
            ``(B) 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.
    ``(2) A decision by the Secretary of Defense to terminate the 
employment of an employee under this subsection is final and may not be 
appealed or reviewed outside the Department of Defense.
    ``(3) The Secretary of Defense shall promptly notify the Committee 
on National Security and the Permanent Select Committee on Intelligence 
of the House of Representatives and the Committee on Armed Services and 
the Select Committee on Intelligence of the Senate whenever the 
Secretary terminates the employment of any employee under the authority 
of this subsection.
    ``(4) Any termination of employment under this subsection shall 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.
    ``(5) The authority of the Secretary of Defense under this 
subsection may be delegated only to the Deputy Secretary of Defense and 
the Director of the National Imagery and Mapping Agency. An action to 
terminate employment of an employee by any such officer may be appealed 
to the Secretary of Defense.
    ``(f) National Imagery and Mapping Senior Level Positions.--(1) In 
carrying out subsection (a)(1), the Secretary may designate positions 
described in paragraph (3) as National Imagery and Mapping Senior Level 
positions.
    ``(2) Positions designated under this subsection shall be treated 
as equivalent for purposes of compensation to the senior level 
positions to which section 5376 of title 5 is applicable.
    ``(3) Positions that may be designated as National Imagery and 
Mapping Senior Level positions are positions in the National Imagery 
and Mapping Agency that (A) are classified above the GS-15 level, (B) 
emphasize function expertise and advisory activity, but (C) do not have 
the organizational or program management functions necessary for 
inclusion in the National Imagery and Mapping Senior Executive Service.
    ``(4) Positions referred to in paragraph (3) include National 
Imagery and Mapping Senior Technical positions and National Imagery and 
Mapping Senior Professional positions. For purposes of this subsection 
National Imagery and Mapping Senior Technical positions are positions 
covered by paragraph (3) if--
            ``(A) the positions involve--
                    ``(i) research and development;
                    ``(ii) test and evaluation;
                    ``(iii) substantive analysis, liaison, or advisory 
                activity focusing on engineering, physical sciences, 
                computer science, mathematics, biology, chemistry, 
                medicine, or other closely related scientific and 
                technical fields; or
                    ``(iv) intelligence disciplines including 
                production, collection, and operations in close 
                association with any of the activities described in 
                clauses (i), (ii), and (iii) or related activities; or
            ``(B) the positions emphasize staff, liaison, analytical, 
        advisory, or other activity focusing on intelligence, law, 
        finance and accounting, program and budget, human resources 
        management, training, information services, logistics, 
        security, and other appropriate fields.
    ``(g) `Employee' Defined as Including Officers.--In this section, 
the term `employee', with respect to the National Imagery and Mapping 
Agency, includes any civilian officer of that agency.
``Sec. 462. National Imagery and Mapping Senior Executive Service
    ``(a) Establishment.--The Secretary of Defense may establish a 
National Imagery and Mapping Senior Executive Service for senior 
civilian personnel within the National Imagery and Mapping Agency.
    ``(b) Requirements for the Service.--In establishing a National 
Imagery and Mapping Senior Executive Service the Secretary shall--
            ``(1) meet the requirements set forth for the Senior 
        Executive Service in section 3131 of title 5;
            ``(2) ensure that the National Imagery and Mapping Senior 
        Executive Service positions satisfy requirements that are 
        consistent with the provisions of section 3132(a)(2) of title 
        5;
            ``(3) prescribe rates of pay for the National Imagery and 
        Mapping Senior Executive Service that are not in excess of the 
        maximum rate of basic pay, nor less than the minimum rate of 
        basic pay, established for the Senior Executive Service under 
        section 5382 of title 5;
            ``(4) provide for adjusting the rates of pay at the same 
        time and to the same extent as rates of basic pay for the 
        Senior Executive Service are adjusted;
            ``(5) provide a performance appraisal system for the 
        National Imagery and Mapping Senior Executive Service that 
        conforms to the provisions of subchapter II of chapter 43 of 
        title 5;
            ``(6) provide for removal consistent with section 3592 of 
        title 5, and removal or suspension consistent with subsections 
        (a), (b), and (c) of section 7543 of title 5 (except that any 
        hearing or appeal to which a member of the National Imagery and 
        Mapping Senior Executive Service is entitled shall be held or 
        decided pursuant to procedures established by the Secretary of 
        Defense);
            ``(7) permit the payment of performance awards to members 
        of the National Imagery and Mapping Senior Executive Service 
        consistent with the provisions applicable to performance awards 
        under section 5384 of title 5;
            ``(8) provide that members of the National Imagery and 
        Mapping Senior Executive Service may be granted sabbatical 
        leaves consistent with the provisions of section 3396(c) of 
        title 5; and
            ``(9) provide for the recertification of members of the 
        National Imagery and Mapping Senior Executive Service 
        consistent with the provisions of section 3393a of title 5.
    ``(c) Authority.--Except as otherwise provided in subsection (b), 
the Secretary of Defense may--
            ``(1) make applicable to the National Imagery and Mapping 
        Senior Executive Service any of the provisions of title 5 that 
        are applicable to applicants for or members of the Senior 
        Executive Service; and
            ``(2) appoint, promote, and assign individuals to positions 
        established within the National Imagery and Mapping Senior 
        Executive Service without regard to the provisions of title 5 
        governing appointments and other personnel actions in the 
        competitive service.
    ``(d) Award of Rank.--The President, based on the recommendations 
of the Secretary of Defense, may award ranks to individuals who occupy 
positions in the National Imagery and Mapping Senior Executive Service 
in a manner consistent with the provisions of section 4507 of title 5.
    ``(e) Details and Assignments.--Notwithstanding any other 
provisions of this section, the Secretary of Defense may detail or 
assign any member of the National Imagery and Mapping Senior Executive 
Service to serve in a position outside the National Imagery and 
Mapping Agency in which the member's expertise and experience may be of 
benefit to the National Imagery and Mapping Agency or another 
Government agency. Any such member shall not by reason of such detail 
or assignment lose any entitlement or status associated with membership 
in the National Imagery and Mapping Senior Executive Service.
``Sec. 463. 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 (subtitle B of title IX 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 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.
``471. Definitions.
``Sec. 471. 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) The 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 Chapter 167 Provisions.--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), are inserted in that sequence in such subchapter following the 
table of sections, and are redesignated in accordance with the 
following table:

Section                                                      Section as
transferred                                                redesignated
    2792....................................................       451 
    2793....................................................       452 
    2794....................................................       453 
    2795....................................................       454 
    2796....................................................       455 
    2798....................................................       456.
    (c) Consultation on Appointment of Director.--Section 201 of title 
10, United States Code, is amended by striking out ``or Director of the 
National Security Agency'' and inserting in lieu thereof ``, Director 
of the National Security Agency, or Director of the National Imagery 
and Mapping Agency''.
    (d) 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.''.
    (e) Special Printing Authority for Agency.--(1) Section 
207(a)(2)(B) of the Legislative Branch Appropriations Act, 1993 (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. 922. TRANSFERS.

    (a) Department of Defense.--The missions and functions of the 
following elements of the Department of Defense are transferred to the 
National Imagery and Mapping Agency:
            (A) The Defense Mapping Agency.
            (B) The Central Imagery Office.
            (C) Other elements of the Department of Defense as provided 
        in the classified annex to this Act.
    (b) 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:
            (A) The National Photographic Interpretation Center.
            (B) Other elements of the Central Intelligence Agency as 
        provided in the classified annex to this Act.
    (c) Personnel and Assets.--(1) Subject to paragraphs (2) and (3), 
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 subsection 
(a) or (b) are transferred to the National Imagery and Mapping Agency. 
A transfer may not be made under the preceding sentence for any program 
or function for which funds are not appropriated to the National 
Imagery and Mapping Agency for fiscal year 1997. Transfers of 
appropriations from the Central Intelligence Agency under this 
paragraph shall be made in accordance with section 1531 of title 31, 
United States Code.
    (2) 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.
    (3) 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--
            (A) 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
            (B) provide by written agreement for the transfer of such 
        items.

SEC. 923. COMPATIBILITY WITH AUTHORITY UNDER THE NATIONAL SECURITY ACT 
              OF 1947.

    (a) Agency Functions.--Section 105(b) of the National Security Act 
of 1947 (50 U.S.C. 403-5(b)) is amended by striking out paragraph (2) 
and inserting in lieu thereof the following:
            ``(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 
        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) Appointment of Director.--Section 106 of such Act (50 U.S.C. 
403-6) is amended--
            (1) by striking out subsection (b); and
            (2) in subsection (a)--
                    (A) by inserting ``the National Imagery and Mapping 
                Agency,'' after ``the National Reconnaissance 
                Office,''; and
                    (B) by striking out ``(a) Consultation With Regard 
                to Certain Appointments.--''.

SEC. 924. OTHER PERSONNEL MANAGEMENT AUTHORITIES.

    (a) Comparable Treatment With Other Intelligence Senior Executive 
Services.--Title 5, United States Code, is amended as follows:
            (1) In section 2108(3), by inserting ``the National Imagery 
        and Mapping Senior Executive Service,'' after ``the Senior 
        Cryptologic Executive Service,'' in the matter following 
        subparagraph (F)(iii).
            (2) In section 6304(f)(1), by--
                    (A) by striking out ``or'' at the end of 
                subparagraph (D);
                    (B) by striking out the period at the end of in 
                subparagraph (E) and inserting in lieu thereof ``; 
                or''; and
                    (C) by adding at the end the following:
                    ``(F) the National Imagery and Mapping Senior 
                Executive Service.''.
            (3) In sections 8336(h)(2) and 8414(a)(2), by striking out 
        ``or the Senior Cryptologic Executive Service'' and inserting 
        in lieu thereof ``, the Senior Cryptologic Executive Service, 
        or the National Imagery and Mapping Senior Executive Service''.
    (b) Central Imagery Office Personnel Management Authorities.--
            (1) Nonduplication of coverage by defense intelligence 
        senior executive service.--Section 1601 of title 10, United 
        States Code, is amended--
                    (A) in subsection (a), by striking out ``and the 
                Central Imagery Office'';
                    (B) in subsection (d), by striking out ``or the 
                Central Imagery Office in which the member's expertise 
                and experience may be of benefit to the Defense 
                Intelligence Agency, the Central Imagery Office,'' in 
                the first sentence and inserting in lieu thereof ``in 
                which the member's expertise and experience may be of 
                benefit to the Defense Intelligence Agency''; and
                    (C) in subsection (e), by striking out ``and the 
                Central Imagery Office'' in the first sentence.
            (2) Merit pay.--Section 1602 of such title is amended by 
        striking out ``and Central Imagery Office''.
            (3) Miscellaneous authorities.--Subsection 1604 of such 
        title is amended--
                    (A) in subsection (a)(1)--
                            (i) by striking out ``and the Central 
                        Imagery Office''; and
                            (ii) by striking out ``and Office'';
                    (B) in subsection (b)--
                            (i) in paragraph (1), by striking out ``or 
                        the Central Imagery Office'' in the second 
                        sentence; and
                            (ii) in paragraph (2), by striking out 
                        ``and the Central Imagery Office'';
                    (C) in subsection (c), by striking out ``or the 
                Central Imagery Office'';
                    (D) in subsection (d)(1), by striking out ``and the 
                Central Imagery Office'';
                    (E) in subsection (e)--
                            (i) in paragraph (1), by striking out ``or 
                        the Central Imagery Office''; and
                            (ii) in paragraph (5) by striking out ``, 
                        the Director of the Defense Intelligence Agency 
                        (with respect to employees of the Defense 
                        Intelligence Agency), and the Director of the 
                        Central Imagery Office (with respect to 
                        employees of the Central Imagery Office)'' and 
                        inserting in lieu thereof ``and the Director of 
                        the Defense Intelligence Agency (with respect 
                        to employees of the Defense Intelligence 
                        Agency)'';
                    (F) in subsection (f)(3), by striking out ``and 
                Central Imagery Office''; and
                    (G) in subsection (g)--
                            (i) by striking out ``or the Central 
                        Imagery Office''; and
                            (ii) by striking out ``or Office''.
    (c) 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).
    (d) Applicability of Authority and Procedures for Imposing Certain 
Adverse Actions.--Section 7511(b)(8) of title 5, United States Code, is 
amended by striking out ``Central Imagery Office''.

SEC. 925. 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 subtitle, was 
an employee of the Defense Mapping Agency in a career-conditional 
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. 926. 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 subtitle 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 
        subtitle and are to become effective on or after the effective 
        date of this subtitle,
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 subtitle and the amendments 
made by this subtitle 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 subtitle takes effect, with respect to function of that element 
transferred by section 922, 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 subtitle 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 subtitle had not been enacted.
    (c) Severability.--If any provision of this subtitle (or any 
amendment made by this subtitle), or the application of such provision 
(or amendment) to any person or circumstance is held unconstitutional, 
the remainder of this subtitle (or of the amendments made by this 
subtitle) shall not be affected by that holding.

SEC. 927. DEFINITIONS.

    In this part, the terms ``function'', ``imagery'', ``imagery 
intelligence'', and ``geospatial information'' have the meanings given 
those terms in section 461 of title 10, United States Code, as added by 
section 921.

SEC. 928. 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.

           PART II--CONFORMING AMENDMENTS AND EFFECTIVE DATES

SEC. 931. REDESIGNATION AND REPEALS.

    (a) Redesignation.--Chapter 23 of title 10, United States Code (as 
redesignated by section 921(a)(1)) is amended by redesignating the 
section in that chapter as section 481.
    (b) Repeal of Superseded Law.--Chapter 167 of such title, as 
amended by section 921(b), is repealed.

SEC. 932. REFERENCES.

    (a) Title 5, United States Code.--Title 5, United States Code, is 
amended as follows:
            (1) Central imagery office.--In 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), by striking out ``Central Imagery 
        Office'' and inserting in lieu thereof ``National Imagery and 
        Mapping Agency''.
            (2) Director, central imagery office.--In section 
        6339(a)(2)(E), 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) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
            (1) Central imagery office.--In section 1599(f)(4), by 
        striking out ``Central Imagery Office'' and inserting in lieu 
        thereof ``National Imagery and Mapping Agency''.
            (2) Defense mapping agency.--In sections 451(1), 452, 453, 
        454, and 455 (in subsections (a) and (b)(1)(C)), and 456, as 
        redesignated by section 921(b), by striking out ``Defense 
        Mapping Agency'' each place it appears and inserting in lieu 
        thereof ``National Imagery and Mapping Agency''.
    (c) Other Laws.--
            (1) National security act of 1947.--Section 3(4)(E) of the 
        National Security Act of 1947 (50 U.S.C. 401a(4)(E) is amended 
        by striking out ``Central Imagery Office'' and inserting in 
        lieu thereof ``National Imagery and Mapping Agency''.
            (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) is amended by striking out ``Central Imagery 
        Office'' and inserting in lieu thereof ``National Imagery and 
        Mapping Agency''.
            (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)) is amended by 
        striking out ``Central Imagery Office'' and inserting in lieu 
        thereof ``National Imagery and Mapping Agency''.
    (d) 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. 933. HEADINGS AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--
            (1) Heading.--The heading of chapter 83 of title 10, United 
        States Code, is amended to read as follows:

    ``CHAPTER 83--DEFENSE INTELLIGENCE AGENCY CIVILIAN PERSONNEL''.

            (2) Clerical amendments.--(A) The table of chapters at the 
        beginning of subtitle A of title 10, United States Code, is 
        amended--
                    (i) 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'';
                    (ii) by striking out the item relating to chapter 
                83 and inserting in lieu thereof the following:

``83. Defense Intelligence Agency Civilian Personnel........    1601'';
                and
                    (iii) by striking out the item relating to chapter 
                167.
            (B) 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'';
            (C) The item relating to chapter 83 in the table of 
        chapters at the beginning of part II of such subtitle is 
        amended to read as follows:

``83. Defense Intelligence Agency Civilian Personnel........    1601''.
            (D) The table of chapters at the beginning of part IV of 
        such subtitle is amended by striking out the item relating to 
        chapter 167.
            (E) The item in the table of sections at the beginning of 
        chapter 23 of title 10, United States Code (as redesignated by 
        section 921), is amended to read as follows:

``481. Racial and ethnic issues; biennial survey; biennial report.''.
    (b) Title 44, United States Code.--
            (1) Section heading.--The heading of section 1336 of title 
        44, United States Code, is amended to read as follows:
``Sec. 1336. National Imagery and Mapping Agency: special 
              publications''.
            (2) Clerical amendment.--The item relating to such 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.''.
    (c) National Security Act of 1947.--(1) The heading of section 106 
of the National Security Act of 1947 (50 U.S.C. 403-6) is amended to 
read as follows:

         ``consultation with regard to certain appointments''.

    (2) The item relating to such section in the table of contents in 
the first section of such Act is amended to read as follows:

``Sec. 106. Consultation with regard to certain appointments.''.

SEC. 934. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), this 
subtitle and the amendments made by this subtitle shall take effect on 
the later of October 1, 1996, or the date of the enactment of an Act 
appropriating funds for fiscal year 1997 for the National Imagery and 
Mapping Agency.
    (b) Exception.--Section 928 shall take effect on the date of the 
enactment of this Act.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination 
by the Secretary of Defense that such action is necessary in the 
national interest, the Secretary may transfer amounts of authorizations 
made available to the Department of Defense in this division for fiscal 
year 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.
    (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. 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 for 
        fiscal year 1996 in the National Defense Authorization Act for 
        Fiscal Year 1996 (Public Law 104-106).

SEC. 1003. 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. 1004. USE OF FUNDS TRANSFERRED TO THE COAST GUARD.

    (a) Limitation.--Funds appropriated to the Department of Defense 
for fiscal year 1997 that are transferred 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.
    (b) Certification Required.--Funds described in subsection (a) 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 as described in subsection 
(a).
    (c) GAO Audit.--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 the funds 
        are being used in accordance with the limitation in subsection 
        (a); and
            (2) notify the congressional defense committees of any use 
        of such funds that, in the judgment of the Comptroller General, 
        is a significant violation of such limitation.

SEC. 1005. USE OF MILITARY-TO-MILITARY CONTACTS FUNDS FOR PROFESSIONAL 
              MILITARY EDUCATION AND TRAINING.

    Section 168(c) of title 10, United States Code, is amended by 
adding at the end the following:
            ``(9) Military education and training for military and 
        civilian personnel of foreign countries (including 
        transportation expenses, expenses for translation services, and 
        administrative expenses to the extent that the expenses are 
        related to the providing of such education and training to such 
        personnel).''.

SEC. 1006. PAYMENT OF CERTAIN EXPENSES RELATING TO HUMANITARIAN AND 
              CIVIC ASSISTANCE.

    Section 401(c) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) Expenses covered by paragraph (1) include the following 
expenses incurred in the providing of assistance described in 
subsection (e)(5):
            ``(A) Travel, transportation, and subsistence expenses of 
        Department of Defense personnel providing the assistance.
            ``(B) The cost of any equipment, services, or supplies 
        acquired for the purpose of providing the assistance.''.

SEC. 1007. PROHIBITION ON EXPENDITURE OF DEPARTMENT OF DEFENSE FUNDS BY 
              OFFICIALS OUTSIDE THE DEPARTMENT.

    (a) Prohibition.--Section 2215 of title 10, United States Code, is 
amended to read as follows:
``Sec. 2215. Prohibition on expenditure of Department of Defense 
              intelligence funds by officials outside the department
    ``(a) In General.--Funds appropriated for the Department of Defense 
for intelligence activities of that department may not be obligated or 
expended by an officer or employee of the United States who is not an 
officer or employee of the Department of Defense.
    ``(b) Delegation of Authority Prohibited.--An officer or employee 
of the Department of Defense may not delegate to an officer or employee 
of the United States who is not an officer or employee of the 
Department of Defense any authority to obligate or expend funds 
described in subsection (a).''.
    (b) Clerical Amendment.--The item relating to such section in the 
table of sections at the beginning of chapter 131 is amended to read as 
follows:

``2215. Prohibition on expenditure of Department of Defense 
                            intelligence funds by officials outside the 
                            department.''.

SEC. 1008. PROHIBITION ON USE OF FUNDS FOR OFFICE OF NAVAL INTELLIGENCE 
              REPRESENTATION OR RELATED ACTIVITIES.

    None of the funds authorized to be appropriated by this Act or 
otherwise made available for the Navy for fiscal year 1997 may be 
obligated or expended by the Office of Naval Intelligence for official 
representation activities or related activities.

SEC. 1009. REIMBURSEMENT OF DEPARTMENT OF DEFENSE FOR COSTS OF DISASTER 
              ASSISTANCE PROVIDED OUTSIDE THE UNITED STATES.

    Section 404 of title 10, United States Code, is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Reimbursement Policy.--It is the sense of Congress that, 
whenever the President directs the Secretary of Defense to provide 
disaster assistance outside the United States under subsection (a)--
            ``(1) the President should direct the Administrator of the 
        Agency for International Development to reimburse the 
        Department of Defense for the cost to the Department of Defense 
        of the assistance provided; and
            ``(2) a reimbursement by the Administrator should be paid 
        out of funds available under chapter 9 of part I of the Foreign 
        Assistance Act of 1961 for international disaster assistance 
        for the fiscal year in which the cost is incurred.''.

SEC. 1010. FISHER HOUSE TRUST FUND FOR THE NAVY.

    (a) Authority.--Section 2221 of title 10, United States Code, is 
amended--
            (1) in subsection (a), by adding at the end 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) in subsection (a), by adding at the end the following:
            ``(94) Fisher House Trust Fund, Department of the Navy.''; 
        and
            (2) in subsection (b)(2), by adding at the end the 
        following:
            ``(D) Fisher House Trust Fund, Department of the Navy.''.

SEC. 1011. 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).''.
    (2)(A) Chapter 17 of title 14, United States Code, is amended by 
adding at the end the following:
``Sec. 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:

``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''.
    (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. 1012. 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'';
            (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. 1013. CHECK CASHING AND EXCHANGE TRANSACTIONS WITH CREDIT UNIONS 
              OUTSIDE THE UNITED STATES.

    Section 3342(b) of title 31, United States Code, is amended--
            (1) by striking out ``and'' at the end of paragraph (5);
            (2) by striking out the period at the end of paragraph (6) 
        and inserting in lieu thereof ``; and''; and
            (3) by adding at the end the following:
            ``(7) a Federal credit union (as defined in section 101(1) 
        of the Federal Credit Union Act (12 U.S.C. 1752(1)) that is 
        operating at Department of Defense invitation in a foreign 
        country where contractor-operated military banking facilities 
        are not available.''.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1021. AUTHORITY TO TRANSFER NAVAL VESSELS.

    (a) Egypt.--The Secretary of the Navy may transfer to the 
Government of Egypt the ``OLIVER HAZARD PERRY'' frigate GALLERY. Such 
transfer shall be on a sales basis under section 21 of the Arms Export 
Control Act (22 U.S.C. 2761; relating to the foreign military sales 
program).
    (b) Mexico.--The Secretary of the Navy may transfer to the 
Government of Mexico the ``KNOX'' class frigates STEIN (FF 1065) and 
MARVIN SHIELDS (FF 1066). Such transfers shall be on a sales basis 
under section 21 of the Arms Export Control Act (22 U.S.C. 2761).
    (c) New Zealand.--The Secretary of the Navy may transfer to the 
Government of New Zealand the ``STALWART'' class ocean surveillance 
ship TENACIOUS. Such transfer shall be on a sales basis under section 
21 of the Arms Export Control Act (22 U.S.C. 2761).
    (d) Portugal.--The Secretary of the Navy may transfer to the 
Government of Portugal the ``STALWART'' class ocean surveillance ship 
AUDACIOUS. Such transfer shall be on a grant basis under section 516 of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2321j; relating to 
transfers of excess defense articles).
    (e) Taiwan.--The Secretary of the Navy may transfer to the Taipei 
Economic and Cultural Representative Office in the United States (which 
is the Taiwan instrumentality designated pursuant to section 10(a) of 
the Taiwan Relations Act) the following:
            (1) The ``KNOX'' class frigates AYLWIN (FF 1081), PHARRIS 
        (FF 1094), and VALDEZ (FF 1096). Such transfers shall be on a 
        sales basis under section 21 of the Arms Export Control Act (22 
        U.S.C. 2761).
            (2) The ``NEWPORT'' class tank landing ship NEWPORT (LST 
        1179). Such transfer shall be on a lease basis under section 61 
        of the Arms Export Control Act (22 U.S.C. 2796).
    (f) Thailand.--The Secretary of the Navy may transfer to the 
Government of Thailand the ``KNOX'' class frigate OUELLET (FF 1077). 
Such transfer shall be on a sales basis under section 21 of the Arms 
Export Control Act (22 U.S.C. 2761).
    (g) Costs of Transfer.--Any expense of the United States in 
connection with a transfer authorized by this section shall be charged 
to the recipient.
    (h) Repair and Refurbishment of Vessels.--The Secretary of the Navy 
shall require, to the maximum extent possible, as a condition of a 
transfer of a vessel under this section, that the country to which the 
vessel is transferred have such repair or refurbishment of the vessel 
as is needed, before the vessel joins the naval forces of that country, 
performed at a shipyard located in the United States, including a 
United States Navy shipyard.
    (i) Expiration of Authority.--Any authority for transfer granted by 
this section shall expire at the end of the 2-year period beginning on 
the date of the enactment of this Act.

SEC. 1022. 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. Such 
transfers shall be made without reimbursement to the United States.
    (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. 1023. 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. 1024. CONTRACT OPTIONS FOR LMSR VESSELS.

    (a) Findings.--Congress reaffirms the findings set forth in section 
1013(a) of the National Defense Authorization Act for Fiscal Year 1996 
(Public Law 104-106; 110 Stat. 422), and makes the following 
modifications and supplemental findings:
            (1) Since the findings set forth in section 1013(a) of such 
        Act were originally formulated, the Secretary of the Navy has 
        exercised options for the acquisition of two of the six 
        additional large, medium-speed, roll-on/roll-off (LMSR) vessels 
        that may be acquired by exercise of options provided for under 
        contracts covering the acquisition of a total of 17 LMSR 
        vessels.
            (2) Therefore, under those contracts, the Secretary has 
        placed orders for the acquisition of 13 LMSR vessels and has 
        remaining options for the acquisition of four more LMSR 
        vessels, all of which would be new construction vessels.
            (3) The remaining options allow the Secretary to place 
        orders for one vessel to be constructed at each of two 
        shipyards for award before December 31, 1996, and December 31, 
        1997, respectively.
    (b) Sense of Congress.--Congress also reaffirms its declaration of 
the sense of Congress, as set forth in section 1013(b) of Public Law 
104-106, that the Secretary of the Navy should plan for, and budget to 
provide for, the acquisition as soon as possible of a total of 19 
large, medium-speed, roll-on/roll-off (LMSR) vessels (the number 
determined to be required in the report entitled ``Mobility 
Requirements Study Bottom-Up Review Update'', submitted by the 
Secretary of Defense to Congress in April 1995), rather than only 17 
such vessels (which is the number of vessels under contract as of April 
1996).
    (c) Additional New Construction Contract Option.--The Secretary of 
the Navy should negotiate with each of the two shipyards holding new 
construction contracts referred to in subsection (a)(1) (Department of 
the Navy contracts numbered N00024-93-C-2203 and N00024-93-C-2205) for 
an option under each such contract for construction of one additional 
such LMSR vessel, with such option to be available to the Secretary for 
exercise not earlier than fiscal year 1998, subject to the availability 
of funds authorized and appropriated for such purpose. Nothing in this 
subsection shall be construed to preclude the Secretary of the Navy 
from competing the award of the two options between the two shipyards 
holding new construction contracts referred to in subsection (a)(1).
    (d) Report.--The Secretary of the Navy shall submit to the 
congressional defense committees, by March 31, 1997, a report stating 
the intentions of the Secretary regarding the acquisition of options 
for the construction of two additional LMSR vessels as described in 
subsection (c).
    (e) Repeal of Superseded Provision.--Section 1013 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat 422) is amended by striking out subsection (c).

                  Subtitle C--Counter-Drug Activities

SEC. 1031. AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG 
              ACTIVITIES OF MEXICO.

    (a) Authority To Provide Additional Support.--The Secretary of 
Defense may, during fiscal year 1997, provide the Government of Mexico 
the support described in subsection (b) for the counter-drug activities 
of the Government of Mexico. Such support shall be in addition to 
support provided the Government of Mexico under any other provision of 
law.
    (b) Types of Support.--The Secretary may provide the following 
support under subsection (a):
            (1) The transfer of spare parts and non-lethal equipment 
        and materiel, including radios, night vision goggles, global 
        positioning systems, uniforms, command, control, 
        communications, and intelligence (C<SUP>3I) integration 
        equipment, detection equipment, and monitoring equipment.
            (2) The maintenance and repair of equipment of the 
        Government of Mexico that is used for counter-narcotics 
        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 (10 U.S.C. 
374 note) shall apply to the provision of support under this section.
    (d) Funding.--Of the amounts authorized to be appropriated for 
fiscal year 1997 for the Department of Defense for drug interdiction 
and counter-drug activities, not more than $10,000,000 shall be 
available in that fiscal year for the provision of support under this 
section.

SEC. 1032. LIMITATION ON DEFENSE FUNDING OF THE NATIONAL DRUG 
              INTELLIGENCE CENTER.

    (a) Limitation on Use of Funds.--Except as provided in subsection 
(b), funds appropriated or otherwise made available for the Department 
of Defense pursuant to this or any other Act may not be obligated or 
expended for the National Drug Intelligence Center, Johnstown, 
Pennsylvania.
    (b) Exception.--If the Attorney General operates the National Drug 
Intelligence Center using funds available for the Department of 
Justice, the Secretary of Defense may continue to provide Department of 
Defense intelligence personnel to support intelligence activities at 
the Center. The number of such personnel providing support to the 
Center after the date of the enactment of this Act may not exceed the 
number of the Department of Defense intelligence personnel who are 
supporting intelligence activities at the Center on the day before such 
date.

SEC. 1033. INVESTIGATION OF THE NATIONAL DRUG INTELLIGENCE CENTER.

    (a) Investigation Required.--The Inspector General of the 
Department of Defense, the Inspector General of the Department of 
Justice, the Inspector General of the Central Intelligence Agency, and 
the Comptroller General of the United States shall--
            (1) jointly investigate the operations of the National Drug 
        Intelligence Center, Johnstown, Pennsylvania; and
            (2) not later than March 31, 1997, jointly submit to the 
        President pro tempore of the Senate and the Speaker of the 
        House of Representatives a report on the results of the 
        investigation.
    (b) Content of Report.--The joint report shall contain a 
determination regarding whether there is a significant likelihood that 
the funding of the operation of the National Drug Intelligence Center, 
a domestic law enforcement program, through an appropriation under the 
control of the Director of Central Intelligence will result in a 
violation of the National Security Act of 1947 or Executive Order 
12333.

           Subtitle D--Matters Relating to Foreign Countries

SEC. 1041. AGREEMENTS FOR EXCHANGE OF DEFENSE PERSONNEL BETWEEN THE 
              UNITED STATES AND FOREIGN COUNTRIES.

    (a) Exchange Authority.--Subchapter II of chapter 138 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 2350l. Exchange of defense personnel between the United States 
              and foreign countries
    ``(a) International Exchange Agreements Authorized.--The Secretary 
of Defense is authorized to enter into agreements with the governments 
of allies of the United States and other friendly foreign countries for 
the exchange of military and civilian personnel of the Department of 
Defense and military and civilian personnel of the defense ministries 
of such foreign governments.
    ``(b) Assignment of Personnel.--(1) Pursuant to an agreement 
entered into under subsection (a), 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 that foreign government. Positions 
to which exchanged personnel are assigned may include positions of 
instructors.
    ``(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) A specific position and the individual to be assigned to that 
position shall be acceptable to both governments.
    ``(c) Reciprocity of Personnel Qualifications Required.--Each 
government shall be required under an agreement authorized by 
subsection (a) to provide personnel having 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, cost of language or other 
training, and other costs for its own personnel in accordance with the 
laws and regulations of such government that pertain to such matters.
    ``(2) The requirement in paragraph (1) does not apply to the 
following costs:
            ``(A) Cost of temporary duty directed by the host 
        government.
            ``(B) Costs of training programs conducted to familiarize, 
        orient, or certify exchanged personnel regarding unique aspects 
        of the exchanged personnel's assignments.
            ``(C) Costs incident to the use of host government 
        facilities 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.--Nothing in this section 
limits any authority of the secretaries of the military departments to 
enter into an agreement with the government of a foreign country to 
provide for exchange of members of the armed forces and military 
personnel of the foreign country except that subsections (c) and (d) 
shall apply in the exercise of that authority. The Secretary of Defense 
may prescribe regulations for the application of such subsections in 
the exercise of such authority.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter II of such chapter is amended by adding at the end the 
following new item:

``2350l. Exchange of defense personnel between the United States and 
                            foreign countries.''.

SEC. 1042. AUTHORITY FOR RECIPROCAL EXCHANGE OF PERSONNEL BETWEEN THE 
              UNITED STATES AND FOREIGN COUNTRIES FOR FLIGHT TRAINING.

    Section 544 of the Foreign Assistance Act of 1961 (22 U.S.C. 2347c) 
is amended--
            (1) by inserting ``, and for attendance of foreign military 
        personnel at flight training schools or programs (including 
        test pilot schools) in the United States,'' after ``(other than 
        service academies)''; and
            (2) by striking out ``and comparable institutions'' and 
        inserting in lieu thereof `` or flight training schools or 
        programs, as the case may be, and comparable institutions, 
        schools, or programs''.

SEC. 1043. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES.

    Section 1505 of the Weapons of Mass Destruction Control Act of 1992 
(title XV of Public Law 104-484; 22 U.S.C. 5859a) is amended--
            (1) in subsection (d)(3)--
                    (A) by striking out ``fiscal year 1995, or'' and 
                inserting in lieu thereof ``fiscal year 1995,''; and
                    (B) by inserting before the period at the end the 
                following: ``, $15,000,000 for fiscal year 1997, or 
                $15,000,000 for fiscal year 1998''; and
            (2) in subsection (f), by striking out ``fiscal year 1996'' 
        and inserting in lieu thereof ``fiscal year 1998''.

            Subtitle E--Miscellaneous Reporting Requirements

SEC. 1051. ANNUAL REPORT ON EMERGING OPERATIONAL CONCEPTS.

    (a) Report Required.--Not later than March 1 of each year, the 
Chairman of the Joint Chiefs of Staff 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. 
The report shall contain a description, for the year preceding the year 
in which submitted, of the following:
            (1) The process undertaken in each of the Army, Navy, Air 
        Force, and Marine Corps to define and develop doctrine, 
        operational concepts, organizational concepts, and acquisition 
        strategies based on--
                    (A) the potential of emerging technologies for 
                significantly improving the operational effectiveness 
                of that armed force;
                    (B) changes in the international order that may 
                necessitate changes in the operational capabilities of 
                that armed force;
                    (C) emerging capabilities of potential adversary 
                states; and
                    (D) changes in defense budget projections that put 
                existing acquisition programs of the service at risk.
            (2) The manner in which the process undertaken in each of 
        the Army, Navy, Air Force, and Marine Corps is harmonized with 
        a joint vision and with the similar processes of the other 
        armed forces 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 process undertaken by each of 
        the Army, Navy, Air Force, and Marine Corps is coordinated 
        through the Joint Requirements Oversight Council or another 
        entity to ensure that the results of the process are considered 
        in the planning, programming, and budgeting process of the 
        Department of Defense.
            (4) Proposals under consideration by the Joint Requirements 
        Oversight Council or other entity within the Department of 
        Defense to modify the roles and missions of any of the Army, 
        Navy, Air Force, and Marine Corps as a result of the processes 
        described in paragraph (1).
    (b) First Report.--The first report under this section shall be 
submitted not later than March 1, 1997.
    (c) Termination of Requirement After Fourth Report.--
Notwithstanding subsection (a), no report is required under this 
section after 2000.

SEC. 1052. 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 shall be submitted not later than 
March 1, 1997.

SEC. 1053. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED 
              FORCES.

    (a) Requirement.--Not later than January 31, 1997, the Chairman of 
the Joint Chiefs of Staff shall submit to the congressional defense 
committees a report on the military readiness requirements of the 
active and reserve components of the Armed Forces (including combat 
units, combat support units, and combat service support units) prepared 
by the officers referred to in subsection (b). The report shall assess 
such requirements under a tiered readiness and response system that 
categorizes a given unit according to the likelihood that it will be 
required to respond to a military conflict and the time in which it 
will be required to respond.
    (b) Officers.--The report required by subsection (a) shall be 
prepared jointly by the Chief of Staff of the Army, the Chief of Naval 
Operations, the Chief of Staff of the Air Force, the Commandant of the 
Marine Corps, and the Commander of the Special Operations Command.
    (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 contingency.
            (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 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 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) Form of Report.--The report under this section shall be 
submitted in unclassified form but may contain a classified annex.

                       Subtitle F--Other Matters

SEC. 1061. 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 ``two-
        thirds 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 Nonattorney 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'' in the subsection caption and inserting in lieu thereof 
``certain''.

SEC. 1062. 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.
            (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 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) START II Treaty Defined.--In 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 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'').

SEC. 1063. CORRECTION OF REFERENCES TO DEPARTMENT OF DEFENSE 
              ORGANIZATIONS.

    (a) North American Aerospace Defense Command.--Section 162 of title 
10, United States Code, is amended in paragraphs (1), (2), and (3) of 
subsection (a) by striking out ``North American Air Defense Command'' 
and inserting in lieu thereof ``North American Aerospace Defense 
Command''.
    (b) Defense Distribution Center, Anniston.--The Corporation for the 
Promotion of Rifle Practice and Firearms Safety Act (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)).

SEC. 1064. AUTHORITY OF CERTAIN MEMBERS OF THE ARMED FORCES TO PERFORM 
              NOTARIAL OR CONSULAR ACTS.

    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 for training'' and inserting in lieu 
        thereof ``of the armed forces, including members of reserve 
        components who are judge advocates (whether or 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 members of reserve 
        components acting as such an adjutant (whether or 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 members 
        of reserve components (whether or not in a duty status),''.

SEC. 1065. TRAINING OF MEMBERS OF THE UNIFORMED SERVICES AT NON-
              GOVERNMENT FACILITIES.

    (a) Use of Non-Government Facilities.--Section 4105 of title 5, 
United States Code, is amended--
            (1) by inserting ``and members of a uniformed service under 
        the jurisdiction of the head of the agency'' after ``employees 
        of the agency''; and
            (2) by adding at the end the following: ``For the purposes 
        of this section, the term `agency' includes a military 
        department.''.
    (b) Expenses of Training.--Section 4109 of such title is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking out ``under regulations prescribed under 
                section 4118(a)(8) of this title and'';
                    (B) in paragraph (1), by inserting after ``an 
                employee of the agency'' the following: ``, or the pay 
                of a member of a uniformed service within the agency, 
                who is''; and
                    (C) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by inserting ``or member of a uniformed 
                        service'' after ``reimburse the employee'';
                            (ii) in subparagraph (A), by striking out 
                        ``commissioned officers of the National Oceanic 
                        and Atmospheric Administration'' and inserting 
                        in lieu thereof ``a member of a uniformed 
                        service''; and
                            (iii) in subparagraph (B), by striking out 
                        ``commissioned officers of the National Oceanic 
                        and Atmospheric Administration'' and inserting 
                        in lieu thereof ``a member of a uniformed 
                        service''; and
            (2) by adding at the end the following:
    ``(d) In the exercise of authority under subsection (a) with 
respect to an employee of an agency, the head of the agency shall 
comply with regulations prescribed under section 4118(a)(8) of this 
title.
    ``(e) For the purposes of this section, the term `agency' includes 
a military department.''.

SEC. 1066. 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.--Section 1 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'' each 
                place that phrase 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 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 amounts 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 amounts 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:
            ``(A) The term `uniformed services' has the meaning given 
        such term in section 1072(1) of title 10, United States Code.
            ``(B) The term `tortious conduct' includes any tortious 
        omission.
            ``(C) 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.
            ``(D) The term `Secretary concerned' means--
                    ``(i) 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);
                    ``(ii) the Secretary of Transportation, with 
                respect to the Coast Guard when it is not operating as 
                a service in the Navy;
                    ``(iii) the Secretary of Health and Human Services, 
                with respect to the Commissioned Corps of the Public 
                Health Service; and
                    ``(iv) the Secretary of Commerce, with respect to 
                the Commissioned Corps of the National Oceanic and 
                Atmospheric Administration.''.
    (b) Conforming Amendments.--Section 1 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 that it appears.
    (c) Applicability.--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 occurred before, on, or after that date.

SEC. 1067. DISPLAY OF STATE FLAGS AT INSTALLATIONS AND FACILITIES OF 
              THE DEPARTMENT OF DEFENSE.

    (a) In General.--Except as provided in subsection (b) and 
notwithstanding any other provision of law, no funds appropriated or 
otherwise made available to the Department of Defense may be used to 
adopt or enforce any rule or other prohibition that discriminates 
against the display of the official flag of a particular State, 
territory, or possession of the United States at an official ceremony 
at any installation or other facility of the Department of Defense at 
which the official flags of the other States, territories, or 
possessions of the United States are being displayed.
    (b) Position and Manner of Display.--The display of an official 
flag referred to in subsection (a) at an installation or other facility 
of the Department shall be 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).

SEC. 1068. GEORGE C. MARSHALL EUROPEAN CENTER FOR STRATEGIC SECURITY 
              STUDIES.

    (a) Authority To Accept Funds, Materials, and Services.--(1) The 
Secretary of Defense may, on behalf of the George C. Marshall European 
Center for Strategic Security Studies, accept gifts or donations of 
funds, materials (including research materials), property, and services 
(including lecture services and faculty services) from foreign 
governments, foundations and other charitable organizations in foreign 
countries, and individuals in foreign countries in order to defray the 
costs of the operation of the Center.
    (2) Funds received by the Secretary under paragraph (1) shall be 
credited to appropriations available for the Department of Defense for 
the George C. Marshall European Center for Strategic Security Studies. 
Funds so credited shall be merged with the appropriations to which 
credited and shall be available for the Center for the same purposes 
and same period as the appropriations with which merged.
    (b) Participation of Foreign Nations Otherwise Prohibited.--(1) The 
Secretary may permit representatives of a foreign government to 
participate in a program of the George C. Marshall European Center for 
Strategic Security Studies, notwithstanding any other provision of law 
that would otherwise prevent representatives of that foreign government 
from participating in the program. Before doing so, the Secretary shall 
determine, in consultation with the Secretary of State, that the 
participation of representatives of that foreign government in the 
program is in the national interest of the United States.
    (2) Not later than January 31 of each year, the Secretary of 
Defense shall, with the assistance of the Director of the Center, 
submit to Congress a report setting forth the foreign governments 
permitted to participate in programs of the Center during the preceding 
year under the authority provided in paragraph (1).
    (c) Waiver of Certain Requirements for Board of Visitors.--(1) The 
Secretary may waive the application of any financial disclosure 
requirement imposed by law to a foreign member of the Board of Visitors 
of the Center if that requirement would otherwise apply to the member 
solely by reason of the service as a member of the Board. The authority 
under the preceding sentence applies only in the case of a foreign 
member who serves on the Board without compensation.
    (2) Notwithstanding any other provision of law, a member of the 
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.

SEC. 1069. 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 (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 Act.
    (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. 1070. MICHAEL O'CALLAGHAN FEDERAL HOSPITAL, LAS VEGAS, NEVADA.

    (a) Findings.--Congress makes the following findings:
            (1) Michael O'Callaghan, former Governor of the State of 
        Nevada, served in three branches of the Armed Forces of the 
        United States, namely, the Army, the Air Force, and the Marine 
        Corps.
            (2) At 16 years of age, Michael O'Callaghan enlisted in the 
        United States Marine Corps to serve during the end of World War 
        II.
            (3) During the Korean conflict, Michael O'Callaghan served 
        successively in the Air Force and the Army and, during such 
        service, suffered wounds in combat that necessitated the 
        amputation of his left leg.
            (4) Michael O'Callaghan was awarded the Silver Star, the 
        Bronze Star with Valor Device, and the Purple Heart for his 
        military service.
            (5) In 1963, Michael O'Callaghan became the first director 
        of the Health and Welfare Department of the State of Nevada.
            (6) In 1970, Michael O'Callaghan became Governor of the 
        State of Nevada and served in that position through 1978, 
        making him one of only five two-term governors in the history 
of the State of Nevada.
            (7) In 1982, Michael O'Callaghan received the Air Force 
        Exceptional Service Award.
            (8) It is appropriate to name the Nellis Federal Hospital, 
        Las Vegas, Nevada, a hospital operated jointly by the 
        Department of Defense, through Nellis Air Force Base, and the 
        Department of Veterans Affairs, through the Las Vegas Veterans 
        Affairs Outpatient Clinic, after Michael O'Callaghan, a man who 
        (A) has served his country with honor in three branches of the 
        Armed Forces, (B) as a disabled veteran knows personally the 
        tragic sacrifices that are so often made in the service of his 
        country in the Armed Forces, and (C) has spent his entire 
        career working to improve the lives of all Nevadans.
    (b) Designation of Michael O'Callaghan Federal Hospital.--The 
Nellis Federal Hospital, a Federal building located at 4700 North Las 
Vegas Boulevard, Las Vegas, Nevada, is designated as the ``Michael 
O'Callaghan Federal Hospital''.
    (c) 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 (b) shall be deemed to be a reference to the 
``Michael O'Callaghan Federal Hospital''.

SEC. 1071. NAMING OF BUILDING AT THE UNIFORMED SERVICES UNIVERSITY OF 
              THE HEALTH SCIENCES.

    It is the sense of the Senate that the Secretary of Defense should 
name Building A at the Uniformed Services University of the Health 
Sciences as the ``David Packard Building''.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

         Subtitle A--Personnel Management, Pay, and Allowances

SEC. 1101. SCOPE OF REQUIREMENT FOR CONVERSION OF MILITARY POSITIONS TO 
              CIVILIAN POSITIONS.

    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 the text of paragraph (1) and inserting 
        in lieu thereof the following: ``By September 30, 1996, the 
        Secretary of Defense shall convert at least 3,000 military 
        positions to civilian positions.'';
            (2) by striking out paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph (2).

SEC. 1102. RETENTION OF CIVILIAN EMPLOYEE POSITIONS AT MILITARY 
              TRAINING BASES TRANSFERRED TO NATIONAL GUARD.

    (a) 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 during fiscal year 1997 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.
    (b) Retention of Employee Positions.--In the case of a military 
training installation described in subsection (a), the Secretary of 
Defense may retain civilian employee positions of the Department of 
Defense at the installation after transfer to the National Guard of a 
State in order to facilitate active and reserve component training at 
the installation. The Secretary, in consultation with the Adjutant 
General of the National Guard of that State, shall determine the extent 
to which positions at that installation are to be retained as positions 
in the Department of Defense.
    (c) Maximum Number of Positions Retained.--The maximum number of 
civilian employee positions retained at an installation under this 
section shall not exceed 20 percent of the Federal civilian workforce 
employed at the installation as of September 8, 1995.
    (d) Removal of Position.--The decision to retain civilian employee 
positions at an installation under this section shall cease to apply to 
a position so retained on the date on which the Secretary certifies to 
Congress that it is no longer necessary to retain the position in order 
to ensure that effective support is provided at the installation for 
active and reserve component training.

SEC. 1103. CLARIFICATION OF LIMITATION ON FURNISHING CLOTHING OR PAYING 
              A UNIFORM ALLOWANCE TO 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. 1104. 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:
``Sec. 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.
    ``(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 that Act (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 
Federal 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 inserting after the item relating to section 
1599a the following new item:

``1599b. Employees abroad: travel expenses; health care.''.

SEC. 1105. 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:
``Sec. 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. 1106. 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--
            (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. 1107. EMPLOYMENT AND COMPENSATION OF CIVILIAN FACULTY MEMBERS AT 
              CERTAIN DEPARTMENT OF DEFENSE SCHOOLS.

    (a) Faculties.--Section 1595(c) of title 10, United States Code, is 
amended by inserting after paragraph (3) the following new paragraph 
(4):
            ``(4) The English Language Center of the Defense Language 
        Institute.
            ``(5) The Asia-Pacific Center for Security Studies.''.
    (b) Certain Administrators.--Such section 1595 is amended by adding 
at the end the following:
    ``(f) Application to Director and Deputy Director at Asia-Pacific 
Center for Security Studies.--In the case of the Asia-Pacific Center 
for Security Studies, this section also applies with respect to the 
Director and the Deputy Director.''.

SEC. 1108. 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:
    ``(7) The Secretary may provide for reimbursement of a school board 
member for expenses incurred by the member for travel, transportation, 
program fees, and activity fees that the Secretary determines are 
reasonable and necessary for the performance of school board duties by 
the member.''.

SEC. 1109. EXTENSION OF AUTHORITY FOR CIVILIAN EMPLOYEES OF DEPARTMENT 
              OF DEFENSE TO PARTICIPATE VOLUNTARILY IN REDUCTIONS IN 
              FORCE.

    Section 3502(f)(5) of title 5, United States Code, is amended by 
striking out ``September 30, 1996'' and inserting in lieu thereof 
``September 30, 2001''.

SEC. 1110. COMPENSATORY TIME OFF FOR OVERTIME WORK PERFORMED BY WAGE-
              BOARD EMPLOYEES.

    Section 5543 of title 5, United States Code, is amended by adding 
at the end the following:
    ``(c) 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 of this title or section 
7 of the Fair Labor Standards Act of 1938 for an equal amount of time 
spent in irregular or occasional overtime work.''.

SEC. 1111. 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 new 
subsection:
    ``(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 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. 1112. WAIVER OF REQUIREMENT FOR REPAYMENT OF VOLUNTARY SEPARATION 
              INCENTIVE PAY BY FORMER DEPARTMENT OF DEFENSE EMPLOYEES 
              REEMPLOYED BY THE GOVERNMENT WITHOUT PAY.

    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.''.

SEC. 1113. FEDERAL HOLIDAY OBSERVANCE RULES FOR DEPARTMENT OF DEFENSE 
              EMPLOYEES.

    (a) Holidays Occurring on Nonworkdays.--Section 6103(b) of title 5, 
United States Code, is amended by inserting after paragraph (2) the 
following new paragraph:
            ``(3) In the case of a full-time employee of the Department 
        of Defense, the following rules apply:
                    ``(A) When a legal public holiday occurs on a 
                Sunday that is not a regular weekly workday for an 
                employee, the employee's next workday is the legal 
                public holiday for the employee.
                    ``(B) When a legal public holiday occurs on a 
                regular weekly nonworkday that is administratively 
                scheduled for an employee instead of Sunday, the 
                employee's next workday is the legal public holiday for 
                the employee.
                    ``(C) When a legal public holiday occurs on an 
                employee's regular weekly nonworkday immediately 
                following a regular weekly nonworkday that is 
                administratively scheduled for the employee instead of 
                Sunday, the employee's next workday is the legal public 
                holiday for the employee.
                    ``(D) When a legal public holiday occurs on an 
                employee's regular weekly nonworkday that is not a 
                nonworkday referred to in subparagraph (A), (B), or 
                (C), the employee's preceding workday is the legal 
                public holiday for the employee.
                    ``(E) The Secretary concerned (as defined in 
                section 101(a) of title 10) may schedule a legal public 
                holiday for an employee to be on a different day than 
                the one that would otherwise apply for the employee 
                under subparagraph (A), (B), (C), or (D).
                    ``(F) If a legal public holiday for an employee 
                would be different under paragraph (1) or (2) than the 
                day determined under this paragraph, the legal public 
                holiday for the employee shall be the day that is 
                determined under this paragraph.''.
    (b) Technical and Conforming Amendments.--Section 6103(b) of such 
title, as amended by subsection (a), is further amended--
            (1) in paragraph (1), by striking out ``legal public 
        holiday for--'' and all that follows through the period and 
        inserting in lieu thereof ``legal public holiday for employees 
        whose basic workweek is Monday through Friday.''; and
            (2) in the matter following paragraph (3), by striking out 
        ``This subsection, except subparagraph (B) of paragraph (1),'' 
        and inserting in lieu thereof ``Paragraphs (1) and (2)''.

SEC. 1114. 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) Use of Funds for Long-Distance Charges.--Subsection (b) of 
section 1348 of title 31, United States Code, is amended to read as 
follows:
    ``(b) Appropriations of an agency are available to pay charges 
assessed by commercial telecommunications carriers for long-distance 
telephone services provided to individuals travelling on official 
business of the agency if charges for such services are included in a 
travel expense report and approved by the official of the agency 
responsible for approving travel expense reports.''.
    (c) 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.

 Subtitle B--Defense Economic Adjustment, Diversification, Conversion, 
                           and Stabilization

SEC. 1121. 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 Secretary of the Navy, the Secretary of the Air 
Force, and the Director of the Office of Personnel Management, may 
establish a pilot program under which Federal retirement benefits are 
provided in accordance with this section to persons who convert from 
Federal employment in the Department of the Navy or the Department of 
the Air Force 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 installations to be 
covered by a pilot program under this section.
    (b) Eligible Transferred Employees.--(1) A person is a transferred 
employee eligible for 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 in a 
        function recommended to be privatized as part of the closure 
        and realignment of military installations pursuant to section 
        2903(e) of the Defense Base Closure and Realignment Act of 1990 
        (title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) and 
        while covered under the Civil Service Retirement System, 
        separated from Federal service after being notified that the 
        employee would be separated in a reduction-in-force resulting 
        from conversion from performance of a function by Department of 
        Defense employees at that military installation to performance 
        of that function by a defense contractor at that installation 
        or in the vicinity of that installation;
            (B) is employed by the defense contractor within 60 days 
        following such separation to perform substantially the same 
        function performed before the separation;
            (C) 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);
            (D) at the time separated from Federal service, was not 
        eligible for an immediate annuity under the Civil Service 
        Retirement System; and
            (E) does not withdraw retirement contributions under 
        section 8342 of title 5, United States Code.
    (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 (A) 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 Transferred Employees.--In the case of a 
transferred employee covered by a pilot program under this section, 
payment of a deferred annuity for which the transferred 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 transferred employee attains early deferred retirement 
age, notwithstanding the age requirement under that section.
    (d) Computation of Average Pay.--(1)(A) This paragraph applies to a 
transferred 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 transferred employee referred to in subparagraph 
(A), the average pay of the transferred 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 transferred employee 
attains early deferred retirement age.
    (C) The average pay of a transferred employee, as adjusted under 
subparagraph (B), may not exceed the amount to which an annuity of the 
transferred 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).
    (2)(A) This paragraph applies to a transferred 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 
transferred employee referred to in subparagraph (A), the average pay 
of the transferred 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 transferred 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 transferred 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 
transferred employee, and any survivor of a transferred employee, when 
the increase results from--
            (A) an increase in the average pay of the transferred 
        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 transferred 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 the 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 
transferred 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 
transferred 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 transferred 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 5905a(e)(1)(A) of title 5, United States Code, the continued 
coverage of a transferred employee for health benefits under chapter 89 
of such title by reason of the application of 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 transferred employee shall be considered a transferred 
employee.
    (j) Report by GAO.--The Comptroller General of the United States 
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 pilot 
                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 ``transferred 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)(A).
            (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 transferred 
                employees.
            (5) The term ``early deferred retirement age'' means the 
        first age at which a transferred employee would have been 
        eligible for immediate retirement under subsection (a) or (b) 
        of section 8336 of title 5, United States Code, if such 
        transferred 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) Effective Date.--This section shall take effect on August 1, 
1996, and shall apply to covered separations from Federal service on or 
after that date.

SEC. 1122. TROOPS-TO-TEACHERS PROGRAM IMPROVEMENTS APPLIED TO CIVILIAN 
              PERSONNEL.

    (a) Separated Civilian Employees of the Department of Defense.--(1) 
Subsection (a) of section 1598 of title 10, United States Code, is 
amended by striking out ``may establish'' and inserting in lieu thereof 
``shall establish''.
    (2) Subsection (d)(2) of such section is amended by striking out 
``five school years'' in subparagraphs (A) and (B) and inserting in 
lieu thereof ``two school years''.
    (b) 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''.
    (c) Savings Provision.--The amendments made by this section do not 
effect obligations under agreements entered into in accordance with 
section 1598 or 2410j of title 10, United States Code, before the date 
of the enactment of this Act.

      TITLE XII--FEDERAL CHARTER FOR THE FLEET RESERVE ASSOCIATION

SEC. 1201. 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. 1202. 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 in which it is 
incorporated and subject to the laws of such State.

SEC. 1203. 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.
            (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. 1204. SERVICE OF PROCESS.

    With respect to service of process, the association shall comply 
with the laws of the State in which it is incorporated and those States 
in which it carries on its activities in furtherance of its corporate 
purposes.

SEC. 1205. MEMBERSHIP.

    Except as provided in section 1208(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. 1206. BOARD OF DIRECTORS.

    Except as provided in section 1208(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 in which it is 
incorporated.

SEC. 1207. OFFICERS.

    Except as provided in section 1208(g), the positions of officers of 
the association and the election of members to such officers shall be 
as provided in the bylaws and articles of incorporation of the 
association and in conformity with the laws of the State in which it is 
incorporated.

SEC. 1208. 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 dividend.
    (d) 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 in which it is incorporated.
    (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, 
the association may not discriminate on the basis of race, color, 
religion, sex, handicap, age, or national origin.

SEC. 1209. 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. 1210. 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. 1211. 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. 1212. 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 1211. The annual report shall not be printed as a public 
document.

SEC. 1213. RESERVATION OF RIGHT TO AMEND OR REPEAL CHARTER.

    The right to alter, amend, or repeal this title is expressly 
reserved to Congress.

SEC. 1214. TAX-EXEMPT STATUS.

    The association shall maintain its status as an organization exempt 
from taxation as provided in the Internal Revenue Code of 1986.

SEC. 1215. TERMINATION.

    The charter granted in this title shall expire if the association 
fails to comply with any of the provisions of this title.

SEC. 1216. DEFINITION.

    For purposes of this title, the term ``State'' means any of the 
several States, the District of Columbia, the Commonwealth of Puerto 
Rico, the Commonwealth of the Northern Mariana Islands, the United 
States Virgin Islands, Guam, American Samoa, the Republic of the 
Marshall Islands, the Federated States Of Micronesia, the Republic of 
Palau, and any other territory or possession of the United States.
```